Machu Pichu: Observing the 4P's up high!

I've heard about Machu Pichu since I was in middle school, so it was exciting to have the opportunity to visit the site. It is especially interesting as I look back at the experience in a business and marketing context.

It's a tricky balance to try to maintain traditional culture and history of a site while appealing to a modern base of customers, especially for places like Machu Pichu that attract such a large and diverse base of people. While we were walking through the site, we met a group of ladies from England, Spain and Italy. We also saw large groups of Asians touring the site! Machu Pichu is attractive site for people from all over the world.

Although there are many shops around the site, including an entire market, the main product from Machu Pichu is the experience. To promote the site, there is a ton of tourist merchandise with pictures of the mountain and the ruins including t-shirts, key chains, and postcards. On your way out of the site, you can also get your passport stamped with a special "Machu Pichu" stamp. When people leave with these things, they go home and show off all their merchandise, memorabilia, passport, and pictures, and thus spread awareness of the site.

Machu Pichu is a site marketed to tourists--people who are educated to know about the ruins and have money to travel. Not only do you pay for entrance into the site, but you pay for a train ride up to the area, and the bus to get you to the train. Then, the way the place is structured, you walk right through a market, where you can buy souvenirs. There are restaurants all along the train tracks.

We sat down outside at one of the restaurants for lunch. The food was great--they offered traditional Peruvian dishes and drinks as well as more American food such as hamburgers. The food definitely was attempting to attract tourists. When we were sitting at lunch, a seven man Peruvian band came around and began to play in front of our table. They played traditional Peruvian music and then started to play American favorites such as Simon and Garfunkel. They took requests! :) After playing for awhile they began to come up to our table and ask for money to keep playing. They also had some CD's to sell. They sold an album with traditional Peruvian music, and one American favorites. This was an obvious attempt to maintain culture while adapting when necessary to appeal to the customer--some customers would like the Peruvian music because it would seem more cultural, others would enjoy listening to familiar tunes.

Wynu Pichu is a mountain in the area that people can climb to get a higher view of the ruins and trail up to Machu Pichu. It is a very steep mountainside. In trying to preserve Wynu Pichu, they only let 400 people up the mountain each day. This preserves the site, the culture, but also makes the site more attractive to tourists. For example, when we visited Machu Pichu, we arrived around 10:00 a.m. A group of students wanted to climb Wynu Pichu, but they had already made the cut off for the day. Some of the people had been in line since 6:30 a.m. One of our advisors offered a man $200 for his spot, but the offer was declined! Because it is a challenge to climb to the top, and because there is only a small opportunity to do so, it has become a huge privilege to get up to Wyna Pichu! There is a lot of value in the opportunity. In this case, preserving the culture and natural formation of this spot actually increased the value and interest in the site.

Company Culture: Johnson & Johnson

Because Johnson & Johnson is such a well known brand and organization in the United States, it was interesting to go visit the facility in Brasil. Because Johnson & Johnson is a huge and successful company with a global presence, it is necessary that there be some consistancy in its operations. From what I noticed during our visit, there is a balance between corporate and national culture in the Brasilian plant. There is a strong corporate culture within the organization, with undertones of national culture.

The plant is under Brasilian management and leadership. Their hours of operation are inline with government regulations and requirements. There are two work shifts during the day—one from 6:00 a.m.—2:00 p.m., and the other from 2:00 p.m.—10:00 p.m. Both of the shifts allow a time for lunch. The culture is very environmentally conscious because of costs and government regulation. Johnson & Johnson Brasil recycles 75% of its waste materials. The company has a products recycling center where they can make rugs, clothing, and other items from recycled materials. They purchase materials from a local supplier.

The facility adheres to Johnson & Johnson corporate expectations and follows standard manufacturing operations and procedures including quality control, inventory management, certification, and management practices. Johnson & Johnson is well known for their credo, which recognized its company responsibility to its customers, employees, communities, and stockholders. When we toured the facility, our guide was very proud of this credo, and refered to it several times. The credo is something special in the corporate culture that permeates the Brasilian facility. Johnson & Johnson competes on quality and positive name recognition, so it is vital that each producer, including the Brasilian plant, provide excellent and consistant quality. This is a corporate value that permeates the company.

As mentioned earlier, the plant is under Brasilian management and leadership. Some Johnson & Johnson employees work for the company for years without every desiring to move "up the ranks". Other employees continuously move up the leadership ladder and make it to the top. When the company faces a leadership transition, new leadership/management candidates are selected and sent to Europe or the United States to be trained for a year. This is a way of integrating corporate and national culture and aligning values.

McFlurries and Global Product Adaptation

I didn't start out planning to search out the McFlurry in each country... it just happened! Toward the end of our first week in Chile, we found a McDonald's and everyone decided ice cream sounded delicious. A group of us ordered a McFlurry. It soon became a tradition.

McFlurries in Vina del Mar, Chile

Featuring: Oreo

I've had a McFlurry before in the states, but this one in Vina del Mar was particularly tastey! The McDonald's in Vina didn't offer multiple types of McFlurries. They offered an Oreo McFlurry. This comprised vanilla softserve ice cream with Oreos--either chunks or finely crushed Oreos. The Oreo McFlurry can be marketed to anyone--any age or lifestyle--because it has become a classic cookie. It was interesting because throughout South America, the Oreo is sitll marketed as "America's favorite cookie". South American McDonald's all had separate ordering counters for ice cream. McDonald's softserve ice cream is a big selling item in these countries!

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McFlurries in Rio de Janerio, Brasil

Featuring: Ovaltine

When we got to Rio de Janerio, Brasil, there was a McDonald's a few blocks away from our hotel. They advertised them the same way that Chilean McDonald's did--they had a separate area of the ordering counter where you specifically ordered ice cream. There was a poster on the main ordering board of a McFlurry with the words describing the mix. There was also a sign by the cash register with a picture of the McFlurry and a small description of the topping. They also had the same packaging. McFlurries came in short and wide styrofoam cups.

Along the Copacabanna Beach, there were McDonald's stands that sold only ice cream. These were targeting tourists and locals spending the day on the beach. When walking along the sidewalk or playing at the beach on a warm day, sometimes ice cream just sounds good.

The actual prodcut was different in Rio. In Rio, the McFlurry featured Ovaltine. This product was more chocolate-y. The topping was more powder-y, but could be mixed more evenly throughout the ice cream.

McFlurries in Lima, Peru
Featuring: White Chocolate

In Lima, there was the ice cream ordering counter, similar to Rio and Vina. The McDonald's advertised the same way with the big McFlurry picture on the board and by the cash register. Price, packaging and advertising were similar.

The McFlurry in Lima was a chocolate softserve with white chocolate pieces and a hot fudge sauce mixed in. This McFlurry seemed to be more sophistocated. Around the bowl, there was a cardboard wrap in browns and neutral colors, with cursive writing describing the product. This was different than the other McFlurries, which just were served in a styrofoam cup with no outside covering. Lima McFlurries had the smallest serving size.

McFlurries in Los Angeles, California, America
Featuring: M&Ms

We had a long layover once we arrived in the L.A. airport. Of course there was a McDonald's, and we decided to get ice cream together one more time. :) This was an American McDonald's, and they offered more than one type of McFlurry. They used styrofoam cups that are taller and thinner than the shorter, fat cups from South America. The product also came with a lid on top. The classic American McFlurry was the M&M McFlurry.

Back in America, the ordering board consisted mostly of words and prices. There were not as many pictures. There was no picture of the McFlurry. There was no separate counter for ordering ice cream. Perhaps this is because in America, people are familiar enough with the McFlurry that they don't need a visual reminder. Or perhaps it is because the McDonald's in America offer a wider variety of products. They may not have to market any one particular product as heavily at the front because they have a larger pool of products to draw from, and their customers are hit by other types of advertising all the time--both mass advertising with bill boards, and being hit personally on their computers with internet adverising and commercials on television.

The visual pictures in South America, however, were what sold me on the McFlurry every time! Before traveling ths summer, when I'd go to a McDonald's--which was a rare occassion, and I never went there specifically for ice cream--a McFlurry didn't naturally cross my mind. The pictures in South America seriously affected my buying decisions.

Consensus: McFlurries are delicious.

Snacks!

In thinking about our market back home and at Utah State, here are two snack candidates:

#1Yokiero Cheese Puffs

These should not be confused with Cheetos Cheese Puffs, or any knock off puffs brand, because they are not the same! They are cheese flavored, but the flavoring is very faint. They mostly taste like puffy air. They are not good enough to have a substantial market at USU. Although there was a temporary tattoo in the bag which made them fun to open and eat... ;)

#2 Trakinas Chocolate Strawberry Cookies

These were super good! There were about ten cookies packaged in a roll. There was a large assortment and variety of flavor combinations. There were chocolate and vanilla cookies with caramel, strawberry and chocolate fillings. I randomly selected chocolate cookies with strawberry filling. They were flavorful and satisfying! :)

It's hard to say if they could compete with some of the bigger established cookies, but if they were marketed well, I think they would sell at USU. It might be fun to play around with them and have blue filling and a USU or aggie print on the face of the cookie specifically for Utah State.

I thought it was pretty funny to see that Halls were marketed as candy all over South America!

It's true!

It was also interesting to see the difference in Mentos! In Rio, we foud a store that sold about ten different flavors of Mentos candy. In the states, I've only seen two or three flavor options for the candy. It was interesting to see the bigger selection/offering, and I wondered how successfully they sold in Brasil, and why. I also wondered if they had ever thought about introducing more flavors into the common US market. They had a good chewy consistency and were just taste-y and fun to eat! :)

It was interesting to see all the types of snack foods around Chile, Peru and Brasil. I found a lot of snacks that were similar to things we have in the U.S., and some that were totally different.

Note: Just for kicks, I should mention that I tried meat flavored potato chips.

They were super gross. ha seriously, yuck! They would not sell at USU!

Environmental Influences

I noticed that environment is a big deal to South American companies and the very way of life. Companies and individuals are careful about how much electricity and water they use, and are proud of being environmentally friendly.

In Chile, we visited an avocado packaging plant called Avomex. Avomex used many natural resources in its processes and was a great example of how to use resources to become more efficient. They built cracks into their floors for excess water from processes to run off into. Once the water is in the cracks, it follows a track to storage. The water then goes through a water treatment process and is released back into the community cleaner than it was before. By being conscious of their processes, this company has created a system allows them to reuse and recycle water. They also use natural sunlight to light up several of their storage rooms in the packing facility.

The natural environment played a huge role in the architecture and atmosphere of Brasilian business. Companies used natural resources in their processes, made special efforts to contribute back and be environmentally friendly, and designed their site around beautiful natural surroundings.

For example, this group of us are on the site of Banco Itau, a large and prestigious Brasilian bank. This pool of water with fish, fountains, reeds, and surrounding greenery was in the middle of the company site. It was beautiful!

The atmosphere around Banco Itau was extremely busy and people rushed about everywhere. This pool added value to the company simply because of its beauty and sense of peacefulness. If I was an employee at the company, I would find peace in stopping here around lunch and just look, take in the beauty, and regroup. It was refreshing! It was calming. This is a definite pro of integrating natural beauty into your business--boosting employee morale.

We visited a cosmetics company, Natura, who used environment not only to beautify its corporate site, but in its production. This company produces natural cosmetics--everything is organic. It prides itself in being very environmentally friendly and natural. Natura stresses its triple bottom line which includes responsibility for profit, employees, and environment/community.

Natura wants to be a sustainable business and has incorporated environmentally friendly processes. Natura's suppliers use biodiesel. Water used in their processes is sent to a water treatment station to help save and reuse water. The garbage goes to a facility to be recycled.

All of their products are natural. Natura is the first company in the world to use organic alcohol in their perfumes, which they have done since 2007. It costs the company double the money to use the raw materials necessary, but the organic alcohol is better for the environment. They have begun to sell product "refills" because it is better for the environment.

Their site was beautiful as well. Their plant was located in the middle of a very large, very green, and very open area. There were natural looking creeks and lots of plants and flowers located between their facilities. Behind the plant, was a huge forest! We looked straight into a mountain covered in green trees as far as the eye could see.

There are some benefits to being environmentally conscious. It can be a competitive advantage for a company to sell organic products, especially in this current consumer phase to "go green". It can be advantageous for your workplace to have a pleasant and pleasing appearance for your employees and to impress investors. Investors, customers, and the general community also like to hear that the company considers other ends besides profit and company self-interest. It can be valuable to invest some time, money, energy, and considerations into the environment, and actually reap respect and monetary benefits in the form of investment or expanded customer base.

Past a certain point, however, being too environmentally "friendly" becomes more and more costly without reaping a large enough benefit. Natura spends a lot of money trying to be environmental and increase its image, but without adding any real value to the consumer, and therefore some of their expensive and costsly practices add little value to the company.

Promotion Techniques

Cosmetics are used to cover up blemishes on one's face, and to enhance an individual's appearance. Cosmetics and makeup are really about appearance and putting on a show. One of our most interesting visits was to Natura, a cosmetics company located in Brasil. They not only produce and sell cosmetics, but the way they use their promotion works just as cosmetics do to cover up the weaknesses of their own company. Their entire company seemed to be hiding under the surface makeup of appearances.

We toured the plant, and were given lots of information about their production and processes. Some problems and challenges of the company were identified. Our company guide always came back, however, to how great Natura was. She focused on the volume of their production, and their number of sales consultants. She talked about their goals for increasing sales consultants. She talked about how great Natura was in its environmental awareness policies. Natura is the first company to use organic alcohol in its perfumes and recycles a lot of its natural wastes. These benefits were stressed over and over again, as well as their vision and ideal to help their customers "be well" with themselves.

We did not, however, discuss much about their wastes, inefficiencies and wastes on the production line, overproduction, overstocked inventory, amount of error in production and shipment, number of active or retained consultants, or actual growth in sales.

At the end of our tour, we came in a conference room for snacks and watched two videos about Natura's goal and vision that "one day" we will all live in peace and harmony. The video had little to do with Natura's actual business or products. It did, however, make you feel good after watching it! If you didn't stop and think critically about the video, it could be very effective in leading you to trust Natura for their good vision and intentions.

The campus and surroundings of the company were very beautiful. On the outside surface, paying attention to Natura's appearances, everything looked great. Natura promotes an image. They sell a product, but promote an image. It was very interesting to see!

The company in charge of Peruvian tourism and exports, PromPeru, is very dependent upon promotion. When we got to our visit, we were each given a Peru tote bag filled with goodies representing Peru. We watched a promotional video that showed the many different attractions of Peru. Because there is so much diversity in the country, PromPeru says they promote Peru to everyone, in different ways.

PromPeru identifies its priority markets. They can do this by tracking the profile of tourists who visit Peru. For example, they can track the age, income, gender, amount of money, and number of days spent in Peru by U.S. tourists. By doing this, PromPeru can find out what parts of Peru are most attractive to this market of tourists, and market directly to them. PromPeru can do this to several different customer groups, and promote Peru according to group preferences.

PromPeru uses travel agents as an intermediary to promote Peruvian tourism to tourists. PromPeru works with travel agents to help them sell Peru. PromPeru also does things like prepare promotional commercials to boost awareness and interest in the country's attractions. They also give away Peruvian merchandise. :)

Promotion must be individualized to the customer in order for it to be effective. Promotion is a powerful tool that both of these companies are strategically using for their purposes--to increase appearances and to increase sales.

Shopping!

Part of the travel experience is shopping... and I had no problem shopping in different venues! It was interesting to see the effects of atmospherics in shopping around the South American countries.

There were a lot of street vendors in Chile, and many indoor shops, similar to a flea market atmosphere. We spent a lot of time walking around little outdoor and indoor shops that were part of a bigger shopping complex. There were a lot of little independent venues selling jewelry, accessories, and various trinkets.

Brasil: Open Air Markets

Particularly, there were a lot of open air markets along the beaches in Brasil. Little kiosk-y venues sold food, drinks, jewelry, swim suits, wraps, windchimes, and beach necessities such as sunglasses and lawn chairs. Little shops were all over in the sand. Individuals set up displays and sold items along the sidewalk. Other sellers walked throughout the beach and came right up to you to sell an item.

Shopping here was easy, because the vendors came right up to you! This increased some social pressure to buy! Plus, being on the beach, purchasing something felt like a tourist-y thing you needed to do. Also, on the beach, it felt so carefree that it was easy to part with a few Reis.

At these types of open air markets, price was a relative thing that could be bartered and compromised. The vendors definitely target the tourists, who are perceived to have a lot of money and a lack of complete understanding due to a language and culture barrier.

Lima: Oceanside Mall

In contrast, there was the shopping mall. In Chile and Peru I went to a bigger mall that is more like what we are used to in the states, with department stores and retail shops. The bigger malls had advertising and lighting similar to the malls in the U.S. There were big posters with models wearing the jewelry, clothing, or perfume. I felt a sense of familiarity to be at the larger malls. Many times, I saw the influence of American culture in the music, brands, and style.

These shops sold their items at a much higher ticket price than the little independent venues and street side market. The price felt more concrete--you wouldn't think about haggling the price further down. The higher and set prices gave a sense of familiarity, security, and quality. In this environment, I felt like I would receive a quality of item associated with the higher price.

Specifically in Peru, we stopped at a shopping mall that was along the coast. It was beautiful! The location gave this shopping mall a luxurious feel. The atmosphere felt a little upper crust. This mall had higher priced items, but as mentioned earlier, the price went along with the whole atmosphere. Walking into the mall, it was obvious that it was a higher-end shopping center.

Cusco: Market

We spent part of our time in Peru in Cusco and the Sacred Valley. In this area, there were many markets, but these had a totally different feel than any of the Chilean or Brasilian markets. These markets were run by the native people of the area. The Indigenous culture of the people totally influenced the entire feel of the market. Most items in these markets were handmade. Most the items were representative of a culture. There were blankets, rugs, teddy bears, sweaters made with Alpaca wool. There were trinkets and jewelry that represented cultural symbols and way of life.

The thing about this market was that the culture of the people is what made it so special and different. The feel was totally different. The items and selling were largely directed towards the tourist. Even the colors of items and setup of the market were culturally significant. Prices were very relative and compromisable. Part of the shopping experience was actually in that price compromising! Buying goods from these markets made you feel like you could also get a glimpse of their way of life, and partake a little bit of their culture.

It was interesting to compare the different types of markets and shopping experience throughout Chile, Brasil, and Peru, and compare them with what we are used to in the United States. The atmosphere totally has an effect on buying behavior and purchasing decisions.