How brands adapt to different markets
How to localise your offering like these 3 major companies.
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Operating a global presence in today’s diverse marketplace means seamlessly adapting your brand in order to appeal to the specific preferences of your desired regional demographics.
Expecting a ‘one-size-fits-all’ approach to work across multiple countries and cultures neglects to acknowledge the differences in trends, priorities, beliefs, and outlooks which occur between locations. Such an approach may result in your brand failing to make a splash in foreign markets.
How should you prepare to adapt your brand for foreign markets?
Conduct market research
Get acquainted with local preferences and expectations from your product and marketing strategy.
Extensive market research allows you to practice cultural sensitivity, ensuring that the tone and content of your marketing strategy aligns with local standards. It also involves studying your in-country competitors and assessing how best to promote your offering in light of the pre-existing options.
Localise your offering
To localise your product or service means adapting and adjusting your offering to meet local standards and expectations when seeking to promote it in a new location.
Doing so allows your business to blend seamlessly into the local marketplace, therefore giving it the best opportunity to stand out for the right reasons - i.e. for its unique selling points - rather than for incorrect judgement or failure to understand regional nuances.
When adapting your product for a foreign market, there are four distinct forms of adaptation to consider.
Tangible adaptation
This refers to physical changes made to your product, to adapt it to a new marketplace. For example, alterations to packaging or updates to the imagery used. Tangible adaptations can be made to adhere to local regulations, as well as to appeal to local consumers.
Intangible adaptation
This means updates to your product or service which are not tangible. For example – updates to branding or slogans to better fit your desired market, requires changes to non-physical attributes.
Price adaptation
You will need to adapt the cost of your product or service according to the local economy of the region in which you’re seeking to operate.
Promotional adaptation
When seeking to promote your product to a new audience, you will need to update your marketing strategy to appeal to the local culture and norms.
Developing your marketing strategy
Adapting your product or service to appeal to a new market is one thing. However, getting the word out about your offering in a way that communicates strategically with your new audience is arguably even more important. After all, it is via your marketing strategy that you stand to win the greatest number of clients or customers.
Your extensive market research should heavily inform your promotional adaptation in your marketing strategy. Keep in mind local perspectives and interests, to have the greatest impact on the consumers in your chosen region.
With all this in mind, let’s examine three businesses that have successfully adapted their brands to appeal to their desired marketplaces.
Three brands that have successfully adapted for foreign appeal
IKEA
Swedish homeware giant IKEA operates stores in over 50 countries globally. So, localising their business is crucial to its success. For example, in the United Arab Emirates (UAE), IKEA’s marketing strategy included showing its products situated in typical UAE homes. Meanwhile in Japan, where homes are typically smaller than many other countries, IKEA reduced the size of its products to better suit Japanese living spaces.
IKEA has 37 stores across China, including, as stated in this LinkedIn article, “…specialty formats like shopping malls, a city store, and experience shops and convenient storefronts closer to urban centres within cities signifying its expansive retail footprint tailored to the Chinese market.”
IKEA also utilises local Chinese social channels such as WeChat and Tmall, to connect with and appeal to Chinese consumers.
Honda
Japanese motor company Honda operates in over 150 countries worldwide, and is known to excel in adapting to different markets. Marketing Week notes that Honda always adjusts its tone depending on the area – both in ads and marketing materials, and on its regional websites.
Honda positions itself as a community brand in locations where this is seen as desirable. Marketing Week highlights that the Thai marketing tone is “more involved, sociable, and community-focused,” so Honda’s tagline in Thailand is: ‘Striving to be the company that society wants to exist’.
To appeal to the Japanese love of illustration and the ubiquity of cartoons within Japanese culture, Honda uses cartoons such as those of cats, to advertise in Japan. Whereas in the West, this would seem incongruous with motor advertisement.
KFC
Global fast food giant Kentucky Fried Chicken (KFC) operates in 145 countries and is the number one fast food choice among the populations of 83 of these countries. The company makes sure to adapt its flavours and ingredients to the norms of various locations, developing menus and menu items specific to certain countries and regions.
According to Forbes, key examples of this include the double down dog, a hot dog served in a chicken bun, available only in the Philippines; tiramisu in France; and the ‘Chizza’, using chicken instead of pizza crust, available across Asia. Rice porridge and congee are available on the KFC China menu, which features approximately 20 more items than the US menu.
Forbes states that KFC develops its country-specific menus using 18 food innovation teams – responsible for selecting local ingredients to ensure familiar local appeal, while still using the 11 standard KFC herbs and spices.
Expanding your business
When seeking to expand your business globally, the best way to ensure success is to engage the services of experts.
Mauve Group has over 28 years of experience supporting businesses to enter foreign markets – providing them the best possible chance to grow and excel in these new locations, by advising on market entry strategies, local employment regulations, local salary and benefits expectations, immigration policy, and more.
For more information on how Mauve Group can help you to achieve your goals and take your company to the next level, contact our team of experts today.
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