BU7411 International Marketing Strategy Assignment Sample
Introduction
International marketing strategy revolves around certain factors such as people, product, prices, and promotion packaging to name a few. This paper reflects the potential market, Japan and expansion of AB Sugar in Japan. In this paper, it is been discussed that how can AB Sugar follow these factors and grow.
It is reflected that AB Sugar has targeted to use the young adults and the office goers in Japan. AB sugartd is a global giant in the sugar industry. It is UK based company (AB Sugars ltd, 2021). They have decided to ban plastic usage and use 100% renewable packaging for the customers and the new target market.
Critical Evaluation of the Potential Target Market
Cultural Issues in Japan
In order to expand in Japan it may face various cultural obstacles. The language is most likely be a barrier as the local Japanese people are not comfortable with English as the communication will be a problem. Eating habits and eating manners can be confusing in Japan.
For example, the Japanese eat many foods in raw versions like an egg. Eating habits may be blunt to other cultures such as eating sushi with hands in a sushi bar. However, it is found that the taste of food of Japanese people is completely different that from the British (Hopkins, 2017).
Transportation is another challenge; the rush hour traffic is very busy in big cities of Japan. Proper consignment timing may get affected due to this heavy traffic load. Therefore, it is advisable for the AB group to carefully engage in consignments in Japan well ahead of time. Many companies have duty hours of more than 12 hours a day.
Differences between the UK and Japan’s Cultural Environments
| UK | JAPAN |
| · AB sugar group has to balance both sides to improve the productivity rate as well as maintaining the standard.
· UK model takes a long time to make any decision resulting in a slow outcome · Private life cannot be detrimental irrespective of the culture and the workplace should too be maintained, AB Group has to balance this. · UK model is too elastic (Trim & Lee, 2019). |
· Many times Japan model shows extreme negligence to detail while the model gives irreverent attention to small things.
· Japan model often makes huge decisions based on very little information · AB Sugar Group again has to balance in order to expand in the Japanese market (Thompson et al., 2017) · The Japan model sticks to its policy robustly
|
Hofstede model of Cultural Differences
Figure 1: Hofstede model of Cultural Differences
(Source: Country Comparison – Hofstede Insights, 2021)
From the above-mentioned picture, it is seen the power distance ratio of Japan is 54 while the UK has only 35. The individualism factor is 46 in Japan compared to 89 of their British counterparts. The above-mentioned model also reflects that the masculinity factor is very high in Japan, its 95 in comparison of a moderate figure of 66 in the United Kingdom (Country Comparison – Hofstede Insights, 2021).http://BU7411 International Marketing Strategy Assignment Sample
Again, the previously mentioned picture or model emphasizes that the uncertainty avoidance scenario is high in Japan its 92 in comparison to poor 46 of UK. Again, the chart shows long-term orientation figure is very high score of 88 in Japan compared to merge 26 of UK. The indulgence ratio is 26 in Japan compared to a high score of 68 in UK. AB Sugar has to keep in mind all these factors.
Halls cultural differences between UK and Japan
Figure 2: Halls Cultural Differences
(Sources: Ponds et al., 2018)
Overtness of messages in this segment Japan has scored medium and the UK has scored high, as the message delivery has received some of the obstacles.
Locus of control and attribution for failure Japan score low, and the UK also scored low.
Use of non-verbal communication Japan has scored high and UK is scored low.
Expression of reaction Japan and the UK both has scored high and customers are participatory.
Cohesion and separation of groups in this segment it is seen that Japan has scored high and UK has also scored high.
People bonds Japan and UK both the nation has scored high.
Level of commitment to relationships following from the above mentioned section it is seen that Japan and UK has scored same high.
Flexibility of time Japan has scored, low, as they are rigid about the time; on the contrary UK has scored high as they are flexible.
Eating with hand in a restaurant is acceptable in Japanese culture but it is not acceptable in British culture. The taste of food and perception of food items of Japan is completely different from UK. The working pattern or culture is different too (Ponds et al., 2018).http://BU7411 International Marketing Strategy Assignment Sample
Many Japan companies have 12-hour working hours while the UK has relaxed working hours. As the above-mentioned picture shows, the indulgence to any new idea is very good in British culture while Japan tends to stick to their tried and tested ways. Masculinity preference is another factor that differentiates the two countries. Japan has a very high percentage while the British has a low portion.
The main Opportunities and Threats of the new market to the Management Team
Opportunities: Entering into a new market is always a challenge to the management. In this case scenario, the AB Sugar ltd management has to cross the barriers of language, culture eating habits etc to expand in the Japanese market. Japan policy often tends to stick towards their tried and tested products.
AB Sugar has to introduce innovative ideas to expand and grow (Ponds et al., 2018).http://BU7411 International Marketing Strategy Assignment Sample
Threats: One of the problems may be lack of staff due to language barrier and inexperienced in the new market absorption process, Secondly ongoing or existing marketing trend overlapping the new or innovative model. Inadequate data to sales team is another obstacle.
Conclusion
It is hereby concluded that by analysing the aforementioned model that to expand in Japan, the UK based sugar giant AB Ltd. has to take some steps due to certain cultural differences between Japan and UK. The global giant has to change its perspective in some cases and has to fit into the needs of common Japan mass. Therefore, it can be said that above study can be a refereed to how to expand beyond comfort zone. AB sugar ltd. has to follow this track to expand and attain sustainable growth in future.
References
AB Sugars ltd. (2021). Retrieved 28 May 2021, from https://absugars.com/
Country Comparison – Hofstede Insights. (2021). Retrieved 28 May 2021, from https://www.hofstede-insights.com/country-comparison/japan,the-uk/
Hopkins, R. (2017). Getting to the core of the matter: an exploratory study on how social enterprises in the West of Ireland identify their potential target market and communicate their core brand values (Doctoral dissertation, Institute of Technology, Sligo). Retrieved from 28th May 2021 https://dspace-test.interleaf.ie/bitstream/handle/20.500.12065/2571/Rita%20Hopkins.pdf?sequence=3
Kim, M. J., & Hall, C. M. (2019). A hedonic motivation model in virtual reality tourism: Comparing visitors and non-visitors. International Journal of Information Management, 46, 236-249. Retrieved 28 May 2021 https://www.academia.edu/download/58556196/A_hedonic_motivation_model_in_virtual_reality_tourism_Comparing_visitors_and_non-visitors.pdf
Ponds, K. T., Arefi, A., Sayigh, A., & Ledwich, G. (2018). Aggregator of demand response for renewable integration and customer engagement: Strengths, weaknesses, opportunities, and threats. Energies, 11(9), 2391. Retrieved 28 May 2021 https://www.mdpi.com/1996-1073/11/9/2391/pdf
Thompson, M. J., Au, A., Laver‐Bradbury, C., Lange, A. M., Tripp, G., Shimabukuro, S., … & Sonuga‐Barke, E. J. (2017). Adapting an attention‐deficit hyperactivity disorder parent training intervention to different cultural contexts: The experience of implementing the New Forest Parenting Programme in China, Denmark, Hong Kong, Japan, and the United Kingdom. PsyCh journal, 6(1), 83-97. Retrieved from 28th May 2021 https://www.researchgate.net/profile/Margaret_Thompson4/publication/315895625_Adapting_an_attention-deficit_hyperactivity_disorder_parent_training_intervention_to_different_cultural_contexts_The_experience_of_implementing_the_New_Forest_Parenting_Programme_in_China_Denmark_Hong/links/5ba4b6bc45851574f7db2d0c/Adapting-an-attention-deficit-hyperactivity-disorder-parent-training-intervention-to-different-cultural-contexts-The-experience-of-implementing-the-New-Forest-Parenting-Programme-in-China-Denmark-Ho.pdf
Trim, P., & Lee, Y. I. (2019). How Business Relational Attributes contribute to marketing strategy development. Retrieved from 28th May 2021 https://eprints.bbk.ac.uk/27081/1/27081.pdf
