Topic 14
Global Considerations
When manufacturers enter a new ethnic market, they must understand this market as
traditions and values vary per culture. For example, bringing wine to a Moslem
household would be insulting as this religious subculture does not drink alcoholic
beverages. Moreover, if you enter a Moslem household you would hand your gift to the
husband as opposed to the wife in other households.
Not only does gift giving vary by culture, but so do holiday rituals. Moreover, research
has identified 2 kinds of consumption: Sacred which is a far more significant and
powerful form of consumption vs. regular or profane consumption. With sacred, there
are the following characteristics: a. ritual – rituals have artifacts, often products (i.e.,
when a person retires, they may receive a watch, an artifact, where the watch has far
more meaning than simply the value of the watch; wedding gowns, Valentine candy
Advertising used in other countries must consider local values and customs. Global
brands compete on a global basis (i.e., Coca-Cola). To do so, the company must be
conscious of local attitudes and cultural differences. Some amazing mistakes have been
made by global companies – amazing because these companies spend enormous amount
of money to enter international markets and yet…
Gerber began selling baby food in Africa, and was using the same packaging that they
used in the USA – that of a baby on the label. It was not until later that Gerber’s
discovered that in Africa, companies often placed pictures on the label of what was inside
since many African consumers can not read.
GM brought the Chevy Nova into South America and did not realize that “no va” in
Spanish means “won’t go. When the car was not selling, the company changed the name
to Caribe in its Latin markets.
Schweppes Tonic Water was translated into Italy as Schweppes Toilet Water
There are many such examples of big industry mistakes in entering foreign markets.