international marketing session

8/2/2019 International Marketing Session

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Marketing Fundamentals

International Business

KFCs International Growth Why KFC is so Successful Abroad

The Tata Brand Abroad

Tetley Tea in America

Conglomerates in America

Doing Business Abroad: How Were Different

Communication Styles

Task and Risk Orientation

Decision Making


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Yum Brands KFC


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Yum Brands KFC

KFC operates in 80 countries andterritories (2005)

Over 11,000 Restaurants (2005)

8 million customers per day (2005)

Worldwide system sales of over $8billion (1996 )

Average U.S. system-wide sales

per unit $775,000 (1996 )


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KFCs International Success: The Reasons

Being first or second US fast food concept in the

country KFC started in Japan and Australia around 1970 In some countries they got there even before

McDonalds

Pro-US countries liked and wanted to share inthe American lifestyle

Local country KFC started and run by locals Universal appeal of chicken as a food item

A breaded, fried product was unique, Smart adjustment of the menu

Replacing mashed potatoes with french fries

Adding inside seating in some countries KFC's Original Recipe Chicken had a unique

taste that defined fried chicken ala US-style


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KFCs International Success

Today, KFC Intl is a major profitgenerator for its parent, Yum Brands

In many countries KFC has incrediblyhigh usage frequency

In the Caribbean during the 1980's itwas not unheard of to have customersvisiting 2-3 times a week! At first Ididn't believe the research but it was

true.


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KFCs International Success: China

China opened to the world following President

Nixon's visit in the early 1970's,

US QSR chains were slow to get there

Chinese government had higher prioritiesthan restaurant chains for allowing new

industries with foreign investment KFC opened its first unit there in 1985 -the

first US QSR to open

All of the above factors were in play.

Today, KFC has over 500 or maybe even1000 stores there


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Yum Brands KFC

The Colonel perfected hissecret blend of 11 herbs andspices for Kentucky FriedChicken in 1939

Signed first franchisee in 1952.

Acquired by PepsiCo in 1986:6,600 units in 55 countries andterritories

11,000+ Restaurants today


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Yum Brands KFC

KFC restaurants offer fried chickenproducts and some also offer non-fried chicken-on-the-bone products

Side items such as biscuits, mashedpotatoes and gravy, cole slaw andcorn, as well as desserts and non-alcoholic beverages

Distinctive packaging includes the"Bucket" of chicken

Positioning: There's FastFood...Then There's KFC!


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Yum Brands KFC


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Tatas Tetley Tea Brand in USA


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Risk, Consensus & Competitiveness


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Individual Orientation, Time Orientation


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Communication & Task Orientation


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Explicit and Implicit Iceberg


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Our Stained Glass Lens


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Coming to an Agreement

US: Like to write things down, even in initial stages. Try to include all aspects of agreement in the final written

document. Use legal advice and language. Nothing is binding until signed by all parties

India: Use contracts and a system of law, but overall there is less

emphasis on legal issues. Focus during negotiations is more personal. Individual parts of an agreement are usually open to

continued discussion and change until a final contract is

signed. Patience is required to maneuver through the slow-moving

bureaucracy inherent in all facets of Indian life


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View of Time

US:

Monochronic.

Consider one thing at a time, adhere to schedules, don'tappreciate interruptions.

Deadlines are important

India:

Little sense of urgency or need to focus on the shortterm.

Strong orientation to the past and the long-term future.

More relative view of time when it comes to deadlines andappointments.

Punctuality is expected from foreigners, however


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Decision-Making

US:

Can be individualized and autocratic Value is placed on majority opinion

A willingness to consult, although final I decision often rests withleader.

India:

Decision-making authority rests with the most senior individuals Middle level managers may have input, but always defer to

the highest ranking person

Decisions are rarely questioned

The decision-making process is slower than in the West

There is I also a higher reliance on religious values andfaith when making a decision


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Communication Style

US: Direct communication style.

Concerned with presentation of facts and with the "bottomline."

Usually unemotive, although willing to show emotions, such

as frustration, as a means of influencing the group India:

Indirect communication style.

Use of implied meanings, especially to avoid saying "no."

Concern with hospitality and politeness.

Nearly always use social conversation as an introduction tobusiness discussions


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Protocol

US: Informal style, consistent with egalitarian values

and lack of emphasis on hierarchy. Moreconcerned with getting results than with showingdeference

India: More formal than U.S., although not a great

emphasis on ritual. Protocol is mostly important inrespecting the hierarchy and paying properattention to the most senior personnel. Concernedwith politeness, courteousness


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Gestures

Never point at someone with your foot. Also don't sitwith your feet propped up and the soles of your feetshowing.

Pointing with one finger is considered impolite.Rather, use an open palm to gesture

A person may indicate "yes" by moving their headfrom side to side, in a gesture looks like a "no" to

most Westerners Winking may be taken to have a sexual meaning

Whistling is considered impolite


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Gift-giving

Gifts are not expected, but are appreciated

Flowers are a common gift in India. Avoid gifts ofleather products to a Hindu

Gifts are not generally opened in front of the giver.Don't be surprised if the recipient sets aside your giftand opens it after you have left

Black and white are thought to be unlucky. Avoid

wrapping gifts in these colors Conversely, green, red and yellow are seen as lucky

colors


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Managing Workers

An important consideration in managing Indian employees is the

overall harmony of the workplace. There is an emphasis on themaintenance of group harmony as a vital managerial goal. In asociety that is built on interpersonal and long-term relationships,it helps managers to show concern for their workers. This may bedone more out of a sense of the obligation that comes with one'sposition, but it is important nevertheless.

It is also important to remember that Indians have a loose view oftime. Deadlines are likely to be seen as more flexible than hard,particularly among those who have not worked in a Westerncompany. Indians take a longer view of events than do

Americans. If a deadline is important and unchangeable, it will benecessary to emphasize this point, or even to create an artificialdeadline that is earlier than what you really expect.


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Giving Feedback

Indians don't always separate work and personalrelations in quite the same way as Western-orientedmanagers would expect.

Many businesses have traditionally been family-owned, so there is more of an overlap betweenpersonal and work relationships.

Thus, criticism is not likely to be done in public, in

front of other employees. It is best delivered in aprivate setting, between the manager and theemployee.


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Cross-cultural Communications

Avoid humor. It doesn't translate well

Be careful when using gestures. Certain ones may beobscene in some cultures

Learn appropriate nonverbal communications skills. What yousay may not be what they understood. Whatyou hearmay not

be whatthey meant to imply Say exactly what you mean. Double-meaning words and

actionizing verbs should be avoided

Localize all written materials

Provide as much written information in advance as possible.It's not their first language


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Cross-cultural Communications

Be aware of your own speech: speak slowly without patronizing

enunciate your words

avoid idioms, slang and jargon

avoid language which presumes culturalunderstanding

Baseball English - touch base, out of left field, etc.) .

if at first they don't understand, shouting it won'thelp

international marketing session

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