Case Study The Mars Company Marketing Essay

1.0 Introduction

This essay is to analyse an international company and The Mars saloon as a merchandise is chosen. It is a monolithic cocoa mill in the United Kingdom. Besides, I would wish to take UK and China to carry on a cross-cultural analysis to develop an apprehension of the societal and cultural differences between these two states.

1.1 About The MARS

The MARS saloon is a chocolate saloon manufactured in the United Kingdom. Frank C MARS gives his boy, Forrest, $ 50,000 and the expression for ‘Milky Way ‘ to travel to the UK and get down his ain concern, MARS Limited. The first MARS bars were handmade in August Bank Holiday Monday in 1932. During the war old ages, MARS bars were allocated to military personnels in the UK and to captives of war in Germany in 1935. MARS does its spot and continues to be manufactured and distributed for the Armed Forces rations when World War 2 Sweet rationing introduced in 1940-5. When confectionery rationing was lifted, 7,000 MARS bars were sent to Dr. Barnardo ‘s kids ‘s places in 1953. The MARS became popular and worldwide ; they sponsored the Football World Cup in 1990, Olympic Games in 1992 and the World Cup in USA in 1994 etc. The MARS produced new merchandises, such as ice pick and bottled drink. MARS bars in the UK are renamed ‘Believe ‘ bars on battalion as a gesture of support for the England football squad for the continuance of the World Cup in 2006. ( hypertext transfer protocol: //marsbar.com/ )

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1.2 States

The MARS Company has been really successful in the United Kingdom. As the international market analyst for the MARS, it is considered the following measure of introduce the MARS concern to another state that has a growing of economic system, fiscal and concern.

China would be a really good pick of introduce the concern from the UK. The population growing of the World ‘s largest state is China ; it has merely over 1.3 billion people. As the universe ‘s population is about 6.7 billion, China represents a full 20 % of the universe ‘s population so one in every five people on the planet is a occupant of China. Besides, it is developing better and better. Peoples spend money in China now and the currency is lifting, it means the economic system is bettering. As we know, Beijing and Shanghai are the most develop countries in China. ( hypertext transfer protocol: //geography.about.com/od/populationgeography/a/chinapopulation.htm )

There are illustrations of European companies have developed their concern in China. E.g. H & A ; M ‘s first shop was opened in Sweden in 1947. H & A ; M has expanded well in recent old ages throughout other countries. There were two shops opened spring 2007 in high disbursement Shanghai in China. Both shops are full construct shops in the best concern location. ( hypertext transfer protocol: //www.hm.com/us/abouthm/theworldofhm/asia/china__worldofhm_countrycode_cn.nhtml )

2.0 Context of cross-cultural relationships

Hall ( 1976 ) defined linguistic communication as the most of import constituent of civilization. And one civilization will be different from another if it understands and communicates in different manner. Cultures vary in the extent to which communicating is influenced by context. High Context and Low Context defined as in footings of how persons and the society acquire information and cognition. ( Hall 1976 ) ( International Marketing Strategy, Frank Bradley, Fifth Edition, 2005 )

2.1 Low Context Culture

Low context significance comes from spoken and written linguistic communications by transporting the information in communications.

2.2 High Context Culture

High context significance is internalized by the person. The societal importance is taken into study by the message receiving system in the high context civilizations.

By utilizing context as the foundation Bush and Ingram ( 1996 ) develop a model that captures the general comparative features of civilization which may be applied to international selling in high and low context. Table as below:

Characteristic

Low context

High context

Communication and linguistic communication

Explicit, direct

Implicit, indirect

Sense of ego and infinite

Informal handshakings

Formal clinchs, bows and handshakings

Dress and visual aspect

Dress for single success, broad assortment

Indication of place in society, spiritual regulation

Food and feeding wonts

Eating is a necessity, fast nutrient

Eating is a societal event

Time consciousness

Linear, exact, promptitude is valued, clip – money

Elastic, comparative, clip spent on enjoyment, clip – relationships

Family and friends

Nuclear household, self-oriented, value young person

Extended household, other oriented, trueness and duty, regard for old age

Valuess and norms

Independence, confrontation and struggle

Group conformance, harmoniousness

Beliefs and attitudes

Classless, challenge authorization, persons control fate, gender equality

Hierarchical, regard for authorization, persons accept fate, gender functions

Cognitive manner

Linear, logical, consecutive, job resolution

Lateral, holistic, coincident, accepting life ‘s troubles

Work wonts

Undertaking oriented, wagess based on accomplishment, work has value

Relationship oriented, wagess based on senior status, work is a necessity

The construct of context is valid in understanding the behavior of clients in different states and in covering with all signifiers of dialogue affecting companies in these states. ( International Marketing Strategy, Frank Bradley, Fifth Edition, 2005 )

2.3 Hofstede Cultural Dimensions

Geert Hofstede had experience to work relates differences in plants or concerns entree to different states and civilizations. Hofstede ‘s research gives us penetrations into other civilizations so that we can be more utile when interacting with people in other states. He identified four dimensions to back up cross civilizations concern: Individuality ( IDV ) , Power Distance Index ( PDI ) , Masculinity ( MAS ) and Uncertainty Avoidance Index ( UAI ) . Hofstede believed these are the cardinal points for assist cross civilizations in concerns. ( www.geert-hofstede.com/ )

Individualism ( IDV )

Individuality refers to the grade which persons are integrated into groups. Some societies which ties between persons are loose. Everyone expression out for their ain involvement and their immediate household in high single society. Besides, we look for societies which are integrated strong by people from birth onwards, cohesive in groups and drawn-out households which carry on supporting them in exchange for absolute trueness.

Power Distance Index ( PDI )

“ That is the extent to which the less powerful members of organisations and establishments ( like the household ) accept and expect that power is distributed unevenly. ” ( www.geert-hofstede.com/ ) Power Distance Index ( PDI ) has involved in which societies trade with power and inequality. Power is focused at the top of the ladder in high power distance societies. And employees in the company experience equality in a low power distance societies.

Masculinity ( MAS )

It refers to the distribution of functions between the genders which is another cardinal issue for any society to which a scope of solutions are found. The surveies show “ Women ‘s values differ less among societies than work forces ‘s value in the masculine society. Men ‘s values from one state to another contain a dimension from really self-asserting and competitory and maximally different from adult females ‘s values on the one side, to modest and lovingness and similar to adult females ‘s values on the other. ” ( www.geert-hofstede.com/ )

Uncertainty Avoidance Index ( UAI )

UAI trades with a society ‘s tolerance for uncertainly and ambiguity. Peoples in uncertainly avoiding states are besides more emotional, and motivated by inner nervous energy. For uncertainly accepting civilizations are more tolerant of sentiments different from what they are used to ; they try to hold as few regulations as possible. ( www.geert-hofstede.com/ )

2.4 Culture/Communication Typologies

Four verbal communicating typologies were suggested by Gudykunst and Ting-Toomey ( 1988 ) which can be used as a basic for cross-cultural analysis. These are Direct Vs Indirect, Elaborative Vs Succinct, Personal Vs Contextual and Instrumental Vs Affective.

( International Marketing Strategy, Analysis, development and execution, Fourth Edition, ISOBEL DOOLE AND ROBIN LOWE, 2004, Reprinted 2005 )

Direct Vs Indirect – refers to the explicitness of the verbal message of a civilization. The Chinese usage the indirect manner, frequently concealing their existent feelings and concerned the feelings of others by harmoniousness with groups. It related to Hall ‘s high context civilization and Hofstede ‘s corporate dimension.

Elaborative Vs Succinct – reflects the measure of talk that people feel comfy with in a peculiar civilization. The measure of talk is comparatively low by the succinct manner which reflects high uncertainness turning away and a high context civilization. The Elaborative manners normally would be used more in low context civilizations where the spoken linguistic communication is of greater importance such as U.S.

Personal Vs Contextual – Contextual manner focuses on the function of the talker and the function of relationships. The function and hierarchal relationship of the parties in conversation will be reflected in the signifier of reference and words that are used. It reflects high power distance, Bolshevism and high context civilizations. E.g. Japan.

Instrumental Vs Affective – Affectional manner is procedure orientated which concern either the talker or receiving system will be put in an uncomfortable place. The talker besides listens to and closely observes the receiving system in order to construe how the message is being taken. It reflects the high context and corporate civilization such as South East Asia.

( International Marketing Strategy, Analysis, development and execution, Fourth Edition, ISOBEL DOOLE AND ROBIN LOWE, 2004, Reprinted 2005 )

2.41 Cross-cultural/diffusion and acquisition matrix

In International Marketing Strategy, Wills et Al ( 1991 ) defined the cross-cultural analysis theoretical account analyzing the relationships between the context of a civilization and the rate of diffusion of new merchandises. The rate of larning will impact on the rate of diffusion so by comparing the diffusion rate to whether a civilization is high or low context.

High Context or Fast Diffusion: South East Asia and Japan

High Context or Slow Diffusion: India and Asia

Low Context or Fast Diffusion: Scandinavia, USA and Canada

Low Context or Slow Diffusion: UK and Eastern Europe

3.0 Cross-cultural analysis

To compare a state to another, we normally compare by civilization because different civilization represent different country. In this instance, we compare China ( Eastern ) to the United Kingdom ( Western ) . The first difference came up into my head is the “ Languages ” such as Chinese ( Mandarin or Cantonese ) and English. China is a communism state and UK is a capitalist economy state. The manner that both authoritiess work is wholly different ; this is one of the illustrations of the differences between two different states.

( hypertext transfer protocol: //www.1000ventures.com/business_guide/crosscuttings/cultures_east-west-phylosophy.html )

4.0 Social and Culture Factors

4.1 Religion

China is a state with a great diverseness of spiritual beliefs. The chief faiths are Buddhism, Taoism, Islam, Catholicism and Protestantism. There are over 100 million followings of assorted religions, more than 85,000 sites for spiritual activities, some 300,000 clergy and over 3,000 spiritual organisations throughout China. ( hypertext transfer protocol: //chineseculture.about.com/library/china/whitepaper/blsreligion.htm )

As we can see the power of faith is really large in China. To win the usage in China, we truly necessitate to see the manner for our merchandise to entree the Chinese clients by some sort of spiritual schools or activities.

4.2 Language

The chief linguistic communication is Chinese ( Mandarin and Cantonese ) . English is used widely in some well developed countries such as Beijing and Shanghai. It is really of import to non to misconstrue or lose involvement of the words when interpreting the information of the merchandise from English to Chinese. Besides, Chinese became the largest linguistic communication in the universe ( International Language ) because of the population in China. Besides, the Chinese civilization is high context which interpret more of the elements environing the message to develop their apprehension of the message.

4.3 Education

The Education in China is increasing higher and higher now. The Chinese authorities provides primary instruction for six old ages and follows by secondary instruction for six to seven old ages. The per centum of China ‘s college-age population in higher instruction has increased from 1.4 % in 1978 to approximately 20 % in 2005. For us to distribute around our merchandise, it would be a really good chance to get down in the schools or colleges. Particularly, the population in China is really high. ( http: //www.index-china.com/index-english/education-s.htm )

4.4 Valuess and Attitude

Family is the first precedence in the Chinese civilization valued higher than single awards ; the Chinese truly bask the warm of the household. Particularly the young person ‘s educate and wellness, they are of import in the Chinese ‘s head. The MARS has to see carefully about the valued held in China with a big populations when the packaging is ready to establish in the market. E.g. Family pictures basking the felicity or words represent a warm household on the bundle.

4.5 Technology

China has a high degree of engineering presents. China could be a big provider of engineering in the universe as we notice that tonss of our electrical devices in Europe are made in China. Most household has computing machines and telecastings in China, besides most people have at least one Mobile phone no affair grownup or adolescents. The MARS would be easy promoted by the broad engineering with commercials in Television. Besides, cyberspace has become really popular in recent old ages. Rather than publicity, clients can seek for information about our company really easy. We can cover with client ‘s petitions or orders by cyberspace and electronic mail which is a batch quicker than replying phone calls or by mail.

4.6 Economy

The Chinese economic system grew 9.9 % in 2008, and 11.9 % in 2007. The economic system of China is quickly developing and influential market economic system. China is the 3rd largest economic system in the universe after United State and Japan with a nominal GDP of US $ 4.4 trillion ( 2008 ) when measured in exchange-rate footings. It is an ideal topographic point for us to present MARS to the Chinese market.

( hypertext transfer protocol: //www.economywatch.com/world_economy/china/ )

4.7 Aestheticss

Aestheticss covers the local civilization ‘s perceptual experience of things such as beauty, good gustatory sensation and design and dictates acceptable to the local civilization. Mars needs to guarantee that usage of coloring material and trade name names in the merchandise and communications schemes is sympathetic and acceptable to the Chinese civilization. E.g. Red is the color represent celebrate and felicity in the Chinese civilization. The background coloring material of the nuptials is ruddy in China unlike the Western civilization. ( International Marketing Strategy, Analysis, development and execution, Fourth Edition, ISOBEL DOOLE AND ROBIN LOWE, 2004, Reprinted 2005 )

5.0 Strategies Implications on marketing mix

To go a successful company, understanding the selling mix with seven P ‘s is really of import. In this instance, selling mix is applied with some thoughts of MARS presenting to the China market. The seven P ‘s are Product, Promotion, Price, Place, People, Process and Physical grounds.

5.1 Merchandise

The international merchandise life rhythm can be used that the Mars Bar can hold back-to-back ‘lines ‘ in different states. Product portfolio analysis such as the Boston Consulting Group ‘s Growth Share Matrix can take the Mars oversees its market growing in China.

Constructing a strong trade name besides is important which it can give certain values to consumers and construct up a relationship with consumers. Therefore, positioning is concerned in order to distinguish from the competition, for illustration, what is the difference between DOVE and the Mars Bar.

It is better to cognize the clients ‘ demands before measuring the schemes deductions of MARS cocoa. Chocolate is something you can eat and gustatory sensation, so it is of import for us to understand the Chinese client ‘s gustatory sensation of cocoa in the market.

Chinese people considered cocoa are something sweet and brown that you can set into your oral cavity in the yesteryear. They realize that cocoa can stand for more than merely serpents and stylish mixtures. Foreign chocolate trade names such as Dove, Cadbury and Hershey ‘s have captured about 70 % in the Chinese cocoa market now. And milk cocoa is the Chinese client ‘s favorite spirit ; there were 38 % of value gross revenues of cocoa in 2007.

( hypertext transfer protocol: //ezinearticles.com/ ? Chinas-Chocolate-Market-Dominated-by-Foreign-Brands & A ; id=1013918 ) ( hypertext transfer protocol: //www.china.org.cn/business/2008-09/16/content_16461850.htm )

We understand more about their gustatory sensation from this research now. MARS cocoa saloon has a milklike version like “ Milky Way ” , I am certain that we can convey this merchandise to the Chinese cocoa market and it should be successful.

5.2 Promotion

The Mars Bar has to avoid an incompatibility in the messages conveyed to clients from different states and civilizations. Its company should hold consistent manners of presentation of trade name and merchandise image which would non baffled clients. Furthermore, the Mars Bar should hold a sufficient coordination of messages, such as imperativeness release or advertisement runs.

Gross saless publicities can be used in a assortment of ways to add value to the sale and are peculiarly effectual. To advance MARS cocoa, the common tools are ever work for that such as advertizement in Television, magazine, schools and internet etc. we can besides keep an event in the shopping promenade in great developed country such as Beijing and Shanghai to allow people cognize MARS chocolate saloon is available in China now. Particular offers or money-off verifiers are utile for publicity every bit good. Peoples ever captured by words like “ Buy one get one free. ” Or “ 30 % off. ” Etc. The packaging of the cocoa saloon is of import excessively. We know household is the first precedence for most of the Chinese people and ruddy is the color brings felicity to them. We could see about these points into the cocoa market in China and make a great image of MARS to everyone in China.

5.3 Monetary value

The monetary value of the MARS cocoa saloon is valuable in the UK market. The currency is different from the UK and China, and besides the income for a regular Chinese is different when comparing to the UK. The monetary value in the UK is approximately about 40-60p, depends where the clients buy it from. A local store and nutrient machine could be a different monetary value. Although 60p per cocoa saloon is rather valuable, it is of import that everyone including pupil could afford for it. The currency rate from British lbs sterling exchange to Chinese kwai ( RMB ) is 11.1604, 1.00 lbs equal to 11.16 RMB. Therefore, 60p is equal to 6.65 RMB.

I think monetary value reduces is necessary in this instance because it is rather expensive for a cocoa saloon in China, people might non travel for it. I think we need to maintain the valuable theory for MARS even in different states non merely China.

( hypertext transfer protocol: //www.expedia.co.uk/pub/agent.dll )

5.4 Topographic point

Topographic point for the merchandise is something we need to see carefully because it is associating to the mark clients. Topographic points such as local stores, nutrient machines, schools, supermarkets and gasoline Stationss are the chief topographic points for our merchandise to launch. Our mark clients could be grownups ; the chief marks are kids, adolescents and pupils. Students normally buy serpents in school during interruption and tiffin clip, so schools are the most popular topographic point for us to see about our merchandise. Students can distribute this repute of MARS to others, such as schoolmate, instructors, parents and neighbors

5.5 Peoples

Consumers must be educated in order for their outlooks of the service to be managed and employees must be motivated and good trained in order to guarantee that high criterions of service are maintained. China has a slow diffusion civilization, high quality of staffs and proper preparation is truly necessary. Different civilization wants different staff. E.g. the bulk of people in the UK are relaxed at most of the clip and Sunday must be a vacation for everyone in the UK. Peoples in China are really first-come-first-serve and the period of working is really long ( 10 to 12 hours a twenty-four hours ) . As we can see the illustrations, we can non utilize the UK preparation method in China whenever the staff preparation is active for MARS. The velocity of service and the long queuing jobs are what we have to see carefully in China. ( International Marketing Strategy, Analysis, development and execution, Fourth Edition, ISOBEL DOOLE AND ROBIN LOWE, 2004, Reprinted 2005 )

5.6 Procedure

A successful service is dependent on the entire client experience a well-designed method of bringing is indispensable. Customer outlooks of procedure criterions vary with different civilizations and standardization is hard in many varied contexts. A smooth procedure of service is needed in a civilization like China with a big population and the velocity they require.

5.7 Physical Evidence

Physical grounds is the direct centripetal experience of a merchandise or service that allows a client to mensurate whether he or she has received value. Examples might include the manner a client is treated by a staff member, or the length of clip a client has to wait, or a cover missive from an insurance company, or the environment in which a merchandise or service is delivered. MARS cocoa saloon besides contains paper packaging or cyberspace pages websites which users can see.

( International Marketing Strategy, Analysis, development and execution, Fourth Edition, ISOBEL DOOLE AND ROBIN LOWE, 2004, Reprinted 2005 )

6.0 Standardisation V. Adaptation

Levitt ( 1983 ) studied a argument on standardization vs. version. Harmonizing to his survey, sellers and consumers become more similar at an accelerated topographic point, taking to meeting universe markets and asking a standardise attack.

Sorenson and Wiechmann ( 1975, P. 54 ) screen summarize that is “ to the successful multinationals, it is non truly of import whether selling plans are internationally standardised or differentiated ; the of import thing is the procedure through which these plans are developed is standardised. ”

In order to come in China ‘s confectionary market, Mars can look on Meyer and Romans ‘ institutional theory, which identify the thought that societies use force per unit areas for establishments understanding to legitimised managerial modus operandis and criterions and it can restrain resource allotment determination and scheme choice. In this theory, Mars with its standardization could take to increased legitimacy for central offices in its international markets, which would take to higher degrees of motives among local directors to accept and utilize deployed cognition. For the version, Mars could take to increased legitimacy of the foreign arm of the company in its central offices and it would probably heighten director ‘s motive to listen to their foreign opposite numbers. Its everyday and features are forced by both national civilizations. Therefore, Mars may necessitate to develop modus operandis and features that fit the culturally different markets together in which they operate. However, under these fortunes, directors can non cognize in progress which features are critical competitory advantages.

Leung et Al. ( 2005, P. 361 ) province fit theory that “ Most existing theoretical accounts of civilization and work behaviour assume cultural stableness and stress the tantrum between a give civilization and certain managerial and motive patterns. ” Mars should hold a high tantrum to a given civilization and regains high degree of version of direction procedure, which will take to high organizational effectivity. Besides, it is of import to hold a high degree of designation of foreign representations ‘ forces with their local civilization in China.

Griffith, Hu, and Ryans ( 2000 ) assume that standardization would be the preferable option for procedure features is the fit theory. However, they argue that standardization of procedure should be used when pass oning companies come from what they term as the same cultural type, which refers to civilizations with similar beware struggles of the civilizations and avoids to misdirect consumers in China.

In short, obtaining and keeping local legitimacy is critical to Mars in all markets.

7.0 Sponsorship

Sponsorship is one of the promotional tools to allow people to cognize more about the trade name. As we can see from the telecasting, there are tonss of events, organisations or nines have been sponsored by some companies. Such as, Arsenal Football Club has sponsored by Emirates Airline. Arsenal is a large worldwide football nine in England and protagonists everyplace in the universe ; Therefore, Emirates distributing its trade name by utilizing the success of Arsenal FC. From this instance, we can believe of patron to some events or nines in the hereafter in China. Example as follows:

Marss can be the sponsorship of an event of a new PlayStation 3 game in China. E.g. ProEvolution Soccer 2011. This football game is really popular now ; everyone is waiting for the new version to establish in the market. MARS can utilize this chance to distribute the trade name to the audience of the event or people who walk pass the event.

8.0 Market entry scheme

The major inquiries in foreign market scheme be aftering concern how Mars is traveling to turn up, monetary value, sell, deliver, service merchandise, and cod money: Mars has already distributed trade names such as Dove cocoa bars, M & A ; M ‘s cocoa, SNICKER cocoa bars, SKITTLES confect, WHISKAS cat nutrient and PEDIGREE Canis familiaris nutrient. However, Mars does non sell Marss bars in China, and Mars can utilize same distribution channels of the above trade names to sell Marss bars. The company can utilize direct exportation ( see Appendix ) . Besides, Mars could utilize indirect distribution channels ( see Appendix ) , which are less expensive in the early phases of exporting due to the foreign market incursion cost is borne straight by intermediary and the intermediary may bring forth greater net incomes than Red planets.

For the direct distributions, it gives a greater start up costs but Mars may additions advantages to place more about the Chinese market place and Chinese demands for the merchandise. The issue of market control must be considered. Although Mars may construct up a pleasant relationship with its distributers, Mars should be cognizant and retain more control over the merchandise ( Mars Bars ) .

Indirect export selling:

Export Management Company ( EMC ) requires solely agreement and few old ages contract from Mars since the merchandise will take long clip to accomplish its net income.

Direct export selling:

A foreign based gross revenues representative operates less hazard and costs by subscribing an understanding with Mars. It may be positive for Mars to hold same gross revenues representative in China, which the committee is greater for the representative and guarantee the new merchandise will non travel incorrect with its distribution.

9.0 Evaluation

In this study, I talked about the cross-cultural concern. Bringing a concern from the United Kingdom to China, which has a really large different of civilization. I suggested some thoughts for this action, and I think it can make the successful line. I learnt a batch about how a steadfast entree from a state to another state.

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