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UNYP Elearning UNIVERSITY OF NEW YORK IN PRAGUE European Business Administration Analysis and Comparison of the Marketing Strategy of Vogue Fashion Magazine in the Russian Federation and China by Karina Akhmedbekova 2018 Mentor: William Pattison Statement declaration I, Karina Akhmedbekova, declare that the paper entitled: Analysis and Comparison of the Marketing Strategy of Vogue Fashion Magazine in the Russian Federation and China was written by myself independently, using the sources and information listed in the list of references. I am aware that my work will be published in accordance with § 47b of Act No. 111/1998 Coll., On Higher Education Institutions, as amended, and in accordance with the valid publication guidelines for university graduate theses. Prohlašuji, že jsem tuto práci vypracoval/a samostatně s použitím uvedené literatury a zdrojů informací. Jsem vědom/a, že moje práce bude zveřejněna v souladu s § 47b zákona č. 111/1998 Sb., o vysokých školách ve znění pozdějších předpisů, a v souladu s platnou Směrnicí o zveřejňování vysokoškolských závěrečných prací. In Prague, 27.042018 Karina Akhmedbekova Acknowledgment I would like to express my sincere gratitude to my mentor William Pattison for guidance, valuable suggestions, and persistent help. Also, I am thankful to my family and friends, for their unconditional support and faith in me. Without them, I would not be able to get education and diploma at UNYP and gain all the knowledge and experience. Table of Contents Introduction ............................................................................................................................. 8 1 Research Section ........................................................................................................... 11 1.1 Marketing: Definition and Key Aspects ................................................................ 11 1.2 Functions and Types of Marketing ........................................................................ 13 1.3 Marketing Mix ....................................................................................................... 18 1.4 Overview of the Fashion Market............................................................................ 23 1.5 Specificities of Fashion Marketing ........................................................................ 25 1.6 Hofstede’s Theory of Cultural Dimensions ........................................................... 37 2 Analysis Section ........................................................................................................... 41 2.1 Description of Vogue Magazine ............................................................................ 41 2.2 Key Audience of Vogue Magazine ........................................................................ 42 2.3 Marketing Strategy of Vogue Magazine ................................................................ 43 2.3.1 Russian Federation .......................................................................................... 43 2.3.2 China ............................................................................................................... 50 2.4 Comparison ............................................................................................................ 57 2.5 Discussion and recommendations .......................................................................... 70 Conclusion ............................................................................................................................ 74 Annexes ................................................................................................................................ 77 Works Cited .......................................................................................................................... 78 List of figures Figure 1. Vogue Russia’s advertisement in Instagram ......................................................... 48 Figure 2. Vogue Russia’s advertisement on its official website share in all social networks .............................................................................................................................................. 49 Figure 3. Vogue China’s advertisement in Instagram .......................................................... 56 Figure 4. Answers to survey question 1. What is your gender? ........................................... 58 Figure 5. Answers to survey question 2. What is your age? ................................................. 58 Figure 6. Answers to survey question 3. How often do you buy the print version of Vogue magazine? ............................................................................................................................. 59 Figure 7. Answers to survey question 4. Do you believe the price for the print version to be justified? Please rate 1 to 5. .................................................................................................. 60 Figure 8. Answers to survey question 5. Is it easy for you to find where to buy a print copy of the magazine? Please rate 1 to 5. ...................................................................................... 61 Figure 9. Answers to survey question 6. What don’t you like about the print version? ....... 62 Figure 10. Answers to survey question 7. Do you have a paid subscription to Vogue magazine’s electronic version? ............................................................................................. 63 Figure 11. Answers to survey question 8. Do you believe the price for the electronic version to be justified? Please rate 1 to 5. ......................................................................................... 64 Figure 12. Answers to survey question 9. Through what social networks do you follow Vogue (in case of several at once, choose the network where you follow Vogue most)? Facebook / Instagram / Twitter / VK / Weibo / other ........................................................... 65 Figure 13. Answers to survey question 10. Do you believe that the company is effective in communication through online social networks? Please rate 1 to 5. .................................... 66 Figure 14. Answers to survey question 11. Do you believe that the company takes into account the feedback left by its customers? .......................................................................... 67 Figure 15. Answers to survey question 12. In what terms do you like competitors’ advertisements more compared to Vogue? brighter display / more comprehensible / non-standard message / more interactive / other .................................................................. 68 Figure 16. Answers to survey question 13. What would you change in the magazine’s contents? ............................................................................................................................... 69 Abstract The thesis testifies the importance of effective application of marketing policies for commercial entities. International companies operating in different states need to implement effective cross-cultural management policies in order to maximize the results of their marketing in different geographic segments. The thesis illustrates a case study of Vogue on the example of the company’s activities in Russia and China. The research question is the following: The findings of the research prove that the fashion magazine’s marketing strategies are quite similar in the two states, and this is due namely to the close similarities between their cultures. The methods used in this thesis will include secondary research (for analyzing the existing literature dedicated to the research topic and forming a comprehensive theoretical background) and primary research (surveys among the customers of Vogue in the chosen countries). Comparative analysis applied in order to identify the differences in Vogue’s approach to marketing strategies in Russia and China. Based on the evaluation of the company’s policies, recommendations are provided for Vogue to improve its market in Russia and China, and namely to focus on the development of effective communication and marketing in the online segment and raising the presentation of stars, opinion leaders and other influential persons on the magazine’s pages due to their positive perception by the Russian and Chinese people. Keywords China, cultural dimensions, fashion industry, marketing, Russia, Vogue. Introduction As of today, tendencies toward an ever-growing cross-cultural convergence in the world tend to keep steadily intensifying. This means that there is greater cultural exchange around the globe, and the influence of major cultures is spreading steadily across all continents. However, despite those tendencies influenced by globalization, nations still preserve their cultural identity, and companies wishing to achieve success in a particular geographic market need to take those cultural specificities into consideration effectively when planning the development of their business. In this context, it should be understood that companies might benefit from using different marketing tools in different countries with the aim of achieving their best performance. Without taking into account duly such specificities, companies risk of delivering incomplete or unpopular messages to their customers, and in the long run losing their audience and potential profits. Therefore, cross-cultural marketing is an indispensable part of business activities of any entity dealing with foreign markets. This thesis will be dedicated to the
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