METHODOLOGY DATA COLLECTED Primary sources: For primary data we interviewed the manager of Mc Donalds in the Connaught place.

. He provided us with the information on the marketing strategies of Mc Donalds in India. Also he was able to give us a little information on how Mc Donalds marketing strategies differ in other nations from India.

Secondary sources: The data was collected from the secondary sources. The main secondary source was the literature collected on cross cultural marketing and the marketing efforts of these companies and Companys website.

ANALYSIS OF THE FINDINGS

Barriers of cross-cultural communications

2.1 High level of ethnocentrism Ethnocentrism comes from the love for ones own country resulting to reluctance to buy foreign products. Ethnocentrism is one of the elements of a framework for intercultural disposition . However, unlike other elements of cross-cultural attitudes, high level of ethnocentrism is viewed as a barrier that multinational companies must overcome entering a new market. Hence, despite the high extent of global sales, McDonalds may encounter difficulties in promoting fast-food culture in Asian countries like China , Japan or Vietnam where traditional foods are a pride and integral of national cultural values. Furthermore, ethnocentrism exists not only in consumers mindset and attitude towards foreign products but also in the perception of foreign entrepreneurs themselves. According to Gladstone , there are a number of the US businesses are resistant sending their people abroad for international training because of the existence of ethnocentrism within the corporate culture. Illusion of control

In process of marketing multicultural communications, this paper argues that the proper attitude and respect of transnational corporations towards cultural value of host countries are said to be much crucial to gain acceptance form local customers. According to Cummings, the greatest barrier to cross-cultural communications is the illusion of control that is illustrated by a number of characters like impatience, arrogance or misconception that the rest of the world is a slightly difference vision of ourselves. As Americans are thought to be egocentric or personal-oriented or they are characterized by inherent biases of individualism, superiority that do not fit the nature of global thinking or cross-cultural thoughts . As a result, American-originated companies, including McDonalds, inevitably face much negative reaction from customers in host markets. The negative biases against American businessmens low level of cultural adaptation can be seen even in European countries where there is low degree of schychic distance in comparison with the United Stated of America. For example, Americans executives are complained by their European counterparts as people who do not know how and when to eat and drink properly; or they do not know evething about European history; or simply address European counterparts by their first name. Obviously, McDonalds, like other US enterprises, essentially needs to set up crosscultural communications that stand guard against the delusion that such communication has already occurred Cultural distance Cultural distance is concerned with the extent of difference between the senders and the receivers in perceiving and interpreting messages . It means, the closer and more similar schychic distance in culture between two countries is, and the more similar their repertoire in communication is. Certainly, some cultures are said to possess more difficulties in cultural communications than others . That is, a Big Max product of McDonalds is obviously more culturally acceptable in Germany and in India as the USA and Germany are more similar in cultural values than the USA and Asian countries . Because of the cultural distance, McDonalds may save more money from a standardized advertising program in Western European countries that that from a localized advertising program in Asian countries as the overall usage of standardized messages was more workable for advertisement used between Western markets than for massage transferred between Western and Eastern markets.

Cultural sensitivity towards advertising As advertising perception plays a significant role over consumers intention to resist the products , and as there is no opportunity for the seller to correct mistakes when advertising images are received from the buyers any negligence of cultural values of advertising massages may lead to bad response from local audience. For example, foreign actors face linguistic boundaries in speaking Japanese on national television commercials because many Japanese people regard these gaijin tarento as anomalies. In order to avoid any unintentional abuse of cultural norms and values, multicultural companies need to a similar message is accepted in one culture but is unaccepted in another. For example, while high-context culture is more strait-laced about sexually intimate matters, low-context is more liberal towards sex theme. Consequently, an advertising video clip on television using sex appeal is acceptable in US but it entirely is seen as a taboo in China or Vietnam . Differences in the four cultural dimensions Hofstedes work on cultural differences in intercultural comparison in areas like management, social psychology, anthropology, sociology, marketing and communication. Accordingly, four main cultural dimensions comprise power distance (i.e. social desire for hierarchy or egalitarianism), individualism (i.e. societal preference for a group or individual recognition); masculinityfemininity (i.e. gender role), and uncertainty avoidance. A lot of multicultural communication barriers between the seller and the buyer can be illuminated by differences in their position on these four cultural dimensions. For example, businesses operating in the South East Asia found that power distance structure of the society does not permit personal contact with any of the local authorities or the individualism-collectivism dischnomys influence on business communication is blamed for premature termination of the assignment. 3. Factors of cross-cultural communications 3.1 The diffusion of consumer culture According to Solomon el al., global companies apparently benefit from increasing diffusion of consumer culture. Obviously, in todays consumption market, consumers in every country worldwide are inclined to accept import product from other countries as they are willing to absorb any culture they like For example, consumers like using products of Coke, Pepsi or

McDonalds because these global corporations images gives them positive assurance, psychological reinforcement or social acceptance. 3.2 Positive cross-cultural attitudes According to Bush et al. the success of cross-cultural communications is primarily attributed to intercultural disposition including following factors. Empathy: Ability to understand and share with others thoughts, feeling and experience. It said that a person will be more likely to be multicultural effective in communication if he/she knows how to empathize with others Worldmindedness : Refers to extent of willingness to accept new ideas, new cultures. Consequently, the worldminded marketing people are thought to be in better position to build up a good relationship with a buyer from a new cultural group. Attribution complexity: refers to accuracy in comprehending differences and similarities between one culture and another. Hence, these factors of positive cross-cultural communications are thought to make up communication competence that ensures the success of marketers in communications with culturally diverse customers from different cultural background. 3.3 Cross-cultural training Cross-cultural training involves increasing the ability to communicate with people form differently cultural background. According to Tung, training for marketers working abroad involves language training, environmental briefings, and cultural specific training. In terms of corporation perspective, the cross-cultural training is easier to be implemented in corporations with lower level of perceived ethnocentrism and the opposite. As discussed in barrier section, intercultural training is significant for the global marketing communications of McDonalds due to following reasons. McDonalds is a typical American company and as Americans are globally thought to be egocentric and personal-oriented. That is, McDonalds executives as well as sale force staff are essentially need to be trained how to ease this negative biases to gain more favorable treatment for local stakeholders.

McDonalds has hundred thousand chains supplying fats food in absolutely culturally diverse countries. Obviously, sale force people without training can not handle their tasks successfully in their daily communications with customers. 3.4 Adaptation strategies Consumers behave differently based on their different cultural background and they tend to highly appreciate marketing efforts that respect their cultural heritage. Therefore, this paper argues that adaptation is primarily significant in cross-cultural communications as opposed to standardization as stated by Fatt arguing that clients may be satisfied with similarity of products and advertising messages. Relationship building is supposedly very important in business-to-business communication and the way of this process performed is very specific depending on cultural differences of low-context or high-context nature; individualism or collectivism societies. For example, building relationship is known as old mate for New Zealand culture, Guanxi or friendship for Chinese, right connection for Indians or in Vietnam, people tend to get to know their counterparts as a person before setting down to business. Whereas messages are very explicit in a low-context societies and managers tend to go straightforward to business discussion, in high-context societies like Asian countries if you are not willing to take the time to sit down and have a cup of green tea, you have a problem. Therefore, although McDonalds engages in business-to-consumer market, the marketing cross-cultural communication application in relationship building is very crucial in establishing favourable relationship with other stakeholders government, local communities, outlets owners and media. Based on distinctive differences between collectivism and individualism cultures, advertising messages are said to be designed and presented in accordance with cultural values where messages are in existence. For example, in order to demonstrate effectively its slogan I am lovin it through visual advertising messages, this paper recommends that McDonalds may take advantages of individual images of celebrities to promote McDonalds brand image in cultures that are characterized by individualism. In contrast, a visual message that displays a happy image of family enjoying themselves with Big Max is said to be very appropriate in a collectivism cultures.

IMPACT OF THE MARKETING EFFORTS ON OVERSEAS CULTURAL VALUES AND TRADITION THROUGH MARKET RESEARCH /CONSUMER RESEARCH/ COMMUNITY RESEARCH.

-company name awareness.

-company image in the community. -company acceptance level in the community. -company's products' name awareness. -company's products' image in the community. -company's products' acceptance level in the community. -community's negative comments -community's hostility against the company -Resellers reaction to the companys products. - Companys products sales -Competitive products sales

McDonalds serves less than 1% of the world's population each day, so it has been able to expand rapidly overseas without running the risk of market saturation. There is tremendous global opportunity for the McDonalds brand to expand. McDonalds is growing at the rate of between 1 000 and 1 500 restaurants a year and by five to 10 new countries a year. It employed 1- million people in 1996 and this has to grown to as much as 2-million in 2000. McDonalds conducts a battery of market research analysis before expanding into an area, which is the determination between success and failure in an international venture. In countries where customers prefer something else, McDonald's incorporates it in the menu. So we have a pommefrite sauce in Belgium and Holland, and a special mayonnaise based sauce in Iceland. McDonald's is proudly American. Yet it doesn't look down on the markets of other nations. It resects their cultures, their beliefs and likings. It caters to people's needs in a wholesome manner. Naturally, the customers identify with it and visit it's outlets again and again.

China: McDonalds management has taken an interesting approach of doing business in China which is far different from the way McDonalds restaurants are managed in the

United States. McDonalds has managed to succeed where most Western-based MultiNationals have failed. One primary reason as to why many Western Multi-National Corporations have failed resulting in the lack of appreciation for the Chinese culture. McDonalds have made major strides to adapt to the Chinese culture when conducting business in China. To begin with, locals manage all the McDonalds restaurants, which is very important when conducting business in a foreign environment. Many firms bring their own management to the foreign that is not very familiar with the culture, customs or traditions in China. It can be said that many business ventures are doomed from exception because of this fact. Another factor that worked well in McDonalds favor in Europe was the managements ability to allow Asian consumers to gradually twist the McDonalds company culture for their own purposes. In the United States the concept of fast food and people eating out for convenience is prevalent in our society, in contrast to Chinese society. In China, the McDonalds restaurants are more similar to the coffee houses in Seattle where people can socialize with their peers. Other key elements in business practices in the United States versus China are modifications in the menu and the approach in which McDonalds management overseeing the operations in China advertises. One of its appeals is the limited number of selections on the menu in contrast to that of the menu used in the United States. For example, in China McDonalds has met the demands of consumers by adding the teriyaki burger (a sausage patty on a bun with teriyaki sauce) to its menu. McDonalds has became so accustomed to the Chinese culture many of its customers do not realize it is an American-Based Corporation. The company has is being nationally responsive, which is a key factor in any plan for global expansion.

South Africa: In South Africa McDonalds has developed a very effective strategy, which is to serve customers where they eat, shop, and play. The idea is to focus on high profile, high populated, cites to penetrate. Interestingly McDonalds found that drive thru facilities perform much better than the McDonalds without. South Africa has a higher number of drive-troughs than comparable societies such as Australia and the United States. "The drive-through restaurant is very much our strong suit and gives us a competitive edge in South Africa, says Darryl Webb, Managing Director of McDonalds South Africa McDonalds will continue to focus on convenience locations such as shopping malls and other areas, including townships. Marketing efforts used in attracting people the McDonalds in South Africa focuses on people of all economic levels, from high- income areas such as Sandton to lower-income areas such as Old Fort Road in KwaZulu-Natal. The business is

doing well and in many cases exceeds the initial expectations in terms of turnover and profitability. McDonalds is setting the industry standard. In South Africa, the company has 90 branches spanning all nine provinces. It has 3000 staff in just 39 restaurants, most working for franchisees. Each new restaurant opening creates as many as 80 new jobs. McDonalds has invested R300- million in South Africa to date and will add another R200-million by the end of this year. The Company is using vertical integration as a means to enhance its productivity by acquiring Sun Systems software packages Vision XL and Vision Executive to make report writing more efficient, less time consuming, and user friendly. This helps McDonalds say effective maintain a competitive edge in the cutthroat world of business. Not only does the Vision Executive Program arm company decision- makers with the financial and analytical power to effectively manage and control the performance of their business, but also allows accountants to be more efficient. The capacity to personally access and analyze the data held in a SunSystems database enables fast identification of trends, problems and opportunities affecting the business. In combining these factors McDonalds bottom line should improve.

Brazil: Since McDonald's arrived in Brazil in 1979, many franchisees had a strong business selling Big Macs. Today, 21 years later and 500 stores, this certainty is shaken. Behind the lines of customers eager for a sandwich are Brazilian franchisees that are having a hard time financially. Brazil is McDonalds eighth largest market worldwide. McDonalds Brazil management team is most noted for its continued efforts to improve quality and customer satisfaction. The Brazilian Franchising Association (ABF) awarded McDonalds Brazil with the Franchising Hallmark of Quality. The prestigious honor is given to only 24 of the 863 companies that operate under the franchising system in the country . In addition to the Hallmark of Quality, McDonalds Brazil has received in 2000 three other equally important acknowledgements. Exame magazine, the countrys leading business publication, has chosen McDonalds as the third Best Employer in the country and ranked it among the ten best companies with Corporate Citizenship practices. McDona lds was also referred to as the fifth most admired company in the country by the renowned magazine Carta Capital.It's still possible to succeed, but the chance of bankruptcy, almost nonexistent in the past, has increased. According to an estimate made by franchisees that are in judicial litigation against the fast food chain, around 80% of the 152 franchisees

that own half of the stores in Brazil are having difficulty to make ends meet at the end of the month. The financial difficulty is a result of the devaluation of the Real in early 1999. Some decided to sell their business. Others decided to fight judicially against McDonald's. The majority seeks temporary discounts of the rent paid to the company while struggling to get back to the success they had in 1996. A bothersome fact is the background to franchisees dissatisfaction while they reduce costs; McDonald's has fast growth. When franchisee Henry Chmelnitsky, the first McDonald's franchisee in Brazil, discovered how the rapid growth was being conducted, he sold his two stores in Porto Alegre in 1998 and put an end to the marriage that had lasted 11 years. "I didn't agree with the direction things were taking", says Chmelnitsky. "It wasn't the relationship that I wanted" .

Saudi Arabia: McDonalds McDonald's Saudi Arabia closes five times a day for muslim prayers. McDonald's India offers aloo tikki and paneer. And it doesn't serve beef or pork at all. The Big Mac becomes Maharaja Mac in India . For vegetarians (a majority in India), there's an assurance of separate kitchen, utensils and cooks. So much so that in Ahemdabad (a predominantly vegetarian city), McDonald's is actually toying with the idea of opening an allvegetarian outlet. McDonald's in all Islamic countries doesn't serve pork, in deference to Muslim tenets of belief. Most people around the world like burgers with french fries and cola and that's what McDonald's serves. There are two restaurants that are located in the Holy City of Makkah that are quite unique. These restaurants are the only two (2) restaurants in the world that serves exclusively to Moslem customers. These restaurants are also the only two that are fully staffed with Moslem employees, from the Service Crew to the Restaurant Manager level . Through the efforts of Riyadh International president (Riyadh International Catering Corporation is a 100% Saudi national company and the franchisee holder of McDonald's International Company in the Central and Eastern Regions of Saudi Arabia., His Highness Prince Misha'al Bin Khalid Bin Fahad Al Faisal Al Saud, more than 50% of the products used are manufactured locally and in the gulf regions. This effort has improved the local industries and national economy.

D. SWOT Analysis

Strengths
It has a strong global presence and is considered as a market leader in both the domestic as well as the international markets. It is a global brand that owns 31,000 restaurants serving in 120 countries. Of these 31,000 restaurants at least14,000 restaurants are situated in the US. It uses economies of scale for reducing the cost, as its huge expansion diversifies the overall risk involved with the economic performance. They own an active childrens charity by the nameThe Ronald McDonald House. It takes steps in adjusting the Ingredients and product offerings in order to comply with the upgraded health standards deemed necessary by the USDA. It earns revenue by fast food sales as well as a property investor and a franchiser of restaurants. It has a firm real estate portfolio. It has branded menu items i-e Big Mac, Chicken McNuggets, which further promote McDonalds. It is recognized as one of the worlds most recognized logos. It is recognized as a socially responsible and community oriented firm. It adapts to the cultural differences regarding the region where the restaurant is set up. It has located itself in major airports, cities, highways, tourist locations, theme parks. It has an efficient food preparation style that follows the process in a systematic way. It takes food safety extremely cautiously. It was the first to provide the customers about nutrition facts.

Weaknesses : . It uses advertising that mostly targets children. . High employee turnover. . It has yet to accomplish going on the trend of organic food. . Price competition with the competitors resulting in low revenue.

. Lack of innovative products.

Opportunities : . It can adapt to the needs of the societies and undergo an innovative product line. . It can research ways to use green energy and packaging which will work as a part of their promotional effort as well as fulfil their social responsibility . . It can create new product offerings , Use mobile text messaging to offer services that appeal to consumers. . It can upscale some of its restaurants settings at luxurious locations to attract more customers . . It can provide optional items that are regarded to be the basis of allergy for some . Threats :
.Threats The recession negatively impacts the holding position of the firm regarding its revenue streams, even though they are quite diversified. Foreign currency fluctuations are regarded to be a major problem as it uses standard pricing for its food items. More restaurants that are increasing their food offering and declining the price. Health issues regarding the fast food chain. Heavy investments on promotional campaigns which decrease the gaining of market share. Some parents criticize the firm s cradle to grave marketing strategy that focuses on kids, who later on take it as a trend to their adulthood. Sued various times for unhealthy food, usually with addictive additives. Emergence of major fast food competitors: Burger King, Starbucks, Wendy s, Taco Bell, KFC. The expansion has made the firm vulnerable to the slow economies of the other countries.

The 4Ps

At this point the marketing mix is put together.

The product life cycle

Sales Time

Decline Maturity Growth Development Introduction

i. Product
The important thing to remember when offering menu items to potential customers is that there is a huge amount of choice available to those potential customers with regard to how and where they spend their money. Therefore McDonalds places considerable emphasis on developing a menu which customers want. Market research establishes exactly what this is. However, customers requirements change over time. What is fashionable and attractive today may be discarded tomorrow. Marketing continuously monitors customers preferences. In order to meet these changes, McDonalds has introduced new products and phased out old ones over time, and will continue to do so. Care is taken not to adversely affect the sales of an existing option by introducing a new option which will cannibalise its sales (trade off). McDonalds knows that sales of products on its menu will vary at different points in their life cycle as is illustrated on the graph to the right.
Page
Services Talking Point Apprenticeships Glossary I.T. Marketing Construction

Marketing at McDonalds
The type of marketing undertaken and the resources invested will be different depending on the stage a product has reached. For example, the launch of a new product will typically involve television and other advertising support. At any time a company will have a portfolio of products, each in a different stage of its cycle. Some of McDonalds options are growing in popularity while arguably the Big Mac is at

the maturity stage.

ii. Price
The customers perception of value is an important determinant of the price charged. Customers draw their own mental picture of what a product is worth. A product is more than a physical item; it also has psychological connotations for the customer. The danger of using low price as a marketing tool is that the customer may feel that a low price is indicative of compromised quality. It is important when deciding on the price to be fully aware of the brand and its integrity. A further potentially adverse consequence of price reduction is that competitors match the lower prices resulting in no extra demand. This means the profit margin has been reduced without increasing the sales.

iii. Promotions
The promotions aspect of the marketing mix covers all types of marketing communications. One of the methods employed is advertising, sometimes known as above the line activity. Advertising is conducted on TV, radio, in cinema, online, using poster sites and in the press for example in newspapers and magazines. What distinguishes advertising from other marketi ng communications is that media owners are paid before the advertiser can take space in the medium. Other promotional methods include sales promotions, point of sale display, merchandising, direct mail, telemarketing, exhibitions, seminars, loyalty schemes, door drops, demonstrations, etc. The skill in marketing communications is to develop a campaign which uses several of these methods in a way that provides the most effective results. For example, TV advertising makes people aware of a food item and press advertising provides more detail. This may be supported by in-store promotions to get people to try the product and a collectable promotional device to encourage them to keep on buying the item.
2008 McDonalds Corporation All trademarks are the property of McDonalds Corporation and its affiliates. Page
Services Talking Point Apprenticeships Glossary I.T. Marketing Construction

Marketing at McDonalds
It is imperative that the messages communicated support each other and do not confuse customers. A thoro ugh understanding of what the brand represents is the key to a consistent message.

The purpose of most marketing communications is to move the target audience to some type of action. This may be to buy the product, visit a restaurant, recommend the choice to a friend or increase purchases of the menu item. Key objectives of advertising are to make people aware of an item, feel positive about it and remember it. The more McDonalds knows about the people it is serving, the more it is able to communicate messages which appeal to them. Messages should gain customers attention and keep their interest. The next stage is to get them to want what is offered. Showing the benefits which they will obtain by taking action is usually sufficient. The right messages must be targeted at the right audience, using the right media. For example, to reach a single professional woman with income above a certain level, it may be better to take an advertisement in Cosmopolitan than Womans Own. To advertise to mothers with families, it may be more effective to take advertising space in cinemas during Disney films. The right media depends on who the viewers, readers or listeners are and how closely they resemble the target audience.

iv. Place
Place, as an element of the marketing mix, is not just about the physical location or distribution points for products. It encompasses the management of a range of processes involved in bringing products to the end consumer.

disney
Walt Disney overestimated the magic that was to be in introducing Europe's most lavish and extravagant theme park in April of 1992. The fiscal year 1992-1993 brought EuroDisney a loss of nearly $1 billion.

Mickey, a major promotion tool of Disney management did not create reason or attractio n enough for the European community, unlike at the sister theme park Tokyo Disneyland. European families found EuroDisney to be an over-rated promotion of American culture and lifestyle, contrary to what was seen by Disney's management as a family affai . In the r initial years of operation this led to an overestimation of expected revenue and audience figures. Advertising messages had been miscommunicated, emphasizing glitz and sizenot the rides or attractions. Disney remained unsuccessful in attracting customers just by

vigorous brand name promotion communicated through Mickey and his friends. Moreover, families were reluctant to pay hefty price tags on accommodation and entertainment needed to enjoy the attractions of the park. Disney failed to manage a healthy relationship with partner organizations in the host country, which most importantly alienated them from their number one ally, the French government.

Regional affairs in Eastern Europe and economic recession in the western half of Europe and Scandinavia contributed much to the poor performance of EuroDisney. Airfare wars during the period of time and disproportionate changes in exchange rate made spending for holidays in Disneyland, Orlandocheaper than a trip to Paris. Of greater consequence was the Gulf War, which statistically reduced travel to and around Europe. The next major even inline was the birth of new democracies in Eastern Europe. The 1992 Olympics in Spain marked another landmark event that shadowed fascination towards EuroDisney. The macro-

environmental scanning of namely, the political, the cultural, and the economic aspects of Europe had been grossly miscalculated.

Disney had to reinvent itself, European style.

1. To what degree do you think that these factors were (a) foreseeable and (b) controllable by either Euro Disney or the parent company Disney?

A company the reputation and size of Disney is allowed no room for mistakes. The stakes involved are in the billions of dollars. Complementary businesses like that of the hotel industry is reliant upon the success of this one theme park in Paris. Generous funds received from the government and private institutions would have to be made well of. Disney should be able to foresee the unforeseen.

In the international marketing task, mentioned by Phillip Cateora, we can identify marketing conditions as controllable and uncontrollable. The exhibit1 below details both controllable and uncontrollable factors.

Factors such as those mentioned above are not categorized as the unforeseen, rather the expected. Economics, politics, culture complemented with in-depth analysis of the 4 Ps follow the basic principles of marketing. Disney should have foreseen the changing

economic scene in France with the forthcoming European recession. The relationship with the local government should have been handled with greater care and delicacy, because of the size of the investment involved and ultimately, the number of jobs dependent on the success of the project. Culturally, Disney cannot force itself on another people, which in this case was the whole of the European continent. Disney promoted its product, the theme park, similar to that of Tokyo Disneyland believing Europe wanted their piece of Americana.

In the marketing sense, we speak of identifying the needs and wants of the consumer. The package presented by Disney to the customer met neither of these. Disney cannot control the environment! True success lies in adapting oneself to the surrounding culture, being marketing oriented is finding success in customer satisfaction. Disney fails on both counts.

International Marketing - Phillip Cateora, John L. Graham 10 th edition; pp. 622

"Cultures are dynamic and change occurs when resistance slowly yields to acceptance so the basis for resistance becomes unimportant or forgotten"2. Which means that on the part of the European community we are certain to see compromise, but over a period of time. Disney too has to reconcile with the environment it has settled in. We read in the case that Disney does ultimately mend its ways. Making room for continuous change is the best way to go about ones business.

If EuroDisney's strategic orientation is ethnocentric the model it follows will be as shown above. Indeed we understand from that this is not for all factors. Profitability and public acceptance can be seen as universal goals of organizations alike. We can question Disney's "top down" governance as having played a role in the misfortunes of EuroDisney. It could have been due to the lack of communication or formalization that is associated with the top down governance structure that led to the culture conflict. Ethnocentric marketing strategy dictates "product development is primarily to meet the need of the home market", as we understand Disney's promotion format clashed against this concept. We can say that

management at EuroDisney is mostly American bred. It may have been that managers at EuroDisney fell back on their "self reference criterion" to have misinterpreted European society.

Ethnocentrism, as did culture, played a conflicting role in the launch of EuroDisney. The Disney belief was that what it sells in the U.S. and Japan would sell just as well in Europe. A marketing mix was to be adopted similar to that of what was developed in other markets. The case indicates how the promotional strategy of Disney was more about self-glamorization, not about how Disney would affect the lives of the 30 million in the French surroundings.

"Ethnocentrism complicates the process of cultural assimilation by producing feelings of superiority about one's own culture and, in varying degrees, generates attitudes that other
2

International Marketing - Phillip Cateora, John L. Graham 10 th edition; "The Cultural Environment of Global Markets" - pp.106

cultures are inferioror at least peculiar"3.

I am of the opinion that it is the legacy Japan unlike, France, succumbed to

accompanying the Walt Disney name, the driving force behind the magic, which on association with a product generates rapid sales.

Disney's promotional firepower. Japan welcomed the taste of American culture; France on the other hand went nationalistic. Disney followed a domestic market extension concept, believing one universal product would be accepted in Europe with as much vigor as was seen in Japan.

A proactive marketing strategy would have been to carryout extensive marketing research. One definite outcome would have resulted in Disney employing a regiocentric orientation towards operation of EuroDisney.

2. How do you assess the cross-cultural marketing skill of Disney?

The cross-cultural marketing skill as practiced by Disney in Europe fell short of expectations from the entertainment giant. I charge the cross-cultural marketing skill of Disney as lacking cultural knowledge. On one count of, perhaps, having misinterpreted the data and

information retrieved during the environmental scanning of the elements of European culture. On second count of wrongly measuring the degree of cultural sensitivity and tolerance inhibited but the French towards American culture. As we now understand, the Europeans have to be "attuned to the nuances of culture so that a new culture can be viewed objectively, evaluated, and appreciated. Just because a culture is different does not make it wrong. Marketers must understand how their own cultures influence their assumptions about another culture"4.

3 4

International Marketing - Phillip Cateora, John L. Graham 10 th edition; "The Cultural Environment of Global Markets" - pp.106 International Marketing - Phillip Cateora, John L. Graham 10 th edition; "The Cultural Environment of Global Markets" - pp. 97

Toward the end being culturally sensitive, followed by open communication, increased cultural assimilation should assist in building an ever-lasting relationship with the Europeans.

5.a. Do you think success in Tokyo predisposed Disney management to be too optimistic of their expectations of success in France? Discuss.

The Japanese population is composed by a large number of younger people. Japan's home culture as I see it is in transition, influenced a great deal by the influx of American culture bought in through increasing trade ever since the post war era. Harley Davidson and

Hollywood have contributed much to the influx over the past decade. At the time, during the 80's, it seemed the right thing to do when Japan all over bought American culture in all forms. Japan created the ripe environment for Disney to enter.

Europe on the other hand, was part bad luck and part miscalculation. Management at Disney was of the opinion that success in Japan would be matched by success in Europe. The targeted European market consists of an older nationalist population. This being on of the more general observations, though one to which little heed was paid, may be attributed among other factors to why EuroDisney performed so poorly in its earlier years. Success in Japan proved so overwhelming that management treated both markets as equals. Disney was blinded of the implications for its actions.

5.b. Do you think the new theme park would have encountered the same problems if a location in Spain had been selected? Discuss.

The launch of EuroDisney in Spain would have been met with less criticism. Unlike the central and east Europeans, the southerners receive foreign culture with greater warmth. But once again Spain cannot change itself to what some may see as overbearing American pomposity. Moreover, EuroDisney is built to serve all of Europe not only Spain. Because Disney is in it for the long run, no room for miscalculations should be allowed.

International marketing is a function of culture, what you are able to do in marketing to a particular foreign product is shaped by the cultural variables of the country. Success for Disney to market its theme park internationally forces them never to over-emphasize the importance of understanding a foreign culture. A theme park in Spain as in any other part of Europe would face a varying proportion of, legal restraints, political risk, culture conflict, and economic disruption.

Professional analysis by the Disney marketing intelligence unit may reveal accurate data regarding macro and micro indicators of market size relevant to the launch of EuroDisney. Nonetheless, if a comparison is made with a Spanish city the odds will be against Paris.

Geographic conditions provide sunshine all year round, and milder winter temperatures. As a market Spain may attract potential customers from northern Africa and the Arab world. The local Spanish market is just as fruitful, in terms of, total population, density, and buying power as its French counterpart. As a member of the European Union, travel to the southern state already a tourist center in the Union; will yet provide more reason for the launch of EuroDisney. Unlike France, Spanish intellectuals will chorus little against American culture imperialism that has altered European myths and fairy tales and would sell them back to the Europe. The entry ticket should cover the cost of the Spanish sunshine, sympathy and service, unlike the rest of Europe.

6. Disney is considering expansion to other locationspick three locations and select the one that you think will be the best new location for Disneyland X.

Having turned around its operations in Paris, Disney is looking for a new business location. Shanghai (China), Dubai (United Arab Emirates), and Rio de Janeiro (Brazil), seem to me as appropriate choices, although I do place reservations on each.

China as an emerging market seems almost as an obvious choice. The population provides ample enough market for generating projected revenues. Disney can make a grand exposure to China's fertile market. The culture there is in transition welcoming western influence in all forms. Shanghai, as a financial and business center of (Mainland) China, may facilitate the raising of capital and local entrepreneur with crucial macro and micro indicators of market size and conditions.

Dubai is the major commercial business hub of the Arab world. Business horizons expand from the West Coast of the United States to the eastern Philippine archipelago. Business communities around Europe have created a stronghold here as a gateway to most of northern Africa, the Middle East and to a limited extent the Asian Subcontinent.

Rio de Janeiro is a cultural midway for Brazil, known for "fun in the sun" more than anything else is. Its interracial community and multicultural people present us a new face of South America. I propose Rio as alternative site, although I feel Dubai and Shanghai control the upper hand. Rio provides access to South America, and on the other hand is accessible by the rest of South America.

From the three cities mentioned above, I choose Dubai as my first choice. Apart from it commercial and business connotations, Dubai is seen as the portal not only to the minority communities from Europe, Asia, and the America's but specifically to the Muslim World of over one billion. The underlying opportunities are immense. Walt Disney is already a

recognized figure in households of the respective targeted families. The relaxed social and cultural atmosphere Dubai possesses over other Muslim states should not pose a threat to the continuity of business at "Disney Arabia". Dubai reports a GDP (gross domestic product) per head of US$15-18000, one of the highest figures on Asia. The trade balance remains in surplus with over US$500 million. The infrastructure boasts access to telecommunication facilities and transport by land, air, and water as state-of-the-art. The diverse ethnic communities level communication barriers between the Arabs and expatriates.

All in all Dubai possesses the right backdrop to promote the new "Disney Arabia" to a wider scope of people, both the conservative and the more liberal, the foreign and local. Lunching the new Disney subsidiary, is obviously not an overnight project, meticulous planning will be needed in defining the four P's as pertinent to the Arab world.

7. Given your choice of local "X" for the newest Disneyland, what are the operational implications of the history of EuroDisney described above for the new park?

Because of the initial failings of the EuroDisney in the first year of operation, steps will have to be taken by Disney to make sure things work out, right from the beginning.

International business brings along with it unexpected happenings. A cultural discrepancy most at times being the sole factor responsible. The knack possessed by managers to foresee the future shall dictate what Dubai holds for Disney. As mentioned earlier, one can never over-emphasize the importance and understanding of a foreign culture. Dubai as does most of the Arab world, practices a "high-context" culture, i.e. communication tends to be indirect, and hence the expressive manner becomes critical in delivering the message. The way

Disney presents itself to its Arab counterparts in transaction will reflect the sender's values, position, backgrounds, and associations in the business community.

Because of the size of the project, politics will most certainly play an important role in raising capital with favorable rates of interest. The provision of land, and favorable construction contracts for the theme park may unfortunately require the help of another type, "money politics". In context with the inaccuracies that occurred at EuroDisney we come up with a guidance list detailing what to do and what not to do.

i) ii) iii)

Be prudent in ones projections of revenue and expected attendance. Do not promote American imperialism. Arab American friendship should do better. Promote glitz and size but give reference to rides and attractions. Stress on the entertainment value of the theme park.

iv)

Relationship marketing should be at its best, with the government and other important stakeholders.

v) vi) vii) viii) ix) x)

Forecast every hint of change in the macro environment. Employee dress code should be perceptive of the local culture. Never assume! Find out whether it really is, then triple check. Prayer rooms are essential. Dubai and Disney go together. Promote one, promote the other. Family hour begins after eight in the evening!

These ten steps do not define the operation success at "Disney Arabia". They are certain to give only a flavor of what should be done so as not to fall in the same trap as that of Euro Disney. Disney should make room for change, good and bad, it should be receptive to what bring families together. Continuous improvement, or Kaizen, as the Japanese refers it to, will reduce glitches to a minimum. On the other hand we only learn by making mistakes.

Walt Disney Company s Strengths "I knew if this business was ever to get anywhere, if this business was ever to grow, it could never do it by having to answer to someone unsympathetic to its possibilities, by having to answer to someone with only one thought or interest, namely profits. For my idea of how to make profits has differed greatly from those who generally control businesses

such as ours. I have blind faith in the policy that quality, tempered with good judgment and showmanship, will win against all odds." Walt Disney (Disney Dreamer 2007). Walt Disney had many ideas that helped the Walt Disney Company gain the strength of having such a tremendous foothold in the market to this day; The Walt Disney Company is the second largest media and entertainment corporation in the world, after Time Warner, according to Forbes. In a report by Datamonitor (2007) the Walt Disney Company, together with its subsidiaries, is a diversified entertainment company. It owns media networks as well as parks and resorts. It also makes movies and markets consumer products. Furthermore, the company clearly has developed a very strong and well known "brand-name and image" over many years. Disney has one the most recognized and powerful brand names in the entertainment industry. According to Datamonitor 2007, the Walt Disney Company was ranked 8 th in the Top 100 Global Brands ranking of the BusinessWeek Magazine and Interbrand, a branding consultancy, in 2006. Not only does the company have a strong corporate brand, they have additional brands such as ESPN (one of the biggest sports channels in the world), Miramax, Touchstone, and Pixar. These, being other brands of Disney, have high brand equity. Beca use of this, the availability of entering new businesses and being able to produce new brand products is quite accessible. According to Telephonyonline, the Walt Disney Company is attempting to expand and team with Sprint to create a mobile virtual networ k operator (MVNO) service that targets families with children and adult Disneyphiles. With this said, they are going a different direction to expand their already broad product portfolio. The company already operates through four different business segments. These segments consist of media networks, parks and resorts, studio entertainment and consumer products.

The Walt Disney Company s Weaknesses Two of the Walt Disney Company s main weaknesses relate with a great possibility of problems. The idea of Disney s frequent change in top management and the tremendous amount of employees is where the problems all arrive. As of September 2007, there were 130, 000 people working for Disney in some way or another. By expanding their broad product portfolio and gaining many different niches it gives them a bigger image, but it also means that there are going to be that many more workers. This means greater possibilities for miscommunication and a high chance for a bureaucracy in the company. The most recent weakness of the Walt Disney Company has come from Hong Kong Disneyland Resort. According to many, the resort has yet to live up to the expectations of Disney s resorts and parks. The $1.8 billion theme park has only 16 attractions, onl y one of which is a classic Disney thrill ride (Space Mountain), compared to 52 at Disneyland Resort Paris. A recent study of Hong Kong Polytechnic University showed that 70% of the local residents had a negative opinion of Hong Kong Disneyland Resort. (Datamonitor, 2007). If the downward sloping performance of this resort continues, the image of the Disney Company will also start to take that direction.

The Walt Disney Company s Opportunities The markets of today are becoming more versatile to outsourcing and globalization. The trend towards globalization is not immune to the entertainment business and The Walt Disney Company is revealing this by expanding outside of the United States and offering

theme parks in France, Japan and China. According to Datamonitor, nearly 25% of their operating income comes from outside the United States and Canada (Datamonitor, 2007, pg. 22). Another expansion opportunity from U.S. soil was mentioned earlier re garding the Disney Cruise Line, a service well placed and growing in popularity. Another opportunity for Disney was also mentioned earlier considering Disney and their Imagineering section. Research and Development has promised to provide ne w attractions such as the Finding Nemo Submarine Voyage presenting an under the sea experience for consumers (Datamonitor, 2007, pg. 23).

The Walt Disney Company s Threats Threats that are more prevalent in the era of globalization are the laws and regulations of other countries. There is a need for constant monitoring of the differences in the laws of other countries and the United States when organizations are outsourcing. In Disney s case their theme parks must meet the safety regulations of the countries in which they operate in order to stay in business and maintain their international status. As with any business a main aspect of the Threat analysis is the competition. The analysis of what competitors are selling, how they are selling it, whether or not they are selling it effectively and profitably and how your product or service differentiates from theirs is a crucial way to know how to attract more customers to your organization. In the case of The Walt Disney Company and the theme park industry there are many competitors, such as Paramount Parks, Universal Studios and Six Flags Theme Parks, as mentioned earlier. However, there are many other less visible competitors that one

might not naturally think of when asse ssing the competitive market in which Disney deals. For example, there are hundreds of water parks and various funplexes that can also be considered as cheaper or more valuable competition for Disney. Competition, in any form, can diminish Disney s market share in the entertainment industry (Datamonitor, 2007, pg. 23).

The Walt Disney Company s Marketing Mix

According to Lamb, Hair, and McDaniel in Marketing 9 th Edition (2008),

the

marketing mix is a unique blend of product, place, promo tion and pricing, (p. 48). Those four Ps are the skeletal aspects for a product industry, however, it is clear that The Walt Disney Company does not solely provide products but also, in the case of their theme parks, they are providing a service. Therefore, three additional Ps are needed people, process, and presentation.

The Four Ps of The Walt Disney Company The Walt Disney Company is very good at the product and placing aspects of the four Ps, resulting from over eighty years experience in the business. This history has given them an advantage of instinct and familiarity when it comes to selling their products. As new theatrical productions are released, it allows for new product lines based off the feature s characters to be made and sold in strategically placed stores throughout the United States.

The stores are located in malls and super centers, in urban locations in order to for them to be visible, and they are nationally located within their theme parks where they will be heavily sought after by eager vacationing families. The next two Ps are promotion and pricing. Promotion is intertwined throughout The Walt Disney Company, surfacing in theatrical productions, books, consumer products and theme parks. Every aspect of Disney promotes not only itself but every other aspect as well in a circular rotation and, as Roy Disney was quoted earli er, keeps [consumers] Mickey Mouse minded. Since Disney is a family oriented company they want to be able to attract families of median incomes. Therefore, the pricing, relative to the theme parks and true to the pricing strategy is, the quickest element to change, (Hair, Lamb & McDaniel, 2008, p. 49). The prices for admission are subject to the seasons. Disney ads on television are often seen offering packages for round trip airfare for cheap, to attract consumers to their parks and resorts. kids fly free, and hotel packages all

The Three Additional Ps of The Walt Disney Company To address the three additional Ps (people, process, and presentation) Disney has constructed its own University that employees must attend and comple te before ever being allowed to work at a Disney Theme Park. According to Jim Cunningham the customer service of The Walt Disney Company is known as being the best in the world, and Disney University emphasizes two key points: The front line is the bottom line, and, It s 10 percent product and 90 percent service, (Service, 1997). This break down shows Disney s devotion to their customers and their customers experiences while encountering the Disney tradition

CONCLUSIONS: It should primarily talk about what business decision you have made on the basis of the findings of your study. An understanding of buyer behavior is central to successful marketing. To develop effective marketing programs, the marketing manager must have knowledge of the needs and wants of potential buyers, how they arise, and how and where they are likely to be satisfied. Buyer behavior is affected by many factors. Class, education, age, and psychosocial traits are just four of the many factors useful in distinguishing different buyer groups. Researching the relationships that exist between the marketing -mix variables and buyer needs and response. From this effort have evolved many buyer behavior models, concepts, and techniques. Cross- cultural analysis: Cross-cultural analysis is the systematic comparison of similarities and differences in the material and behavioral aspects of cultures. In the marketing, cross cultural analysis is used to gain an understanding of market segments within and across national boundaries. The purp ose of this analysis is to determine whether the marketing program, or elements of the program, can be used in more than one foreign market or must be modified to meet local conditions. The approaches used to gain this understanding draw on the methods developed by such social sciences as anthropology, linguistics, and sociology. Standard marketing research techniques, such as multi attribute and psychographic techniques, can be used. In marketing, cross-cultural analysis most often involves identifying th e effects culture may have on family purchasing roles, product function. Product design, sales and promotion activities, channel systems, and pricing, which includes the study of the effects of culture on buyer behavior, and thus in the marketingmix elements.

Conclusion Barriers and factors of cross-cultural communications are characterized as both objective and subjective. In order to be successful and avoid culturally unexpected mistakes in this process, multinational companies are said to understand profoundly objective barriers (e.g. cultural distance, differences in cultural dimensions and cultural sensitivity to creative communications); decrease bad effects of subjective barriers (ethnocentrism, illusion of control); and take advantages of factors (e.g. cultural diffusion, positive cross-cultural attitudes, cross-cultural training, and adaptation strategies).

RECOMMENDATION: This is the part where you have to be very cautious and before making any recommendations please make sure that they are feasible and are realistic.