The Challenge Of The Export For

Introduction

“If exporting to a new market, you need to be aware of cultural differences between yourself and your international business partners. Familiarity with customs and etiquette ranging from business methods, dress and diet to history and religious customs will improve your chance of success.” http://www.nzte.govt.nz

The challenge of the export for a company lies on this quotation. Indeed, the marketing abroad is complicated because it is necessary to adapt itself to the characteristics which are appropriate in each country.

Let us take an example of advertising which works in France could not get success in Asia because of the cultural differences.

Look at this advertising below which was shown in Europe.

In Europe it run very well because the snake is the symbol of the temptation.

Whereas in China, the snake is a hateful symbol. So, we cannot publish this picture as an ad in China.

Though it is the same image, it means different in the different places.

What else, we should not only adapt to the country culture, but also to the collaboration company. In other words, to study the habits of this company, like its capacity of the negotiation. It is important not to take the way we work as a universal model.

Next, the key point for a company is to inquire about the customs to surmount this problem.

For this purpose, it can realize the quantitative and the qualitative studies to set targets, to develop its strategy. It must be adapted to explicit and implicit needs directly linked to the society where we want become integrated

So, in the marketing international strategy, it is important to focus to the environment. In fact, we have some parameters that block this market entry. We have the tariff barriers, the no tariffs barriers and other parameters that can have an express impact on the product or on the marketing strategy (for example: the literacy).

Various strategies of adaptation can appear to the company which wishes to export:

1. The standardization that is a global way to apprehender the foreign market with uniforms consistency throughout the mix market as the strategy of Twix who have the same adaptation strategy everywhere.

2. The adaptation: in fact, the company adapts their market strategies when it entries on a foreign market. For example, the company can change the price, the promotion and the packaging of a product in order to fit the needs and the preferences of a particular country

3. The glocal strategy that is a compromise between global and domestic marketing. So it is depending on local demand local and the local competitive environment.

Moreover, in some cases, the company will not be able to standardize its products in foreign markets because of the government regulation or the standards. The standards are not a legal requirement, so usually you are not obliged to respect it. But if the product does not fit with the local standards it will not be bought. So, a company who wants to export must be careful.

A technical adaptation is necessary if you want to sell your products on the foreign markets as:

- Geographical aspects

- Physical aspects

- Climatic conditions

- Morphological characteristics

- Consumption habits, … etc.

Finally, one of the keys to success has to deal with the identification of the product in the market, if the local consumer do not know and recognize the product, he will not buy. So, the company must concern about:

- The commercial designation. In fact it’s the generic name given to a product. For an adaptation strategy, it can be dangerous to translate the name of the product directly in a foreign language. For example: the “viande hachée” in France will be called “humburguesa in Spain and not “Carne picada” because it’s not the same designation.

- The labelling

- The packaging that can differ concerning the size, the same used materials, the design.

These characteristics are linked directly to the culture of the country where we want sell our product. So there is some criteria which the company has to respect before being established in another country.

We are going to discover two cases in this file:

1) The case of KFC in China

2) The case of a brand of Hermes which tried to integrate the clothing’s Chinese market.

We will analyze what are the factors of success, their strategy of export, what succeeded for KFC and what failed for Hermes.

KFC adapts to Chinese culture

When this fast food chain opened its first restaurant in China in 1987, the success was worn by the craze for the discovery of the Western way of life.

Today, KFC has more than 1,000 restaurants in this country. And each opens for 22 hours a day. Though fast food lost its status of curiosity, it has anchored its brand in the local culture.

Company profile

The history of the KFC began in Henryville, Indiana (USA) which was created by Harland Sanders. Sanders was so passionate about the kitchen. However, in order to meet the needs of his family, he was forced to exercise many trades. In 1940, finally he decided to put on his own account and therefore to serve its own customers in the service station in Corbin Kentucky.

This small market gradually opened a door of success, which allowed him to open a restaurant. It was once again a "thriving" case that allowed him to create a network of franchises across the country. A few years later, due to the construction of a new highway Interstate, Sanders was forced to close his restaurant and he was ruined.

But this is not the end, Sanders did not give up, he travelled across the US to find the one who would like to buy his chickens. He set up his new company, which he called "Kentucky Fried Chicken" following the advice of Pete Harman, owner of the first deductible sold by Sanders. The new company therefore grew to have 600 outlets across the United States. However, in 1964, Sanders sold this company for $ 2 million to a group

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