Cross-Cultural Marketing Strategies for Tesco in Japan Report

This report delves into the realm of cross-cultural marketing, providing a detailed analysis of strategies applicable to Tesco's expansion into the Japanese market. It begins with an introduction to cross-cultural marketing, emphasizing the importance of understanding diverse cultural needs. The main body of the report encompasses a cross-cultural analysis, utilizing Hofstede's cultural framework to compare the United States and Japan, highlighting key differences in power distance, individualism, masculinity, uncertainty avoidance, and long-term orientation. The report further investigates the influence of social and cultural factors on consumer behavior, including social class, family dynamics, cultural norms, and psychological factors, such as Maslow's Hierarchy of Needs. A marketing mix tailored for Tesco is then proposed, encompassing product, price, place, promotion, physical evidence, people, and process. The report concludes by evaluating market entry strategies, considering the balance between standardization and adaptation in a global context. This report offers a comprehensive understanding of the challenges and opportunities in cross-cultural marketing, providing valuable insights for businesses seeking to expand internationally, particularly in the Japanese market.

Marketing across Cultures (CW2)

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Cross Cultural Analysis...........................................................................................................3
Q 2) How social and cultural factors influence consumer behaviour..........................................7
Q 3) Evaluation of various market entry strategies...................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Cross cultural marketing is considered to be as a strategic procedure of marketing for
consumers. Every individual who has different culture tends to have different marketing plan.
Marketing across culture tends to require special sensitivity to the various diverse human cultural
needs (Pentina and Guilloux, 2015). Marketing across culture is one of the most effective
strategy which helps in recognizing local consumers in the market. This in turn helps in
determining the needs and requirements of the customers across the globe which leads to higher
operational growth and sustainability.
Tesco plc is a retail multinational company which was founded in the year 1919 by Jack
Cohen. This company mainly deals in electronics, books, financial services, telecoms, clothing,
electronics, petrol, software, furniture, toys and internet services. Tesco will supply the
customized 3D print tshirts through wholesaler and then wholesaler will sell them to ultimate
customers. It also provides facility of free home delivery in London. The business will be
operated in London, UK because people over there gets attracted towards such clothing which
lads to higher productivity.
MAIN BODY
1. Cross Cultural Analysis
Cross Cultural Analysis is mainly referred to as an effective strategy which is mainly
concerned with the characteristics and customs of various different individuals who belong to
varied culture. Cultural analysis is mainly based on using various qualitative research associated
with the humanities, arts and social science (Singh and Martinengo, 2015). This helps in
determining the cultural phenomenon, representations and practice in order to gain better
understanding and knowledge of the various culture. The USA tends to have parliamentary
democracy, but on the other Japan has constitutional monarchy.
Hofstede's cultural framework-
The framework was developed by Geert Hofstede. It helps to understand the diversity in
culture across various countries. This model is very effective for cross cultural communication.
This model has a great impact on the value of the members and culture of the society (Cantwell
and Verbeke, 2017). This model tends to focus on six categories that define culture which mainly
includes power distance, individualism, masculinity, uncertainty avoidance index and long term
orientation etc. This model tends to compare and distinguish between two different countries like

USA and Japan.
USA culture mainly comprise of several customs and traditions with certain standards
which mainly comprises of equality, liberty, individualism, privacy, self-government and time.
Japan custom and communication is way too complex (Thampi, Jyotishi and Bishu, 2015). The
framework was developed by Geert Hofstede. It helps to understand the diversity in culture
across various countries. There are six categories that define culture-
Power Distance Index (PDI)
Power distance is mainly associated with the power of the individuals where the power of
the individual society is distributed unequally. This is considered to be as an effective indicative
of greater equality associated with societal values, organization, government, family, etc. The
Power Distance Index of USA is at 40 as compared to the average of the world which is
estimated to be at 55. The PDI of USA states that, the range of inequalities tend to vary from
culture to culture. It is the extent to which power and inequality are tolerated (Beugelsdijk,
Kostova and Roth, 2017). Power distance index of Japan is 54. It means it encourages
bureaucracy. Japan has a borderline which has an effective hierarchical society. The key reason
behind not so high power distance of Japan is that it has always been meritocratic society.
Individualism-
The individualism of United States are 91. It considers the extent to which societies are
combined into groups. Japan score 46 on individualism dimension. It means value is given to
group goals. Japanese have collectivistic culture because of which people are loyal to their
extended family and local community. In Japan, there is a strong notion that, Japanese education
system is where every individual is born equal. People of Japan are becoming more private and
reserved (Saleem and Larimo, 2017). Japan complete loyalty is something which is considered
the most important factor which in turn results in effective individualism dimension.
Uncertainty vs Avoidance Index-
Uncertainty avoidance dimension is mainly associated with the fact that what future will
bring. This in turn results in anxiety among different cultural backgrounds in the society. Japan
has an uncertainty avoidance is estimated to be at 92. This in turn states that, Japan is threatened
by earthquake, tsunamis, volcano eruptions and various other natural disasters. Japan tends to
focus on making an emergency plan for sudden natural disaster in order to protect the individuals

in society and natural resources of economy (Thampi, Jyotishi and Bishu, 2015). USA scores at
46 on uncertainty avoidance dimensions. America needs to implement various tools standards
and regulations in order to score high at uncertainty avoidance dimension.
Femininity vs Masculinity-
Masculinity dimension tends to indicate that society is mainly driven by success
competition and achievement this in turn helps organisation and economy to achieve higher
operational growth and sustainability Japan has a masculinity index of 95 which in turn states
that Japan has competitive individual behaviour (Beugelsdijk, Kostova and Roth, 2017). It means
the extent to which ambiguity is tolerated. Japan scores 95 it means there is low tolerance for
uncertainty. There is competition between various group members of different age groups this.
Masculinity in Japan is many tried my perfection and excellence and material services in
production in various aspects of life. The masculinity index of United States 62. In United
States, the behaviour in school, play, work
Short term vs Long term Orientation-
Long-term orientation is an effective method where society needs to maintain a certain
strategy in order to link up with your past experience and challenges (Thampi, Jyotishi and
Bishu, 2015). This helps the society to face various cultural challenges in the future. United
States have a low score of approximately 26 which mainly reflects that America is prone to and
analyse new information and they are practical. Americans have better idea that what is good and
what is bad for them. On the other hand long-term orientation of Japan schools at 88. It considers
the level up to which society views time horizon. It means it delays short term gains to attain
long term success (Saleem and Larimo, 2017). People in Japan many live the life which is guided
by practical values and virtues. The company is in Japan have higher rate of investment in
research and development which in turn helps in durability of several companies. This in turn
states that companies are not Stab list to make profit but to serve the society and stakeholders
which leads to higher economic growth.
Restraint vs Indulgence
This dimension is mainly associated with the extent to which individuals in the society
try to control their impulses and desires. The tendency to have a weak control over urges is
associated with indulgence. On the contrary, individuals having strong control over the impulses
is referred to as restraints. The score of United States indulgent dimension is 68 by the

individuals mainly focus on work hard and play hard. USA to be a prudish society. Japan has a
low indulgence score which is at 42. . It refers to the tendency of community to satisfy the
desires. Japan scores 42 it means it is having culture of restraint. Society who has no school and
indulgence time insurance tends to be pessimist and cynicism (Thampi, Jyotishi and Bishu,
2015). Restrain societies do not have much of this is on gratification towards desires and leisure
time

Q 2) How social and cultural factors influence consumer behaviour.
Social factors-
It is defined as the factors that are prevalent in the community where consumers live. The
differences in behaviour influence the preferences of consumers as they tend to perform the
activities that are acceptable to the society (Killing, 2017). There are various types of social
factors that Tesco should consider before entering into target country. These are as follows -
Social class:
One of the major social factor that may influence the buying behaviour of people living
in Japan is social class. It affects the spending habits of consumer. One of the most general effect
is the disposable income of every social class. People are grouped on the basis of wealth,
income, type of occupation etc. If, Tesco is targeting upper class then it should meet out the
expectations of consumer in terms of service, quality etc.
Role of family:
Family of the buyer also influences the behaviour of consumer while purchasing the
product or service. Marketing department of Tesco should consider this factor because the family
members shapes the behaviour and attitude of consumer. The traditional family unit in Japan is
called Kazoku that comprise father, mother and their children. Therefore, the religious beliefs,
lifestyle choices and preferences of family members will influence the purchasing decision of the
buyer (Lantos, 2015).
Cultural factors-
Cultural factors have major impact on consumer behaviour. It involves factors like sub
culture, broad culture etc. Marketing manager of Tesco should consider cultural factors also
while developing marketing mix for launching the product in target market. These factors are as
follows -
Culture: It means the knowledge and features of a specific group of people that encompasses
religion, language, social habits, music and arts.
For the company it is essential to take into consideration the cultural factors that are
inherent to market in Japan or to each situation in order to adapt the product or service. Culture
of the country plays an important role in habits, behaviour, perception and expectations of
consumer. Japanese are very conscious towards health and environment. They prefer more

organic products. Therefore, Tesco should consider cultural factors before launching the product
(Jaber, 2015).
Norms:
Cultural norms also influences the behaviour of consumer. One of the major factor that
affects buying decision is the language of the country. While entering into Japan, Tesco should
keep in mind the difference in language.
Motivation -
Marketing department of the firm should also consider psychological factors that affects
the process of buying product or service.
Maslow Need Hierarchy Theory:
As per the theory of Maslow, motivation drives consumers to purchase the product or
service. Consumers buy the product to satisfy different types of needs like to satisfy basic needs
such as hunger etc. to get social status, to be self actualized etc. Marketing department of Tesco
should identify why people of Japan would buy the product that will be offered by the company.
What are the motives that will motivate them to buy the goods.
Marketing Mix – It means the set of tactics that organization uses to promote the product or
brand in the market.
Product – Tesco will offer customized clothing products to another country. It will provide 3 D
T-shirts for both men and women. The products are developed from high quality raw material.
Price – The company will adopt competitor based pricing strategy for setting the price of
product.
Place – Tesco will supply the products through wholesaler and then wholesaler will sell them to
ultimate customers. Further, company will also provide the facility of free home delivery
(Lantos, 2015).
Promotion – Firm will use tools and techniques like print advertising, social media platforms
like Facebook etc.
Physical evidence – The products will be offered in attractive packaging that will help to
motivate buyers to purchase the items.
People – Tesco have skilled employees that helps to sell products to customers. It will also
provide training opportunities to clients.
Process – Tesco will use different technologies for handling customer complaints such as CRM.

Standardization vs adaptation-
Standardization:
- The strategy of standardization is viewed as cost saving strategy. It includes the use of
same pricing, products, promotional strategies. The objective is to standardize the practices that
are related with homogenization of needs due to intensifying force of globalization (Saleem and
Larimo, 2017).
Adaptation:
The strategy implies that product or service is modified by the firm in order to satisfy the
needs of consumers in international market. It also helps to attain high level of customer
satisfaction.
Benefits of standardization of firm
Standardization - standardisation is to maintain certain level of uniformity and consistency in the
work process in a given environment. Guarantee quality in work - as a standard are set
everything is guided according to the rules set (Zhi, 2017). This gives clarity in the work process
and guarantees quality work in this process. Boost productivity- standardization ensure that
productivity is done at a rapid rate based on certain set standards. Increase employees moral - as
everyone is guided according to the define process so people in the organisation feels they are
equally treated which increases their moral. Clarity in work process - extra searching and
guesswork avoided as a result of standardization.
Indirect benefits of standardization of firm
Goodwill of the firm - as a result of a standardization companies set a clear cut procedure of
working. Such style of working helps in proper functioning of organisational internal working
and focuses on creating Goodwill of the firm. Brand value - every brand carries value for itself.
A good brand value can be only created if there is a proper style of working (Singh and
Martinengo, 2015). Standardization helps in creating proper channel for efficient brand working.
Perception of the customer - A business firm aims at maintaining positive relationship with
customer so as to retain the existing customer and create more customers. By standardization

company set customer services in way of after sale services, redressal of problems and other
benefits to the customer.
Q 3) Evaluation of various market entry strategies.
The term market entry strategies refers to the planned delivery and distribution method of
products or services to a new target market. It means establishment, creation and management in
a foreign country.
Key points :
Corporate strategy -
The term corporate strategy refers to organization wide plan to select and develop the
market in which to compete while improving different units of the business.
Manufacturing -
It refers to development of goods through machine or hand that upon completion the
company sells to the ultimate customers.
Indirect exporting -
It means exporting the goods through middlemen. It happens between importer and
exporter. The intermediary in the country of exporter performs specific marketing functions.
Direct exporting -
It refers to the process of exporting items directly to foreign customers by the producer
himself or with the help of agency in other country.

Strategic alliance : It includes a contractual agreement between two or more firms stipulating
that the firms will cooperate in specific manner for a certain time period to attain a common
objective (Surdu, Mellahi and Glaister, 2018). To determine if the coalition method is proper for
Tesco, the company should determine what value the partner could provide to the venture in
terms of intangible as well as tangible aspects. Tesco may enter into an agreement with other
companies for entering into the market of Japan. Under strategic alliance two or more firms will
sign the contract to pool their resources such as finance, human resource, material resource etc.
and also seek to gain mutual benefits together.
Benefits-
Market entry strategy of strategic alliance helps the business to increase the base of
existing clients. When the firm forms a global strategic alliance, the loyalty of buyers also
expands to other firms within the alliance. It makes possible for the company to expand the
existing demographic base even if firm is in a mature domestic market.
Limitations-
One of the major disadvantage of strategic alliance is the crossover of the employees.
When firms come together it might be possible that it lose skilled human resource because the
strategic partners are able to provide more benefits as compared to the firm afford to pay them
(Albers, Wohlgezogen and Zajac, 2016).
Joint Venture :
It is defined as an agreement in which two or more organizations come together to create
a legally independent undertaking for a specific period to achieve a specific purpose such as for
completing a specific project, task or activity. It is a temporary form of partnership which is
established for a definite objective. Tesco may adopt the strategy of Joint Venture for entering
into the target market.
Advantage -

By entering into joint venture Tesco will get an opportunity to gain new expertise and
new insights.
Moreover, the strategy will help company to access better resources such as finance, technology
and specialized staff. Tesco can easily use capital and equipment that are required for entering
into the market of Japan.
Disadvantage -
One of the major disadvantage is that by entering into joint venture the flexibility of the
company may be restricted.
Recommendation –
It has been recommended that Tesco should enter into joint venture for entering into the
target market of Japan. It will provide various advantages to the firm. One of the biggest
advantage is that it will help Tesco to save money and also assist to split the cost. Further, the
chances of success of the product will also increase and it will also support the firm to improve
credibility.
CONCLUSION
The above Report has outlined that social and cultural factors plays an important role in
influencing the consumer behaviour and decision-making process while purchasing a particular
product or service of the firm. It has been concluded that under social class the buyers can be
grouped on the basis of income, occupation, wealth etc. that directly impact the behaviour of
people. Marketing department of Tesco should take into consideration social-cultural factors
while entering into target market. Further, the Report has described that there are various motives
that motivates people to purchase a particular product. It has been concluded that Tesco should
adopt the strategy of Joint venture as it provides the benefits of cost saving, access to resources
etc. Moreover, the Report has explained that there are various advantages of adopting
standardization such as it provides the benefits of economies of scale etc.