Whenever you enter a fast-food chain restaurant anywhere in the world, the first impression you get is a strong presence of the host country’s culture. These global brands have marketing and promotions departments working around the clock to cater to multicultural markets’ needs. They always focus on multicultural branding. These strategies can take the form of local menu items or more authentic interior design. This type of branding is all about creating a shared value system with the nations where multinational companies operate. This article looks into the different techniques of Multicultural branding and its impacts.
The best way to go about is to keep bringing up the local festivals. McDonald’s example will remain persistent throughout this article. McDonald’s UK has exclusive deals and offers when Christmas is around, or when the football season is in the air. The happy meal toys, local menus, and even the uniform of staff change according to festivals.
Similarly, all multinational companies adapt to connect with the local culture. Why would they go through all the trouble? It is because they could not afford to be alienated from the competition. The customer base needs to connect with a company to increase its sales. Global brands are always trying to invade new markets, which is made possible thanks to the multicultural branding. McDonald’s in Pakistan would change the uniform to the traditional dress of Shalwar Qameez in the Eid season. The effort to connect with the local culture pays off well for the global brands to retain the customers.
The multinational brands must be accepted by the native people of a country where they operate. The multicultural branding raises the acceptability level among the masses. McDonald’s fast-food restaurant in India does not promote beef products, as it does not fit the Indian culture. Alternatively, when operating in Egypt, all doors, display areas, and packaging will be highlighted with the word Halal. It is an acceptable form of meat in the country. Global brands need to make themselves generally acceptable by the population to enhance their market share.
Care for the Community
Global brands are always working towards empowering the youth, local community, or even minorities. They usually run charities within the selected country. They also include words of the local language in their marketing campaigns. These are all efforts to show that the brand is supportive to the residents of the territory. When the global corporates engage with the community, it does not make them a foreigner anymore but a compassionate entity. McDonald’s Corporation sponsors local sports events and leagues to stand alongside the city. They also run educational charities, empowering the disabled, or endowing youth. The care for the community builds customer loyalty, which is excellent for business.
To conclude, Multinational branding is a doorway used by global companies to penetrate new markets and open new business horizons.
Every business dreams of a Competitive edge!
R&D works around the clock to differentiate its product from its competitors. When you are exporting and penetrating markets worldwide, it is a different ball game. It is crucial to distinguish your product on a shelf from related merchandise. If you want to gain exponential sales, the best way to go about is to identify the differentiation factors of the product. This understanding will help you trade effectively in the international markets.
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Product differentiation adds value to the business; it is the reason why your consumers will choose you over your competitors. The most acute factors that play a role while differentiating your product are listed below:
Every business needs a core competency, and similarly, all products need exclusive qualities. When you advertise your product, you ought to focus on the particular uniqueness of your merch. It could be a special ingredient, health benefit, organic nature, taste, durability, or design. If you have no unique advantage over your competitors after careful evaluation, you need to market it differently. Your service or after-sale services can play a critical role in international markets.
You can differentiate your business in the offshore markets by advertising the origin of the product. For example, if you are selling fruits, stressing on where they were produced, how those farms rank number one in the world, etc. People in the international marketplace love purchasing things from different origins; it gives them a sense of association. Especially if you have many immigrants in that targeted country from your home nation, they will be the first ones to buy. Everyone loves buying pasta that was made in Italy.
Price is a critical differentiator factor of the product in the global markets. China plays big on this merit because they usually have economies of scale, and their production costs are economical. They always try to bid a price that is even cheaper than the locally produced merchandise of that country. Pricing below the generally accepted norm will make your product different. For that, you need to understand all the price points in place. Your research on the price trends will matter a lot when setting up your price in that demography.
The most crucial differentiation factor for a product is knowing which type of differentiating you are encountering. There are three main kinds of the discussed topic. The horizontal level is when your quality and price are equal to the competition, and you need to differentiate by positioning your brand in the consumer’s mind based on their class. The other type, Vertical differentiation, is when your competitors have different prices, and you score your product with a brand name. The simple distinction, the third type, is where you have a horizontal level of rates and scope. Still, you market your products targeted on relationships or manufacturing standards. Once you fathom the types, you will know what you are going into.
Way to go, if you are already an exporter or aspiring to become one! Choosing the distribution channel could be a difficult decision, and it may not guarantee growth in your business. How to decide which distribution channel is the right fit for your export business is technical.
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There are numerous distribution channels for export business. You could be directly exporting, which means you approach your buyer viz a viz and close a deal to start your business proceedings. Many companies prefer dealing with the manufacturer or a supplier directly. Alternatively, you could choose the option of E-commerce. It is a simple way of approaching your potential buyers, and digital marketing is the best tool. If you don’t have a background in IT, freelance digital marketing experts could solve your problem. This service would help promote your product in the destined country. Alternatively, you could use the old-fashioned way of hiring an intermediary, a commission agent, who would contact the buyer and secure a deal for you. It is essential to consider all the options and come up with the best strategy. We will simplify the process for you.
Firstly, you need to analyze the distribution channels of your competitors. People who are in the same business as you, and maybe more experienced, have a selected distribution channel. You must assess the effectiveness of that channel; evaluate the outcome and the experience. After the evaluation, you need to decide what’s best for your business and your clients. It is also important to note here that you do not blindly copy what your competitors are doing. The point we are making here is that you do your due diligence of research and analysis. The onus is on you to decide whether to go with the same channel or choose a similar one.
You need to consider the cost factor when deciding the distribution channel. If Indirect Exporting is proving expensive for you, you can always start approaching the clients with your efforts while remaining ethical. You cannot merely steal your commission agent’s client as it does not seem noble. However, if the client approaches you or you start using the Direct Export Channel, it might prove more beneficial for your business. Thus, the related costs to a distribution channel are the deciding factor.
Once you are in the process of choosing which distribution channel is the go-to for your export business, it is best to create a strategic road map first. Here you will line out everything from start to end of the trading process. You could also judge from different options of E-commerce or direct/indirect selling, and rank the selections accordingly. Plan your progress with the help of advance-planning. You could also hire the services of an export consultant to rate your different plans. Still, the efficient way is to run a virtual analysis either by you or by an expert.
Change the channel
If your current network is not working out well for you, choose another. It is essential to keep assessing your business strategies and evolving with time. If your selected distribution channel for exports is not cost-effective or the results are not satisfactory, you could add another distribution-channel. Online marketing, for instance, could be added to your current choice. Alternatively, you could change the export channel altogether. After all, this is your business. You will always need to choose what’s looking best for your profits and customers.
A research conducted by Sandhya Keelery suggests that Indian Agribusiness has seen a burgeoning rise in recent years and foresaw a 350 billion USD business in 2022. Gone are the days when only farming was considered the Agricultural industry. In today’s world, Chemicals, Crop distribution, Machinery, Seeding, Retail sales and many more domains are all part of international exchanges.
Do you wish to expand your consumer base? You need to execute an efficient global strategy to achieve a higher amount of business and, consequently, maximizing your profit ratio. We have listed what international strategy to adopt for your business below:
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Seminars and Exhibitions take place throughout the year. Therefore, companies have to participate in it to maintain their visibility, contact with potential clients and their knowledge of the market. These dealings are crucial for establishing connections and build relations. The relationship you create with vendors, buyers, even competitors in those meetings, will scale up your business in the international market. The conferences also provide you with a chance to display your products as well. Seeds distribution, for example, is promoted with a display counter showcasing your products in the symposia. You get to attend sessions with consultants and enrol in training workshops as well. The atmosphere broadens your horizons and makes you think out of the box. The build-up to your company’s profile can play a significant role in your quest.
You could have all the technological advancements in your pocket, the best organic techniques in your resume, but it could all go wasted. You need to retain your customers! Your buyers need to keep coming back for your products, and the best way to ensure the retention of your clients is After-Sale Services. The problem with selling internationally is that you are mostly dealing through online communication means, and the handling of customer complaints is not efficient. You could set up and offshore call center, or invest in a local presence, be it through the office or a service center. If you are dealing with Agri-Machinery, and your client faces a mechanical hazard, your prompt service will ensure the customer will find you again.
Information is the secret ingredient. Developed countries’ individuals need transparency and access to information. When you are marketing your product or selling it, you need to provide all the required information. If your business is food-related, you need to let out the info about calories, vitamins, minerals, expiration, and origin, etc. Furthermore, you must maintain data of your current clients or potential customers. You can do this by creating an Email Subscription list, Telesales, and Memberships. Your record should contain the contact information, customer profile, purchase history with you. Harness the data and use it for introducing a new product or upselling your real commodity.
All in all, keeping your foot on Data, Services, and showcasing through the professional channel will make all your dreams come to life.