Cross Cultural Marketing

This assignment explores the concept of cross cultural marketing and its impact on business expansion. It discusses the importance of social and cultural factors in the marketing mix and provides insights into the best market entry strategies for successful business expansion. The case study focuses on Ragus Sugars, a medium-sized organization planning to expand its business in UAE.

Cross Cultural
Marketing

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Social and cultural factors and the marketing mix......................................................................3
Market entry strategies................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Cross cultural marketing can be defined as the process of performing marketing activities for
various customers who belongs to different cultures. With the help of it companies can market all
the products and services for those clients who are living in different countries and considered as
the part of targeted segment (De Mooij, 2015). The countries which are selected for the analysis
are UK and UAE and the company which is selected for thus report is Ragus Sugars. It is one of
the medium sized organisations established in United Kingdom. Now the organisation is
planning to expand its business in UAE. This assignment covers various topics which are cross
cultural analysis, social and cultural factors with marketing mix etc. Apart from this, different
market entry strategies are also covered in this project.
MAIN BODY
A cross cultural analysis
A cross cultural analysis is analyzing different types of cultures so that effective
strategies for performing marketing activities could be formulated. With the help of it, business
entities can attract large number of customers. Main objective of this section is to analyse
different elements of Hofstede’s cultural model in context of UAE and United Kingdom. This
model is a framework which is used for cross culture communication and it was introduced by
Hofstede in year 1980. With the help of it companies can analyze the effects of society’s culture
on the business activities (De Mooij, 2018). In order to reach to the targeted success, it is very
important for the business entities to assess the culture which is followed by the customers. It
will help to meet their expectation level and fulfil their demand by providing them such products
which could be bought by them to satisfy their needs. There are six different elements of this
model which are discussed below in context of both the countries:
Power distance index: This element of the analysis is based upon the degree of power of
an individual in the society. There are two type of individuals in the society one who are having
their separate place in the societal hierarchy and others who are not having any power of sharing
their opinion with others. UK and UAE are totally different from this point of view because in
United Kingdom all the individuals have right to share their opinion with the superiors of the
organization. On the other hand, in UAE the subordinates do not have right to share their ideas
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with management. This side of the culture will be required to be analyzed by the organization
while expanding business in UAE.
Individualism Vs. Collectivism: It can be defined as the behavior of individuals
working within the organizations under a culture. In UK people tends to work in groups but on
the other hand in UAE people follow the individualism culture as they want to grow by focusing
upon their personal goals, roles and responsibilities. While expanding business in UAE it is very
important for the organization to make sure that it forms organizational culture according to
individualism to enhance their engagement level (Gillespie, 2015).
Masculinity Vs. Femininity: It refers to the distribution of tasks among male and female
staff members. The countries which are following masculinity culture provide tough tasks to
male as compare to female employees as organizations consider them less powerful. The nations
with Femininity culture make sure that men and women staff members get equal opportunities
for accomplishment of organizational goals. In UK femininity and UAE masculinity culture is
followed therefore it will be vital for the management of Ragus Sugars to make sure that it
formulates policies according to it
Uncertainty avoidance index: It can be defined as the element which describes the way
in which individuals can cope with anxiety at workplace. In UK people score high uncertainty
avoidance index as they believe in making their life controllable and predictable. Individuals in
UAE cant find solutions for their problems properly as the uncertainty avoidance index is very
low. For the business expansion in UAE it will be very important for Ragus Sugars to formulate
such strategies which may respond to the culture of the new country (Goodrich and De Mooij,
2014).
Long Vs. Short term orientation: The countries which are having long term orientation
are considered as more modest and programmatic as compare to other nations. The nations
which are having short term orientation’s individuals replay upon consistency, truth, principles
etc. UAE s having short and UK is having long term orientation therefore management in Ragus
Sugars will require to formulate strategies according to the principals which are followed within
the country.
Indulgence Vs. Restraint: The countries with indulgence culture encourage free
gratification of individuals emotions and drives for example it allows them to have fun and enjoy
life. On the other hand, the nation’s following restraint culture keep control over people’s
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behavior and conduct and the norms in such countries are very strict. UK is following indulgence
culture but UAE is having restraint culture which results in strict regulations. In order to expand
business in the country for Ragus Sugars it is very important to pay attention towards culture of
UAE.
Social and cultural factors and the marketing mix
While expanding business in a new location it is very important for all the organizations to pay
attention towards social and cultural factors as it can help business entities to establish the
business successfully. Main objective of this section is to analyze the important of social and
cultural factors along with marketing mix for a company which is planning to establish itself in a
new location (Kasemsap, 2015). As Ragus Sugars is planning to expand its business in UAE
therefore it will be very important for it to take social and cultural factors in to consideration so
that its products could be adopted by citizens of nation. Some of the major elements which
should be focused by the management are as follows:
Belief, values and customs: While expansion it is very important for an organization to
gather information about belief, values and customers of the county where business will be
expanded. It can help to attract large number of clients and attain success for enterprise. The
regulations regarding customs in UAE are very strict therefore while expanding business it will
be very important to formulate organizational policies according to them. It will help to attract
large number of customers and achieve long-term success for business. If the mangers of the
company will ignore these cultural factors then it may leave negative impact upon business.
Taste, preference and needs of customers: While expansion of business in a new location it is
very important for business entities to make sure that they are paying attention towards social
factors as by focusing upon them large number of customers could be attracted. Individuals in
UAE have different taste, preferences and needs from UK’s citizens therefore it will be essential
for Ragus Sugars to make sure that it is formulating its business strategies according to these
elements as with the help of them the company can attain success. If these are not taken in to
consideration while formulating strategic decision for future then it may leave negative impact
upon expansion (Kaynak and Herbig, 2014). One of the main unfavorable impact of it will be
failure of expansion which will also return in losses for the company and due to this financial
crisis could be also be faced in upcoming period. In order to ignore these challenges in future the
management will be required to take all of them in to consideration and keep detailed
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information about taste, preferences and needs of people. For this purpose, the managers can
plan to conduct market research which will be beneficial for gathering information about
customer’s demand.
Demand and supply in the market: While expanding business in a new geographic
location it is very important for an organization to analyze the supply and demand of the
products and services which will be offered to the clients in the new market. If these are very
high then it will help to establish the business successfully. In UAE demand of sugar is very high
therefore it will be a great opportunity for Ragus Sugars to expand its business in UAE and
establish the business appropriately. By analyzing the market demand organization will be able
to generate profits and attain the objective of customer satisfaction.
While expanding business in UAE it will be very important for Ragus Sugars to analyze
all the above described social and cultural factors will be required to be analyzed so that business
could be established appropriately. In order to analyze all of them it will be very important to
conduct a market research which will guide managers to assess the customers taste, preference,
needs and requirements (Li, 2014).
Marketing mix: It is a marketing strategy which s focused with different elements. In
order to attract large number of customers it is very important for all the companies to pay
attention towards all the components of it. With the help of them, the prospect clients could be
targeted and overall profits of company could be enhanced. All the elements of it are product,
price, place, promotion, people, process and physical evidence. While expanding business in
UAE it will be very important for Ragus Sugars to pay attention towards all of them. Description
of them in context of the enterprise is as follows:
 Product: It is first and foremost element of marketing mix which is the items which are
sold by an organization to the customers. As Ragus Sugars is planning to expand business
in UAE therefore it will be very important for it to make sure that all the products which
will be sold by it to the customers will be able to attract large number of customers. The
main thing which is required to be assured by the company is quality of all the sugar
products that are going to be offered to clients as lower quality may leave negative
impact upon their mind set (Moon, Lee and Oh, 2015).
 Price: When an organization is willing to attain the objective of customers attraction it is
very important for it to make sure that the price which is set for all the products and
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services is appropriate and able to attract customers. For Ragus Sugars it will be very
important to use best suitable pricing policy while expanding business in UAE. The
company is recommended to use penetration pricing policy as it will help to set lower
price at initial level and with increment in the demand the company can increase it. With
the help of it the organization will be able to attract large number of customers and
establish the business in UAE appropriately.
 Place: For all the companies it is very important to be easily accessible for all the
customers so that products could be sold by them and revenues could be increased. For
this purpose, the enterprise has decided to manage its distribution channel appropriately
so that its products could be available in the retail stores of UAE. It will help the clients
to buy all the items without issues. It will also help to be the first choice of customers by
easily accessible for them (Papadopoulos and Heslop, 2014).
 Promotion: It can be defined as the main part of marketing in which companies adopt
different strategies to promote the products which will be sold to the customers in future.
As Ragus Sugars is planning to expand the business in UAE therefore it is very important
for it to formulate effective promotional strategies for future. The organization have
decided to adopt the buy one and get one strategy at initial level. It will help to attract
large number of customers and enhance sales of the company.
 People: In order to enhance sales and revenues of an organization it is very important for
the management to make sure that the staff members are having appropriate information
about their roles and responsibilities so that they can contribute in organizational success.
Ragus Sugars have planned to recruit skills and knowledgeable employees from UAE
who can contribute in business execution and help to perform all the operational activities
in systematic manner (Salzberger, Sinkovics and Holzmüller, 2015).
 Process: All the systems and procedures which are used by an organization for business
execution are considered as the part of this element of marketing mix. In order to
establish the business in UAE successfully it is very important for Ragus Sugars to have a
well tailored process so that costs of manufacturing sugar products in UAE could be
minimized. Management of the company have decided to keep detailed information of all
the operational activities and form strategies accordingly so that business procedures
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could be conducted appropriately. It will be beneficial for the company to reach its
objective of attaining goal of higher profits.
 Physical evidence: It is last element of marketing mix in which companies are required
to provide evidence to the customers that all the products which are sold by it are
perceived in marketplace. Ragus Sugars have decided to be easily available for all its
clients so that it can attract large number of customers and establish the business
successfully in UAE.
From the above discussion it has been analyzed that for Ragus Sugars and other companies like it
are required to pay attention towards all the elements of marketing mix while expanding business
in a new geographical location. With the help of it, companies can formulate effective strategies
for future and reach to the business goals such as profit and sales maximization. Apart from this
the objective of higher customers satisfaction can also be achieved by paying attention towards
all the elements of marketing mix (Sharma, 2015).
Market entry strategies
Market entry strategy can be defied as a process of planned distribution of services and
products in the new target market. When business entities plan to expand the business in multiple
countries then it will be very important for them to find best suitable entry strategy so that goals
such as capturing large market share could be accomplished successfully. As Ragus Sugars is
planning to expand business in UAE therefore it is very important for it to find appropriate entry
strategy so that all the operations could be executed properly. Different types of them is as
follows:
 Licensing: It is mode of business expansion which can help business entities to sale their
products in different countries by allowing other organizations to sale their products with
their name. It could be adopted by Ragus Sugars to expand its business in UAE
successfully. The organization can provide license to another enterprise which is already
established in UAE for the purpose of selling its products in the country.
 Franchising: It is also an entry strategy in which an organization franchise its business in
different countries for the purpose of expansion. With the help of it Ragus Sugars will be
able to offer franchise of its business to the external parties of UAE. It will be beneficial
for the organization to expand its business in the country successfully and receive a fixed
amount on yearly basis from its franchisee in the nation.
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 Direct exporting: It is considered as one of the best entry strategies because it results in
lower cost for the company. With the help of it Ragus Sugars will be able to export its
products in UAE to the retailers who will sale them in the market. By focusing upon this
strategy, the company will be able to attain success. The main element which plays main
role in expansion is market image and brand loyalty if it is high then only this option of
entering in to a new market should be selected (Torres, Fu and Lehto, 2014).
 Joint venture: For small and medium sized companies it is considered as the best
method of business expansion as it can help them to sale tehri products and services
successfully. For expanding business in UAE this mode of entry could be used by Ragus
Sugars by making a joint venture with a well-established company of UAE. It will be
beneficial for the enterprise to make the expansion successful.
From the above described modes of entry in the market Ragus Sugars should select joint
venture as it will help to save different costs such as marketing, advertising etc. With the help of
it, success in a new market could be acquired by the organization.
CONCLUSION
From the above project report it has been concluded hat cross cultural marketing is the
process performing marketing activities for the customers who are living in different cultures.
For the purpose of analyzing cultures of two different countries Hofstede’s cultural model could
be used by business entities. All the elements of it can help to differentiate the values and beliefs
of two different nations. While expansion it is very important for organization to make sure that
cultural, social factors, marketing mix and entry strategies are focused by it. With the help of all
of them success in the market could be acquired by business entities.
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REFERENCES
Books and Journals:
De Mooij, M., 2015. Cross-cultural research in international marketing: clearing up some of the
confusion. International Marketing Review. 32(6). pp.646-662.
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
Gillespie, K., 2015. Global marketing. Routledge.
Goodrich, K. and De Mooij, M., 2014. How ‘social’are social media? A cross-cultural
comparison of online and offline purchase decision influences. Journal of Marketing
Communications. 20(1-2). pp.103-116.
Kasemsap, K., 2015. The roles of cross-cultural perspectives in global marketing. In Analyzing
the cultural diversity of consumers in the global marketplace (pp. 37-59). IGI Global.
Kaynak, E. and Herbig, P., 2014. Handbook of cross-cultural marketing. Routledge.
Li, M., 2014. Cross-cultural tourist research: A meta-analysis. Journal of Hospitality & Tourism
Research. 38(1). pp.40-77.
Moon, B. J., Lee, L. W. and Oh, C. H., 2015. The impact of CSR on consumer-corporate
connection and brand loyalty: A cross cultural investigation. International Marketing
Review. 32(5). pp.518-539.
Papadopoulos, N. and Heslop, L. A., 2014. Product-country images: Impact and role in
international marketing. Routledge.
Salzberger, T., Sinkovics, R. and Holzmüller, H., 2015. Problems of equivalence in cross-
cultural marketing research. In Proceedings of the 1997 Academy of Marketing Science
(AMS) Annual Conference (pp. 74-78). Springer, Cham.
Sharma, P., 2015. Consumer ethnocentrism: Reconceptualization and cross-cultural
validation. Journal of International Business Studies. 46(3). pp.381-389.
Torres, E. N., Fu, X. and Lehto, X., 2014. Examining key drivers of customer delight in a hotel
experience: A cross-cultural perspective. International Journal of Hospitality
Management. 36. pp.255-262.
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