Question

Topic: Student Questions

Gccp And Culture Issues

Posted by Anonymous on 5/22/2008 at 11:35 AM ET 125 Points
Hi - can someone please help me understand the concept of GCCP and how this relates to cultural issues? I need an answer fast :( Thank you for your time!
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  • Posted by Levon on 5/22/2008 at 12:05 PM Member
    What GCCP do you refer to?

    Gateway Congestion Control Policy?
    Global Climate Change Program?
    Group Connect Control Processor?
    Gurps Character Creation Program?
  • Posted on 5/22/2008 at 12:21 PM Author
    global consumer culture positioning
  • Posted on 5/22/2008 at 12:41 PM Accepted
    I "googled" Global Consumer Culture Positioning and had nothing "jump out at me" as the definitive answer to your question. However, you might do the same and see if you can cull the links to find your answer. I did not spend much time digging.

    Good Luck!

    CVN
  • Posted on 5/22/2008 at 12:50 PM Accepted
    Here is some info more on this website:

    https://www.allbusiness.com/specialty-businesses/332715-1.html

    A review of literature on product positioning in the global context indicates that there is not much conceptual or empirical work done directly on product positioning driven by culture. Most writings essentially extend the domestic product positioning concepts and strategies to the international markets. Al Ries and Jack Trout refer to positioning as "not what you do to a product, positioning is what you do to the mind of the prospect. That is, you position the product in the mind of the prospect"(Ries and Trout 2000). Product positioning is the process of establishing the image of a product or service as being unique and different from the competition in the mind of consumers. Most common criteria of positioning are product attribute or characteristics (Aaker 1991). Firms typically identify unique and or special attributes that are desired by the target markets and are communicated to them and position the products or services to meet these expectations (Evans and Berman 2000). Jain summarizes the most common criteria used as the basis for positioning into six major categories. They are positioning by attribute, by price/quality, by use or application, by the type of users, or by product class and by competitors.

    Traditional approaches for positioning have been developed mainly for the domestic markets and do not involve the use of culture as a driver for positioning. Use of culture as a separate and distinct criterion is a valuable tool in formulating product or service positioning strategies, particularly in culturally diverse global markets. It is understandable that in a domestic environment where all competitors as well as consumers belong to the same culture, the strategists may take it for granted. However, this is clearly not valid in a global setting and ignoring culture as a factor in product positioning strategy may become a major cause for blunders.

    Culture is the prism through which consumers perceive or interpret their view of the world and "reflect the sum total of their experience that is projected on to a situation" (Flora and Pierson 1997). It may trigger favorable or unfavorable behavior and can create distinct competitive advantage, if it is used properly. Creating an effective fit requires an understanding of consumer's values that are driven by culture and traditions, particularly for consumer products and services. These products are bought on the basis of whether or not they conform to consumer's cultural traditions and customs. Industrial products, on the other hand, are bought on the basis of technical specifications and utilitarian requirements, without regard to cultural characteristics. Culture emerges as an important criterion in designing consumer product positioning strategies in global markets. The purpose of this paper is to propose why culture can be used as a driving force for designing culturally responsive product positioning strategies and gain competitive advantage in global markets.

    CULTURAL FRAMEWORKS AND POSITIONING STRATEGIES

    In designing culturally responsive product positioning strategies, it is important to use a cultural framework that systematically explains cross-cultural differences and how they can form the foundation for product positioning. The cultural framework assumes additional significance in the consumer markets since they are more significantly affected by cultural influences compared to industrial or business markets. Product features, characteristics and benefits are used as the basis for differentiation and positioning as cultural differences have enduring influence on them.
  • Posted by Levon on 5/22/2008 at 12:54 PM Accepted
    Refers to International Marketing. It's about positioning a product / service in a unique culture or marketplace where certain cultural norms are required. For example if McDonald's opens up a store in India it has to abide by the cultural norms of the Hindu philosophy which is means no beef eating because of the sacredness of the cow. Because of this the company has re-positioned its menu and its products to appeal to the market -- they deleted the beef items and added items like a vegan burger and lamb oriented products. It is about adapting to a marketplaces' unique cultural norms.
  • Posted on 5/22/2008 at 12:55 PM Member
    The main strategic issue at IKEA was the fact that they largely ignored the rule that they needed to tailor the product line. They did this to stick to their founder’s vision of “typically Swedish” products wherever in the world they were going to sell. This strategy proved to work in all other countries except when they entered North America, particularly the United States. I think IKEA trying to stay true to the vision was noteworthy, but they should have definitely followed norm when going global.
    • Prior to its difficulties in the US, IKEA didn’t make specific adaptation when it entered into a new market, but followed always the exactly same strategy than in others countries. Certainly, the brand positioning strategy is global consumer culture positioning, the brand is a symbol of a given global consumer culture, as well as foreign consumer culture positioning, the brand has been built around a specific foreign culture, Swedish culture, with the Swedish names of the furniture, Swedish restaurants, the colors of the Swedish flag, etc. All sold expensive products for delivery up to two months after a customer’s order; companies didn’t lead a strategy of expansion. Nevertheless, IKEA, with its competitive advantage, its size and resources, has changed the global markets: many small furniture retailers have departed, and there is now a trend for growth of larger-scale retailers, and for an increased number of international retailers. The mature markets are recharged firstly, with more competition, more critical strategy (promotion, advertisement, distribution strategy), but IKEA has also changed the consumer behavior. One other strong advantage of IKEA that thrilled the market is also the innovation: IKEA innovates all the time, with always new products, new styles, each year a catalogue where all the products are presented is launched, and the innovation is also for the marketing strategy, tools, with recently TV advertisement in Europe for instance. This strategy allowed IKEA to accumulate experience first, before moving into other markets one after the other. In fact, an adaptation of the strategy of IKEA is obviously necessary, therefore, IKEA needs to conduct extensive a market research, and make use of local expertise.
    IKEA has to follow the strategy of differentiation and the cost leadership, to keep being the leader of the market, and has to be flexible to adapt itself to the market conditions. To reach this flexibility, IKEA can allow local centers to take its own decisions, to be independent, but in the same time, local stores have to keep following the main concept of IKEA to maintain the global brand.A joint undertaking approach could replace Ikeas franchising concept and increase cultural sensitivity and operational controls through the establishment of strategic networks.
  • Posted on 5/22/2008 at 12:56 PM Member
    2. How can wrong assumptions affect profit?

    IKEA entered US market in 1985. Limited success, led to more expansion in 1987. Arrangement for more outlets came from some compromises, namely Europe's standardized product strategy, had to be customized for the US. (Ikea adapted 1/5 of the product range, 45% produced locally in the US). Some service adaptations were also made because American customers hate standing in lines, love next-day delivery, etc. Efficient and modern "Scandinavian" style was still achieved. What is really the central part of the IKEA approach was still maintained through mainly (4/5) across the world accepted product range with local slight adaptations. Many of the locally introduced adaptations were later introduced into other countries' Ikea outlets worldwide, therefore it can be concluded that they were "pilot-tested" in the USA but afterward widely accepted. IKEA eventually customized their products to represent North American tastes, which entailed making the bedroom chest drawers deeper, selling king and queen-sized beds, and redesigning the kitchen furniture and kitchenware. Once they deepened the drawers on the bedroom chests, sales immediately increased by 30-40%.So,the profit was affected positively despite the minor adaptation of their original approach.
  • Posted on 5/22/2008 at 12:56 PM Member
    3. What market analysis can help avoid mistakes?

    Market analysis can take two different forms. First, it is a method used by investors to look at the market and try to determine whether it is going up or down, in order to make investment decisions. Second, it is a field used by marketers to analyze the target market of their clients and determine the best courses of action to take to improve sales and profitability. Although the furniture industry may not be as dynamic as the IT industry, simple analyses of even a small market. Therefore, we can deduce from this that IKEA sells furniture and home accessories 'for the wise but not for the rich'. The only areas they need to focus on are the emerging segment of fashionable teens that have grown up with IKEA products, are mainly dependent on their income and place of origin as majority of the population are expatriates. The purpose of a market analysis is to decide the good looks of a market and to recognize its growing opportunities and threats as they relay to the strengths and weaknesses of the firm. There are several dimensions of a market analysis which are: Market size (current and future), Market growth rate, Market profitability, Industry cost structure, Distribution channels, Market trends and Key success factors. So, in the case of IKEA, first of all Market Size can be evaluated based on present sales and on potential sales ,and the market size can be determined by government data ,trade associations ,financial data from major players or by customer surveys. Secondly, the Market growth rate, IKEA can forecast their market growth rate by demographic information and sales growth in complementary products, and when there is an important inflection points in the market growth rate it can be predicted by constructing a product diffusion curve. Also, IKEA must be aware of the; price pressure caused by competition, a decrease in brand loyalty, the emergence of substitute products, market saturation, and the lack of growth drivers; to avoid declining. Thirdly, Market Profitability, there are five factors that influence the market profitability that IKEA must take into account, which are: Buyer power, Supplier power, Barriers to entry, Threat of substitute products, and Rivalry among firms in the industry. Fourthly, Industry cost structure, cost structure is helpful for formulating strategies to develop a competitive advantage. Fifthly, Distribution Channels, IKEA must take into account these following aspects of the distribution system: Existing distribution channels, Channel power structure, Trends and emerging channels. Then, Market Trends, IKEA must be aware of the Changes in the market because they often are the source of new opportunities and threats. The relevant trends are industry dependent. Finally, Key success factors, they are necessary in order for IKEA to achieve its marketing objectives, and some of these factors include: Access to essential unique resources, Ability to achieve economies of scale, Access to distribution channels and Technological progress. It is important to consider that key success factors may change over time, especially as the product progresses through its life cycle.
    The analysis focuses on two aspects of Ikea's marketing mix: channels and promotion. Greater emphasis is given to promotion, both because of the greater availability of information, and because of the company's innovations in this area. In conclusion we realized that Ikea's success built on a global marketing strategy which combines product standardization with locally-based advertising and promotion.
  • Posted on 5/23/2008 at 3:58 AM Author
    Dear W.M.M.A..
    Im not sure which is the correct way to answer you so you dont get offended. You dont know who i am, where im studying, or why ive posed the question. All i can tell you is that, the answers ive been given, i already know. I'm not going to say anything else to you, because you've obviously got issues going on. When you resolve them, and behave like an adult, then we can talk again. Thank you for your mature and respected response.
    Nicole
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