Multiple Chapters: Cultural Differences of UK and China Affect

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Cultural Differences of UK and China affect Next's Marketing Strategy for the China Market

Marketing

Cultural Differences of UK and China affect Next's Marketing Strategy for the China Market

This research is based on primary as well as secondary data. The research methodology for the purpose of this research consists of survey of online available various clothing & footwear retailer's practices. Additionally, we conducted a survey through questionnaire attached in the appendix. The participants involved managers and other decision makers of Next Plc. By circulating the questionnaire, we found out that different people have different perceptions about the Cultural Differences of UK and China pertaining to the Next Plc's marketing strategy. This research also includes different comments of Next Plc Managers and conclusions are based on the secondary data.

The methodology used for the purpose of this research is based on the secondary data. This research is more or less based on the literature review and the conclusions are drawn on the basis of actual resources listed in the references.

The method of investigation used consists of a theoretical framework of secondary data by reviewing the current position of the clothing and footwear retailers' entry into China. Using secondary data as a basis for conclusion will therefore aim to ensure the reliability and validity of this research by demonstrating how the cultural differences of UK and China affect Next Plcs marketing strategy for the China market.

Secondary research was conducted through a number of sources, including libraries and the Internet. A number of libraries were visited for gathering valuable data from textbooks and journals. The Internet was also a major tool in obtaining relevant information, leading to the search for a number of articles in journals and newspapers from database.

We conducted a survey of the practices of clothing and footwear retailers for proving the research hypothesis. This was done by adopting the three stage process: sample selection, questionnaire distribution and compiling responses obtained from the questionnaire. The questionnaire used for conducting this research is attached in the appendix. Also the data has been gathered through various sources out of which some are online while some are on paper.

The results of this research are accumulated by the questionnaire results and the information available on the web. We conducted a thorough study to find out how the cultural differences of UK and China affect the marketing strategy of Next Plc. We also analyzed the news articles published on the internet over a certain period of time.

Qualitative research methods, aims to provide a culture or are studying the situation and direct interaction with the public and the target audience's point of immersion researcher. In marketing research, qualitative and quantitative methods provide more authentic and reliable results as compared to the results obtained by using any one method. In this study, the combination of these methods provide us an indepth knowledge and understaning about the affect of cultural differences on the marketing strategy of Next Plc in China. Assuming the generated data collection and analysis, the measurement is often subjective. In the qualitative paradigm, as the researcher's data collection instrument, the results may vary depending on who were studied. (Albaum and Duerr 2008 pp.15-19)

The benefits of using combination of qualitative and quantitative research methods is that they produce rich, which gives the views of participants and provide a complete detailed data on health behavior. Once the process and "cause" from the quantitative research is obtained, it involves the correlation between variables focus of the differences. There is no such disadvantage of using combined methods of research. The only one disadvantage is that the combination of these two methods require some more time as compared to the single method in conducting the research.

This report analyzes how the cultural differences between UK and China will affect Next Plc's marketing strategy while entering into the Chinese market. By using this methodology, we were able to report more easily an analysis of cultural differences between UK and China for Next PLC vis-a-vis global benchmarks. (China Statistical Publishing House 2006 pp.45-48)

In this report, I evaluated cultural differences between UK and China and/or marketing tactics by analyzing Next Plc at the universal level, as compared to analyzing it on local level. There is also a detailed quantitative study, as it relate to the large amount of digital data acquisition. However, detailed quantitative studies, the data itself is often both the shape and limit analysis. (China Statistical Publishing House 2008 pp.102)

Firstly, the industry of Next Plc was identified to gain an insight into the industry practices. This was done by employing North American Industry Classification System (NAICS) which is a comparatively newer system for classifying the marketing practices and tactics of organizations. Secondly, the research analyzed how cultural differences between UK and China have affected Next Plc's marketing strategy in the past? Thirdly, the research sheds some light on the situation of Next at present, considering the risks, opportunities and cultural differences faced by Next Plc. Lastly, this research consists of some recommendation on how Next Plc should manage the cultural difference between UK and China while developing strategy for China.

Chapter IV: Empirical Analysis

Introduction

As mentioned before, Next Plc should have made some adjustments to suit the cultural & regional customers' needs. Next Plc should quickly respond to the regional customer's needs by adding some new product lines by opening two factories in Shanghai. For Next Plc, they simply adjust the number -of orders of existing products so as to satiate the demand regionally. Next Plc should provide more suits in Shanghai and Beijing while offers more colorful and low-priced products in Guangzhou. (Euromonitor 2009 pp.45) However, it is worthwhile to note that Next Plc does not specifically design its products to suit regional customer's needs even though they know that Guangzhou people are fond of bright colored causal wear while Beijing and Shanghai consumers are fond of more formal style of clothing. Playboy has considered the conflict of regional product adaptation strategy and scale economies. Next's China manager thinks that regional product adaptation strategy will incur prohibitive costs and it may not be economically feasible. If the regionally adapted products in particular regional market cannot have good sale records, it will increase the number of stocks and even losses. (Xu 2005 pp.324)

Discussion

The market in China is highly competitive and any miscalculation will lead to great losses. Next Plc is already a market leader and its brand loyalty is high. No wonder, Next Plc only adjusts the number of orders regionally. (Euronmonitor 2006 pp.11) for Next Plc, there is no such a regional product adaptation strategy as it is a leader in the market. It has already introduced cheaper product line-Word shoes in China and it is not necessary to invent new products to suit the regional customer's needs. (Marieke & Hofstede 2002 pp.61 -- 69) This is similar to Next Plc's situation. The company tries to utilize the success of one particular product such as the "easy ironing" clothing to expand to the remaining product lines. In this way, it is the market leader or follower, production costs and types of industry can really have strong influences on regional product strategy. (Wong 2005 pp.59)

Market positioning is important as it determines the positions that the firm has occupied relative to competitors in the mind of consumers. They have already occupied significant market shares within their industries. (Curry 2008 pp.78)

MNCs from different industries have different marketing strategies. For Next plc, it is an industry selling branded athletic products such as sports shoes. It can make use of the sports event like the world club to promote its products and increase brand awareness. For Mary Kay, it belongs to the cosmetics industry. It has to adapt its shapes of make-up to suit the needs of the beauty conscious Chinese ladies. For the ice-cream industry, Wall's have to adapt its flavors regionally so as to suit the tastes of the Shanghai and Beijing customer's needs. (Cooke 2009 pp.5-8) the ice-cream industry has to have a high level of product adaptation, as there is a wide selection for customers. Unlike the ice-cream industry, the clothing firms like Playboy, Giordano and Baleno and Bedding industry like a-Fontane do not adapt their products regionally though they have noticed the existence of regional customer needs. Playboy, Giordano and AFontane have factories in China to localize the product offerings in China. (China Statistical Publishing House 2008 pp.225) However, the cost of regional adaptation is so prohibitive and it may not be wise to adapt the products regionally. An alternative way for them is to adjust the number of product offerings to suit the regional customer's needs. (Veeck and Burns 2005 pp.47-61)

There is a diverse Chinese customer's needs and culture. This can explain the reason why Next Plc is so keen on pursuing the premium pricing strategy. They have placed great emphasis on delivering superior quality standard to customers. On the contrary, the poor rural population's… [END OF PREVIEW]

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