Page 146 - GLOBAL STRATEGIC MARKETING
P. 146

charcoal-grilled chicken, which appeals better to local tastes, and was
                     already easily available.


               •     Misdirected market research: A US soft drink company conducted
                     research  just  in  the  urban  area  in  Indonesia  to  determine  market
                     potential.  After  launching  the  product, the company  found  out  that

                     there is a big difference between urban and rural areas in Indonesia.

               •     Failure  to  appreciate  market  differences:  The  Cummins  Engine
                     Company  encountered  sluggish  sales  of  its  diesel  engines  in  the

                     European market. Unlike the US market, the European market was
                     highly integrated, with truck manufacturers making their own engines.
                     This created a very difficult competitive environment in which to do

                     business.


               •     Inadequate market research: When Dasani entered the UK market
                     with its purified bottled water it did not undertake sufficient research

                     to find out the different lifestyle habits of UK consumers who prefer
                     spring and mineral water rather than purified water; especially for a

                     lifestyle choice.

               •     Failure  to  appreciate  cultural  differences:  The  preparation  of
                     coffee plays an important role in the French household. Chase and

                     Sanborn met considerable resistance when it attempted to enter the
                     French  market  with  its  instant  coffee.  Market  research  taking  the
                     cultural  aspects  of  coffee  drinking  into  consideration  would  have

                     helped the company to appreciate the importance of the preparation
                     of coffee and how deeply ingrained it is in French culture.



               5.3  Linking international market research to the decision-making
               process


               International marketing research should be related to decision-making in
               a  company.  Most  international  companies  conduct  marketing  research
               (either  primary  or  secondary  research)  before  becoming  involved

               overseas. Informed decisions about entry and expansion in the overseas
               market as well as the methods of distribution need to be made. The main
   141   142   143   144   145   146   147   148   149   150   151