How Culture Can Influences International Business Strategy Marketing Essay

1975 words (8 pages) Essay in Marketing

5/12/16 Marketing Reference this

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In 1909, LOreal is established by a French chemist named Eugene Schueller and nowadays become the worlds biggest cosmetics and beauty Products Company in the whole world.(L’ Oreal) With more than 100 years of proficiency in cosmetics, This Company operates over 130 countries like Asia, America, East and West Europe through 25 international brands around the world and 649 patents .The company’s production concentrating on hair colours, skin care, perfumes and fragrances, make up and styling products etc. L’Oreal mostly emphasized the establishment of a strong consumer relationships, lifestyle and philosophy of the company products in order to provide consumers with more satisfaction. L’Oreal product not only to women, but the company also offer beauty product to men is become trends of fashion on worldwide. The brands of the company are grouped by the particular markets like mass, professional brands, luxury products and active cosmetics which more easy to determine their major product by a lot of brands.

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Culture has many different meaning. According to Tylor, E. (1871 ) refer culture as “that complex whole which includes knowledge, belief, art, law, morals, custom, and any other capabilities and habits acquired by man as a member of society.” (Tylor, 1920) Culture is the collective programming of the human being which distinguishes by a group of people in the course of generations through individual and group striving. (Hofstede, G. 1984) In additional, other social scientists view culture include of the symbolic, concept, knowledge, experience, beliefs, values, meanings, religion, notions of time, roles, spatial relations, concepts of the universe, and intangible aspects of human societies. Culture is an important sector of social and human behave , which help human being to establish identity and self-esteem, promote economic growth and encourage people participate politic and ownership. the mainstreaming sense of culture is defined by the particular values, traditions and patterns of behaviour that need to be considered when working with other environment . In Fact, culture is a set of components that shared by groups of people around the world. From one country to another, human beings have developed different types of symbolic, aesthetic expression, beliefs and codes of conduct can be difficult for foreigners to understand. From a commercial point of view, companies must adapt to the culture of each country when they want to have business in. Due to the cultural differences between countries it may affect company decision making when foreigner weren’t accepted. So companies need to adjust their products and services before they enter to the particular market. this will enable to help company to created and developed new strategic to adapt the culture different between the environment.

Firstly, product packaging can influences on the aspect of culture. To investigate how L’Oreal adapts different countries culture on product packing to understanding how culture can influence a company decision making (L’Oreal Annual Report 2010). By compare nations’ culture associate different meaning with colours and preferences that show packaging of a product would affect consumer’s decision making (Madden et al, 2000). Between that, L’Oreal is a cosmetic beauty industry that consumer are favour on colour of their product in the market. However, the culture in different country that human being is will affect consumer to making choice. L’Oreal adopts different product mix for different countries. L’Oreal also uses CRM (Consumer Reply Management), in order to get more knowledge about customers. Such as products packaging in North Europe and Asia are lighter in colour. Example like compare the colour of lipstick between USA and Japan that found out Japan consumer prefer lighter colour than USA consumer. In the result of observers compare between Japan and American that Japan had greater relative preference for light colours rating, which mean Japanese like less than the American warm colour but not cold colour. Some gender effects were similar in the two cultures which males in both cultures tended to prefer saturated colours more than females, whereas females in both cultures tended to prefer desaturated colors more than males. ( Fushikida, W., Schloss, K., Yokosawa, K., Palmer, S.2009) In additional, Japan consumers are willing to concern about packing along with the aesthetic of a product. Even small defects may result in the rejection of the product which equally important is the size and design standards.

However, the languages of product packaging as one of the role of culture that effect of L’Oreal participate in different country. According to Edward S. (1884-1939) refer language as “The power of language to reflect culture and influence thinking”. In order word the differentiate languages willing bring issue to company provide information to consumers. As research from L’Oreal product in different country that can seen languages is very important for product packaging. That mean L’Oreal printed domestic language in product packaging at particular country. Example in Korea’s L’Oreal product is printed their language that Korea consumer more suitable and realizable on their own languages. This is because if product information only provides on English that particular consumer from Korea which did not understanding the meaning of language that makes them may not confident to purchase, even the Brand is famous in the market. Even thought, L’Oreal had provided different languages on their own website to service consumer. Moreover, product packaging is very important for L’Oreal to avoid provide misunderstand information when consumer seen the product. Therefore product packaging is one of the elements of culture that can be effect company to overview their strategy decision making.

Secondly, consumer behaviour can be one of the elements influence on the aspect of culture. Consumer behaviour is basically about the attitudes, decisions making, and actions of individuals as overall consumers in the marketplace. The study of consumer behaviour is rooted in the host domain social and behavioural sciences, such as anthropology, psychology, sociology, economics, history, social psychology, marketing and management. Explain and predict consumer behaviour which can be very challenging, it becomes more global business compared with the national or regional market. This is because the planning and implementation of marketing must be a profound understanding of consumer motivations and expectations along the many cognitive, emotional and behavioural dimensions, so this can be significantly different across national boundaries, taking into account consumer behaviour is influenced by cultural, economic and social impacts. Understanding the extent of consumer deliberation in decision processes is to determine the degree of consumer consideration in the decision-making process.( Consumer Behaviour’ 2009) The different countries consumers have specific purchasing behaviour that influences differentiate culture that L’Oreal has to analysis it out. To evaluate the consumer behaviour in Japanese behaviour that found out they are more reluctant to product from outside. In other word Japanese do not accept product which are from outside Japan that are not made in Japan. Hence, L’ Oreal Paris established a new laboratory in Japan that helps them to analysis and cope up with this aspect of culture Japanese culture. Nevertheless Japanese market is difficult to predict which L’Oreal had failure of the Moisture Whip lipstick past experience. Trend of cosmetic are unpredictable in Japan sweeping the country in a matter of weeks. So L’Oreal creates a science designed for Asian hair and skin, as they have done for African products brand. Therefore, L’Oreal used past experience as example to avoid failure to meet consumers’ culture and development product to meet Japanese needs and wants. In fact, Japanese culture is straight forward on discipline and rules that they like to buy a quality goods compare to China. In China culture consumer more confident to international product than domestic product. Because of their local cosmetic product technology is not secure and given confident to consumer. Indeed, L’Oreal Paris represented as professional and advanced research and development technology on cosmetic. Moreover, L’Oreal Paris positions itself as an accessible luxury brand. However China consumers’ culture is willing to buy luxury product that with strong brand image company product. In year 2004 L’ Oreal acquired Yue-Sai cosmetic brand which use herds as material in its product to adapt china domestic culture that Chinese beliefs herb better than chemical materials(Liza Lin, 2011). Therefore, consumer behaviour as one of the element of culture that L’Oreal should research and understanding since they decided offer product in particular country.( Carroll A, M 2005) As a result L’Oreal discover that they should offer different various type of product to domestic consumers stratify their needs and wants as expectation by knowing particular culture. Because of Japanese unique taste on product they have to create something different compare to China.

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Third, product offer is one of the elements culture influences on the aspect. Product offering refer to products and service determined its features, advantages and benefits to achieve consumers’ needs and wants. By identity business in the marketplace current situation that L’Oreal enables to meet global consumer’s values of high quality product with developed and innovated technology and knowledge. It is because L’Oreal cannot achieve consumer needs and wants that particular company may face failure in their business which consumer would not purchased on particular product. L’Oreal had put Sun Protection Factor for women in Asian countries to be safe guarded from the sun in those Asian woman want pure white beauty skin protect damage from the sun. In western culture, European they willing like sunbathing and realise the brown colour skin as healthy image. Because of the weather in Europe L’Oreal distribute various type of lotion which different ingredient to protect their skin care when weather become dry and cool. L’Oreal is global distribution their product base on the particular country’s culture and values that innovation most suitable product in domestic area. So, product of L’Oreal will have different product offer in particular country that to adapt the consumer culture (L’Oreal, India). In India, L’Oreal offer a special product which is Maybelline’s Colossal Kajal, an eyeliner that combine the best of traditional and modern makeup that to meet up Indian women desirable in the marketplace. Kajal had been used for generations by Indian women to darken the edge of their eyes which normal eyeliner from Paris could not match particular consumer desire on their expected. Maybelline’s Colossal Kajal is pen-like. So Indian women is no required to dip fingers in a pot of kohl and its strongest claim is its promise to stay smudge-free for up to six hours. L’Oreal analyse the issue of modem Indian women which identified gaps in the eyeliner’s ability to meet the needs and created a new product that replace to Kajal’s traditional use in their daily routine. Therefore, L’Oreal India innovated new strategy is success and analyse culture adaption. The company’s more concentrate approach could provide L’Oreal with the knowledge and local understanding that could allow the company to better serve the consumers.

Conclusion, culture is really important for organisation to determine before they business globalise with learning as much as possible. Company is avoiding the international strategy failure that they would evaluate and solve the problem as soon as possible in the competitive environment in the marketplace. In fact, above of three elements aspect of culture as product packaging, consumer behaviour and product offering could affect company strategic fail in the future. By particular fault to determine international strategy without analyse culture behave in the specific country will make loss and damage people beliefs and value of the product that would spend a lot of expenses to gain back consumer purchase back. Beside, product offer to specific country is determine on particular country consumer behave needs and wants which more stratify their desirable. So, organisation should attention and sensitivity about the culture will bring affect when they making decision of strategy to develop business internationally.

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