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

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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

cultural preferences. The base ingredients, such as the cannellini beans Field + Farmer uses as the base, may remain consistent, but there might be variations in the types of oils, vinegar, and herbs used. Mexican ranch dressing might incorporate spicier elements like peppers to align with the country's culinary preferences. If other Ranch dressings were produced in Mexico, they might have slight variations in taste and flavor to cater to local preferences. For example, the U.S. version may be creamier and have a more robust herb and garlic flavor, while the Mexican version might have a slightly different combination of herbs and spices to suit the local palate. Field + Farmer also has a buffalo dip where they use hot sauce (aged cayenne red peppers, distilled vinegar, water, salt, and garlic powder) and jalapenos, so we may be able to take from what we already know to produce two items! (Field+Farmer, n.d) When packaging the dressing, the Mexican labels must have clear and accurate information in Spanish. The labels will include specific details such as ingredients, nutritional information, allergen warnings, and the manufacturer's information. However, there shouldn't be many issues because my product is gluten-free, allergen-free, plant-based, and non-GMO. Below you will see an example of Spanish labeling. Field and Farmer must ensure that all promotional materials are culturally sensitive, free from unintended connotations, and resonate with the target audience's linguistic preferences. Promotional strategies should align with the consumption habits of our target market. Since family meals are central to Mexican culture, ranch dressing can be marketed as a perfect accompaniment for family gatherings. A one-size-fits-all approach doesn't work in international marketing. Cultural intelligence, local market research, and adaptability are vital to successfully promote and communicate the value of products like ranch dressing in foreign markets.

Communication media: Leveraging a mix of digital and traditional media will effectively reach consumers in Mexico to promote Field and Farmer ranch dressing. (Cultural Atlas, n.d.) Social media is prevalent in Mexico, with platforms like Facebook, Instagram, and YouTube being particularly popular. These platforms can launch targeted ad campaigns, interactive content, contests, and influencer partnerships to engage consumers and introduce them to the ranch dressing. TV is also still a primary source of information for many households in Mexico. TV commercials during popular shows or events can reach a large audience. Radio is another widely used medium in Mexico. Ads or sponsored programs during peak listening times can help create product awareness. In strategic locations, billboards, banners, and transit ads can visually introduce the product to potential customers. Providing free market samples or organizing cooking demonstrations can let consumers taste the product and understand its potential uses. Participating in local festivals and community events can help create a positive association with the brand. These strategies allow personal interaction with the product, strongly driving new food products like ranch dressing. Continual monitoring of marketing and communication strategies is essential for any business. Monitoring this will help in evaluating the performance of the marketing efforts. This includes identifying which strategies are working and which are not and then adjusting accordingly. By assessing the performance of different marketing and communication activities, our business can optimize the marketing budget allocation by investing more in the strategies that deliver the highest return on investment. (Trade.gov, n.d.) Monitoring communication strategies lets us see how customers interact with our marketing efforts through social media engagement, click-through rates on digital ads, or customer feedback. This can inform adjustments to improve engagement and customer relationships.

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Pricing strategies play a crucial role in determining the acceptance and success of a product in a new market like Mexico. Here's how different pricing strategies might affect the price of Field and Farmer ranch dressing in Mexico: Penetration Pricing: A strategy where the price is set lower than the intended price to gain market share quickly. Field and Farmer Ranch dressing could be introduced at a lower cost to encourage trials among Mexican consumers. Bundle Pricing: Ranch dressing could be sold in a bundle with other products at a discount. This can encourage consumers to try ranch dressing as part of a package deal, perhaps with other new products or their already-established favorites. Promotional Pricing: Temporary reductions in price, such as discounts, coupons, or buy-one-get- one offers, to boost sales. This can spur initial interest and trial of ranch dressing, especially since it will be a new product for local consumers. Psychological Pricing: Pricing products to make them appear more attractive, like setting prices at .99 instead of rounded numbers. The perceived value of ranch dressing might increase, encouraging more consumers to try it. Understanding the proper distribution channels is crucial to successfully introducing and selling Field and Farmer ranch dressing in Mexico. Leveraging multiple channels will likely ensure broad reach and cater to various customer segments. Here are potential distribution channels for selling Field and Farmer ranch dressing in Mexico: Supermarkets & Hypermarkets: These are popular destinations for grocery shopping in urban and suburban areas in Mexico. Chains like Soriana, Chedraui, and Walmart have a broad reach. (statista, n.d.)

Traditional Markets ("Mercados"): These are open-air markets prevalent in most towns and cities, offering everything from fresh produce to household items. Having ranch dressing available here can help in targeting traditional consumers. Street Food Vendors: While this might seem unconventional, street food is integral to Mexican culture. If Field and Farmer ranch dressing can complement popular street foods or snacks, collaborating with vendors could be a unique promotional and distribution strategy. Argument: This is why we should introduce Field and Farmer Ranch Dressing not only to the tourist destinations in Mexico but also to local consumers. Growing Market Potential: Mexico has a large population and a growing middle class. A burgeoning middle class usually means more disposable income and a willingness to try new products. Gap in the Market: There is a lack of similar products in the Mexican market. Field and Farmer ranch dressing can differentiate itself from existing products, fulfilling an unmet need or offering superior quality. We’ll emphasize the versatility of ranch dressing as a dip, salad dressing, and cooking ingredient. This multi-purpose nature can cater to various consumer needs and occasions. References Best places to visit in Mexico for 2023-2024 | U.S. News Travel. (n.d.).

Buffalo Party Dip . FIELD + FARMER. (n.d.). https://fieldandfarmer.co/collections/shop-all- products/products/buffalo-cauliflower-party-dip#ingredients https://travel.usnews.com/rankings/best-mexico-vacations/ Country comparison tool. Hofstede Insights. (n.d.). https://www.hofstede-insights.com/country- comparison-tool?countries=mexico Mexican culture - business culture . Cultural Atlas. (n.d.). https://culturalatlas.sbs.com.au/mexican-culture/mexican-culture-business-culture Mexico: Mexico releases law on advertising against contract misconduct . USDA Foreign Agricultural Service. (2023, July 13). https://www.fas.usda.gov/data/mexico-mexico- releases-law-advertising-against-contract-misconduct Mexico - market overview . International Trade Administration | Trade.gov. (n.d.). https://www.trade.gov/knowledge-product/exporting-mexico-market-overview Topic: Supermarkets in Mexico . Statista. (n.d.). https://www.statista.com/topics/5761/supermarkets-in-mexico/ Tourism - OECD. (n.d.). https://www.oecd.org/cfe/tourism/ World Trade Organization. WTO. (n.d.). https://www.wto.org/english/thewto_e/countries_e/mexico_e.htm

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