Prof.

Avadhesh Yadav

Kama Ayurveda, an Indian company which already has a kiosk at Male airport (the Maldives) is now looking to start a standalone store in
International Markets.
Your agency has been appointed to prepare the Advertising strategy. What are the environmental & global factors that would be a challenge to
the Advertising in any of the two foreign countries chosen from the different groups? (Both the countries cannot be from same group).
GROUP I U.S.A, U.K, FRANCE, GERMANY, ITALY, SPAIN, DENMARK,
SWEDEN , AUSTRIA
GROUP II CHINA, JAPAN, BRAZIL, RUSSIA. SOUTH KOREA
GROUP III SAUDI ARABIA, BAHRAIN , QATAR, KUWAIT

ACS Case Study Format

1) Write about the product that you have selected. You may need more data about the product than what is given. You may
then make assumptions about the product so that you can determine the target audience

2) Describe your target audience. You cannot determine the advertising strategy if you do not know your target audience

3) you write what the basic elements of advertising challenges are: culture ( the cultural index and other parameters given
along with this note
1. Demographic Environment
2. Economic level
3. Natural Environment
4. Technological Environment

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 Prof. Avadhesh Yadav

5. Education
6. Language
7. Legal
8. Political Environment
9. Social Environment
10.Culture ( values behaviour likes dislikes media choice etc)
11.Cultural dimensions (PDI : IC: MF: RI)Write about the five dimensions
12.PDI Power Index
13.MFI Masculinity-Femininity Index
14.CI Individualist-Communalist Index
15.RTI Risk Taking Index
16.Colours and Numbers
4) Write about one country that you have selected and explain each of the dimensions mentioned above.

5) Write your USP and the ad strategy based on the analysis of the dimensions you have mentioned

6) mention the media you will use

Various factors/challenges U.S.A BRAZIL

1. Demographic Environment
2. 2) Economic Environment Brazil’s economy is growing , the
currency is strong and the
confidence high, people are
beginning to desire things that

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 Prof. Avadhesh Yadav

were out of reach just a few years

ago. Wealthy and middle class are
trading up to more expensive
products and buying more of them.
Over the last few years the “belly
of the market” composed of the
middle class households that the
equivalent of $ 25,000 a
year.Brazil, which is another
major market in Latin America,
has also experienced economic
problems recently

3. 3) Natural Environment New regulations have hit certain

The deterioration of the natural industries badly
environment is today a matter of Steel companies & public
global concern. Air & water utilities have had to invest in
pollution have reached pollution control equipment
dangerous levels in many cities & more environmentally
of the world. friendly fuels.
The auto industry introduced
expensive emission controls
in cars. Companies,
hopefully will adopt practices
that will protect the natural
environment.

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 Prof. Avadhesh Yadav

4. 4) Technological Environment
5. 5) Political Environment
ALL THE STUDENTS SHOULD
RESEARCH THOROUGHLY THIS
SEGMENT
Highly developed country- Media
convergence, media boom- Virtual
Reality- enabling an individual to
experience a 3D effect in the internet.
A number of political risks also govern the
political environment such as social unrest
in the country, unfriendly foreign policies of aspects of a company’s
the government
Evaluate OBAMA ADMINISTRATION
Eg: government shutdown recently because
of differences between REPUBLICANS AND
DEMOCRATS
FOR EXAMPLE
[Government regulations and restrictions
can affect various aspects of a company’s
advertising program, including:
• The types of products that may be
advertised.
Anti-Pollution measures-
Industrial activity does damage
the Natural Environment-
chemical pollutants, littering of
environment with plastic, bottles
and other packaging materials
Brazil, large exporter- exports
alcohol, carbon, steel, orange
juice, soy-beans,&
weapons(world’s 6th largest
weapon exporter). Ships cars,
trucks & buses to Third World
Countries-
Government regulations and
restrictions can affect various
advertising program, including:
• The types of products that
may be advertised.
• The content or creative
approach that may be used.
• The media that all advertisers
(or different classes of
advertisers) are permitted to
employ.
• The amount of advertising a

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6) Legal Environment
6.
Government restrictions can
influence the use of foreign
languages in advertising as well as
the production of the ad. Most
countries permit the use of foreign
languages in print ads and direct
mail. However, some do not allow
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Prof. Avadhesh Yadav
• The content or creative approach that
may be used.
• The media that all advertisers (or
different classes of advertisers) are
permitted to employ.
• The amount of advertising a single
advertiser may use in total or in a
specific medium.
• The use of foreign languages in ads.
• The use of advertising material prepared
outside the country.
• The use of local versus international
advertising agencies.
• The specific taxes that may be levied
against advertising.]
 Provides laws, rules, regulations and
procedural formalities laid down by the
govt. there may be laws related to every
element of the marketing mix such as
Product Quality, Pricing, Packaging,
Cancellation of agreements etc.
Cigarette advertising is banned in some or
all media in numerous countries besides
the United States
aactindia.org
single advertiser may use in
total or in a specific medium.
• The use of foreign languages
in ads.
• The use of advertising
material prepared outside
the country.
• The use of local versus
international advertising
agencies.
• The specific taxes that may
be levied against
advertising.
 Provides laws, rules,
regulations and procedural
formalities laid down by the
govt. there may be laws related
to every element of the
marketing mix such as Product
Quality, Pricing, Packaging,
Cancellation of agreements etc.
 Prof. Avadhesh Yadav

foreign language commercials on TV longstanding ban on advertising

or radio or in cinema ads, and some for prescription-drug products,
restrict foreign-language ads to which is designed to keep
media targeted to foreigners in their government-subsidized health
country. Some countries also restrict care costs under control
the use of Foreign-produced ads
and foreign talent.
7. 7) Social Environment Family is the foundation of the
social structure and forms the
basis of stability of most people.
The family tends to be large. There
is a class system. The upper and
middle class have only a brief
interaction with the lower class.
Class is determined by skin colour
and economic status
Although women make up 40% of
the workforce, they are found in
lower paid jobs such as teaching,
administrative support and
nursing. The people love
socializing and spending time with
each other.
Though the culture tends to be

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 Prof. Avadhesh Yadav

relatively informal, they are quite

fashion conscious
8. 8) Cultural Environment High persistence of cultural
values Core beliefs and
values are passed on from
parents to children and are
reinforced by major social
institutions – schools,
temples, business and
governments. Secondary
beliefs and values are more
open to change. Thus
marketers shall have some
chance of changing
secondary values but a little
chance of changing core
values.

9. Individualism/Collectivism Index 34%

[IDV]
10. Power Distance Index In USA individuals customary address each
[PDI] other on a first name basis regardless of rank.
Top managers often illustrate their solidarity
with the lower rank by engaging in work
activities they do, going to the plant floor or
eating in the workers’ cafeteria.
70 % it is a mistake to address a
superior informally or for a
superior to mingle with the
underling. In these countries most
decisions are determined by the
upper level executive and only

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 Prof. Avadhesh Yadav

much later disseminated to

individuals in the lower positions.
In this environment it is
particularly important to address
the senior managers first before
addressing other individuals in the
company
11. Uncertainty Index 76%
[UAI]
12. Masculinity/Femininity Index 45%
[MFI]
13. High Context & Low Context. 60%
14. Colours and Numbers Purple flowers are used
extensively at funerals so one has
to be cautious in the use of the
colour.

15. Media Limitations in Brazil tv commercial s are

sandwiched together in a string
of 10 to 50 commercials within
one break TV plays a prominent
role in the Brazil households and is
considered as one of the main
channels of access to information,

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 Prof. Avadhesh Yadav

especially among the less

economically favoured families.
Children have a preponderant role
in the selection of programmes to
watch on TV
Brazil is trying to implement the
Swedish rule to ban children
completely from TV
Pay channels are only 10% ‘Globo’
is the main network dominant in
audience share. Other channels
are yet to make a mark.
Hoardings are popular. Massive
skyscraper size hoarding line the
streets of Sao Paulo. The brands
show the uninhibited nature of
the Brazilian society. Giant images
of men and women , with only
their underwear and the Playboy
centre page are displayed in huge
cut-outs
Hoardings are put up illegally and
cause ‘visual pollution’. There is a

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 Prof. Avadhesh Yadav

proposal to ban these hoardings

The outdoor media is polluted but
cheap
Breakdown of investment by
media

Tv 60% Newspaper 18%

Magazine 10% others less than
10%

16. Packaging and Promotion

17. Advertising challenges

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