This article discusses the impact of cross-cultural analysis on marketing strategies and market entry strategies for international expansion. It explores the Hofstede Cultural Model and social and cultural factors that influence the marketing mix. The article also suggests market entry strategies such as direct exporting. Read more on Desklib.
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Table of Contents INTRODUCTION...........................................................................................................................3 A Cross cultural Analysis................................................................................................................4 Hofstede Cultural Model.............................................................................................................4 Social and cultural factors and marketing mix................................................................................6 Market entry strategies.....................................................................................................................8 CONCLUSION................................................................................................................................9 REFERENCES..............................................................................................................................11
INTRODUCTION Cross culture is usually considered as a relevant comparison between two different qualitative lifestyles and individualism. This has to be understood in terms of business it is seen that many companies make these efforts so easily to communicate with having different cultural background and after accepting all such business opportunities are enhanced and proper product is launched in market. This project is actually an extension of course work 1 which is fulfilled on topic of cross culturalanalysis giving a brief description about different techniquesand traditional methods. In chosencountriesparticular difference given is aboutUnited Kingdomand India(GĂźss and Teta, 2018).Themost prominent objective of this whole project is to understand cultural difference and influence marketing strategies of each.Marks & Spenceris chosen as organisation which is being extended inIndiawithproduct of women fashion of every age group& gap.Marks & Spenceris a big organisation which is actually based inUnited Kingdom as a multinational manufacturer, retailer and a designer of certain casual wears in country. This company was formulated in year of1884and is based as their headquarters inLondon,United Kingdom.This report will give gist of cross cultures and challenges faced by an organisation to expand in a total culture change and make strategic plans which will help them in stabilizing their brand and then generate good amount of profits from them.In this case Marks and Spencer is seeking to expand in India and they shall utiliseHofstede Cultural Modelto work out strategies and plans. This report will be providing a deep description overall specific cross- cultural analysis and several techniques which are used for justify each aspects difference and a proper basis of social and cultural factors upon chosen Nations. Reader in this report will get a proper social and cultural examination is done which actually influences behaviour of customer towards product or any other service. Later in file proper strategic policies are created which will help companyto expand properly in India.
A Cross cultural Analysis Hofstede Cultural Model Asprovidedbeforeincw1,Hofstedeculturemodelisbestandmostappropriate framework model which is actually help an organisation and individual which has certain values, offerings and proper culture of an organisation which will directly influence culture of different countries. It will help in exploring difference between two Nations, basic believes and non switch off followed by them and can actually relate to each other and impact from their products and several other services of country. It is very crucial for an organisation likeMarks & Spencer have to analyse and create certain strategies and pans which will match cultures, beliefs and society of India and then only think to make certain changes in presenting clothing line. They will offer certain kinds of product lining for women in clothing section, India women are more sophisticated and like to dress-up sober and traditional in general.Significantly perception of women in these countries is totally different and offerings this organisation wants to create should begenuine &systematic analysis and after considering model which is discussed below: Individualism Versus Collectivism: This particular element is related to individuals in a country and what country is actually inter dependent upon. This is for moreelaborated as a perception of general public,looking upon themselves or other individuals. General example most of collective socialist or any other individual who has a very strong belonging or is having a very huge group generally encourages people to think more about what societyâs perception will be before making them understand about their personal interest.This usually makes a person think more towards country and make them look upon society rather than their own choice, it makes a huge impact upon their dressing opinion and selection of choosing brands. Incontext ofUnited Kingdomsociety in country is generally bend towards more of individualism and society is having opinion of taking care of self-importance before looking upon does societies prospective. Where actually a slight hinge of sense of society is as sum of decisions are taken as per guidelines take in over there in their personallifestyle.Thiscouldactuallydirectlyreflectuponseveralofthingsdoneby organisation and would be depending upon several trends which company has created inUnited Kingdom.They shall offer traditional and more sophisticated look of their clothes as well as their own western collection, this gives huge choice in market and have more options to choose within (Lu and et. al., 2019).
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In comparison toIndiathey have very local and medium class society which do not take clothing as a lot of consideration in high fashion standard, here people think about society,the environment they belong from and perspective one might have of choosing their personal clothing choice.The countryhas a strong levelof narrow mind people who prefer women in more covered structure and something which is not body-conning their figure, revealing dresses and clothing line are usually avoided. Women here prefer to dress more subtle and still in most rural areas western choice clothes are avoided or dejected.This directly effects plans and tactics chosen by organisation in launching their product in such market. It creates ahuge difference in clothing line given by Marks and Spencer as they shall avoid such clothes which fall under revealing or body-con type. Masculinity Versus Femininity: This particular element which is provided in this cultural model is actually reflecting upon general preference which is made by society or towards society and is present in this Nation. For a simple example generallysociety in India is male centred in nature, it has been changing with time but usually their proportion in opinion and dominance is more than women, this takes away preferable right of women in clothings and dressing up.This generally means that society is considered to be highly competitive in nature they have a proper relation withthe similarity and they are totally concerned about modesty, considering quality of maintaining a life within society and keeping lifestyle in a proper corporation (Chopik and Kitayama, 2018). in context ofUnited Kingdomthey arenot so much in masculinity of societybut competition among several of such group is very much evident in nature.Thequality of products which are generally offered by organisation is usually based upon competition and make sure that these strategies of keeping competitive prices are always ahead then actual market price. Similarly inMarks & Spencerthey provide proper low rate of product as compared to others substitute inUnited Kingdomwhich allows organisation to grab more target market and attain larger share group of people. This technique actually reflects upon fact thatUnited Kingdom is as persociety is in aspect of proper competition and several other strategies likemaking correct preference of both women as well as men preference of clothing. InIndiaparticularly a very balance society which is directly connected to masculinity and femininityin nature.Thesocietywhich is prevailingin country generallyfocuseson a competition where height and element is related to quality of life. In general terms aspect is
usually reflected upon what offer in is given by organisation to country. Forest simple example it is very much evident that a small competition inIndiamight be working in a parallel zone as they focus upon pricing system of society but they also focus on price it is related to so organisations have to give a feasible product in a affordable price. Marks & Spencerneeds to completely changed their strategic formations and strategies to attract customers. Uncertainty Avoidance: In this model is general things which are dealt with are related to making country feel comfortable in uncertainty or ambiguity. This actually focuses on several actions and trends which are going in country and try to avoid any kind of barriers or hindrances which will become big risk in future (Chen, Lee and Hwang, 2018). The society and organisations present inUnited Kingdomare actually bend towards taking several precautions and steps before making any particular decision andbut they do not have a direct or simplified solution as they also take things easily but to work in India they shall consider to take certain precautions and evaluate each aspect before bringing change.All such decisions are taken after a proper market research is performed by them and then only they can analyse future for offering and adopting several strategies in market. InIndiamost focused upon factor of being very rigid and following a proper code of believes in country which directly depends upon moral values and cultural factors. this is slightly changes thinking capabilities of target market in this country. The culture and societya little narrow minded and orthodox in nature and they also are strongly connected to their cultural beliefs.The most prominent difference between both culture is very distinctive in nature and is going to affect this organisation depending upon their fashion appeals in country and they need to avoid making any new kind of experiments for changes innovation which would affect social belief. In this country generally people do not prefer to change their preference in terms of cloth things as it is generally avoided by them so even organisations work with cultural norms of country. Social and cultural factors and marketing mix Marketing mix is generally considered as one of most effective framework which is used by several business organisation to influence behaviour of customers in buying product. This actually includes of several different factors such as product, price, promotion and place which is
usually controlled by the organisation. This actually impacts upon the culture which is reflected by the products and services provided by organisation with different factors of marketing mix. As referring to the specific code and norms inIndiahave a huge impact over products. This is also dependent upon the quality of life one is been influenced in country which relatable effects upon the promotional and the prices offered by organisation. generally there are several other determinant factors which are very different as compared toUnited Kingdomand have a different aspect in marketing mix. Actually to attain successMarks & Spencerhas to change and modify each and every factor as per theIndianorms and then only they can establish their business successfully. All of these factors are briefly described below: Product:Marks & Spencercan target the actual population ofIndiaby launchingindo- western modes of clothing line. This will be finalised by the research team who will visit India to learn about their culture and system of thinking. We have to look up on several trends and prevailing actions which usually restrain the woman in wearing any kinds of extensive Western wears. This actually provides a proper assistance for them to have an appealing prospective in Indiaand establish a very particular and strong image as a brand. Price:Here, price will stimulate a lot as the brand needs to cut some slack towards the general medium class people of India. The target audience for the same is millennials who are within the age group of 18 to 30 and belonging to the medium to higher class in terms of income. Furthermore, it is likely to keep the starting prices fromÂŁ5.3 for the basic apparels of Indian origin. This price is very competitive and can be beneficial in creating competitive advantage. Promotion:This company will actually use digitalization as the biggest promotional technique which will be combined with the QR scanning and many other seasonal discounts which will be providing several customers use amount of benefit. This will actually be helpful for organisation in seeking attention from a large group of people inIndiainMarks & Spencer. Place:Sincepromotionwillbedonefromaheightproportionaltechniquesthe organisation will start selling their products and services even with online services and home delivery.In India people prefer to sit online and as per price range buy products, this initiative by marks and Spencer will help them gain a preference in Indian women customers and they can captivate a good amount of area in market(Qin, Kim and Tan, 2018). Process:Marks & Spencerhas constantly been evolving in the matter of digitalization and nutrients and have set up their procedures so that huge amount of audience and attractive and
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appealed towards their product and the firm will be able to create a very positive image in the market. Physical evidence:several stores actually tend to be physical evidence of representing the organisation and the ethnic fashion which is being available to all the customers. This is the most easy access to the organisation and can actually draw attention from several buyers and can inflate or degrade the revenues at a very fair price. People:Marks & Spencer treat their employees as the assets of organisation, until and unless they will not create a fully organised and professional team for India, it might become very difficult for them to launch their product line in India(Chandra and et. al., 2018). Market entry strategies Organisations who plan to make expansion of their business global market or international market have to adopt and change their marketing strategies. Types of international market which need a particular amount of strategies and companies to invent a different way for reducing the amount of risk involved in business. The most common type of market entry strategies are known as direct exporting strategic alliance franchising, licensing and joint ventures etc. Itâs very important for this organisation to choose correct strategy and implement their business as per requirement with less number of complications. Some of most important international marketing strategy are given below briefly: Direct exporting:this in simple terms means that the home country shall be avoids using the natural resources, where ever the organisation is thinking to shift they shall first seek for all the resources in the country they seek to launch. This will save a lot of cost for them.The main strategy here is to actually motivate business organisation to execute a proper sales program in a different country or a foreign country with the proper sales and agent support and having the proper distributors in the marketplace. This organisation can actually adopt this strategy after they can find suitable agents inIndiaactually sell their fashion trends in this market. This market entry strategy can become very much beneficial for this company as the performance in sales and income sources will make it very much profitable for them. One of biggest disadvantage in this will be if agent or any of other distributors cheat theorganisation. This can also effect upon this brand if any natural activity or miss-happening can occur while transporting resoru8ces to India, which can cause a lot of loss toMarks & Spencer. In such they should look for other resources and substitutes present in India. This will help them save a lot of money, time and its affordable
with low risk level(Bachkirov, 2019). Strategic Alliance:this strategy is used in case when two or more types of business binding of contracts are involve for using resources of each country. In this the market entry is done through a proper strategy plan and in the contract which will be bind legally for using the resources of each country. This strategy will be suitable for this organisation as already they have established several types of tactics and this will be more helpful forMarks & Spencer. The most prominent advantage they have while using such resources is to make it very easy of performing any sort of business activities and in the biggest drawback it includes the secrecy of strategies (Zheng and Tian, 2019). Joint Venture:this is actually referred to contract which is done between two or more organisation to create a new company. In context toMarks & Spencerthis type of entering strategy can also be suitable for them while first time expanding in the business could actually get a better operating standard and the companies once do a proper setup can continue their marketing condition and then possibly might get separated once established. The most prominent advantage the strategy provides is that sharing of profit and losses between two companies which will actually reduce the criteria of having the whole dress on one person and the burden will be divided within two or more people who are bind in contract (Choi and et. al.,2018) Franchising: Actually in comparison to several other modes of entering market ofIndia best strategy forMarks & Spenceris franchising. In this process main organisation will have right and basic strategy will be decided by them but under the special specification which is actually creating the product or service. The profit of the company will always be heightened and this will always increases as compared to the other newly established good branch which are actually not having too much Goodwill in the country. Some of the major drawbacks of this strategy can be that this need the higher amount of investment which can only be done by some particular countries only and a long process of people work and several legal formalities which can actually take a lot of time. On the basis of several strategies which are described above the best type forMarks & Spencerwill be to avail franchising as a strategy for expanding inIndia with fashion apparel. CONCLUSION The report mentioned above revolves around concept of expanding business in different countries by using different kind of approaches. This actually helps in organising and improving
performance of company in monetary terms. Hofstede cultural framework is generalized and identified as the most important technique which is helpful in differentiating the cultural differences between two Nations and how the business will be affected by it. Franchising is provided as the best solution for an organisation to be profitable and sustainable in other country.
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REFERENCES Books and Journals Choi, Y. K. and et. al.,2018. Matching luxury brand appeals with attitude functions on social media across cultures.Journal of Business Research. Zheng, M. M. and Tian, V. I., 2019. Empowerment across Cultures: How National Culture AffectsStructuralandPsychologicalEmpowermentandEmployee Engagement.Journal of Marketing Development and Competitiveness.13(3). Bachkirov, A. A., 2019. Towards a better understanding of organizational buying behavior across cultures: empirical evidence from the Arabian Gulf.Journal of Business & Industrial Marketing. Qin, L., Kim, Y. and Tan, X., 2018. Understanding the Intention of using mobile social networkingappsacrosscultures.InternationalJournalofHumanâComputer Interaction.34(12). pp.1183-1193. Chandra, A and et. al., 2018. Ethics across Cultures: A Comparison of Ethical Perceptions in the United States and Morocco.SAM Advanced Management Journal.83(4). p.17. Chen, A. N., Lee, Y. and Hwang, Y., 2018. Managing online wait: Designing effective waiting screens across cultures.Information & Management.55(5). pp.558-575. Su, C.J and et. al.,2019. Measuring adolescent influence tactics with parents in family vacation decisions:Acomparablescaleacross19societies.SAGEOpen.9(1). p.2158244019835950. GĂźss, C.D. and Teta, E., 2018. Dynamic Decision Making Across Cultures. InAdvances in Culturally-Aware Intelligent Systems and in Cross-Cultural Psychological Studies(pp. 351-365). Springer, Cham. Lu, J. G and et. al., 2019. Creativity and humor across cultures: Where Aha meets Haha. InCreativity and Humor(pp. 183-203). Academic Press. Chopik, W. J. and Kitayama, S., 2018. Personality change across the life span: Insights from a crossâcultural, longitudinal study.Journal of personality.86(3). pp.508-521.