Marketing Across Cultures: HBS Strategic Plan for Kenyan Market Entry

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This report details a cross-cultural marketing strategy for Hertfordshire Business School (HBS) targeting the Kenyan market. It begins with an introduction to cross-cultural marketing, emphasizing the importance of adapting strategies to diverse cultural contexts. The report includes a situation analysis of HBS, highlighting the need to understand Kenyan market dynamics, competitors, and the overall business environment. Key issues in cross-cultural marketing, such as navigating cultural norms and legal frameworks, are discussed. The objectives of the marketing plan are outlined, focusing on understanding cultural influences, enhancing cultural competence, and identifying customer needs. The report incorporates a PEST analysis (Political, Economic, Social, and Technological) of Kenya, followed by a SWOT analysis to assess strengths, weaknesses, opportunities, and threats. An action plan is presented, including marketing objectives, target market selection, market research, and competitive analysis. Marketing strategies are detailed, covering product development, entry strategy, product strategy, promotional strategy, pricing strategy, and place strategy. The report also analyzes cultural differences between Kenya and the United Kingdom using Hofstede's cultural dimensions (power distance, individualism, masculinity, uncertainty avoidance, long-term orientation, and indulgence). The conclusion summarizes the key findings and recommendations for HBS's successful entry into the Kenyan market.
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MARKETING ACROSS CULTURE
Global Corporation strategically manages its marketing operation across global
market and culture
1/6/2019
Student Name
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Contents
Introduction....................................................................................................................2
Hertfordshire Business School situation analysis......................................................2
Key issues related to the Cross cultural marketing........................................................2
Objectives of the cross culture marketing..................................................................2
PEST Analysis of Kenya................................................................................................3
SWOT Analysis.............................................................................................................3
Action Plan.....................................................................................................................4
Strategies for marketing.................................................................................................5
Product development strategy:...................................................................................5
Entry strategy:............................................................................................................6
Product Strategy:........................................................................................................6
Promotional strategy:.................................................................................................6
Pricing strategy:.........................................................................................................6
Place strategy:............................................................................................................6
Cultural differences between Kenya and United Kingdom...........................................7
Small v/s large power distance:..................................................................................7
Individualism v/s collectivism:..................................................................................7
Masculinity V/S Femininity.......................................................................................8
High V/S Low Uncertainty avoidance.......................................................................8
Long V/S short- term orientation:..............................................................................8
Indulgence V/S Restrain:...........................................................................................8
Conclusion......................................................................................................................9
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Introduction
Cross-cultural marketing is defined as when all market behaviours are culturally bound. In
this both customers as well as business, practices are performed at the larger extent. When
countries become diverse, more opportunities along with the threats are arises. This entire
process of planning, producing, placing and promoting the company’s product in a worldwide
market helps in generating and maintain the cross culture, globally (Incitrio, 2018).
Hertfordshire Business School situation analysis
As (HBS) is going to do their business cross- culturally, they have to work over the certain
strategies, which are prevailing in the global market of Kenya. Likewise, they have to have
major focus on the communication skills, language, culturally. In market terms if they are
thinking of going cross culturally they have to focus on Kenya is other business schools
competitors, Kenya’s different marketing strategies. Not only this they have to look for the
entire environments working within the Kenya’s business schools they are classified on the
basis of political, economic, social and technological (Gallagher, and Savage, 2013).
Key issues related to the Cross cultural marketing
In concern to the internal environment, companies who are inclined towards the global
businesses have to certain issues, which become barriers in achieving success. Likewise,
(HBS) is turning them towards the Kenya culture and for that, they have to analysis the
overseas market and have to shift themselves according to the specific countries
requirements. Along with this, they also have to focus over the norms, laws, the business
culture, and their best practices to attain the global goals (Chen Lu & Weiwei Fan, 2015).
Objectives of the cross culture marketing
To majorly emphasis on the key influence of culture when making and implementing
decisions on international markets.
In order to enhance the cultural competences in the understanding of diversity in the
world market.
To majorly focus on the intercultural sensitivity and international communication
aspect.
To illustrate the intercultural marketing approaches in the variety of the business
settings.
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Major focus should be on customers’ needs, preferences and their behaviour
identification (Schech, 2014).
PEST Analysis of Kenya
Political
Political changes originated
from formation of bicameral
authorities administration.
There are the considerable
limits over the political
activities.
Kenya use to welcome the
foreign direct investments.
Tariffs and taxes are also
one the major point to be
highlighted while doing
business globally.
Economic
The quickest and the most
developed economy.
Kenya economy has experienced
the steep growth.
Country wealth is the mandatory
aspect to be considered.
A proper market research along
with the structure of the market.
A jump made by the population
from poverty to the upper and the
middle class.
Majorly focusing on the literacy
rates.
Social
In social terms, Kenya has young
population for that HBS can attract
them.
There are also low numbers of
higher education institutions.
Kenya is unable to carter the
demand for the labour market.
HBS can implement the modern
techniques and methodologies to
attract more and more students.
Technological
A mechanical improvement leads to
the change in working patterns.
Various organisations have
established and having a positive
atmosphere for the progress of the
nation.
HBS can bring them into Kenya may
have to exploit at the technological
front in order to give quality
learning techniques to the general
youth (Gupta, 2013).
SWOT Analysis
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Strength
Large customers’ base will be there.
Taking advantage of the profitable
market.
Maintaining their competitive edge
likewise, additional courses,
activities.
As population is now more towards
literacy, HBS will be benefited.
Weaknesses
Payments issues can be raised as
people out there are more in
financial terms.
Competition can be the biggest fear.
Matching the market standards and
strategies can be major
weaknesses.
Political standards and activities
are also one if the issues that may
arise.
Opportunities
Entering new market and the new
segment.
Expansion to the newest country.
Potential to accept the wholly new
products and activities done by
HBS.
Supporting the core business
activities and making them more
profitable and successful.
Opportunity to HBS to maintain the
quality education as Kenya lacks
business schools.
HBS can adopt new techniques and
methodologies to attract more and
more students.
Growing needs for the trained work
force.
Kenya growing opportunities for
educational organisations.
Threats
HBS while entering Kenya can face
other business schools as their
competitors.
Major threat of the cultural
differences.
Environmental effects can majorly
favour the Kenya business schools
more.
Competitors’ new business
techniques and innovation can
affect HBS.
Kenya legislations, legal and
political aspects can be a major
threat for the HBS.
Reduced number of adult teachers
literacy rate.
Lack of proper legal guidelines on
the implementation for the formal
education (Razafintseheno, 2016).
Action Plan
Marketing objectives and decisions
Selecting the target market and audience
Market research
Competitive analysis
Defining specific strategies and tactics
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Determine evaluation methods
Control and connections (McDonald, and Wilson, 2016)
Strategies for marketing
Product development strategy:
(Source: Baker, 2014).
In the product, development growth strategy involves introducing new product into the
changing markets with its existing products. Diversification growth strategy can be achieved
through offering new products into new market. Likewise, HBS is apply diversification
strategy in which they are about to offer new products into the new market.
In this HBS can apply three major tactics like in order to generate success business should
develop new features like more of practical activities, new methodology, new techniques will
helps HBS in attracting more and more students. Through this, they can maintain their
competitive edge over their competitors. Moreover, improving technologies and upgrading
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the teaching system will also help HBS while settling into Kenya and attracting more of
students (Baker, 2014).
Entry strategy:
In this strategy, to enter the into the global corporation, HBS for Kenya needs to apply
exporting techniques, merging and acquisitions techniques, use contract manufacturing, Joint
venturing and lastly, HBS needs to apply licencing and franchising of their brand name. All
this strategies helps in gaining opportunities along with this it helps the companies and the
organisation to face the intense competition prevailing in the market.
Product Strategy:
While entering the global market, the company foremost goals are to define target market and
determine their products. Likewise, H business school looks for their customers and their
needs. In this, they also focus on global strategy in which they sell their products globally in
the entire world in order to improve the economies of scale in production (Ferrell, and
Hartline, 2012).
Promotional strategy:
In international product decision, promotional marketing strategy adapts promotion strategy
to suit the local markets as cultural experiences and practices, which affects what appeals to
customers. Through advertising, they have to highlight the countries language, political,
climate, cultural attitude and their religious practices. Likewise, HBS looks the Kenya
culture, experiences the same, and make promotion strategy according so that such strategies
helps them in generating success and increments in the reputation (Terpstra, Foley, and
Sarathy, 2012).
Pricing strategy:
Pricing in international base is very complex. Along with the traditional price consideration,
which includes fixed cost, variable cost along with this it also includes more of transport cost,
tariffs, and exchange rates. In addition, in today’s scenario internet has challenge customers
to view worldwide prices and procuring products from all over the world. This has improved
the level of competition among the competitors. Similarly, HBS needs to form certain pricing
strategies in order to attract its customers. Like at initials the prices for the courses should be
low so that many students get attracted (Lee, and Carter, 2011).
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Place strategy:
This strategy highlights the distribution of product or service to the client at the accurate
place with the accurate time. For this, the global companies should use distribution strategy to
operate it business. It was examined that in overseas market more gatherings are involved
because belongings needs to be moved around the overseas market. Likewise, HBS had
chosen Kenya where their more demand of population is towards literacy. Along with this,
Opportunity to HBS to maintain the quality education as Kenya lacks business schools.
Lastly, Kenya is now growing opportunities for educational organisations (Kolb, 2013).
Cultural differences between Kenya and United Kingdom
(Source: Oloko, and Ogutu, 2017).
Small v/s large power distance:
Power distance highlights that at what extent the less powerful members of the institution and
organisation within the country accept that power is distributed unequally. In terms of Kenya,
it possesses the hierarchical society. This shows that people out their follows the hierarchical
order. Hierarchy in an organisation reflects that there are the inherent inequalities. There is
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the centralization of power is delegated. Subordinates are told to do what their bosses told
them to do (Oloko, and Ogutu, 2017).
Individualism v/s collectivism:
People in cultural aspect, they may think of themselves in terms of collected group. In United
Kingdom, they majorly focus on Individuality aspect in comparison with Kenya. Because
individualistic culture highlight directness, frankness, confrontation and open self- disclosure
whereas collectivism culture highlight indirectness and a subtle way working through proper
communication. In addition, this process influences the decisions and the ways the society
organised. Thatwhy, Kenya is more organised and top management having a proper decision-
making power, which is to be followed by, subordinates collectively.
Masculinity V/S Femininity
In place of more rivalry, accomplishment and achievement highlights the high score of
masculinity in the society, which creates vitality in the society. In terms of Kenya, there is the
masculine based culture. The behaviour in schools, at workstations all are based on the shared
values. All people out their strive to be the best they can be. They are proud of their success
and achievements and offer a basis for hiring and promotions decisions in the workplace. In
Kenya, conflicts are resolved at the individuals’ level and the mission is to win over it.
Similarly, United Kingdom is having an outlook of “live to work” so to acquire a high
financial rewards and consequently achieving higher position and more of opportunity to do
things in better way.
High V/S Low Uncertainty avoidance
Uncertainty avoidance refers to comfortably with unstructured and uncertain situations. Some
of the countries culture which, accepts ambiguity in negotiations and for the solutions, they
seek rules and regulations. Similarly, United Kingdom faces ambiguity and they tend to be
comfortable with uncertainty because they have low uncertainty avoidance and more relaxed
about negotiations. In Kenya Context, they have high uncertainty avoidance, regarding proper
rules and regulations regarding negotiation in comparative to UK Ochieng et al, 2013).
Long V/S short- term orientation:
This dimension defines that how society has to uphold some links with its own past while
allocating with the encounters of the present and the future. UK in this context takes the more
pragmatic approach in which they encourage thrifts and efforts in the modern education.
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They prepare a way for their future. In Kenya concern, no specification regarding the
orientation is highlighted over the graph nor is any stated statement regarding the same given.
Indulgence V/S Restrain:
This dimension highlights that extent to which people try to regulate their desire and impulse.
Weak control display indulgency and strong control displays restraint. In UK concern, people
over there are high on indulgency power, which generally exhibits a willingness to realize
their impulse and desires concerning having fin and enjoying life. This highlights their
positive attitude and having more tendencies towards optimism. People in UK societies,
having more of the leisure time and spends according to their wishes. In Kenya aspect, no
specification in general is provided nor is it highlighted in graph (Mungai, and Ogot, 2012).
Conclusion
From the above discussion, we can conclude that HBS while entering into Kenya, they have
to do proper market research along with this; both internal and external environment analysis
is also must as it will be helpful for what all-different techniques they can adopt in order to
gain competitive advantage over their competitors. Moreover, they need to take care of the
cross-cultural marketing issues and should think of different strategies in order to face them.
Other than this, this report also highlights the strength, weaknesses, opportunities and threats
that how HBS should set it strategies according in order to face threats arising in the market.
In Kenya, For HBS has a highest opportunity to win over other because over time there
literacy rates have been increased. Along with this, they are also having growing
opportunities for educational organisations. For all this, there is a marketing plan which is
highlights certain strategies that needs to adopted for the successful returns gained from the
potential customers and through the continuous innovation presenting the higher satisfaction
to them.
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