Marketing in Different Cultures:

1. Marketing in Different Cultures: A look into the International Marketing strategies of Apple, Nike, Coca-Cola, and McDonalds

2. Introduction: International Marketing • exchange of goods and services between different national markets involving buyers and sellers • simply the application of marketing principles to more than one country • According to the American Marketing Association, “International Marketing is the multi-national process of planning and executing the conception, prices, promotion and distribution of ideal goods and services to create exchanges that satisfy the individual and organizational objectives.” Cultural Influences on Marketing • Values- dictate what is acceptable and unacceptable behaviour • Symbols- language, both spoken and unspoken forms, as well as folklore, drama, dance and music • Rituals- patterns or behaviors that are learned and repeated • Thought Processes- vary among different cultures and could affect how a country perceives your product

3. Nike: An Introduction • Founded on January 25, 1964 by Bill Bowerman and Phil Knight • Nike’s products include: footwear, clothing, equipment, and accessories • Over 200 countries have Nike distribution channels • Major markets are found in North America, Europe, Asia, and South America • Nike has 3 major Distribution Channels • Selling to wholesalers in the US and Internationally • Direct-to-Consumer (DTC) sales, which include in line and factory retail outlets • Sales to global brand divisions • Nike employees nearly 34,000 people worldwide

4. Nike: International Marketing Strategy International Marketing Strategies Include: • To deliver innovative new products and experiences in a more sustainable way • Nike says, “this isn’t about trading one business challenge for another, but rather something that needs to be addressed. It’s about recognizing that sustainability is a route to future profitability.” • Nike has recognized that the worlds markets are changing and new services are being demanded and in order to thrive in these markets they need to get close to these markets and study them • Nike knows they need to develop new, digital solutions and customize the products they already have • Nike has a very effective web marketing technique, specific team designated to translate web pages into other languages Efforts to grow Internationally: • Understand their customers needs and adapt accordingly • Keep ahead of the competition (ie. advancing their products to be more than just shoes for sports in the Asian markets

5. Nike: International Sales NIKE IS JUST DOING IT INTERNATIONALLY! • Last quarter, Nike’s international sales accounted for 57% of its total revenue • China being one of the major booms internationally, but also Argentina, Brazil, and Mexico making an impact. • Nike has approx. 260 Non-US Retail Stores, located all across the world. • Global web sales have increased 42% in 2014 • Net income increased by $27 million from 2013 to 2014 • Major cause of this increase is the focus on e-commerce • they continue to invest heavily in this focus area

6. Coca Cola- An Introduction • Founded in May 1886 by a Pharmacist named John Pemberton • enabled to produce an alternative to the Alcohol product • Sold as a type of drug that strengthens the nerves and relieves headaches and helps digestion process

7. Coca Cola- An Intro Contd. • In 1900, Coca-Cola was marketed outside the United States • In 1909, the first sale of the drink was in London • By the end of 1916, Coca-Cola arrived in Canada, Mexico, Cuba, Germany and France

8. The first factory to fill Coca-Cola in the Middle East was established in 1944 in Egypt

9. Plants in Riyadh and the Eastern Province of Saudi Arabia were producing Coca-Cola drink

10. Also, a Coca-Cola plant, located in the capital of Iraq • it was characterized by extensive glass facade that revealed the lab and machines while the product was being made • this showed the Coca Cola was not trying to hide anything to their international market

12. Coca-Cola works in 14 countries in the Middle East and six countries in North Africa. Today, they have three mobilization and seven distribution centers, factories.

13. Coca-Cola products

14. Coca-Cola: Marketing Strategy • Coca-cola understands the traditional variety for each culture. • Coca-cola advertises depending on the culture and religion • for example in the Middle East Coca Cola promotes Ramadan but in the West they use Santa • Coca Cola uses country specific marketing • for example for football occasions in the Middle East, Coca-Cola uses Arab player’s photos on their cans

15. Coca-Cola Advertisements

16. Coca-Cola sizes

17. Coca-Cola Promotions

19. Mcdonlad’s History • First McDonald’s was opened in 1940 • In San Bernardino, California • Established by McDonald brothers, Maurice and Richard. • Initially McDonald’s was a barbecue restaurant • Soon changed to selling burgers, fries, breakfast items, and desserts.

20. It is the world’s largest chain of hamburger fast food restaurants. It serves roughly 70 million customers daily in more than 100 countries across 35,000 outlets.

21. Global Marketing Strategy • Mcdonald’s is known for creating marketing strategies that appears in different counties, but are altered to fit the demographic • Create options that satisfy the palates of those countries • Highlight the differences of values and traditions in each country.

22. Segmentation US : •In the US, advertising normally targets children. •Americans spend more money at McDonald’s Japan : •Sometimes they focus on children but they also target adults.

23. Testing • Experimentation is vital • Seasonal and limited items in Japan • Such as “The Teri Tama Burger”, served during spring, or “The Tsukimi Burger”, (in the fall) • US : “McRibs” just available for a short time each year.

24. Global Product Marketing • Strategic differences between US McDonald’s and the Japanese version • In Japan, they call it ‘Makudonarudo’, (マクドナルド), • Drink sizes and fries are much smaller than the ones in the US, and burgers are a bit smaller too

25. Mcdonald’s in Saudi Arabia •Halal meat •Close in praying time. •Family section, men section •In Ramadan (close during the day) (Open at night). •Special/ unique meals: McArabia Chicken •Currency > Riyal •Big Mac in Canada sandwich ($5.29) Saudi Arabia (SR 11 = $3.5)

27. Apple • Founded in 1977 in California, by Steve Jobs and Steve Wozniak • Designs, manufactures, and sells Computers, software, mobile communications and media devices, as well as a variety of third party applications and accessories

28. Apple • If Apple was a country it would be the 61st wealthiest, with a GDP of 65$ billion last year • Has 317 stores worldwide, each of which sells 93,150$ worth of product a day • Majority of sales come from products made in the last decade • Apple spends a fraction of what Microsoft does on R&D(1.7$ billion, 8.7$ billion) (Business Insider, 2010) • Each iPhone contains hundreds of parts from Asia, Europe, and Africa, which is all assembled in China.(Forbes, 2012).

29. Apple • According to Apple’s Annual Report for 2014: • Net sales have consistently gone up from 2010 - 2014 • Greatest increase in sales is from products made in the last decade • Increasing majority of sales are in China, Asia, and Europe

30. Apple • Apple’s philosophy and marketing strategy is all about innovation, quality, and integration. • Ipod/I-tunes, “a thousand songs in your pocket”. • Iphone, “first” smart phone, touch screen, apps. • Ipad, half smart phone, half computer • Status symbol • Uses universal OS and software across all devices, one account that grants access to all devices and services. • You can Itune on your Iphone through your Appletv

31. Apple • Apple uses a marketing tactic called “transcreation” to appeal to international markets • Uses images in campaigns that can be nuanced world wide • uses few words in original english ad campaign, so that it is much easier to translate in other countries. • take the extra effort to approach every local market abroad

32. Apple

33. Apple

34. Apple’s China Strategy • Apple’s initial strategy in China was to not approach it at all. • Instead of designing cheaper versions of its product, Apple chose to wait for the emerging middle class to be able to afford to buy the traditionally “overpriced”, products • Apple has been criticized for its inability to properly tap China’s market for cheap smartphones by sending in older versions of its current models instead of designing cheaper phones. • Is it laziness/lack of preparedness, or a sound marketing strategy? • At the launch of the Iphone 5, 2 cheaper versions were made, and premiered in China. • Since then, Apple has moved up to 5th place in China’s smart phone market, the biggest in the world.

35. Works Cited aboutmcdonalds.com http://ar.coca-colamaroc.ma http://www.blurgroup.com/blogs/marketing/what-is-the-secret-to-mcdonalds-global-branding-success/ http://www.coca-colafemsa.com/femsa/web/conteudo_en.asp?idioma=1&conta=44&tipo=27617 http://enterpriseinperspective.com/stories/coca-cola-goes-global/timeline-coca-cola-goes-global/ .http://enwikipedia.org/wiki/John_Pemberton https://www.google.ca/search?q=nike%27s+distribution+channels&rlz=1C9BKJA_enCA604CA604&oq=nike%27s+d&aqs=chrome.3.69i57j0l3j69i60&sourceid=chrome-mobile&espv=1&ie=UTF-8&hl=en-US http://globalebrands.com/mcdonalds-winning-at-global-marketing-strategies/ https://www.internetretailer.com/2014/06/27/nike-grows-global-web-sales-42 www.nike.comhttp://wallstcheatsheet.com/stocks/how-nikes-business-is-doing-it-just-right-overseas.html/ http://www.nikebiz.com/crreport/content/strategy/2-1-1-corporate-responsibility-strategy-overview.php?cat=cr-strategy http://www.olayan.com/Product/3 http://smallbusiness.chron.com/cultural-influences-marketing-strategies-26121.html http://www.wikinvest.com/stock/Nike_%28NKE%29/International_Markets

36. Questions In 1977 Apple was founded by Steve Jobs and ?

37. Those of you that are from somewhere other than Canada or the US, do you notice the difference in Nike’s marketing? Is there a difference between Canadian marketing and your home country?

38. Why do you think the Coca-Cola plant in the capital of Iraq was characterized by extensive glass facade?

39. Why do you think the “McRib” at Mcdonald’s (US) is only available for a short time?