Our Blog Pair 12, Mac Jones, has been tasked with writing about companies that have displayed good International Market Communications. Professor Myhur Slides have laid out five categories that companies need to work on for successful international marketing. The categories are Global Advertising and Culture, Setting the Global Advertising Budget, Creative Strategy, Global Media Decisions and Advertising Regulations. For each category we will choose two companies and their approach to these strategies. This blog post will look at how Walmart has successfully integrated their Global Advertising and.
The main issue that companies face when trying to enter a new market is breaking the language barrier. If a company has translation errors through carelessness in translation and not understanding different meaning of words. If a company does not perform their due diligence in a new market, then the local customer base will take it as an insult to their culture and will not be interested in giving them their business. Walmart is a discount retailer chain founded in Bentonville, Ak in 1962 and has grown to be the largest retail corporation in the world with more than $400 billion in yearly sales. Walmart first entered the international market in Brazil in 1995, and even though the company has seen some international failures, they have had many successful ventures. The company has seen success in Central and South America, China, the UK and Africa and the corporation currently operates in 27 countries with over 60 different names for the stores that they opperate
In places of success, Walmart has been able to break the language barrier by adopting different names for their stores. In Mexico, the companies locations are all named for the local Spanish language, the stores range from super centers to smaller bodega style stores and are known as Bodega Aurrera, Mi Bodega Aurrera, Bodega Aurrea Express and Walmex, all of which are operated by the Walmart brand.
Even though the Language barrier is not as big of an issue for Walmart in the United Kingdom, local residents of the UK are particular about their product. Walmart had to be careful when entering the market. To combat this, Walmart purchased a local retailer, Asada, in 1999 and has operated under this brand since. This strategy of purchasing already existing brands has served the company well in their global advertising and integration of product into new cultures.
The company had initial success in Africa through the acquisition of MassMart holding in 2010 which gave them 442 locations in South Africa and they operate under many different names including Game, Game Foodco, CBW, Builders Express, Builders Warehouse, Rhino among other names. This strategy of international assimilation of already existing companies has served the company well along with their companies that operate under names with the local language. Walmart also operates stores in Botswana, Zambia, Namibia, Ghana, Lesotho among others. Throughout their international expansion, Walmart has displayed the ability to adapt to cultural barriers by purchasing already existing stores and continuing the brand, which has led them to keep cultural barriers of an American corporation coming to a new local market at a minimum.