Cat Food Strategy

CAT FOOD STRATEGY

1. What was Iams initial mistake?

The Iams Company makes Eukanuba and Iams dry and canned versions of premium dog and cat foods and sells them in pet supply stores and veterinarians' offices in more than 70 countries.

When companies decide to market products globally, there are certain elements that need to be considered. In order to determine how to enter a foreign market, marketers need to conduct some form of cross-cultural analysis. In this instance, Iams did not consider the cross-cultural difference it would face in the international market. If an analysis and/or some type of research was conducted, marketers of Iams would have been able to determine the cross-cultural differences or similarities the company would face. These types of analysis would have helped the marketers of Iams of how different and/or similar the beliefs, values and customers are that govern the use of the product in various countries. (Schiffman, Kanuk, 2007).

2. What lessons can be learned from the Iams experience?

One of the lessons that can be learned from the Iam experience would be the importance of conducting cross-cultural analyses to determine how the product would appeal to consumers in another country. A firm's success in marketing a product or service in a number of foreign countries is likely to be influenced by how similar the beliefs, values, and customs are that govern the use of the product in the various countries. (Schiffman, Kanuk, 2007). Had IAMS done this analysis they would have been aware of the cultural differences and would have been able to make changes to their product before introducing it. Due to not understanding the European culture the company wasted valuable time and profits. They also introduced a product that was unsatisfactory, which in return caused issues when they tried to reintroduce it