Companies often struggle with getting to know their potential markets and Asia is a big and broad market.
Here is a detailed overview about all the things companies should consider if they choose to enter Asian market.
DGR_Digital Advertising Strategies for a Cookieless World_Presentation.pdf
International Marketing - Doing Business in Asia
1. DOING BUSINESS IN ASIA?
How Do Companies Do It?
DOING BUSINESS IN ASIA?
How Do Companies Do It?
Mirna Babović 68569
Bjanka Badrov 68526
Jovana Bakula 68544
Ena Fejzagić 68553
2. This is John and he is the executive director of
„XOXO“ company.
But what is bothering him?
His company wants to enter the
Asian market!
How can we help him?How can we help him?
LET'S START WITH HIS FIRST CONCERN.
3. John: Why do we have to
go global at all? We are
doing just fine right now
with our current market.
John: Why do we have to
go global at all? We are
doing just fine right now
with our current market.
Globalization is a process of interaction and integration among the people,
companies, and governments of different nations, a process driven by
international trade and investment and aided by information technology.
Globalization is a process of interaction and integration among the people,
companies, and governments of different nations, a process driven by
international trade and investment and aided by information technology.
It is not something contemporary, some authors argue that there was a form of
globalization since the rise of trade links between Sumer and the Indus Valley
Civilization in the third millennium B.C.
It is not something contemporary, some authors argue that there was a form of
globalization since the rise of trade links between Sumer and the Indus Valley
Civilization in the third millennium B.C.
In late 2000s, much of the industrialized world entered into a deep recession,
so some analysts say the world is going through a period of deglobalization
after years of increasing economic integration.
In late 2000s, much of the industrialized world entered into a deep recession,
so some analysts say the world is going through a period of deglobalization
after years of increasing economic integration.
4.
5. Trade is increasingly global in scope today mainly because of technology -
improved transportation and communication opportunities make trade more
practical. Consumers and businesses now have access to the very best
products from many different countries, which also increases the competition
among countries.
Trade is increasingly global in scope today mainly because of technology -
improved transportation and communication opportunities make trade more
practical. Consumers and businesses now have access to the very best
products from many different countries, which also increases the competition
among countries.
In part to accommodate these realities, countries in the last several decades
have taken increasing steps to promote global trade through agreements
such as the General Treaty on Trade and Tariffs, and trade organizations
such as the World Trade Organization (WTO), North American Free Trade
Agreement (NAFTA), and the European Union (EU).
In part to accommodate these realities, countries in the last several decades
have taken increasing steps to promote global trade through agreements
such as the General Treaty on Trade and Tariffs, and trade organizations
such as the World Trade Organization (WTO), North American Free Trade
Agreement (NAFTA), and the European Union (EU).
6. SOME DISADVANTAGES OF GLOBALIZATIONSOME DISADVANTAGES OF GLOBALIZATION
•Increased flow of skilled
and non-skilled jobs from
developed to developing
nations as corporations
seek out the cheapest
labor
•Increased flow of skilled
and non-skilled jobs from
developed to developing
nations as corporations
seek out the cheapest
labor
•Greater chance of
reactions for globalization
being violent in an attempt
to preserve cultural
heritage
•Greater chance of
reactions for globalization
being violent in an attempt
to preserve cultural
heritage
•International bodies like
the WTO infringe on
national and individual
sovereignty
•International bodies like
the WTO infringe on
national and individual
sovereignty
•Greater risk of diseases
being transported
unintentionally
•Greater risk of diseases
being transported
unintentionally
•Increase in the chances
of civil war within
developing countries
•Increase in the chances
of civil war within
developing countries
Decrease in
environmental integrity
Decrease in
environmental integrity
•Spread of a materialistic
lifestyle and attitude that
sees consumption as the
path to prosperity
•Spread of a materialistic
lifestyle and attitude that
sees consumption as the
path to prosperity
7. SOME ADVANTAGES OF GLOBALIZATIONSOME ADVANTAGES OF GLOBALIZATION
•Increased free trade
between nations
•Increased free trade
between nations
•Increased liquidity of
capital allowing investors
in developed nations to
invest in developing
nations
•Increased liquidity of
capital allowing investors
in developed nations to
invest in developing
nations
•Greater ease and speed
of transportation for goods
and people
•Greater ease and speed
of transportation for goods
and people
•Increased flow of
communications allows
vital information to be
shared between
individuals and
corporations around the
world
•Increased flow of
communications allows
vital information to be
shared between
individuals and
corporations around the
world
•Reduction of cultural
barriers increases the
global village effect
•Reduction of cultural
barriers increases the
global village effect
•Increases in
environmental protection
in developed nations
•Increases in
environmental protection
in developed nations
•Abolition of various
double taxes, tariffs, and
capital controls
•Abolition of various
double taxes, tariffs, and
capital controls
8. John: OK. So, you
convinced me, we should
go global. But, what should
I pay attention to? Which
cultural differences are
important?
John: OK. So, you
convinced me, we should
go global. But, what should
I pay attention to? Which
cultural differences are
important?
CULTURAL DIMENSIONS and DIFFERENCES that are important for marketing:CULTURAL DIMENSIONS and DIFFERENCES that are important for marketing:
DIRECTNESS
VS.
INDIRECTNESS
HUMOR
GENDER
ROLES
POPULAR VS.
TRADITIONAL
CULTURE
INFORMATION
CONTENT VS.
FLUFF
SYMBOLS
9. UNDERSTANDING CULTURAL
DIFFERENCES IS IMPORTANT IF YOU
WANT TO ACHIEVE SUCCESS IN ANY
MARKET.
WHEN DEVELOPING MARKETING
STRATEGIES IT IS IMPORTANT TO
CONSIDER NATIONAL, LOCAL, POLITICAL
AND BUSINESS CULTURES.
10. John: I've heard that even
colors have different
meanings in some cultures.
John: I've heard that even
colors have different
meanings in some cultures.
Sure they do! Take a look!Sure they do! Take a look!
China: Death,
Mourning
India: Unhappiness,
Death
Japan: Mourning
POPULAR VS.
TRADITIONAL
CULTURE
China: Royalty, Nourishing
India:
Commerce
Japan: Courage
Saudi Arabia:
Strength, Reliability
China: Celebration, Good,
Luck, Happiness, Long
Life, Summoning
India: Purity
Japan: Life
India (Hindu): Sacred (the
Color Saffron)
Japan: Courage, Love
11. China: Immortality
India (Hindu): Krishna
Iran: Heaven, Immortality,
Spirituality
Israel: Holiness
East India: Feminine
Japan: Popular with Both
Genders
Korea: Trust
China: Color for Young
Boys, Trust, High Quality
Thailand: Bad Luck,
Unhappiness, Evil
Tibet: Evil
India: Mourning
China: Nobility
India: Reincarnation
Thailand: Mourning
China: Exorcism, Infidelity
(Green Hats), Not a Good
Color for Packaging
India: Islam
Japan: Life, High-tech
Indonesia: Forbidden
12. John: And what about
the legal constraints?
John: And what about
the legal constraints?
Excellent question, John! When laws of two countries differ, it may be possible
in a contract to specify in advance which laws will apply. These are the legal
systems in India, China, Japan, Hong Kong and Saudi Arabia:
Excellent question, John! When laws of two countries differ, it may be possible
in a contract to specify in advance which laws will apply. These are the legal
systems in India, China, Japan, Hong Kong and Saudi Arabia:
INDIA
India follows English common law, but the state
of Goa and the union territory of Daman and
Diu follow a Civil Law based on Portuguese civil
law.
PEOPLE’S REPUBLIC OF CHINA
China follows civil law system, which is based on
native customs and practices with Soviet and
German influence.
JAPAN
Japan follows civil law system, modeled after
European (primarily German) system, and also
the Japanese civil code of 1895.
HONG KONG
Hong Kong is different, since its system is
principally based on English common law.
SAUDI ARABIA Saudi Arabia follows Islamic law.
13. COMPARATIVE ADVERTISING IS MORE HEAVILY REGULATED IN
ASIA THAN IN U.S. OR EUROPE.
AN INDIAN COURT ORDERED LEVER TO CEASE CLAIMING THAT
ITS NEW PEPSODENT TOOTHPASTE WAS 102% BETTER THAN
THE LEADING BRAND. COLGATE THE LEADING BRAND WAS
NEVER MENTIONED IN THE ADVERTISEMENT ALTHOUGH A
MODEL WAS SHOWN MOUTHING THE WORD COLGATE AND THE
IMAGE WAS ACCOMPANIED BY A TING SOUND RECOGNIZED IN
ALL COLGATE ADS AS THE RING OF CONFIDENCE.
ADVERTISING ON TELEVISION IS STRICTLY CONTROLLED IN
MANY COUNTRIES.
IN MANY ASIAN COUNTRIES, EXTERNAL PRESSURE OR EVEN
DIRECT INTERVENTION FROM FOREIGN COUNTRIES TRIGGERED
THE INTRODUCTION OF COMPETITION POLICY. IN EAST ASIA
COMPETITION POLICY IS SOMETIMES IN CONFLICT WITH OTHER
POLICY OBJECTIVES.
14. John: I suppose that my
products must be
changed, if I enter the
Asian market. Do I need
to change everything?
John: I suppose that my
products must be
changed, if I enter the
Asian market. Do I need
to change everything?
15. John, your main dilemma is between standardization
and adaptation of products.
Standardization is a good choice if you want to save costs and
maintain the image of the company throughout different markets, but
adaptation - offering a product to targeted foreign consumers altered
to specific tastes, preferences and needs, has advantages, too.
There are some mandatory adaptations (those imposed by
government regulations, products standards, etc) and there are
optional modifications which are the company’s “wish” to adapt.
Standardization is a good choice if you want to save costs and
maintain the image of the company throughout different markets, but
adaptation - offering a product to targeted foreign consumers altered
to specific tastes, preferences and needs, has advantages, too.
There are some mandatory adaptations (those imposed by
government regulations, products standards, etc) and there are
optional modifications which are the company’s “wish” to adapt.
16. There are three layers of product attributes that can be more or
less standardized:
1. PHYSICAL ATTRIBUTES
2. SERVICE ATTRIBUTES
3. SYMBOLIC ATTRIBUTES
The closer a product is to the body (food, clothing,
cosmetics...), the more likely it is to be adapted.
The closer a product is to the body (food, clothing,
cosmetics...), the more likely it is to be adapted.
17. WHEN DECIDING TO ADAPT OR NOT,
HOFSTEDE’S CULTURAL DIMENSIONS ARE
VERY IMPORTANT:
Individualism vs. Collectivism
Masculinity vs. Femininity
Power Distance
Uncertainty Avoidance
Long term vs. Short term
WHEN DECIDING TO ADAPT OR NOT,
HOFSTEDE’S CULTURAL DIMENSIONS ARE
VERY IMPORTANT:
Individualism vs. Collectivism
Masculinity vs. Femininity
Power Distance
Uncertainty Avoidance
Long term vs. Short term
18. FOR EXAMPLE:
China has Long-term Orientation (LTO) the highest-ranking factor (118), which is
also true for all Asian cultures. Chinese rank lower than any other Asian country in
the Individualism (IDV) ranking, at 20 compared to an average of 24. China has a
significantly higher Power Distance ranking of 80 compared to the other Far East
Asian countries' average of 60, and the world average of 55.
India has Power Distance (PDI) as the highest Hofstede Dimension for the culture,
with a ranking of 77. India's Long Term Orientation (LTO) Dimension rank is 61 and
Masculinity as the third highest ranking Hofstede Dimension at 56. India's lowest
ranking Dimension is Uncertainty Avoidance (UAI) at 40.
19. WHEN IT COMES TO SERVICES:
The extent to which certain of service attributes will be adapted differs
according to the type of good being serviced.
The extent to which certain of service attributes will be adapted differs
according to the type of good being serviced.
An important aspect of service is waiting to be served - this dimension is
more or less respected from culture to culture.
An important aspect of service is waiting to be served - this dimension is
more or less respected from culture to culture.
There is consistency in the dimensions important to service quality and the
relationship between service quality and satisfaction.
There is consistency in the dimensions important to service quality and the
relationship between service quality and satisfaction.
Interpretation of symbolic messages may differ significantly between the
marketer’s culture and the consumer’s culture, in most cases the symbolic
meaning of the product is more important than the functional utilities
associated with the product.
Interpretation of symbolic messages may differ significantly between the
marketer’s culture and the consumer’s culture, in most cases the symbolic
meaning of the product is more important than the functional utilities
associated with the product.
20. John: Are there some
concrete geographical
characteristics I need to
adapt my products to?
John: Are there some
concrete geographical
characteristics I need to
adapt my products to?
21. YES, THERE ARE! You should consider the geographic diversity;
climate and topography, for example. Also, altitude, humidity, and
temperature extremes are climatic features that affect the uses and
functions of products and equipment. Products that perform well in
temperate zones may deteriorate rapidly or require special cooling or
lubrication to function adequately in tropical zones.
For example, a Taiwanese company sent a shipment of drinking
glasses to a buyer in the Middle East. The glasses were packed in
wooden crates with hay used as dunnage to prevent breakage. The
glasses arrived in shards.
WHY?
When the crates moved to the warmer, less humid climate of the
Middle East, the moisture content of the hay dropped significantly
and shriveled to a point that it offered no protection.
22. There are other geographical
factors influencing business
activities, such as different
seasons, mountains, oceans,
jungles, floods, pollution, etc.
For instance, China is now
the world’s top polluter in
almost all respects.
India’s population was once
stable, but with improved
health conditions leading to
greater longevity and lower
infant mortality, its population
will exceed that of China by
2050.
Adjusting to geographical
differences is very relevant
factor in introducing
products/service to global
market, as much as
creating proper marketing
campaign that would be
succesfully accepted in
targeting geographical
region.
23. John: So, when
I adapt my
products, I need
to adapt my
marketing
strategy as well,
right?
John: So, when
I adapt my
products, I need
to adapt my
marketing
strategy as well,
right?
OF COURSE!
The process of going internationally and globally
could not be succesful without an adequate usage of
marketing. The task of international marketing is
much more complicated compared to domestic
market activities.
The uniqueness of foreign marketing comes from
the range of unfamiliar problems and the variety
of strategies necessary to cope with different
levels of uncertainty encountered in foreign
markets.
Even though marketing principles and concepts
are universally applicable, the environment within
which the marketer must implement plans can
change dramatically from country to country or
region to region.
24. Possible obstacles to succeed in
international marketing are SRC
(Self-reliance criterion), i.e. using
one’s culture, values, experiences
as a basis for decisions, and
ETHNOCENTRISM, a notion that
one’s own culture or company
knows best.
To be globally aware, John, you must have
objectivity, tolerance of cultural differences
and knowledge of cultures, history, world
market potential, and global economic, social
and political trends.
25. There are three types of strategic
approaches to marketing internationally:
1. Domestic Market Extension Orientation
2. Multidomestic Market Orientation
3. Global Marketing Orientation
John: And what about
advertising? Should I
get some celebrity
endorsers?
John: And what about
advertising? Should I
get some celebrity
endorsers?
26. Well, the major problem facing
INTERNATIONAL ADVERTISERS
is designing the best messages for
each market served.
We advise you to have these
stages of international advertising:
perform marketing research,
specify the goals of the
communication, develop the most
effective message(s) for the market
segments selected,
select effective media,
compose and secure a budget,
execute the campaign
and evaluate the campaign relative
to the goals specified.
Well, the major problem facing
INTERNATIONAL ADVERTISERS
is designing the best messages for
each market served.
We advise you to have these
stages of international advertising:
perform marketing research,
specify the goals of the
communication, develop the most
effective message(s) for the market
segments selected,
select effective media,
compose and secure a budget,
execute the campaign
and evaluate the campaign relative
to the goals specified.
27. For a long time, companies have used
well-known public figures, movie stars
and sports personalities to endorse their
brands, as it is widely believed that
these celebrities help to build or
reposition brands by extending their
personality, character and popularity to
the brands they endorse.
When advertising in Asian market, you
should decide whether to use domestic,
global or celebrities that are popular in
new markets. We can not give you a
universal advice; the decision depends
on the product/service type, the value it
has for customers, the complexity of the
product offering, the age of target
market and many other factors.
For a long time, companies have used
well-known public figures, movie stars
and sports personalities to endorse their
brands, as it is widely believed that
these celebrities help to build or
reposition brands by extending their
personality, character and popularity to
the brands they endorse.
When advertising in Asian market, you
should decide whether to use domestic,
global or celebrities that are popular in
new markets. We can not give you a
universal advice; the decision depends
on the product/service type, the value it
has for customers, the complexity of the
product offering, the age of target
market and many other factors.
28.
29. John: OK, there
is one more
thing that
bothers me –
the language. Is
it going to be a
barrier?
John: OK, there
is one more
thing that
bothers me –
the language. Is
it going to be a
barrier?
30. TO BE HONEST, IT IS ONE OF THE MOST DIFFICULT BARRIERS.
BUT, IT IS NOT IMPOSSIBLE TO OVERCOME IT.
IKEA deals with this issue in a very practical way; the instructions for
assembling its furniture rely on pictures alone. So, there are no confusions
and misunderstandings.
Even Coca-Cola has an adaptation of
its name in China!
It is transliterated as ‘ke kou ke le’ in
Mandarin and ‘ho hau ho lohk’ in
Cantonese, which conveys the
meaning of ‘tasty and
enjoyable/happy’.
In the literal translation, it would mean
‘Bite the Wax Tadpole’, or ‘Female
Horse Stuffed with Wax’.
31. Branding in East Asia gets a whole new dimension. You
must come up with a brand name that has a positive
connotation, which is a combination of numerous
factors, like sound, meaning, content, lucky numbers,
etc.
Pepsi-Cola - in Chinese: ‘hundred happy things’
Mercedes-Benz becomes ‘Benchi’ - ‘striving forward
fast’
Advertising can be very tricky in AsiaAdvertising can be very tricky in Asia: Pepsi slogan
‘Come Alive with the Pepsi Generation’ in Chinese
becomes ‘Pepsi Brings Your Ancestors Back from
the Grave’.
What is ‘normal’ for you,
John, does not necessarily
have to be ‘normal’ for
everyone else too.
32. English language has had
influence on Japanese marketing,
thourgh English loanwords in
Japanese promotional texts and
labels.
Mai, English ‘my’, is used
extensively in compounds
such as mai homu (my
home), because the
Japanese equivalent would
sound too selfish and stress
the private over the
collective.
Also, as a result of the English influence in India, Hinglish was
born (blending of “Hindi” and “English”). Many Hindi speakers are
not even aware that they are combining the two languages. Over
the years, Hinglish has been effectively used in Indian advertising
in advertising slogans, like Pepsi’s ‘Yeh Dil Maange More!’ in 1998,
‘Yehi hai right choice, Baby’ (‘This is the Right Choice, Baby’).
33. AND BE CAREFUL, JOHN!
In non-verbal communication, it is advised not to use
gestures and hands in your communication, since most
Asians find it unpolite and offenssive. Generally, in Asia it is
considered desirable not to show emotions. So, there are
no general rules of communication that can be applied in
Asian countries. The rules for achieving ‘good’
communication are largely cultural and local.
John: Wow! So many things
that I need to consider! I
guess making a TV ad for my
products with a sexy Asian
girl, like Lucy Liu, wearing
nothing but a swimming suit is
out of the question?
John: Wow! So many things
that I need to consider! I
guess making a TV ad for my
products with a sexy Asian
girl, like Lucy Liu, wearing
nothing but a swimming suit is
out of the question?
34. YOU MIGHT WANT
TO CHANGE THAT
IDEA, JOHN.
You see, although
Asia is developing
rapidly, it is still a
conservative society.
Sexual ads are not well
received by
consumers. Also,
advertising rules vary
by country, so you
would not be allowed to
have that ad in all
countries.
YOU MIGHT WANT
TO CHANGE THAT
IDEA, JOHN.
You see, although
Asia is developing
rapidly, it is still a
conservative society.
Sexual ads are not well
received by
consumers. Also,
advertising rules vary
by country, so you
would not be allowed to
have that ad in all
countries.
In China, only Hong Kong does not restrict creativity. The rest of China does not
approve sexual or erotic ads, since they are contrary to traditional Chinese customs.
The situation is similar in Thailand, where there are strict censorship rules. Kissing &
romantic display of affection not allowed in ads.
The Philippines and Japan are rare examples in Asia that allow usage of sexuality in
ads.
In China, only Hong Kong does not restrict creativity. The rest of China does not
approve sexual or erotic ads, since they are contrary to traditional Chinese customs.
The situation is similar in Thailand, where there are strict censorship rules. Kissing &
romantic display of affection not allowed in ads.
The Philippines and Japan are rare examples in Asia that allow usage of sexuality in
ads.
35. Sometimes images that are
normal and have nothing erotic
in them for you can still be
provocative in Asia.
One European shampoo-maker
had to pull from the Malaysia
market a commercial showing a
hairdresser washing a woman's
hair. The problem was that the
hairdresser was male.
A brand that was built on
sensuality takes a lot of risk
when entering Muslim, or
conservative cultures.
36. So, generally, Asia is not open
for sexual and erotic elements
in ads.
But, the level of
conservativeness differs by
country.
If you want to have a universal
commercial, or at least a unique
commercial for the region of
Southeast Asia, it is much better
and safer to exclude sexuality.
37. John: Things are
much clearer to me
now. Understanding
Asians is not so
difficult; basically,
they are all the
same, aren't they?
John: Things are
much clearer to me
now. Understanding
Asians is not so
difficult; basically,
they are all the
same, aren't they?
38. BIG MISTAKE, JOHN!
A stereotype most Westerns may have is that Asians are all alike.
On the contrary, Asia Pacific can be observed as a mosaic of cultures
with their own specificities.
But, there are some cultural similarities between different East Asian
countries that can be used in entering this market.
Companies such as Unilever, Asian Paints and HSBC have managed to
recognize some of the similarities between countries and used it in the
development of their brands which address segments with similar needs.
It is essential for you to understand the similarities and save costs of
creating different tailored strategies for all countries, but always keep in
mind that each Asian culture is different, each country and each market
have some specific characteristics.
39. John: Yes, I can understand
that. I was simply making a
conclusion that Asians are
nothing like us, Westerns. I
see them all in this exotic,
oriental and traditional world.
They are all into geishas,
samurais, tigers and all that,
so maybe that is what I will use
in my ad.
John: Yes, I can understand
that. I was simply making a
conclusion that Asians are
nothing like us, Westerns. I
see them all in this exotic,
oriental and traditional world.
They are all into geishas,
samurais, tigers and all that,
so maybe that is what I will use
in my ad.
ANOTHER STEREOTYPE RIGHT THERE, JOHN, BE CAREFUL!
Even more dangerous is having the opinion that Asians belong to a separate
exotic world and that they have nothing at all in common with Westerns, or any
segment of people, and have nothing urban in their culture. You must have a
modern approach to this market, which includes abandoning the idea or the
purely oriental traditional Asia of the past.
40. Using geishas, samurais, jonques, pagodas and lush
jungles in advertising campaigns will result in a failure. An
ad of Tiger Beer, the most famous Asian beer, which
includes images of exotic Asia, would not appeal to most
Asians. The success would be a lot bigger in the UK, for
example. Or, Shanghai Tang watch with Mao’s picture on it
is relatively popular in Hong Kong, among the middle
class, but the majority of Chinese find it absurd to wear this
kind of a watch.
41. John: So, you are
suggesting to use
the good-old
American things in
the ad? I mean, the
international things?
John: So, you are
suggesting to use
the good-old
American things in
the ad? I mean, the
international things?
That is yet anotherThat is yet another
stereotype that most ofstereotype that most of
Westerns like you, John,Westerns like you, John,
have.have.
Globalization does not meanGlobalization does not mean
“the World according to“the World according to
America”.America”. Not everythingNot everything
that has the prefixthat has the prefix
“international” comes from“international” comes from
America.America.
An example is the growing popularity of Bollywood. Motorola had a
commercial in India, in which a very famous scene from a Bollywood song
“Chamma Chamma” from the movie “China Gate” was recreated. The same
original song from the movie was noticed several years before and was used
for the soundtrack of the famous Hollywood movie “Moulin Rouge”. So, the
remixed song was used by Motorola in the ad. This was a great hit in India.
So, the effects of globalization in this example were proven with the famous
saying: what goes around comes around.
Globalization is not about transferring the Western values and brands to
East, it is about the worldwide connection between cultures and people.
An example is the growing popularity of Bollywood. Motorola had a
commercial in India, in which a very famous scene from a Bollywood song
“Chamma Chamma” from the movie “China Gate” was recreated. The same
original song from the movie was noticed several years before and was used
for the soundtrack of the famous Hollywood movie “Moulin Rouge”. So, the
remixed song was used by Motorola in the ad. This was a great hit in India.
So, the effects of globalization in this example were proven with the famous
saying: what goes around comes around.
Globalization is not about transferring the Western values and brands to
East, it is about the worldwide connection between cultures and people.
42. We do not have all the answers. The psychology of an Asian consumer is still
unexplored to a great extent. Marketers still do not know very well how
marketing techniques and theories can be applied to Asian markets.
This is Maslow's hierarchy of needs in Asia:
43. John: O my God! Doing
business in Asia is not easy
at all! I am starting to think
that there are no companies
that are successful in this
market...
John: O my God! Doing
business in Asia is not easy
at all! I am starting to think
that there are no companies
that are successful in this
market...
John: Hmmm...
McDonald's?
John: Hmmm...
McDonald's?
Don't be silly, John! Of course there are! Can you guess which fast foodDon't be silly, John! Of course there are! Can you guess which fast food
company is doing great in Asia, just like in the rest of the world?company is doing great in Asia, just like in the rest of the world?
EXACTLY! Let's find out how...EXACTLY! Let's find out how...
44. McDonald's was founded in 1940 by brothers Dick and Mac McDonald.
Key person in further development and spreading all over America was Ray Kroc.
McDonald’s first went international in 1967, when they opened their first
restaurants in Canada and Puerto Rico.
Today, McDonald’s has its restaurant in 119119 countries of the world.
45. CHINACHINA TURKEYTURKEYINDIAINDIA
-first store in 1990 in
Shenzhen
-since Chinese love red,
they used that color for the
design of the counter, chairs
and desks
-adapted to Chinese taste
by adding more chicken
meals; great results
-24/7 availability and take
put menus and delivery
drivers
-a joint-venture company
managed by two Indians;
over 160 restaurants across
the country
-menu especially for India
with vegetarian selections
-first country where they
dropped the use of beaf and
pork meat (cows are
considered sacred animals)
-Maharaja Mac replaced Big
Mac, also introduced
Chicken Patty, Veg Salad
Sandwich, McMasala &
McImli sauces, ...
-Kofteburger, McTurco
Meat and McTurco
Chicken
-traditional Turkish drink,
Ayran
-halal meat
46. And what goes with McDonald's menu, John? Which drink comes to your
mind?
John: Coca-Cola! They
must be successful in
Asia, too, right?
John: Coca-Cola! They
must be successful in
Asia, too, right?
Yes, they are! And here is why...
47. WORLD'S LARGEST BEVERAGE COMPANY, REFRESHING CONSUMERS
WITH MORE THAN 500 SPARKLING AND STILL BRANDS
14 billion dollar brands including Diet Coke®, Fanta®, Sprite®, Coca-Cola Zero®,
vitaminwater®, Powerade®, Minute Maid®, Simply® and Georgia®.
Globally, they are the No. 1 provider of sparkling beverages.
48. To maximize brand love and brand value, they
believe in the importance and enduring impact of
powerful storytelling that engages consumers
with their brands and company.
Their “HAPPINESS MACHINE” viral video has
been viewed more than 3 million times and
received a coveted Gold Clio award.
Building on music success, they worked with the
band Train to launch “Shake Up Happiness” for
2010 holiday campaign, which they activated in
more than 90 countries.
John: Amazing! But, what
about services? Do you have
an example of a company
from the service sector that is
successful in Asia?
John: Amazing! But, what
about services? Do you have
an example of a company
from the service sector that is
successful in Asia?
49. Have you ever heard of HSBC? Here is their story...
Asian financial markets,
within developing
economies, are still
generally less mature and
less regulated than
markets in Europe and
America.
Established in March 1865
in Hong Kong. global
banking and financial
services company
headquartered in London.
As of 2011 it is the world's
second-largest banking
and financial services
group and second-largest
public company according
to a composite measure
by Forbes magazine.
50. Thanks to their international approach, their global influence and global
adjustments, HSBC has managed to accomplish their aim to be one of
the strongest banks in the world.
HSBC's advantage in doing business all over the world are local
employees that are familiar with how things operate in particular
countries, their national economies, regulations, environments,..
In 2002, HSBC launched worldwide advertising campaign „Cultural
Collisions“ that defined bank's distinctive personality as 'the world's
local bank'.
In 2005, HSBC launched new global multi-media advertising campaign
that focused on the brand idea 'the bank that values different points of
view'. „Different Points of View“.
51. John: You have given me a lot to think
about! There is just one more thing that
I'm interested in. Tell me something more
about Asian women. They are beautiful!
John: You have given me a lot to think
about! There is just one more thing that
I'm interested in. Tell me something more
about Asian women. They are beautiful!
Do you know which company takes most care of that beauty? Come
on, try to guess! Because they are worth it...
John: ?John: ?
Yes! And you are about to find out how L'Oreal does it.
52. Contrary to the Western opinion, Asian culture, especially Chinese, has a
great beauty heritage, and has created a lot of impacts to Western beauty
culture. In the last decade the Asian market matured from being just an
opportunity of a new market to a very profitable and promising market.
Products with best prospects are anti-aginganti-aging, skin lighteningskin lightening and skinskin
moisturizing cosmeticsmoisturizing cosmetics and toiletriestoiletries.
L’Oreal group is one of the world’s largest cosmetics and beauty company.
With almost a century of expertise in cosmetics, it has 23 global brands and
distribution of products in 130 countries.
Its brands include L’Oreal ParisL’Oreal Paris and MaybellineMaybelline, which are sold at the
mass-market, LancomeLancome as a representative at the luxury market and
RedkenRedken and SoftSheen/CarsonSoftSheen/Carson for retail and salon.
53.
54. While ad agencies in China
are not so keen on hiring
Chinese celebrities for
marketing campaigns, L’Oreal
is working with Gong LiGong Li, a
Chinese actress who had a
Hollywood success, for a very
long time now.
55. Another beautiful
Asian woman who
was a part of the
international crew
of L’Oreal’s
celebrities is
Aishwarya Rai.Aishwarya Rai.
56. Bollywood beauty and former Miss of the World had huge success in
the world, but L’Oreal is in tune with new trends. Although known as
the most beautiful woman in the world in many formal and informal
contests, Aishwarya was replaced with Freida Pinto, the star of
Oscar winning movie “Slumdog Millionaire”.
Bollywood beauty and former Miss of the World had huge success in
the world, but L’Oreal is in tune with new trends. Although known as
the most beautiful woman in the world in many formal and informal
contests, Aishwarya was replaced with Freida Pinto, the star of
Oscar winning movie “Slumdog Millionaire”.
57. John: Thank you so
much! Now I have
all the right
information that I
need in order to
enter the Asian
market!
John: Thank you so
much! Now I have
all the right
information that I
need in order to
enter the Asian
market!
GOOD LUCK,GOOD LUCK,
JOHN!JOHN!