Marketing beyond & across borders
As a young kid growing up in the early 2000s in India, one of my most prevalent memories is watching my favourite shows and cartoons on cable TV. The ads, usually taking up some time every 10-15 minutes, seemed to be the biggest nuisance of all. But some of them managed to leave an impression. The Cadbury (Mondelez International brand) advertisements were always heartwarming and relatable, perfectly targeting sentiments that fit with the average middle-class Indian emotions and situations.
It is only now, as a student of marketing and business, that I understand what a feat it was to capture audiences’ attention in a limited time span. What makes it even more interesting is the fact that these advertisements were always so in line with Indian mentality and ideology that it was a surprise to young me that the brand did not actually originate from India.
And this is the wonder of marketing across borders. It is a complex and challenging process, which involves taking a product or service into foreign markets, whereby it may encounter different cultures, languages, and economic conditions. If done correctly, it can lead to massive success, but if misapplied, it can be a costly failure. No matter their own origin, the brands need to resonate with the audience they are meant for.
One example of successful marketing across borders that everyone would be familiar with is McDonald's. Despite being an American company, McDonald's has a significant presence around the globe, with over 38,000 locations in more than 100 countries. They have adapted their menu to local tastes and cultural preferences, such as offering a McAloo Tikki burger in India or McBaguettes in France. Nestlé also provides many success stories of localisation across the globe. The core strategy adopted here is to customise products and marketing strategy to adapt to the target market.
In contrast, a brand that strongly uses a standardised identity regardless of the market it caters to is Apple. ‘An iPhone is an iPhone is an iPhone’. This can be observed in many other luxury brands as well, which prefer to retain their unique global identity and maintain their niche.
These brands formulate a strategy which is in line with the product they are offering, as well as the image they want to be associated with.
There are quite a few examples where brands have been unable to be successful in newer markets despite being leaders in their original markets. This can often be blamed on the lack of market research and formulation of value proposition that would appeal to their new market.
A notable example is Walmart's attempt to expand into Germany in 1998. They tried to replicate their successful business model from the United States, which focused on low prices and large stores, but it did not resonate with German consumers who preferred smaller stores and higher-quality products. Walmart eventually withdrew from the German market in 2006, after sustaining losses of around $1 billion.
There are numerous examples of mistranslations and cultural contexts being used wrongly when simply translated into a different language: Honda’s Fitta being changed to Jazz in Europe and Fit in the US; Pepsi’s ‘Come Alive’ campaign being mistranslated in German and Chinese; Vicks’ trouble in finding a name in Germany that didn’t correspond to a slang amongst others.
So, how can companies ensure that the approach they follow when penetrating a new market in foreign geographies is successful?
Unfortunately, there is no one solution that fits all here. Companies need to conduct thorough research on the local market, including cultural norms, economic conditions, and competition. This is essential in understanding the needs and preferences of their target audience, identify if they have a place in the market and adapt their marketing strategies accordingly.
Secondly, companies should be willing to adapt their products or services to local tastes and preferences. This may involve modifying the product itself or changing the way it is marketed. This, again, depends on the context, as we have seen in the case of luxury products, where their homogenous strong identity is a key feature.
Marketing across borders can be both rewarding and challenging. In the global village that is today’s world, access to different markets is the easiest it has ever been, and opportunities are limitless. Companies that are willing to do their research, adapt to local tastes and preferences, and invest in localisation where needed are more likely to succeed in foreign markets. And while there may be some failures along the way, these can provide valuable lessons for future success.
