Final INT 433

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INT 433 Final Presentation INT-433 - Multinational Marketing Dr. Scherrer August 15, 2023
Field and Farmer expanding their Ranch Dressing business to Mexico may be risky, but once the locals see the value the condiment adds to their dishes, it will become a rewarding business venture. Mexican cuisine is one of the most diverse and celebrated in the world. It is deeply rooted in the country's history, traditions, and regional variations, creating a rich tapestry of flavors, techniques, and ingredients. With many cities being tourist destinations, there are many opportunities for locals and tourists alike to partake in Ranch Dressing. Tourism is an essential economic sector in Mexico, and the country plays a prominent role in tourism globally. The industry directly accounts for 8.5% of GDP, 5.8% of full-time paid employment (in the formal sector), and 77.2% of service exports.). (OECD, n.d) So we start with targeting tourist areas like Zihuatanejo, Tulum, Cozumel, Ixtapa, Isla Mujeres, etc., as those are some of the most appealing tourist destinations according to usnews.com. (usnews, n.d.) Let’s now look at Hofstede’s Cultural Dimensions before we make a move to Mexico: Here are some of the most important elements: Individualism vs. Collectivism: Mexican society is collectivist. People place a strong emphasis on family, community, and group harmony. Loyalty to one's group, whether it's the family, workplace, or community, is highly valued. Indulgence vs. Restraint: Mexico scores relatively high on the Indulgence dimension, indicating that Mexican culture is more permissive in enjoying life's pleasures and gratifications. Mexicans tend to focus on the present and seek instant gratification. They may add a new dressing/condiment option to their daily selection. (Hofstede, n.d.) These insights into Mexico's culture help us understand how values, behaviors, and preferences influence various aspects of life, including business practices, communication, and social
interactions. When marketing or conducting business in Mexico, considering these cultural dimensions can significantly impact strategies for successful engagement with the local population. Cultural Assessment: Introducing a product like Ranch dressing to the Mexican market would require a nuanced understanding of Mexico's cultural elements. Mexican cuisine is known for its bold flavors, spicy dishes, and rich textures. If unfamiliar to the general population, ranch dressing should be introduced to complement these traditional flavors. To further show the local population how Ranch can be paired with their dishes, we should host tasting events that pair ranch dressing with popular Mexican dishes, showcasing how it can enhance or complement existing flavors. Mexicans take pride in their culinary heritage. Any perceived attempt to replace or undermine traditional condiments or sauces could be met with resistance. We’ll position ranch dressing as an addition to the culinary dishes, not a replacement. Emphasize respect and appreciation for Mexican culinary traditions. Political risks that could affect marketing activities in Mexico include the following: Political instability, such as protests, social unrest, or changes in government, can disrupt business operations and create uncertainties for marketing activities. Regulatory changes must be considered as the Mexican Government could introduce new regulations or change existing ones, impacting our marketing activities. These changes may include restrictions on advertising, product labeling requirements, or industry-specific regulations. A few areas to consider regarding the legal and regulatory involvement in Mexico are: Mexico has specific regulations regarding food labeling, including requirements for nutritional information, ingredient lists, allergen labeling, and product claims. Field and Farmer must
comply with these regulations as it is crucial for marketing any food product, including ranch dressing. It is also essential to comply with health and safety standards established by Mexican authorities. This includes maintaining proper food handling, storage, and transportation practices to ensure the safety and quality of the ranch dressing. And because the ranch dressing will be imported from the US, it's necessary to comply with import regulations, including customs duties, product certifications, and import restrictions. Mexico became a part of the World Trade Organization (WTO) on January 1, 1995. Since then, Mexico has actively participated in the multilateral trading system under the backing of the WTO, promoting trade liberalization and adherence to international trade rules. (WTO, n.d.) Most times, trade restrictions , such as tariffs or quotas, may increase the costs of importing Ranch dressing into Mexico. However, there are no tariffs for products made in the United States that meet rules of origin requirements under the United States–Mexico–Canada Agreement (USMCA). Mexico has laws and regulations governing advertising, including those related to false or misleading claims, comparative advertising, endorsements or testimonials, and advertising targeted toward children. (FAS, 2023) It's important to ensure that our marketing materials comply with these regulations. Ensuring compliance with regulatory requirements for labeling, packaging, and health standards might necessitate marketing materials and branding adaptations to align with Mexican regulations. My product's gluten-free, allergen-free, plant-based, and non- GMO characteristics should streamline the process and minimize potential issues. Regarding adaptations , there are currently not any Ranch dressings that are produced in Mexico, but if there were, the ingredients used might differ due to regional availability and
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