top of page

How culture impact companies and its product?

Culture affects everything we do. This applies to all areas of human life from personal relationships to conducting business abroad. When interacting within our native cultures, culture acts as a framework of understanding. However, when interacting with different cultures, this framework no longer applies due to cultural differences.

Products are usually designed and marketed for local customers. When a product is then marketed in foreign countries, the same local advertising campaign will be ineffective. It is therefore critical to advertising campaign that an understanding of a particular culture is acquired.

Let’s see case studies of companies that show how culture in different countries affect them.

McDonald’s

  • McDonald's is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries across 35,000 outlets.

  • You may think you know McDonald’s menu like the back of your hand? Think again. Because McDonald’s menu is different around the world. And here are some menu items you have probably never heard before.

India

Chicken Maharaja Mac and McAlooTikki

(vegetarian burger)

Mexico

Desayuno Especial Mexicano

(Spicy scrambled eggs, sausage and English muffins)

Thailand

Pineapple Pie and Corn Pie

Brazil

Pao de Queijo (Traditional Brazilian cheese bread)

Portugal

The Peasant Soup (soup with kidney beans, ham, pasta and olive oil)

Italy

Pizzarotto

  • In conclusion, McDonald’s is a very good example of company that really adapt their products to suit different cultures in each countries. They know that in order to be successful in the market of each countries, they must understand the culture in that society and they must adjust their products to fit in these culture. As can be seen from its products that each one really represents the unique culture in each countries.

Kellogg’s Corn Flakes

  • Kellogg Company is an American multinational food manufacturing company headquartered in United States. Kellogg's produces cereal and convenience foods, including cookies, crackers, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles, and vegetarian foods.

  • When Kellogg’s company came into Indian market, its initial offerings included corn-flakes, wheat-flakes and Basmati rice flakes.

  • Kellogg’s products failed in the Indian market, despite offering good quality products and being supported by the technical, managerial and financial resources of its parent. Kellogg’s knew it will be difficult to get Indian customers to accept its products hence it relied heavily on the quality of its crispy flakes. Indian liked to boil their milk and consume it warm, they also like to add sugar to their milk. But Kellogg’s flakes made for cold milk and if Kellogg’s flakes will be put in hot milk, it will become soggy and won’t taste good. Also, the rice and wheat versions did not do well because sugar could not easily dissolve in cold milk which made it not sweet enough for the Indians. Therefore Kellogg’s products did not suit Indian breakfast habits.

  • Main reasons for its failure

  • Analysts believe that the major reason for Kellogg’s failure in the Indian market was the fact that the taste of its products did not suit Indian breakfast habits. Kellogg’s didn’t study about the Indian culture at all and when Kellogg’s first launched Corn Flakes in India, it was like launching a Western product attempting to appeal to Indian tastes which results in a total failure.

  • Pricing is believed to play a dominant role in the demand for any product but Kellogg did not share this position and this affected the demand for its products. Kellogg products were clearly more expensive than the product of its competitor.

  • In summary, Kellogg’s is an example of company that didn’t consider the culture when they enter the Indian market. So their products failed because they don’t match with the culture and preference in Indian market.


bottom of page