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consumerbtopic14n - brands compete on a global basis(i.e...

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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
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Unformatted text preview: 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....
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