Business must tailor competitive efforts to fit foreign market Customers react differently in different markets Research is the most important activity
1. When Parker Pen marketed a ballpoint pen in Mexico, its ads were supposed to have read, "It won't leak in your pocket and embarrass you." Instead, the company thought that the word "embarazar" (to impregnate) meant to embarrass, so the ad read: "It won't leak in your pocket and make you pregnant 2. In Spain, when Coors Brewing Company put its slogan, "Turn it loose" into Spanish; it was read as "Suffer from diarrhea". 3. When Braniff International Airways translated a slogan touting its upholstery, "Fly in leather", it came out in Spanish as "Fly naked". 4. When Pepsi started marketing its products in China a few years back, they translated their slogan, "Pepsi Brings You Back to Life" pretty literally. The slogan in Chinese really meant, "Pepsi Brings Your Ancestors Back from the Grave." 5. Chicken magnate Frank Perdue's line, "It takes a tough man to make a tender chicken," sounds much more interesting in Spanish: "It takes a sexually stimulated man to make a chicken affectionate."
6. Scandinavian vacuum manufacturer Electrolux used the following in an American campaign: "Nothing sucks like an Electrolux". 7. A hair products company, Clairol, introduced the "Mist Stick", a curling iron, into Germany only to find out that mist is slang for manure. Not too many people had use for the manure stick. 8. The American slogan for Salem cigarettes, "Salem-Feeling Free", was translated into the Japanese market as "When smoking Salem, you will feel so refreshed that your mind seems to be free and empty." 9. PepsiCola lost it dominant market share to Coke in South East Asia when Pepsi changed the color of its vending machines and coolers from deep "Regal" blue to light "Ice" blue as Light blue is associated with death and mourning in SE Asia. 10. We can't forget Chevrolet's attempt to launch the Nova -- Spanish translation, "Doesn't Go" -- in Mexico (turns out this one appears to be an urban legend and cannot be verified). Many sources on the internet allege this is untrue.
Regulation of coupons and contests Media censorship ◦ More or less restrictive Cultural differences ◦ Portrayal of women ◦ Religion (Liquor/Muslim countries)
Contact distributors within specific country to sell products to local retailers Set up own foreign office, hire local experts Joint ventures: partnerships with a foreign company ◦ Cdn/foreign firm combine resources to make or sell specific product in another country
Are there local products with greater quality goods? Is it possible to produce these products with same quality in these countries?
Convince customer product has more benefits than competitors If no competitors, still a challenge. Must convince them to change their other preferences. ◦ France: Wine/Beer?
Must know tariffs on the product Tariffs: taxes placed on goods imported into a country to protect local industries from foreign competition Landed Cost: takes into account shipping costs, currency exchange, tariffs ◦ Can product be sold at a competitive cost?
Legal design requirements and standards Change size of packaging ◦ Translating package label, instructions Hire a competent local business to translate
Pick a country and a company, and discuss how that company markets or could market their product differently according to the specific needs of that country. Use the computers to research Briefly present your findings to the class