Idea failures Technology failures People failures Extension failures Internet failures PR failures Cultural failures

1. CULTURAL ISSUES FACED BY GLOBAL BRANDS
Group members:
Arshad
Ranjit
Ha Phan
Ceylan
Ha Nguyen

2. Introduction
A business cannot simply rely on its current
method of conducting business when it decides to
take its business at international level. Every
country has a set of different variables which can
be new for an offshore company e.g. rules and
regulation, taxation, different currency, different
holiday periods etc. Most important consideration
in this regards is the difference in culture.

3. What are issues facing global branding?
• Idea failures
• Technology failures
• People failures
• Extension failures
• Internet failures
• PR failures
• Cultural failures

4. Why is culture important?
• Culture is a key component in business and has an impact on
the strategic direction of business.
• It influences management, decisions and all business
functions from accounting to production.
• To increase efficiency and competitive position.

5. Cultural difference considerations
• Colours and Symbols
• Consumer Behaviour
• Religion

6. Colours and Symbols
The psychology of color as it relates to
persuasion is one of the most interesting
and most controversial aspect of the
market.

7. Colours and Symbols
• Example of failures:
GAP:
when GAP unveiled its new logo design
in the fall of 2010, it was immediately
assaulted with substantial criticism.
The mistake made by the company was that that the
choice helvetica font and people also quite reacted to
the
sharp of the blue cube jabbing into the curve of the letter
“p”.

8. Tropicana
In january of 2009 Tropicana released a new packaging
design for its orange juice and many consumer loathed
the new design.
People felt that it looked like generic store brand and found
difficult to distinguish the different varieties of Tropicana.

9. The Wisconsin Tourism
Federation
In 2009 the company decided to changed their name to
Tourism Federation of Wisconsin in order to avoid the pesky
acronyms.
As the company started receiving jokes related to the logo of
the company.

10. Kundawara Pharmacy
This the famous japanese pharmacy company .
One can easily understand that what the wrong with the
logo. The logo is like vermond sign at beginning of this
post.

11. Consumer Behaviour
What is consumer behaviour?
•the study of individuals, groups,
or organizations and the
processes -> motives and causes
how people select, secure, use,
and dispose of products,
services, experiences, or ideas
to satisfy their needs and wants.

12. Factor of influence
•
Consumer
behavior
Cultural
Social
Psycholo
gical
Personal

13. Factor of influence
Cultural
Culture
Subculture
Social Class
Social
Reference
Groups
Family
Role and
status
Personal
Age
Occupation
Economic
Situation
Lifestyle
Personality
Psychological
Motivation
Perception
Learning
Beliefs and
Attitudes

14. Failure global branding
• Kellogg’s Cornflakes in Indian
–Indian breakfast: hot
vegetables, paraatha, dosa
(savoury crepe)
• Asahi beer’s ad in Vietnam
–Having beer in the
afternoon
• Tesco failure in China
–Chinese consumers prefer
to shop around and often
carry multiple store cards.

15. Successful global branding
–Coke: tailored the flavor,
packaging, price, and
advertising to match the tastes
in specific markets
•in Spain, Coke has been used as a
mixer with wine;
•in Italy, Coke has been served
with meals in place of wine or
cappuccino;
•in China, the beverage was
served at special government
occasions.

16. Religion
Religion can influence social
behaviour and economic development.
Religious holidays
Vary greatly among countries
Influences employee production
Religious rules
Religion may be present in the law
Restrictions in consumption and advertising
Dogs, horses and cats are pets Sharia law Consumption of beef is forbidden

17. Religion
Companies face challenges in
order to adapt themselves.
Chinese Feng Shui
Harmony with the surrounding environment
Disney
Consulted a Feng Shui master and included
his advices in Hong Kong Disneyland.
Ramadan
Fasting from dawn to sunset during one
month (self-control; solidarity)
Coca-Cola (2008)
TV commercial in which people distributed bottles
with everyone.
Saint Nicholas Day
Exchange of gifts.
Brands take advantage of this season to launch
new products and use advertising.
Heineken
in 1994 World Cup Soccer
Countries’ flags on bottles
Saudi Arabia and Muslims from all over the word
condemned the act, leading to discontinuation.
Hush Puppies
a US-based shoes brand
Lost market share in Malaysia
when consumers found that shoes contained
pigskin.
Nike
and its “Air” logo
Ressembled the Arabic word for Allah
originating complains and suspension of sales and
donation to an Islamic school in Virginia.

18. Religion
Companies must invest in localization
right from the planning stage.
The main strategy is to make research on the territories and find out
consumer habits, values and customs.

19. Solution/Recommendation
How to overcome cultural difference?
1. Learning about the culture:
→ Understand thinking, actions, demand, ect. to build
the marketing strategy and the products.
1. Establish good cross-cultural communication.
→ Elevate the level of trust and respect between the
clients and company.

20. Solution/Recommendation
3. Working within the guidelines of a new market
→ The quality of information are delivered in a familiar
to the market.
→ The quality of relationship with clients also
improves.
4. Hire the employees from different cultural
background and to keep them working together
cooperatively.
→ They should acknowledge all the potential problems
that can occur due to the cultural differences.

21. Conclusion
In Short, Companies expanding or setting
up the business into overseas have to fill
the gap between the organization’s culture
and local culture,
Global companies should attempt
Glocalisation to conduct business according
to both local and global consideration.