Sociocultural Sociocultural factors play a significant role in the macro-environment. They affect people’s attitudes, beliefs, behaviours, preferences, customs and lifestyles. Starbucks operated business in different countries causes different results are the typical example to show how the sociocultural factors would influence marketing mix. Starbucks, which was started in America, quickly became one of the most famous brands of coffee chain worldwide. However, Starbucks was stuck in Australia and it closed 61 shops and cut 700 jobs. According to a journal article (BusinessThink 2010), Starbucks was doomed to fail because they just exactly copied what worked in America to Australia. In terms of product, Australians already have their coffee …show more content…
Meanwhile, KFC introduces about 50 new products a year and some of them are offered temporarily. Therefore, Chinese consumers could taste both Chinese-style food and Western fast food in KFC and could frequently experiment with new products. On the price front,KFC gains maximum material sources in China to keep costs low and makes the price is acceptable to customers. Additionally, KFC makes a considerable investment in promotional activities, such as advertising and training their employees in customer service. Those activities could build awareness of, interest in and stimulate customers to purchase products from KFC. In terms of place, KFC is expanding speedily into small and midsize cities in China and it already opens KFC restaurants in 700 Chinese cities. In other respects, KFC Company is developing a vast logistics and perfect supply chain in China. Therefore, KFC could ensure the products are available all the time and customers are easy to purchase the products from …show more content…
For solving environmental contamination and energy crisis, a large number of companies changed themselves to be the environmentally friendly companies. For example, according to a journal article (Plambeck & Denend 2008) Wal-Mart launched a green supply chain, and this strategy influences the marketing mix. On the product side, Wal-Mart committed to work with suppliers who are certified by the nonprofit organization such as the Marine Stewardship Council (MSC) and the Organic Trade Association. Therefore, Wal-Mart would know where are the offerings come from and offer the higher quality of products to customers. The higher quality of products would attract customers and potential customers to purchase it in order to satisfy functional, social and psychological needs, and demands. In respect of price, Greater transparency in the supply chain allows Wal-Mart to simplify the chain of management, reduce paperwork and decrease transportation costs. Hence, Wal-Mart not only could drive down costs to benefit, but also offer products with a lower price. Customers may decide to purchase products in Wal-Mart for the lower and the reasonable price. With respect to promotion, Plambeck and Denend (2008) suggested “actively pursuing an environmental agenda would help Wal-Mart differentiate itself from its competition.” Meanwhile, Wal-Mart successfully makes
Japan didn’t open to foreigners until the mid-19th century. Japan quickly realized the situation and began to modernize and westernize as fast as possible. Japan wanted to be strong enough to resist domination of western imperialists who wanted Japan for their own. Japan also wanted to become the strongest Asian country. Japan’s tactics of rapid modernization succeeded, and kept the country and government independent of foreign control.
Expansion into developing nations with different social and cultural parameters would require altering the menus and catering to the specific customer needs. Economic factors The low franchising cost comparing to the competitors is an advantage for Subway. However the cost of ingredients and supplies used in the preparation of food is higher than that of the competition due to the need for fresh ingredients. Customers have a perceived value which is higher than that of the product offerings of alternate fast food chains.
I. Background and Company Analysis ________________________________________ Patagonia, founded by Yvon Chouinard in 1971, is an outdoor apparel company that has successfully integrated green elements into almost every business activity, from R&D to human resources management, to reduce harm to the environment. These elements firmly align with the corporate objectives of enhancing product and service quality, reducing environmental impacts and having constant innovation. These practices not only enable Patagonia to create values to its customers, but also help the company differentiate itself as innovative leader in the green segment of the industry. A. Orsato’s Framework - Competitive Environmental Strategies Patagonia should be considered
Learning to appreciate the differences between the two cultures is important and helps to broaden the understanding of cultural differences. Western cultures are based on individualism rather than collectivism. In many Western societies, emphasis is placed on individual rights unlike Chinese culture, where the country, society or family are based above self. At first glance, Chinese is obviously different from Western Culture.
Political • Growing demand and supply shortage has increased world coffee prices. • Favorable advantage to accessing raw material through supplier relationships. • Fair-trade practices include its Coffee and Farmers Equity (C.A.F.E.) program among other fair trade policies and agreements. • Starbucks adheres to local, national and international government laws and policies and tightly control labour practices, avoiding scrutiny and negative imagery from being a large corporation. Economic • High industry sensitivity to the macroeconomic factors affecting disposable income, a main industry driver.
Personal Statement I would like to confirm that it is my motivating of Chinese culture that ignited my passion for cultural and creative industry. As a Tourism Management major student, I was able to explore the Chinese diversified cultures and landscapes, which offered me an insightful understanding of the Chinese cultural development. Under the guidance of commercialization, some cultural heritages have developed into huge tourism souvenir markets full of counterfeit and shoddy products. The over-commercialization reveals the fact that the Chinese culture is facing a severe situation. The country calls for a better cultural development strategy, which cultural and creative industry can offer.
We can look through its macro environment by six factors. The six factors are: political, economic, cultural, technological, natural, and demographic environment. The macro environment analysis is to find out the possible threats and opportunities of the brand. The analysis will
Political environment includes laws, government agencies, and pressure group that influence and limit various organizations and individuals in a given society. Economic environment consists of economic factors that affect consumer purchasing power and spending patterns. Social factors include the demographic and cultural aspects of the external macro environment. In which demography is the study of human population in terms of size, density, location, age, gender, race, occupation, and other statistics; cutural environment consist of institution of other forces that affect society’s basic values, perceptions, preferences, and behaviors. Therefore, these factors have an impact on customer’s needs and size of potential markets.
The adoption of CSR strategy is also another drive factor for companies as it is perceived a way to gain competitive advantage. Those two aspects are strongly connected and the role of the supply chain in CSR strategies is vital (Blowfield & Murray, 2010). Companies which have not only adopted CSR actions but have highlightened them as a core factor of their long-term strategic planning may find complexities to uphold their social and enviromental standards to the whole value chain. The key issues that must be solved in the supply chains to support the firm’s CSR strategy are: • The partnership companies have with their suppliers: Companies, likeTesco, must collaborate more closely with their tier suppliers without underestimating the controlling them to esnure that sustainable ethics and actions are applied. • Particularly, for the transportation/distribution sector, the reduction of fuel emissions can be achieved by achieving a successful perfomance of lean supply chains, with organized distribution plans which will minimize the
Pizza Hut was established by Dan and Frank Carney in Wichita, Kansas, USA in the year 1958. Pizza Hut Inc. is one of the prevalent pizza companies worldwide. It was a subsidiary of Pepsi Co Inc. from the year 1977 – 1997. It is a wholly owned subsidiary of YUM! Brands since 1997 to present.
When clients learn that they use environmentally friendly resources, this will show them that they not only care about the environment, but also that they are a responsible company. This improved brand image will lead to an increase in sales, furthering their company’s profits. Price Because they are introducing their product as a new market, they will use price skimming strategy.
They placed their product for a high price and target the middle and upper class people. According to Behera (2008), the pricing strategy include not only the price list but also comprise of on going offers, discounts and promotions. KFC is using skimming pricing strategy on the new product to reach a segment of the market that is relatively price insensitive and thus willing to pay for a premium price for a product. As the product is new, company need to adjust the price from time to time base on customer respond and cost of production. The product price will be firstly placed in the range of RM8 to RM15, base on the type and size of the meal ordered.
Cultural Analysis of China The definition of culture is; the customary beliefs, social forms, and material traits of a racial, religious, or social group; the characteristic features of everyday existence (such as diversions or a way of life) shared by people in a place or time. Mainland China has a rich and prosperous culture which dates back more than 4,000 years, which is full of Chinese culture and history. China has a colorful history, which focuses on more traditional aspects like food, customs, and the life style of its people. The Chinese people have shared a common culture longer than any other group of people on earth.
They may include statements about environmental sustainability, recycling, energy and water efficiency or impact on animals and the natural environment, for example 'green', 'environmentally safe' or 'fully recycled'. Businesses making these claims must be able to substantiate them.” 6. “High Pressure Sales Tactics- This strategy is used to motivate customers to purchase a good or service that he or she does not want or does not intend to
Background of KFC KFC was formerly known as Kentucky fried chicken and headquartered in Louisville in United States. Founded Colonel Harland Sanders, KFC is known mainly fried chicken, which is usually served in a bucket. KFC is one of the few brands in America that become the rich, decade’s long history of success and innovation. It all started with one cook who created the famous recipe in the world soon to be more than 70 years ago, there are more than 18,000 KFC outlets in 115 countries and territories worldwide (wisnudewobroto, 2016).