Business of Culture
“The crucial differences which distinguish human societies and human beings
are not biological. They are cultural.”-Ruth Benedict
Culture is everywhere. The way we do things in a particular place/region can define and be an integral part for the culture we experience at that place. While culture of business and office culture have been so valued by companies nowadays, the business of culture difference has been hardly given any attention for these many years. Let’s see why many people are undermining this crucial part for business to succeed during this era of globalisation.
One of the greatest examples that we have for the business success in culture is the introduction of Nestle coffee products and Kit-Kat in Japan. Japanese were traditionally tea-lovers, who dominate the entire landscape, with literally no coffee sales until the latter half of the twentieth century. However, Nestle hired an expert market researcher to find out the reason for this effect. The expert declared that they had no connection with coffee.
Owing to this, Nestle came up with a brilliant idea of introducing the toffees/candies which had a taste of coffee. This made sure that they were able to up bring the people who were affiliated to the taste of coffee right from their childhood, thereby boosting the sales of coffee for the years to come.
Another very similar thing where Nestle found extreme success was the Kit-Kat. It is spelled as “Kitto Katsu” which literally translates to “ you will win” . This was more applicable to the students when they take up final exams at the school. Since Japanese love the written notes, Nestle turned up to govt. post offices in Japan. Japan has somewhere around 20,000 offices , for which Nestle had a partnership with government so that relatives, friends and well wishers could wish the students who were taking up exams. This has brought unprecedented success and now Kit-Kat has become a part of Japanese culture for wishing. Even now, these Kit kat exist in those post offices. Understanding the culture and spreading the joy has ensured that Nestle has no competitors in that region.
While the above story can be considered as a successful example for understanding the culture, the downside is that not understanding can also lead to an unprecedented losses. Dunkin donuts in India has had not much success at it has had in the European and the overseas market.
Dunkin’ donuts entered into India in the year 2012. The Dunkin’ Donuts, at first, started out with the traditional strategy of being a go to place for the breakfast. However the shallow sales was primarily due to the not so great understanding by the Dunkin’ Donuts that Indians don’t generally prefer a sweet sugary breakfast. They preferred a more traditional food as breakfast . The donuts were seen as part of snacks as well as luxury food. Then it tried to sell other items such as sandwich and burger which were not the signature dish. This lead to the closure of half the restaurants by 2018.
While the culture of business is important to the business, the business of culture is also as significant as the other half. This must be realised by the businesses if they are to take up the first mover advantage in every sector possible. If the business tries to understand, celebrate and enhance the culture and cultural diversity, culture will repay that business by holding it dearly to itself.
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