Dorothy Perkins in China: A Strategic Marketing Management Report

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This report provides a strategic marketing plan for Dorothy Perkins' entry into the Chinese market. It recommends a balanced approach of standardization and adaptation in the marketing mix, focusing on product, price, promotion, and place. The report emphasizes the importance of maintaining a premium brand image while catering to local preferences. It also discusses the Customer-Based Brand Equity (CBBE) model, suggesting strategies to build a strong brand connection with Chinese customers. Furthermore, the report outlines integrated marketing communication (IMC) strategies, including online and electronic media advertising, direct selling through email marketing, and sales promotions. The report concludes with key performance indicators for measuring success and emphasizes the need for continuous evaluation and adaptation to the Chinese market dynamics. This assignment is available on Desklib, a platform offering a wide range of study resources and solved assignments for students.
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Running head: STRATEGIC MARKETING MANAGEMENT
Strategic marketing management
Name of the student
Name of the university
Author note
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Executive summary
The aim of this report is to discuss about the strategies that should be initiated by Dorothy
Perkins in operating in the Chinese market. This report discussed about the recommended
marketing mix strategies, integrated marketing communication strategies and key performance
indicators to be followed by Dorothy Perkins in operating in the Chinese market. In addition, the
particular approach including the standardized and adaptive approach is also identified for each
of the marketing mix elements along with brief discussion of their probable advantages. This
report analyzed that in some of the elements of the marketing mix for Dorothy Perkins, both the
standardization and adaptive strategy should be implemented in well balanced manner. It is
concluded that both standardization and adaptation strategies should be initiated by Dorothy
Perkins in the Chinese market. It is also analyzed CBBE model and IMC tools should also be
implemented effectively by Dorothy Perkins.
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Table of Contents
Introduction......................................................................................................................................3
Proposed marketing mix strategies..................................................................................................3
Product.........................................................................................................................................4
Price.............................................................................................................................................5
Promotion....................................................................................................................................5
Place.............................................................................................................................................6
Physical evidence.........................................................................................................................6
Process.........................................................................................................................................6
People..........................................................................................................................................7
Customer based brand equity model................................................................................................7
Integrated marketing communication strategies..............................................................................9
Advertisements............................................................................................................................9
Direct marketing..........................................................................................................................9
Sales promotion.........................................................................................................................10
Measurement and evaluation of success........................................................................................10
Conclusion.....................................................................................................................................10
Reference.......................................................................................................................................11
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4STRATEGIC MARKETING MANAGEMENT
Introduction
Contemporary business organizations should have proper business and marketing
strategies in order to operate in the host countries. This is important due to the reason that home
and host countries will have different business factor and environments and business
organizations should have to change or modify their existing business strategies in operating in
the new country based on the domestic social and other factors in that country (Prajogo 2016).
This is leading for the contemporary business organizations to have different strategies in
different countries. Dorothy Perkins is one of the leading retailers in the United Kingdom and
they are considering entering in Chinese market (Helm and Gritsch 2014). This report is being
evaluated from the perceptive of the consultant. This report will discuss about the marketing mix
strategies to be followed by Dorothy Perkins in the Chinese market. In addition, the brand equity
model for the Chinese customers will also be discussed in this report along with discussing the
effective marketing communication methods to be implemented in the Chinese market.
Proposed marketing mix strategies
The proposed marketing strategy for Dorothy Perkins should be standardized in large
with the implementation of adaptive strategy to a little extent. Thus, the core objective of
implementing the proposed marketing mix strategy will be to offer standardized products with
having adaptive approach. Standardization refers to the process of offering universal and
standardized products across all the markets (Mintz and Currim 2013). Furthermore, the
advantage that will be gained by Dorothy Perkins from having adaptive approach is effective
targeting of the Chinese customers. Adaptive strategy refers to the strategy of offering products
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in accordance to the taste and preference pattern of the customers. this strategy also involves
localization of the products in different markets.
Product
It is suggested that the product portfolio should remain same in offering in the Chinese
market. In this case, standardization strategy should be initiated (Montgomery 2017).
However, the approach of the products can be changed such as using the Chinese designs and
couture in the clothesline. In this case, adaptation strategy should be initiated. The major
advantage will be the increase in the attractiveness of the global product line of Dorothy Perkins.
Price
Currently, Dorothy Perkins follows the premium pricing strategy in their global business
operation. In the case of doing business in China, it is suggested that they should initiate the
similar pricing strategy. Thus, standardization strategy should be initiated. This is due to the
reason that, China is having huge number of higher end customers who are having the
requirement of higher end premium brand (Liozu and Hinterhuber 2013). Thus, initiating the
global approach of premium pricing strategy will help Dorothy Perkins to maintain their
global brand value in the Chinese market along with targeting the higher end customers.
This will also enhance the profitability of Dorothy Perkins in operating in the Chinese
market. These are major advantages for Dorothy Perkins from standardization strategy.
Promotion
Currently, Dorothy Perkins is having extensive and holistic set of marketing strategies
that ranges from email marketing to celebrity endorsements. This helps them to enhance their
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market exposure among the target customer segments (Gangwar, Kumar and Rao 2013). It is
suggested that in the Chinese market, they should implement their global promotional strategy as
well as implementing the localization strategy. Thus, in this case both the standardization and
adaptation strategy should be initiated in well balanced manner. This will ensure the
maximum level of market penetration for the Chinese market. Another advantage of this
strategy will be attracting customers with having both global and local preferences.
Place
Dorothy Perkins is having both offline and online stores and thus they are following
Omni Channel distribution strategy. They should implement the same strategy in the Chinese
market also (Ailawadi and Farris 2017). Thus, standardization strategy should be initiated.
This is due to the reason that Chinese market is also having higher set of internet penetration that
will help to have favorable marketing opportunities for the online mediums. In addition, it
will help in cater to customers from all possible mediums.
Physical evidence
This policy should be standardized and the same approach and ambience should be
maintained in the Chinese market (Huang and Sarigollu 2014). This will help them to provide
the same global standards to their Chinese customers also. In addition, Dorothy Perkins
will be able to maintain the distinctive image in the Chinese market. These will be their
major advantages.
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Process
Currently, Dorothy Perkins is having the outsourcing policy of sourcing their products
from the developing countries at lower cost. Thus in the case of operating in the Chinese market,
they should maintain the same approach that is standardized approach including sourcing also
from the Chinese vendors. This will be beneficial for them because cost of production is
lower in China and they will be benefited from lower cost of sourcing.
People
In case of selecting people for the Chinese operation, geocentric approach of staffing
should be initiated. This is due to the reason that geocentric approach will enable Dorothy
Perkins to recruit employees from both their home and host countries (Plakhotnik et al. 2015).
Thus, both the standardized and adaptive approach should be initiated to an extent. This is
beneficial because having people from both home and host countries will help Dorothy
Perkins to provide the service in accordance to the local culture along with meeting their
global organizational standards.
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Customer based brand equity model
Customer based quality brand also known as Keller’s brand equity model states the
factors that should be considered by the brands in creating strong connection with the customers.
Thus, this model helps the organizations in creating strong branding of their products. The first
and basic element of this model is salience that refers to the identity of the brand among the
customers. Dorothy Perkins is known among their target customers as a premium fashion retailer
offering high street fashion line. Thus, having this identity of premium retailer will help them to
market their products and enhance their brand value in the Chinese market (Lim and Weaver
2014). The next element is brand meaning that refers to the performance of the particular product
about its ability to meet the requirement of the customers. Brand meaning is having two main
factors of performance and imagery. Performance refers to the extent to which the products of
Dorothy Perkins are meeting the demand of the customers and they are efficient over their
competitors. Another factor is imagery that defines the extent to which the brand is meeting the
social and psychological needs of the customers. Thus, in order to have a stronger brand value in
the Chinese market, it is important for Dorothy Perkins to maintain their global positioning
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Brand salience
Fashion clothing for men and women
Brand performance
Quality, Product delivery, Value pricing,
Product reliability, Efficiency, Boutiques, malls
and online distribution
Brand Imagery
Trendy and Classic, Fashionable, Unique
Style and Design. Personalised and valued
Premium user experience
Customer Judgement
Quality products, Valued products, Reliable
products, Credibility, Superiority.
Consumer feelings
High class, Elegant, Precious
Affordable for working class
Social approval
Self respect
strategy that will enable them to provide both product quality and premium user experience (Liu,
Liu and Lin 2015).
Brand equity model of Dorothy Perkins
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Products of Dorothy Perkins are the women garments and customers of Dorothy Perkins
expect the products will be reliable, durable and stylish. In accordance, products of Dorothy
Perkins are also known for their reliability and quality. This will help Dorothy Perkins to have
the favorable market share in China in the initial stage by meeting the requirements of the
customers properly (Seric, Gil-Saura and Ruiz-Molina 2014). In addition, the premium
positioning of Dorothy Perkins is enabling the customers to meet their social needs of denoting
success and achievement.
The next element is the brand responses. This refers to the factors under which the
customers respond to a particular brand. Dorothy Perkins should majorly focus on quality and
superiority. This is due to the reason that customers will prefer Dorothy Perkins over their
competitors only for their superior quality and brand identity. Thus, pricing should not be the
determining factor for Dorothy Perkins in doing business in China (Buil, Martinez and De
Chernatony 2013).
The last element in this model is brand resonance. This refers to the connection being
built between the customers and the brand (Jung Jung et al. 2014). It will also help Dorothy
Perkins to gain the feedback from the side of the customers. Thus it is important for Dorothy
Perkins to have favorable brand resonance due to the reason that they are new in the Chinese
market (Seric, Gil-Saura and Ruiz-Molina 2014). The more will be the brand resonance of
Dorothy Perkins in the Chinese market, the more will be their market penetration and generation
of positive word of mouth in the host country.
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Integrated marketing communication strategies
Integrated marketing communication refers to the process of designing the
communication strategy in order to reach out to maximum number of customers involving all the
available communication channels in coordinated manner. In the case of launching a new
product, this is important due to the reason that effective process and approach of integrated
marketing communication will help to create the favorable market for the new product with
having the maximum brand exposure and identity (Mulhern 2013).
Advertisements
China is having favorable penetration of internet and social media and thus it is
recommended that that online marketing including the social media marketing should be initiated
(Bauer and Lasinger 2014). This will help Dorothy Perkins to initiate two ways communication
channel with their target customers. Social media marketing will also help them to gaining the
feedback of the customers regarding their products and in accordance to that, they can further
design their product strategies. However, on the other hand, the major disadvantage that will be
faced by them is generation of negative word of mouth. Negative review of any customer will
spread and cause loss for Dorothy Perkins. Another medium to be used for advertisement is
electronic media. In the electronic media, television channels should be included due to the
reason that television channels are having more market penetration compared to the online
mediums.
Direct selling
Dorothy Perkins already practices personal selling by the way of email marketing. In the
Chinese market also, they should initiate email marketing that will help them to personalize the
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marketing approach for different customer segments (Park, Mishra and Wozniak 2014). This will
also enable Dorothy Perkins to create brand awareness among the target customers and also the
probability of closing the sales is more.
Sales promotion
Sales promotional activities including rebates, customer loyalty programs and promo
codes should be offered to the customers. These strategies are already being practiced by
Dorothy Perkins. This will help them to enhance the customer attractiveness for their products.
In addition, Dorothy Perkins will have the advantage of higher rate of customer retention and
more revenue from the existing customers. On the other hand, the coverage of sales promotion is
less compared to other tools of integrated marketing communication.
Measurement and evaluation of success
It is recommended that Dorothy Perkins should identify a few key performance indicators
in order to measure their performance in the Chinese market. The identified KPIs are acquired
market share, profit margin and inclusion of new customers. Market share refers to the increase
in the market share for Dorothy Perkins, profit margin refers to the increase in profitability for
them and inclusion of the new customers refers to the effectiveness of the marketing strategy in
attracting new customers. Measuring market share will help Dorothy Perkins to determine their
standing in the market compared to their competitors (Masood, Jahanzaib and Akhtar 2013).
Strategy
Objectives Measures Targets Initiatives
Financial To increase
market share
Reaching out to
more customers
10 % increase
over the current
Diverse use of
marketing
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and covering
more market
area.
figure. mediums
Customer To increase the
inclusion of new
customers
More customer
oriented
strategies and
more customer
engagement
10 % increase
over the existing
customers.
Use of mass
market mediums
and designing
products
according to the
customer
feedback.
Growth To increase
profit margin
Reducing the
cost of
promotion and
marketing
5 % increase in
profitability.
Using of more
cost effective
mediums such as
social media.
Conclusion
Thus, it can be concluded that Dorothy Perkins should initiate both standardization and
adaption strategies to get the maximum output from the Chinese market. In this report, it is also
being discussed about the recommended marketing mix strategies that should be followed in
doing business in China. Marketing communication mix strategies and evaluation and
measurement indicators are also being identified in this report. Effective implementation of the
recommended strategies in this report will help Dorothy Perkins to have favorable operation in
the Chinese market.
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Reference
Ailawadi, K.L. and Farris, P.W., 2017. Managing multi-and omni-channel distribution: metrics
and research directions. Journal of retailing, 93(1), pp.120-135.
Bauer, C. and Lasinger, P., 2014. Adaptation strategies to increase advertisement effectiveness in
digital media. Management Review Quarterly, 64(2), pp.101-124.
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.
Helm, R. and Gritsch, S., 2014. Examining the influence of uncertainty on marketing mix
strategy elements in emerging business to business export-markets. International Business
Review, 23(2), pp.418-428.
Huang, R. and Sarigöllü, E., 2014. How brand awareness relates to market outcome, brand
equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-132).
Springer, New York, NY.
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.
Khan, M.T., 2014. The concept of'marketing mix'and its elements (a conceptual review
paper). International journal of information, business and management, 6(2), p.95.
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16STRATEGIC MARKETING MANAGEMENT
Lim, Y. and Weaver, P.A., 2014. Customerbased 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 customerbased museums brand equity
model: The mediating role of brand value. International Journal of Tourism Research, 17(3),
pp.229-238.
Masood, S.A., Jahanzaib, M. and Akhtar, K., 2013. Key performance indicators prioritization in
whole business process: A Case of Manufacturing Industry. Life Science Journal, 10(4s), pp.195-
201.
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.
Montgomery, C.M., 2017. From standardization to adaptation: Clinical trials and the moral
economy of anticipation. Science as Culture, 26(2), pp.232-254.
Mulhern, F., 2013. Integrated marketing communications: From media channels to digital
connectivity. In The Evolution of Integrated Marketing Communications (pp. 19-36). Routledge.
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.
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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.
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Appendix
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