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Tutorial: The Cultural-Social Environment

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Steve Raybould
Steve Raybould

Tutorial aid. Considering the international cultural/social environment

Business
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Report I: The international cultural and social environment
International social and cultural environments: •Trends •Affects •Issues •Decisions
Trends:
Trends: Global youth culture
Trends: Global tribes
Trends: Growing global ‘middle class’
Trends: International trading agreements
Trends: Global brands 1. Coca-Cola 2. IBM 3. Microsoft 4. GE 5. Nokia 6. Toyota 7. Intel 8. McDonald’s 9. Disney 10.Google • Research finds that global brands have: – Quality signal – Global myth – Social responsibility
Affects:
Affects: Political barriers, trade boycotts and blockades
Affects: Technology Drivers
Affects: Cultural differences
Issues:
Communications: Global naming strategies Translations and unintended meanings
Products: In the US and UK Kit-Kat is in one flavour. In Japan customers like Kit-Kat in a wide range (now over 80) of often unexpected flavours including: green tea, soy sauce, salt watermelon and ginger ale. In Japan the sound ‘kit kat’ also means good luck / congratulations, making the bar a popular gift
Management Walmart fail in Germany: • Remote management • CEO spoke only English • ‘Hire & Fire’ culture • Failure to consult or listen • Fundamental strategic mistakes – retail style, competition, cust omer preferences
Organisation • Degrees of centralisation • Location and style of decision makers • Family orientated businesses • Expectations of individual initiative, innovation, consultation
Distribution & Buyer Behaviour • Poor brand definition • Application of UK buying behaviour expectations to US • Car shopping, not ‘passing shopping’ • Expect trial tasting, discounts, promot ions • Strong competition in low cost convenience • No local retail / distribution partner Tesco fail in USA (and Korea)
Decisions:
Global Local Mixed
Alternative global marketing strategies COMMUNICATON STRATEGY STANDARDIZED COMMUNICATIONS LOCALIZED COMMUNICATIONS STANDARDIZED PRODUCT Global strategy: Uniform Product/ Uniform Message Mixed Strategy: Uniform Product/ Customized Message LOCALIZED PRODUCT Mixed strategy: Customized Product/ Uniform Message Local Strategy: Customized Product/ Customized Message
Sources: Anon (2011) ‘Tesco’s mistakes in US – Not understanding the American Customer’. Case Studies Inc. Last accessed 18/11/12 at: http://www.casestudyinc.com/tescos- mistakes-in-us-not-understanding-the-american-customer Arndt, a. and Knorr, A. (2003) ‘Why Did Wal-Mart Fail in Germany?’ Institute for World Economics and International Management. University of Bremen. Cummings T.S. (no date) ‘Japan’s Strangest Kit Kat Flavors’ Weird Asia News. Last accessed 18/11/12 at: http://www.weirdasianews.com/2010/03/18/japans-strangest- kit-kat-flavors/ Geoghagan, T. (2011) ‘Why is Tesco Struggling in the US?’ BBC. Last accessed 18/11/12: http://www.bbc.co.uk/news/magazine-13190124 LPRodriguez (2012) ‘Psy Gangnam Style (Official Video)’ You Tube. Last accessed 23/11/12at: http://www.youtube.com/watch?v=mYPvAMrMzwI Schiffman, L.G. and Kanuk L.L., (2010) ‘Customer Behaviour’ 10th ed. Pearson Educational

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Tutorial: The Cultural-Social Environment

  • 1. Report I: The international cultural and social environment
  • 2.
  • 3.
  • 4. International social and cultural environments: •Trends •Affects •Issues •Decisions
  • 10. Trends: Global brands 1. Coca-Cola 2. IBM 3. Microsoft 4. GE 5. Nokia 6. Toyota 7. Intel 8. McDonald’s 9. Disney 10.Google • Research finds that global brands have: – Quality signal – Global myth – Social responsibility
  • 17. Products: In the US and UK Kit-Kat is in one flavour. In Japan customers like Kit-Kat in a wide range (now over 80) of often unexpected flavours including: green tea, soy sauce, salt watermelon and ginger ale. In Japan the sound ‘kit kat’ also means good luck / congratulations, making the bar a popular gift
  • 18. Management Walmart fail in Germany: • Remote management • CEO spoke only English • ‘Hire & Fire’ culture • Failure to consult or listen • Fundamental strategic mistakes – retail style, competition, cust omer preferences
  • 19. Organisation • Degrees of centralisation • Location and style of decision makers • Family orientated businesses • Expectations of individual initiative, innovation, consultation
  • 20. Distribution & Buyer Behaviour • Poor brand definition • Application of UK buying behaviour expectations to US • Car shopping, not ‘passing shopping’ • Expect trial tasting, discounts, promot ions • Strong competition in low cost convenience • No local retail / distribution partner Tesco fail in USA (and Korea)
  • 23. Alternative global marketing strategies COMMUNICATON STRATEGY STANDARDIZED COMMUNICATIONS LOCALIZED COMMUNICATIONS STANDARDIZED PRODUCT Global strategy: Uniform Product/ Uniform Message Mixed Strategy: Uniform Product/ Customized Message LOCALIZED PRODUCT Mixed strategy: Customized Product/ Uniform Message Local Strategy: Customized Product/ Customized Message
  • 24. Sources: Anon (2011) ‘Tesco’s mistakes in US – Not understanding the American Customer’. Case Studies Inc. Last accessed 18/11/12 at: http://www.casestudyinc.com/tescos- mistakes-in-us-not-understanding-the-american-customer Arndt, a. and Knorr, A. (2003) ‘Why Did Wal-Mart Fail in Germany?’ Institute for World Economics and International Management. University of Bremen. Cummings T.S. (no date) ‘Japan’s Strangest Kit Kat Flavors’ Weird Asia News. Last accessed 18/11/12 at: http://www.weirdasianews.com/2010/03/18/japans-strangest- kit-kat-flavors/ Geoghagan, T. (2011) ‘Why is Tesco Struggling in the US?’ BBC. Last accessed 18/11/12: http://www.bbc.co.uk/news/magazine-13190124 LPRodriguez (2012) ‘Psy Gangnam Style (Official Video)’ You Tube. Last accessed 23/11/12at: http://www.youtube.com/watch?v=mYPvAMrMzwI Schiffman, L.G. and Kanuk L.L., (2010) ‘Customer Behaviour’ 10th ed. Pearson Educational