Online reputation analysis
Online reputation analysis

With Your Own Rulebook: Why a Company’s PR Strategy May Fail When Entering Foreign Markets

With Your Own Rulebook: Why a Company’s PR Strategy May Fail When Entering Foreign Markets

The primary objective of PR is to build trust in a company and lay the groundwork for long-term partnerships. Every tool in the public relations arsenal is aimed at achieving the best possible outcomes. However, when entering new markets, companies may face challenges due to a lack of familiarity with local business practices. The business culture of one country can vary significantly from that of even its closest neighbours. As a result, for companies expanding internationally, promotion becomes a complex, multi-dimensional process.

In many cases, PR strategies tailored to national markets are overseen by regional managers, with coordination provided by the organisation’s central headquarters. This approach ensures that local nuances are considered during marketing campaigns. Nevertheless, it’s crucial not to overlook the core principles and strategies of public relations when expanding into new markets. Let’s delve into this in more detail.

Objectives and General Approach

The core aim of effective communication and PR is to enhance the target audience’s awareness of the brand and cultivate a positive image in the media and the broader media landscape.

PR efforts are focused on:

  • Establishing an online and offline presence of the brand through its unique benefits and attributes
  • Boosting brand recognition at both national and regional levels.
  • Building long-term, stable and positive connections with media outlets to ensure favourable coverage.
  • Drawing in new customers while also maintaining the loyalty of existing ones.

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    Why Brand and Reputation Matter

    Unfamiliarity breeds rumours, which ultimately disorient the audience. The lack of official information can lead to misunderstandings about the brand and its products and services. Furthermore, positive media coverage of a company’s activities benefits not only clients but also other stakeholders, including investors, journalists, and other interested parties.

    Government bodies and regulators, such as central banks, chambers of commerce, and supervisory authorities, play a crucial role in a company’s operations. A strong media presence contributes positively to interactions with these entities. Business partners also take into account the extent of a brand’s media visibility. Large organisations closely monitor business media opinions of market players. Companies concerned with their reputation often perform due diligence on potential partners, focusing primarily on business publications.

    Reputation is also vital for attracting investment. For example, in June 2024, SpaceX’s valuation soared to $210 billion, making it the world’s second most valuable startup. This success is largely due to SpaceX’s innovative positioning and the influence of its founder, Elon Musk.

    Moreover, a robust media reputation serves as a safeguard against negative information. Publishing unfavourable content about well-established companies can backfire on the media outlet itself. Friendly or neutral content—such as articles on professional topics, social initiatives, environmental projects, and funding for scientific research—helps mitigate this risk.

    Lastly, a positive reputation helps attract top talent. Employees take pride in working for reputable organisations, associating them with higher salaries, better training opportunities, and career advancement prospects compared to competitors.

    Target Audience

    Planning an effective PR campaign involves understanding and addressing the interests of all relevant stakeholders. Activities should be tailored to fit the specific characteristics of the regional market. Depending on local factors, communication may need to focus on:

    • Government bodies and regulators
    • Clients and customers
    • Business partners
    • Media
    • Investors
    • Potential employees

    When engaging with audiences in different countries, it is crucial to consider various local factors. These can include cultural attitudes, levels of censorship, legal restrictions on content, and sensitive topics or imagery. For instance, in China, the number 4 sounds like the word for “to die,” while in the Middle East, PR campaigns must adhere to Sharia law.

    Political considerations are also important. For example, in July 2024, Palestinian supermodel Bella Hadid faced criticism for participating in an Adidas ad that referenced a 1972 sneaker model. This model was associated with the Munich Olympics, during which Palestinian militants attacked Israeli athletes, leading to backlash from both Israeli and Arab audiences.

    Tips for a Young Company

    To execute a successful PR campaign, understanding the fundamentals of promotion and using the right tools is essential, even when accounting for local nuances. Here are some key recommendations for developing and strengthening a corporate brand:

    Content

    A strong content strategy is vital for effective media engagement. Unique and valuable content helps set your company apart and attracts your target audience. Ensure that your content is relevant and your messaging is clear. Beyond showcasing products or services, offer insights and expertise, potentially featuring contributions from company leaders.

     

    Key platforms for distributing your content include:

    • Company Blog: Maintain a dedicated blog on your website, divided into sections such as “Blog” and “News.” Use the blog to share engaging stories about your company, provide expert opinions, and offer useful advice and recommendations. The “News” section should feature official announcements and media coverage (“In the Media”).
    • Press Releases and Newsletters: Regularly publish press releases on your website to keep your audience informed. Complement this with online newsletters that deliver fresh and relevant content. Newsletters can serve as industry news digests, keeping your audience engaged and informed about developments in your sector.
    • External Blogs: Contributing to external platforms can enhance your company’s visibility and attract new audiences. Carefully select reputable platforms with strong local authority to maximise impact. For instance, platforms like Finextra host content from major players in the finance sector.

    Online Reputation and Digital Profile

    A solid reputation is essential for successful business operations. In today’s competitive landscape, how a company is presented online is critical. According to a Brunswick survey of digital investors, 88% of investors base their decisions on online information. Consequently, establishing a digital profile should be one of the first steps when entering a new market.

    Your digital profile should effectively convey your brand’s identity. Search engines predominantly display company profiles on social media, official websites, online directories, and media mentions. Therefore, it is crucial to set up and optimise your social media profiles and secure media coverage early in your PR efforts. Ensure that all information is up-to-date, and maintain a positive or neutral tone.

    Additionally, it’s important to manage the company’s presence on review platforms and respond promptly to customer feedback. Pay particular attention to local and niche review sites. Engaging with both positive and negative reviews is vital. Positive reviews not only enhance the appeal of your products or services but also improve your company’s reputation and attract new customers. On a five-point system, a score above 3.9 is considered high, and a score below 3.5 is viewed as low. 

    To quickly assess your online reputation, conduct a search query such as “company name” or “company name reviews” in the local language. Keep in mind that search results are personalised based on previous searches and may vary by location and device (mobile or desktop). For a thorough evaluation of what external users see, consider using specialised tools that offer both free and premium versions. For example, you can perform a free online analysis on ADVES’s main page: https://adves.com/en/.

    Building Relationships with the Media

    The first step is to determine which media outlets will be most effective for collaboration. Media can be categorised by audience reach into local, regional, national, and international levels. Additionally, publications can be general or specialised, targeting niche audiences such as finance professionals, business executives, or legal experts.

    When selecting media partners, consider the needs and interests of your target audience. Your strategy for engaging with editorial teams should be comprehensive and align with the editorial policies of each publication. Securing coverage in relevant news outlets can significantly boost trust in your company.

    Prioritise media outlets and journalists who show genuine interest in your company’s activities. Partnering with a well-known entity that already has a strong reputation can enhance the effectiveness of your communication. Such established partners can help build audience trust and create valuable associations for your brand.

    According to Bristol Strategy Inc, issuing a joint press release with a partner can provide substantial referral value for a company entering a new market. This approach not only improves the perception of the new brand and increases its visibility but also attracts additional audiences. The Haas School of Business at UC Berkeley, California, echoes this sentiment, viewing business partnerships as a strategic tool for mitigating crises.

    This long established and prestigious seat of learning is recognised for its Global Management Program which blends rigorous business and general education with broad cultural understanding, preparing undergraduate students to lead in such areas as financial services, communications, social sector solutions, foreign affairs, and management consulting.

    Successful brand promotion is supported by a network of reliable media partners with a solid regional reputation. These partners can assist in organising and promoting PR events, as well as distributing information about upcoming or recent activities. Additionally, publications might be involved in creating partner content, which can rapidly build the necessary level of trust with your target audience. This content might include detailed reviews of your company’s products or services on external platforms, accompanied by positive feedback.

    Brand Promotion on Social Media

    Social media has become a vital communication tool, with its global audience exceeding 4.7 billion in 2023—nearly tripling in the past decade, according to a Kepios report. Even in developing countries, social media penetration ranges from 32% to 70% of the population. The average age of both male and female members of the audience rarely falls below 40. This demographic trend underscores the importance of leveraging social media as a crucial tool for promoting a corporate brand.

    To leverage social media, first identify the platforms that best suit your content distribution needs. The main criterion should be their ability to engage your target audience effectively. Each platform offers distinct advantages and requires different content formats, so choose based on your promotional goals.

    • For reaching large audiences internationally, platforms like X (formerly Twitter), Facebook, and Instagram are particularly effective. For instance, Coca Cola has over 100 million followers on Facebook.
    • To engage with a professional network, focus on LinkedIn or Facebook for Business.
    • Consider also using platforms like Reddit for international markets and business versions of youtube.com, quora.com and tiktok.com which can be localised from country to country. They all host content from major global companies and media outlets, including newspapers and news agencies.

    Consistency and a systematic approach are crucial for effective social media presence.

    YouTube plays a unique role in online promotion, offering the advantage of video content for detailed visual presentations of your brand’s products. Video reviews are highly popular, with Google reporting that 68% of YouTube users use the platform to make purchasing decisions.

    Partnerships are particularly valuable on YouTube. Providing products for review to well-known local influencers with established reputations can be an effective strategy when entering new markets. It’s important to carefully select influencers whose persona and content align with your brand. Each post should include relevant hashtags to increase visibility and attract additional audiences.

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      Be aware of potential restrictions on YouTube in certain regions. For example, in China, access to YouTube requires a VPN; otherwise, content should be uploaded to the local platform, Youku. Similarly, in July 2024, Russia reported possible disruptions to YouTube, with users and content creators advised to switch to alternative platforms such as Rutube.

      Offline Events

      Traditional offline events continue to be a powerful and versatile communication channel. The key advantage of these events lies in the opportunity for face-to-face interaction, which fosters deeper engagement and connection. Personal meetings significantly enhance trust with your target audience and offer a unique chance to introduce your product to new customers.

      Moreover, offline events are crucial for establishing and nurturing relationships with government bodies, which is essential when expanding into new markets. These gatherings also provide a platform to engage potential partners and offer clients an in-depth understanding of your products. The value of personal interaction far surpasses what can be achieved through articles or video reviews alone.

      Crisis Management and Social Responsibility

      In times of crisis, it’s vital to steer clear of rash decisions. The key role of regional managers during such situations is to ensure seamless coordination with headquarters and crisis management teams to adapt the overall brand strategy as needed. 

      A clear and well-structured crisis response plan is essential, with all involved parties fully aware of their roles and responsibilities. Executing this strategy effectively can help the company weather the storm with minimal reputational damage—or avoid it entirely.

      Long-term business resilience is closely tied to the level of support from the society a company enjoys. As businesses grow closer to their audiences through media, societal expectations of corporate behaviour increase. A study by Harvard Business School found that 77% of consumers prefer to buy from companies committed to making the world a better place. Investors share this sentiment, with 73% stating that efforts to improve society and the environment attract capital. Corporate Social Responsibility (CSR) programs are key to meeting these expectations, particularly in new markets.

      For CSR programs to be effective, they should:

      • Target support for vulnerable groups (such as those in poverty, disaster victims, and families with disabled children) or other socially significant initiatives, providing meaningful assistance.
      • Be implemented consistently, with transparent and comprehensive reporting.
      • Focus on long-term, sustainable outcomes.
      • Align closely with the company’s core business objectives and mission.
      • Foster collaboration with other companies to expand the reach and impact of initiatives.

      CSR initiatives represent a self-regulating business model that ensures a company remains socially accountable—to itself, its stakeholders, and the broader community. Engaging in socially responsible activities demonstrates the company’s commitment not only to profitability but also to the well-being of society at large. As the brand grows, so too should its social responsibility, encompassing environmental, social, cultural, and financial initiatives. The specific focus of CSR efforts should be tailored to the conditions in the regions where the company operates.

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