Market Entry in China (eBook)

Case Studies on Strategy, Marketing, and Branding

Christiane Prange (Herausgeber)

eBook Download: PDF

2016 | 1st ed. 2016
VI, 231 Seiten
Springer International Publishing (Verlag)
978-3-319-29139-0 (ISBN)

Infos

This book compiles brand new case studies on the intricacies and market entry strategies of different companies in China. The sheer speed and scope of China's growth makes it unique and investment opportunities are very attractive. Despite the potential, many western companies fail in their market entry strategies. This book traces the major sources of failure and uses cases to illustrate how firms can better cope with the challenging Chinese market. With a special focus on marketing, positioning, and branding, this book presents issues and solutions of both large multinationals and small niche market players.

Christiane Prange is a Professor of Global Strategy and Marketing at Tongji University, China. She obtained her Ph.D. from Geneva University, Switzerland, and has lectured as a visiting professor in more than ten countries, including Austria, China, Malaysia, Russia, Romania and U.K. She has also consulted multinational companies on marketing and internationalization strategies, global innovation management, and agility. She has published five books and several journal articles, and has presented her work at major international conferences, including Strategic Management Society (SMS), Academy of Management (AOM), and Academy of International Business (AIB).

Inhalt

Contents 6
Part I: Introduction 8
The Promise of China 9
References 13
Internationalizing to China: Challenges and Pitfalls 15
1 Restricted Industries 16
2 Entry Mode Choices 17
3 Cultural Challenges 19
References 20
Marketing Decisions in China: Positioning, Branding, Marketing Mix 22
1 The Rise of the Middle Market 22
2 Positioning and Branding 24
3 Marketing Mix: Standardization or Adaptation? 25
3.1 Product Policy 25
3.2 Pricing 26
3.3 Place and Distribution 27
3.4 Communication Policy 28
References 29
Overview of the Book 31
References 37
Part II: Automotive Industry 38
Audi and the Chinese Market: A Success Story 39
1 Introduction 40
2 Audi: A Premium Brand 40
3 Audi: An International Company 41
4 Audi in China 43
Box 1 The History of Audi in China 43
Bibliography 46
Can PSA Peugeot Citroën Succeed in China? 47
1 Introduction 48
2 PSA Peugeot Citroën 49
3 PSA Peugeot Citroën in China 49
3.1 The Chinese Automobile Market 49
3.2 PSA´s Operations 50
3.3 Marketing Strategy of PSA in China 51
4 Performance of PSA in the Chinese Market 52
5 Problems that Led to Poor Performance 54
5.1 Positioning 54
5.2 Product 56
6 Can PSA Break the Dilemma? 57
Appendix 58
References 59
Part III: Retail Industry 61
Marks and Spencer: A Global Expansion to Acquire Lost Momentum? 62
1 Introduction 63
2 MandS: A Look Back 64
3 Internationalization, Contraction and Internationalization Again 66
4 China: The MandS Misadventure 67
5 What Went Wrong? 68
5.1 Home Market 68
5.2 Ageing Consumer Base 68
5.2.1 Suppliers and Quality 69
5.2.2 Supply Chain and the Internet 69
5.2.3 Insensitivity to Needs of the Foreign Market 70
6 Future Outlook 70
Appendix 71
References 72
IKEA in China: A ``Glocal´´ Marketing Strategy 74
1 Introduction 75
2 Background Notes 77
2.1 IKEA in a Nutshell 77
2.2 IKEA´s History 78
2.3 International Expansion and Strategy 80
3 IKEA in China 82
3.1 The Chinese Market: Huge Potential and High Risk 82
3.2 Competition and Industry structure 83
3.3 Competitors 84
3.3.1 Hola 84
3.3.2 BandQ 84
3.3.3 OBI 84
3.3.4 Qumei Group 84
3.3.5 Markor Furniture International 85
3.3.6 Royal Furniture 85
3.3.7 Chengdu QuanU furniture Co 85
4 IKEA Enters the Chinese Market 86
4.1 A Difficult Choice 86
4.2 Initial Position and Challenges 87
4.2.1 Pricing 88
4.2.2 Targeting-Positioning 89
4.3 Reviewing Marketing Strategies 90
5 Real Solution Adopted 91
5.1 Current Target Group 92
5.2 Advertising and Channel Branding 92
6 Results and Future Trends 93
References 93
China´s Retailing Graveyard: A Case Study of TESCO 95
1 Introduction 96
2 Tesco´s History 97
3 The Retail Environment in China 97
4 Tesco´s Expansion 100
5 Consecutive Setbacks 102
Bibliography 103
Part IV: Fashion, Luxury, and Play 104
Take the Opportunity to Pilfer a Goat: Lessons from Gieves and Hawkes 105
1 Introduction: The Chinese Luxury Market 106
2 Market Entrance of Gieves and Hawkes in China 107
3 Trinity and Mr. Fung 108
4 History of GandH: From Thomas Hawkes to Ray Clacher 109
5 Brand Revitalization 110
6 Development of GandH´s Price and Product Strategy 111
6.1 Trading Up and Down 111
6.2 Adapting Products to Chinese Taste 112
6.3 From ``Show-off´´ to ``Way of Life´´ 112
7 Development of GandH´s Distribution Strategy 113
7.1 Further Expansion Worldwide and in China 113
7.2 Trend towards Non-domestic Luxury Spending 113
7.3 New Store Concept 114
7.4 Contraction in the UK 114
8 Development of GandH´s Communication Strategy 115
8.1 Celebrity Marketing 115
8.2 Improving Quality Perception by Ingredient Branding 115
8.3 Cultural Events and Sponsoring 116
8.4 Social Media Engagement 116
9 Additional Questions 116
References 117
HTH´s Exploration in China 119
1 Introduction 120
2 Chinese Preference on Furnishing Fabrics 121
3 HTH Background 122
4 Product Portfolio 122
4.1 Parallelism 122
4.2 Badge 123
4.3 Chivalry 123
5 Distribution Structure in Western Countries 124
6 Main Competitors 124
6.1 Lelièvre 125
6.2 Pierre Frey 125
6.3 Rubelli 125
6.4 Manuel Canovas 125
7 The Decision to Enter China 126
8 Competitors´ Distribution in China 126
8.1 Lelièvre 126
8.2 Pierre Frey 127
8.3 Rubelli 127
9 Distribution Structure in China 127
Appendix: Fabrics Glossaries 128
Master International Franchising in China: The Case of the Athlete´s Foot 130
1 Introduction 132
2 Rick Wang and RetailCo. Inc. 132
2.1 The Athlete´s Foot, Inc. 133
2.2 An Athlete´s Foot Master Franchisee in China 135
3 Business Context 137
3.1 Franchising in the Chinese Market 137
3.2 Market Environment 138
3.3 The Glorious Age 139
4 Signs of Problems 140
Appendix 142
Mattel´s Second Attempt to Crack the Chinese Market: Will China Embrace the American Barbie Doll This Time? 143
1 Introduction 144
2 Mattel Inc. and Barbie 145
3 Expansion Into Emerging Markets and Economic Downturn 146
4 The Barbie Brand 148
5 House of Barbie in Shanghai 149
6 Why Did Mattel Fail? 149
6.1 Lifestyle Brand 150
6.2 Local Consumer Tastes 150
Successful Kawaii Brand in China: Hello Kitty 151
6.3 Pricing Strategy 151
6.4 Consumer Behavior 153
7 A Second Attempt of Going to China? 155
Appendix 156
Bibliography 157
Part V: Beverages and Food 160
TPresso: Is the Tea Machine Too Cheap for the Chinese Market? 161
1 Introduction 163
2 The History of Chinese Tea Drinking 163
3 From Nespresso to Tpresso: A Brilliant Extension of a Successful Concept? 164
4 The Tpresso Machine and Tea Capsules 165
5 Tpresso and the Chinese Market 165
6 Tpresso´s Positioning and Chinese Luxury Consumers 167
7 Tea Consumption Habits of Chinese People 170
8 Product and Pricing Strategies in China 171
8.1 Product Launch and Positioning 171
8.2 Pricing Strategy 172
9 The Future 173
Appendix 173
Exhibit 1 173
Exhibit 2 174
References and Further Reading 175
Coca-Cola in China: Will Their Brands Survive in This Challenging Market? 177
1 Introduction: The Coca-Cola Company 178
1.1 Coca-Cola in China 178
1.2 Coke´s Successes and Difficulties in China 179
1.3 Bottling Partners 181
2 The Soft Drink Industry in China 182
2.1 Carbonated Soft Drinks (CSD) 182
2.2 Non-Carbonated Soft Drinks (NCSD) 182
3 Competition 183
3.1 The Hangzhou Wahaha Group Co. Ltd 184
3.2 Tingyi and PepsiCo 184
3.3 Want Want China Holdings Limited 185
3.4 China Mengniu Dairy Company Limited 185
4 Coca-Cola´s Challenges 186
4.1 Governmental Issues 186
4.2 China´s Tiers 186
4.3 Water Scarcity 187
4.4 Consumers and Prices 187
5 Will Coca-Cola Remain Market Leader in the Carbonated Soft Drink Category? 188
References 188
Danone-Dumex in China: The First Drink of Milk 190
1 Introduction 192
2 Regulation of Breast Milk Substitutes Marketing in China: The 1995 Code 193
3 Danone Entering the Chinese Infant Formula Market 193
4 About the Dumex Brand 194
5 Ambitions of Danone 195
6 Infant Formula Market in China: An El Dorado for Foreign Firms 197
7 2013, The Year of Troubles for Danone 200
8 Action Against the Scandals 201
Appendix 203
References 205
Part VI: Summary and Outlook 207
Preparing Business Activities in China 208
References 212
The Future 213
References 215
Author Biographies 216

Produkt-Details

• Erscheint lt. Verlag: 14.5.2016
• Reihe/Serie: Management for Professionals
• Reihe/Serie: Management for Professionals
• Zusatzinfo: VI, 231 p. 37 illus., 16 illus. in color.
• Verlagsort: Cham
• Sprache: englisch
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Marketing / Vertrieb
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Unternehmensführung / Management
• Schlagworte: brand strategy • business culture • Chinese business • International market-entry • Luxury brands • Marketing-Mix • pricing strategy • product strategy
• ISBN-10: 3-319-29139-4 / 3319291394
• ISBN-13: 978-3-319-29139-0 / 9783319291390