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8/2/2019 International Marketing Session
1/29
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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Marketing Fundamentals
Yum Brands KFC
8/2/2019 International Marketing Session
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Marketing Fundamentals
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 )
8/2/2019 International Marketing Session
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Marketing Fundamentals
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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Marketing Fundamentals
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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Marketing Fundamentals
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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Marketing Fundamentals
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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Marketing Fundamentals
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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Marketing Fundamentals
Yum Brands KFC
8/2/2019 International Marketing Session
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Marketing Fundamentals
Tatas Tetley Tea Brand in USA
8/2/2019 International Marketing Session
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Marketing Fundamentals
Tatas Tetley Tea Brand in USA
8/2/2019 International Marketing Session
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Marketing Fundamentals
Tatas Tetley Tea Brand in USA
8/2/2019 International Marketing Session
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Marketing Fundamentals
Tatas Tetley Tea Brand in USA
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Marketing Fundamentals
Risk, Consensus & Competitiveness
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Marketing Fundamentals
Individual Orientation, Time Orientation
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Marketing Fundamentals
Communication & Task Orientation
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Marketing Fundamentals
Explicit and Implicit Iceberg
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Marketing Fundamentals
Our Stained Glass Lens
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Marketing Fundamentals
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
8/2/2019 International Marketing Session
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Marketing Fundamentals
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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Marketing Fundamentals
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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Marketing Fundamentals
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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Marketing Fundamentals
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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Marketing Fundamentals
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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Marketing Fundamentals
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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Marketing Fundamentals
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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Marketing Fundamentals
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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Marketing Fundamentals
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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Marketing Fundamentals
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