Cross-Cultural Marketing Report: GU's Expansion in Japan and UAE

This report analyzes cross-cultural marketing strategies, focusing on the expansion of GU, a Japanese casual wear retailer, into the United Arab Emirates (UAE). The introduction highlights the significance of cross-cultural understanding in international business, particularly in bridging the gaps between distinct cultural backgrounds. The main body of the report employs Hofstede's cultural dimensions model to compare Japan and the UAE, examining dimensions such as masculinity versus femininity, individualism versus collectivism, and uncertainty avoidance. These dimensions are then linked to how they influence consumer behavior and the marketing mix elements (product, price, place, promotion) for GU. The report recommends introducing ethnic fashion wear for the UAE market, setting premium prices, utilizing online platforms, and employing targeted promotional strategies. Finally, the report explores different market entry strategies to support effective expansion with reduced barriers.

Marketing across Cultures
Assignment CW2

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
A Cross-Cultural Analysis ..............................................................................................................3
Hofstede Cultural Model.............................................................................................................3
Social and Cultural Factors and the Marketing Mix........................................................................6
Market Entry Strategies ..................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Cross culture refers to the aspect that recognises the divergence among people of distinct
backgrounds, ethnicities, nations and the significance of bridging them. This concept is dealing
with the comparison between different cultural areas. In international businesses, cross culture is
a crucial issue as the success of international trade rely on effective interaction of workforce
from distinct regions and cultures. This report is the extension of Course work 1 which is done
on cross cultural analysis. The selected nations in project are Japan and UAE and it aims to
develop an understanding about the cultures of these two different countries along with the
impacts of these cultures on marketing activities of a company. For this, the selected company is
GU which is a discount casual wear manufacturer, designer and retailer of Japan. The firm was
founded in year 1973 and its headquarter is established in Tokyo, Japan. This report covers cross
culture analysis for understanding cultural and social differences between two nations which are
culturally different. Apart from this, it examines the way cultural and social factors could
influence behaviour of consumers towards products and services of company and its strategic
implication on marketing mix. At last, the report covers different market entry strategy options
that are available to a firm and supports it to expand effectively with less barriers.
MAIN BODY
A Cross-Cultural Analysis
Hofstede Cultural Model
Hofstede's cultural dimensions is a model which is developed by Geert Hofstede for cross
cultural communication. This framework helps in understanding the divergence in cultures of
different nations. Businesses use this model in order to distinguish between cultures of distinct
countries, its dimensions and their influence on operations and activities of business (What is the
Hofstede’s Cultural Dimensions Theory?, 2019). As per the course work 1, the most appropriate
model for cross cultural analysis is Hofstede's cultural dimensions framework which allows
organisations and individuals in analysing the influence of cultures of different nations on
offerings, values and cultures of a company. It assist in understanding the divergence between
norms and beliefs of different nations and their influence on offerings of firms of other nations.
Proper understanding of cultural differences and their impact on products and services is very
necessary for GU in order to expand in UAE. As the company is operating in Japan, the cultures

of UAE and Japan are significantly different which will likely to influence the offerings of GU.
Hence, proper analysis of all the cultural dimensions of Hofstede framework in context of the
cultural differences and their influence are mentioned below:
Masculinity Versus Femininity:
This dimension of cultural framework is associated with the society's preference towards
prevailing components and orientation within the country. It includes the attitude of society
towards sexuality equality, their preference for achievement etc. For instance, In context of
femininity, the people of society is more concerned towards cooperation, modesty and life
quality of society. On the other hand, masculinity comes from the dimensions that effectively
depicts that people of society is perceptive towards achievement, assertiveness, heroism,
material rewards, wealth building etc. this shows that society is very competitive in nature.
Japan has a highly masculine society in which rivalry amongst different groups is highly
evident. High degree of masculinity serves as a motivational components in business. Hence, the
products that companies are offered are based on competition along with this, firms ensure that
the prices set for its products are competitive in order to gain competitive advantage in market
and stay ahead in competition. Similarly, in context of GU, the company provides its fashion
apparels at low prices in comparison to its competitors in Japan. This enables the business entity
to acquire large number of market share. It depicts that the firms operating in Japan are with
masculine characteristics and the people of society emphasize on factors like competition, which
helps in improving strategies within marketplace.
On the other hand, in case of UAE, when the topic is about femininity and masculinity, it
has a balanced society. Hence, when the society existing in the nation emphasize on competition
or rivalry, it also considers the quality of life. Yet, both the femininity and masculinity aspects
indicates the perception of society towards the product offer by GU in the nation. For example,
so far there is minimal competition, the people of society in United Arab Emirates might
perceive the clothings offered by GU as low quality because of the current pricing strategy which
is adopted through company in its niche markets. Moreover, since the difference is evident
between the cultures and values of both the countries regarding masculinity and femininity
aspect, the chances of perceiving the products of company differently are high despite of minor
differences.
Individualism Versus Collectivism:

This dimension of the framework is associated with the extent to which people are
incorporate into groups and their interdependence on society. This is related to the way
individuals discern their self image. Individualism depicts that attaining personal goals is highly
important for individual whereas, collectivism shows the significance on goals along with well
being of group. For example: The people of individualistic societies tend to look on themselves
and their family members. On the other hand, people of collectivist societies have a strong
interactions in groups that encourage them to consider the society first before their own interests.
The society of Japan is given preference to individualism as it is more inclined towards
having their own opinion on the way they lead their lives. But, they consider society while taking
decisions as a sense of society is exist within decisions that directs them to choose the right path
and take sensible decisions in their life. The offerings of GU could be well reflected this as it as
one of the trending Japanese companies. The fashion clothing of company are popular and
accepted by females of nation. This shows that although females wear traditional attires, they
accept modern apparels too at an effective level.
On the other hand, the society of UAE is highly collectivist as that they are inclined
towards the society and groups exist within nation. The attitudes, norms and beliefs of the
society are considered by them and they are loyal towards those. The fashion clothings of
females are prohibited strongly within the country as these are not acceptable according to their
belief, religion and society's perception. However, there are transformations coming in the same,
but the company like GU can be affected because of this factor. Due to unacceptable fashion
clothing in UAE, the company could face difficulties in selling fashion apparels as these are
against the cultural and social norms of society of UAE. Apart from this, these are also distinct
from the values and norms of Japan.
Uncertainty Avoidance:
The uncertainty avoidance dimension considers the degree to which ambiguity and
uncertainty are tolerated. This aspect deals with the degree to which people within a nation feel
inconvenient in context of ambiguity or uncertainty. It emphasizes on the practices which a
nation requires to consider in order to avoid certain obstructions in future and taking risks.
The country in which GU is currently operating its business operations and activities,
i.e., Japan has a highest index of uncertainty avoidance in the world. The companies and
societies existing within the nation are tending towards taking preventive course of actions

beforehand. It also takes effective and appropriate steps in order to eliminate any kind of
accidents that can impact sustainability and offerings of company in an adverse way within the
market place. Therefore, the business entity mainly emphasize on investigating the environment
and examining the future so that it is able to produce its offerings in such a way that these can be
accepted and adopted within the markets in an appropriate way.
On the other hand, in context of United Arab Emirates, the society and organisations are
highly inclined towards having a rigid codes of belief and behaviours which are preventive
towards their culture, moral values along with their social beliefs. Apart from this, the culture of
nation and the society existing within it are quite intolerant of maverick ideas, concepts or
behaviour which might impede with their beliefs or attitudes. Therefore, this sort of difference in
the cultures between both the countries could have an impact on GU as well as its fashion
clothing while operating in UAE, as the society exist within the country is resistant towards
experiment, innovation and change which is different in comparison to the social and cultural
beliefs of Japan. In addition to this, individuals in UAE does not tend to change their preferences
in context of apparels in order to avoid any kind of uncertainty, as fashion clothing offered by
GU challenges the cultural norms along with social beliefs of people as there is significant
difference exist.
Hence, as per the above analysis, it can be stated that the cultural and social beliefs of
UAE are different from that of Japan. These differences are in terms of masculinity,
individualism and uncertainty that needs a elaborated insight for crafting strategies that closes
the gap.
Social and Cultural Factors and the Marketing Mix
Marketing mix consist of tactics or set of actions that a business entity utilises in order to
promote its product or make the people aware about its brand. It is reasoned as an effective tool
employ by business in order to influence purchasing behaviour of buyers. Different combination
of elements are included in it like promotion, product, price, place, people, process and physical
evidence which supports an organisation in gaining competitive advantage in market. At the
same time, the influence of culture is depicts over the offerings of business entity along with
distinct determinants of the framework. Compliance with norms and code of conduct in United
Arab Emirates have an influence over the offering. From the analysis, it is also determined that
the life quality of society is high in UAE that impacts the promotional and pricing strategy of

company. There are various factors and determinants are present in the country which are
completely distinct from that of Japan and having notable effect over each particular element of
marketing mix tool. So, in order to attain success in UAE market, it is crucial for GU to make
changes in each element of marketing mix as per the culture and norms of nation so that it can
enable to establish its business successfully in the new country. All the elements of marketing
mix in this context are mentioned below:
Product: GU will target the people of UAE by introducing ethnic fashion wear for
females of all age groups. By analysing the prevailing trends of the market that restrict females
to wear fashion apparels, this has been decided by the administration to introduce ethnic
clothing. This will render support to the business entity in order to effectively appealing to
potential buyers and creating a strong brand image there.
Price: It is decided by the administration of GU that it will going to set high prices for its
ethnic wear. The main reason behind setting high prices is that will target high class people who
wants ethnic wear with high quality without concerning about prices. This helps company in
earning high revenues and profits by fulfilling the needs of target customers.
Place: Online platform is the appropriate place through which firm can sell its ethnic
fashion apparels to customers and reach to large number of people. By the use of technology, GU
will sell its products through online medium so as to reach large consumer base. It will also sell
its clothes through physical stores in UAE that will assist GU in earning high revenues and
profits.
Promotion: In order to promote its ethnic wear in market, GU will use various
promotional tools like advertisement. Apart from this, the firm will adopt its own promotional
technique when expanding its business in UAE. The company will also utilize IOT and
digitalisation along with seasonal discount so as to promote its product effectively and provide
benefit to customers. All these activities will help company in gaining attention of more number
of people in UAE towards its offerings.
People: This aspect is associated with employees of company who will contributes
highly in making the business successful in UAE. The management is concerned towards
providing training to employees so that they enable to serve customers in more better way. It will
also provide cultural training to its employees, so that they can be familiar with the culture of

UAE and enable to work effectively. All this will help company in running its business activities
appropriately.
Process: As people are more inclined towards using digital technology, by looking upon
this trend within UAE, the administration of GU has decided to use high end technological
processes in delivering products to customers. The company will provide an option to customers
of making payments through any digital medium. They can pay by online banking, credit and
debit cards etc. By this, the company will enable to satisfying customers and operate business
successfully.
Physical evidence: The company will provide receipt to customers of what they
purchase. Also, the brick and mortar style outlets of GU serves as its physical evidence whereby
ethnic fashion wear will be made available to consumers. Apart from this, the ambience and
interior of its outlets is designed in such a way that will attract customers at large and firm enable
to earn high revenues.
Market Entry Strategies
Market entry strategies refers to the planned delivery and distribution methodologies of
products and service to new markets. The company which plans to expand its business
operations in foreign or international market will adopts distinct market entry options. Different
types of international market entry options available to the company that assists it in entering
into new country or nation with minimal risks. Some of the marketing strategies includes Direct
exporting, Strategic alliance, Joint venture, Franchising, Licensing etc. Adoption of appropriate
market entry option helps firm in expanding its business in new market successfully. It is crucial
for GU to select appropriate market entry option so as to execute their business activities and
operations effectively and efficiently with less number of hurdles. Some of the market entry
options that can be utilize by GU for expanding its business in UAE are mentioned below:
Franchising: This is the strategy in which the owner given right to franchisee for using
its brand name for some particular period of time and in turn takes some amount of money. In
comparison to the other market entry modes, Franchising is the most appropriate route for GU.
It this entry mode, one organisation provides right to another individual to use the name of its
business under some special specifications so as to produce and sell some product or service.
One of the main advantage of adopting this strategy is that it enables business to earn high
profitability as compared to some other newly established businesses. The main reason behind

this is good brand image as well as goodwill of the business entity. Apart from the advantage,
there are some disadvantages also. The drawback of this entry mode is that it requires high
initial investment in completing paperwork, initial formalities and many other legal formalities
which makes it disadvantageous for firm to make use of it.
Franchising is the most appropriate and feasible strategy for GU for expanding its
business in UAE. The market of UAE is good enough for women fashion apparel which
supports company developing strong image and brand name in new country. The control level is
high for franchisees for GU as it is dealing with customers directly.
CONCLUSION
As per the above mentioned report, it has been concluded that expansion of business is an
effective method which is utilised by company in order to capture large number of market share
and improve its profitability ratio. Before entering into new market, it is necessary for company
to analyse social and cultural norms of that particular country in which it wants to enter.
Hofstede cultural framework is determined as the most appropriate technique for this which is
useful in examining the cultural differences among distinct nations along with their impacts on
performance of the business. Marketing mix is essential tool that helps firm in attaining high
profits. Franchising is one of the most effective market entry mode that can be utilize by
company for entering into new market with minimal risks.

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Online

What is the Hofstede’s Cultural Dimensions Theory?, 2019. [Online]. Available through:
<https://corporatefinanceinstitute.com/resources/knowledge/other/hofstedes-cultural-dimensions-
theory/>