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Introduction

Sociolinguisticconsiderations discuss the different attitude of language between nations. Different countries thrive with different languages for example, Spanish and Hispanics differ on the basis of positive attitude to own languages. Hispanics prefer Spanish than Englishwhile Spanish feel that for advertising, English language is the bestone. Language matters most in communication and helps buyer to make decisions(Chung Han & Soo Ahn, 2013). The language of communication in advertisement is important to know consumer decision. Global brands use English language without any hesitation because English can better provoke customers to purchase and it is the most used language over globe. This research paper will discuss the role and impact of language on advertisement.

Impact of Language

As humankind makes development and progression, the conversational competency flourishes, and its roots are going more extensive. When we have a command of the language we can convey our thoughts to others, and push our ideas to outsiders, or can change its content, and can convey a message through communications, these skills impact marketing to attract the customers, influence the faith to purchase the products of related brands.

Placing and positioning of the product is the only purpose behind the numerous campaigns of the world. It can create tremendous forces on the retailer series, which is establishing around the globe. For advertisement and marketing, the graphics, content, verbal and descriptive conversation are necessary to build a report and provide guidance to consume the product, and resources proposed by the brand who invests his money to persuade the consumers(Dobson &Poels, 2020).

Language is an essential conversational means that help humans in the way of interaction. Language helps to create certainty and afterward systemizes it. The language supports invisible things and displays the presence. It also portrays the knowledge of someone. The language emphasizes experience, and experience relies on incidents, manners, targets, thoughts, character, nature, status, and cultural relationship(Chung Han & Soo Ahn, 2013). Language is not a symbolic system that creates a human culture that might be in written or oral communication. It also discusses social aspects based on cultural values, for example, garments, foods, customs, and traditions to form a society.

The discussion that is made on electronic media also represents language appearance. This discussion follows the powerful and intense conversational methods to protect the human culture and their defensive existence(hooft, Meurs&Schellekens, 2020). It also practiced giving information to others, providing truth, analyzing the behavior and opinion of others. The language also draws a craft on assets, advantages, and explains the flavor of an object. It also presents a view of experiences. Thus, the language follows its circumstances(Bishop &Lambie, 2007). The language affected social, educational, cultural values. Although social values and linguistic values are the same in society. An established society occupies developed linguistic values. Language is a powerful tool to express his ideas and emotions to others, and also a self-reflecting agent. It has a variety of uses, like writing, talking. The language also assists in developing cultural values. It plays a vital role in current cultural values in other communities. It also provides an identity to its speaker(Rinard, 2008).

In terms of broadcasting, language plays a vital role. It considers an essential tool for advertisement. The language also used in an advertisement for the transaction language that encourages the communication level. It also discusses the interaction of thoughts, that preferred the addressed and addressee relationship. The writer wants to describe the impact of language on electronic media, and measure the effect of scholar, audience, and listeners. It plays a dominant role and is sharper than a knife. When a person uses any ethical language through action, it is difficult to determine(Woloshin, 2009). Communication is also a graphical sound character. This act pushes a person to collapse and then towards the suicides. Language is a mysterious strength that is known as conversation. The language leads the world to supreme power, and we can measure its power by advertisement, who is competent to influence the people.

Concept of meaning 

The language signifies the confusing term. It is also applicable to evaluations, diagnosis, exposure, and presentation methods. Human behavior and action also affected language subjects and intersubjective. To recognize the human activities, we should know basic motives, by placing himself at the position of the speaker(Bishop &Lambie, 2007). When the pronunciation purpose required, the essays and reviews need to pay consideration to follow the covered meaning of discourse. When a person listens to something, the audience listens and understands it and answers according to it. The conversational sense describes the discourse context should be shorter and easy to understand and must be creating a relationship between the body and object, and referent to understand.

The word ‘house’ provides a sense of appearance; House is a combination of door, roof, window, and some other objects that all form residence for a person. There is a deep relationship between expression and referent, which also produces its further meaning and recommendations. This meaning and evidence of house, focus on the effect that creates a relation on its formation and nonlinguistic experience that are serving as nature. There are different meanings, and opinions are available to find out the correct definition, it follows three concepts of applications: 1) referential purpose, it shows the symbolic and referential relationship. 2) Meaning: It shows the meaning of a symbol, and the term will provide a sense if they are associated with another, time which is called ‘legally.’ 3) Intention: It wholly depends on the speaker’s wording or meaning of conversation that is being performed on symbols(Alonso García, Chelminski& González Hernández, 2013).

Media

Media holds an essential position in the world. Media has become a platform for many different ideological representations. Media can develop into a tool to create traditional and prevailing ideology for the interest of the leading class, at the same time it can develop into the instrument of struggle for the oppressed group of the society to create ideology and cultural competition, as media is described as the battlefield for the competing ideologies(Alonso García, Chelminski& González Hernández, 2013). As a source of communication in presenting news, analysis, or common view about anything, media has a significant part as an institution that develops public opinion as media can also shape into the imagery or pressure group that is placed into the life perspective more analytically. Media can present positive or negative influences. Certainly, this standardizing character is very relative, relies upon the provided interest dimension. People can learn to be familiarized with their atmosphere with the help of the media. Media has to turn out to be an instrument to deliver a message to the general public.

When mass media has used a language, then, in fact, their responsibility has increased toward the influence propagation, certain stereotype, and prejudice. Thus, the selection of words that are used by the journalists or creators of advertisements has to be significant because it can influence the choice of people in enhancing their knowledge.

In human culture, language is a global symbol system. Language meaning is not only limited to oral language, written language, but it also includes all social trends of extensive culture in society, for example, clothes, rituals, food menu, and others. In such a case, advertisement communication in all media forms is also taken as one of the phenomena of language. In the start, the system of language is an instrument of communication, to create combined social understanding in the general public. Language is not limited to its meaning of representing cultural realities, but having the power to develop or to build cultural realities(Bishop &Lambie, 2007). According to a study that there are fewer people who think that language has a major impact on their point of view or observation about something. In language development, it is not the only source of communication or code system against the norms that reflect the monolithic meaning of reality. Generally, language is continuously developed in a certain social system.

As the demonstration of different social connections, language always develops strategies, subjects, and different communication themes. Language is the visual mode in the shape of a symbol, or visual picture has the influence to develop a different ideology that will also change and outline our awareness and subjectivity. Sign language can also be as effective as oral language or written language. Language has a part to reflect the true nature of the use of significance of the advertisements to service or product goods that are advertised. Language is also used as a medium to advertise capitalistic commercialism beliefs to the community. The language power that has carried the colonization of human civilizing symbolic in the advertisement, in fact, is one evidence that the hostility of language show one influence that can poison the civilization’s existence today and in the future. As a study told that though the utilization of words can be mistreated and the struggle for respect may sometimes be observed helpless, we should never back-down the right to use them only in the truth service. One should aim to mean what they talk and talk about what they mean. The truth is that advertisements are used to persuade to purchase. But it is important to understand that in advising people to purchase a product, it needs to select the delivery well.

There are two important terms, high customer involvement, and low customer involvement. The first reflects the products that normally are higher in price and are bought comparatively barely; the second reflects the products that are lower in price and are purchased more often. Scholars gave a further detailed classification, that is, convenience products, shopping products, and specialty products. The former is the same as low customer involvement, whereas higher customer involvement goods are further divided into shopping products and specialty products. Specialty products are enormously more costly than shopping products such as marriage dresses(hooft, Meurs&Schellekens, 2020). The analysis of data in this study consists of all three kinds of products. Third, concerning techniques, there is a difference between tickle advertising and reason advertising. Reason advertising is simple and direct, whereas tickle advertising is in direct and needs viewers to exercise more efforts to understand them. And last, in view of the consumer-ship, advertisements may be classified by customers’ socio-economic class, lifestyle, age, gender, etc.

Conclusion

Bilingual advertising is important to know because it is increasingly used in communication. In US, advertisers are using many kinds of communication methods for advertisement. Ads with English and Spanish language are getting more recognition. Words, phrases and meaning in a language are linked to the socio-cultural values of a nation. Different languages work differently with advertisement and make consumers’ mind to buy. Impact of language on advertisement cannot be ignored.

 

 

 

References

Alonso García, N., Chelminski, P., & González Hernández, E. (2013). The Effects of Language on Attitudes Toward Advertisements and Brands Trust in Mexico. Journal Of Current Issues & Research In Advertising34(1), 77-92. doi: 10.1080/10641734.2013.754711

Chung Han, M., & Soo Ahn, B. (2013). A Study on the Effects of Motivations on Attitudes toward Advertisements : A Focus on Sina Weibo. The E-Business Studies14(3), 155-174. doi: 10.15719/geba.14.3.201308.155

Dobson, D., &Poels, K. (2020). Combined framing effects on attitudes and behavioral intentions toward mortgage advertisements. International Journal Of Bank Marketingahead-of-print(ahead-of-print). doi: 10.1108/ijbm-07-2019-0277

hooft, A., &Meurs, F. (2017). The same or different? Spanish-speaking consumers’ response to the use of English or Spanish in product advertisements. Conference Paper ·6(2), 1-8.

Luján-García, C. (2011). ‘English invasion’ in Spain: an analysis of toys leaflets addressed to young children. English Today27(1), 3-9. doi: 10.1017/s026607841100006x

Woloshin, S. (2009). Does Direct-to-Consumer Prescription Drug Advertising Do More Harm Than Good?. Annals Of Internal Medicine151(11), 824. doi: 10.7326/0003-4819-151-11-200912010-00021

 

 

Pages:5

Thesis Statement:

Celebrity appearances in advertisements have evolved massively throughout the years.

 

Celebrity appearances in advertisements are a prevalent theme found in many countries that is used to attract consumers. 

(A.1) It has been estimated that the instantaneous purchase of consumers towards a particular product that has been promoted by a celebrity is dependent on three factors: product attributes, price considerations, the attributed performance of the celebrity. https://www.sciencedirect.com/science/article/pii/S0895717710002979

(A.2) The theme of celebrity advertisements is prevalent throughout the globe as 30% of the advertisements published in Western countries, 60% of the advertisements published in Asian countries, and around 25% of the advertisements published on TVs in the US.

https://www.intechopen.com/books/advancing-insights-on-brand-management/celebrity-endorsement-developing-a-brand-image-in-housing-ads

(A.3) Magnini et al. (2010) proposed a new construct called celebrity power. Sometimes celebrity power can be so strong that it is the only selection criterion for an endorser. According to Magnini et al. (2010), celebrity power is most likely associated with physical attractiveness, but future research is needed to understand this concept. But it has been understood that celebrities possess inherent news value caused by their celebrity status (Corbett and Mori 1999)

https://pdfs.semanticscholar.org/3cd6/7083b06d80965d3426d463e826a816dad5f0.pdf

 

It is important to point out the massive changes this theme has seen through time.

(B.1) it has been proved that celebrity endorsement is most widely used marketing tool that can become the leverage to create the brand awareness in the mind of consumers, build up the brand image and enhance the brand favorability level in the consumer’s world.

http://www.sci-int.com/pdf/636328003998075004.pdf

(B.2) In the 1950s, every type of product was endorsed by celebrities. At times, the celebrities accepted non-monetary payments such as chocolates for doing a chocolate commercial, unlike in today’s era, where Brad Pitt earned about $4 million for a single Super Bowl advertisement.

In the 1960s, the advent of television led to a drastic increase in the advertisement budget. For instance, the advertising agency J. Walter Thompson Co. saw its budget grow from $78 million in 1945 to $173 million in 1955 and $250 million in 1960.

In 1970s a more systematic approach was followed. The Cola Wars took place that were the allure for celebrities

The 1980s was all about were predominantly about monetary and capitalistic gains. Unparalleled mergers of advertising agencies created large scale international reach for brands, while brands were also acquired in major deals. All this money brought celebrities on the get-go in the form of huge sponsorship deals. For example, Pepsi launched its campaign featuring Michael Jackson: He signed two separate deals with Pepsi in the 1980s, amounting to more than $20 million and fully cooperating with the Pepsi brand into the MJ brand. “It was game-changing,” said Brian Murphy, Executive VP of Branded Entertainment. “You couldn’t separate the tour from the endorsement from the licensing of the music, and then the integration of the music into the Pepsi fabric. If you pulled any one of those pieces apart, it really took away from what the campaign was all about.” It was the starting of the star driving the campaign in a way that had never been witnessed before.

The 1990s is known to be a time of fragmentation in the market of buyers, because of the growing force of immigrant and minority communities and the opportunities that new technologies brought about to marketers. By the 1990s, two thirds of the hundred largest advertisers had newfound ownership. Ad Age termed it “the decade of the deal” with good reason. A more widespread and diverse consumer base resulted in niche markets and focused campaigns. At the same time, agencies are looking to harbor trust, and more complex deals integrated marketing communications services into their deals to advertisers. Diverse campaigns offering promotions, PR, and online advertising, created a platform for the vast brand ambassador roles that would expand throughout the next 20 years.

https://insights.digitalmediasolutions.com/articles/history-celebrity-endorsements

(B.3) The symbiotic relationship between star, brand, and marketing campaign has some of its roots in the world of hip hop. It wasn’t just Mr. Clooney working his magic overseas. Many A-listers regularly represented brands in Europe and Asia in the early 2000s, including Angelina Jolie and Leonard DiCaprio. These endorsements were very lucrative for them and their brands internationally. It remains relatively uncommon, however, for stars of a certain stature to do television commercials in America.

With the arrival of social media and its role as an advertising game-changer, differentiating between influencer marketing and celebrity endorsements is a complex business. Print ads feature many top celebrities. Thus, in the 2010s, the goal was to make the brand interesting and relevant for the youth. The campaign featuring Isaiah Mustafa became hugely successful and set the bar high for other campaigns to follow. The 30-second advertisement starring Isaiah Mustafa was aired a few days before the Super Bowl and also the day after the game was played. Due to its appeal and humor, it quickly went viral. This was one of the most successful campaigns in the history of influencer marketing.

https://insights.digitalmediasolutions.com/articles/history-celebrity-endorsements

 

Some important patterns have been traced in the theme of celebrity appearances in advertisements.

(C.1) Millennials often trust influencers. They consider peers and thought leaders more than celebrities. Hence, with all the social media getting prevalent, a celebrity can post about a brand or charity, and his/her fans will see the message instantly. Celebrity endorsements are used to increase brand awareness and recall (Dhotre&Bhola, 2010).

https://www.revistaespacios.com/a18v39n06/a18v39n06p28.pdf

(C.2) Erdogan summarizes the benefits and advantages of celebrity use as increased attention, image polishing, brand introduction, and brand repositioning, and underpinning global campaigns.

https://zenodo.org/record/1091894/files/9997953.pdf

(C.3) US marketing research suggests that Generation Z teens (born 1995–2010) and Millennials (born 1981–1994), men or Black or African Americans are more likely to be influenced by celebrities with whom they share similar demographic characteristics.

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6801952/

 

Today’s celebrity involvement in advertisements is quite different from that of in the past.

(D.1) Today, advertising appearances by movie stars can also be lucrative, earning for some as much as $10 million in one year (Schiller 2006; Stone, Joseph and Jones 2003)

https://www.jstor.org/stable/27749658?seq=1

(D.2) Once a celebrity endorsement grabs their attention, consumers are assumed to become more interested in the advertised object as compared with a non-endorsed or other-endorsed object. This is due to the fact that celebrities possess inherent news value caused by their celebrity status (Corbett and Mori 1999). As a result, object recall and recognition is assumed to be enhanced due to greater message elaboration (*Petty et al. 1983).

https://link.springer.com/article/10.1007/s11747-016-0503-8

(D.3) Some advertisers sought out those athletes with a higher potential to become bad boys; some thought they worked better. Reporter Peter Newcomb mentioned 20-year-old tennis star Andre Agassi and all his temper tantrums. “America loves a guy who can make big bucks and then thumb his nose at the world,” said sports psychologist William Beausay. “Society has changed over the last 30 years. We went from a society where people had respect for one another to where the primary concern is for oneself.”

https://books.google.com.pk/books?id=4AoyBgAAQBAJ&pg=PA169&lpg=PA169&dq=How+celebrity+endorsements+in+advertising+has+evolved+over+the+past+30+years&source=bl&ots=W2skQmFne9&sig=ACfU3U1eKUHhwJDhKFOUVs2yA7Pc_p8EFA&hl=en&sa=X&ved=2ahUKEwjb7ainnOPoAhVERBoKHXYvA0o4ChDoATABegQIDBAl#v=onepage&q=How%20celebrity%20endorsements%20in%20advertising%20has%20evolved%20over%20the%20past%2030%20years&f=falseEndorsements in Advertising: A Social History

 

 

 

 

 

Pages:36

 

 

Abstract

Influencer marketing has become a leading strategy of advertising online today. Social media is playing an integral role in promoting brand name, image and recognition to name a few. Five to ten years ago, watch brands were following traditional marketing approaches, like use of advertisement through TV, magazines, brochures and pamphlets. With the advent of internet and advanced social media applications, watch brandsthat have taken advantage of this have seena spike in growth. The objective of study investigates that how watch brands have been using influencer marketing on Instagram to dominate the watch market in the past 5 years.The most popular influencer marketing application is Instagram. Celebrities and influencers are core parts of influencer marketing so they approach followers and make fan following for a brand.

Current research study identifies key dimensions of influencer marketing that play significant role for watch brands. Research study has used qualitative method to find significance of watch brands under influencer marketing, for this purpose, some case studies are used, such as, Daniel Wellington, 5th Watches, and Movement Watches. The research has inferred that influencer marketing in terms of better targeting, advertisement and technology has helped watch brands perform excellent in industry. Current study has clarified past myths about traditional marketing by using real life examples from watch industry. Influence of marketing is measured in terms of segmentation and buyers’ decisions. The research proved significance of influencer marketing and how this strategy has helped in boosting the growth patterns of products in the watch space in the past few years. Social media influencing strategy is superior to traditional marketing strategy in terms of targeting customers and boosting growth of hot trends.

 

Chapter1- Introduction, Background, Objectives

Watch industry is a popular segment of economy and famous brands are focusing on social media channels to influence its marketing (Martikainen, and Pitkänen, 2019). Instagram is one of these social media channelsthat has used its enormous pool of users to accelerate the sales of brand. Influencer marketing is a key marketing practice to reach followers through targeted messages. Social media channels primarilysuch as Facebook and Instagram use this marketing approach to capture people with opinion(Kim and Ko, 2012).

Marketing was introduced in 1954, Whyte used this term to explain how people talk about different products and services. This term explains the product preferences and similar purchase behavior. The word of mouth is integral to explain the behavior of consumer, their interests, and reshaping of attitude and values (Alaimo, K., 2017). It means that trust on informal communication by consumers is increasing while making a purchase.

1.1 Background

Social media trend is accompanied by marketing strategies to influence customers. Influencers are strong unions that is made up of alike minded consumers in social networking platforms (Ge and Gretzel, 2018).Marketing approaches are developed due to expansion of internet and digital media. For instance, today, on social media, such as Instagram, the discussion forums, posted views and instant messaging is common. Due to the changed scope of marketing, the concepts and strategies have accommodated people’s preferences(Anderson, S. and Neville, 2019). The word of mouth has been evolved into electronic for that helps reshaping purchase decisions of consumers. These influencers work through interaction and value. The common factors behind influence are loyalty, notable stature, size of audience and the authority in a community.

1.2 Significance of study

Social media influencer is an independent third party follower that can shape individual’s thinking and perception through tweets, blogs and vlogs (Kim and Ko, 2012).Independent actors are significant to shape the attitude of audience with the coexistence in social media. Influencers offer novel information and persuasive capabilities to develop brand information.

1.3 Scope of research

A kind of social media marketing that engages product advertisement from influencers, i.e. the individuals who are dedicated consumers and provide expert opinion about their niche. Influencer marketing works due to a large number of trusted influencers who recommend others about a product by providing social proof. Instagram is a similar type of social media that is targeting people, started in 2014, and provides a featured page that constitute successful products (Ge and Gretzel, 2018). The expansion of social media has given rise to education, knowledge and product awareness to people so a new trend of influencer marketing is established. Today, social media campaigns are used by famous brands like Starbucks, Microsoft, Virgin America, and Rolex (Approach, M., 2020).

Figure 1 Journey of Influencer Marketing

Use of social media marketing campaigns under influencers is motivated people to learn about this trend and get involved. This study is a motivation about this trend that has intended to explore this scope within watch industry. The study will discuss influencer marketing used by watch brands, its scope and strengths & weaknesses in same market. This section will further analyze influencer and traditional marketing in watch industry.

1.4 Aims and Objectives

This research study intends to investigate that how watch brands have been using influencer marketing on Instagram to dominate the watch market in the past 5 years?

Sub-objectives are to:

  • explorestrengths of influencer marketing
  • examineweaknesses of traditional marketing
  • describe social media channels, influence of marketing and digital world
  • to find out impact of advertising

1.5 Research Questions

The research question of this study is how the use of influencer marketing in the watch market, and why so many brands have been using influencer marketing in the past 5 years.

1.6 Project structure

The study is organized in following manner. The first section is introduction that will detail about influencer marketing, its scope and implications in the watch industry. The second section will discuss theoretical framework, including that how multi-million dollar brands can be built upon using influencer marketing on social media. The third section will be review of literature, mainly constituting research design. The fourth section will discuss different business models applicable in today’s world of marketing. The last section is about recommendations and conclusion.

Chapter 2- Literature Review

2.1 Use of Influencer Marketing by brands

Today, multiple brands are using influencer marketing, as a digital and innovative tool to attract audience and build their perception. The framework of influence is developed on three main pillars that is playing significant role to assess the effect. These pillars are relevance, reach and resonance. The resonance is a measurement of the interaction level or duration that surrounds a topic, content and the conversation (Silvia, 2019). The higher the resonance means more people are involved. The relevance is the graph of interest or the focus of the community that is reflected from individual behavior, in form of linked relationships where information is spread. The measure of affinity, popularity or potential impact is reach (Backaler, J., 2018).

Influencers are people, who develop interest of the audience into a product or service. The advertisement medium is changing and people are now focusing more on social platforms to approach celebrities. This process is also helpful to get customers involvedand make marketing campaigns. Brands focus on influencer marketing to outstrip the other kinds of marketing (Martikainen, and Pitkänen, 2019).

Figure 2 Cost of Influencer Marketing

Instagram is a social media platform and has gained millions of followers in short span oftime, it is used by brands to do influencer marketing. This photo sharing application is being used as a larger influencermarketing platform to accelerate product recognition and enhance brand value. Brands always focus on consumers’ wants and needs so a brand image is significant to build direct relationship of product and people (Backaler, J., 2018). It raises direct voice of influencer and tend to establish it on different social media outlets. Influencer marketing goals are to build reputation of brand and help individuals to stay aware of different activities, thus soliciting individuals’ feedback.

The success of social media influencers in the watch industry has taken a boom, due to engagement of millions of consumers by targeting their needs and preferences. The watch industry is versatile and it has generated huge sales by implementing latest technology tactics with the help of influencer marketing(Ge and Gretzel, 2018).Watch brands use this marketing approach to increase their connection with the customers and to retain them for the long term, this is because they can build a direct relationship with their customers via influencer marketing on Instagram. Literary studies have addressed the question of this paper and the findings are significant to answer objectives.The objectives and purpose of this research projects are fulfilled by incorporating relevant research studies and synthesizing their evidences. Studies discussed that more brands are engaging social media marketing and influencers to accelerate their sales (Brown, D. and Hayes, N., 2008). These brands use influencer marketing to engage audience and to build level of trust because this trust makes consumers take action and show their preferences. They also use marketing to target audiences because it is a way to ignite people to show their favorite product or services (Chevalier, J. and Mayzlin, D., 2003).Main notion of study is to target current marketing strategy which has been answered by literature evidences.

2.2. Strengths and Weaknesses of Influencer Marketing in the Watch Market

Research has shown that influencer marketing is expanding rapidly after 2017 but from 2018 it has become game changer. It is social media-related marketing in which a company, or organization launches its brand or commodity by using social media channels. In Influencer marketing, brands approachpeople who have many followers. Such individuals are called influencers. Influencer marketing is successful in thewatch market and it has been proven to be successful by many brands big and small new and classic brands (Fries, P.J., 2019). The core strengths are trust building, authority, effective reach to the audience and driving of purchase decisions. Due to influencer marketing, customers show their preferences andattract towards watch brands. It also emphasize that influencers are the trend setters for future(Cleave et al., 2016).

Due to influencer marketing, long term relationships of brandis built with audience.The trust building notion applies to each watch brand because it works on strengthening customer relationship. The efficacy to reach target audience is significantly analyzed from the watch brands and its scope. Recent influence of social marketing has stressed the access to generation Z and millennial. Numerous brands invest their capital on the influencer market to promote their brand (Harvey, P., 1998). This campaign is worth the effort in return and shows its incredible results. The influencer provides beneficial brands to followers and the brand gets 60 to 70 % return on investment. Moreover, it provides a sustainable method to build brand awareness, increases conversions, and demonstrative authority to brand.

Figure 3 Benefits of Influencers

The strengthsof influencer marketing are many. It helps to build trust and show authority.When a celebrity or a social media personality shares content for a brand, it creates trust. It provides brand awareness and brand reputation. The brand gets immense reach due to the reach of the influencer and therefore an increase in brand awareness. Influencer sets the trends,everyfollower follows their favorite influencer (Held, F., 2018). Hence, Influencers are responsible for setting trends.User generated contentis important strength. UCG is a key theme in brands like Daniel Wellington, Movement watches and the 5th Watches, and many brands today use influencer marketing to generate UCG because it shows their content as authentic but it also saves them money because their getting free content from influencers.

Ted Baker London and Kenneth Cole are leading brands in watch industry and they have targeted consumers all over the world. Geneva engages social media and uses influencer marketing (Martikainen, and Pitkänen, 2019).For example, Instagram is usingpaid partnershipthat drives brand value. The brand drive is positive for companies that engage influencer marketing and it generates brand awareness (Lerrthaitrakul, W. and Panjakajornsak, V., 2014).This is the core strength of influencer marketing for watch brands that it helpsgetting immense reach and better visibility.

There are also some weaknesses of the influencer marketing for brands.One of the biggest issues with influencer marketing occurs when the wrong influencers are chosen. Many studies describes that identifying right influencers for watch campaigns is significant to drive the sales (Liu, T.-C. and Wu, L.-W., 2009). Although it can take a lot of time and cost a lot money, finding the right influencer is critical for an influencer marketing campaign. Another weakness can be uncertainty of results(Silvia, 2019). If an influencer is hired to promote brand but they fail to produce goodcontent for the brand, this will not help sales because the content will not be engaging enough for their followers.Another drawback to influencer marketing is that some influencers are not really passionate about the brands they work with, and sometimes only work with brands to get paid and people can see through this and it can damage brand reputation, so its really important brands pay attention and only work with influencers that are passionate about their product. Social media channels are significant to accelerate business growth with the help oftargeted audience, its weakness is a defined segmentthat has not shown interest in the product being marketed or poor interest that do not yield significant sales.

2.3 Influencer Marketing and Traditional Marketing in the Watch Industry

Influencer marketing is different from traditional marketing in many forms(Lommatzsch, T., 2018). For instance, influencer marketing captures all the related factors to compile a targeted audience while traditional marketing promotes a productin limited way, such as Swiss Watch industry has used traditional marketing methods in 2011. Today, social media channels are playing an integral role to capturetargeted audience for a brand. Modern marketing is producing fan basedaudience for a product that guarantees success.The end consumer is realized already in every interest and preferences.Influencer marketing has also made it easy to establish brands for new start-upsso required achievement can be guaranteed (Chaffey, Hemphill and Edmundson-Bird, 2018). Influencermarketing offers choice to the customers through assessable channels and to reachthe right medium for effective communication.

In traditional context, ads and banners work notoriously to make an achievement that can disrupt the experience, however, banner blindness prevails that can ignore different other ads (Cleave et al., 2016). It can rise the perception that consumers feel suspicious towards the credibility of an advertisement. Watch brands using traditional media practices such as Omega watch brand before 2015 was using convention methods of advertising, it recovered its market share slowly, when focused on modern marketing practices (Mouth, W., 2002).Traditional marketing in the form of print media, television and radio is only effective to market a product but limited to influence it. More niches are available and working under influencer marketing as compared to traditional.

Traditional marketing is all about old methods of advertisement in which brands were dependent on print media and customers wereinterrupted in their daily lives. The concept in influence marketing is different as it brings forefront of the influential world where people show their interest in the products. Watch brands are developing betterinterest of audience into their products which is carried out through different attractive ways.

Figure 4 How traditional marketing works?

Traditional marketing cannot target young people specifically for example, you cannot put a banner somewhere in the high street and expect to show it to only 18-25 year old males, whereas with influencer marketing you can work with an influencer who has followers in this age range with interests that align with the brands products (Mukerjee, K., 2020). Traditional marketing doesn’t offer the same tracking as influencer marketing does, for example when a watch brand works with an influencer they can provide the influencer with a coupon code specially made for them so when customers redeem the code the brand can then measure its results and see the ROI, whereas with traditional marketing a watch brand is hoping for results with no real way of measuring results.

2.4 Use Of Influencer Marketing By Watch Brands

Should watch brand use modern way of marketing, a common question that is answered as yes. Real life examples like Omega and Swiss watch brands have switched to modern marketing from traditional.Influencer marketing is a unique form, not new for all the brands but it is productive. To target young generation, genZ and millennials, the use of social media advertisement and marketing techniques are integral. The influential marketing should be used by watch brands to increase the fashion sense in audience as well as bring them productivity of time management. Targeting audience in the form of social media influential techniques will add value to the companies and also generate sales (Silvia, 2019).On Instagram, visual content, attractive advertisement and engaging communication allows audience to focus more on products and value brands. The field of marketing is versatile for watch brands because with the fashion sense, audience can approach watch brands.

Figure 5 Brands’ emphasis

Influential marketing is also suitable for watch brands to pursue. For instance, influencers can share their preferences to engage followers, and majority of Instagram users follow celebrities, so the revelation of brand value by celebrities will boost the brand value(Martikainen, and Pitkänen, 2019). Most users rely on Instagram due to its value and brand advertisement. This fact is productive and valuable for watch brands to target media lovers. In addition, Instagram is an effective way to promote trustworthy brand and its authenticity. The paid collaborations are also on the way to influence young people(Chaffey, Hemphill and Edmundson-Bird, 2018). These factors can add valuable experience for watch brands and deliver better performance.

Instagram is a social leader of brands and businesses(Adams, 2019). Multiple brands get benefit from Instagram, due to its outreach, business horizons are expanded, thus allowing customers expand their potential customers’ reach(Wilson and Anderson, 2019). Instagram is a popular platform that has more than 700 million active users per month. Influence of Instagram on brands has changed the whole marketing game. Influencers are accessible, unlike celebrities, so it make easy for brands to get in touch for collaborations. Multiple fashion brands have broken traditional barriers to expand their reach(Cresswell, 2019). Watch companies need specific advertisement to explore potential buyers. It involves window shopping, which is exciting.Advertisingthrough magazines, billboards and TV ads is common practice for watch brands.

YouTube, Instagram, Twitter, and Facebook pay for aproduct to use. Influencer compelsaudience to purchase. Facebook and Instagram send the post, twitter tweets, and YouTube features the video (Martikainen, and Pitkänen, 2019). Influencer marketing, an influencer that motivates the people to act or to influence the followers to contribute to the progress of the brand is called influencer marketing in the watch marketing.With the advent of internet, watch brands realized the advantage of going online. For instance, Twitter and Facebookemploy effective marketing strategies to advertise watches. Instagram is a picture and video social platform that makes effective yet different connections with people as compared to previously mentioned platforms(Wilson and Anderson, 2019). Instagram has potential marketers and millions of followers who observe their favorite products daily. This allows watch brands to come up with latest videos and eye-catching advertisingto influence people.Watch brands use liberal policies to engage followers and do customer conversion. The Instagram followers provide ease to watch brands, such as providing picture of particular watch, its model number, price and sometimes store location(Influencers, 2019).

Multiple Watch brands, like Rado, Daniel Willington and Tiffany are using modern marketing to sell the products. Influencer marketing is a potential practice to reach the influentialpersonality followers through targeted message. This marketing concept is about a solo person as an influencer, who posts pictures and have an opinion. According to aBlogtoWatch findings, influencer marketing is irresistible to watch brands. The watch industry holds a healthy relationship with advertising and marketing. The confident watch companiesproduce compelling messages about their brands and speak to customers. For example, a luxury watch brand Rado is successfully campaigning in China and India using celebrities.Targeting different Chinese is done by focusing their preferences because they are well aware of the product.The watch industry has been witnessed to have a fractured relation with advertising since it is a luxury industry. In this way, brands do not go to consumers but consumers come to brands, being high end brands(Reviews et al., 2019).

70% of teenage YouTube subscribers trusted a common social influencer and attracted to purchase the brand product (Martikainen, and Pitkänen, 2019). 51% of Marketers influencers depend on video content sources may be on Facebook or YouTube. In this strategy, marketers get the best (ROI) return on investment means the company receives instant feedback in the form of profit which they invest in influencers.  This platform provides a source to earn huge profit, for example, a company that invests1$ on to influence the product while earning 6.5$ (Silvia, S. 2019). It’s the latest source to maximize its profit for the marketers and expected rapid progress in this marketing process.A Sweden watch company Daniel Willington is using social influencers after 2011 to create social awareness. Light weight and ultra-thin design allow consumers to get in touch with social media influencers.

Influencer marketing has two types of influencers.

Celebrity Influencer

Well, familiar brands approach celebrities to influence their product.

Micro Influencer

Common persons involved in marketing terms who built their profiles and are known as social media personalities. They have excess in numbers of their followers. A company approaches these micro influencers to use their product and show it to their audience.

2.5 Price-Quality-Strategy Model

The price quality model helps companies to position their products with respect to market and their competitors. They consider price level and competition in this regard so strategy helps review competitors’ framework.

Figure 6 Price Quality Model

Currently, watch industry is searching for fresh eyes that act as a roadmap to reach audiences, who prefer modern watches. Brands rely on influencers to reach new population, so it is a good investment to get involved social media influencers. It is estimated that in 2020,influencer marketing is estimated to reach 10 billion dollars because more brands are harnessing the sponsored content to getprofit (Cresswell, N. 2019). The watch brand Daniel Wellington has built a social strategyby investing £15,000 to make noise about watches(Cresswell, 2019). This strategy is playing a leading role for the brand to acquire a leading brand status in Europe. The key steps of this process are, sending free watches to Instagram’smicroinfluencers, they post photos on social profile using hashtags, and influencers get a unique room code to offer discounts. This way brands are spurring social users to get involved in regular competition campaigns(Influencers, 2019).

Influencer marketing is rampant due to paid opinion and selling luxury goods. Social media demonstrates the unscrupulous marketing danger because it is an age when brands work on ambitions(Silvia, S. 2019). The most significant part of influencer marketing is to change the public relations, in order to manage stories. The watch makers are eager to show positive sentiment to stakeholders, thus focus on marketing avenues and advertising. Instagram is virtually unregulated place, where paid opinion matter(Reviews et al., 2019). This range of entities that work collectively and offer unlabeled marketing contentis referred as influencers. In the Swiss watch industry, luxury watch media is a common concept, and media today informs educated audience about high end timepieces by complicating the product categories(Wilson and Anderson, 2019). Digital media is a style influencer regarding watch industry because virtual friends share information about products and engage followers to know about luxury watches(Adams, 2019).

 

Chapter-3 Methodology/ Research Plan

This chapter will discuss the research methodology and design of this study. It will elaborate the kind of research chosen for this study that suits the method and research planning. Research plan is explained as under:

3.1 Research philosophy

The research philosophy used for this study is ontology epistemology. It is about the philosophy of research pursued in qualitative aspects. The research study focuses on ontology Epistemology in terms of reality for different entities. For instance, in this research study, qualitative aspects of watch brands will be discussed with specific attention to influencer marketing. This kind of philosophy explains about the reality categories of product. The explanation of valid knowledge under broader theories is discussed to explore the direction of research (Robertson, 2008). The ontology explains about the interpretation of a specific concepts, such as influencer marketing, that is used in current research study.

The epistemology discusses about valid knowledge in light of information that is accessible. The ontology elaborates about the reality and how it is easy to understand the existence. Current research study has usedinfluencer marketing approachfor the watch brands.It provides that in reality, the products exists that need effective marketing approach to target customers. This research approach will discuss the key techniques and methods used to conduct study. For instance, the strategy plan or design for this study is qualitative (Goertz & Mahoney, 2012). On the theoretical grounds, the philosophical stance will be explained.

3.2 Research approach

The research approach for current study is inductive approach. The inductive approach is inductive reasoning, in which research proceeds after getting some observation of theoretical data. In this research study, the inductive approach will be about getting in touch with an issue, which is influencer marketing for watch brands, and its impact will be seen through social media. It moves from a specific to a general issue, which is influencer marketing and its impact on watch brands. The deductive method of research is to get involved with the social theories and test it with data (Klauer & Phye, 2008). This kind of research moves from general to a specificissue. The current research study stands with the inductive approach because it will move from a specific to general issue.

3.3 Research methodology

The methodology of this research is qualitative and this approach is chosen to elaborate more on secondary sources, peer reviewed journal articles and academicresources. Qualitative research is a significantmethod for the research study in which meaning, concepts and description is carried out with the help of peer reviewed scholarly articles (Klauer & Phye, 2008). A theoretical framework makes the foundations of the qualitative research. This research study is qualitative and will provide in depth analysis and understanding of different theoretical concepts, on the basis of past studies. This kind of analysis is helpful to create openness and encourage people to expand their ideas and responses about different topics. Qualitative analysis add valuable information to research study and explains theoretical evidences.

3.5 Data collection

The data collection is from secondary sources. In the qualitative research studies, data is collected from past studies, documents and focus groups. This way, theoretical information will be gathered that will make it easy to find out central concepts. Secondary sources used for this study are coming from secondary sources, journal articles, case studies and academic research papers.

Secondary source provide a valuableanalysis of existing research studies because scholars have added their viewpoints and conducted empirical research on them (Goertz & Mahoney, 2012). These studies provide an insights about systematicevidences, key factors and validity of data.

3.6 Data analysis

Data analysis in qualitative research defines different theoretical models, foundations, description of terminologies and observations (Robertson, 2008). After discussing different research studies, and scholarly viewpoints, the data will be analyzed in consistent form to find out the answer to research question. Data analysis will give rise to specific theories and structure of data that is adequate to discuss influencer marketing approaches for watch brands.this paper is using qualitative approach in which case studies will be analyzed.

3.7 Reliability / validity

Validity and reliability of data is to find out the internal consistency of gathered evidence. It is a process that guarantees authenticity of data and that there are no loopholes and all the research evidences found are valid. The reliability of study focuses on its generalizability, for examples, research documents, past studies, empirical research, case studies, watch market reports and social media findings will be used to discuss this study. This data will show validity, if gathered documents are from reputable resources (Shaha, 2004).

3.8 Ethics consideration

Key ethical considerations will be focused while completing this research study. These ethical considerations are about integrity & honesty, carefulness while estimating data, openness while discussing, objectivity, and use of authentic & credible sources to gather valuable information (Klauer & Phye, 2008).

Chapter 4-Analysis and Findings

The qualitative study has an objective to discuss how watch brands have been using influencer marketing on Instagram to dominate the watch market in the past five years. The methodology has used some case studies to discuss the influence of marketing on watch brands. Some case studies used for this research are some latest brands like Daniel Wellington, 5th Watches, Movement Watches, etc. a comparison is made of these new brands with those that arise in the past 5-10 years under the influencer marketing approach. The process of using influencer marketing and traditional marketing for the analysis of watch brands is significant in understanding the role of marketing.

4.1 Data Analysis

With the help of case studies, the marketing aspect, and its significance for the watch industry is estimated. For this research, three case studies of watch brands are used. These case studies are Daniel Wellington, 5th Watches, and Movement Watches.

Daniel Wellington is a Swedish watchmaker, it has successfully worked on hundreds of influencer marketing campaigns and acquired a competitive position. It has adopted an influencer marketing strategy, rather than going for traditional marketing campaigns to increase its success ratio (Adams, 2019). Filip Tysander was inspired from a simple strap of Rolex watch (an Englishman was wearing), and wanted to setup own brand. At start, as seed capital, he invested $US15,000. From 2013 to 2015, brand reported 4700% growth rate. In 2014, they produced one million timepieces per year, in comparison to Rolex that took 111 years to attain this success (Anderson, S. and Neville, 2019).

The revenue of Daniel Wellington in 2015 was $220 million, and it used Instagrammers’ power to convert a $15000 worth company into a successful brand only in 4 years. In the fashion world, Daniel Wellington has strategically leveraged modern marketing approaches and user-generated content to convert it into a favorable identity and engage millions of consumers.  The approach of Daniel Wellington was to develop an attractive story to engage customers and later worked on the idea of classic backpack concepts like James Bond. The brand derived consumer’s action by working on coupons, hashtags, and using influencer created content. Instagram influencer’s actions and the hashtag campaign about this brand has generated more than 800K videos and photos.  The brand accountis grown from 850K to 2.1 million, the profit rate increased to 214% in only one year.

5th Watches is a leading watch brand in the industry and acquired phenomenal success due to modern marketing tactics. By focusing on strong brand aesthetics, 5th watches worked on a unique business model to sell products, and the social media presence enabled it to engage more and more people. Its influencers on Instagram have done an exceptional jobby creating content, sharing stories, images, and videos to promote brand values (Marketing, 2017). The good marketing tactics not only resonated with the brand value but also portrayed products in different lifestyles across the world. Fifth watches brand sells online with the help of travel influencers to spread the effect of travel and tourism and high profile bloggers to show different perspectives. The brand is famous on Instagram, and due to marketing campaigns, its influencers are massively engaged in bringing more customers (Kix, 2019).5th watches offer Ronda movement and these quartz watches are making good influence by using influence marketing. This global brand has put so much on marketing and influence that its development and distribution centers are spread worldwide. In no time, this brand has earned the trust and admiration of experts.

Movement Watches is another up and coming watch brand in the same price point as Daniel Wellington and 5th Watches that was founded in 2014. The scope of influencer marketing has increased the success of brands due to the usage of content and messaging. The brand campaign on an average hold 47,000 people as followers, and they created 73 posts. This specific campaign produced a potential reach of 3.4 million. This influencer campaign of movement watches provides the tendency of modern marketing with sponsored posts. In a case, Liza Herland, an influencer, invited its followers to get a custom code for a 10-15% discount on movement watch purchase. It is a common way to get track conversion rates. Movement watches have rationally used its influencers from different walks of life to discover a new selling path (Glucksman, 2017). The case study provides that marketing, in its essence, is a key criterion of engagement and understanding of different brands’ products and their quality. The marketing campaign by Movement watches has found to have a high level of engagement, so engaging more people and getting their likes is a success (Naas, R., 2018). This opportunity expanded and leveraged to huge influencers.

The structure of marketing campaigns by these watch brands provides insights to get more and more followers who are engaged with other people. The influencer campaign coordinators are of the view that fashion brands provide minimalist products at affordable prices. These watch brands are successful and running as hot brands in the watch industry, thus proving the significance of the latest marketing campaigns. The success of positioning and implementation of brand value illustrates the role of influencers approach and their level of targeting people (Satell, 2014). The coordination activities and effective communication transforms the value of traditional marketing. Most of the cases have provided that the ideal candidate for this campaign has a broader understanding of modern marketing tactics, so the passion for building networking and relationship matters (rschl, M. and Steinberg, L., 2017).

The watch industry has entered the realm of influencer marketing. These approaches are significantly linked with follower’s strategies, interests, and preferences. The active role of followers under a media marketing campaign provides the significance of understanding that they acquire from influencers.  These case studies yielded that influencers are engaged in supporting the partnership, building new and innovative relationships, and interactions. These elements work significantly in the realm of modern marketing since they collaborate with internal marketing efforts. In some cases, it is found out that content strategy works enormously, such as for Denial Willington. Influencer marketing is a key concept linked in the watch industry today because all the influencers are guided to get efficient customer acquisition and partnership by adapting core marketing principles. The role of interaction and power of communication matters most in these cases (Renard, D., 2013).

For watch brands, influencer marketing is critical to consider, and other significant aspects related to it are effective communication, understanding of fashion brand’s value, role-playing activities, and evolving environments. The social media wizard is a role-playing platform for the organized campaigns because it contributes in influencer marketing that serves as a long going network to bring more followers (Perspect, M., 2018). The case study knowledge and findings discussed the scope of marketing for the watch industry and currently prevailed trends (Kix, 2019). The findings suggest that internal marketing plays a crucial role in customer acquisition, making a central space and building & cultivating a relationship for the digital space. Moreover, it also elaborates that the core marketing principles are quite important to work for followers and be adept. The other values associated with this kind of marketing are highly organized, strategic scope, gregarious, and detail-oriented. Representation of a brand to large people needs knowledge of fashion, music gaming, and other niches’ knowledge to target more people and to attract them with their respective interests.

4.2 Watch Market in the past 5 years

The past five years show a glimpse of consumer transformation in decision making, particularly when considered in terms of consumer fashion. The realm of marketing has started influencing every sector and every industry (Vyatkina, O.L., 2020). This much fame and fashion-oriented products were not developed past years ago, but a focus was made on traditional approaches. From 2017-21, the aspect of modern marketing is considered to be a boom due to the role of influencer marketing, newly designed social media platforms, and to focus on consumer decision making power (Glucksman, 2017). Prior studies highlight that the boom in marketing is due to the aspirations of millennials. The manufacturing of designer watches needed a modern platform to showcase new tendencies and features of a modern product. Movado group bought Movement Watches in 2018and offered a strong expansion for millennial brand. This transaction holds an initial $100 million payment, and two payments of $100 million (Naas, R., 2018). This acquisition was for the best interest of millennial basebecause digital expansion has given MVMT access to the global networking (Perspect, M., 2018).All of this was not absent but primitive five years ago. Since 2015, the impact of horological products from all over the world was down. Some exporting countries of watches like Hong Kong faced a decline in unit terms and value from 2014 to 2016.

The decline in the watch industry was apparent at the global level, and it impacted the global economy (Zhou, W. and Duan, W., 2013). In addition, luxury watch market confronted a sluggish global economy, where Chinese demand was decreased. Switzerland experts reported that the peak falling trend in 2014 was due to traditional marketing approaches or price-conscious customers that derived price level down. Low and quartz watches also faced intensified competition a decade ago in China. Middle range watches faced abounding opportunities with good value and quality products, in accordance with fashion and personality. Since the early 80s, the weakest position for the watch industry was 2017. The timepiece industry confronted turmoil due to the collapse of several global economies. The watch market faced a two-year slump, and the dip in the sale was spared later with a number of factors.

The slump in the watch market was faced in most of the economies, yet industry executives remained optimistic for the high-end growth of the watch industry. It was a low-end market for the first six months of 2013; for instance, quartz watches volume declined by 6%, but mechanical watches faced growth in volume by 12% (Satell, 2014). The factor contributed to the level of price on average. The mechanical watches by that time period represented 77% of exports and 27% volume. In addition, mechanical watches were ten times expensive than quartz watches in 2012. From 2012-15, the market segmentation was carried out on these two types of products. The quartz segment was divided into digital and analog, while analog watches were a fashion symbol, and digital watches were popular in the emerging economies.

The marketing aspect was not broader, and the segmentation was carried out by specialist retailers, internet retailing, and departmental stores. The global watch market five years ago only considered innovative services and pricing strategies to acquire intense growth in the market. Only a few leading players rule the market on the basis of a portfolio, product differentiation, and pricing. To know the growth of a product, demand, and supply act as leading forces. Smart wearable watches faced an increase in demand due to product differentiation by major companies. The traditional watches were not fit for seamless connectivity and to work in this digitalized world. The innovation in digital watches in terms of health monitoring, personalized experience, and seamless connectivity allowed people to focus on some key connectivity features. Smart wearable watches acquire growth over the traditional watch market, so the potential growth was anticipated in the traditional watch market.

Smartwatches helped inculcate the wearing watch habits in young people. Online to offline strategy in e-commerce was a key factor developed after 2015. Offline purchases influenced the experience of consumers at various digital channels. Buyer behavior changes suggested that effective marketing strategies can be the potential to enter into cut-throat competition for the watch market. The effective sale was started determined by online marketing strategies (Glucksman, 2017). These feature-driven emerging technologies under specified functions, quality improvement, and environmental protection models. Watch companies’ developed new watchmaking technologies by including precision and new material to meet functional and aesthetic requirements, such as surface coatings. Consumers faced increased use of social media and marketing campaigns. The watch market started attracting the young generation to count as future potential customers, due to their interest in digital watches. Informed decision making and product features enable young consumers to be more aware of watch market dynamics.

4.3 Influence of Marketing in Watch Brands

In the last few years, social media marketing has played a major role in promoting watch brands. Smartwatches bolstered the environment of marketing by acting as the game-changer. Smartwatches created a division in watch specialist, which obviously has some positive and negative points. Due to the increased prevalence of social media platforms, such as Facebook, YouTube, Instagram, Twitter, and LinkedIn, people involved with products and brand companies (Watches, 2017). The increased involvement of people with these products allowed companies to cater to consumers’ feedback and views. Consumers rapidly made purchase decisions due to ease of using social media applications and better connectivity.

Consumers found it easy to get in touch with all the brands of their choices and get discounts and coupons. The product personalization, communication, and product designs offered substantial help to consumers to make choices and get flexible purchase. They faced more and better interactions with suppliers and product manufacturers by campaigns. The innovation of social media campaigns is an advanced aspect of traditional marketing that changed the entire game. Marketing got ease through mobile applications because it is always available whenever customer want and need.  The brand-customer relationship is driven through modern marketing campaigns. Facebook and Instagram are now marketing through advertisements to target customers. Only sending a message can help customers get their favorite products.

The brand-customer relationship on Instagram yielded transparency and allowed the business to flourish at an optimum level. The personalized data-driven marketing is friendlier today and has developed numerous ways for watch market. Brands keep targeting new and more targeted customers by segmentation and by targeting customers via their interests which is very easy to do via social media marketing because of the vast data points offered by social media platforms such as Instagram. Deloitte reported that 60 percent of customers today are using digital or online channels to make purchases and reveal their interests. Instagram is using key influencers to drive sales of watches with the help of unique content, photos, and videos. The influence of influencer marketing on the watch market is impeccable. It is unbeatable in a sensethat luxury watch industry foresees trends on social media to design its innovative campaigns.

4.4 Impact of traditional and the new age of marketing online

Traditional marketing is an old form of advertisement that encompasses engagement through radio, TV, and print media. The oldest form of marketing is replaced by digital marketing today due to the influence of social media. Old or traditional concepts are ancient in sending a message to customers, tracking their interests, and pursuing them to buy the product. Print, broadcast, telephone, and daily mail are some tools of traditional marketing that was used for marketing a product (Watches, 2017). Marketing messages through telephone marketing was also a common way that is changed in the modern age. Printed material such as brochures, postcards, and letters are replaced by social media applications where everything is digital and shown in an impressive way of 3D. Both forms are different in terms of engaging consumers and persuading them to buy since modern media utilizes effective approaches to transform decision making of consumers. The impact of traditional marketing is replaced with a modern style of marketing due to social media influencers.

There are positives and negatives for both traditional and modern marketing. For example, traditional marketing methods are good in terms of using newspapers, brochures, and email broadcasting. Traditional methods only worked for people connected to TV, radio and newspapers, they spread limited influence. These methods are beneficial for when working on a small scale but not accurate to measure customers’ demand and quantify potential people. The modern marketing has captured audience from every walk of life, such as multiple groups, communities, and ethnicities.  Modern marketing engages people through influencer marketing campaigns but disadvantageous in terms of sharp memory of the internet since it does not care for consumer privacy. The case studies have highlighted the potential of modern style of marketing and its benefits for watch market.

Chapter 5- Conclusion

The current research study discussed the influence ofinfluencer marketing on the watch market in the past five years. The research question of this study was how watch brands are using influencer marketing to dominate the industry in the past five years. The objective of this study was to investigate the social media channels and the role of influencer marketing in the digital world. The focus was maintained concerning advertising in the watch market and how watch brands have acquired a central position due to the influencer marketing approach. The focus of the study was to explore the nature of influencer marketing techniques employed by the watch brands. This study has answered the research question and fulfilled objective.Research indicated that influencer marketing has changed the brand influence over audience and their decision buying habits are changed. All the results found from this discussion are relevant to the objectives and research questions. Results of study are in consensus with (Kim, A. and Ko, E.2012), about brand awareness, (Glucksman, M., 2017) discussed about influencermarketingstrengths, (Silvia, S. 2019) social media effect on millennials, (Sadler, R. and Kyeremeh, E. 2016), brand influence that capture audience (Chaffey, D., Hemphill, T. and Edmundson-Bird, D. 2018) digital business perform stronger role to promote branding.

Today, this scope is increasing, and emerging brands in the past five years have becomethe hottest brands in the industry, such as Denial Willington, Movement watches. There is an underlying ideology related to the act of influencer endorsements. At the point when an industry expert or a social media performer or a celebrity shares any content regarding a brand, it creates immediate credibility of such brand or organization, understandable and straightforward. The plan is, if any organization can hire a genuine personality to recognize and notice its brand, it develops an opinion that the brand is a market leader and a reliable company, based on the sentiment and endorsement provided by the social media influencer. The acknowledgment is much progressively viable in niche marketing when an expert in your industry promotes your content. Credibility created right now considerably accelerates the period in which brands can establish and build up authority and trust with purchasers.

As discussed above, marketing by an influencer can expand your positioning and reach significantly in the online market. Social media users can get more information about your products, your history, and your services. Influencers can make a powerful contribution to brand recognition, which is one of the most significant benefits of social media marketing. To maximize the strategy of influence, it is essential to create an attractive and reliable content that enhances the social media appearance of the celebrity as well, to ensure the benefits for both the parties. Celebrities are mainly the motivation behind new movements or trends. They often propose new brands, ideas, and products, etc. Thus being noticed as a unique fashion style is one of many advantages of influencer promotion. Aligning the celebrity with the product, which moves the stick in the trend market, proves the consumers that the company is a leader in innovation in the circle.

The significance of this particular advantage cannot be overstated. Compatible personalities present the content to the specific social media users who are already following their profile. There are no additional costs required to find or test your audience, as the celebrity already acquired followers on social media for themselves. Furthermore, celebrities who promote your products increase sales. Users are looking to celebrities for advice more and more on which brands to buy. According to research, around 40 percent of people said that they purchase products or services after social media campaigns by celebrities. And these numbers are gradually increasing as eminence of social media has risen. All watch brands have one fundamental objective which is to increase its sales and brand equity. Influencer marketing can support in achieving both because it can expose the brand to its targeted audience in the millions.

The analysis conducted in this research study involved multiple branding activities and the use of their tactics to attract an audience. With the help of three pillars, reach, relevancy, and resonance, the audience is targeted, and a focus on products determines their level of interaction. The individual behavior towards influence made by the marketing approach is examined under theoretical evidence. Influencer marketing is a driver to get customers the latest updates and information about their favorite products. Research evidence made it clear that Instagram is a great social media application that has accelerated product recognition and enhanced brand value. The current study has addressed the key strengths and weaknesses of influencer marketing regarding watch brands. Currently, influencer marketing is a rapidly expanding strategy that has an enormous reach to the audience regarding consumer buying decisions.

The younger audience has no more interest in television because digital and social media is getting prominence day by day in the and more youthful generation has increasingly contributed and favored to its popularity. That is why celebrity marketing is now a mandatory source for reaching Gen Z’ers and Millennials.  It brings great value to the brands by attracting consumers through digital media marketing. By celebrity marketing, and access to prospective vision with the personalities is increased that they couldn’t reach as fast with the other marketing channels. Especially in this case where a celebrity, they use, has a good number of followers on social media or blog in the particular industry the client operates.

A recent study on social media marketing showed that 37 percent considered blogs are the best platforms for influential marketing. Facebook is second with 25 percent of social media marketing tools, followed by many other social platforms like Twitter, Instagram, and YouTube. There are different types of content used by celebrities that vary from your rational thinking as well. Fresh and unique content can attract more consumers’ attention and maybe get persons who turn out to be desensitized to the company’s message to show interest.

You may even find some new innovative ideas to use in the content for your blogs. A research done by Digital Luxury Group presents that 40% of Google search results for mechanical and branded watch comes from forums and blogs. Not to be surprised, blogger spread is a usual practice for many brands. TAG Heuer, Omega, IWC, Patek Philippe, and Vacheron Constantin use it more often and work in many different ways: from distribution of samples of brand content to visits of the manufacturing sites, invitations to heritage or VIP functions, and publicity to exclusive opportunities.

Conclusion is consistent with the analysis and it significantly addresses research objective and study. The current study has used evidence regarding the influence of social media for watch brands and how it has worked significantly to build brand trust and equity. The case studies used in this research highlighted the notion of influencer marketing that how this strategy helped boosting the growth patterns of products in only a few years. Social media influencing strategy by Kenneth Cole and Ted Baker are leading brands of watch industry that illustrated that Instagram is playing an instrumental role for companies to promote products.

5.1 Recommendations

For watch industry, influencer marketing is working significantly due to global customer base and it has engaged them through multiple styles of posting, videos, and sharing images.  It is recommended that the arrangement should procure a real character to perceive and see its image, as it builds up a supposition that the brand is a market head and a dependable organization, in light of the assessment and underwriting gave by the online influencer. It is also recommended that believability should be right and impressive to accelerate the period wherein brands can set up and develop authority and trust with buyers.It is seen when an industry master or an online life entertainer or a superstar shares any substance in regards to a brand, it makes quick validity of such brand or association, justifiable and clear. The affirmation should be logical in practical in specialty advertising when a specialist in your industry advances your substance.

Though few bloggers are genuinely impactful, less than one-third of digital bloggers are remained from a year to another, even as 90% of discussions and genuine impact in digital marketing are driven by only 3% of personalities. Multiple famous brands started the trend of hiring social media influencers, setting the marketing campaigns direction and their digital media accounts, and have begun to co-create the products. Maurice Lacroix stormed the social media channels of the biggest football fans around the globe by co-designing a special edition timepiece collection featuring FC Barcelona players and fans. This social media campaign was carried out by the Digital Luxury Group that created a lot of attention all over the world. Omega started to develop a new watch with the collaboration of Buzz Aldrin; Aldrin was one of the two astronauts from the ever 1st moon mission of 1969. They named it “Mars Watch.” Aldrin attended the Rio Olympics as part of the Omega family. He comprehensively promoted the brand on Twitter to his one million-plus followers.The journey to be the hottest watch brand today has ensured that influencer marketing was used as a pivotal approach to target people.

5.2 Limitations

Case studies of Daniel Wallington, 5th watches, and movement watch brands made it clear that how significantly these watch brand has acquired a central position in the watch industry only in five years. Thelimitations are the small number of case studies, use of qualitative analysis and the limitation to only watch industry to know the consumer buying decisions.The discussion of this study provides that theoretical evidence about modern styles of marketing and traditional marketing work differently to capture audience. The study has limitation about only focusing on the watch industry to know marketing game which has surpassed all the traditional marketing records by directly involving customers in visually attracting campaigns as well as advertising on billboards and magazines. This research study is significant in terms of explaining marketing activities, discussing key tactics to strengthen the customer base by influencer marketing, and the rapid expansion of watch brands.

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Analyze the social Media Essay example and dissertation writing

 

Pages:22

Executive Summary

 

The marketing audit report examines and analyzes the various factors and dynamics that impact and influence the business operations and practices of Tesco UK. It studies the range of macro-environment factors that affect the strategic business decisions and the future direction that the company will take. Similarly, the marketing audit report of Tesco also analyzes the micro environment that the company operates in and gauges the significance and the influence of its buyers, suppliers, competitors, and related actors have on the business decisions and profitability of the company. It also looks at the major threats that Tesco faces and examines the opportunities that the management can capitalize on to ensure that the company maintains its market leadership position in the retail industry. The report also examines the key resources, capabilities, strengths, and marketing strategies of the company that play an important role in the creation of competitive advantages for Tesco. Ultimately, the report analyzes the key strategic challenges that the management of Tesco faces and provides some recommendations for addressing those challenges in an effective and efficient manner.

Macro Analysis

Political Factors

The most significant political development is recent years that has the potential to impact the business operations and practices of Tesco UK is the Brexit event. The departure of Britain from the European Union will potentially result in the increment of taxes and duties. This will impact the profitability of the business operations of the company stores located in other European countries. Similarly, Brexit will also influence the cost of procurement for different products that Tesco acquires through imports. Another significant political event was the election. The policies drafted by the Boris Johnson regime will also impact the operations and profitability of the company(BBC, 2019).

Economic Factors

The economic conditions of the country play a critical role in determining the success and growth of any organization operating within its borders. For instance, the global financial crisis of 2008 brought a major downturn in the country’s economy and adversely affected many companies. Similarly, the managerial leadership at Tesco needs to be on the lookout for economic factors resulting from Brexit and other events that can impact organizational performance.

UK GDP Growth (PwC 2019)

Social Factors

The changing social trends and dynamics influence the customers and buyers significantly and, therefore, hold fundamental importance for Tesco. There has been a rise in customer awareness over the recent years regarding climate change. Many customers have become increasingly aware and critical of the practices and materials that go into the products they purchase. Similarly, the UK also reportedly has an ageing population which Tesco will have to cater accordingly to maintain its business performance(Christie, 2017).

Technological Factors

The effective utilization of technological developments is extremely essential for Tesco to ensure an efficient and sustainable business operation. Integrating technology into the supply chain of Tesco can help the company in not only cutting down the cost of operations, but it will also enable Tesco to achieve competitive advantages that are beneficial especially in a competitive sector like retail. Disruptive technologies like E-shopping and android based customer facilitation applications can be utilized to enhance organizational performance and customer satisfaction(Ramaswamy and Ozcan, 2016).

Environmental Factors

Environmental issues like global warming and climate change have attracted increased attention and coverage in the past few years all over the world. Tesco should take effective measures to ensure the implementation of environmentally acceptable business practices and operations in order to comply with the climate change standards. Tesco should also seek to cut down on the levels of energy consumption and greenhouse gases in its stores(King, 2020).

Legal Factors

Tesco, being a multinational retail chain, is affected by many laws and regulations governing its operations in different countries. The management mustalso keep up to date with the different county laws in which the company stores and outlets are located. Non-compliance with such laws and regulations can result in heavy fines and bans which will hamper the company’s operations and profitability.

Micro Analysis

Market

The retail industry in the United Kingdom is one of the most important sectors in the country. The retail sector plays a critical role in the growth and prosperity of the economy of the country. Over the period of last five years, the retail sector has grown at a steady rate of approximately 10 percent. The industry amounted for a total market value of 377 billion pounds last year. Despite the uncertainty surrounding the exodus of the United Kingdom from the European Union and the challenge of online retailing faced by the companies, the retail industry is still expected to grow to approximately 390 billion pounds in 2020.The retail sector is also reported to be the largest employer in the United Kingdom with private sector employment numbers of approximately 3 million workers.(Statista, 2019)

 

The dynamic rise in the trends and practices of internet based technologies and online shopping continues to be a significant opportunity for the retail sector in the country. The growth of mobile and internet based shopping is slated by many analysts to be a key driver behind the rise in E-commerce based purchasing in the coming years. Approximately half of all the retail sales in the United Kingdom are projected to be online by 2028. The companies and businesses, therefore, need to adapt to this emerging dynamic in order to sustain and enhance their business operations in the future.  (Deloitte UK, 2020)

Customers

Tesco categorizes its customer base into different segments on the basis of various dynamicssuch as demographics, social, financial and economic factors, gender, family size, education levels, age, and the cultural and ethnic backgrounds. The target customer segment for Tesco can be identified as buyers seek shopping convenience, low prices, high quality, and a variety of products and services at one place. The implementation of the Tesco Club Card policy is the primary source for the managerial leadership of the company to gain valuable insights regarding the buyers. It enables the management to make informed decisions and draft effective strategies to segment and target the buyers in an efficient manner. (Tesco Plc, 2018)

Competitors

The retail industry in the UK is dominated by four major players, Tesco, Sainsbury ASDA, and Morrisons. The competition in the industry is high as these companies compete fiercely on pricing and market share and incorporate innovative business strategies and technologies to attract new customers to their fold. ASDA occupies the second largest market share after Tesco. It is a subsidiary of Walmart and operates with over 600 retail stores in the country, offering the lowest prices amongst the big four retailers. Sainsbury and Morrisons are the other two major competitors for Tesco, operating with over 1300 and 500 retail stores in the country respectively. Some other retail companies include Aldi, Lidl, and Waitrose.(Statista, 2019)

 

Market share of retail chains in Great Britain from August 2012 to August 2019

Internal Analysis

key resources

Tesco has developed a strong procurement system for its business operations that helps the company in meeting the quality standards that Tesco is known for. A strong procurement system not only helps Tesco in achieving low costs of production, but it also enables the company to attain a competitive advantage that drives it ahead of the competition. The company has also incorporated the use of technology into its supply chain operations and activities. Tesco is amongst the leading retail companies in the country that utilizes RFID technology for supply chain and procurement practices. The management has also implemented various values and principles of lean management in an attempt to reduce waste and improve quality of its products and services(Zhao, 2014).

Key Strategies

One of the most significant business strategies that translates into a major competitive advantage for Tesco is its customer centric approach to business operations and activities. The buyer focused approach has enabled Tesco management to focus exclusively on the needs and wants of local customers. The business strategy has enabled Tesco to drive sales in both its local and foreign markets. Another operational strategy that is critical to the success of Tesco’s business operation is the use of cross docking practices. It has enabled the company cut down on inventory levels, reduce storage costs, and consolidate products in an efficient manner. Similarly, the implementation of Collaborative Planning, Forecasting, and Replenishment (CPFR) concept is also an important business strategy that contributes to business results(Damron et al., 2016).

 Key Tactics

Since Tesco operates in an intensely competitive industry, pricing becomes the most important dynamic that determines the growth and success of the company in the long run. Due to Tesco’s capabilities in procuring quality materials at low costs, the company has been able to offer high quality products and services to its customers at low prices. Tesco is able to edge out its competitors and maintain a market leadership position in the retail sector over the years primarily due to its pricing and product quality. The implementation of effective and efficient employee practices, supply and procurement activities, waste reduction, and technological integration for customer facilitation has enabled Tesco to keep its prices low and attract customers(Palmer, 2005).

TOWS Matrix

While Tesco has benefited from diversifying and expanding its operations and business practices into other geographical locations, it also constitutes one of the major threats to its operation. The variation in exchange rates and recent uncertainty surrounding Britain’s proposed departure from the EU are primary threats to Tesco. The intense competition that the company faces within the country is also a major threat to Tesco. The rise in the use of internet and E-commerce is a major opportunity for Tesco to attract more buyers by capitalizing on such trends. Tesco can also increase the number of organic products it offers and implement more eco friendly business practices in order to appeal to this segment of the customer base effectively. Incorporating disruptive technologies into its business operations can also enable Tesco to strengthen its market standing even further.

One of the biggest weaknesses of Tesco is that the company operates in the highly saturated retail market which translates into lower margins. Due to its low pricing strategy, it can result in significantly decreased profits for the company. The accounting scandal of 2017 also poses a significant weakness for Tesco as the company was heavily fined for false profit declaration(Kukreja and Gupta, 2012). The biggest strengths for Tesco are its highly effective and efficient procurement and sourcing systems, waste reduction and inventory management practices, and the development of a diversified business operation. The low pricing, high quality standards, customer focus business approach, and technological integration also constitute its major strengths and make Tesco the leading retail chain in UK(Ahlert et al., 2009).

Strategic Challenges

The biggest strategic challenge that Tesco faces is failing to maintain a coherent and an engaging connection with its customers. It will result in an unsatisfactory shopping experience for the buyers and the company will eventually lose its market share in such a scenario. The achievement of transformation and technological implementation targets in an effective and efficient manner is also a significant strategic challenge for Tesco. The continued development and enhancement of buyer trust, brandreputation and good will along with the creation of effective strategies for tackling increasing competition in the sector are some fundamental strategic challenges for Tesco management. Similarly, the failure to utilize the dynamic technological trends, failure to protect sensitive customer data and information gathered through its mobile applications, and failure to attract and facilitate the right people are other substantial strategic challenges for the business. (Tesco Plc, 2018)

 

Recommendations

 

  • The managerial leadership at Tesco should focus on the creation effective and attractive customer propositions should enable the company to attract more buyers to its stores.
  • Market research should be carried out in order to develop customer segments and understand the needs and wants of the buyers in a better way.
  • Proper transformation objectives and monitoring mechanisms should be established in order to ensure that the company is able to attain its business goals.
  • The management of Tesco should develop a mechanism to closely observe the various factors that affect and influence the purchase decisions of the buyers.
  • Tesco should look to utilize cloud computing and blockchain technologies in order to protect and safeguard important customer information from cyberattacks and data loss.
  • Talent development programs and other initiatives should be established in order to foster a sense of ownership in the employees.

 

References

Ahlert, D., Olbrich, R., Kenning, P., Schroeder, H., Huang, Y., Huddleston, P., 2009. Retailer premium own‐brands: creating customer loyalty through own‐brand products advantage. Int. J. Retail Distrib. Manag.

BBC, 2019. Tesco faces Brexit deadline headache. BBC News.

Christie, S., 2017. Tesco slashes prices on hundreds of fruit and veg products. The Sun.

Damron, T., Rupp, W.T., Smith, A.D., 2016. Inventory control in the retail sector: case studies of best business practices. Int. J. Procure. Manag. 9, 354–371.

Deloitte UK, 2020. Retail Trends 2020 | Deloitte UK [WWW Document]. Deloitte U. K. URL https://www2.deloitte.com/uk/en/pages/consumer-business/articles/retail-trends.html (accessed 1.29.20).

Hill, C.W., Jones, G.R., Schilling, M.A., 2014. Strategic management: theory: an integrated approach. Cengage Learning.

King, M., 2020. Go green and make money with this energy-efficiency investment trust. MoneyWeek.

Kukreja, G., Gupta, S., 2012. Tesco Accounting Misstatements: Myopic Ideologies Overshadowing Larger Organisational Interests. Wall Str. J.

Ma, Y., Ding, J., Hong, W., 2010. Delivering customer value based on service process: The example of Tesco. com. Int. Bus. Res. 3, 131.

Mintel, 2019. UK Online Retailing Market Report (Updated 2019) | Mintel.com [WWW Document]. URL https://store.mintel.com/uk-online-retailing-market-report (accessed 1.29.20).

Munusamy, J., Wong, C.H., 2008. Relationship between marketing mix strategy and consumer motive: an empirical study in major Tesco stores. Unitar E-J. 4, 41–56.

Palmer, M., 2005. Retail multinational learning: a case study of Tesco. Int. J. Retail Distrib. Manag.

PwC, 2019. Retail outlook: 2019 retail predictions [WWW Document]. PwC. URL https://www.pwc.co.uk/industries/retail-consumer/insights/retail-outlook.html (accessed 1.29.20).

Ramaswamy, V., Ozcan, K., 2016. Brand value co-creation in a digitalized world: An integrative framework and research implications. Int. J. Res. Mark. 33, 93–106.

Reuters, 2020. Tesco PLC Profile [WWW Document]. URL https://www.reuters.comundefined (accessed 1.23.20).

Statista, 2020. Tesco Profile.

Statista, 2019. Retailing: market value in the UK 2015-2020 [WWW Document]. Statista. URL https://www.statista.com/statistics/491377/retailing-united-kingdom-uk-market-value/ (accessed 1.29.20).

Tesco, 2020. About Us [WWW Document]. Tesco PLC. URL /about/ (accessed 1.23.20).

Tesco Plc, 2018. Tesco Strategic Report.

Zhao, S., 2014. Analyzing and Evaluating Critically Tesco’s Current Operations Management. J Mgmt Sustain. 4, 184.

 

Appendix 1

Company Overview

            Tesco is one of the biggest retail chains in the world. It was founded in 1919 by Jack Cohen as stall that sold surplus groceries. Today, Tesco is the largest retail chain in the United Kingdom operating with a network of over 3400 stores all over the country and 300,000 employees amongst its ranks(Tesco, 2020). The company has approximately 7000 stores all over the world. It commands the sector with a market share of 26.4 percent followed by Sainsbury, ASDA, Morrisons, and Aldi who have a market share of 15.4%, 14.9%, 10.1%, and 8.1% respectively. The company has diversified its operations from just being a retail chain and is also engaged in retail banking and insurance practices as well. The business of the company can be categorized into three major segments. The domestic segment includes the local markets in the UK and Republic of Ireland. The international segment includes foreign operations located in Thailand, Malaysia, Czech Republic, India, Poland, Slovakia, and Hungary. The third segment is the Tesco Bank that comprises of the insurance and retail banking services under the Tesco brand name.

The primary business of the company is selling food and food related products and services. Tesco also offers two food brands of its own in the UK marketapart from other food products and brands. These two brands are Finest and Exclusively at Tesco. The company also offers two non-food brands to its customers in F&F clothing and Fox & Ivy. Other than food and clothing, Tesco is also engaged in providing different banking and financial services to its customers including credit cards, personal loans, club cards, and mobile services(Reuters, 2020).

 

Appendix 2

The political uncertainty, changing regimes and regulations, constantly changing customer purchase attitudes and behaviors, the evolution of technology, and the calls for eco friendly business practices constitute the major threats for the companies operating in the retail industry in the country. Apart from these challenges, customers continue to expect “unique experiences, both in store and online. Whether that be through curated marketplaces, connected spaces or digital journeys, customers are wanting to have an emotional connection to their shopping experience”(Deloitte UK, 2020). The incorporation and utilization of innovative technological developments and advancements into the business practices has become significant for any company to sustain and expand its operations as the customers are expected to rely heavily on internet and mobile based shopping platforms in the coming years.

“With social media and smartphones feeding the demand for instant gratification the retail industry has seen a shift in shopping habits. Rather than spending their money in bricks and mortar shops, consumers are now shopping online with ‘clicks’.This, in part, has caused physical stores to struggle. Shoppers are making fewer visits to the high street meaning that stores have seen a huge decline in footfall as customers increasingly choose to shop online. A decline in physical sales has inevitably led to store closures, creating more empty shops than ever before – making the high street even more unappealing.”(Mintel, 2019)

“Brexit has started to affect how much people spend and on what —varying significantly by region and demographic group.  27% of consumers say they’ve already changed their spending because of Brexit, and 13% say they will do so in the coming months.” (PwC, 2019)

Similarly, the increased global awareness regarding the environmental and climate conditions all over the world has become an area of major concern for the retailers in the country. The retail industry continues to be at the forefront of the global carbon emission. The retail companies are under increased pressure to adapt their business practices and operations in order to comply with the changing global environment. “The retail manufacturing industry is one of the most polluting industries on the planet and an increasing awareness of environmental issues, and the retail industry’s contribution to these concerns, has created more conscious consumers. Customers are increasingly asking if products have been responsibly sourced, if they’re Fairtrade and if they can be recycled before they shop. Sustainability is important to young consumers and moving forward fashion retailers will need to take responsibility for the waste they produce”(PwC, 2019). While such a paradigm shift poses a massive challenge for the Tesco management, it is also a great opportunity for not only enhancing the loyalty of existing customers, but to also attract new buyers to its stores.

 

Appendix 3

 

Market Competition

The retail market in the UK is characterized by intense competition. The market is dominated by major retail chains like Tesco, Sainsbury, ASDA, and Morrisons. These companies intensively compete with each other on prices and promotions in a bid to attract buyers to their stores and outlets. Tesco is the market leader in the retail sector with a reported market share of 26.4% but it continues to face extreme competition from Sainsbury, ASDA, and Morrisons (Statista, 2020).

Power of Customers

Most of the products at offer in Tesco stores are materials of regular use and consumption for the buyers. These products do not have high differentiation and comprise of low switching costs. The buyers can easily switch from one brand to the other while making the purchase. Retail companies focus on keeping the prices low in an attempt to attract customers to their stores. The bargaining power of customers is therefore high (Munusamy and Wong, 2008).

 Power of Suppliers

Tesco is one of the biggest retail chains in the country and, therefore, is an important client for the suppliers. They are not in a position to significantly change their prices and dictate terms to Tesco as the retail giant can easily enlist other suppliers for its business. The suppliers also have to comply to certain quality standards set by Tesco so that the quality of the products offered at its stores is maintained. Hence, the bargaining power of suppliers for Tesco is low.

Threat of Substitutes

The threat of substitutes is relatively low as there are not many substitutes for the food products offered at Tesco. The substitutes primarily comprise of organic products and those offered by small convenience stores. Since Tesco offers low pricing on such products, the convenience stores and organic shops cannot compete effectively with Tesco. The threat of substitutes for non-food products is relatively higher as customers can easily switch between different brands offering less differentiated products (Ma et al., 2010).

Threat of New Entrants

Entering into the retail sector requires a substantial amount of investment. Similarly, any new entrant would also need a significant amount of time in order establish its brand name and achieve economies of scale for competing effectively with retail giants like Tesco. The new entrants have to offer products at exceptionally lower prices or with high differentiation in order to capture the attention of buyers. Therefore, the threat of new entrants in the sector is low (Hill et al., 2014).

 

Appendix 4

 

Strengths

 

·         Tesco occupies the largest market share in the retail sector of the country.

·         A strong and efficient procurement system enables it to pursue a low pricing strategy.

·         The Tesco shopping experience is built on high quality and low pricing.

·         Diversified operations including insurance and retail banking.

·         Wide network of stores and outlets allow superior customer reach.

·         Biggest private sector employer in the country.

·         Leading user of technology and innovation in its business practices and operations.

·         Established network of retail operations in other European and Asian countries.

·         Established private label brands allow for higher diversification and customer loyalty.

·         Tesco Club Cards are an effective source of collecting insightful customer purchase data.

 

 

Weaknesses

 

·         Tesco still relies heavily on the domestic UK market despite diversifying and expanding operations.

·         The accounting scandal has severe implications on brand reputation and company image.

·         Weak presence in emerging markets of the world as compared to competition.

·         Failure of operations in the United States and Japan resulted in heavy losses.

·         Lack of measures taken for climate change and eco friendly business practices.

·         Club card system has attracted criticism and scrutiny for data protection.

 

 

Opportunities

 

·         Capitalize on changing retail trends and purchase behaviors by drafting effective business strategies.

·         Targeting new generations for market expansion and sales growth.

·         Developing effective and efficient shopping platforms to capture the online retail shopping share.

·         Incorporating innovation automation and intelligence technologies to facilitate customer interaction and improve value chain activities.

·         Expanding business operations in emerging markets to diversify operations.

·         Increasing business operations in the insurance and financial services sector.

·         Developing quality non-food private label retail brands to enhance customer loyalty.

 

 

Threats

 

·         The uncertainty and confusion posed by the impending departure of UK from the European Union.

·         Constantly fluctuating exchange rates and changing business regulations in different markets.

·         Increased competition and rivalry in the UK market between major retailers.

·         Failure to effectively adapt to changing customer preferences and attitudes.

·         Failure to incorporate technological advancements into business operations.

·         Failure to maintain and improve the competitive advantages that enabled the company to become the leading player in the retail sector.

·         Failure to develop carbon emissions and climate change practices.

 

7Ps Analysis

  • Product

Tesco operates in the retail market offering a wide range of products and services for its buyers. The products available at Tesco stores and outlets include food, electronics, clothing, cosmetics, non-food products, and financial services. Tesco has also diversified its operations in order to provide different insurance and retail banking facilities and services to its customers. The Tesco stores offer many high quality brands in almost every category at affordable pricing. The company also offers its own brands under the name of F&F Clothing and Fox & Ivy, which are non-food brands, and Finest and Exclusively at Tesco as its private label food brands. (Tesco, 2020)

 

  • Price

The primary strategy of Tesco when it comes to pricing can be categorized as a cost leadership business strategy. The company aims to provide high quality products and services to its customers at lower and affordable prices. The low pricing is one of the major drivers of Tesco’s growth over the years and has enabled to company to establish a loyal customer base for itself. The cost leadership strategy has allowed Tesco to accumulate the largest market share of the retail sector in the country and gain a competitive advantage against the intense competition in the industry. Tesco actively engages with its suppliers in order to bring down the cost of production so that the benefit can be translated to its pricing. (Christie, 2017)

 

  • Place

Tesco maintains both physical and online presence in the marketplace. The company operates with a network of over 3400 physical retail outlets spanned all over the country. The wide spread store network helps the company in expanding its reach to customers located in geographically dispersed regions and localities in an effective and efficient manner. These stores and retail outlets can be divided into six major categories such as Tesco Superstore, Tesco Homeplus, Tesco Extra, Tesco Express, Tesco Compact, and Tesco Metro. The internet and mobile based retail platforms of the company are known as Tesco Direct. The online and physical retail stores help the company in facilitating its buyers effectively and maintain its market position.(Tesco Plc, 2018)

 

 

 

  • Promotion

Tesco is one of the oldest and most reliable retail operations in the United Kingdom. The company has established a strong brand name and reputation for itself over the years. The strong brand name helps the company against its competitors as the customers have become loyal to the products and services offered by Tesco as compared to the competition. It also helps the management to engage in various promotional and marketing activities through the utilization of different advertising channels and mediums. Similarly, the development of Tesco Loyalty Cards and Tesco Club Cards are other promotional features introduced by the company for its customers. (Tesco Plc, 2018)

 

  • Processes

The processes at Tesco stores can be categorized into two primary types on the basis of the functionality of the retail stores and platforms. The physical retail stores allow the customers to review and analyze the products on offer themselves. The company is committed to providing a complete and fulfilling shopping experience to the customers through its retail stores and supermarkets. The online shopping platforms and the mobile applications are the other significant processes and experiences that the customer go through while making a purchase. Tesco is the leading incorporator of technology into business operations in the retail industry of the country. (Zhao, 2014)

 

  • People

Tesco is the biggest private sector employer in the retail industry of the United Kingdom. The company has over 460,000 individuals on its books that play an important role in making Tesco the leading retail chain in the country. The development of effective hiring and training policies and programs at Tesco has enabled the company to develop a highly skilled and competent workforce that has put Tesco head and shoulders above the competition. (Tesco, 2020)

 

 

  • Physical Evidence

The physical evidence of the marketing mix gauges the effectiveness of the different tangible assets and representations that are associated with the company. The Tesco stores and outlets are designed in a manner such that the customers feel at ease while shopping and making purchase decisions. The outlets of the company are open and the buyers can easily navigate and find the products that they want to purchase. Similarly, the logo design is also effective and vibrant and distinguishes Tesco from the competition efficiently. The website and other digital platforms also provide and effective and easy online shopping experience. (Tesco Plc, 2018)

 

 

 

 

 

Pages:4

Part one: Introduction

Culture refers to a unique set of characteristics that are developed on the basis of family, education, religion and social systems. Marketing plays significant role to transform values and culture due to the strong influence of advertising. Different countries market products in different regions to capture cultural values and to get recognition about traditions (Welch, 2017). The cultural differences in different regions tend to portray different values and consumption styles. Some marketing companies even fail to focus on consumer perceptions due to difference in culture. The culture is complex and its different features often create an illusion of similarity (D’lima, 2018). The cultural literacy is significant for marketers. For instance, improved technology of iPhone, when marketed in Japan, it acquired best selling list in Japan among smartphones. On the other hand, Nokia faced failures, due to less awareness about consumer market and their culture.

Culture is a significant aspect that impacts behavior of consumers. It can be seen from bias and preferences and differences in decisions of consumers. For instance, Chinese focus more on their traditions and believe on lucky numbers, so a Chinese consumer may dislike number 4, as it is an unlucky figure for them (Uddin and Razu, 2019). Therefore, marketing practices undertake consumer’ culture and their beliefs into account. The consumers’ attention is drawn to consider their key trends and interests. Marketing practices are aligned on integrity and purity of a sacred culture, such as Holi or Christmas (LEE, 2000). In a study, it was found that Chinese react with interest when western cuisines bring improvements in Chinese cuisines, however, they dislike when western philosophies interrupt revision of Confucianism. Therefore, Chinese consumers behave negatively when western philosophy is mixed with Confucianism because, according to their perception, Confucianism is defining identity in Chinese culture and its purity should not be contaminated.

Today, the improvement in infrastructure, processing, technology and development has made it easy to communicate, exchange and transport. Companies have increased opportunities to enter into global markets, operate at international level and influence global consumers. The global environment has presented integration of markets, technologies and nation stats. Due to increased internationalization, the problems across nations and cultures are complicated (Welch, 2017). The increased information, knowledge and production have made things easy yet complex. Marketing and advertising are massively being used to attract customers to increase production level and companies are facing serious challenges. A major challenge is the culture (Xina Yuan, 2011). It is not chaotic but based on different patterns. The elements of culture are language, customers, material culture, technology, social institution, and values.

To acquire competitive edge and sustainable growth in markets, the companies engage in diversity and complexity. This diversity centrally aligns the elements of marketing to face the challenges seriously and cope up with competitive advantage (Czarnecka, Brennan and Keles, 2017). The globalized companies have defined different marketing approaches to overcome the culture based difficulties and focus on key difficult situations in the world. The international operation of different companies confronts difficulties due to changed cultures. This concept can be cleared by following examples. An after shave product’s advertisement portrayed a man and woman with a pet dog, but this product failed in Middle East due to their concept about dog as unclean. A US telephone company tried to sell its products in Saudi Arabia, in its advertisement, the executive was talking by propping up feet on desk, which is a serious insult in Saudi Arabian culture (Uddin and Razu, 2019).  Similarly, Proctor and Gamble, in an advertisement in Japan, showed woman bathing and romantic scenes with husband in bathroom. This concept is seriously disliked in Japan due to inappropriate behavior and invasion of privacy (D’lima, 2018).

These examples show difference in taste and beliefs across the countries. Marketing and advertising has to undertake such key differences, in order to promote their products and services (Xina Yuan, 2011). Due to different values, traditions, and customs, marketers have to focus on their marketing tactics and advertisements. Difference in opinion, values and beliefs allow different consumers’ perceptions. The cultural values are recognized in the marketing literature that shows difference in pinion, product choices, and behavior and consumer motivation (Casidy Mulyanegara and Tsarenko, 2009). The cultural influence on the product purchase often comes in the form of how, what and when. The influence of culture on customers’ preferences can be seen in general so that marketer has to align its marketing strategy.  The scope of marketing is broad and varied in international regions but in some instances foreign culture often fails to conform to beliefs and traditions (Kotulla and Schmid, 2016). The main cultural factors that play strong role are people’s traditions, beliefs and customs that modify their attitudes and needs. The satisfaction of needs and wants is strongly related to their beliefs.

The global communication agencies work close on market research patterns to identify customers’ nature, views and attitudes to buy a product (LEE, 2000). Culture is a main force that shapes the way of a society. In global regions, the marketing companies work with proper research and communication skills. This step is required to offer a healthy insight to consumers about similarities and differences of products. These similarities and differences are mainly influenced by the changed language and socio-cultural images of customers. The Middle Eastern authors have explained their perceptions about marketing and advertising, which is solely defined on the basis of Islamic cultural values.

Purpose of Research

This research bears significance due to its nature of investigation about culture and its impact on marketing activities. Cultural elements are main aspects that define the values that prevail in people’s thoughts and decisions (Czarnecka, Brennan and Keles, 2017). Middle East, China, Turkey and Saudi Arabia are key countries, where western advertising cannot get desired results, particularly if it is not according to their cultural values and traditions. Anything that deviates from these countries’ culture is not acceptable for people. Most of the marketing and advertising activities are aligned with current cultural elements to fulfill the need of customers. Turkey and Netherlands are considered as European countries but their values are quite similar to Middle Eastern Countries (Kotulla and Schmid, 2016).

The difference in Islamic and western culture molds the marketing strategies and advertising. Some countries portray homogenous culture and the apparent societal differences allow them to follow common traditions. Mainly social groups follow different social class, education and wealth patterns (Uddin and Razu, 2019). Across Islamic and western countries, the difference in structural patterns and societal influences tend to modify the marketing activities (Ting Wang, 2009). This impact advertising practices in developed countries. The purpose of this study is to highlight the key differences in marketing and advertising due to cultural elements. The changed cultural element shed light on prevailed marketing strategies that target desired customers (Casidy Mulyanegara and Tsarenko, 2009). This study will fill the gap in previous studies about influence of marketing on consumer perception, in relation to prevailed culture. It will discuss the role of marketing on culture and how cultural elements can define consumes’ perception.

The perception of consumers has power to alter the global advertisement (D’lima, 2018). Moreover, the norms, traditions and attitudes about a product or marketing concept can also make a product successful or failure.  This paper will focus on defining specific attitudes and perceptions regarding specific products and services.

Research Questions:

The main research question of this paper is as follows:

How cultural elements affect local consumers’ perception and acceptance of global advertisements?
The sub questions of the research are:
● how cultural norms affect consumers’ acceptance towards global product advertisement
● How language affects customer acceptance towards global product advertisement
● How religion affects customer acceptance towards global product advertisement

These research questions will discuss specific details about culture, religion and language. This analysis will provide the key dimensions and understanding about a culture and its significance. These questions will also highlight the broader notion of consumption and marketing.

The organization of the paper is as follows:

The first chapter will discuss the introduction of topic, significance and purpose of research as well as research questions. The second chapter is about theoretical framework, it will discuss the global concepts such as consumption, product standardization and adaptation under global marketing perspective. Third chapter is about the literature review. It will undertake scholarly debates and controversies, other countries and the contexts where questions of cross-cultural marketing/advertising have been addressed (e.g. China and other countries). Fourth chapter will critically discuss the relation between consumers’ identities and consumption choices. Fifth chapter will be conclusion.

Part Two: Theoretical Framework

The theoretical framework is a detailed conceptual structure of this paper that will focus on consumption and marketing perspectives. It will discuss the adaptation vs. standardization of products, level of global relations and consumer attitudes and the culture & global marketing.

Consumption and Marketing

Consumer society is oriented on the global patterns. The domains of marketing are related to the global ingredients that work with cultural elements (Czarnecka, Brennan and Keles, 2017). For instance, the consumption is defined as the understanding about specific products required according to needs and satisfaction. Global consumption key is to understand specific insights about consumer dynamics and behavior by revealing marketing forces (Alden and Martin, 1996). Consumption and the culture of consumer are identified to implement significant marketing activities. The general sense of consumption is to satisfy peculiar needs. Consumption is associated with social and economic conditions that depends on needs, desires and wants (Kotulla and Schmid, 2016). It allows for value proposition necessary to fulfill demand of consumers. The role of consumption is to fulfill the self sufficient purpose including cultural, social and psychological needs (D’lima, 2018). The activities of human being regarding such elements ad portraying interest are consumption. The purchasing decisions of people about consuming a particular good are consumption. Organizations have expanded chances to go into worldwide markets, work at universal level and impact worldwide purchasers. The worldwide condition has introduced incorporation of business sectors, advancements and country details. Because of expanded internationalization, the issues crosswise over countries and societies are entangled (Gelbrich, Roschk and Gafeeva, 2016).  It is a way in which combined behaviors are analyzed and it represents economic activities. The consumption is a service to satisfy human needs. The consumption concept is the ideology of world which is already been criticized on the basis of marketing campaigns. Various nations advertise items in various areas to catch social qualities and to get acknowledgment about conventions. The social contrasts in various areas will in general depict various qualities and utilization styles (Casidy Mulyanegara and Tsarenko, 2009). The social education is noteworthy for advertisers. Culture is a huge angle that effects conduct of shoppers. A significant test is the way of life. It isn’t confused yet dependent on various examples.

There are different styles of consumption that signify role of products and services. In the consumption society, the work and production under capitalists system define value of leisure time. The different patterns of consumptions such as some feel necessities are important while others focus on luxuries; define the needs of people (Chegini, Molan and Kashanifar, 2016). Leisure time is followed by a capitalist system in the society as it also represents a notion of luxury and enjoyment. The agitation of a depressed society can be seen from solariums, casinos, shopping malls and sports club. It is also criticized by some scholars that the leisure time industry does not create satisfaction (Alden and Martin, 1996). There are five styles of consumption, i.e. conspicuous consumption, symbolic, addictive, compulsive, and sacred (Czarnecka, Brennan and Keles, 2017).

The conspicuous consumption is all about the satisfaction of basic needs such as food, housing and shelter. The consumption to impress others is also related to this category.  This consumption theory is related to the leisure class. The symbolic consumption is only related to the fulfillment of desires and needs via communication. The symbolic concept is about self completion, and a symbolic aspect that define a social process (Czarnecka and Keles, 2014). The addictive consumption is about addiction to specific products and depends on them psychologically, for instance, internet addiction, which is increasing due to people’s interest in virtual life (Ting Wang, 2009). The compulsive consumption is about the consumers who feel it compulsory to go out for shopping and repeat the process due to over anxiety. For instance, in different studies, it has been discussed that men show their power by using guns and bikes while women show their power by buying cosmetic and jewelry to improve their interpersonal relations (Kim, 2000).

The sacred consumption is a binary opposition such as products consumed with a degree of respect and awe. It very well may be seen from inclination and inclinations and contrasts in choices of buyers. The expanded data, information and creation have made things simple yet perplexing. Showcasing and promoting are hugely being utilized to draw in clients to expand creation level and organizations are confronting genuine difficulties (Pagani, Goldsmith and Perracchio, 2015).

The consumption and marketing perspectives are interrelated and they define the scope of advertisement. The influence of marketing on consumption pattern is positive because the advertisement is carried out to increase the brand awareness (Xina Yuan, 2011). It allows people to interact and get involved into better and desirable practices. Many big companies engage better practices of marketing and advertising to undertake large revenue. Massive production of goods is handled by marketing products by targeting different customers (Gelbrich, Roschk and Gafeeva, 2016). The changed preferences of consumers are tackled by targeting them with the desired products. The societal preferences are aligned on the culture and structural patterns of the consumers. Some advertising organizations even neglect to concentrate on purchaser discernments because of contrast in culture. The way of life is perplexing and its various highlights frequently make a deception of comparability.

Many customer shows positive attitude and expression for the company that works on cultural elements of a country. Targeting a society by keeping in view the cultural element is central to cater more customers (Alden and Martin, 1996). The societal marketing is more specifically carried out viewing the larger interest of consumers. The marketing campaigns are also aligned on the basis of religion, language and customs. The philosophy of marketing aligned on the positive attitude of consumers who value the products and services of company (Chegini, Molan and Kashanifar, 2016). Consumption and marketing are linked with producer and consumers’ point of view and globalization. Marketing is a systematic process which introduces a direct and personal relationship of consumers. The societal demands are increasing due to globalization.
Adaptation vs. standardization of products

The product adaptation is all about changed feature of a product and its modification according to the new markets. The product manufacturing and customization is aligned on the basis of product existence in a specific market. Product adaptation on traditional level is about modification of the in-house products but it also involves the competitors’ products (Czarnecka and Keles, 2014). Through involvement of product adaptation, the foreign rules and regulations are fulfilled, for instance, the American citizens want adaptation in cars and admire differentiated products in UK companies so they will focus on product adaptation (Kim, 2000). The process is vital for the innovation and attraction of different segments of consumers. The concept of adaptation is linked with the standardization. Both the concepts work together and focus on the product sale at international level. The adaptation involves modification of an existing product by incorporating new features that are desirable under cultural expectations.  For instance, in India, the vegetarian burger by McDonalds is introduced, which is an example of product adaptation (Ting Wang, 2009). The product adaptation is related to digital marketing as well as selling strategies. The buying choices of individuals about devouring a specific decent are utilization. It is a manner by which joined practices are broke down and it speaks to financial exercises.

The standardization is not about modification of products but it represents a new and modified approach of marketing. The reasonable and affordable process of marketing is standardization and it provides an effective change to enter into foreign markets (Xina Yuan, 2011). The exercises of person in regards to such components advertisement depicting interest are utilization. It allows for a central degree of adaptation that helps complying with the local regulations.  The product adaptation is related to different concepts, such as, promotional, intangible, tangible and price adaptation (Gelbrich, Roschk and Gafeeva, 2016). This is a process for companies to focus on new horizons and align its product dimensions with that of culture. The cultural representation is linked with the key attributes of marketing.  There are various styles of utilization that mean job of items and administrations. In the utilization society, the work and creation under business people framework characterize estimation of relaxation time. The various examples of utilizations, for example, some vibe necessities are significant while others center on extravagances, characterize the requirements of individuals (Chegini, Molan and Kashanifar, 2016).

Relaxation time is trailed by an entrepreneur framework in the general public as it likewise speaks to an idea of extravagance and pleasure (Kim, 2000). Because of various qualities, conventions, and customs, advertisers need to concentrate on their showcasing strategies and ads. Distinction in supposition, qualities and convictions permit various shoppers’ recognitions (Alden and Martin, 1996). The social qualities are perceived in the showcasing writing that shows contrast in pinion, item decisions, and conduct and buyer inspiration (Czarnecka and Keles, 2014).

The Global Culture Vs. Global Consumer

The changed internationalization is undertaking a global advertisement with an altered pattern of culture. The international advertising deals with different purchase intent and cultural difference (Steenkamp, 2019). The increased focus on internationalization in the past two decades has created diversity and altered patterns of growth (Ostergaard and Bode, 2016). The phenomenon of advertising in India, China, Latin America, and Eastern Europe is significantly changed due to cultural differences. Global culture and culture homogenization has favored different brands to set up a position in the marketing framework. The process of globalization is offering local brands to follow differentiated practices for products. The local consumer culture is acquiring central space on global integration (Ko, Lee, and Whang, 2013). America’s first policy, Tran’s pacific partnership, and Europe’s Refugee Crisis are some significant events that altered the global impact of marketing. The image of increasing trade, sponsorship, and global dominance is linked with global integration. Only five years ago, the concept of nationality and borders was most essential. Still, local consumer culture has aligned the ways of firms, consumers, and international marketing have played a significant role in the international advertisement (Hachtmann, 2004). The global consumer culture and local consumer culture are widely undertaken to analyze consumer behavior at the global level. This aspect plays a significant role in interplay with demand and supply (Mowen and Minor, 1998).

The researchers have focused on global and local consumer patterns to evaluate the main cultural factors that can determine purchase decisions (Khare, 2012). This framework focuses on consumer culture theory. The social arrangements of a society in which relations between lived and common sources are maintained in meaningful ways provide the dimensions of social culture. This networking work through mediation in markets and explains the significance of material resources. The consumer culture theories highlight the interconnectedness of a culture oriented on consumer factors (Zakaria and Abdul‐Talib, 2010). For instance, it highlights the notion of consumption when people believe in culture more than modern trends. It provides a collective sense of environment about consuming tangible and intangible products. The consumption includes lifestyles, images, and services that are close to culture, such as the India market mainly focuses on traditional patterns, i.e., bright colors and worship.

The global culture is inclusive of all the local cultures, thereby allowing marketers to focus on a significant advertisement campaign. The scope of global culture is broad but interlinked with consumer culture. Global culture is intertwined with the consumer due to set up perfectness and interests (Sabri, Manceau and Pras, 2010). Consumer culture explains all the social resources and symbolic aspects of life that play a crucial role in daily functioning. The system of consumer culture is mixed up with the transmission of cultural values, traditions, and practices (Woodside and Taylor, 1978). For instance, Buddhism in China and India is in methods for several decades, and one generation after another follows similar trends, practices, and lifestyles. This consumer culture formulates social actors that deem individual free acts. The consumer culture dispositions are depicted through imitation, social emulation, and matching. These factors are highlighted through the marketplace choices (Theodorakis and Painesis, 2018). These choices are further explained from the differentiation, distinction, and individuality basis. The motives in analyzing consumer culture depend on goods and services’ turnover.

The consumer culture is explanatory from the exchange of the capitalist market and commercial products. The things produced and then exchanged at a global level are valuable in their rights but assembled according to cultural patterns (Mowen and Minor, 1998). The consumption categories are known as commodities that are usually market made, and consumption involves consumer culture by including principles of individual freedom, choice, modernity, and market relations. The consumer culture characteristics are core aspects of marketing (Taylor, 2018). This consumer and global culture has shaped the ways of globalization. Hence marketing has acquired new forms of integration. The near past elaborates on the precise structure of marketing, product distribution, and manufacturing (Ostergaard and Bode, 2016). The two concepts of localism and globalism are central principles of the current age because they are aligned with the consumer cultural patterns. The increased cultural integration and interconnections under the force of localism have defined the consumption features (Manceau and Tissier-Desbordes, 2006).

The definition of consumer culture necessarily undertakes the element of globalism due to the specific social arrangements that are influenced by worldly patterns. The symbolic and material resources are then mediated in a global anchorage of markets (Khare, 2012). On the other hand, the global consumer is linked with cultural globalization theory (Theodorakis and Painesis, 2018). This aspect works on the joint forces of localism and globalism to define the more considerable macro interest of societal groups (Hachtmann, 2004). The global diffused behaviors are aligned on structural dimensions and transmissions, which include traditional and local cultures. The global position of customers is supported by varied local cultures and international practices (Muhamad and Mizerski, 2013).

Culture and Global Marketing

Culture is diverse and includes language, values, religious activities, and business norms. The elements of culture are linked with global practices of marketing in different ways (Welch, 2017). Language offers distinction in cultural activities based on various regional formats. The examples from West Bengal and Bangladesh clearly show various forms of Bangla languages. The people in different regions have different words and unique tones. A marketer must have to know about the particular styles, unique sounds, and words, to do marketing (Ko, Lee and Whang, 2013). The improved and best communication skills are essential to selling a product at a global level. Nonverbal communication skills like Postures, Paralinguistic experiences, Chronemics, and Olfactions. For instance, the showing thumb is used differently in two regions; in the West, it is a positive and encouraging sign, but in Asia, at some places, it is negative, according to culture. The marketing criteria tend to analyze local meaning or gestures, and it is compulsory to know these gestures to promote marketing activities (Muhamad and Mizerski, 2013).

In the high context cultures, the message given to society is based on particular negotiations, expertise, voice, and tone. The impact of religion on marketing practice is active; for instance, a powerful effect on consumer behavior is seen by Islamic values. It represents buying behavior and purchasing choice of products. These practices alter the way of global marketing and impact marketing. For instance, the use of pork and beef yields protein, but consumers based on religious views; do not consume pork in some countries. Muslims cannot select pork in a menu while Indians and Hindus do not like beef in a list. The marketer has to think about these conditions before offering such a product to a particular community.

The overall impact of culture on marketing is seen from these practices. Every religion decides culture, and different cultures have a particular set of values (Ostergaard and Bode, 2016). For instance, protestant religion stress frugality and hard work; Judaism stresses development and education, and Islam focuses on social interaction rule. These aspects provide the willingness and decision making power about a particular product (Welch, 2017). The consumption decisions based on religion undertake global marketing. The global marketing perspectives have to focus on specific choices about consumption, for instance, business holidays; in Muslims, it is on two Eids; in Hindus, it is on Holi, and in Christians, it is on Easter (Muhamad and Mizerski, 2013). The marketing practices have to focus on a mixed pattern of marketing when targeting different communities in Asia and Europe.

The cultural values, national and regional character, also allow for the different marketing techniques at a global level. The cultural values endure specific beliefs about a product code of conduct and selection (Khare, 2012). The products are ordered in the form of set systems and maintained priorities. If a marketer focuses on these criteria, the marketing promotions will be successful. Enculturation is a process in which individuals learn about the behaviors and beliefs endorsed by different cultures. Acculturation and assimilation are also critical attributes of a society by which marketing activities should be aligned.

Cultural norms work significantly for global marketing. The standards and values are specific rules that guide consumers about right and wrong. It also allows them to stay away or go for a particular product. The regional character and social aspects are aligned on time orientation and business hours. It is a part of a culture that decides individuals’ practices and values for their religion, for example, monochromic time and polychromic time (Welch, 2017). The business hours are just according to the native style of the community In the Indian subcontinent, the ten am to five pm is normal working hours while in western countries, eight am to two pm are normal working hours. Gender roles are also specific to discuss in the culture as it is the dominant factor that affects marketing. The gender, either male or female, determines the purchasing decisions and marketing based on religion (Ostergaard and Bode, 2016).  In some families, the mother is the owner, while in other father is the owner.

Part Three: Literature Review

The Unacceptability of Taboo in Consumer Research

Scholarly studies and literature have provided that the impact of culture can be seen in marketing tactics. There are different consumer perceptions about taboos and prevailing traditions. This section will discuss scholarly debates and controversies. It will also analyze different studies on consumption and marketing activities in other countries. The contexts of cross-cultural marketing and advertising in different countries like China and Asia will be addressed.

Manceau and Tissier-Desbordes (2006) discussed the death and sex subjects under the notion of advertisement. The scope of advertisement in the French cultural context elaborates about the prevailing trends. Taboo has been studied under ethnicity and psychoanalysis that make it easy to understand consumers. Authors have focused on its relationship with culture to analyze the use of advertisements. The use of sex in advertising is an ethical issue, while the impact of death is also a taboo in cultural aspects. The study worked with a survey to analyze how French consumers find it acceptable about taboos in advertising. The role of this objective was to find out individual characteristics in people and how these attitudes impact advertising. The authors focused that women and seniors are hostile to death and sex in such advertising, and young people feel different in advertising. It is found out that the general attitude about taboos in advertising is strongly impacting the attitude at the marketplace. The study provided managerial implications.

Taboos have been broken in 19th century and in Victorian era. Taboos about presenting flowers exist under floriography, under the flower dictionaries. The taboos about flowers allowed people to get into bouquet behind to know the real meaning of flowers. The secret language of flowers was used to send messages. Sabri, Manceau, and Pras,( 2010) illustrated the significance of taboos in consumer research. The societal patterns are influential when analyzed with ethnic perspectives. The study discussed that there is little research in marketing regarding taboos and their influence on advertising.  Literature in sociology anthropology and psychology defines the individual behavior towards taboos to influence consumption. The taboos perception is influencing consumer behavior negatively; for instance, surrogacy in commercials to get paid is also a taboo. The study discussed the historical impact of taboos on society and its prevalence in culture. Theoretical concepts are discussed to analyze the behavioral and conversational prohibitions. The historical and societal examples are given by the authors, such as homosexuality in Muslim countries is taboo but accepted in the US and France. The presence of taboos in historical junctures provides destructive impact on the consumer, such as in the 1980s, certain taboos and destruction phenomena about products were considered unmentionable. The study has explained that behavioral and conversational taboos have to highlight the differentiation about particular transgression; sanctions should be applied when people use a euphemism.

Modern marketing had to deal with many strict fancy taboos with advertising tactics, for instance in 1907, J Waltor Thompson company started its advertising campaigns breaking taboos, i.e. Woodbury’s facial soap.

Figure 1 1870s taboo about facial

Helen Resor introduced emotions into advertising in 1911; as a result product sale skyrocketed. Another advertising campaign about women hygiene shows how taboos were broken by Lysol as feminine hygiene product.

Figure 2 Lysol hygiene product

The persuasion tool used to increase sale was a message that women are at risk of ruining their marriages if they will not practice using Lysol (Radio, 2017).

Muhamad and Mizerski (2013) examined the impact of taboos on Muslim society. The scope of understanding this taboo system in an economy is diverse because there are different mechanisms of marketing to sell a product. Modern societies present different consumption modes. The study has tested the intrinsic and extrinsic role of motivation in consumers to make decisions about the prohibited product. For instance, the fatwa is a ban on certain products, and different studies indicated the effect of religion on consumers about the religious ruling. The theory of planned behavior is followed in this study, and a survey-based investigation is carried out to know about Muslim consumers’ views about a brand. With the help of a structural equation, the hypothesis was tested. The analysis found that motivation in respondents regarding Islamic teachings was significant, such as the decision to smoke and listen to music.

Ko, Lee, and Whang, (2013) worked on the authenticity of the consumer approach in relation to perception. The taboo theme is discussed in the paper regarding advertising. In the taboo system, many negative perceptions have been seen in advertising about society. The decisions of consumers are affected by using taboos in commercials and advertisements. In social sciences, personal space and affiliation with decision-making power are analyzed differently, and this study has added literary work of scholars to find out the role of consumer decisions. It is found out that practitioners use taboo themes to get more attention to advertising. This is significantly associated with consumer perception and marketing approach. The study mentioned that the use of sexual taboos in advertising had created a negative brand image for different products. This aspect is negative and triggers normative pressure. It is also found that due to the negative effect consumer’s attention to purchase the products decreased.

Modern marketing has played significant role to break down the strict taboos, for example, a delicate history about tissue paper states that it was produced in 1857; a Scott Paper company presented an idea of perforated paper.

Figure 3 Toilet tissue roll

In 1890s Victorian era, the taboo about toilet paper existed making it hard to understand the use of tissue so a marketing idea was needed. Therefore, Waldorf Hotel of New York started offering toilet paper in washroom s a private label was appeared for it branding. Later Scott tissue lingered taboo backlash and it was offered as a medical product to stop typhoid, dysentery and cholera (Hensoldt-Fyda, 2018).

It is safe to conclude that taboos are based on different cultures, and in different societies, response towards taboos is different regarding product acceptance. Social axioms are the constructs that measure belief and they help distinguishing society. The social axioms are application reward, social flexibility, social cynicism, fate control and spirituality. The application reward allows for the constant efforts that yield positive outcomes. Social flexibility refers to contradictory beliefs, according to the situation, while social cynicism discusses negative attitudes. The fate control allows for the understanding of people’s attitude towards future events. The supernatural aspects are related to spirituality in the society. A cultural gap exists in different countries regarding product acceptance due to cultural perceptions (Manceau, D. and Tissier-Desbordes, E. 2006). The ideas and products which are forbidden in the society are highlighted through taboo advertising, but this advertising may cause offence because it violates cultural norms. The product research about taboo advertising shows that how the taboo violating advertisement is not acceptable in the society. However, marketers are increasingly using taboo violating advertisement, due to a hidden power in them that offers brand recognition.

Culture is a significant issue in defining customer conduct. It clarifies why some goods trade well in some states or among unique or exclusive clusters, but not as fine elsewhere. Besides buying choices, culture also touches how customers use the goods they buy and how they discard them. Product usage supports marketers place their products uniquely in each market segments. Traditions or norms are also very powerful in the ways that culture impacts consumer behavior towards global products and brands. For example, in the American culture, turkey is old-fashioned nourishment for Thanksgiving. Only in the USA, this customarily precise behavior allows firms to raise poultry and turkey adequately near the Thanksgiving holiday. Other areas have traditions that put precise weights on the business firms that cater to those markets. Although, traditional outlines modify over time as a culture matures, but analysts with an eye on these formations have a gain.

Consumer Culture Theory

The consumer culture theory is a common thread that describes culture drivers. It is a responsive culture of global brands that represent the modern world in the consumption sector (Steenkamp, 2019). The consumer culture theory provides the dimensions of symbolism in a market generated goods format to construct collective identities (Ko, Lee and Whang, 2013). National culture has a significant impact on human behavior and it can be explained by theories of culture. Culture plays a complex role in the form of belief, knowledge and art or customs in human habitat. Different scholars have defined the culture as an interactive societal place, where societal members share common characteristics. National culture is not the only dimension to measure changes in attitudes but advanced communication technology and globalization are also key factors affecting original cultures. The scholarly perspectives about national culture explain human behavior and the prevalence of Subcultural aspects in a nation. It can be used as a proxy to represent culture because of country’s commonalities and differences. The national cultural framework defines cross cultural theories on the basis of Hofstedes’ work.

The theory of cultural value dimension is presented by Hofstede defining four national cultural dimensions. The choice of family and decision making power is attributable to the dominant person. It also portrays the general concepts, religious power, and concepts about the purchasing decisions (Woodside and Taylor, 1978). The cultural variability is about power distances, uncertainty avoidance, individuals’ vs. collectivism and masculinity vs. femininity (Sabri, Manceau and Pras, 2010). These aspects prevail differently in society and affected by culture; in turn global marketing is affected. The impact of global culture is linked to societal patterns. The global cultural differences are explained by Hofstede’s theory, where individualism, collectivism, long and short term orientation, masculinity & femininity, power distance, and uncertainty avoidance are discussed.  The cultural differences also offer a standardization strategy to discuss the scope of multinational companies (Ko, Lee and Whang, 2013).

Inglehart identified two value dimensions to discuss the sociology issues about modernization.  Key dimensions evaluated from the analysis are traditional vs. secular rational dimensions and survival vs. self expression dimensions. The former concerns discusses about authority, as when people focuses on the significance of nation, religion and family. The secular societal members do not consider religion important. The survival vs. self expression describes the relationship between groups and self. The survival values reinforce physical and economic security. The survival societies exhibit insecurity and unhappiness, when unfamiliar things happen. These societies take things for granted while accept changes. Inglehart’s framework is not widely applicable just like Hofstede.

Schwartz cultural value orientations describe about seven cultural value orientations. For instance, autonomy vs. embeddedness is about individual and groups’ relationship. The autonomy culture discusses about the unique and independent culture, where people can express their internal attributes, preferences and ideas. The intellectual and affective autonomy maintains status quo that can disrupt unity of group. Mastery vs. harmony describes the ways people manage socially and naturally. The harmonious culture appreciates and understands the world, while mastery culture tries to change the surrounding environment. The Schwartz cultural value dimensions are oriented on the priori theorizing. The cultural dimensions make non-orthogonal system; thereby distinguish Inglehart and Hofstede systems.

Steenkamp’s national cultural dimensions present four cultural dimensions. Autonomy vs. collectivism is consistent with both above cultural dimensions. Power distance dimension relates to this aspect in order to maintain societal order.  Hierarchy vs. Egalitarianism dimension explains interests of people and show cooperation. Nurturance vs. mastery is similar to masculinity and femininity as it deals with societal and natural environment of people by focusing on achievement. The uncertainty avoidance describes capabilities of people to handle any uncertain situation. Steenkamp focused on the correlation of first two dimensions and explains the significance of egalitarianism. These theories explain the significance of culture in different societies.

Culture needs to be scrutinized minutely as it is a very significant factor that affects consumer pattern. It would be a capital mistake for a global marketing firm to study the culture as a whole and standalone basis as there are many sub cultures and social classes within the framework of a culture. Sub-culture is a cluster of persons, within a culture, who share the same standards, civilizations and ethnicities. All the societies possess social classes. Social classes are usually segregated on the basis of income and some other social factors.

Taboo Theories
Development theories Theory Concepts of Taboo Elements of Taboo
Manceau and Tissier-Desbordes (2006) Localism and globalism are aligned with the consumer cultural patterns in French culture. Increased cultural integration and interconnectedness enhances consumption ·         use of sex in advertising is an ethical issue

·         impact of death

 

·         Death

·         Sex

·         Women

·         Seniors

Sabri, Manceau, and Pras,( 2010) societal patterns are linked with ethnic perspectives, behavioral and conversational prohibitions ·         behavioral and conversational taboos

·         use of euphemism

·         transgression

·         Surrogacy In Commercials

·         Homosexuality

Muhamad and Mizerski (2013) Different mechanisms of marketing to sell a product have made taboo system diverse in an economy. Motivation has intrinsic and extrinsic role for consumers to make decisions about the prohibited product ·         fatwa is a ban on certain products

·         Muslim consumers’ views about a brand

·         decision to smoke

·         listen to music

Ko, Lee, and Whang, (2013) In social sciences, personal space and affiliation with decision-making power are analyzed differently. In the taboo system, many negative perceptions exist. ·         use of sexual taboos in advertising

·         decision-making power

 

·         Women hygiene

·         Perfumes

 

 

(Hensoldt-Fyda, 2018).

Modern marketing is significant to break down the strict taboos ·         Typhoid,

·         Dysentery

·         Cholera

·         Toilet paper

·         Tissue roll

Cultural Theories
Development of Theory Theory Concept of theory Elements Of Culture in theory
Hofstede’s

 

cultural dimensions
Individualistic/Collectivism
Masculine/Feminine
Uncertainty of avoidance
Time
Power of distance
Indulgent
·         Strength of social hierarchy

·         Task orientation

·         Person orientation

  Schwartz

 

cultural value orientations
Autonomy/embeddedness
Mastery/harmony
Intellectual/affective autonomy
Egalitarianism
·         Unequal power distribution

·         Collective part of society

·         Pursuing positive experience

·         Self assertion

Inglehart

 

Social value dimensions
Traditional/secular rational dimensions
survival /self expression
·         significance of nation, religion

·         physical and economic security

Steenkamp, 2019

 

cultural dimensions
Autonomy/collectivism
Hierarchy/Egalitarianism
Nurturance/mastery
Uncertainty/avoidance
·         maintain societal order

·         show cooperation

·         achievement

·         handle any uncertain situation

 

Global Branding

The globalization process is oriented into a cultural force. The global consumer culture is defined in the form of media force, travel, and rising income. The true communication membership in the global community channel provides cultural ideas. The potential of global brands to transform cultural meaning and preferences in society is to enable consumption participation (Sabri, Manceau and Pras, 2010). The global brands are significant to offer consumers a wide array of communication and identity about cosmopolitan media culture. This helps to create an imagined global citizenship that is shared with likeminded people (Woodside and Taylor, 1978). Global marketing, as it name suggests, is marketing on global level. It refers to local corporations’ availing commercial benefits of international operational variances, problems and opportunities to make their presence felt globally. Global marketing has recently evolved itself to be a separate branch of study in general business management that aspires to market products and services on international level. Like local marketing, global marketing is also a function of 7 Ps like Product, Price, Place, Promotion, People, Processes and Physical evidence. An international marketing execution system allocates marketing resources, associate plans and supplies, interior communications, bulletins, depositor supplies, occasion advancements and trade shows to deliver a combined, precise and absorbed communiqué, entree and value to the customers.

The prime purpose of every business is to make the sales superfluous by analyzing the reasons that move consumer’s purchase decisions. Consumer perception theories, as developed by marketing gurus, attempts to scrutinize and elucidate consumer behavior in detail. It goes without saying that a similar product or service would be perceived differently by different consumers. Consumer perception theorists evaluate the motives or stimuli in buying or not buying a specific product or service by a consumer or group of consumers. Needless to say, consumer’s observation of a product or service may significantly vary from what the marketer or firm had envisioned offering. This is counter-productive for both the sides in today’s viable environment.

One of the main insinuations of globalization for marketers looking for development to foreign countries is the job of harmonizing rectification with customization. When some of the global brands enlarge outside their home marketplaces, they are attracted to replicate their tried and verified strategies in the foreign market as well. In fact this has been the strategy used by several brands. The postulation in such a scenario is that consumers would be too interested to use the brand due to its originality, legacy and links. Unfortunately, this strategy is slowly fading as international companies understand that local tactics cannot be used internationally in diverse markets along with the challenges of lifestyle, economic and cultural circumstances.

With intense global competition, it is getting very difficult for products to stand out and get noticed from the products offered by other entities in the market. Today’s consumers are very knowledgeable about prices and quality. They constantly look for discounts and bargains for branded and other luxury products. Being adequately well-informed, they are conscious of their rights and responsibilities of others. This mindfulness enhances their potentials from companies.

The only viable remedy open to a business in such scenario is consolidating the pledge between the business and the clients. This is surely to yield better dividends in modest benefit as this connection is not limited to the feature of mere price of quality only. Good experience a consumer feels with the company at different levels of contact such as efficacy and dependability, higher are the probabilities that he or she becomes a repeat customer. The impact of global marketing campaigns on consumer perception with reference to culture cannot be overlooked. Effective marketing strategies may alter a consumer’s perception of a certain product or service. Credit also goes to effective brand management. Consumer perception of brand loyalties has grown significantly as we have entered into the digital era. Since the year 2017, the mode to contact consumers has dramatically altered. Now brands need to develop tactics to penetrate into consumer’s life unconsciously.

Trust and loyalty play an instrumental role in consumer’s brand perception. Effective global marketing invests heavily in creating trust and loyalty a brand should possess in the eyes of the consumer. Building consumer loyalty is no easy task as culturally diverse consumer base constantly challenges new and effective marketing tools. It is no wonder that some of the brands like Apple, Google and Amazon have managed to get inimitable customer loyalty. Each of these bands has marvelously formed an unbreakable emotional bond with the consumer. Culture and cultural differences present a strong challenge to the global marketing initiatives. Culture, by its very definition, is a complex yet delicate belief of behaviors, values and society. It also includes the roles that a society demonstrates the conduct of the society, its ethics, civilizations and traditions.

The adoption of global consumer culture under global citizenship pertains to the global village. The different cultures in different nations offer differentiated ways of lifestyle. In international business forums, a competitive edge provides an understanding of cultural differences (Zakaria and Abdul‐Talib, 2010). This notion can be seen in African and Western cultures, where the scope of standardization is seen through advertising, but marketing is aligned on the cultural patterns. The culture is inherited in human traits as a result; globalization is seen in marketing perspectives (Mowen and Minor, 1998). The cultural globalization is linked with the adoption of global features in different societies. Thus they retain some exceptional features.  In the localized and standardized strategy for products, the cultural elements are incorporated. The standardized differences through cultural factors, in union-based markets of Asia and Europe; high advertising strategies are seen (Manceau and Tissier-Desbordes, 2006).

Cultural Consumption Patterns

Management guru Peter F. Drucker has observed that the ultimate aim of the business is to generate a customer, so the business firms need only two things: marketing and innovation. Marketing includes all the functions performed by enterprises to encourage the buying or selling of their products and services. Marketing refers to the understanding of customers’ needs and satisfying them optimally. It means not only meeting customers’ expectations but also exceeding it. Consumptions are very basic to human beings, not only for human beings but also all living beings. When a life is created on this planet, the first thing it consumes is air. There once was a time when consumption was considered necessary for survival.

Today, it has become the ultimate purpose of human beings. There are many factors, which determine consumer’s consumption patterns. Among these, culture is one such important factor. Culture refers to the intricacies of principles of human civilizations, their characters, their conduct, their ideas, and customs. A consumer’s consumption pattern is hugely affected by the culture he represents. Therefore, marketers all over the world must attempt to understand the delicacies of the cultural and economic challenges of consumers (Brice, Chu & Brice, 2017).

Culture is overly influenced by society’s views, arguments, institutions, materials, and feelings. One of the critical building blocks of culture is beliefs. Peoples are gravely affected and behaved by their ideas. It is reported that in the USA, the number 13 is considered unlucky, while in France, cosmetic products are more used by men than women. Resultantly, understanding of cultural properties, in the study of consumer behavior, is an essential element in marketing. It even gains more momentum in market segmentation, objective market and merchandise positioning.

It is an open knowledge that everyday life in the civilized part of the world has become conquered by the individual’s connection with consumer goods. The relation between consumption patterns and identity has been observed through a detailed analysis of different consumer theories, the study of wealth and cultural investigation, and feedback. Consumer preferences assist in outlining the identities of consumers both at the individual and group levels.

With apparently infinite choices and comparative wealth, consumption has evolved as a significant holiday activity. Someone has aptly said that today we are breathing in a world infused by consumerism. It is to be acknowledged that acts of consumption are determined not only by actual needs but also by consumer’s wish to make a declaration about themselves in response to others. It is known as the processes of symbolic consumption, whereby consumers use products or services as a means to generate, grow, and uphold their identities. This is true and of paramount importance that even the most common consumption choices echo a person’s character, sensitivities, and communal status.

Understandably, there is a growing curiosity amongst marketers and social scientists all over the world in the connection between consumer’s identities and choices. There is a direct relationship between consumers’ characters and choices (Advertising Sevak, 2019). While the consumption pattern defines the consumer’s identity, consumer’s preferences deal with the economic sense of affordability and maximum satisfaction in buying a product or service. In this age of the fast-changing and globalized world, the impact of marketing over a diversified cultural consumers’ group cannot be overemphasized. Global corporations use cut-throat marketing strategies to stay ahead in making sales superfluous (Brice, Chu & Brice, 2017).

Islam, as a religion, does not decry marketing efforts or business as a whole. Even the principal aspect of the spread of Islam in the Muslim era was effective marketing. Our Holy Prophet and other Muslim rulers practice Islamic values to promote Islam. However, consumer pattern in Islam or the Muslim world is a relatively new phenomenon for marketers. It is believed that consumption demonstrates a growing role in uniqueness formation for Muslim consumers: their rising social and sacred self-awareness converts markets, publicity plans, and consumer conduct (Mowen, J. and Minor, M. 1998). Muslim customer philosophy is strictly consistent with globalization and is, therefore, of significance to several parts of economic and sociological scholarship. There is still a dire need for a precise examination of its many features.

It is opined that the popular culture of youth may become a very stimulating and gifted scope for Muslim advocates. It offers an opportunity for the countenance of one’s uniqueness by picking its goods and services such as music, apparel, and other fashion. It is also facilitating to allow people from different cultural backgrounds and social groups to participate. It was observed that by referring to the Islamic Shariah, Islamic young consumer ethos practically strengthens the revival of Islam.

To make a product or service Islamic, it needs to fulfill some criteria like Halal food or some feature like money without interest. Islamic consumer culture follows a two-pronged strategy. It encourages the use of products, which were made as an Islamic version of Western products like videogames and sodas (Zakaria, N. and Abdul‐Talib, A. 2010). Secondly, it also fosters products that allow Muslims to take part in social and recreational life like burkini, i.e., swimming dress for religious Muslims women and books in Islamic financial institutions. However, it is to be kept in mind that the connection between religion and consumption of Islamic products is not always an easy one.

Some orthodox Muslims will outright reject the Islamic form of Western products as un-Islamic. For example, a fashion doll may be deemed fit for discard as it does merely a doll resemble a human face. Even pop music, despite its legitimate message, can be termed as haram as many Muslims do not accept singing or music as a form of recreation (Brice, Chu & Brice, 2017). With time, more and more Islamic versions of Western products are emerging. It may be safely argued that Islam and consumer culture do not clash with each other; rather, they co-exist more coherently. As they say, necessity is the mother of invention. Even Islamic consumer culture is growing side by side with Western consumer culture. The day is not far when these two cultures will co-exist with each other while maintaining their individuality.

It is worth mentioning that Islam does not support extreme avariciousness or luxury. People are gifted with intelligence. Therefore, they are rulers of their lives. They are at liberty to spend their life as they want, but Islam offers some value-laden guidelines to have serenity and pleasure. Islam does not prefer those who hoard affluence and pamper in pretention. The role of culture norms in consumer acceptances is significant (Advertising Sevak, 2019). Cultural diversity is indeed a pivotal reason that has an effect on the acceptance or non-acceptance of a consumer towards global products or services. As the world has become a global village, global brands enter into different cultures; it becomes a challenging task for them to analyze the calibration-customization range carefully wherein they not only afford to retain the intrinsic brand uniqueness which is necessary for their survival, but also use the brand rudiments (descriptions, promotion, networks, and others) to appeal to the local palates and favorite of customers.

The culture of a consumer has an inimitable bearing over his preference and choice of products and services. Culture is an instrumental factor in decisive consumer behavior. It justifies how and why some products get a good response in some regions, but not as good elsewhere. In addition to buying decisions, culture also impacts how consumers practice the products they purchase and how they discard them (Alden, D. and Martin, D. 1996). The use of product aids marketers place their products uniquely in each market. Consumers also can observe the use of the same products by members of other cultures, or achieve the identical needs with dissimilar products, as a means to catch well-organized, cost-effective alternatives in the market.

Traditions or norms are also dominant in the ways that culture affects consumer behavior towards global products and brands. For example, in American culture, turkey is old-fashioned nourishment for Thanksgiving (Ostergaard, P. and Bode, M. 2016). This customarily precise behavior allows firms to raise poultry and turkey near the Thanksgiving holiday, but only in the USA. Other regions have traditions that put specific weights on the business firms that cater to those markets. Although traditional patterns modify over time as a culture matures, analysts with an eye on these configurations have a gain.

It is a well-established fact that culture applies different stages of effect on members. Age, linguistic, society, sex, and learning level all move which customer behaviors an individual of an agreed culture prove. Fledgling people may not assume cultural changes that are common for grownups and may develop practices exclusive to their subgroup. This can engage everything from new purchasing patterns to a new product or service usage trends. As people relocate to other cultures, this issue comes in new ways; the strength of culturally resolute consumer behavior fluctuates even more.

Business analysts engage a great amount of time and energy, observing the aftermaths of philosophy on consumer behavior (Advertising Sevak, 2019). This is essentially necessary for global giants that have a large number of customers from a diverse range of cultural backgrounds. A superb marketing policy in one culture might be unsuccessful, or even counter-productive, to consumers of another culture. It is of paramount importance to cater to the needs of specific traditional behaviors by offering unique variants of a similar product that are made for demanding to the target consumers.

As adequately emphasized that marketers need to deeply understand the culture of their buyers to avoid inter-cultural rift, the core process and understanding of marketing of products and services among those consumers whose culture and cultural values are poles apart from those of marketers or manufacturers is undertaken in global branding (Sabri, O., Manceau, D. and Pras, B. 2010). It takes into consideration the basic cultural attributes like common customs, standards, language, schooling, belief, financial arrangements, commercial protocol, rules, and standard of living. On the whole, cross-cultural marketing gains benefits of the cultural groups’ different cultural standards to connect to and coax that group. The worldwide condition has introduced combination of business sectors, advances and country details (Hensoldt-Fyda, M. 2018). Because of expanded internationalization, the issues crosswise over countries and societies are entangled.

If a firm wishes to avoid cross-cultural marketing or does not want to understand other cultural norms, some funny situations arise. Some organizations may add the word ‘mist’ in a good’s name like ‘Irish Mist’, ‘Mist Stick’ or ‘Silver Mist’. This is acceptable and fine within countries whose native language is English. When these organizations expand their business operations in Germany, they found themselves in trouble due to their poor understanding of cross-cultural marketing as ‘Mist’ is loosely translated into ‘muck’ in German. Similarly the word “’Traficante” is the title for an Italian inorganic water processing firm. However, when the firm penetrated into Spain, they felt the significance of cross-cultural marketing. In Spanish language, the word “’Traficante” translates as ‘drug trader.’ Today, the improvement in foundation, handling, innovation and advancement has made it simple to convey, trade and transport.

In the year 2013, soft drink global giant Coca-Cola released a heart touching commercial. The advertisement featured well-known actors singing a song in a patriotic manner like “America the Beautiful” in seven language around the worlds (Theodorakis, I. and Painesis, G. 2018). It proved very moving as it inspired global consumer base in all the major parts of the world irrespective of their age, color, sex or religion. By delivering a creative and warmly ad spot, Coca Cola was able to win the hearts of its consumers not only for its products, but for its business morals of inclusion as well.  A Case Study of KFC’s Cross-Cultural Marketing in China: In the year 2007, KFC took the China by storms by establishing more than 2,000 outlets, leaving even arch rival MacDonald behind. KFC managed to earn praises from a large Chinese consumer base and conquering over challenges consistently. From the cross-cultural marketing point of view, it is worth assessing the factors responsible for KFC’s meteoric growth in China.

In 1987, KFC entered into Chinese market by opening its first restaurant in its capital city, Beijing. From the beginning, KFC was eager to learn and experiment to familiarize itself with Chinese culture, social norms and its huge market. They even designed an exclusive management model with respect to Chinese cultural characteristics. In order to face the aggressive competition from fast-food Chinese industry, KFC invested heavily in product innovation strategy (Casidy Mulyanegara, R. and Tsarenko, Y. 2009). As China is still considered a somewhat closed society, their populace is very susceptible to Western food products and culture. Chinese are considered very sensitive towards their sagacity of cultural individuality and traditional diets. Organizations have expanded chances to go into worldwide markets, work at universal level and impact worldwide purchasers. The view of shoppers has capacity to modify the worldwide promotion. In addition, the standards, conventions and frames of mind about an item or promoting idea can likewise make an item effective or disappointment.

KFC tirelessly endeavors to make state-of-the-art advancement jointly with the features of Chinese culture in allowing consumers innumerable choices to strengthen its position in Chinese fast food industry. KFC’s pricing strategy was also admirable as it believed in steady prices for a highly populous country like China. Effective distribution policy of KFC also yielded dividends in terms of availability and convenience for the consumers. It can safely be summarized that KFC’s Chinese under cultural marketing strategy can serve as a role model for other local and international fast food brands. The representative utilization is just identified with the satisfaction of wants and needs by means of correspondence. The emblematic idea is about self consummation and a representative perspective that characterizes a social procedure.

Part Five: Conclusion

Culture determines consumer behavior, so it alters the ways of marketing. The role of culture in consumer behavior is determined from individual patterns and values. The relationship between culture and consumer behavior is discussed in this research paper. The shared set of practices or beliefs that people share with society are oriented on cultural values. This aspect is primarily related to the marketer’s and consumers’ information that is reflected in the form of advertisement. The significant scope of culture is extensively discussed in the paper, and it has shed light on the changed cultural elements in specific counties. For instance, in China and India, cultural taboos are present.

The influence of taboos is significant in society, and colossal literature has discussed the taboos’ impact on society’s consumption behavior. The members of different cultures share similar patterns of consumption. Due to the product’s demand, marketers orient their ways to the advertisement. Most of the changed perception of taboo culture is attributable to marketing ideas. Since the Victorian era, taboo breakage has started the introduction of new products, such as women’s hygiene cosmetics, and tissue papers as toilet rolls. Consumers can easily be influenced by new ideas of marketing trough advertisement. This concept has broken many taboos in society and introduced new patterns of consumption. Other cultures also use similar products to fulfill consumers’ needs and expectations. The cost of effective options in advertisement have evolved the role of marketing.

Traditions influence consumer behavior, by and large, for instance, in the mainstream American culture; the concept of traditional thanksgiving is associated with traditional dishes, such as Turkey. This specific culture compels companies to produce poultry, so retailers get gear to fulfill demand near this holiday. The traditional impact on consumption and demand-based attitude is due to advertisements. The changing cultural patterns offer a clear advantage to consume. Moreover, the focus of age, ethnicity, gender, and language is related to the prevalent consumption patterns. The study has discussed current consumption and advertisement behavior that can be fruitful to break the taboo system. The focus of marketing in a specific culture is specifically designed according to values. A great deal of literature has discussed the effects of culture on the buying patterns of consumers. In multinational companies, the customers’ demand is assessed through marketing and advertisement. A marketing strategy is utilized to offer unique products that are aligned with prevalent culture.

The analysis of different studies has provided the significance of taboos and their relationship with convictions, beliefs, rules, and various norms that society accepts widely. The community customs, habits, and cultivated traditions are related to taboos, but the avoidance of taboos is due to magic, fear, religious beliefs, or good upbringing. There are different features that have an influence on human demand. Authors agreed that taboo violation often brings massive social sanctions. The various cultural conditioning appears due to social zones as and when imposed onto society. The analyses of studies have provided that culture and taboos have a variable relationship. Prohibitions due to restrictions are created due to religion, so a community strongly believes in taboos while whatever their reality is. This research study is significant to discuss key taboos and cultural impact on marketing. Taboos create symbolic borders as what is right or wrong, religious or nonreligious. This cultural category describes specific arrangements by integrating it with marketing activities. Without a doubt, the context of marketing is integrated with cultural values in Asia, China, Europe, and America. Whether it is food products, fashion, or lifestyle products, the scope of culture, and its impact on consumption patterns cannot be overlooked. The cultural element is incorporated in the transmission of advertisements. The contemporary advertisement reflects the broad sociological knowledge to reach targeted customers, for instance, as Proctor and Gamble do.

This research study supports various contexts of culture and its implications in the market. For instance, in the US, the market identification and research of the audience is required, so the country is a large masculine. The study has found the role of cultural taboos and their negative impact on society. The negative part of cultural taboos results in product acceptance because cultural segments affect the market, so promote a negative social culture. Any multinational company has to focus on its advertising strategy before introducing it in a domestic foreign market as there is a strong need to consider the prevailed cultural patterns. This study has also provided that how different cultural theories have worked on cultural identity and dimensions, such as Hofstede, Inglehart, and Steenkamp. These cultural descriptions, values, and orientations are truly dwelled in societies and hinder the concept of marketing. This research has offered a significant discussion about consumption and consumer culture by undertaking prevailed practices. The findings of the study provide a clear emphasis on advertising patterns and consumption, which is linked to taboos.

Power relations, masculinity, and femininity, cultural embeddedness, and hierarchy are some vital cultural dimensions. The findings of the study offer understanding about taboos, cultural significance, and the role of marketing to break them. The marketing plans are designed by large companies to accelerate product acceptance value. With the implementation of technology, the new structural focus is developed by multinational companies that can accelerate product demand by eliminating taboos. The cultural emphasis on the latest products under advertisement is attributable to marketing, education, and cultural literacy. It acts like a conducive framework for the effective functioning of consumer consumption. Cultural literacy is required to innovate the concept of marketing. This research study has provided an insight to expand global marketing tactics due to technology and advanced communication skills. Rich cultural patterns but cultural literacy allows a broader scope for marketing and advertisement. The consumer behavior patterns in different regions such as Taiwan, Japan, and Singapore, are modified at large due to advertising campaigns, broadcasting a wide view of products on TV and Radio. The people from Western countries are attracted on the basis of different perspectives, cultural differences, and product acceptance. The current study is useful to provide a comprehensive viewpoint about consumption behavior due to marketing.

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Executive Summary

Gillette, a brand name that is known for top-notch marketing strategies based on product development and innovation thrives in a highly competitive market for razors and blades. Throughout the years the company gained its competitive edge by introducing new shaving technology in an industry where new entrants are less and intense rivalry against competitors is common. However, analysts believe that true high-tech innovation and rapid development by Gillette has been left behind decades ago as the company has not embraced new technology in over a decade especially when it comes to meaningful product innovation.

One of the major marketing strategies of the company includes focusing on sports as sports resonate well with the consumer niche for Gillette around the world. This is because, in virtually every market, sports sponsorship and marketing is considered as the best way to approach the customers. The current strategy of the company is centered upon product differentiation and the acquisition of market share. This means that instead of focusing on current high-tech innovation, Gillette focuses more on acquiring and diversifying existing product lines.

For succeeding in the future, Gillette needs to innovatively out-market the competition by creating such products that have innovations that are not considered trivial by the consumers. This is because product innovation for the wet-shaving market has long been underwhelmed and the introduction of five-blade Fusion is nothing but trivial when it comes to comparison with its competitors.

Situational Analysis- Analysis of Macro Environment

The external environment for Gillette consists of forces such as legal, technological, economic, political and social influences which can impact organizational activity. The PESTLE analysis for Gillette highlights that economic, socio-cultural and technological factors mainly impact the organizational performance and the presence of its products in the market (Hooley, 2017). The impact of these forces has been discussed in the table below using PESTLE analysis:

Table 1. PESTLE Analysis

 

Macro-Level Factors

Importance of Key Factors to the Company

Political

n/a

n/a

Economic

Saturated U.S market and fluctuation in the market prone to innovative products

Gillette faces the dilemma of saturation within the razor blade industry as there are many brands competing to be the best product for the customers. There is a need for innovative shaving technology to acquire larger share in global shaving market and for capturing the attention of consumers.

Consumers have become highly sensitive to high price range when it comes to razors having top-notch technology.

 

Socio-Cultural

Change in cultural trends

Women belonging to European countries are not prone to shaving because of their culture while other women prefer to shave as they adopt more and more Western way of life. For example, some European women prefer to shave because they get influenced by American television and movies which depict women havingsleek legs and underarms.

 

Thus by fostering this kind of adoption of shaving for women, Gillette can easily capitalize on this trend in Europe. In fact, if women in Europe are influenced further through marketing campaigns to embrace shaving their hair at the same pace as women in America, then the blade sales for Gillette are bound to enhance.

 

Internationally, about fifteen percent of men do not shave because of issues with discomfort they face while shaving as they have sensitive skin; seven percent of men avoid shaving because of religious as well as cultural reasons while three percent of men simply do not care about shaving.

 

Technological

Top-Notch Technological Innovation in Razors

Gillette’s products dominate the wet-shaving industry around the globe, however, analysts believe that its historical innovation has come to an end as there has not been a breakthrough innovation of its own which entices the customers.

Legal

n/a

n/a

Environmental

n/a

n/a

* n/a: Not applicable – Not indicated in the case study

 

Situation Analysis- Analysis of Industry Competition and Competitors

The degree of market attractiveness, as well as industry competitive intensity, is going to be assessed using the Five Forces framework by Porter. Gillette has been in the industry for a long period of time and the industry is attractive now because there are new entrant barriers due to saturation within the market channelized by aggressive competition. However, there is a high intensity of rivalry as this leads to price wars, fluctuations due to innovative products and makes it more expensive for a company to maintain a large market share.

 There is a high cost of entry due to high market saturation which means that new entrants will have to face high competition and low sales which can eventually lead to bankruptcy. The mature nature of Gillette in the market makes it difficult for new entrants. Gillette has a market share of 12.8 billion dollars in the global market which means that it does not have any threat from new entrants however it does face high intensity from rivalry as many companies are now capturing more and more consumers by investing in innovative shaving technology.

 

Table 2. Porter’s Five Forces on Gillette

Force

Related Factors

Assessment

Intensity of Rivalry

·         High Number of Competitors

·         High Product Innovation

High

Threat of New Entrants

·         Patents limit new entrants

·         High Product Differentiation

·         High Concentration Ratio

·         High Cost of Entry

Low

Threat of Substitute

·         Number of substitute products in the market

 

High

Bargaining Power of Customers

·         Availability of existing substitute products

·         Substitute product is inferior

·         Large number of customers

·         Customer Loyalty

Moderate

Bargaining Power of Suppliers

n/a

n/a

* n/a: No applicable – Not indicated in the case study

 

Competitor Analysis

Gillette’s biggest competitor is Schick because of its progressive geometry technology. Schick acquired market share through a four-bladed razor back in 2003. Gillette and Schick have been competing with each other for decades and in 2003, came face to face in a lawsuit for misleading customers.

Table 3. Competitor Analysis

Competitor

Overview

Competitive Edge

Product Range

Innovative Products

Schick

Top-notch brand of safety razors found in 1926.

 

Schick has a total of 10% market share in U.S.

Stainless Steel Blade

·         Diverse range

·         Introduced world’s first four blade razor

Quattro

Bic

Based in France and known for making consumer products such as razors, pens and lighters since 1945

Pricing

n/a

n/a

Dollar Shave Club

Founded in 2011, shook up the razor market by taking up 8 percent of U.S market share

n/a

n/a

n/a

* n/a: Not applicable – Not indicated in the case study

Situation Analysis- Analysis of Customers

Gillette’s primary customer segment includes male athletes as it markets most of its products at sports events such as NFL New England Patriots, World Cup, Soccer events, MLB, NASCAR, and Olympics. Gillette also targets women as it has the advanced Venus best for women that require good design.

Table 4. Customer Segmentation by Demographic

Segments

Segment Profile/Characteristics

Segment Preferences

Primary Target:

Fans of Sports, Middle Income, Athletes belonging to Latin American and European countries

Razors having advanced innovation such as foil razors that have perforated metal which cover the blade and rotary razors that have spinning blades.

Secondary Target:

Women

Razor that has built in gel and has advanced design that requires minimum effort.

Portable razor for carrying in bag and for emergency situations with built-in spray as well as soap.

Possibilities

Female Athletes and European Women

Men with Sensitive Skin

Razor should be recommended and tested by dermatologist for sensitive skin. The razor must have moisturizing strip which cuts at the back so that irritation can be avoided.

Razor must have blades that aid in shaving backwards and forwards so that the rick of cutting can be reduced.

Avoid Target

n/a

n/a

 

 

 

Internal Environment & SWOT Analysis

 

Porter’s Generic Strategic Type

Gillette uses a differentiation strategy by making different product lines more attractive to customers in comparison with competitors. For example, Gillette appealed to its female customers by winning 2010 Most Profitable Solution to a Business Problem award for the Venus razor for women (Hartline, 2013). The razor was catered to the needs of the women in such a way that it specifically differed in its offering from the ones before it due to its design. The previously existing razors were just prototypes of men’s razors colored in pink while the Venus razor enhances the shaving experience and expanded the market share for Gillette. This demonstrates that Gillette used a successful differentiation strategy by investing in product research, innovation, and development and by delivering a high-quality product for women.

Furthermore, Gillette used effective sales and marketing campaigns to implement the differentiation strategy. For example, in 2012, Gillette launched the Masters of Style campaign for its Fusion ProGlideStyler which starred three celebrities known for their facial hair. The Fusion ProGlide product was designed specifically to cater to complex facial hair styling which involved scissors, trimmers, and razors. P&G then used this product differentiation strategy to market other products such as ProGlide Clear Shave Gel in all in one styling toolkit.

SWOT Analysis

Gillette needs to invest more in research and development specifically for new shaving technologies. There is also a lack of product demand forecasting which leads to missed opportunities specifically in cultural trends. There is a need for innovative shaving technology to acquire a larger share in the global shaving market and for capturing the attention of consumers.

Table 5. SWOT Analysis

Strengths

 

·         Large Market Share

·         Brand Name

·         Customer Loyalty

·         Acquisition Strategy

 

Weaknesses

 

·         Lack of Technological Innovation

·         Lack of Product Demand Forecasting

·         Non-adequate R&D

 

Opportunities

·         Investment in adjacent product segments

·         Capitalize on new shaving trends in Europe

 

Threats

·         Intense Rivalry with competitors

·         Bargaining Power of Customers

·         Lower demand

 

Evaluation of Current Strategies and Problem Statement

The current strategy of the company is centered upon product differentiation and acquisition of market share. This means that instead of focusing on current high-tech innovation, Gillette focuses more on acquiring and diversifying existing product lines. The company adopted the same strategy back in 1962 when the stainless steel blade was launched by Schick, the main competitor of Gillette.

 Gillette acquired much of the existing business of its competition and continued to diversify its product line while obtaining mixed success. Gillette thus became a victim to its own strategy of cannibalizing their products that were successful. The launch of Sensor Razor enhanced sales globally, heating up the internal competition. Gillette continued to venture into different product lines by continuously attacking its own products.

From Atra to Trac II, from Sensor to Fusion, Gillette kept on changing and attacking its products. This kind of marketing strategy did revolutionize the shaving market, however, it made Gillette a victim of its own success. This is because while the new product lines by the company enhanced the sales, they often took away the customers as well as sales of the previous products.

For example, Sensor, launched by Gillette in 1990 enhanced sales globally until 1993, when it was overthrown by Sensor Excel. Another competing product produced by the company includes Sensor for Women launched in 1992 and Sensor Excel for Women launched in 1996. The soaring sales of the Sensor line led to the decline of Trac II and Atra which belonged to the twin-blade shaving line. It should be noted that with the introduction of every new product line, consumers were more eager to get their hands on the new products and it might be the case that they are not pleased with the pricing of the existing product or some feature because of which they purchased the new products.

One of the major marketing strategies of the company includes focusing on sports as sports resonate well with the consumer niche for Gillette around the world. This is because, in virtually every market, sports sponsorship and marketing is considered as the best way to approach the customers.

Problem Statement

For succeeding in the future, Gillette needs to innovatively out-market the competition by creating such products that have innovations that are not considered trivial by the consumers. This is because product innovation for the wet-shaving market has long been underwhelmed and the introduction of five-blade Fusion is nothing but trivial when it comes to comparison with its competitors.

Alternative Strategies

Product Innovation through Research and Development

Gillette must invest in Research and Development as it plans on global expansion. Extensive R&D will enable the company to understand the influence of culture, religion, ethnicity, gender, etc. in shaving behavior. Internationally, about fifteen percent of men do not shave because of issues with the discomfort they face while shaving as they have sensitive skin; seven percent of men avoid shaving because of religious as well as cultural reasons while three percent of men simply do not care about shaving.

Thus by being aware of cultural as well as behavioral traits of the consumers the company can easily target, develop and innovate its products and in turn satisfy the customers. Similarly, when the patterns in women are seen, it can be observed that many women opt to not shave for cultural or religious reasons meanwhile some cultures are opting to turn towards shaving such as younger European women.

High-Tech Razors

Electric shavers happen to be around since the late 1930s. However, recently there has been advanced innovation such as foil razors that have perforated metal which covers the blade and rotary razors that have spinning blades. Gillette already incorporates the five-blade razors in its product line, however, its competitors have adopted technologies that are by a far top-notch when it comes to innovative sensor monitors or trimming blades that provide personalized shaving modes (Sands, 2019). Gillette lags behind its competitors when it comes to innovation specifically Sonic technology as well as AutoSensing motors. This kind of technology enables those with sensitive skin to shave dense surfaces on the face efficiently as it prioritizes gentleness over toughness with just a click.

Focus on Cross Promotion

Gillette happens to be heavily focused on men when it comes to promotions. It would be better if they change their market niche and advertise innovative products for the female sports team instead. Effective advertising tends to tap into the emotions of the viewers which means that it can compel them to take upon themselves the act of shaving. In the case of women’s shaving and razor industry, ad campaigns and products are tapped into emotions such as love, fear as well as shame to create demand for the product. The global women’s razor market from 2018 to 2024 is expected to grow at a CAGR of 4%. Moreover, the concept of gender neutrality in shaving products is a concept that should be promoted keeping in view the market trends. The majority of brands are jumping onto the diversity as well as inclusivity bandwagon and this is something Gillette should hop into as well.

Table 6. Evaluation and Justification of Strategies

Objectives

Alternative Strategy

Justification

Gillette needs to innovatively out-market the competition

Gillette must invest in Research and Development as it plans on global expansion.

By focusing more on Research and Development, Gillette can easily cater to the needs of those customers who are unable to shave because of sensitive skin. Product development and innovation can only be done through extensive research on consumer needs.

 

Create such innovations that are not considered trivial by the consumers

Focus should be made on technological innovation for products.

Today, razors can be found for even sensitive skin type for men and can be used for shaving or trimming goatee, maintaining stubble, growing hair fast and for trimming beards. Gillette, however, lags behind its competitors when it comes to innovation specifically Sonic technology as well as AutoSensing motors. It is imperative that Gillette create such technological innovation in its products that they can surpass the expectations of the customers and compete well with competitors.

 

Acquire more customers

Gillette must be focused on cross promotions

The concept of gender neutrality in shaving products is a concept that should be promoted keeping in view the market trends which is why women in sports should be targeted in marketing campaign.

References

Hartline, M. D. (2013). Case16: Gillette: Why Innovation May Not Be Enough.

Hooley, G. (2017). Marketing Strategy and Competitive Positioning. Pearson; 6 edition.

Sands, R. (2019). The Best Electric Razors of 2019. Retrieved from Forbes: https://www.forbes.com/sites/rogersands/2019/08/03/the-best-electric-razors-of-2019/#737b210011c4

 

 

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