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Figure 21.2 Example of a Global marketing Strategy
Source: Coca Cola, Inc.

Obstacles to International Business
Barriers to effective world business exist. Some are minor and easily overcome;
others are nearly impossible to change. In any case, business executives must expect
and learn to handle a multitude of issues in attempting to reach international markets.
Each country offers its own learning curve to penetrating its market.

Cultural Barriers
Firms must understand cultural factors such as language, education, social values,
religious attitudes, and consumer habits to be successful in foreign markets. Procter
& Gamble succeeds in many foreign markets by studying a nation's culture and then
tailoring products and marketing to meet consumer needs. For example, P&G learned
that people in the Philippines wash clothes with a laundry bar and then squeeze the
juice of a local fruit, kalamansi, into the wash water. The fruit gives clothes a fresh
scent and acts as a stain remover. P&G used this information to develop two laundry
bars, Mr. Clean Kalamansi and Perla Kalamansi, for the Philippine market. When
P&G wanted to market its Crest Tartar Control toothpaste in Latin America, the
prospects looked dim because there was no recognized Spanish translation for dental
tartar. By conducting consumer research, P&G marketers learned that Latin
Americans think of tartar as an ugly, cement-like substance, expressed in the Spanish
using the word sarro. So, P&G named the toothpaste Anti-Sarro to help consumers
understand the product's cosmetic and therapeutic benefits.
Mister Donut, now a part of Inspire Brands, sidestepped cultural land mines in
Japan by carefully modifying its product and marketing while maintaining an
American image. For example, it downsized the doughnuts, lowered the counter, and
used lighter weight coffee cups. Most important, it did not challenge traditional
Japanese breakfast habits but instead positioned doughnuts and coffee as snack food,
not breakfast. It also took advantage of the large number of rail commuters by
locating many outlets near train stations.
Foreign goods sometimes fail by ignoring cultural factors in the U.S. market. The
German-made men's cologne 4711 was a flop in the United States because of its
sharp scent and the fact that the scent disappeared quickly.

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