How to Avoid Business Blunders Abroad David A. Ricks

Introduction Locating a fast-food restaurant in high-traffic areas (Munich, Germany). Ask the right questions (Land in Sicily) Location! (pineapple plant in Mexico).

Picking the Package Adapting packaging to the local environment White symbolizes death in Japan Green represents danger or disease in Malasia Numbers in Japan may be evil (even numbers of products pictured on a label) Baby’s picture on the baby food jar in Africa Suggests test market, brief survey, interviews or discussions may have avoided these blunders.

Changing the Product American brands sell well if the product is adapted (Tastes). Product consistency/texture (Jello) Campbell’s soup in Great Britain (not condensed) Dishwashers for example Different Electricity requirements (110 vs. 220 v) Water pressure differences Accommodate different sized and shaped dishes & utensils                                               

The Language Barrier Company or Product name Coca-Cola in China - “Bite the Wax Tadpole” GM’s Nova in Puerto Rico - “it doesn’t go” US oil co. in Latin America – “jackass oil” Shampoo “Evitol” in Brazil “Dandruff Contraceptive” Chocolates in the USA by German firm – “Zit!” Airline in Australia – “EMU” “gift” in German is “poison”

Respecting Nationalism Spanish Manufacturer flying a US flag Product comparisons are ok, comparing governments is not! Hiring from within host country!

Problems with Promotions Promotion without coordination of production and delivery McDonnell Douglas showed Turbaned men in an aircraft brochure for a promotion in India – The men were Pakistani The Marlboro Man in Hong Kong – people could not associate with horseback riding The slogan “With XXX your already there” promoting air travel (on a cemetery wall). The word “Deer” in Brazilian is the name for homosexual.

Promotions (cont’d.) “you can use no finer napkin at your dinner table” (in the UK napkin means Diaper) The advertising budget can not simply be set as a percentage of sales Media types available differ Small subsidiaries may not produce much revenue

Observing Local Customs Norms British tea breaks Local holidays Public display of affection unacceptable in Thailand BiNoca Talc Commercial in India – Apparently nude woman? Display of the sole of the foot or shoe is insulting in some countries

Local Customs (Cont’d.) Women playing golf with men and wearing shorts in Quebec. Pepsodent promoted toothpaste that “enhance white teeth” in southeast Asia, however, some local people chew betel nut to achieve the social prestige of darkly stained teeth. Promoting eyeglasses in Thailand using animals? Religious symbols used in advertising? Refrigerator co using a picture of a large Ham in the ice box to promote its product in the Middle East

Be sure it translates “Come alive with Pepsi” in German “Come alive out of the grave with Pepsi,” in Asia “Bring back your dead relatives with Pepsi” Hunt Wesson marketed Beans in Tomato sauce in Quebec as “Gros Jos,” which translated means “Big Breasts” “Body by Fisher” in Flemmish “Corpse by Fisher” “Billion” contains 9 zeros in the US and 12 zeros in Europe.

What can be done? Back translation Market research Representatives or employees who are versed in local customs (born there!) Keep it short Avoid slang Avoid humor Cite examples Repeat important points