driving profit across cultures with bmia™

Driving Profit Across Cultures:

The BMIA FrameworkAndreas Fried, M.Sc.Director Of Business Development Universal Consensus

linkedin.com/in/andreasfried

Welcome

Who We AreUniversal Consensus is an international business development firm. We develop and execute strategies, processes, and training for successful international business.

2

Welcome

Who We Do It ForSpecialize in delivering success for multi-cultural operations

3

Welcome

The Result

Significantly Increased Sales Internationally

2008-2010 Average Client Quantifiable ROI (International Sales-product)

4

Agenda

5

Agenda

Todays AgendaExtracts from a 3-day workshop on InternationalSales & Marketing

1. Framework - BMIA2. Branding and Marketing - Glocalization

3. Cultural Themes4. Key Business Norms by Lens

6

Framework - BMIA

17

Foundational Frameworks

Business Model of Intercultural Analysis (BMIA)

8

Foundational Frameworks

Assessment ProcessDiscovery Corroboration Findings & Recommendations Planning Implementation & Support

Branding and Marketing Glocalization

210

Cultural Background

Business Model of Intercultural Analysis (BMIA)1. Glocalization 2. Cultural Themes 3. Process Engineering 4. Communication 5. Time Orientation 6. Group Dynamics

11

Branding and Marketing

GlocalizationGlobal Branding Local Adaptation Be aware of cultural blockers


Branding and Marketing Importance of getting it right

13


Euro Disney: A Company that Did It Wrong When Disneyland launched Euro Disney: It tried to maintain its standard American (USA) formula It assumed that customers would seek the authentic Disney experience

Shortly into the launch, Euro Disney was declared a failure The key reason not localizing the brand experience

14


Euro Disney: A Company that Did It Wrong Euro Disney followed brand policies exactly: English-only instructions No wine consumption High ticket prices Standardized merchandise and food items

Widespread dissatisfaction resulted and changes were quickly made

15


Euro Disney: A Company that Did It Wrong Changes:Wine and beer sold Real cutlery, not plastic Name change from Euro Disney to Disneyland Paris Kennels built for French families who go on vacation with the family dog Grooming standards relaxed (women were allowed to wear red nail polish)

16


Euro Disney: A Company that Did It Wrong Euro Disney followed the golden rule of branding consistency in brand elementsbut failed because it didnt take local adaptation into consideration.

17


Marketing The Four Ps of marketing are all affected as a company markets globally Product Price Placement Promotion

18


Marketing in South Korea Product Foreign goods must be competitively different or superior as local brands are preferred Exception for global luxury brands as Koreans are brand sensitive

Price Do not favor (Western style) discount price strategies Prefer local brands and to buy what looks fancy More influenced by aggressive sales techniques than price

19


Marketing in South Korea Promotion: Social media very strong. Korea most digitalized country in the world Word of mouth extremely important. Korea is very densely populated and group oriented which facilitates word of mouth

Placement: Large system of intertwined middle-men networks that is often very inclusive

Using a local distributor will allow network access and build consumer trust

20

Cultural Themes

321

Cultural Themes


22

Cultural Themes

Key Business Values - ChinaEight Key Business Elements in China: 1. Guan Xi (Personal Connections) 2. Zhong Jian Ren (The Intermediary) 3. Shehui Dengji (Social Status) 4. Renji Hexie (Interpersonal Harmony) 5. Zhengti Guannian (Holistic Thinking) 6. Jiejian (Thrift) 7. Mian Zi (Face or Social Capital) 8. Chiku Nailoao (Endurance)

23

Cultural Themes

Zhengti Guannian (Holistic Thinking)Plan and Structure Negotiation, Presentations, Meetings and Projects Effectively

24

Cultural Themes

Face ( mian zi ) Importance for successful business : High Face = Self-respect = Dignity Lose face Grant face Give face

25

Key Business Norms

426

Business Norms by Lens


27

Process Engineering Includes:

Business Norms by Lens: Process Engineering

1. Optimization of business processes across cultures2. Risk, Change and TechnologyWillingness to ChangeTrust of Outsiders Risk Tolerance Trust of Technology

28

Change ToleranceSaudi Arabia Iran Brunei Chile Czech Republic Egypt Indonesia Mexico Philippines Russia Thailand United Arab Emirates Vietnam Argentina Austria Belgium Brazil China Denmark Finland France Germany Greece India Ireland Italy Malaysia Pakistan Poland Portugal Qatar Romania South Korea Spain Sweden Switzerland Taiwan Turkey Ukraine United States

Business Norms by Lens Process Engineering

Hong Kong Israel Japan Netherlands New Zealand Norway Singapore United Kingdom

Australia Canada

Trust Trust of Outside Groups Many cultures trust only their own compatriots Their family Their kin People from their region Their tribe

Business Norms by Lens Process Engineering

They are wary of outsiders For example, many Koreans and Japanese are wary of all outsiders, including Americans Nationalism strong in countries such as Japan, Russia, Norway, Hungary, and Korea

30



31

Communication StyleDirect? Indirect?

Business Norms by Lens: Communication

Data-oriented? Dialog-oriented? Disclose info freely? Restrained?

32

Cognitive Style Long-term orientation

Business Norms by Lens: Communication

Short-term vs. Long-term Orientation No urgency to make decision by some arbitrary deadline Will use time deadlines (e.g. flight schedules, meetings) as a negotiation tactic, e.g. requesting changes very late in the game in areas in which they wish to gain an advantage The process is appreciated Decade-long planning

33



34

Monochronic vs. Polychronic Monochronic

Business Norms by Lens: Time

Time measured by 60 minute clock Clocks, agendas, calendars, and deadlines determine when things get done Time is viewed as a limited commodity that must be carefully managed People are expected to do one thing at a time, and dont tend to tolerate lateness or interruptions

35

Time Orientation Polychronic


There is plenty of time. It flows from the infinite past, through the present, into the infinite future Time is event driven, not schedule driven Relationships and immediate needs usually determine when things get done

36

Time Orientation Polychronic


Punctuality is not as important as in monochronic cultures; it is acceptable to interrupt someone who is busy A manager in a polychronic culture typically has an open door, a ringing phone and a meeting all going on at the same time In meetings, people tend to speak at the same time (time is simultaneous)

37



38

Relationships in South Korea Extremely interpersonal

Business Norms by Lens: Group Dynamics

Relationships & trust is more important than business potential No cold calls always be introduced by a 3rd party Reciprocity is very important for respect and trust Be ready to entertain and be entertained

39

Business Entertaining in South Korea

40

In Conclusion

Solidify your cross-cultural competence

Top-Rated Business Oriented Cross-cultural Certification Program

Distinct Skills and Competences to be Successful in International Business

In Conclusion

Strategic Alliance Partners for Global Execution

42

In ConclusionAre you prepared to truly leverage the power of culture to optimize your bottom line?

Universal Consensus performs both as an external resource and internal advisor. We are willing and Acquisitions International Mergers to be present at an initial consultation, without cost to the client

youtube.com/universalconsensus

facebook.com/Univconsensus

twitter.com/#!/UnivConsensus

driving profit across cultures with bmia™

Documents

marketing marketing

marketing branding

marketing euro disney

marketing glocalization

marketing importance

successful business

ps of marketing

internationalsales marketing