(Ng and Tuen 2006 pp.23-25) They demand basic necessities only. (Abdelal & Tedlow 2003 pp.23-25) This creates rooms for Giordano and Baleno in exploiting the low-end market by charging reasonable price at good quality level Mary Kay is a foreign branded cosmetics firm. It has done a research to know more abo^ the Chinese make up habit the Chinese ladies are generally having different make up habit from the western ladies. Mary Kay has to adapt certain shades of make up in China, Most importantly, Chinese views "face" as a kind of "respect and consideration." (Lu 2001 pp.32) This want "face" culture is consistent with the Chairman of a-Fontane's views that the Nouveau Riche want to show off and this can represent their status. If the foreign marketers in China do not grant some favors or show respect to the Chinese counterpart, it is hard to build up a long-term relationship and worsen the future business opportunities. (Dwyer and Hsu 2005 pp. 1 -- 28) (Pan 2008 pp.6-8)
Regional factor is influential as Next Plc has different markets. Nike has chosen Guangzhou and Shanghai as the target regions and expanded to Beijing and Shanghai through franchising. MNCs have to adjust their marketing tactics regionally. (Tretiak 2005 pp.45)
From the above analysis, it is obvious that spatial variation is an influential factor. For the affluent coastal regions, Next Plc have established foothold through operating flagship stores as the showrooms. (Baker 2005 pp.89-91) They are grand in design targeting at affluent consumers. For the less profitable regions especially the interior, Next Plc do not want to take the risk and expand through franchising only. They can extend market influence with little costs and risks. Giordano is going to build a fourth-floor high flagship store in Shanghai. It is foreseeable that Next Plc will operate more flagship stores in affluent coastal regions and the competitions for place will be fiercer. (Porter 2008 pp.179)
The analyses clearly show that Next Plc will become a powerful brand name in the retail market of China through adjusting to the cultural differences between UK and China. Despite the fact that there are a number of strong rival companies, current tense economic situation, unpleasant conditions, and very much altering customer behaviour, company has applied its devoted intelligence, constantly growing and improving the products, and keeping high level of quality to defeat these problems. (Abdelal & Tedlow 2003 pp.23-25)
Next features this constant increase in retail to the strong correlation between Next Brand own label and ability to adapt to the market of China fluctuations rapidly. At the current times, it is of high importance to have a sound name in the trade due to people's willingness to purchase higher-priced products, sometimes just because of a Brand of the company. This is a core reason of companies like Dorothy Perkins, Top Shop, New Look, H&M spending huge amounts on advertising their Brand.
In spite of everything, Next is not to stop growth, no resting relying on what have been achieved so far. Objectives and Strategies are set and have to be realised, being attentive to threats and weaknesses of the Company and current market of China situation. The Spinning Wheel Never Stops! (Pan 2009 pp.14-18)
After reviewing all the case studies and marketing tactics in China, it is important to pinpoint the tactics for marketing in China. In sum, it is important to incorporate the variables such as countries and products in the analysis of global and local marketing strategies. Next Plc should pursue differentiation and adaptation strategies in order to be successful in China. (Wilson and Gilligan, 2008 pp.69) Differentiation strategy is in terms of quality control, brand building and value added auxiliary services like "after-sale" services. Market adaptation strategy in terms of localization and regional adjustments are prerequisite for marketing ...
In general, there are two main types of marketing strategies employed by Next Plc. Some MNCs like Mary Kay in Shanghai may choose one particular province that can suit their products as the stepping-stone in China, in this way, they offer standardized product offerings as they are selling in the western countries. Only other marketing mix such as pricing, distribution channels and promotional tools should be adjusted to suit the particular China province's needs. In other words, these types of MNCs do not need to adjust their marketing strategies regionally as they have already carefully selected the most suitable segment in China. Another type of marketing strategy is the regional adaptation one. Next Plc may be very ambitious and have chosen many provinces in China as the target segments. Under this ambitious market expansion goal, it is important to think of regional adjustment of entire marketing strategies.
As mentioned before, Next Plc does not need to adjust their product offerings despite choosing penetration into different provinces in China. The key ingredient of success is the already proven product offering and there is no need to adjust the product strategy even regionally in China. Next Plc selling premium products must have good quality control and high-brand images. All the things that they need to adjust may be the promotion, distribution and pricing tactics. They can minimize the cost of regional adjustment through franchising. They leave the responsibility of launching regional marketing strategies to the franchisees. (Paliwoda 2008 pp.63)
For instance, the franchisees must adjust promotion and distribution strategies to suit their particular market needs. This can save initial set up and managerial costs. Be that as it may, Next Plc need to adjust all the marketing tools regionally. Next Plc has to satiate the regional customer needs regarding the dressing tastes as it is more sensitive and customer's switching cost is low. Next Plc have to adjust the orders of product 'offerings in different regions. Be that as it mays whether Next Plc have to adjust the market development strategies regionally really depends on product nature, customer needs and market positioning. (Oliver & Stelle 2007 pp.78)
Next Plc should be adaptive in terms of localization and regional adjustment. In order to be successful, it is essential to be flexibile by knowing the customer needs and trends. Knowing the customer needs is important in China, as China is a vast market and highly fragmented. Customer-oriented marketing strategy enables successful market penetration in China. Despite the fact that offering quality products with distinctive images are key ingredients to succeed, flexibility is no less unimportant. In view of the localization strategy, Next Plc should place a special attention on striking the balance of standardization and adaptation strategy. Next Plc may offer the unaltered products to China and this has ended in a complete failure. Nike has successfully added a cheaper line-world cup soccer shoes to appeal the little emperor's market. It has made use of national athletes to localize the promotion campaign. Chinese fashion designers design Playboy's clothing and it adjusts the number of product offerings to suit the regional customer's needs. All these have provided some implications for the importance of "product adaptation" to the China market. In addition to the premium product line, Next Plc should invent a cheaper and localized product line to suit the Chinese customer needs.
If next Plc is familiar with Hong Kong market, it can use Guangzhou market as the stepping stone as the consumption behavior is similar. Market segmentation is of outmost important especially for the fragmented China market. In sum, adaptation in terms of regional adjustments and localization are gists of success in China.
For the projections of future China market, it is imperative to place a special attention on the trends of future consumption pattern, retail and distribution, advertising and media access and China economy as well. Amidst the growth of China economy and its WTO accession, China market will be more competitive and there will be increasing MNC's entrance to the market. On the other hand, the local brands are in catch-up mode and upgrade continuously. The Chinese customer's demand will be more sophisticated due to the wider pool of foreign and local brands available for selection. The customers will be more quality and brand conscious. Next Plc have to face keen, competitions with both local and foreign competitors. All these will lay profound implications to marketers in formulating future marketing strategies. Instead of confronting fierce price competition, Next Plc should differentiate and localize their marketing tactics. With an aid of Michael Porter's Industry analysis, Next Plc must set up higher barrier of entry through continuous research and development, customization of product and auxiliary services, aggressive brand building, and tailor-make marketing and advertising strategies. Indeed, the future China market will be full of opportunities and challenges for Next Plc.
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(Pan 2008 pp.6-8)
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