Macro Analysis and Marketing Perspective

Being in a different country always has a way of changing my perspective, and this trip changed the way I think as a business woman. It is so important to experience how business works around the world, since most prominent businesses are globalized. Some important things I learned about the Asian business culture is relationships are everything. If someone is trying to make a business deal with them, they spend weeks going to dinner, bringing gifts and spending time with their company before any deals are made. This was such an important thing to learn because we as Americans tend to jump into things and knowing that the Asian culture needs more time to make decisions will be pertinent. Also, there is the concept of "saving face." It is extremely rude to argue or prove someone wrong in front of anyone, so being polite and almost dancing around the problem is the way it's done. Coming at problems head on is seen as an insult so when working with an Asian business, being as polite as possible is the best way to handle things, and the best way to maintain a good working relationship. Seeing other interns from USU on this trip and hearing about their personal experiences changed my perception of what interning is all about. They are immersed into the culture and a new way of dealing with business all at once and sometimes that can be hard. But since I am planning on interning very soon in the future, it was so great to hear about their experiences.

Looking at this experience with a marketing perspective, it added great insight to how I would market to that side of the world. They like certain things packaged in certain ways, very bright and flashy colors, things that make them look important...all sorts of different things I noticed on this trip that will aid me in the future if I work as a marketer with the Asian culture. Since business is becoming globalized in almost every aspect, being able to market to all types of people will be an important asset to a business, and be their downfall if they can't adapt to each culture. I am so glad I had this experience because it showed me how important it is to think global and act local. I was able to personally interact with businessmen and women and know that I will be better off in the future because I had this opportunity to apply concepts to real life business.

Since we visited about 26 businesses and organizations, I decided to group them in categories to describe how their physical environment played a role in the way they operated.

Businesses such as Ernst and Young, Samsung and Miscrosft were located in the heart of either Beijing, China or Seoul, Korea. They were beautiful skyscrapers that caught the eye of many as we were traveling around the city. Since status and position is so important in the Asian culture, it makes sense that their buildings have so much presence and prestige. Also, marketing isn't a strong point, so by showing how "important" they are by their physical location, word is spread that they should be a very trusted and high-end company. These companies are well known for the wealthier citizens, but for those that live on the outskirts there is a lot more trouble promoting a brand or building up brand recognition.

Kiswire, POSCO and Hyundai were my favorite plant visits because there was so much they did as a corporation that applied to concepts I had learned throughout the year. But, as far as physical location goes, they had chosen very carefully. Since they not only produce, but ship the products they are creating, the availability of a shoreline is crucial. Each of these companies had their own port that allowed them to cut on costs and ship from their own location. This was an incredible asset to their organization.

POSCO is a very "Green" oriented company; they want to show the world that their products of Iron and Steel aren't hurting the environment as they are manufactured. Touring around their plantation you can see trees and shrub, flowers and even rabbits to prove they are keeping their promise of being environmentally conscious. With the actual manufacturing of their steel and iron, they use recycled water to move the products through the machines. I was very impressed and that is what they want their physical surroundings to prove to you.

Kiswire, on the other hand, didn't pay much attention to being environmentally safe. Walking around their manufactiring site, there were exposed tools and chemicals, as well as spills. I didn't feel safe or clean. Their physical surroundings and resources used did not promote their company - if anything their brand meant much less to me after leaving.

The last category is Education. We were able to visit Beijing Jiaotong University and the National Economic University in Vietnam. They were each set in very comfortable settings as compared to the rest of the city, and were well kept campuses. Since they are becoming internationally known, it is important to attract possible students with your surroundings as well as content. I personally wouldn't mind attending either of these schools.

KFC

I totally thought McDonalds would be the prime candidate for this assignment, but I didn't know Vietnam refused to let them enter their country. Luckily, KFC was there!

Price: There was very little variation in price between the countries of Korea, Vietnam and China. It seems to be set across the board and across the country so there wasn't much of a pricing strategy.

Product: The KFC in Seoul had a familiar menu to the menu in America. In Guilin, China we were all happy to find that they sold ice cream cones, similar to McDonalds. And in Vietnam, they had a familiar menu as well. The packaging of the product was the same in each country, and the quality seemed to all be the same (except I am not a big fan of fast food so to me the quality wasn't very good). As strange as it sounds, the Brand name "KFC" seemed to be more well known in Vietnam than any other place we visited. We found this out by our taxi rides; when we would say "KFC" in to Chinese or Korean drivers, they blankly stared and we had to explain or show a map. In Vietnam we could just say it and they would know exactly where to go!

Place: Something that was interesting about the KFC in Vietnam was it was a four story building. The first floor was where you order, next floor pick up, and the next two floors were the seating areas. I thought that was a really efficient way to get the product to the customer! As far as the literal location of the store goes, KFC was located on the downtown strip of Seoul, Korea and Hanoi, Vietnam. This was a strategic move because mainly foreigners shop in that area of town. In Guilin, however, KFC was randomly found at the end of a market near the River Li where we had taken day-long ferry ride. But again, it makes sense to be there because foreigners are the main shoppers in the market due to the ferry ride.

Promotion: Over the entirety of the trip, I saw ONE fast food commercial and it was for KFC. Other than that, there was very little advertising for KFC in comparison to McDonalds. In each country we had to do a lot of asking around to find where exactly it was, instead of in the US where we see billboards, magazine clippings and commercials. A lot could be improved in this area, and I think they would have a much more successful business.

Beijing Jiaotong University

At Beijing Jiaotong University, we asked the Dean how ethical decision making was taught at their school, or what classes or programs reinforced having an ethical mindset. It took him a little by surprise! He started talking about something that he soon realized wasn't answering the question, so he simply said, "I'm sorry, I don't have the answer for this." That was not the answer we were expecting, but it gave us a glimpse into their culture. If we at USU had been asked that question we would have talked about our four pillars: Ethical Leadership, Analytical Rigor, Global Vision and Entrepreneurial Spirit as well as Partners in Business and the discussions about ethical leadership we have in many of our business classes.

Lotte vs. Silk

I thought the shopping assignment was going to be the best homework ever, but my mind was quickly changed. I am now a shopping hater! I have never been so overwhelmed in my life...


I thought the silk market was an outside market, so when the bus pulled up to a six story building I was a little confused. As you walk in on the main floor, all you can see are aisles and aisles of clothes: Abercrombie, North Face, Polos, Dolce and Gabbana etc. This floor was obviously the clothing floor. After some snooping around, we figured out that each floor had a different type of product, like shoes, jewelry, electronics and so on. The atmospherics of the market were so busy and crowded and noisy that after one hour you feel utterly exhausted. A couple hours into shopping I grew a little restless and decided to go exploring ahead of the group I was with at the time. Not long after did I realize I was surrounded by a bunch of strangers and the others were nowhere in sight. For the next hour and a half I went searching floor by floor for anyone I knew, praying that I wouldn't have to take a taxi back to the hotel by myself, since the market was about to close. As I got off the escalator on the 3rd floor, I ran into a member of the team and gave him the biggest hug ever. :)


The Lotte Department store was a different story. It was a comfortable environment, spaced out and clean with soothing music playing in the background. I could take my time walking around the store without feeling rushed, and people were easily visible, so getting lost was much harder. I saw an adorable shirt and went to go try it on...but then I saw the price. 200 dollars?? I don't think so! So, we spent the rest of the time simply admiring the beautiful merchandise.



There are definite similarities and differences between these two shopping experiences:

Similarities:

• Each floor was specific to a certain type of merchandise.


• The layout of the escalators forced you to walk around the entire floor before going to a different one


• The employees came up and promoted their product
  

Differences:

• Lotte had set prices while the silk market allowed bartering


• Employees at the silk market invaded your personal space - big time


• Lotte is a clean environment


• Lotte had better quality

Kiswire and Microsoft

Kiswire: This company took me by surprise. I thought since they made wire specific to certain things, like a piano for example, they would easily be able to target specific audiences for the promotion of their product. When the CEO of the company was asked how their company promoted their product and what their marketing plan was, Dr. Kim quickly said "they come to us." He feels they are well known enough not to have to actually go out and seek the customers. Many of their orders are specific and custom made, but I was still surprised that they don't worry about promoting their product.

Microsoft: Microsoft is focusing on rising above the Mac sensation. They are creating and re engineering their products to bring back lost customers as well as attract new customers. One of the products we were able to actually experience was an interactive program that could be connected all around the office workplace. With the ability to use programs on someones else's computer while at your own station, chat in a new innovative way, use video and have virtual job specific tasks makes it very appealing to businesses. This product will be/is promoted as the new easy way to interact at work that is more efficient. They also have touch screen computers and coffee tables that are different than any Mac products being sold right now, and this is their chance to get their foot in the door before Mac does. They are hoping to attract those who want to be a step ahead with technology, and I think their touch screen products are going to be very successful in the near future.

Disney Hong Kong

Hong Kong Disney knew how important it was to think globally and act locally. The head of marketing talked to us about Hong Kong Disney’s cultural journey and adaptation, and how they learned some hard lessons from Euro Disney. They definitely made sure there was appropriate food and drink as well as integrated the Chinese new year with the American down town celebration. Another thing they changed was the rides, which we all noticed. Space Mountain was made a little less intense since the Asian culture didn’t find being sick afterwards very fun for some reason, I don’t know why!

Something he said was yes you need to adapt, but never lose sight of what the core of Disney actually was. They knew it would be a challenge to make all the classic characters known since the majority are American stories, so they adapted by finding something that was popular in china, like Stitch, and made that a prominent figure there, as we could see walking around that he is almost more popular than mickey mouse! This visit showed me that it is crucial to integrate local culture in order to be successful.