Abstract
This chapter complements the theoretical underpinnings put forward in the previous sections of the book with actual business practice, analyzing case studies of firms that have been confronted with cross-cultural marketing issues and illustrating how they were able to cope with them. Both multinational enterprises [Reckitt Benckiser, Cioccolatitaliani, Galbani, Beta (the real name of this firm has been changed to protect the firm’s and its informant’s identities), Campari, Gruppo Montenegro] and smaller ventures [Riso Gallo, Equiline, Pastificio Andalini, Alpha (the real name of this firm has been changed to protect the firm’s and its informant’s identities)] are analyzed in relation to how and why the firms have adapted/standardized their marketing mix. Each case places emphasis on one or more of the 4Ps. The empirical material supports the relevance of the theoretical frameworks put forward earlier in this book according to which distance has relative facets and therefore cultural distance must not only be understood in its objective dimensions but also in relative terms, with reference to the firm’s offer. Furthermore, case evidence is interesting from the point of view of the tension between a logic “based on cultural contexts” and one “based on personalization” (e.g., Equiline). Other case studies (Campari and Gruppo Montenegro) illustrate how these renowned Italian multinational firms in the food and beverage industry could approach the American market.
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Notes
- 1.
The interview protocol is provided as an Appendix to this chapter.
- 2.
The OECD defines SMEs as firms with fewer than 249 employees, further distinguishing between microenterprises (fewer than 10 employees), small enterprises (between 10 and 49 employees), and medium enterprises (between 50 and 249 employees).
- 3.
The case is drawn also thanks to the information contained in Fedotova (2015).
- 4.
In Italy, until the spring of 2008, Calgon was called Calfort.
- 5.
It is interesting to report that the firm had to deal with cross-cultural issues also in relation to its subsidiary in Russia. In 2011, the firm set up a factory there to produce mozzarella and Italian specialties like “burrata.” The setup of this facility required an in-depth commitment to train local staff for the specific production processes of Italian cheese: about 6 months of training and parallel tests on Russian production was run against the Italian production to ensure the quality of local production was in line with expectations. After the testing phase, the local Russian production was distributed in the market, which circumvented the Russian embargo against Europe that prohibited any cheese production in Italy from being exported to Russia.
- 6.
Beta has a price range from 2.19 to 3.64 Euro.
- 7.
The production of all Italian brands takes place in Italy (95%), with a few exceptions for countries like South America, where trade tariffs are too high, making exports unprofitable. According to the CEO, Italian brand manufacturing processes and ingredients make up the products’ identity, and therefore production must stay in Italy to preserve the uniqueness of tastes.
- 8.
Related to this, a new division was established in the US dedicated to the management of the high-end-segment brands to be sold to hotels and luxury restaurants.
- 9.
This case study had been adapted and translated from Magnani, G. (2019). “Comunicazione interculturale di marketing,” In Zucchella A., and Magnani G. (Eds) Customer centric organization e comunicazione. Attivare il brand nell’era digitale, Franco Angeli. It was further developed with the most recent and ongoing activities of the firm, thanks to a further interview with Equiline’s marketing manager.
- 10.
Puglia region produces about 20% of the Italian national production and boasts a very long pasta tradition specialized in the processing of semolina pasta. For this reason, Andalini has chosen to maintain its production in this region, as the key to express the tradition of the territory in its products.
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Authors and Affiliations
Appendix: Semi-structured Interview Scheme
Appendix: Semi-structured Interview Scheme
Preliminary Information
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Year of foundation
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Vision
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Mission
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Total turnover (latest data available)
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Number of employees
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Position of the interviewee
Strategy and Objectives
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What are the target customers?
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Who are the main direct and indirect competitors?
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What was the strategic process that led to the current setting of the company’s marketing strategy/heritage?
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What medium- and long-term goals does the company want to reach through its marketing strategy?
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On which symbolic values does the company’s marketing rest?
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What is the firm’s marketing mix in the domestic market?
Internationalization and Culturally Distant Markets
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In how many and in which foreign countries do you operate?
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What is the export intensity?
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When was the first entry into foreign markets with your main product?
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What is (are) the most culturally distant country(ies) in which you operate? Which are the most similar, from the cultural point of view? Why? Which are the most culturally distant? Why?
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Do you think that culture is a critical factor in the success of the internationalization of your product(s)? If so, how and why?
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Do you make any preliminary analyses about the cultural aspects of a specific target country before approaching it?
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With reference to the most culturally distant country(ies) mentioned, has your company developed any relationships with local actors such as suppliers, distributors, universities, local government, or other local institutions that have been somehow useful in co** with cultural distance?
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What are the target segments in the most culturally distant country(ies) mentioned?
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Who are your competitors? How does the brand aim to position itself in relation to them? What are your unique value proposition characteristics compared to your competitors?
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What is the mode of entry in the culturally distant country(ies) mentioned?
Marketing Mix in Culturally Distant Countries
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How have you planned/do you plan to approach these markets in terms of marketing activities?
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What is the firm’s top product/service in which you are investing more in the most culturally distant country(ies) mentioned?
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Is there something that can be easily standardized?
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Are there any reasons that prompted the company to modify the “4Ps” of the marketing mix to enter that country(ies)? If so, which features require more adaptation and in what respect?
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What is your price positioning in comparison with that in the Italian market and local competitors?
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How do you reach your target?
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How much investment in market learning is the firm undertaking with respect to adaptation activities?
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Does the firm leverage previous experiences/on know-how related to previously entering other culturally distant markets?
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Magnani, G. (2022). Managing the “4Ps” in Culturally Distant Countries: From Theory to Business Practice. In: Marketing in Culturally Distant Countries. International Series in Advanced Management Studies. Springer, Cham. https://doi.org/10.1007/978-3-031-04832-6_5
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