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Marketing Plan in China

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Zita Stanley

on 1 March 2013

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Transcript of Marketing Plan in China

Marketing in China Donna Steinman
Jeffrey Ramey
Matthew Benenson
Shellaine Coney
Zita Stanley Global Marketing Founded in the in 1924
Ethical Pharmaceuticals
Prescription Drugs
Consumer Products
Shaving cream, Hand & Beauty soaps, Toothpaste, Shampoo, & Detergents
International products
Foreign acquisitions of Companies and Brands Allstar History cont. Australia, Canada, Mexico, USA, & Western Europe
Global organization valued at $8.9 billion
Through restructure
Ethical Drugs, Consumer Healthcare, & Consumer Products
Expand operations to BRIC (Brazil, Russia, India, and China) Allstar History The mission for the Magna Marketing Group is to promote company awareness, boost profits, and enhance the image of the corporations that choose us to handle their marketing needs. Magna Marketing Group’s Mission Statement The vision statement for Magna Marketing Group is to emerge into the top global marketing firm by remaining committed to aid organizations gain brand positioning and viable profits through our marketing tools. Vision Statement Jeffrey Ramey – Sales Manager: responsible for hiring, training and managing sales associates (sales, distribution, decision analysis). In addition, Mr. Ramey assigns territories, sets quotas, and mentors Sales Associates ( reports directly to CEO)
Donna Steinman – Sales Associate: responsible for assisting Jeffrey Ramey in the sales and distribution. Matthew Benenson – Chief Executive Officer: responsible for the operations of the firm (distribution, SKU selection, production)
Zita Stanley – Chief Financial Officer: responsible for handling and overseeing the financial duties of the firm (advertising budget); maintains financial records
Shellaine Coney – Advertising Director: handles the scope of advertisings within budget defined by CFO (advertising campaigns) Company Officers The Magna Group is a trusted North Carolina marketing firm originated in 2010 Greensboro, NC.
Founded by Chief Executive Officer (CEO), Matthew Benenson and his partner, Chief Financial Officer (CFO) Zita Stanley
This marketing duo developed optimum brand positioning results for Allsmile Brands, a leading toothpaste manufacturer in the United States. Company History Local and Regional companies showed the highest manufacturer sales
Local Company was our strongest competitor based on overall Manufacturer sales.
Driscol had increasing sales over the past four periods but Driscol had high cost of goods sold, tariffs, freight, and allowance expense which results in the company loss of contribution. Competitor Analysis SWOT Analysis (BBC Monitoring, 2012) Name: The People’s Republic of China (PRC)
Population : 1.1336 billion
Capital city: Beijing
Largest city: Shanghai
Total Area: 9.6 million square miles
Major language: Mandarin
Political Party: Communist Country Analysis (Uncles, Wang & Kwok, 2010, p. 925) Growing middle income
Most population live in urban areas
Chinese believes in natural products
Population in older generation believe in strong collectivist
New generation are more open, more future-oriented. Customer Analysis (Decker, 2012, p. 37) The world’s fourth Largest Country
The global oral care market had stable growth from 2005 to 2010
It set to grow by $4.1 billion over 2010-2015
Toothpaste and toothbrushes will account for over $3 billion of this (73.4%) growth
Chinese are more aware of their personal hygiene due to the companies entered the Chinese market Industry Analysis (BBC Monitoring, 2013) Economic has transformed with more capitalist system (replaced socialism).
Today, China is the world’s top exporters, largest oil consumers after the US, and the largest producer and consumer of coal.
China is home to many of the world’s most polluted cities.
Other problems: level of society, corruption, and increasing of HIV rate. Country Analysis Cont. We think our two places to do our manufacturing are Beijing and Shanghai. I also think we would do a very good busy over there since they do not seem to have much toothpaste for whole families or children. We also need to do different sizes and different flavors that have different prices for the different kinds of toothpaste. We would put our toothpaste in Hyper Markets and Drug Stores. We think this would help a market grow. Positioning Map and Strategy Some of our competitors over in China would be as follows;
(1) Angola Toothpaste-it is manufactured in Jiangsu, China and is mainly for adults (Alibaba Group, 2013).
(2) Cool White toothpaste-it is manufactured in Jiangsu, China and is mainly for adults (Alibaba Group, 2013).
(3) Air Sun toothpaste-it is manufactured in Zheijiang, China and is mainly for adults (Alibaba Group, 2013).
(4) Kanwan toothpaste-it did not say where it was manufactured, but it comes in three flavors, orange, olive and pomegranate (DiggNew, 2011). Target Market Focus The market our company would target would be adults, children and families. The three brands we would use are
(A) Allsmile Whitening,
(B) Allsmile Basic Family
(C) Allsmile kids. Target Market Focus Pricing
Allsmile Whitening, 75g tube paste – 8.46Y
Allsmile Basic, 150g tube paste – 9.24Y
Allsmile Kids, 75g tube paste – 8.05Y
Prices determined by finding average competitor MSRP within Chinese markets then adding the appropriate percentages due to size, delivery system, etc.
Our products are priced in the middle of the road Marketing Program Strategy and Tactics Place
Three distribution channels used
Hyper Market
Drug Store
Increases visibility of our products
Each SKU will have it’s own ad campaign designed specifically for each target market.
Previous ads will be adapted when possible to reduce cost Marketing Program Strategy and Tactics Packaging
Each SKU packaged differently depending on target market
Packaging changes based on region to reflect local dialects
Increase costs associated with multiple types of packaging will be offset by utilizing local Chinese labor. Marketing Program Strategy and Tactics Product Objectives
Successfully penetrate the Chinese market
Increase sales by 20% annually
Introduce new SKUs
Product Line
Allsmile Whitening Paste – Young urban professionals
Allsmile Basic Paste (family sized) – Families seeking best value
Allsmile Kids Paste – Youth market Marketing Program Strategy and Tactics Introduce products in slow increments
Learn buying trends of China
Goal to obtain 5.5% market share by period 5 Forecasts Slow market entry
Income is expected to increase
Improve market strategy Projected Income Statement The competitor was the biggest risk
Budget management
Uncertainly growth and inflation rates Risks Performance Matrix
Product value & Areas needing improvement
Performance Measures
Reduce inconsistencies and increase efficiencies
Prospective Benefits Analysis
Gauge future benefits/current activities, & adjust accordingly Evaluation Analysis cont. Qualitative Methods
Gathered by observations, interviews or focus groups
Written documents and through case studies
Emphasis on why people think and behave in certain ways
Smaller numbers of respondents
Open-ended questionnaires
Used to answer how and why Evaluation Analysis cont. Mixture of quantitative and qualitative techniques
Quantitative Methods
Information that can be counted mathematically
Surveys from large numbers of respondents
Using statistical methods
Used to answer what, when and who questions Evaluation Analysis Quality Control
Multi-layer, TQM mindset within production facilities
Internal & external audits.
Incoming inspection of raw materials
Source inspection at several points of the production flow
Random final inspection of every batch produced Evaluation and Control Our company needs to make sure we have different flavors of toothpaste as well as different types. We want to make toothpaste that fights cavities, whitens teeth and sensitive to teeth. Our company needs to make different sizes of tubes of toothpaste, so that the customer has a source on what size tube they want to buy. Implementation Plan Our company needs to advertise our product as much as possible, so to get it out to the public. Our company needs to stay ahead of the competition. Our company needs to know what our competitors are doing all the time. Our company needs to make the best toothpaste for all ages of customers. Our company needs to have competitive prices and still be less than the competition is charging. Of course, our company wants to make money, so we really need to watch how much we charge for our toothpaste. Implementation Plan To start our implementation plan we need to find the perfect area in China for our company. Our company needs to have the manufacture building close to all kinds of transportation, (truck companies, trains and boats). Our company needs to hire loyal and efficient employees to produce the toothpaste product. As a company in another country, our managers and leaders need to respect the employees in their culture and believes. Implementation Plan A community built guide to cross-cultural etiquette & understanding. (2013). Retrieved from http://www.culturecrossing.net/
Alibaba Group. (2013). huaian zongheng bio-tech co., ltd. . Retrieved from http://hazh.en.alibaba.com/product/459918243-200533052/150g_Angola_toothpaste_with_free_brush.html
Alibaba Group. (2013). Yangzhou hengyuan daily chemical plastic co., ltd. Retrieved from Yangzhou Hengyuan Daily Chemical Plastic Co., Ltd.
Alibaba Group. (2013). iwu airsun commodity co., ltd.. Retrieved from http://airsun.en.alibaba.com/product/637103728-214346112/Airsun_brand_whitening_expressions_lemon_flavored_toothpaste.html
BBC Monitoring. (2012, November 8). China Profile: Facts. In BBC News Asia-Pacific. Retrieved from http://www.bbc.co.uk/news/world-asia-pacific-13017879
BBC Monitoring. (2013, February 17). China Profile: Overview. In BBC News Asia-Pacific. Retrieved from http://www.bbc.co.uk/news/world-asia-pacific-13017877
China - language, culture, customs and etiquette . (2013). Retrieved from http://www.kwintessential.co.uk/resources/global-etiquette/china-country-profile.html
Decker, c. (2012). Bite's Back in Oral Care. Global Cosmetic Industry, 180(1), 34-37.
DiggNew. (2011). 120g kanwan toothpaste/oral care product. Retrieved from http://www.diggnew.com/120g-kanwan-Toothpasteoral-care-product-h1971077.html
Uncles, M. D., Wang, C., & Kwok, S. (2010). A temporal analysis of behavioural brand loyalty among urban Chinese consumers. Journal Of Marketing Management, 26(9/10), 921-942. doi:10.1080/02672570903441454
U.S.A. Today. (2008). Cultural savvy is smart business. Retrieved from http://www.culturalsavvy.com/china.htm References
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