Sample essay topic, essay writing: Marketing 2 - 749 words
American companies take many things into considerationwhen marketing products in other countries. The article"Tough Cookies" by Oliver Libaw, and the article "Not sofast" by Jean-Marc Lehu discuss marketing American Productsin other countries. "Tough Cookies" discussed Nabisco andtheir success of selling Oreos and Chips Ahoy in Mexico. "Not so fast" discussed the triumph of the store CrazyGeorge, which is like American Rent-A-Center, in the UnitedKingdom and their failure in France. North American FreeTrade Agreement (NAFTA), which was established in 1994, madeit possible for Nabisco to sell their products in Mexico.
NAFTA produced almost free trade between the United Statesand Mexico. The European Union (EU) did basically the samething as NAFTA in Europe. EU produced many marketingadvantages because it made it possible not to have to marketitems by one nation at a time. NAFTA and EU make marketingproducts in other countries easier. Nabisco took a big chance by marketing their cookies inMexico. Nabisco succeeded in establishing their productseven though Mexico was in a recession
The company realizedthat there was an open opportunity for their products. InMexico there was not a cookie exactly like theirs. Oreo andChips Ahoy are the best selling cookies in the United Statesso they thought that the products might do the same inMexico. They did not have an expansive advertisingcampaign. Instead they relied on in-store promotions.
Onreason for their success is that they have a strongdistribution and name recognition. Many people did notthink that the product would sell, even though they havegreat presence. There are two main events that might havehelped Nabisco. One event is that snack foods are cheaper, so instead of eating more expensive, healthy foods, peopleswitched to a substitute. Another event is that the peoplewho were buying the cookies are the wealthier individuals, which price would not effect them. There is research that proved to Nabisco that theywould be successful in Mexico.
There are generalizationsthat have been discovered for many cultures, each culturerespond to products and marketing differently. Hispanicculture as a whole are very name brand oriented, theyespecially American products. They are willing to pay alittle extra for quality that goes along with a name of aproduct. This would make sense for the success of Nabisco. Their cookies are slightly more expensive then other cookiesbut they were still successful in the Mexican market.
Nabisco also did not spend much on advertising, they reliedon word of mouth to get their name around. The buyingpattern of the Hispanic culture suggests that they listenmore to their family and friends rather than advertising. The strategies that Nabisco used for Mexico would not workfor European countries. Every country in Europe hasdifferent needs and wants as a culture. Each country shouldbe treated individually. In the article "Not so fast", the owners of the storeCrazy George treated the European countries as onehomogeneous group. They learned that the thoughts of theindividuals living in France differed from those in theUnited Kingdom.
The store is directed towards individualswho are in the lower income bracket, and need some helpowning hoe items. The United Kingdom loved the idea ofbeing able to rent furniture until they had paid enough toown the items. In France, however, it is a different story. The French do not like the idea of being reminded that theydo not have much money. The store Crazy George was notsuccessful in France for that reason. Having to come inonce a week so that one can pay for the weekly amount thatis due on their rented furniture is a put down in the Frenchculture.
There are barriers that exist between the Europeancountries that make it difficult to market to them. Thereis also a risk in treating the countries differently. Bytreating each country differently, the product that is beingmarketed changes. There are some products that can be usedin every European country and if the countries are treateddifferently than some individuals may not be veryappreciative. It might be an insult to the people if theythink that they are seen as different than the othercountries.
It is extremely difficult to market productsglobaly. I would advize American companies who want to go globalto research the places where they want to establiush amarket. The income levels, and exchange rate are importantpieces of information to know before going global. Theculture of the countries must be understood. They way thenatives buy products should be investigated. Much effortshould be put into the investigation of a country beforesetting up a market in a foreign country.
The Nabiscocompany obviously did their research and the Crazy Georgestore apparently did not spend the time needed in learningabout the French.
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