Marks and Spencers Company in the UK - Essay Example

Introduction Marks and Spencer’s company in the UK Cross cultural analysis between UK and Singapore There are various approaches for the cross cultural analysis in the markets and they include the research conducting method across the different cultures. The growth in the international marketing has further created a need for the cross cultural analysis. The markets in the UK and also in Singapore are not geographically integrated thus the need to conduct research which would go beyond the borders of these two countries so as to examine the varying consumer’s behavior. The cross cultural analysis will allow the marks and Spencer’s company to be able to understand the consumer’s trends so that they can be able to properly position their products strategically in the markets as they seek to meet the consumer’s needs as well as influence the consumers to purchase the company’s products. The Marks and Spencer’s company should therefore ensure that the company’s brand positioning strategies are adequate enough so as to respond to the core values and also the needs of the consumers. Cultural differences could be a threat in the company’s expansion to the foreign markets therefore the Marks and Spencer’s company should develop a deeper level of understanding of the local as well as the international cultures and also their influence on their global consumers. (Barton 2006) Therefore the Marks and Spencer’s company needs to make an evaluation on the social cultural changes before it enters into the new markets with the company’s new products and it is also necessary that the company makes proper preparations on it positioning strategies. The variability’s in the social cultural aspect of different target market countries always leads to the development of the differences in the consumer behavior within and also across the national borders. This provides a very good explanation on the variations between the consumer’s values and also behaviors. There are various methodologies which are used in carrying out the cross cultural analysis. In the sampling methodology there is an empirical study of which investigates the consumers behaviors in more than one culture for instance in Singapore and the UK. Thus there is much emphasis on the on the comparative studies which regards the consumer behavior in the different cultural aspects. Similarly literature gives a clear distinction between the cross cultural and the cross national studies which have been conducted. There are several cultural; differences existing between Singapore and the UK despite the many similarities which also exist. (Bell 1980) First and foremost there is a difference in the way people talk their accent as well as the wordings. Similarly the two countries have very different ways of making their friends, finding their jobs as well as interacting in their offices. The social systems of the two countries are also vastly different. In Singapore the people are outwardly very friendly and they also talk to strangers everywhere but they really do not make really close friends like in the UK. On the other hand the people from Singapore do not like in any way to make satire since they think that it is a waste of time by those who do not have anything substantive to say. In the UK the satirical comments are always understood generally and this is also done in the social settings. In the Singapore culture the people are very family oriented unlike in the UK. Similarly the Singapore media does not speak much about Europe let alone the rest of the world. Another notable difference between the Singapore and the European cultures is that in Singapore the foreigners are treated with a lot of curiosity and they are also viewed as being very exotic and also different. But o the other hand in Europe there is a melting pot for people with different cultures and languages. On the other hand there is free medical treatment in Europe for all the European onion citizens as well as the legal immigrants that reside in the UK. On the other hand in Singapore there is no universal and also free medical treatment for all. The schooling systems in both countries also run very differently. Similarly Singapore has a very diverse landscape in general and the country also has more than one time zone unlike in the UK whereby there is only one time zone. (Benter and Booms 1981) The population in the UK guards their privacy very closely and most people view them as being very reserved. The languages between the people of Singapore and the Europeans have many differences and even their English does not contain their basic language. The Singapore population is not always able to tell where one comes from in the UK on the basis of their accent. The two countries also have very different spellings in their words and also both of their expressions are not so easy to understand How the social cultural factors influence the consumer behavior The consumer’s behavior in the company’s industry is determined by several factors which include; the customers shopping trends, the customer’s income, the pricing of the products and also the innovativeness of the company. In the recent past the consumers shop for new products from various companies on the practical basis rather than the style and fashion drive. The consumers do not make any of their buying decisions in a void since their purchasing behaviors are greatly influenced by some social cultural factors. The consumers are however not controllable in their buying behavior but the cultural as well as the social factors influence their buying behavior. The social cultural factors have a lot of influence on the consumer behavior. Similarly the social cultural factors in Singapore will influence the consumer’s behaviors towards the products from the Marks and Spencer’s company. (Borden 1978) In Singapore the consumer’s purchases by the cultural and social factors and the cultural factors exert the deepest as well as the broadest influence on the consumer’s behavior. This means that the marks and Spencer’s company needs to further understand the roles which are played by the Singapore consumers in terms of their cultures, subcultures as well as their social classes. The Singapore culture is known to be the most essential determinant of a person’s behavior and needs. The consumer’s behavior is largely learnt and an individual in Singapore the basic set of values their preferences perceptions by a process which is known as socialization. The Singapore culture also has various sub cultures or groups of people who share their value systems on the basis of the daily experiences and also situations. The people of Singapore on the other hand have very distinct ethnic interests and tastes. Similarly the racial group in Singapore consists of the various ethnic groupings of people who have their very distinctive cultural attitudes and styles. For instance some ethnic groups will choose what to buy based on their personal attitudes since they are known to be very designer oriented thus they will tend to look for the trendy outfits so that they can be in line with the latest fashions in the markets. On the other hand the other ethnic groups are less concerned about the latest fashion trends in the markets and the mainly focus on the quality as well as the elegance of an outfits design. Some people from different ethnicities are more casual than the others and this highly affects their consumer buying behaviors in the various industries. The majority populations in Singapore as well as the other minority groups make up very important market segments and the marks and Spencer’s company will thus need to design different products and also marketing programs which will be tailored towards meeting the needs of these segments. In Singapore there is a social class structure and these are relatively permanent and ordered divisions in the Singapore society. (Borden 1964) The members of these divisions however share common interests, behaviors and also values. The social classes in Singapore are determined by the following factors; income, occupation, wealth as well as the educational level of an individual. Those who belong to a particular social class in Singapore they exhibit similar behavior including the consumer buying behavior. The social classes in Singapore on the other hand show very distinct brand and also product preferences in the aspects of home furnishings, clothing’s activity, leisure and also automobiles. The people belonging to the low social class will tend to purchase goods and services which are priced very low unlike that that belong to the high social class who will tend to go for the goods and survives which depict class and those which are very expensive. On the other hand the consumers buying behavior is influenced by the social factors which are inclusive of the consumer’s reference groups, the consumers family as well as the consumers social role and status in the society. Since the social factors can greatly affect the consumers responses. The social and cultural factors in Singapore will also have some strategic implications on the company’s marketing mix. The company will have to promote its products in a very captivating way o that most of the consumers can be drawn towards purchasing products from the marks and Spencer’s company. On the other hand the company will need to design their products n a way that the consumer’s needs will be met as per their social classes in the Singapore’s different sub cultures. (Berry 1994) In the company’s product aspects the goods have to be specifically made so that they can relate well to the consumers wants and also needs. And this will include such things as the guarantees and also warranties of the products. In terms of pricing the company will set different prices for all its products and this will attract different classes of people according to their affordability. The higher prices will tend to attract those who are from the higher social classes than those who are from the lower social classes. On the other hand the company’s promotional strategies will tend to attract very different kinds of people who hold different values as well as perceptions in the Singapore markets. This means that some promotional methods would be very effective with different kinds of people. When it comes to the distribution of the company’s products this would also be highly affected by the cultural and social differences in the consumers in Singapore. For instance some of the company’s products would really attract a larger number of the young adults than the business people. The family members would also influence the buying behavior of an individual in Singapore and this could be strongly influenced by politics, religion, economics and also an individual self worth. Standardization versus adaptation for the global marketing communications When the company is introducing its products in the Singapore’s market’s it has to consider several strategic options and they are inclusive of the standardization and the adaptation strategies. In the adaptation strategies the company makes several changes so that it can fit into the new market requirements. On the other hand in the standardization strategies the company has to produce the same products for all its markets. On the other hand the company using the standardization approach should have standardized products which have similar communications strategies globally. Similarly the standardization strategy would be very cost effective for the company since it will pave way for greater economies of scale. This kind of strategy would be very useful for Marks Spencer’s products since this are some kind of luxurious type of goods. On the other Hand in the extension adaptation the company will standardize its products with different communication strategies globally. (Braun and Robert 1989) This will also be very cost effective since the communication adaptation is far much less expensive than the tailoring of a product into the new market. In the adaptation strategy there are various changes that are made on the company’s products with the same communication strategy globally. This means that the company’s products are changed in their formulations and design without the knowledge of the consumers. Similarly adaptation entails the research development expenses of a product as well as the tooling costs that are incurred in the process. (Clinton 1998) On the other hand the adaptation strategy does not allow for the economies of scale to the extent which is possible in a product extension strategy. However there are a lot of savings which can be realized from the creation of a sole communication strategy. In the dual adaptation strategy there are changes which are made to the company’s products and they are also made to the communications strategies. This however recognizes the social cultural differences from one country to another. In order to make this option more profitable the foreign markets need to have very sufficient volume. There are several factors which encourage the standardization of the product and this includes The economies of scale in the company’s production, marketing and communications, stock holding as well as the research and development f the product. The homogeneity of the markets The easier management and also control The cultural insensitivity The products image and its perceived value The sales value for the incremental costs and sales. The consumers mobility There are also several factors which encourage the adaptation or modification of a product and they include; The compliance with the governmental requirements The unavoidable technical changes The legal requirements which include the local components and other technical requirements. The marketing communications mix The marketing communications has a mix and the elements of this mix are well blended in different quantities of a company’s campaigns. Thus the marketing communication mix is inclusive of various elements the key marketing communication mix is inclusive of sales promotion, personal selling, direct marketing, public relations, exhibitions and trade fairs, brands, e-marketing, packaging and also advertising. (Dale 2006) Direct Marketing Direct marketing would be highly recommended as an effective promotional tool in the Marks Spencer’s global marketing communications. This is because the direct marketing is a channel free approach to the distribution and the marketing communications for the company. This will however give the Marks and Spencer’s company a strategy of dealing with its customers in Singapore directly since they all belong to the different social classes. In the direct selling of the company’s products the company will not have any channel intermediaries meaning that it will directly deal with the consumes. The marks and Spencer’s company could also the direct marketing media such as catalogues, newspapers and magazines inserts, the customer care lines, the media adverts, door drops as well as coupons. (Fletcher & Brown 2005) On the other hand the company could also make use of the internet and also the new media and this will allow the consumers to have access to the company’s products. Direct marketing would be recommended since it is very personal and all the customers’ questions can be answered. It is also a very efficient tool in convincing the consumers especially in the Singapore’s markets make their final purchasing decisions. Direct marketing is also very interactive and thus there is a lot of communication which goes on between the sellers and the buyers. This tool is also very excellent for the communication of the company’s complex or even more detailed product features and information. Through this tool relationships could also be built up as this is a very important aspect in the closure of a company sale. Similarly direct marketing helps the company to obtain immediate responses from the consumers and this further helps in the cultivation of the longer lasting customer relationships. The direct marketing according to the Singapore’s social; cultural aspects allows the company to focus on the best prospective buyers and the company will also be able to cross sell the related products as well as launch new products in the markets. International marketing entry strategies available for the company The Marks and Spencer’s company could adapt one of the following marketing entry strategies in the new markets in Singapore. However there are five strategies which can be used by the company in entering into the Singapore’s markets and they include; 1. The technical innovation strategy This will further require that the company demonstrates the superiority of its products even it if it will mean that the companies shorten the lifecycles of its products. 2. The product adaptation strategy. This strategy will properly guide the company’s technical and organizational portfolios in the development of the company’s new products for the low social class individuals who also want to enjoy the company’s products. (Nagel 2002) 3. The availability and security strategy. This means that the company will be able to counter the perceived risks by overcoming the transportation risks as well as the other costs then making very suitable prices for the company’s products. 4. The low price strategy. 5. The total conformity and adaptation strategy. Similarly there are various ways through which the company can enter into the foreign market in America and they include; direct export, indirect exports, production, franchising as well as the joint ventures in the new foreign country. The Marks and Spencer’s company could use the licensing strategy whereby it would identify a specific firm in Singapore which will agree to permit its entry in the Singapore’s markets as it uses the manufacturing, processing as well as the company’s trade mark including the licensors know-how. This will however mean that the company will need a lumpy investment in its building capacity. This entry strategy will further reduce the company’s entry point risk and it will also benefit both companies one in Europe and the other in Singapore. On the other hand the capital or both companies would not be tied up and there will also be more opportunities to buying into partners or even royalties on the company’s stocks. The transaction costs are also reduced as well as the time involved in transporting processing and also storing the company’s products. On the other hand the company could adapt to the joint venture strategy whereby it will identify a company in Singapore with which it will share its ownership and also the control over the company’s property rights as well as its operations. (Lee and Carter 2005) Similarly the company could also use the direct or indirect foreign market entry strategy since there will be sharing of the risks involved as well as the technical know-how between two companies in different markets. This could also be the only means of entry for the Marks and Spencer’s markets in the Singapore’s markets. In addition to this these strategies could also be a source of supply for a third country. In the direct entry of the company into the Singapore’s markets it could use the agents, the country’s government, an overseas subsidiary as well as a distributor. (Kotare and Helena 2004) In the indirect entry strategies the company could use another trading company, a piggyback, an export management company as well as the counter trade. Similarly the company could also use the following strategies in its entry into the Singapore’s markets; joint ventures, contract manufacture, the export processing zones and also the ownership strategy. I would recommend that the Marks and Spencer’s company use the joint ventures strategy since the company will have a host country which is Singapore from which it will obtain the know-how. On the other hand the company will not require a lot of capital in comparison with the direct entry mode and will also require lesser costs on its products adaptation in Singapore’s markets. Similarly the Singapore’s market will further provide the employment opportunities and the company will also benefit from the foreign exchange earnings in Singapore. If the company adapts the joint ventures then there will be a joint financial strength for the two companies. Similarly the Marks and Spencer’s company and the Singapore’s company will share the risk as well as the ability to combine the local profound knowledge foreign partner. Similarly this could also be the only means trough which the Marks and Spencer’s company could gain entry or access into the Singapore’s markets. Recommendation for the company’s next international market The recommendation for the company’s next international market would be Singapore. This is because Singapore has one of the largest economies in the world and it further represents a very staggering business potential for most of the industries especially in the fashion and design industry. The Singapore’s markets have the ability to further grow out of the country’s current recession. On the other hand the markets in Singapore have very good opportunities in the company’s market segmentation. On the other hand the social cultural differences in the UK and Singapore could be properly handled such that they will not significantly affect the Mark’s and Spencer’s company in any negative way. Reference: Barton, K. (2006): The concept of the marketing mix Presentation on marketing management, Vol 1, Oulu University -Finland Bell, D. (1980): Defining the Business: The Starting Point of Strategic Planning; Prentice-Hall, Benter, J. and Booms, B. (1981): Marketing strategies and organizational structures for service firms, in Donnelly, J. and George, W. 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