Vikram Tuli, student at Great Lakes Institute of Management, Chennai, wrote: The success story of Havaianas post-1990 teaches us that, apart from the effort and money which companies put into marketing and branding, they should also focus on the aesthetics of their products in relation to the culture prevailing in the target country. Examining the needs of people at the base of the socioeconomic pyramid, fostering product innovation, and shifting traditional strategies to address the unique characteristics of emerging markets are essential to addressing demand in new markets.
Multinational companies sometimes fail to read the cultural foundations as they move from country to country selling their products. They feel that the strategy which succeeded on home turf can be replicated in most other countries, but sadly this is not so. Communication problems, faulty promotional methods, racial, national and religious sentiments, and the difficulty of reading correctly the market forces at play are key challenges that companies need to overcome and plan accordingly.
Tuli wins a copy of India Inside by Nirmalya Kumar and Phanish Puranam