Marketing Across Cultures Katherine Schaefer Diplomatic Academy of London January 14, 2002

Topics What is Cross-Cultural Marketing? Cross-Cultural Marketing Best Practices One Company’s International Success One Culture’s Marketing Success Marketing Blunders

Cross-Cultural Marketing The strategic process of marketing among consumers whose culture differs from that of the marketers own culture in at least one of the fundamental cultural aspects: Language Religion Social Norms and Values Education and the Style of Life People are influenced by their values and beliefs. For example, when it comes to choosing a car(think Lexus or Mercedes or Ford), they may be value any combination of safety, style, comfort, quality, design or aesthetics. They also think about the brand itself, and any connotations or beliefs about it they may have culturally. Marketers can also appeal to the emotional side of the consumer, by connecting the product to a particular holiday, or event that may occur in the specific culture. (Ex. Think of weddings, places of worship) Marketers should also watch for changes in the standards of a society, needs and values change over time.

Best Practices Develop cultural empathy Avoid ethnocentrism Never assume transferability of a concept from one culture to another Get cultural informants involved in the decision-making process Recognize, understand, and respect another’s culture and differences Be culturally neutral and realize that different is not necessarily better or worse. In addition, don’t just look at the differences. It is quite important to look at the similarities in various markets, change the marketing strategy to fit with the particular market, sometimes the product may not be accepted at first, but if the similarities exist, they may eventually. Just because something sells in one country doesn’t mean it is going to sell in another. Take black beans for example. These can be found in plentiful amounts in Latin America, Miami, and in Spain. But there are none to be found in France (or at least in Paris as far as I know…). This is due to the fact that many of the meals prepared by latin americans consist of black beans! Try telling the French to change their recipes to include black beans, I don’t think there would be much demand – culturally, the French did not grow up eating black beans. IN the United States, black beans are more prevalent because of the great influx of Latin Americans and Mexicans. Therefore, american tastes are changing. You could perhaps start a black bean campaign in France, but like tofu in America, the marketers would have to be clever as to how to integrate this new product into the market. Talk to people in the target market, those who know the culture, and who value the same things. Hire people to help with the marketing surveys, and with the advertising campaigns. Because as is usually the case, the culture of the marketers is quite different than that of the target consumers.

The Coca-Cola Company “Think local, act local” Fanta Georgia Coffee Brand Diet Coke with Lemon Coca Cola is a huge case study in itself, therefore I am only going to choose 3 different products of Coca-Cola, and talk about a few of their marketing strategies. Fanta was acquried by the Coca-Cola Company in 1960 an attempt to expand their European market. There are over 100 Fanta flavors worldwide, 70% of sales represented by Fanta Orange. Fanta Limon, one of the rarer flavors (per my experience) is one of the flavors of Fanta. Fanta sells best in Brasil, Spain, Germany, Japan, Italy, and Argentina. It is associated with happiness, friends, and fun. Coca Cola is hoping that Americans will take to this drink as well. (personally, I when visiting Spain, I usually bring back with me 12 cans of Fanta limon, because I can not find it either in France or the US!) Georgia Ready to drink coffee is the best-selling non-carbonated drink in Japan. Georgia is marketed as a drink for hard working people. It can be served hot and cold, and after conducting some research, they found that the Japanese wanted variety. Hence, Georgia coffee can be found in flavors such as Mocha, Kilamanjaro, and Emerald Mountain Blend. Because they responded to the needs and wants of the market, sales have increased dramatically. Diet Coke with Lemon is a new phenomenon, having just found out about it myself. After witnessing the ritual of many Americans - putting a lemon with their diet Coke, Coca Cola decided to put the two together in one can. Last summer it was rolled out to the Midwestern part of the US and had great success. Apparently Pepsi has hit the shelves with their version Pepsi Twist, a little earlier than Coca Cola did. But there is a great loyalty to soda brands in the US, so Coca Cola shouldn’t lose out.

Döner Kebap Case Study What is Döner Kebap? Minced Beef or Veal inside a Pita Lettuce, vegetables, sauce Brief History of Döner Kebap Introduced by Turks who were guest workers in Germany - 1961 High unemployment led to self-employment – 1970’s Marketed as exotic Turkish delight to German consumers at the onset Doner Kebap is minced beef or veal served in a pita with various toppings, such as lettuce, vegetables, and either a garlic yogurt sauce or a hot ketchup dressing. The pita is not standard to doner kebaps in Turkey, in fact they are normally served only during the month of Ramadan. Because of the popularity of this type of doner kebap, the pita began to be produced in large quantities. For example, pide bakers in Germany now produce special ramazan pidesi only during Ramadan (this goes to show how the Doner Kebap led to a decontextualization of a pide in Germany. Today. Around 87% of Turkish business are food or catering related, many serving doners.

Döner Kebap Success Timing: Post WWII Germany German “taste” More filling and healthier than competitors Aesthetically attractive The Post WWII Germans wanted to experience international and exotic food. Before 1991, there were many varieties of doner till it was standardized in 1991. Healthier than competitors: Brockwurst or Curry Wurst (doner kebap is a meal, the others are not!) Beef and veal are leaner than the pork found in the others.

Marketing Change After 1989 Image Change McKebap Keb’up Dönerburger Mister Kebap New Döner Varieties Price Differentiation Target Market Shift Before 1989 there was basically one variety of doner, standardized in 1991. But after the fall of the Berlin Wall, more varieties began to spring up. Adding eggplant, french fries or feta cheese. Also Chicken Doner, Zucchini Doner or Turkey Doner just to name a few. Want to change their image, McDonalds, to German Turks, represents the highest level of Western technology, good business, something advanced, clean, and efficient. Want to attract consumers who are not attracted by exoticness. Put it on a bun to market to the upper classes more. But this is what made the doner kebap popular, the fact the pitas were more filling.

Marketing Blunders “Ke-kou-ke-la” Clairol “Mist Stick” “Finger lickin’ good” “Nothing sucks like an Electrolux” “Come alive with the Pepsi Generation” 1. Female Horse Stuffed with Wax

References Costa, J. A. & Bamossy, G.A. (1995). Marketing in a Multicultural World: Ethnicity, Nationalism, and Cultural Identity. New Delhi: Sage Publications. Guang Tian, R. Marketing in the 21st Century:Cross-cultural Issues. (http://www.studyoverseas.com/america/usaed/crosscultural.htm) Kauffman, S. (Ed.). (1997). Advertising Blunders. Omen: Oregon Mensa. Remarks by Doug Daft, Chairman, Board of Directors & CEO of The Coca-Cola Company. Importance of Diversity. King and Spalding Fall Executive Dinner (2001). Koonan, S. (2001). Marketing Milieu: Culture in Marketing, Part 1. (http://www.marketingmilieu.com/articlep1004.html)