Strategic Management for Dorothy Perkins to Enter Chinese Market

This paper elaborates on the strategic plans and marketing mix strategies that are to be followed by Dorothy Perkins in order to enter into the Chinese market. It also provides a strategic positioning plan for it and argues why the very strategy is the best option to sell its services in the Chinese market by means of a literature review. Lastly, this paper provides recommendations for the company in order to operate in the international market in an effective manner.

Running head: STRATEGIC MANAGEMENT
Strategic Management
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Table of Contents
Introduction................................................................................................................................2
Background of the product.........................................................................................................2
Rationale for the Choice of the strategy.....................................................................................3
Expected strategic performance success factors from the strategy............................................4
Literature Review.......................................................................................................................4
Conclusion..................................................................................................................................6
Recommendations......................................................................................................................6
References..................................................................................................................................9

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Introduction
The contemporary business organisation always ensure to have proper strategies for
their business and product’s marketing for operating in the host nations. It is very crucial as
the home nation differ from the host nations in business factors and the business
environments and it is for this reason that the business organisations need to have to enhance
their prevailing business strategies for conducting the business in new country, depending on
their national and other components in the very nation (Prajogo 2016). It is necessary for the
modern businesses to have different strategies in diverse nations where they make businesses
or plan to conduct them. However, it is to note that the organisation named Dorothy Perkins
is one of the leading multinational retailers present in Australia and it is planning to enter into
the Chinese business market. This paper would elaborate about the strategic plans and
marketing mix strategies that are to be followed by this company in order to enter into the
Chinese market. With the same, this paper would also provide a strategic positioning plan for
it and argue why the very strategy is the best option to sell its services in the Chinese market
by means of a literature review. Lastly, this paper would end on providing few
recommendation for the company in order to operate in the international market in effective
manner.
Background of the product
Dorothy Perkins is planning to expand its fashion department in Chinese market. It
would be selling several styles of clothing, bags, shoes and accessories there. It has decided
to deliver the very latest high street fashion right from the tops and dresses, shoes and
outerwear along with accessories of women to jeans, jackets, boots and shoes of men. It
would be delivering the new season collections and is expecting to get the latest high street
fashion from Australia straight to the door of Chinese households.

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Rationale for the Choice of the strategy
The proposed of strategy of marketing for the company Dorothy Perkins would be
standardised in large along with the implementation procedure of the adaptive strategy to
some extent. Hence, the main aim of implementation of this strategy would be to deliver
standardised products by possessing an adaptive approach. It is suggested that the product
portfolio is to be remained in offering in the Chinese market and here, the standardisation
strategy must be initiated (Šerić, Gil-Saura and Ruiz-Molina 2014). Notwithstanding this fact,
the approach of the products could be altered like the culture of China and the designs in the
clothes-line and therefore, in this case, the adaptation strategy is to be considered. However,
in recent days, the company is following the premium pricing strategy in its business
operation in global context. But, for doing business in Chinese market, the company should
be initiating a similar pricing strategy. Hence, the standardisation strategy is suggested to be
used for its product pricing. It is because of this reason that as per (Liozu and Hinterhuber
2013), China have a high number of higher end consumers who have the necessity of higher
end premium brand. Furthermore, it is also to state that in present days, the company is
having an extensive and a holistic set of marketing strategies, which ranges from the celebrity
endorsements to the e-mail marketing. According to Gangwar, Kumar and Rao (2013) is
helping the company in enhancing its market exposure among its target consumer segments.
Still, it is suggested that in order to enter into the Chinese market, they should implement
their international promotional strategy and along with that they should implement the
localisation strategy as well. It would ensure high degree of market penetration for the market
in China. Also, it is also to note that the other advantage of this strategy is that it would be
helping the company in attracting more and more customers with having both the domestic as
well as international preferences. Moreover, it is also to state that Dorothy Perkins is having
both online as well as offline physical stores and this signifies that the company is following

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the strategy of Omni channel distribution. They should be implementing the same strategy in
the Chines market as well.
Expected strategic performance success factors from the strategy
It is to note that the main advantage that Dorothy Perkins would be getting from
having an adaptive approach would be of effective targeting its customers in China.
Furthermore, the main benefit of using standardisation and adaptation strategy would be the
maximisation or the increase or hike in the level of attractiveness of the international product
line of the company. Moreover, using the international approach of premium pricing strategy
would help the company in maintain its international brand value in the Chinese market and
along with that, it could also target its higher end customers easily (Plakhotnik et al. 2015).
Also, it is expected that it would increase the profitability of the company in operating in
China. The Omni Channel distribution strategy if used in China is expected to bring in more
potential customers towards the business from all the possible mediums.
Literature Review
It is to note that standardisation is the method of offering standardised and universal
products over prevailing markets. Also, as per Mintz and Currim (2013), adaptive strategy is
the strategy of offering the company’s services and products as per the preference and the
taste of the consumers. The adaptive strategy includes localisation of the services and
products in different business markets. However, the consumer based quality brand, which is
also referred to as the Keller’s brand equity model states all the factors which are to be
regarded by the brands in forming a very strong bonding with the consumers. Hence, this
model would be helping Dorothy Perkins in creating a strong branding of its product. It is
also to note that the first and the foremost element of this Keller’s brand equity model assists
the companies in developing a strong branding of the services and products. Dorothy Perkins

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is regarded among its target customers as one of the premium fashion retailer providing high
street fashion solution to them. Hence, having this as an identity, the identity of a premium
retailer, would be helping the firm in marketing its fashion products and enhancing its brand
value in the Chinese market scenario. Furthermore, the very next element in the model is that
of brand meaning. It refers to the performance of a specific product regarding its potential of
meeting the needs of the customers. As stated by Lim and Weaver (2014) brand meaning
refers to having a total of two major factors of imagery and performance. The imagery refers
to the level to which the brand meets the psychological and the social requirements of the
customers and on the other hand, performance refers to the level to which the product is
meeting the requirements and preferences of the consumers and to what extent they are
efficient over the prevailing competitors in the market (Park, Mishra and Wozniak 2014).
Hence, in order to have a powerful and a very strong brand value in China, Dorothy Perkins
should positively maintain its global positioning strategy which would help it in providing
both the quality and premium experience to the customers through offering them excellent
products (Liu, Liu and Lin 2015). Furthermore, the next element is that of brand responses. It
is the factor under which the consumers who uses the products respond to a specific brand
(Buil, Martinez and De Chernatony 2013). Lastly, the last but not the least is the element of
brand resonance. It is to note that brand resonance is the linkage or the connection that is built
in between the brand and the customers who uses it (Jung Jung et al. 2014). This helps the
companies in gaining the feedback from the customer sides. Hence, it is very necessary for
the companies to have a much favourable brand resonance, especially if they are planning to
expand their business to a place which is completely new to them and the place for which the
company is completely new, for example, Dorothy Perkins and China. The more the brand
resonance would be in the Chinese market for Dorothy Perkins, the more would be its market
penetration as well as the generation of positive word of mouth marketing in the host nation.

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Figure 1: Brand equity model of Dorothy Perkins
Conclusion
Hence, from the above discussion it is to state that Dorothy Perkins must initiate both
the adaptation and the standardisation strategies in order to get high level of output from its
new Chinese customers. In this paper, the recommended marketing mix strategies that would
be followed for conducting business in Chinese market are also discussed. Furthermore, the
strategies for marketing communication mix long with the measurement indicators have also
been demonstrated in this paper. With the same, it is also to state that an effective
implementation of the recommended strategies that are provided below would be helping the
company to have a favourable operation in Chinese business environment.
Brand salience
Fashion clothing for both men and women
Brand performance
Product delivery, Efficiency, Product reliability
Malls, online distribution and boutique
Brand ImageryTrendy and Fashionable, Unique
Style and Design and Valued Premium user
experience
Customer Judgement
Quality products, Reliable products, valued
products,
Credibility, Superiority.
Consumer feelings Elegant, High class, precious
Social approvalAffordable for working

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Recommendations
a) The company should follow Omni channel distribution strategy in China. This means
that it should be available to the Chinese customers in both online and offline mode.
This is because that Chinese customers is also having a high level of internet and
social penetration which would be helping the company to have a favourable
opportunities for marketing from online stores and applications. With the same, this
would also helping in catering more and more customers from all the potential
mediums.
b) Dorothy Perkins should positively maintain its global positioning strategy which
would help it in providing both the quality and premium experience to the customers
through offering them excellent products.
c) The company should primarily focus on its product superiority and quality. It is
because of the reason that the customers would prefer the company over the other
prevailing options in the market only for the quality and the brand identity that it is
delivering them. Hence, it is to state that pricing should not be the only determining
element for Dorothy Perkins in order to do its business in China.
d) It is also suggested that Dorothy Perkins needs to identify a list of some performance
indicators for measuring their performance while doing business in the Chinese
market. The KPIs that are identified are acquired market share, and the profit margin
inclusion of new clients. It is to note that the Market share is defined as the increase in
the market share for Dorothy Perkins, while the profit margin is the increase in
profitability for them and lastly, inclusion of the new customers is the effectiveness of
marketing strategy in attracting new clients and customers for the business. Measuring
market share would help Dorothy Perkins for determining their position in the market
as compared to their existing competitors.

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Key performance indicator plan
Strategy
Objectives Measures Targets Initiatives
Financial To increase the
market share
Reaching out
for more
number of
customers and
covering wide
range of market
area.
12 % of increase
over the
prevailing
figure.
Diversified use
of marketing
mediums
Customer Increase the
inclusion of
potential
customers
More customer
oriented
strategies along
with more
customer
engagement
12 % increase
over the
prevailing
customers.
Use of mass
market
mediums and
designing
products
according to the
customer
feedback.
Growth Increasing the
profit margin
Reducing the
promotion and
marketing cost
9 % of increase
in the
profitability.
Use of more
cost effective
mediums like
social media.

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References
Buil, I., Martínez, E. and De Chernatony, L., 2013. The influence of brand equity on
consumer responses. Journal of consumer marketing, 30(1), pp.62-74.
Gangwar, M., Kumar, N. and Rao, R.C., 2013. Consumer stockpiling and competitive
promotional strategies. Marketing Science, 33(1), pp.94-113.
Jung Jung, H., Lee, Y., Kim, H. and Yang, H., 2014. Impacts of country images on luxury
fashion brand: facilitating with the brand resonance model. Journal of Fashion Marketing
and Management, 18(2), pp.187-205.
Lim, Y. and Weaver, P.A., 2014. Customer‐based brand equity for a destination: The effect
of destination image on preference for products associated with a destination
brand. International Journal of Tourism Research, 16(3), pp.223-231.
Liozu, S.M. and Hinterhuber, A., 2013. Pricing orientation, pricing capabilities, and firm
performance. Management Decision, 51(3), pp.594-614.
Liu, C.R., Liu, H.K. and Lin, W.R., 2015. Constructing customer‐based museums brand
equity model: The mediating role of brand value. International Journal of Tourism
Research, 17(3), pp.229-238.
Mintz, O. and Currim, I.S., 2013. What drives managerial use of marketing and financial
metrics and does metric use affect performance of marketing-mix activities?. Journal of
Marketing, 77(2), pp.17-40.

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Park, T., Mishra, A.K. and Wozniak, S.J., 2014. Do farm operators benefit from direct to
consumer marketing strategies?. Agricultural Economics, 45(2), pp.213-224.
Plakhotnik, M.S., Rocco, T.S., Collins, J.C. and Landorf, H., 2015. Connection, value, and
growth: how employees with different national identities experience a geocentric
organizational culture of a global corporation. Human Resource Development
International, 18(1), pp.39-57.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment
in delivering business performance. International Journal of Production Economics, 171,
pp.241-249.
Šerić, M., Gil-Saura, I. and Ruiz-Molina, M.E., 2014. How can integrated marketing
communications and advanced technology influence the creation of customer-based brand
equity? Evidence from the hospitality industry. International Journal of Hospitality
Management, 39, pp.144-156.