Entering Foreign Markets
Learning about entering foreign markets to me was very interesting. I am a Spanish major and recently studied and lived in Santiago, Chile for a year. During this time I quickly realized the large American corporations that have already dominated the enormous city: McDonald’s, Dominoes, Subway, Starbucks, and KFC. While there were others these are the ones that appeared almost everywhere. While some items differed from the US in these fast food restaurants, Chile and America are similar making the main difference the Spanish language; however, that is not always the case. Fast-food joints all over the world have to adapt to local cultures in order to be accepted by the communities. These green nuggets are an actual item at the McDonald’s in Italy and are filled with spinach and Parmesan.
Although it is a huge potential profit maker to enter a foreign market, there is a great risk that follows. Without the proper knowledge of the culture of the target market at hand, all efforts may be lost in success. This said, many decisions must be made surrounds this issue. Deciding whether to go global or not is the first one, followed by which markets to enter globally (Kotler & Armstrong, 2012). The rest of the decisions deal more with the actual hows such ad how to enter the market, deciding on the global marketing program, and deciding on the global marketing organization (Kotler & Armstrong, 2012).
My favorite example this semester of a taboo foreign market concept was in Japan. Females have historically been glorified for having small mouths, but one specific burger spot serves especially large cheeseburgers. Here it is able to be read about and view a video showing exactly what happened in this establishment. By creating a napkin that covers the females face while eating and replacing it with a pretty smiling face, the restaurant owner said “sales of the classic burger (the big one) to female customers is up 213% from the previous month” (Harris). This example further proves that each culture is unique in it’s own way and must be fully understood before entering with business plans.
Harris, Jenn November. “Liberation Wrapper: A Way for Japanese Women to Chow down and Look Pretty.” Los Angeles Times. Los Angeles Times