ASHISHNAVIN

SHRUTI

CULTURE :Affects everything we doImpacts every aspect of societyInfluences international advertising strategyImportant environmental factor

CULTURAL VALUES :Governing ideas and guiding principlesImportant variables in advertising research

Crucial in understanding different cultural values

Critical for understanding cross-cultural marketing process

Study of cross-cultural advertising has become a subject of increasing importance because of several important developments:Economic-interdependence due to international

tradeRevitalization of Global MarketDebate about globalization“Cultural Imperialism”

“THINK GLOBALLY, ACT LOCALLY”

READING STRATEGY

DECODING CULTURAL CUES

VIEWER AND TARGET GROUP STATUS: Distinctive Viewers Distinctive Target Market

STATUS AND POWER: Power, Status and Norms Power and Cue Decoding

STIGMA

1) McDonald’s

McDonald’s Strange Menu Around the World

So you think you know the McDonald’s menu like the back of your hand? Think again.

From McDonald’s international, here are some menu items you have probably never tried before:

•No big Macs because Hindu people don’t eat beef

•They have Maharaja Mac, which is a Big Mac made of Lamb or chicken meat

•There is also a vegetarian burger, Mc Aloo Tikki

JAPAN

COSTA RICA

CHILE

HONG KONG

Hula burger

Arch Deluxe

Fried Roast Beef Sandwiches

McPizza

The Dinner Menu

Chicken Fajitas

Salad Shakers

Mc Africa

McLean Deluxe

2) Kellogg's Corn Flakes

Overview:

Kellogg was the wholly owned Indian subsidiary of the Kellogg company based in Battle Creek, Michigan in the United States.

Founded in 1906,had manufacturing facilities in 19 countries and marketed its products in more than 160 countries.

In the 1990’s there was the desire by Kellogg’s to expand.

Stagnating sales in the U.S strengthened this need.

Set up its 30th manufacturing facility in India with a total investment of $30million.

Launched in September, 1994, Kellogg’s initial offerings in India included corn-flakes, wheat-flakes and Basmati rice flakes.

Despite offering good quality products and being supported by the technical, managerial and financial resources of its parent, Kellogg's products failed in the Indian market. Kellogg’s knew it will be difficult to get Indian customers to accept its products hence it relied heavily on the quality of its crispy flakes. Indians liked to boil their milk and consume it warm or lukewarm, they also like to add sugar to their milk. The rice and wheat versions did not do well because sugar could not easily dissolve in cold milk which made it not sweet enough for the Indians. Some consumers called the rice flakes, rice corn flakes.

Analysts believe that the major reason for Kellogg’s failure in the Indian market was the fact that the taste of its products did not suit Indian breakfast habits.

In most third world countries pricing is believed to play a dominant role in the demand for any product but Kellogg did not share this position and this affected the demand for its products. At an average cost of Rs. 21 per 100 gm, Kellogg products were clearly priced way above the product of its main competitor, Mohun Corn-flakes (Rs. 16.50 for 100 gm). Another small-time brand, Champion was selling at prices almost half that of Kellogg’s.

Acknowledging the relative failure of its brands in India, Kellogg’s has come up with a new strategy to establish the company’s brand equity in the market. If it can’t sell cereal, it’s going to try and sell biscuits.

The company has been looking at alternate product categories to counter poor off take for its breakfast cereal brands in the Indian market, say sources.

Meanwhile, the Kellogg main stay – breakfast cereals – has seen frenzied marketing activity from the company’s end.

Do your homework. Why did Kellogg’s cereals have a tough ride in India? ‘It was just clumsy cultural homework,’ says Titoo Ahluwalia, chairman of market research company ORG MARG in Bombay.

Don’t underestimate local competitors. Although Indian brands were worried they would struggle against a new wave of foreign competition following the market opening of 1991, they were wrong.

‘MNCs must not start with the assumption that India is a barren field,’ said C K Prahalad, business professor at the University of Michigan, in a Business Week article. ‘The trick is not to be too big.’

Remember that square pegs don’t fit into round holes. When Kellogg’s first launched Corn Flakes in India it was essentially launching a Western product attempting to appeal to Indian tastes.

Globalization may be an increasing trend, but regional identities, customs and tastes are as distinct as ever. It may be easy for brand managers of global brands to view the world as homogenous, where consumer demands are all the same, but the reality is rather different.

Don’t try and make consumers strangers to their culture. ‘The rules are very clear,’ says Wahid Berenjian, the managing director for US Pizza (which has successfully launched a range of pizzas with Indian toppings) in an article for the Hindu newspaper, Business Line. ‘You can alienate me a bit from my culture, but you cannot make me a stranger to my culture. The society is much stronger than any company or product.’ Brands who want to succeed in India and other culturally distinct markets need to remember this.

Mercedes-BenzLufthansaCoca-ColaWhirlpoolMTVDomino’s PizzaCitibank

Language – one of many cultural barriers.

Infamous errors made by MNCs when translating brands or slogans abroad.

Potential pitfalls of cross-culture communication.

Humorous cross-cultural advertising gaffes !