A Study Of Cultural Barriers In Establishing Brand Names In China

A Study of Cultural Barriers in Establishing Brand Names in China

The interest on cross-cultural marketing is becoming increasingly important due to global trade, with a growing focus on the Chinese market. The purpose of the study was to report the problems and issues encountered by a large Australian beer company trying to sell a product in China. The study examines brand establishment, loyalty and longevity in a different cultural setting. It also identifies marketing differences between the Australian and Chinese cultures. Identifying some of these trends may assist other multinational companies to establish and sustain products in a foreign market, particularly in China.

Foster is the largest beverage multinational company in Australia. It is also one of Australia’s largest companies to invest in China. As a beer manufacturer, Foster has much competition in a market that is directed by customer preference. For that reason, it is important for a company to focus on the customer’s preference to sustain success in a foreign market. It is suggested by the authors to investigate key cultural values in order to understand culturally different consumers.

It is proven that a well-developed marketing strategy plays an important role in the company’s success. It is important to understand the central values of Chinese cultures in order to satisfy their needs as customers. A major issue for a researcher is to understand the consumer’s integrated role in the family. In the past, Chinese tradition was such that children purchased alcoholic beverages for visiting parents. The effort was to buy traditional Chinese brands that their parents were familiar. Modern traditions are changing in that the parents are buying drinks that their children prefer in order to encourage them to visit them more often. This changing trend in purchasing modern international brands leaves a lasting influence on sales. What used to be marketing focused on traditional social relationships, the trend is changing to the younger mentality, such as modern image, youth, sports, and affordability.

In the past, Chinese consumers were unable to choose products that they wanted or needed. It was the choice of the government to decide which products were offered to the public based on economic strategy. Therefore, when international merchandise became available, personal experience did not play a role in making a decision. The main goal for the marketing group was then to educate the consumers in order to establish the brand name and loyalty. The development of the brand name helps to create product association and identity.