Culture Failures Way of Brand Failures

Brands operate on a global scale. Brand names such as Nike, Coca-Cola, McDonald's, Gillette, Adidas, Disney, Marlboro, Sony, Budweiser, Microsoft and Pepsi are now recognized across the world. The dismantling of trade barriers, combined with the rise of global communications technologies such as the Internet, has meant that companies can expand into new markets faster than ever before. However, many companies have confused the era of globalization with an era of homogenization. If they have had success with one product in one market they have assumed they can have equal success in another. All they believe they have to do is set up a Web site in the relevant language, run an ad campaign and set up a similar distribution network. What they forget to understand is that there is more to a country than its language, currency or gross domestic product. The cultural differences between, and often within, countries can greatly affect the chances of success for a brand.