Author(s)

Yunting Zhang

Corresponding Author

Yunting Zhang

ABSTRACT

Burberry is a well-known British brand established in 1856. And over a long period of time to expand and to develop domestic and overseas, China is now one of the most major and significant market for the brand as current research reveals. To successfully market their products in such two different cultures in the UK and China, a lot of researches have been done to adjust the brand to suit and to be accepted by consumers holding different culture backgrounds. This report will take a deep research in Burberry’s marketing strategy include positioning strategy, pricing strategy and promotion strategy based on the cultural background and the psychological factors that may affect consumers’ purchasing behaviour. Secondary research is widely used during the research including internal reports and external studies. To get a deep understanding of how cultural and psychological differences affect customers’ purchasing behaviour of luxury goods, Hofstede’s culture model can offer a clear instruction. Opportunity always comes with threat. Due to the huge cultural difference between Britain and China. It also brings challenges to the marketing activities arranged for Chinese markets. According to Hofstede Insights showing in figure 2, the United Kingdom has low power distance, high individualism level, medium to high masculinity, low uncertainty avoidance, medium level of long term orientation and high indulgence. China has high power distance, low individualism level, medium to high masculinity, low uncertainty avoidance, medium long term orientation and high indulgence. As a result, the differences between power distance, individualism and indulgence all have influence on consumers’ psychological behavior based on the analysis of the cross-cultural framework of two countries. United Kingdom tends to be more individualism and have less power distance and high indulgence level while China is more collectivist and high power distance and lower indulgence. Although these two counties have far cultural distance, there are still some shared value that can be took advantage of by the company. The need of conformity, exclusivity and hedonism affect consumers’ acceptance of luxury brands and purchasing intentions.To reposition the brand, it is important to change consumers’ perception from functional to fashion and luxury. Different methods have been applied depending on the cultural and regulative factors in the two countries.

KEYWORDS

Burberry, Marketing activities, Cultural difference, psychological difference, Hofstede cultural model, positioning strategy, pricing strategy, promotion strategy