International Market Bloopers

Even large multinational corporations like Starbucks and Wal-Mart have lost millions of dollars trying to transplant American consumer behavior onto international cultures with different buying wants and needs.

Predicting international buying behaviour is complex because purchasing decisions depend on many factors including age, class, education and a host of psychological traits.

To successfully sell products in international markets, companies must thoroughly study the cultures of targeted buyer groups. In some cases, this requires direct, hands-on experience with how a given culture limits consumers to products deemed as socially acceptable. Marketing managers must understand the mindsets of potential buyers in a foreign market in terms of wants and needs, how they arise, and how and where they are likely to be satisfied.

Perhaps the best way to reinforce the importance of market cultures is to peruse examples of past failures.

Coffee Failures in China and France

In July 2007, Starbucks was forced to close a 200-square-foot Starbucks coffeehouse in China’s former imperial palace, the 587-year-old Forbidden City in Beijing. Older Chinese are much more sensitive about protecting cultural symbols than they are interested in gulping down American-style coffee.

Starbucks also had to deal with an initial lack of acceptance from France's historic cafe culture. Older French consumers frowned on a big American coffee chain with trademark disposable cups. By positioning its coffee shops near tourist attractions, Starbucks has been able to entice younger coffee drinkers in France to join American tourists like those in Paris who embrace such favourites as Starbucks caramel coffee.

Years earlier, American conglomerate Chase and Sanborn tried to sell instant coffee in France but was met with stiff cultural resistance. French housewives generally avoid instant brands because their freshly brewed coffee plays more of a ceremonial role than in English homes.

Campbell’s Misjudges British Tastes

The Campbell Soup Company lost US$30 million before accepting three critical cultural differences between British and American soup eaters.

• Brits have different taste preferences for their soups, but Campbell’s made no attempt to address the decidedly British palate.
• British soup consumers were unfamiliar with condensed soups and therefore rejected the smaller can size.
• Campbell’s American-style advertisements had little effect on a British audience.

Wal-Mart Loses in Germany

In July 2006, America’s biggest retailer Wal-Mart withdrew its operations from Germany after losing some $250 million per year. Germans want to shop in downtown stores, not in Wal-Mart big box outlets located outside of urban centers. In addition, German culture frowns on Wal-Mart store greeters and baggers at checkouts – the first and last impressions that shoppers get when visiting Wal-Mart.

American Cigarette Brand Chokes in Canada

America’s close neighbour Canada differs significantly in consumer tastes and buying habits even though Canadians speak the same language, have similar cultural heritages, dress more or less the same and watch similar television programs as Americans do. Philip Morris lost a considerable amount of money when the company unsuccessfully tried to introduce a U.S. cigarette brand to the Canadian market.

Latin American Toothpaste Blunder

An American toothpaste maker ran an advertisement in Latin America saying that the firm’s toothpaste makes users more "interesting". In Latin American nations, the term "interesting" suggests being pregnant. This of course resulted in an unsuccessful – if somewhat amusing – international advertising campaign.

References

Several examples in this article are based on the case study "Culture In International Marketing And Buyer Behavior" from wowessays.com.

Starbucks in Forbidden City, Beijing

Print Article

Email Article

View All Articles

How to subscribe to feeds