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

Mirna Babović 68569

Bjanka Badrov 68526

Jovana Bakula 68544

Ena Fejzagić 68553

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.

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.

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).

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

SOME ADVANTAGES OF GLOBALIZATIONSOME ADVANTAGES OF GLOBALIZATION

Increased free trade between nationsIncreased 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

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

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.

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, MourningIndia: Unhappiness, DeathJapan: Mourning

POPULAR VS. TRADITIONAL

CULTURE

China: Royalty, Nourishing India: Commerce Japan: Courage Saudi Arabia: Strength, Reliability

China: Celebration, Good, Luck, Happiness, Long Life, SummoningIndia: PurityJapan: Life

India (Hindu): Sacred (the Color Saffron)

Japan: Courage, Love

China: ImmortalityIndia (Hindu): KrishnaIran: Heaven, Immortality, SpiritualityIsrael: Holiness

East India: FeminineJapan: Popular with Both GendersKorea: Trust

China: Color for Young Boys, Trust, High QualityThailand: Bad Luck, Unhappiness, EvilTibet: Evil

India: Mourning

China: NobilityIndia: ReincarnationThailand: Mourning

China: Exorcism, Infidelity (Green Hats), Not a Good Color for Packaging India: IslamJapan: Life, High-techIndonesia: Forbidden

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 CHINAChina follows civil law system, which is based on native customs and practices with Soviet and German influence.

JAPANJapan 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.

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.

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?

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.

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.

WHEN DECIDING TO ADAPT OR NOT, HOFSTEDE’S CULTURAL DIMENSIONS ARE VERY IMPORTANT:

Individualism vs. CollectivismMasculinity vs. Femininity

Power DistanceUncertainty Avoidance

Long term vs. Short term

WHEN DECIDING TO ADAPT OR NOT, HOFSTEDE’S CULTURAL DIMENSIONS ARE VERY IMPORTANT:

Individualism vs. CollectivismMasculinity vs. Femininity

Power DistanceUncertainty Avoidance

Long term vs. Short term

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.

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.

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?

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.

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.

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.

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.

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?

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.

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.

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?

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’.

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.

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’).

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?

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.

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.

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.

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?

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.

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.

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.

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 another That is yet another stereotype that most of stereotype that most of

Westerns like you, John, Westerns like you, John, have. have.

Globalization does not mean Globalization does not mean “the World according to “the World according to America”.America”. Not everything Not everything

that has the prefix that 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.

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:

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 food Don'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...

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.

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

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...

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.

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?

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.

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“.

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.

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 skin skin 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.

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.

Another beautiful Asian woman who was a part of the international crew of L’Oreal’s celebrities is Aishwarya Rai.Aishwarya Rai.

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”.

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!