You have been hired as an independent international marketing strategist by a leading consulting firm &have been asked to prepare a brief research based report with unbiased feedback, suggestions, strategies& valued opinion on the following three companies that previously had international marketing fallouts in the below mentioned countries.
When providing your valued suggestions, please do mention what strategies you would have work with? (Note: Cultural & Political implications are of key importance when it comes to launching a brand in an international market- you can refer to the chapters covered in class so far as well).
1. Nestlé in Africa
Accused of aggressively marketing its baby formula in impoverished markets where clean water was notreadily available, which caused children to be sick, Nestlé was hit with a boycott that started in 1977 andcontinues to this day in various regions around the world. "They went in and tried to convince people thatthis was the modern thing to do. They (Nestle) assumed there would be clean water, when there wasn't any,and the natural method would have been perfectly fine. Some say it was the wrong product in the wrongmarket at the wrong time. What is your perspective & why?
2. BP in the Gulf of Mexico
The 2010 oil spill was the largest accidental marine oil spill in the history of the petroleum industry, causing extensive damage to wildlife habitats, as well as local fishing and tourism industries. The oil and gas industry is unusual in that it's global - cultural differences don't have much impact except at the retail level. So, while the U.K.-based company followed the advice of experts in applying the same standards in its offshore operations as it did to its domestic ones. Was this the right strategy?
3. Home Depot in China
The U.S. DIY giant entered the Chinese market in 2006 and opened 12 stores before they realized that most Chinese people don't like to do it themselves. The company closed its last seven Chinese stores in 2012, absorbing a $160-million after-tax charge. Although China is in the midst of a huge building boom, it doesn't have the same implications as in North America. And it's not just that labor is cheaper in China. All those new apartment complexes and planned communities don't need to be renovated yet. And then there's the culture, did the culture played a major role in this fallout?