BU7411 International Marketing Strategy Assignment Sample
Introduction
Culture profoundly influences how people think, communicate, and behave. It also affects the kinds of transactions they make and the way they negotiate them. Sysco Corporation is a company in the United States that offers meats, both fresh and frozen, preserved as well as dry foodstuffs, frozen vegetables and fruits, bakeries to its consumers (Our Purpose, 2021). http://BU7411 International Marketing Strategy Assignment Sample
As the company want to increase its global presence, they want to expand the business across India to utilize the effective consumer base of the country. The evaluation of cultural dynamics throughout India will be analysed through two models named- Consumer Culture Theory and Hofstede’s Cultural Dimensions to support Sysco Corporation, US for launching its business within the nation.
Cultural aspects of potential market
Consumer culture has quite a wide, almost all-encompassing character to it (Arnould & Thompson, 2018).http://BU7411 International Marketing Strategy Assignment Sample It means that essential identities are formed and orientated in connection to consumption throughout modern society. Family relationships are among the most noticeable variations between American as well as Indian culture. Whereas the Indians place a high value on families, the American citizens place a high value on individualism.
Independent beliefs are given less weight in Indian society than family morals. Indians hold conservative values in high regard. Individual values, on the other contrary, take precedence within American culture above familial beliefs. Indians become more dedicated to their families, whilst Americans are primarily concerned with themselves.
Therefore, the consumption of Sysco products across Indian consumers will be higher than in the United States and the product portfolio needs to be implemented with family-oriented products. However, the shifting of Indian culture towards nuclear homes rather than joint family supports increasing the purchasing capacity of Indian consumers.
As per the World Bank’s most recent figures, India achieved a literacy level of 74.4 per cent in 2018: 82.4 per cent for males and 65.8 per cent for females (Rozenas & Sadanandan, 2018). http://BU7411 International Marketing Strategy Assignment Sample
The literacy percentage, from the other extreme, varies greatly from one province to the next. India still possesses a fifth of the globe’s severe poor, as well as social inequities are indeed not widespread but also increasing.
During the next several generations, the growth of this demographic group – both in respect of numbers and wealth – is predicted to become the primary source of spending throughout India. Nonetheless, increased salaries have an impact on consumer buying patterns across the board.
The caste arrangement, which divides society within India, has a significant impact on customer behaviour and attitude. It generates social distinctions and allows members from a similar cultural circle to develop their relationships. As a result, a company will become much safer to promote through parental endorsements and brand awareness.
Indian customers, on the whole, are loyal to a single brand, although they are not restricted. Moreover, they prioritise the purchase’s additional benefit as well as the brand over its brand image. Companies that want to attract as many customers as feasible should invest heavily in market penetration.
India possesses a hierarchical culture, as evidenced by its high Power Distance Index rating. The caste hierarchy divides the social system into pyramidal divisions each with its standing, set of standards, and general function, like a monk, soldier, trader, and labourer.
As it can be observed in Hofstede’s 2nd cultural component on Individualism, India represents more of the collectivistic cultures, while the United States is more individualized (Datsiuk, 2018).http://BU7411 International Marketing Strategy Assignment Sample Indian civilization, which is predominantly patriarchal, revolves around the household.
A family’s multiple generations are gathered united to reside in the same house. The hierarchical character of Indian society, as previously noted, continues to the household, with the family head making the most important decisions.
Individuals in the United States are far more self-reliant; therefore, they are motivated to make their respective personal judgments without consideration for the opinions of others.
Within America, family and work are frequently separate elements of one’s lifestyle and reconciling the opposing requirements of them both has been recognized as the ‘work-life balance’ difficulty.
The opportunities of Indian markets will be-
- Retail penetration is minimal: India’s structured retail penetration remains low, around 6 to 8%, particularly when contrasted to industrialised countries including the United States as well as the United Kingdom, which maintain retail penetration rates of 85 per cent as well as 80 per cent, respectively (Kalia et al. 2018).http://BU7411 International Marketing Strategy Assignment Sample
The companies will undoubtedly witness a transformation in the upcoming days as a result of new policy improvements, increased spending power, as well as a shift in shopping habits.
- Aiming for the Middle Class: Tier II, as well as III regions throughout India, have an inhabitant of 100 million people, making them greater than nations like Germany and the United Kingdom (Torri, 2017). http://BU7411 International Marketing Strategy Assignment Sample Furthermore, the undeveloped rural population represents a huge opportunity for retail chains like Sysco Corporation. By 2021, this is expected that around 67 per cent of Indians should still be living in remote regions.
The threats of Indian markets will be-
- Real estate and property accessibility: In multi-brand retailing, commercial property and leases are critical concerns, and obtaining a reasonable price in the chosen region is critical. Some merchants have left cities due to excessive renting costs, which put a strain on business margins.
- Human Resources are a valuable resource: Human resource management remains one of the major three discussion topics for retailers, despite the organization’s high turnover rate. Attrition rates within the industry range from 20 to 25 per cent throughout the non-food as well as grocery sector to 60 per cent for the food and beverages sector Aboobaker et al. 2017).http://BU7411 International Marketing Strategy Assignment Sample
Conclusion
The Indian culture and social structure may have some limitations like caste system, income level and others, however, the emerging preferences of consumer towards online shopping and digital payment along with interaction with other global businesses will assist Sysco Corporation to start its business within the nation. The social structure of India can support the diversified product ranges of a company like Sysco to generate more revenue including a potential consumer base.
References
Arnould, E. J., & Thompson, C. J. (Eds.). (2018). Consumer culture theory. Sage.
Datsiuk, T. (2018). The impact of Hindu philosophy on the business behaviour in India.
Kalia, P., Kaur, N., & Singh, T. (2018). E-Commerce in India: evolution and revolution of online retail. In Mobile commerce: Concepts, methodologies, tools, and applications (pp. 736-758). IGI Global.
Our Purpose. (2021). Retrieved 28 May 2021, from https://www.sysco.com/About/Company-Profile/Our-Purpose.html
Rozenas, A., & Sadanandan, A. (2018). Literacy, information, and party system fragmentation in India. Comparative Political Studies, 51(5), 555-586.
Torri, M. (2017, April). ‘Westernized Middle Class’: Intellectuals and Society in Late Colonial India. In The Congress and Indian Nationalism (pp. 18-55). Routledge.
Aboobaker, N., Edward, M., & Pramatha, K. P. (2017). Work–family conflict, family–work conflict and intention to leave the organization: Evidence across five industry sectors in India. Global Business Review, 18(2), 524-536.
