Starbucks succeeded in Asia specifically because it did not market the same way that it did in North America. Cultural differences made it difficult to market their primary product (coffee), so they shifted focus to their secondary product (the casual "third place"), something that is in high demand in Asia's densely populated cities and Asia's communal culture (Chang, 2010). Had Starbucks stuck with its focus on coffee, the message would have been lost on tea-drinking Asian consumers.
The notion that products can be marketed the same all the world over is a fanciful one. Even the world's most ubiquitous companies tailor their products, their distribution and their promotional strategies to the local conditions. The brand may be the same, but the marketing behind the brand is often very different.
4. There are a number of costs beyond the domestic price that must be considered when marketing abroad, including product-related costs, transportation costs, marketing costs and financial costs. The first set of costs is product-related. These include modifications to the product to meet the needs or standards of the foreign country.
Once the product is ready to go, there are a range of transportation related costs. These include shipping to the international market, insurance, customs brokerage fees, duties and tariffs. Lastly, there are transportation and distribution costs within the foreign country to bring the goods to market.
A third set of costs includes marketing costs. This includes not only the basic costs associated with developing a marketing program, but other costs as well. Special packaging must be developed. The local market must be studied and segmented. Executives from the company will need to travel to the new market in order to build the infrastructure required to bring the product to market as well (UNZCO, 1999).
Lastly, there are costs related to currency exchange (unless the export takes place within a currency bloc). These include transaction risk costs, hedging costs and the financial impact of currency translation back to the home country financial statements. These can work in the company's favor, but management should assume that they will not, and therefore will be costs.
5. Building international distribution...
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