C HAPTER 2 E XTERNAL INFLUENCE : C ROSS C ULTURAL VARIATION Iffat Tarannum 1

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W HEN IN R OME, DO AS THE R OMANS 3

W HAT DO WE HAVE FOR IFTAR ? 4

CLASSIFICATION Global citizen Global dreamers Anti-globals (how can I attract anti globals?) Global agnostics 5

W HAT IS CULTURE ? Culture is the complex whole that includes knowledge, belief, art, law, moral, customs and any other capabilities and habits acquired by humans as members of society It is a comprehensive concept Need  want Is it dynamic or static? How Bangladeshi culture is changing? Difference between rural and urban culture in Bangladesh? 6

E LEMENTS OF CULTURE Values – other/self/environment (pg:45) Norms Sanctions 7

I NDIVIDUAL / COLLECTIVE Individual difference appreciated? Do we reward individual effort? Emphasize on individual effort? Eating alone is OK? 8

Y OUTH / AGE Top level management local v MNC Is family focused on meeting the needs of children or adults? Are we ready to accept younger people as role model? Who made purchase decision for children? Advice from young people or older generation? Kids demand or request? Surf excel ad and hp ad 9

E XTENDED / LIMITED FAMILY Rupchada AD Ghore Fera ad or Shopno jabe bari amar ad How strong is our relation to family? Do we seek parental advice for purchasing? 10

M ASCULINE / FEMININE Rank, prestige and important social roles are for man or women? Can women take decision in family purchase? 11

C OMPETITIVE / COOPERATIVE Do we admire an winner? Can we boastfully say that “ I am the best?” Three idiots dialogue 12

D IVERSITY / UNIFORMITY Do we encourage thinking out of the box? Do we like different type of thoughts/ belief? 13

E NVIRONMENT ORIENTED V ALUES : CLEANLINESS 14

P ERFORMANCE / STATUS Are reward, opportunities, prestige based on performance or status? Power distance High power- expert opinion and approval 15

T RADITION / CHANGE Are existing behaviors better than new behavior? Show famina ad 16

R ISK TAKING / SECURITY Will your parents like that you would like to be an entrepreneur? 17

NATURE Will Bangladeshi pay extra for organic products? 18

P ROBLEM SOLVING / FATALISTIC Do we solve problem or believe ‘what will be, will be’? What will we do if a major earth quake happen? 19

S ELF ORIENTED VALUES Active/passive 20

S ENSUAL GRATIFICATION / ABSTINENCE What will you do as a marketing manager of Axe, Victoria's Secret,etc? polaroid camera for arabs 21

M ATERIAL / NON MATERIAL Accumulation of wealth is good or bad? Does wealth bring more status than family ties, knowledge? Instrumental materialism Terminal materialism 22

H ARD WORK / LEISURE Working hard or hardly working Does our mothers ask us to work hard or take rest? Hongkong hours/week France hours/week 23

P OSTPONED / IMMEDIATE GRATIFICATION 24

R ELIGIOUS / SECULAR Why the movie PK raised controversy in India? Islami bank (article) 25

R ECAP Individual/collect ive Youth/age Extended/limited family Masculine/femini ne Competitive/colla borative Diversity/unifor mity Cleanliness Performance/stat us Tradition/change Risk taking/security Problem solving/fatalistic Nature Active/passive Sensual gratification/abst inence Material/non material Hard work/leisure Postponed gratification/im mediate gratification Religious/secular 26

N ONVERBAL COMMUNICATION FACTOR Time Space Symbols Relationships Agreement Thing etiquette 27

N ONVERBAL COMMUNICATION Problem in Translation Kellogg Bran buds  burned farmer in Swedish American airlines FLY in leather  fly naked Colgate’s Cue toothpaste. Cue means buttock in French Nova means does not go in Spanish 28

T IME Monochronic v polychronic Why American Fast-food is popular in India/Bangladesh/Latin America? 29

SPACE 30

S YMBOLS 31

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N ONVERBAL COMMUNICATION White- death in far east and purity in US Purple- death in Latin America Blue- feminine in Holland, Masculine in Sweden and US White lily- death in England Owl- wisdom in US 7- unlucky in Ghana, Kenya 33

T HINGS desk clock Cutlery- in Russia, Japan Sandal/ Shoes 34

R ELATIONSHIP AND A GREEMENT Which is more important? 35

C ROSS C ULTURAL M ARKETING S TRATEGY Homogeneous or heterogeneous What needs it provides? Example: Tang Affordability? PESTEL Analysis Communication 36

According to the us standards, Brazil should represent a major market opportunity for cereals and other breakfast foods, Brazil has a population of an approximately 165 million. Further age distribution favors cereal consumption. – 48% of the population is under 20 years of age. In examining the market Kellogg company noticed one additional positive feature- there was no direct competition. Unfortunately, the absence of competition was due to the fact that Brazilians do not eat American style breakfast. Thus, the marketing task facing Kellogg and its ad agency, J Walter Thomson, was to change the nature of breakfast in brazil. Novellas, soap operas, are very popular and influential in brazil. Therefore, Kellogg began advertising on the novellas. The first campaign showed a boy eating the cereal out of the package. While demonstrating the good taste of the product, it also positioned it as a snack, rather than as a part of breakfast meal. The campaign was soon withdrawn. An analysis of the Brazilian culture revealed a very high value placed on the family with the male dominant authority. The next campaign focused on the family breakfast scenes with the father pouring the cereal into bowls and adding, milk. The second campaign was more successful. cereal sales increased and Kellogg has a 99.5% market share. However, annual ready to eat cereal consumption remains below 1 ounce per capita. Kellogg is used to these challenges,It took 20 years to develop a sizable market in Mexico and six years for France and Japan. Kellog is not also tackling the potentially huge Indian market, where they launched Bashmoti flakes along with traditional corn flakes. John Bryant, chairman & CEO, Kellogg Company, said: "In the last 5-6 years, we invested about $100 million in India, which gives the potential size of opportunity here." Bryant said the cereal category in India is at an inflection point with consumers looking for healthier and convenient alternatives. Bryant, who also interacted with consumers here — and learnt how their aspirations were largely pivoted around their children — said breakfast was the hardest part to change a habit. "Once you break into the habit, you have a wonderful opportunity to drive consumption." 37