Companies should do a well marketing research on the culture norms, environmental circumstances, local and surrounding area demographics and also the consumers’ financial situations before investing their products or services in a new market to avoid any problem occur. They should foresee the future consequences that may occur when they invest in a new market with different life style from their previous market and take action to avoid or minimize the effect of that problem. They should understand that different countries need a different style of marketing plan and should find out the best way to market their product in each country. They should responsible on the consequences or issues that may occur for their consumers after using their products and should not only care for the profit. The Nestle case is great example of how it is important to have a well marketing research before entering a new market. Nestle has fail to do their research before entering the Third World market and has been directly or indirectly causing the death of the Third World infants. This case was about a company that went global and decided to market their product without really taking into accounts the environmental circumstances of these markets-and got burned for it! To invest in an undeveloped country like Africa, Nestle should be fully aware of cultural norms that may be affected and have plans of action they intend to take to adhere to these norms.
Companies should know well where they want to distribute their product , what the residents really need for , how prepare is the others resources needed for consuming the products, who is their consumer, how will their products affect their consumers long- term in anyway and are they complying with social responsibilities and practices before entering a new market. For example, Nestle should knows that the individuals living in Third world countries have less opportunities to receive a decent education and it is difficult...
Please join StudyMode to read the full document