Biljana Lukic_Triglav International Business Akademy_Project Assignment_ Understanding cultural paradoxes specifics in global branding University of Ljubljana - Faculty of Economics Triglav International Business Academy Academy Programme Director: Prof. Janez Prašnikar, Ph.D. In-house mentors: Katja Čampa, Tatjana Legat-Lokar Outsourced mentors: Suzana Nikiforova, M.Sc. Prof. Janez Prašnikar, Ph.D, Year of the Programme: 2010/2011 Team members (name and surname): KENAN AŠĆERIĆ, BILJANA LUKIĆ, URŠKA ZUPANČIČ and NINA ZORMAN

1. UNDERSTANDING CCUULLTTUURRAALL
PPAARRAADDOOXXEESS//SSPPEECCIIFFIICCSS IINN GGLLOOBBAALL BBRRAANNDDIINNGG
Triglav International Business Academy

2. MMaaiinn oobbjjeeccttiivveess
To find out how culture influences consumer behavior
and advertising.
To find out cultural similarities and differences between
former YU countries where Triglav Group is currently
present.
To present recommendations based on resarch results
useful for process of making brand strategy for Triglav
Group.
Triglav International Business Academy

3. VVaalluueess aanndd ccuullttuurree
National culture is a shared system of meanings that
dictates what people pay attention to, how they act,
and what they value.
Triglav International Business Academy

4. Values influence consumer behavior, brand images,
and the way advertising is made and perceived across
countries.
Triglav International Business Academy

5. Classification of culture is
necessary to understand
differences in cross-cultural
consumer behavior and to
differentiate marketing and
advertising strategies
across countries.
Triglav International Business Academy

6. VVaalluueess aanndd ccuullttuurree
Most frequently used model for understanding
differences across markets is Hofstede`s model of
five dimensions:
 Power distance (PDI)
 Individualism/Collectivism (IDV-COL)
 Masculinity/Femininity (MAS-FEM)
 Uncertainty Avoidance (UAI)
 Long/Short-Term Orientation (LTO)
Triglav International Business Academy

7. CCuullttuurree aanndd gglloobbaall bbrraannddiinngg
 In order to be relevant to consumers, brand must
operate much like a culture which means that it has
to align with consumers most deeply held beliefs and
sense of identity.
When brand enters different cultures it has to adopt
the brand elements to local tastes and preference of
customers.
Triglav International Business Academy

8. CCuullttuurree aanndd ccoonnssuummeerr bbeehhaavviioorr
What people buy and why they buy certain product is
influenced by their culture values.
Each product category has its own cultural relationship
which means that culture also influences consumer
behavior when they purchase insurance products.
Triglav International Business Academy

9. CCuullttuurree aanndd aaddvveerrttiissiinngg
Advertising is shaped by the culture in which it is
practiced, so logically, it reflects the values of that
culture.
When the values of consumers are congruent with
the values reflected in advertising the link to liking
the ad, will be more effective.
Triglav International Business Academy

10. RReesseeaarrcchh
The research was conducted in Bosnia and
Herzegovina, Croatia, Macedonia, Montenegro, Serbia
and Slovenia.
Questionnaire contained from three parts:
 Measuring three dimensions IDV/COL, UAI and LTO/STO,
 Measuring preferences regarding different IMT channels and
 Measuring attitude to different social responsible actions of
companies.
Sample:
 Participants aged 25 – 45,
 With not less than high education,
 Employees from Triglav Group and their family and friends.
Triglav International Business Academy

11. RReesseeaarrcchh
Number of respondents:
Slovenia ñ 200
BiH , Croatia ñ 50
Triglav International Business Academy
Macedonia, Serbia, Montenegro á 50

12. FFiinnddiinnggss
Even though all these countries were a part of
Yugoslavia, values and cultural characteristics
differed among them.
Cultural dimensions in all six countries still have
similarities.
We can divide cultural characteristics for all six
countries into two groups:
 First group: Croatia, Macedonia and Slovenia, which are more
individual, short term oriented and have weaker uncertainty
avoidance;
 Second group: Bosnia and Herzegovina, Montenegro and
Serbia which are more collectivistic, more long term oriented
and have stronger uncertainty avoidance.
Triglav International Business Academy

13. CCoonncclluussiioonn
Marketing strategy should be focused on emphasizing
Triglav International Business Academy
good quality of services and long
tradition of the company.
Advertising should be based on:
 Commercials with humorous and unique content.
 TV as a primar marketing channel.
 Famous sportiests as promoters.
 Music festivals as a place of advertising.
Donations are most recognized actions of Corporate
Social Responsibility.
 Insurance company should primarily finance preventive
measures.

14. TTHHAANNKK YYOOUU !!
Triglav International Business Academy
QQ && AA