Marketing
MarketingAmerican 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 in the Mexican market.
Nabisco also did not spend much on advertising, they relied
on word of mouth to get their name around. The buying
pattern of the Hispanic culture suggests that they listen
more to their family and friends rather than advertising.
The strategies that Nabisco used for Mexico would not work
for European countries. Every country in Europe has
different needs and wants as a culture. Each country should
be treated individually.
In the article �Not so fast�, the owners of the store
Crazy George treated the European countries as one
homogeneous group. They learned that the thoughts of the
individuals living in France differed from those in the
United Kingdom. The store is directed towards individuals
who are in the lower income bracket, and need some help
owning hoe items. The United Kingdom loved the idea of
being able to rent furniture until they had paid enough to
own the items. In France, however, it is a different story.
The French do not like the idea of being reminded that they
do not have much money. The store Crazy George was not
successful in France for that reason. Having to come in
once a week so that one can pay for the weekly amount that
is due on their rented furniture is a put down in the French
culture. There are barriers that exist between the European
countries that make it difficult to market to them. There
is also a risk in treating the countries differently. By
treating each country differently, the product that is being
marketed changes. There are some products that can be used
in every European country and if the countries are treated
differently than some individuals may not be very
appreciative. It might be an insult to the people if they
think that they are seen as different than the other
countries. It is extremely difficult to market products
globaly.
I would advize American companies who want to go global
to research the places where they want to establiush a
market. The income levels, and exchange rate are important
pieces of information to know before going global. The
culture of the countries must be understood. They way the
natives buy products should be investigated. Much effort
should be put into the investigation of a country before
setting up a market in a foreign country. The Nabisco
company obviously did their research and the Crazy George
store apparently did not spend the time needed in learning
about the French.