Discuss about the Strategies for Global Business Marketing.
The global brand chosen for the expansion is Cartier. It is a French luxury goods conglomerate company. The company is well known for manufacturing, designing, selling and distributing the jewellery but has been best known for its wristwatches and necklaces. The diamond necklace as “Bestiary” has produced a long sales history to the celebrities and loyalties. Cartier has been headquartered in Paris, France and it serves the royalties all over the world. In addition, it has a wide portfolio of the products of fashion accessories such as leather goods, eyewear, and perfumes, fine objects, women and men watches. Cartier is regarded as the global brand because it is recognized all over the world and its products are ever evolving (Sullivan Mort et al., 2012).
It has evolved from a brand into a lifestyle and has a network of 300 plus boutiques. Global brands are those whose products are recognized all over the world (Alden et al., 2013). On the other hand, the geographical spread of Cartier is fantastic and different shops have been added by the brand in the market of Japan, Middle East, America and Europe. The products of the company are sold and recognized as most valuable brand in almost all parts of the world. It also has a clear demonstration of brand leadership. Cartier is the forefront of the global luxury brand according to the report of Interbrand’s Best Global brand (Au.cartier.com, 2016).
The host country chosen for the expansion of Cartier, is Australia. As per studies, Australian culture is the most diversified in the world. The detailed discussion of culture of Australia is done by using the Hofstede model. The culture of country is measured on six dimension using this model.
Power distance- On this dimension, Australia scores low. The reason for establishing hierarchy within the organization is convenience. Managers are reliable on teams and individual employees for the expertise and superiors are easily accessible. Information between the managers and employees are shared frequently. Communication is participative, direct and informal.
Individualism- Australia is a highly individualistic country and has a score of 90 on this dimension and has a loosely knit society where people are expected to look after themselves and their immediate families. The employees are expected to display initiative and be self-reliant in the business world. Moreover, the decisions to hire and promote the employees are based on evidence or merit of what one is capable of doing or has done.
Masculinity- Australia is considered as a Masculine society and it scores 61 on this dimension. The behaviour of people at work, place and school is based on the shared values that the people should strive to the best they can. The achievements and success in life of the people determines the basis of promotion and hiring decisions at the work place. In case of conflict between the people, the goal is to win and it is resolved at an individual level.
Uncertainty avoidance- Australia’s score is intermediate in this dimension and it scores 51 as per the criteria.
Long-term orientation- In this regard, the culture of Australia is a normative culture. Australia stands at 21 in this dimension. There is a strong concern among the people in the event of establishing the absolute truth. Conversely, the people are normative in their thinking and are exhibiting great respect for their traditions (Vitell et al., 2013). They focus on achieving the quick results and have a relatively small propensity to save for the future.
Indulgence- Australia has a high score of 71 in this dimension. It is regarded as an indulgent country. The people who are classified as highly indulgent are classified by achieving high score depicting the willingness so that their impulses are realized. The Australians exhibit desires about having fun and enjoying life and they have a tendency towards optimism and possess a positive attitude (Venaik et al., 2013). The people place a higher degree of importance on leisure time. People act in a way they are pleased and they spend money as they wish.
Impact of the introduction of the products of Cartier on Australia:
The target market of Cartier are the people who belongs to the luxury sector of the market. These people are the individual who are having the socio economic status and classified at the top end spectrum of wealth. Moreover, the target consumers after launching the products are spending heavily on the famous luxury brand and on authentic items as they intend to enhance their position and image in the society (Xu, 2013).
There are portfolio of products offered by Cartier. For example, Cartier’s watches cost as high as the cost of newly acquired car. Brisbane is the first market in Australia, where Cartier has opened its boutique store. It has also opened its store in Melbourne as well as in Sydney. However, the Brisbane market was ready for accepting the high price jewellery powerhouse as the people are well educated and are willing to spend large amount of money on the fashion accessories (Schlegelmilch, 2016). Cartier would lose lots of money if they miss out opening stores in Australia.
The Brisbane luxury precinct are firmed up as the addition of Cartier store had attracted the high-end retailers. The fashionistas in the market of Brisbane and Sydney have shown an advancement in growing to the introduction of the wide range of products from Cartier. Consumers have also become more sophisticated as result of the introduction of the product such as high-end wristwatches (Au.cartier.com, 2016). This is indicative of the fact that the consumers in the market of Brisbane is becoming more cosmopolitan and fashion conscious. Moreover, the shoppers in the Brisbane market have been crying out for ‘good international global brands’. In addition, introduction of Cartier has made the branded fashion items at their doorstep.
The Cartier jewellery has given the precious stones a power of attraction on women and women accounts for a large part of fair audience in Australia. However the consumers in Australia are becoming increasingly sophisticated and evolving and people are becoming more educated and knowledgeable about the range of watches available withy Cartier (Reebonz Australia, 2016). A new collection that is Sortilege de Cartier attempts to capture the personality, lifestyle and motives and this constitute good psychographic segmentation for the brand.
Marketing of the products of Cartier in Australia:
The marketing of the luxurious products by Cartier would be boosting and enhancing the culture of elite class of Australians because products like watches and jewellery has become a byword for luxury. The charming designs of the products of the brand speaks of excellence and this is the reason that the brand pioneered and gained elite status. Moreover, it depicts an expert blend of passion, valour and sophistication as they should not be missed because they outline the fashion staples of daily outfit. Cartier has marketed its products through the online and social media platform. This has helped in gaining the target market attention. On the other hand, the staging of site on sites like Ice Online boast one of the largest collection of high-end Cartier watches in Australia (Iceonline.com.au, 2016). Customers have been targeted by offering the online discounts on the sales price for the wide variety of timepieces of Cartier. There are few Cartier boutiques opened in Australia.
Luxury brand make use of digital technologies to market their products (Gabrielsson et al., 2012). In Australia, Cartier has enhanced the brand awareness among consumers by making use of internet. The brand distributes its collections through the Cartier boutiques worldwide and collections are sold to the retailers through the authorized dealers. Conversely, Cartier has marketed its jewellery through the online site such as Reebonz, which is the premium destination for buying the Cartier jewellery. This luxury brand has offered up to 70% discount on the stunning jewelleries and other accessories.
Figure: Jewellery by Cartier
(Source: Au.cartier.com. Rings 2016)
The above image is the jewellery collection of Panthere De Cartier. This is an iconic symbol of Cartier and it resembles resilience and elegance which are white or yellow gold and diamonds that are embodied in the tsovarite garnet eyes (Iceonline.com.au, 2016). This sophisticated jewellery is targeting the elegant class of consumers and it makes a versatile statement piece. However, the collections are sold via the online retail as it has its own websites as its distribution channel.
The various distribution channels of Cartier has been able to meet the needs of fashion conscious consumers. Moreover, the people in need of the items of international global brands are provided with the elegant watches, classic watches and many more. This has helped the elite class customers to get the desired products at their doorstep (Yaprak & Cavusgil, 2015).
It is not long time that Cartier has opened its stores in Australia. Moreover, the consumers of Australia has the potentialities and they are driven by the fashion trends. Therefore, Cartier should take the appropriate strategic approach in marketing its collection to experience huge volume of sales.
The report presented above presents the fact that the culture market of Australia has received upliftment and has become more cosmopolitan. This is in light of the introduction of the products by the luxury brands such as Cartier. The responses of people have been quick and adaptive to the changing culture due to the introduction of these classic and sophisticated collections. They have even become increasingly aware of the fashion trends and styles. Hence, they seem more inclined towards buying the jewellery and watches for maintaining the etiquettes of culture.
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