Monday, November 4, 2013

The Doughnut of National Preference

One of the ideas I try to get across to my students in my Business Policy and Strategy class is that different people in different markets and segments want different things, and pretending that they don’t – pretending that everyone in the world wants exactly the same things – is just as absurd as pretending there is anything wrong with that. I’ve often pointed out that people are people wherever you go, and that when it comes to the really big things (survival, security, acceptance, community, acknowledgements) we all DO want the same things, but when we get down to issues like consumer preference we’re no longer talking about what it means to be human; we’re talking about things like how much sugar is produced within a given consumer’s home country. I often make that point using a short story about doughnuts…

When I was a graduate student (both times, actually) I was part of a study group that met every week to go over some of the more impossible aspects of our course of study, and we all took turns bringing snack foods to the meeting. When it was my turn I would usually bring doughnuts, because they are filling, taste good, and can be economically obtained in large quantities. However, I rapidly noticed that different members of the group had different ideas about what constituted a good pastry. My friends from China, for example, told me that American people put too much sugar on everything – which makes perfect sense when you realize that neither sugar beets nor sugar cane are native to China. Accordingly, there is no local equivalent to the gooey pastry beloved of Americans and some European nations. From then on I made a point of buying plain cake doughnuts, without frosting or filling, and our Chinese friends loved them; they said it was the best snack food we had in America…

Our Korean students loved the doughnuts with the thick white icing and colorful sprinkles; even some of the women who had never been known to eat junk food (or much of anything else, actually) could be counted on to have one or two of these. Some of the Northern Europeans like icing and frosting more than anybody else, and I made sure to have some for them, while the Eastern European nations go in more for light and flaky pastry and fruit fillings – powdered sugar doughnuts, lightly glazed doughnuts or occasionally jelly doughnuts or apple fritters went over big here. And, of course, my fellow Americans love anything frosted with sugar, chocolate, glaze, icing, filling, cream, maple syrup, or all of the above at once, which made it relatively easy to round out my order…

Over the years I’ve come to refer to this as Belin’s Doughnut of National Preference – which is a reference to Porter’s Diamond of National Advantage; a well-known construct developed by Dr. Michael Porter at Harvard to account for why some nations are more successful in international trade competition than others. Unlike the better known Diamond construct, I can’t back my Doughnut up with anything more concrete than many years of personal observation, but there was an article this past week that does seem to support my thesis. The Viral Nova website published at list of foreign snack foods, complete with pictures, and I call your attention to #5 – the Dry Pork and Seaweed Doughnut offered by Dunkin Doughnuts in China – and to #12, the Wasabi Cheese and Seaweed Cheese Doughnuts offered by Dunkin in Singapore. While certainly not conclusive, this information does appear to support my contention that different people have different ideas about what constitutes a good doughnut…

Now, I don’t mean to suggest that this observation is particularly deep or especially profound; in fact, it’s about as simple an explanation of National product preferences as you could ask for. But then, that’s the point: finding out what your customers in a specific country, state or city prefer is a painstaking activity that will require considerable research; recognizing that they have unique preferences, and that these may very well NOT be the same as your own preferences, is as simple as sharing doughnuts with your colleagues on a rainy afternoon and watching what each of them likes to eat…

No comments: