Tutorial aid. Considering the international cultural/social environment

1. Report I: The international
cultural and social environment

4. International social and cultural
environments:
•Trends
•Affects
•Issues
•Decisions

5. Trends:

6. Trends: Global youth
culture

7. Trends:
Global tribes

8. Trends: Growing global
‘middle class’

9. Trends: International trading
agreements

10. Trends: Global brands
1. Coca-Cola
2. IBM
3. Microsoft
4. GE
5. Nokia
6. Toyota
7. Intel
8. McDonald’s
9. Disney
10.Google
• Research finds that
global brands have:
– Quality signal
– Global myth
– Social responsibility

11. Affects:

12. Affects: Political
barriers, trade
boycotts and
blockades

13. Affects: Technology Drivers

14. Affects: Cultural differences

15. Issues:

16. Communications:
Global naming strategies
Translations and unintended
meanings

17. Products:
In the US and UK Kit-Kat is in one flavour.
In Japan customers like Kit-Kat in a wide
range (now over 80) of often unexpected
flavours including: green tea, soy sauce, salt
watermelon and ginger ale.
In Japan the sound ‘kit kat’ also means good
luck / congratulations, making the bar a
popular gift

18. Management
Walmart fail in Germany:
• Remote management
• CEO spoke only English
• ‘Hire & Fire’ culture
• Failure to consult or
listen
• Fundamental strategic
mistakes – retail
style, competition, cust
omer preferences

19. Organisation
• Degrees of
centralisation
• Location and style of
decision makers
• Family orientated
businesses
• Expectations of
individual initiative,
innovation, consultation

20. Distribution & Buyer Behaviour
• Poor brand definition
• Application of UK buying
behaviour expectations to
US
• Car shopping, not
‘passing shopping’
• Expect trial
tasting, discounts, promot
ions
• Strong competition in low
cost convenience
• No local retail /
distribution partner
Tesco fail in USA
(and Korea)

21. Decisions:

22. Global
Local
Mixed

23. Alternative global marketing strategies
COMMUNICATON
STRATEGY
STANDARDIZED
COMMUNICATIONS
LOCALIZED
COMMUNICATIONS
STANDARDIZED
PRODUCT
Global strategy:
Uniform Product/ Uniform
Message
Mixed Strategy:
Uniform Product/
Customized Message
LOCALIZED
PRODUCT
Mixed strategy:
Customized Product/
Uniform Message
Local Strategy:
Customized Product/
Customized Message

24. Sources:
Anon (2011) ‘Tesco’s mistakes in US – Not understanding the American Customer’.
Case Studies Inc. Last accessed 18/11/12 at: http://www.casestudyinc.com/tescos-
mistakes-in-us-not-understanding-the-american-customer
Arndt, a. and Knorr, A. (2003) ‘Why Did Wal-Mart Fail in Germany?’ Institute for World
Economics and International Management. University of Bremen.
Cummings T.S. (no date) ‘Japan’s Strangest Kit Kat Flavors’ Weird Asia News. Last
accessed 18/11/12 at: http://www.weirdasianews.com/2010/03/18/japans-strangest-
kit-kat-flavors/
Geoghagan, T. (2011) ‘Why is Tesco Struggling in the US?’ BBC. Last accessed 18/11/12:
http://www.bbc.co.uk/news/magazine-13190124
LPRodriguez (2012) ‘Psy Gangnam Style (Official Video)’ You Tube. Last accessed
23/11/12at: http://www.youtube.com/watch?v=mYPvAMrMzwI
Schiffman, L.G. and Kanuk L.L., (2010) ‘Customer Behaviour’ 10th ed. Pearson
Educational