Art 7 How to Avoid Business Blunders Abroad

1. Art 7 How to Avoid Business Blunders Abroad By: Grace Xia Postdoctoral of Fudan University Associate Prof. of Shandong University E-mail: grace.xia@sdu.edu.cn

2. 3 Failure Cases: I) A fast-food company selected location for an outlet II) A paper-making company selected location for production III) A pineapple cannery selected location for production

3. Part I Picking the Package I. Problems result from the failure to correctly adapt packaging for local environments. a. problem about the color of package b. problem about the number c. problem about the picture on the label II. How to find the problems at early stage?

4. Part II Changing the Product I. In many instances, the product itself requires alteration. Cases: a. cigarette manufacturer: different taste b. Jell-O company: different texture c. Campbell soup company: different consistency II. Sometimes, significant product modification is required to market products abroad.

5. Part III The Language Barrier I. Necessary step before introducing a product’s domestic name to foreign markets. II. Product name may require alteration . Case: I) Coca-Cola was introduced to China in 1920s. II) General Motor’s brand “Nora” was introduced to Puerto Rico III) “Randan” in Japan IV) “Matador” in Puerto Rico

6. III. Company name may require alteration. Failure Case: a. A private Egyptian airline “Misair” “misery” in French b. An airline “EMU” an Australia bird incapable of flying c. Esso in Japan d. Trade magazine “Gift” “poison” in German e. White Elephant in western If you describe something as a white elephant, you mean that it is a waste of money because it is completely useless. instant noodles/ cup noodles

7. Good Case: a. Kodak b. Exxon c. others

8. Part IV Respecting Nationalism I. Problems occur due to insensitive to the nationalistic feeling. II. To Avoid unnecessary comparison. III. To hire most top-level managers from host country. IV. Most important characteristics for an expatriate manager

9. Part V Problems with Promotions I. Problems about coordinating the sales and promotional efforts Solution: Good example: Coca-Cola Benefit from coordination: Failure example: McDonnell Douglas Corp. Indians or Pakistani Men ?

10. Part V Problems with Promotions I. Problems about coordinating the sales and promotional efforts Solution: Good example: Coca-Cola Benefit from coordination: Failure example: McDonnell Douglas Corp. The Prime Minister of India Singer Former President of Pakistan Musharraf

11. II. Risks involved when using a good theme works to elsewhere. Case: Marlboro ad. : H.K. version III. Local weather conditions will influence the promotion campaign. Case: a swimsuit ad. In Latin America IV. Physical presentation will influence the promotion campaign. Case: an ad. in a cemetery wall

12. V. Symbols or logos will influence the promotion campaign. Case: a. To use a large deer as a sign in Brazil homosexual b. To use an owl in India symbol for bad luck c. A laundry detergent ad. picture in the Middle East d. “napkin” ad. in British “diaper” in B.E. VI. Different promotional budgets in overseas reasons: I) types of media II) scale: better strategy, not absolutely case: a detergent ad. In Austria and Germany

13. Part VI Observing Local Customs I. Problems about local customs I) Local habit case: tea break in Britain

14. II) Local holidays

15. III) Opposite sexes public display case: a. mouth-wash ad. in Thailand b. BiNoca Talc’s talcum in India c. Mountain Bell’s promotional photos in Middle and Far East

16. IV) Social norms case: a. canned fish ad. in Quebec b. toothpaste ad. in southeast Asia

17. c. spectacles ad. in Thailand V) Local religions case: a. to use local religions symbols in ad. b. a refrigerator ad. in the Middle East

18. Part VII Be Sure It Translates I. Ad. errors due to faulty translations cases: a. Pepsi Cola b. General Motors c. an oil well equipment ad. in the Soviet Union II. Solutions I) What can be done A. To hire a second translator to backtranslate idiomatic expressions and slang.

19. case: an Australian soft drink company benefit: reduce translation errors B. To investigate the translator’s qualifications C. Works can be done to simplify the translator’s job. a. to give enough time b. to give freedom to modify original wording c. to avoid overly technical terms and industry jargon d. to avoid jokes in ad. e. not to limit to a particular amount of time or space f. to inform the message’s objectives and theme

20. D. One of the best solutions: not to translate the material case: Libby II) Using English in Non-English-speaking Countries Pay attention to: Part VIII Research Can Help I. Advantage of proper market research II. Mistakes occurred due to standardized promotion

21. III. Two major functions of using market research IV. Specific data requirements V. Market tests