Idea/Product can’t be applied universally: Even though we are in 21st century and in a global market an idea/product can’t be taken from place/country “A” and applied to place/country “B” without any understanding of the place/country “B”. Chapter: 2 in the book talks about Hindustan Motors Rural Transport Vehicle that was targeted to India’s rural segment, Tata Nano and other examples. Each of these examples is successful because the companies promoting them spent considerable time, resource and energy in understand the need of the market based on utility, price and need. It is also important for companies to know that compromising on product and quality will always fail whether the product is launched in developed or developing market. That is the reason companies like HM and M&M even though had vast experience in automobile industry still preferred to work with foreign companies to launch products targeted to specific segments.
Consumer Behavior: Understanding consumer behavior is very important when a company is trying to either enter a country for the first time with a product/products or when an established company is trying to launch a new product in an existing country of operation. As illustrated with examples of Amway and Domino’s Pizaa in developing countries consumers can either take a promotion or assurance in either positive or negative way that can have a bearing on the company. Again to restate it is important for a company to know firsthand who its consumer is and what kind of consumer culture they have. Based on that knowledge the company should provide offerings and/or educational programs to compensate.
Respect Power of Religion and Culture: Countries like India are very good examples of how diverse a population or target market can be. It is very important for companies whether multinationals or local to come up with offerings that don’t disturb religion and culture fabric. The book talks about McDonalds severing hala chicken products in Detroit and even McDonalds do sever Indian customers with halal and pure vegetarian products. McDonalds is a very good example of how a company has adopted itself to different cultural and religious fabric in developing countries. In India McDonalds severs its customer’s pure vegetarian and halal food and desist from serving beef products because of religious sentiments of consumers.
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