Market entry strategies definition,download video maker pro free for pc,freelance editing jobs massachusetts - Easy Way

11.08.2014
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As average wages have increased and consumers possess more disposable income and are willing to spend their hard-earned wages on modern products, more small and medium sized companies from around the world have entered the Chinese market importing products ranging from French cosmetics to German paint, from Ukrainian Vodka to Malaysian fruit juice. As recently as a decade ago, entering the Chinese market was synonymous with entering the Beijing, Shanghai, or possibly the Guangzhou markets.
The breakneck speed of the development of consumer markets in 1st tier cities such as Beijing, Shanghai and Guangzhou has led to a dynamic saturation of these markets by a constantly changing abundance of similarly-perceived products coming from around the globe. The vastness of China and the sheer size of the population mean that opportunities still abound for companies interested in entering this market. Bypassing the highly competitive 1st tier markets is a viable option for many companies and can offer numerous rewards; in fact, it should be seriously considered.
The scope of the study included a semiotic analysis of baijiu2 codes, video ethnography, and qualitative consumer focus groups with regular drinkers of baijiu and other alcohol in Chengdu, Shenyang and Wuhan. The project was completed with a brand positioning and strategy workshop to develop a compatible positioning of the brand for China.
The semiotics phase consisted of identifying the positioning of different Baijiu brands, the main codes used in communication and an analysis of various bottle styles currently found in the market place. The focus groups revealed that in comparison to their 1st tier city counterparts, knowledge of foreign alcohol was limited among small city consumers. Information from the video ethnography and consumer focus groups also helped refine the client’s understanding of the target consumer and how they can best be engaged. Labbrand also made several comparisons and recommendations regarding potential distribution channels of interest for or client.
There is a vast amount of information available regarding Chinese consumers; however, most of these studies often forget to mention that their research was limited to a few 1st tier cities and possibly some quantitative statistics provided by the statistics bureau of China.
Introduction The need for a solid market entry decision is an integral part of a global market entry strategy. Topic Example Video The following video explains exporting and the desire to move offshore for market growth.


Cross-Border Alliances that Succeed: Alliances between strong and weak partners seldom work. Famous quotes such as “the risk not to be in China is bigger than the risk to be in China” from Heinrich von Pierer, the CEO of the Siemens AG from 1995 to 2005, were typical of a time when large capital investments were deemed necessary to enter the Chinese market1. It meant understanding the potential of a few select regional markets, as only those markets were believed to be profitable.
The term “dynamic market saturation” has been used to describe the high turnover of products entering the 1st tier city markets, all chasing after the same consumers although the size of the market in terms of the number of consumers remains fairly stable. However, regardless of the product category, a passive market entrance that relies on the sheer number of potential consumers in China to flock to any and all products is no longer enough. A recently concluded market research study carried out by Labbrand focused on understanding the feasibility of a new vodka brand to enter the Chinese market by bypassing the 1st tier markets, and identifying areas of consumption which go beyond the competitive battlefields of the nightlife and entertainment venues of the 2nd tier markets. The focus groups were organized in restaurants together with a meal in order to allow for a thorough product tasting. Foreign alcohol types were not differentiated, for example many participants did not know the difference between vodka and wine. Further recommendations included key areas identified as requiring improvement, namely the product name and packaging. By focusing on consumption occasions and locations, new restaurant types currently not considered a priority by major foreign brands were identified as potentially viable for introduction of the clients Vodka brand. A major learning for our client was that their understanding of the Chinese market and the results from the research were unique and required them to re-evaluate their market entry strategy. Session Outline Modes of Entry Strategic Alliances Joint Ventures Exporting Licensing Franchising. Selecting the Target Market A crucial step in developing a global expansion strategy is the selection of potential target markets. Choosing the Mode of Entry Mode of Entry Choice: A Transaction Cost Explanation Regarding entry modes, companies normally face a tradeoff between the benefits of increased control and the costs of resource commitment and risk. Entering New Markets through Wholly Owned Subsidiaries Acquisitions and Mergers Quick access to the local market Good way to get access to the local brands Greenfield Operations Offer the company more flexibility than acquisitions in the areas of human resources, suppliers, logistics, plant layout, and manufacturing technology. Timing of Entry International market entry decisions should also cover the following timing-of-entry issues: When should the firm enter a foreign market?


The result has been a massive increase in marketplace competition coupled with the increased sophistication of 1st tier city consumers. In short, the objective of the study was to understand which vodka products from the client’s portfolio are suitable for whom, and where they are most likely to be consumed. For Baijiu brands, codes used in communication were positioned along an axis ranging from power and achievement to universalism, tradition and heritage to hedonism and stimulation. The semiotic analysis also offered clear findings regarding dominant and emerging packaging and bottle codes. For example, a vodka brand could develop a partnership with a Western-style restaurant positioned mid-market managed by a Chinese single proprietor. Other important factors include: level of international experience, firm size Also, the broader the scope of products and services Mode of entry issues, market knowledge, various economic attractiveness variables, etc.
New advertising campaigns continue to attract legions of curious consumers and their willingness to try new products is high; however, brand and product loyalty for many product categories continues to remain low. The bottle designs were classified from power and status to universalism, from classical to modern, as can be seen in the diagrams below. Within Chinese liquors, consumers would often buy the most expensive baijiu to have a drink with their boss, but purchase an inexpensive liquor to enjoy with their friends.
Premium alcohol brands are unlikely to target this type of outlet, yet a lot of consumers could be reached through this restaurant channel.
Product understanding, market exposure, needs and expectations will be different in different product categories.
With regards to foreign alcohol, beer was considered to be a casual drink that could be enjoyed with friends over dinner, whereas wine, specifically red wine, was considered more sophisticated and romantic. Only through a well-formulated brand strategy based on comprehensive market understanding can brands, large or small, domestic or foreign, hope to build brand equity to succeed in the long run in China. Purchases of foreign alcohol were based mostly on promotion and availability, while the reasons given focused on wanting to be trendy or garner the admiration of peers.



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