An Analysis of P&G’s Marketing Strategy in China from the Perspective of Cultural Dimension Theory

罗依 王海燕

【Abstract】P&G is a well-known cosmetics giant company， whose brands have a huge market share and brand loyalty in the Chinese market. P&Gs marketing strategy in China is the key to its success. Through the analysis of P&Gs marketing strategy in China， this paper explores how to make culture a driving force to promote brand development.

【Key words】marketing strategy; cultural dimensions theory; cultural adaptation

【作者簡介】罗依，浙江海洋大学外国语学院商务英语专业学生;王海燕，浙江海洋大学外国语学院讲师，硕士，研究方向：跨文化交际。

1. Cultural Dimensions Theory

After analyzing a large database of employee values scores collected by IBM between1967 and 1973 covering more than 70 countries， Hofstede （1984） developed a model from the initial results and later additions. He identified four primary dimensions for differentiating cultures： power distance， individualism vs. collectivism， masculinity vs. femininity and uncertainty avoidance. Independent research in Hong Kong led Hofstede to add a fifth dimension， long-term orientation. This paper will focus on two aspects of Hofstedes cultural dimensions theory： uncertainty avoidance， and long-term vs. short-term orientation.

Uncertainty avoidance can be defined as “the extent to which the members of a culture feel threatened by uncertain or unknown situations and try to avoid such situations” （Hofstede， 1991： 5）. Cultures of low uncertainty avoidance have less concern about ambiguity and uncertainty and have more tolerance for a variety of opinions. This is reflected in a society that is less rule-oriented， more readily accepts change， and takes more and greater risks. In cultures with high uncertainty avoidance， emotions are displayed in the way that everything different is dangerous. People resist changes and worry about future.

Long-term vs. short-term orientation is the fifth dimension that Hofstede added after the original four to try to distinguish the difference in thinking between the east and west. In a society of long-term orientation， people emphasize the great importance to looking at problems from a pragmatic and long-term perspective， and focus on unremitting efforts to achieve long-term goals. In short-term-oriented societies， people value the past and traditions and always expect to get instant results.

2. P&Gs Marketing Strategy in China

2.1 Product Strategy

Outwardly， China is a country with high uncertainty avoidance. The Chinese do not advocate taking risks and always abide by the rules. For a long time， Chinese people have a firm attitude in the field of morality， showing intolerance for heresy， but in other fields they have shown great magnanimity， and they can accept things outside the traditional moral field even if they are unknown or uncertain. Nowadays， the spirit of innovation and entrepreneurship is more and more advocated in China. Therefore， Chinese consumers show a relatively obvious low uncertainty avoidance and strong curiosity and acceptance of new products.

In response to the curiosity of Chinese consumers， P&G adopt multi-brand strategy to segment products and emphasize innovation and market research to meet customers needs. Respecting customers， P&G has devoted a lot of efforts to product research and development. It hopes to continuously launch excellent products that bring real value to customers， rather than flashy innovations. Every year， huge funds are invested to seek the improvement space for next year and develop innovative products with great potential. Once a product is evaluated as worth developing， P&G will produce it at all costs. Facts show that such patience and perseverance is one of the main reasons why its well-known brands such as Pampers， Pantene remain unshakable. P&Gs investment in research and development have always been beyond the expectation of competitors.

2.2 Price and Public Relation Strategies

China belongs to a long-term oriented society， in which people pay attention to the cultivation of thrifty， and have a high demand for sustainable development and brand loyalty. Consumers like cheap and cheerful goods， and companies with social responsibility usually have better reputation. P&G uses its price and public relation strategies to adapt to Chinese consumers long-term orientation.

Through low-price strategy， P&G successfully coped with the frugality spirit of consumers. “Flexible Family Care Shampoo” series have brought a shock to the whole shampoo industry with the advantages of high quality and low price. This low price strategy helps P&G grasp the market more comprehensively and improves its competitiveness.

P&G promotes its sustainable development strategy and plans for the future with a long-term and pragmatic attitude， so as to conform to the long term concept of Chinese consumers. P&G is working to make social and environmental responsibility an integral component of every brand in its portfolio. It plans to make this happen for the majority of our packaging through a combination of material choice， package design to create innovative solutions for more sustainable products.

In addition， P&G continues to improve its public relations to maintain consumer loyalty. Its measures are mainly reflected in two aspects. The first step is to build even greater trust through transparency around ingredient innovation and safety science. The second step is to make emotional connections with consumers. P&Gs major brands have held many public welfare activities in China， leaving a good brand image for people. In 2018， Crest and the China Youth Development Foundation established the Smile Fund， 10 hope schools， reaching more than 3，300 children， who were taught about oral care.

3. Enlightenment from P&Gs Marketing Strategy in China

In inter-cultural marketing， enterprises should adjust themselves according to the target market and choose the way of cultural adaptation. Inter-cultural marketing research is the practical basis and decision-making basis of inter-cultural marketing. Thus， enterprises should conduct in-depth market research， find out the economic environment， cultural environment and living habits of the target market. According to these market characteristics， they can add unique elements into brand research and development， publicity and sales links in order to create appropriate products.

Referring to P&Gs successful marketing cases in China， it is significant to make a thorough study of the cultural background of consumers and marketing strategies adapting to culture， so as to meet the needs of consumers. Only by digging deep into the cultural factors behind the target market and conscientiously understanding the cultural differences， can enterprises occupy a place in the target market.

References：

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[3]McCarthy， E. J. & Perreault， W. D.. Basic Marketing： A Global Managerial Approach 14/E[M]. Homewood： Irwin Press，2002.