Marketing 2
Marketing 2American companies take many things into consideration
when marketing products in other countries. The article
�Tough Cookies� by Oliver Libaw, and the article �Not so
fast� by Jean-Marc Lehu discuss marketing American Products
in other countries. �Tough Cookies� discussed Nabisco and
their success of selling Oreos and Chips Ahoy in Mexico.
�Not so fast� discussed the triumph of the store Crazy
George, which is like American Rent-A-Center, in the United
Kingdom and their failure in France. North American Free
Trade Agreement (NAFTA), which was established in 1994, made
it possible for Nabisco to sell their products in Mexico.
NAFTA produced almost free trade between the United States
and Mexico. The European Union (EU) did basically the same
thing as NAFTA in Europe. EU produced many marketing
advantages because it made it possible not to have to market
items by one nation at a time. NAFTA and EU make marketing
products in other countries easier.
Nabisco took a big chance by marketing their cookies in
Mexico. Nabisco succeeded in establishing their products
even though Mexico was in a recession. The company realized
that there was an open opportunity for their products. In
Mexico there was not a cookie exactly like theirs. Oreo and
Chips Ahoy are the best selling cookies in the United States
so they thought that the products might do the same in
Mexico. They did not have an expansive advertising
campaign. Instead they relied on in-store promotions. On
reason for their success is that they have a strong
distribution and name recognition. Many people did not
think that the product would sell, even though they have
great presence. There are two main events that might have
helped Nabisco. One event is that snack foods are cheaper,
so instead of eating more expensive, healthy foods, people
switched to a substitute. Another event is that the people
who were buying the cookies are the wealthier individuals,
which price would not effect them.
There is research that proved to Nabisco that they
would be successful in Mexico. There are generalizations
that have been discovered for many cultures, each culture
respond to products and marketing differently. Hispanic
culture as a whole are very name brand oriented, they
especially American products. They are willing to pay a
little extra for quality that goes along with a name of a
product. This would make sense for the success of Nabisco.
Their cookies are slightly more expensive then other cookies
but they were still successful...
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