How to Avoid Business Blunders Abroad

1. How to Avoid Business Blunders Abroad David A. Ricks

2. Introduction • Locating a fast-food restaurant in high-traffic areas (Munich, Germany). • Ask the right questions (Land in Sicily) • Location! (pineapple plant in Mexico).

3. Picking the Package • Adapting packaging to the local environment • White symbolizes death in Japan • Green represents danger or disease in Malasia • Numbers in Japan may be evil (even numbers of products pictured on a label) • Baby’s picture on the baby food jar in Africa • Suggests test market, brief survey, interviews or discussions may have avoided these blunders.

4. Changing the Product • American brands sell well if the product is adapted (Tastes). • Product consistency/texture (Jello) • Campbell’s soup in Great Britain (not condensed) • Dishwashers for example • Different Electricity requirements (110 vs. 220 v) • Water pressure differences • Accommodate different sized and shaped dishes & utensils

5. The Language Barrier • Company or Product name • Coca-Cola in China - “Bite the Wax Tadpole” • GM’s Nova in Puerto Rico - “it doesn’t go” • US oil co. in Latin America – “jackass oil” • Shampoo “Evitol” in Brazil • “Dandruff Contraceptive” • Chocolates in the USA by German firm – “Zit!” • Airline in Australia – “EMU” • “gift” in German is “poison”

6. Respecting Nationalism • Spanish Manufacturer flying a US flag • Product comparisons are ok, comparing governments is not! • Hiring from within host country!

7. Problems with Promotions • Promotion without coordination of production and delivery • McDonnell Douglas showed Turbaned men in an aircraft brochure for a promotion in India – The men were Pakistani • The Marlboro Man in Hong Kong – people could not associate with horseback riding • The slogan “With XXX your already there” promoting air travel (on a cemetery wall). • The word “Deer” in Brazilian is the name for homosexual.

8. Promotions (cont’d.) • “you can use no finer napkin at your dinner table” (in the UK napkin means Diaper) • The advertising budget can not simply be set as a percentage of sales • Media types available differ • Small subsidiaries may not produce much revenue

9. Observing Local Customs • Norms • British tea breaks • Local holidays • Public display of affection unacceptable in Thailand • BiNoca Talc Commercial in India – Apparently nude woman? • Display of the sole of the foot or shoe is insulting in some countries

10. Local Customs (Cont’d.) • Women playing golf with men and wearing shorts in Quebec. • Pepsodent promoted toothpaste that “enhance white teeth” in southeast Asia, however, some local people chew betel nut to achieve the social prestige of darkly stained teeth. • Promoting eyeglasses in Thailand using animals? • Religious symbols used in advertising? • Refrigerator co using a picture of a large Ham in the ice box to promote its product in the Middle East

11. Be sure it translates • “Come alive with Pepsi” in German “Come alive out of the grave with Pepsi,” in Asia “Bring back your dead relatives with Pepsi” • Hunt Wesson marketed Beans in Tomato sauce in Quebec as “Gros Jos,” which translated means “Big Breasts” • “Body by Fisher” in Flemmish “Corpse by Fisher” • “Billion” contains 9 zeros in the US and 12 zeros in Europe.

12. What can be done? • Back translation • Market research • Representatives or employees who are versed in local customs (born there!) • Keep it short • Avoid slang • Avoid humor • Cite examples • Repeat important points