Warren Buffet must love Heinz Ketchup - like the Rest of the World!

This is big news for food manufacturers and people who love Heinz - America’s Favorite Ketchup.  Berkshire Hathaway and 3 G Capital has acquired Heinz. Buffett continues his strategy of investing in food companies like Burger King and now Heinz. Heinz will continue to make Pittsburgh its global headquarters. Thinking about global markets? Heinz posted a 22 percent profit due to its emerging markets expansion.

Heinz global websites  are a great indicator of how and where to market to increase profits. Heinz sells 650 million bottles of ketchup a year – helping to make Heinz the most global U.S. food company.

Heinz has one basic recipe for its ketchup but flavor can vary depending on the country you are in. Ketchup users in Canada, England, Australia and Venezuela like their ketchup a bit sweeter than ketchup users in the U.S. Mainland Europeans, like a bit spicier ketchup. Heinz also makes ketchup with balsamic vinegar and introduced a new flavor with jalapenos.

Long ago, Heinz recognized they captured and saturated the U.S. market and needed to look globally  for new consumers. Emerging markets are a prime examples of where to find untapped markets, sales and new consumers. Manufacturers can watch the movement of this global giant to guide them on what can happen using a global vision. Are you ready for +22% growth?

Which emerging markets are showing great promise for food manufacturers? India, China, Malaysia, Vietnam are Asian countries whose population is growing faster than their food production. This translates to new markets and increased profits for food producers.

Researching your new market will ensure a successful venture. We can help with strategic cultural marketing, localization and translation tools. Check out our website, www.allcleartranslations.com. We list resources that can help like the U.S. Commercial Service, The State of PA’s, Center for Trade Development, Office of International Business Development as well as our experts on staff.

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Best Wishes,

Linda Richardson

President

Are You Creating Your Global Opportunities?

Dunk In The Dark And Create Your Opportunity!       By Linda Richardson

Oreo took quick steps to take advantage of a power outage at the 47th Super Bowl. This unforeseen emergency was a nightmare for many behind the scenes workers. The power was back after over 35 minutes in the dark and the teams played on. Life continued, the Ravens won and blood pressures returned to normal.  How do you combat an interruption or misstep in business? 

Oreo tweeted a great message "You can still dunk in the dark". Over 14,000 people re-tweeted this message during the power outage.  An unforeseen problem for the Super Bowl producers was a marketing hit for Oreo. Marketing professionals sometimes must make speed of light decisions to help their brands grow or worst case scenario deal with a localized misstep in branding. This can work but when entering new markets; calculated strategic research on the culture you are entering will equal a successful new market campaign, greater sales and increased Brand awareness.

Examples of inadequate information to enter new markets:

Best Buy thought China was a great emerging market for their brand. Best Buy targets upper middle income young professionals to sell their electronics to. The Chinese are used to bottom dollar electronics. Best Buy came into the market with higher prices than local electronic stores. They were not able to "sell" their value as a big box electronics store. Chinese professionals worried they were paying too much for their products. The value of in-house expert salespeople, geek squad expert repairs in store, and maintenance programs were not seen as enough to justify buying at Best Buy.

Mattel closed their flagship Barbie store in Shanghai two years after opening in 2009 and investing 30 Million to enter that market. How could Barbie fail in China? Better cultural research could have been done. Barbie is just a doll in China. The Chinese view femininity as more than fashion and beauty but strong and caring. The Chinese society is not centered on individualism but community/family oriented with strong family values and sense of purpose. What purpose does Barbie work toward? Also, the Chinese look at the educational value a toy will add. Barbie did not fulfill that value to the Chinese.

Localization is taking a brand or product and making it fill the new market's need. Mattel localized Barbie but the Chinese were not interested in another Chinese doll when they had other less expensive choices. Steps like keeping Barbie as an American doll. Introducing Barbie into existing toy stores and selling an American cultural icon beside other Chinese dolls on a shelf would have better positioned Barbie for acceptance and increased value.

To move successfully into a new market, research must be done first. Cultural marketing research done by companies like All Clear Translations can help a company determine whether to enter a market, when and how to position a brand and who will buy that product.

Some brands need to localize their message and product. Other brands like Barbie and Apple can open doors based on their uniqueness.  Even Oreo had to localize to sell their cookies into Asia. Research everything from how your new potential customer buys, their tastes, hobbies, what is trending in that country or region and where they prefer to shop. Missteps like the ones Mattel and Best Buy made can cost companies millions of dollars, their reputation and image. Worst yet, it gives competition a clear path to your new market.  All Clear Translations can help you make an educated strategic decision on moving forward to grow in sales in new global markets. Your success will not happen with a dunk in the dark. Don’t miss the chance to build your business by growing in emerging markets!

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