.

Saturday, February 23, 2019

Exporting Toys from Belgium to the People’s Republic of China

pic ________________ KATHOLIEKE UNIVERSITEIT LEUVEN Faculty of trade and economics Inter interior(a) selling Toys Exporting toys from Belgium to the tidy sums commonwealth of chinaw be pic Julie Mertens 1 Master TEW Prof. Pierre FrancoisAcademic year 2008-2009 1. T adequate to(p) of contents2 2. Introduction3 3. consumption civilisation in the hoi pollois Republic of chinaw atomic number 18 4 1. china and its economic evolution 1. Export5 2. Open economy 3. Middle eliminate peoples consumption nicety 2. Culture 1. One pincer policy 2. Filiarchy6 3. Six pocket syndrome 4. P arntal direction 5. Childrens face-to-face expenditures . Mian zi7 7. Mien-tsu & Lien 8. Guanxi 9. Fake products 10. Cheaper earlier better8 11. religious belief 12. Astrology & superstition 13. wording 14. Emotions9 15. Business finish 16. Research studies 17. Hofstede10 4. Proposed Marketing renderings 11 1. Segmentation 2. Targeting 3. fix 4. Price adaptations 12 5. proceeds adaptations 1. Product specialations 2. Assortment transpose13 3. scratch compose 4. Im progress 5. Packaging 6. Service level 6. Distri saveion Strategy14 7. parley15 1. Media and the message 2. ad and promotion 5. General conclusion16 6. References17 7. Apendices18 . Introduction Nowadays, in this time of economic depression, round people count the era of globalization is over. Others desire globalization as a necessity in these times of integ dimensionn into one world purification. In this paper, I leave try to indicate if and to which finish the marting- integrate should be vary when exporting Belgian toys to the Peoples Republic of china. First, a brusk c to each one(prenominal)er-up introduction is foundern. Secondly, any(prenominal) relevant concomitants and numbers about the Peoples Republic of china ar discussed. Then, around cultural variances amidst Belgium and PRC argon conside cherry.Fin every last(predicate)y, the proposed foodstuffing adaptations get out be under consideration. Lilli defineiens a participation introduction Lilliputiens is a Belgian alliance that peculiar(prenominal)ises in the achievement of fabric-based toys. What come outs them a trip is the extremely spicy product smell. Their aim is to ensure that all of their toys combine their three core determine provide quality toys at level-headed hurts, which argon fun to play with, great to tonicity at and incur an studyal value. picpic In order to properly stimulate their olive-sized customers, namely boys and girls in the zero to five age range, they have created blueish toys do of flocculent fabric.Their senses be stimulated thanks to the use up of a diverse range of textures, sounds, shapes and colours. The toys be designed with the knowledge that toys enable boorren to imagine, touch, create and look. Those provide a key role in electric razorrens development. some other special feature of the toys is that they evolve in a way that accom panies the baby throughout his or her passage into early infancy. As the child grows, the unsanded play elements argon revealed, do new activities and games possible. As a consequence, these toys no longer need to be put back in the boxful after just three monthsNot however dolls save akin(predicate)ly a play mat, a food pyramid, a table set and a ruler are amongst the Lilliputiens product credit line. pic pic pic 3. Consumption culture in the Peoples Republic of china china and its economic growth china is the greatest and most challenging new frontier that supranational foodstuffers are facing today. china is the most populated country in the world. With one fifth of the world population and the largest population of children in the world, it is an marvelous effectiveness market. Chinas economic growth has risen 11% during 2007 and keeps developing.There is new cash to omit by the 200 zillion acquisitive people in the warmness class. entirely numbers are no n every social function you have to win peoples hearths to be and stupefy in business. Let that be the materialisation of this paper. pic Figure 1 Chinas estimated per capita income per province in 2003 As sh proclaim in figure 2 and 3, Chinas economic growth passes unequally. Eastern regions have cognize a faster growth that has wedded rise to an enormous hatchway amongst Eastern and horse opera China. Eastern China has become oft(prenominal) occidental with diametric ask as a result.In this paper, besides Chinas Eastern, urban regions pass on be discussed since Chinas ten largest cities, which contain only four per centum of Chinas population, account for approximately 22 percent of its earning power and 19 percent of its expireing power. The urban childrens market contains around 100 gazillion children. Figure 2Figure 3 Export The Chinese market is a nirvana for both intragroup and foreign investors. In 2006, Belgium has exported for almost 3 one thousand mill ion euro to China. This crystallises China Belgiums thirteenth trading partner with 1. 1% of our GDP. frankincense far compared to India, Belgiums eighth business partner, the export ratio is press down.To further break export, great connections will be needed. Open economy cease to Eugene Wang, China is relatively open to foreign investments. China has the largest supply of foreign deal investments. Compared to India, Chinas tariff protection is frequently modest and keeps declining. This has resulted in a rapid increase in the volume of imports. In 2003, Chinas imports rated 30% of its gross domestic product, which is twice the import ratio of the U. S. Foreign firms with facilities within China account for 25% of all fabricate goods. These goods buns be exported or could serve Chinas internal market.Middle class peoples consumption culture The surrender middle class or new copious have make money and acquired standing in only one generation. China has an equivocal relationship towards foreign culture Chinese both worship and quash it. Imported goods represent purchasing power, status and good taste. Chinese snuff it to adore occidental culture and life direction. Although the Western consumption culture conflicts with their traditionalistic consumption culture of thrift and lapseing in correspondence to income, the middle class have become a part of the consumerism culture, especially in the fashion consumption.Albeit their norms and values tend to incline towards the Western culture, imitation is smaller by little transferring into their own consumption culture. I consume so I last is the new attitude. The new rich surpass actual needs and as a result become more than(prenominal) than qualified for merchandising and advertizing. They spend a lot of money on consumer goods, desire toys. A latent market is definitely there Culture Cultures are learned by parenting as tumefy as social interactions and therefore they bathroom change. scorn the impact of current globalization, cultural differences will stay. One-child policyThe biggest cultural difference mingled with the rest of the world and China is the one-child policy. Since 1979, due to Chinas history and more specifically the population interpret, law states a maximum of one child per household. Observational data shows that there are 18% more boys than girls. Compared to the world average, this percentage lays 15% high In China, men stand for responsibility for the family and are raised to become the qualifying of the household. Therefore, people prefer to have a baby boy sort of than a baby girl. However, in the urban regions this is gradually changing.More and more parents cherish the equivalent ambitions for their girl. In item, in the big cities girls are favored because parents will non have to worry about being able to provide plentiful hope chest. pic Figure 4 ad to stir the one child policy carry out family planning mechanis m the basis national policy Filiarchy Whether a child is born as a boy or a girl, it is born with much more responsibility on his shoulders than in the rest of the world. When it comes to education, health or money, parents will do whatever it deliberates to contribute to the success of live of their children.For that reason, the one child desexualises the household. According to Mc Neal and Yeh, Chinese children make for the consumption pattern in such a signifi fecest way, namely by 68%, that outsiders look upon him or her as a spoiled brat or little emperor. In the case of toys, the influence on the parents procures mounts up to 93% for children in the zero to five age range. On an annual basis, Chinese children exert a direct influence on play token purchases of three billion dollar per year. It bunghole be said that China has shifted from a patriarchy to a filiarchy kids have become the centre of the creationSix pocket syndrome Chinese parents spend much more time, money and effort on their only childs development. Chinese children are not only raised by their parents but by the satisfying family. This endorse source of money, the grandparents, lives in the same household due to other standards of sustentation. This results in six adults indulging one child. This effect is better know as the 4-2-1 indulgence or the six pocket syndrome. Parental education In China, society is much more collective than in Belgium. This is reflected in the Chinese family and kinship system.It is not unusual that grandparents live under the same roof. Not surprisingly, family has a tremendous impact on a child education. From birth, Chinese children are learned to respect and obey their elders. Un standardized in Belgium, Chinese adults keep seeking for parental approval. Childrens personal expenditures In the number 1 place, children learn about new products from other children, followed by advertisement and store visits. Research has shown that there is a differe nce in requests between boys and girls. Beyond expectations, girls ask signifi basistly more for toys than boys merely who pays for their expenditures?For children under the age of four, it are the parents and other relatives who taint and pay for the toys. Unexpected but true, correspond to Chan children start to spend their own money on their own wants and needs from the age of four, mostly toys and food Mian zi Chinese children do not spend all of their money. A four year old saves around 75% of his pocket money. Their regular income fire be spent but special incomes given on birthdays or Chinese New Year are expected to be saved. Learn how to manage money is a second but just as important reason why Chinese parents give their children money.China derives from a socialist economy and has a culture that emphasizes on saving money because they believe this contributes to the development of ones prestige, which is called mian zi. Mien-tsu & Lien Mien-tsu stands for a reputation through drive, ostentation and success practically expressed by personal wealth-. The more mien-tsu a person has, the higher his social status is and the more influence a person has on others and important decisions. A persons mien-tsu is dynamic it can change over time by someones success or failure. Lien represents the confidence of society in a persons sincerity and can only be lost by misconduct.Together, they determine the importance of a person in his interpersonal relations among Chinese. In China, this is extremely important when doing business, because contracts are defined by trust and connections. Guanxi If a Chinese wants to be successful in business, he needs more than just brains. Guanxi is a personal network of influence and social relationships that is utilize to obtain a advantage or favor for reasonable purposes. Guanxi can be compared to social capital and so it is not an act of bribery. The line between guanxi and corruption is preferably thin.Chinese have a varied view on corruption and crime. Corruption is very big issue in China, counterbalance within the Chinese political sympathies, which censors certain culture. As a result, statistics should always be used with cautiousness. Fake products In China, counterfeiting is a national sport. 40% of all counterfeit toys have China as its country of origin. Although China has signed international agreements on patents and production rights, there are two reasons why they do not hold on to them. First, it is a result of historical factors. Most Chinese do not consider copying someone elses work as a crime.Secondly, Chinese believe the Western companies are al occupyy rich enough, so counterfeiting does not harm the genuine producers. This way, China stays the epicentre of the fudge industry. pic pic Cheaper in the lead better The interrogative mood ar Chinese genuine and counterfeit products are worse than Western products has no unilateral answer. On the one hand, China stands for cheaper -and therefore often dangerous- preferably of better. Think of the Mattel incident, where Chinese toys had to be taken back because the paint had too much lead in it.The Made in China is rather a warning than a quality label. On the other hand, a difference between do in China and Made by China has to be made. European companies who produce in China generally correspond to the Western criteria, so Made in China does not always indicate risks. According to Holslag, a look forer at the Brussels Institute for Contemporary China Studies, China will catch up to the Western norms concerning quality within the foreseeable future. withal a shift from knickknacks to high-tech products is taking place. Religion China is a country full of traditions.One of them is Confucianism, which was the state tenet until 1912. Confucianism is not really a religion but more a philosophy or guideline for everyday life and determines what to eat, how to behave, what to wear, ect. According to Co nfucius, laws are not a good basis of the State. He believes imbueing people with rituals is more effective to reach State stability. Confucius society is very hierarchic everyone knows his smirch and should act like it. Though society is not static. His vagary was that quick-witted people should be able to move up in society, which has had a great impact on the Chinese vision of life.Later, Buddhism, Christian and in the main Taoism influences mingled with Confucianism into neo-Confucianism. So, it is not strange to find a Chinese who is a Confucian, Buddhist as well as a Taoist. pic Nature & Astrology & superstition Chinese culture stands in function of nature. Chinese consider themselves part of nature and try to live in harmony with it. In Chinese astrology, the zodiac of twelve animal signs represents twelve incompatible types of personality. The zodiac traditionally begins with the sign of the rat, followed by the ox, the tiger, the rabbit, ect.This year, Chinese New Year falls on 26th of January and stands in the sign of the ox. Superstition plays an important role in Chinese culture. Although fortune-telling is forbidden, people go to fortune-tellers to ask whether their child will be a boy or a girl. Language Mandarin is the most spoken diction in China. If you speak Mandarin, you have 915 million native speaking conference partners Next to the official language, there are numerous dialects. Besides the different spoken languages, there are in any case two written languages. pic Emotions You will not often see a Chinese cryingChinese often get blame for not saying what they really think or feel. Westerners find that Chinese behave in a stone-cold manner. A possible explanation is the fact that people were hanged in the outgoing for taking a different view on certain matters. another(prenominal) explanation is that defending ones opinion is a Western way of dealing with a situation when there are opponent thoughts. Chinese are learnt at schoo l to accept what is told. Business culture A difference between Belgian and Chinese culture is that Chinese do not work by a model as much as Belgians do.In Belgium, people set up a plan and execute it. In China, people are much more flexible. They anticipate and react on the situation. A possible explanation can be found in their education. Chinese children come in disturb with much more opinions during their family education. Laws, contracts and rules are slight significant. Chinese have a different calendar, namely the Moon calendar. Fortunately, for business they also use the Gregorian calendar. Research studies Culture is defined by what we bribe and why we get it. National culture determines consumer behaviour, not income. (De Mooij)At first sight, culture does not seem relevant when it comes to toys. Toys are used for childrens entertainment. However, there sure is a difference in usage between Belgium and China. As mentioned before, Chinese parents find it extremely imp ortant that their child stands out from the mass. Therefore, Chinese parents buy toys to stimulate their children to learn as soon as possible rather than for entertainment. So, marketing, defecting and advertising strategies should be adapted when exporting toys to China. Hofstede But how different are the Belgian and Chinese culture?According to Hofstede, one can define cultural difference on the basis of five dimensions on a 0 to 100-range scale. The degree of power distance, individualism, maleness, uncertainty avoidance and long-run orientation determines a national culture. The higher the score, the more dimension determines the culture. Belgium pass aways to the more developed Latin countries cluster and China falls under the slight developed Asian countries. pic Figure 5 Cultural difference between China and Belgium Power distance More than Belgian culture, the Chinese culture knows a larger power distance.In China, the acceptance of hierarchy and trust is higher. Since all people are treated fairly, they do not disagree and respect higher ranked and elder people because these stand for wisdom. As mentioned before, Chinese rely much more on human relationships (guanxi) than on contracts. Individualism Esomar research shows that China is a collectivist culture, in which subjection and social network (Mien-stu, Lien & Guanxi) are important. In China, the group where you belong to defines your identity. In Belgium, people and society are more individualistic, which has enabled capitalism.Masculinity Concerning the masculinity/femininity, there is not much specialization between Belgium and China. Both countries have some features of both personalityistics. Uncertainty avoidance In Belgium, people believe they have faith in their own hands. In China, people count on much more on fate and believe their destiny is opinionated for them. In this fatalistic country, failure is unevitable. Belgians are more threatened by risk and uncertainty than the C hinese. As a result, the Chinese are much more open to change. This confirms the Confucianism influence on China.Long-term orientation equal other Southeast Asian countries, China is long term oriented. This has the similar effect as the Confucian values, which are acceptance of change, perseverance, thrift and seeking of peace of mind. Belgium, on the other hand, strives for immediate results like other Western countries. According to Hofstede, these cultural differences will remain over time, how much globilization even takes place. Now that the Chinese culture has no mysteries any(prenominal)more, lets take a look at which adaptations are to be made. 4. Proposed Marketing adaptationscross-cultural awareness the understanding that what is normal in one culture can be offending in another one starts to gain credit. People start to recognize that to be successful in foreign business, the go with should adapt the marketing mix to the countrys values and culture. However, adapta tion is very costly and time-consuming. Although China is becoming more Occidental, the marketing mix should be adapted only until the profits do not make up for the costs anymore. Segmentation There is no such thing as an average consumer Therefore, there is no use -or value- in making an average product.First, the telephoner has to distinguish the different market portions based on similar product needs for consumers. For the Chinese toy market, a distinction between the urban and rural households can be made. The question whether a market segment is specific enough to make it a segment on its own depends on four Ps. The first P stands for product. Children in urban China play with different and more qualitative toys than children in rural China. The second P stands for price. Since urban China is much wealthier, they are less price sensitive than rural China. Also the service level, the third P, differs.The more cultivated East demands a higher servicelevel. The closing P, pro motion, varies from TV advertisement and word of mouth in urban China to only word of mouth in rural China. Size Product Price Service Promotion Urban 36 % High quality High High TV + word of mouth Rural 64 % Different toys Low Low Word of mouth Table 1 Segmentation the four PsTargeting In a abutting phase, the telephoner has to make a strategic choice. This hard-to-reverse decision, namely the decision which specific market segment will be targeted, depends on the value that can be offered to customers. Although the final consumers are children between zero and five years old, most of the time it will be the parents who will buy the toys. Since the most profitable segment is Chinas urban household segment, this market segment will be targeted. For the reason that this target group lives super concentrated in the cities, they are easy to reach customers.Positioning Brand positioning is the process by which marketers try to create an form or identity in the minds of their t arget market for a certain product. The question is whether a brand should be global or not. In this case, a global image of the brand is not important. It would be better to distinguish the positioning since in China the localise would be on accomplishment during playing compared to recreation and entertainment in Belgium. Although it is costly, the company will eudaemonia from this investment because of the positive effect on buying behaviour.Two company images will not confuse customers since there is a language and character barrier between both countries. Price adaptations A price can be determined on the basis of costs, by looking at competitors prices or in proportion to the value created towards the end-consumer. I would suggest the company to go for the third option. Although the companys first goal should be market penetration resulting in low prices , still a shaving pricing strategy seems outdo. The dolls are of a superior quality and sumptuousness products demand a high price.I believe 50 euro or 465 Chinese Yuan would be an appropriate price for a 25 by 15 centimetre doll. This high price can be justified because the toy cannot only be used for entertainment but also for educational purposes. Since the income of the middle class is only rising, according to my market research (see apendix) at this price there will be enough potential buyers. Another reason that justifies a high price is the high level of pre and after sales service Chinese demand, which will be discussed further. Product adaptations Product specificationsNowadays, toy manufacturers do not adapt the features of the dolls But research has shown that it hurts the childerns self-esteem. Therefore, the company should customize the skin colour, hair, eyes, height, ect. as shown in figure 6. pic Figure 6 A Chinese Lilliputien doll with xanthous skin, dark hair and dark slit-eyed eyes. One of Lilliputiens toys is the food pyramid by which children can learn how to put together w ell-balanced meals. Since people in China eat other vegetables, other meat and noodles and rice instead of potatoes, this pyramid should be adapted.Another Lilliputien toy, the table set also should be modified since Chinese eat with chopsticks instead of fork and knife. pic pic Figure 7 Food pyramidFigure 8 Table set Assortment change Children like choice therefore the product line should be expanded. The current themes like the circus, the Indians, the Pirates, the nativity of Jesus Christ could be supplemented with the twelve zodiac animals of the Chinese astrology. A doll of the childs animal sign can be given as a gift at the childs birth.A less perfect acquisition for the assortment would be a Buddhist doll, Chinese would find it inappropriate and rude. Brand name receivable to a different language and moreover a different alphabet, it is significant to change the company name and product names. Lilliputiens would be unpronounceable. My suggestion would be to render the co mpanys name by transliteration, so that is sounds the close set(predicate) to its original name. Pu-Tien means all over the world, which fits with the company philosophy, to give all children over the world the chance to play. ImageThe new rich people love to show off their wealth. A good idea would be to create a good recognizable logo to put on each doll so that others can recognize the brand and they can brag about expensive purchase. The advertisement campaigns should be identifiable by showing rich and fortunate people. Packaging Since the advancement has to handle the product, it is essential to make it as colourful and vibrant as possible. The company certainly has to use the colour red on the packaging, since in China, red has a positive connotation and stands for success, honour, fertility, happiness and love.Qualitative information, about the fact that this toy is educational as well as entertaining, must be provided to the Chinese parents. A good idea could be to use a combination of Chinese and English language in the toys manual. imputable to internalization, the Chinese middle and hurrying class have become familiar with English. Toys are often given as a gift. The packaging has to look nice, because gifts are used to build up and strengthen relationships. The dolls are very soft and have different textures, therefore the company could use an open packaging so potential customers can feel and see the product before purchasing. Service level When a child has a need, it wants the need to be gratified as soon as possible. Since fast delivery is thus very important, there has to be enough inventory at any time. Because the Pu-Tien toys are more than just toys, this educational plaything stimulates senses and development of a child, there is need for pre sales service. Although China pays a lot of prudence to pre-sales service as well as post sales service, they do not expect a guarantee on toys. Given that the dolls are made for children betw een zero and five years old, avoiding small split and implementing warnings can prevent danger to children.Safety regulations are less severe in China. Nevertheless, the company should keep their high level of quality. Since the dolls are made in Belgium, the company should exploit their country of origin effect and explicitly mention Made in Belgium. Distribution strategy Business culture In China, paper means nothing. So if contracts do not work, what will? You need to band with local people and win their trust. This is where the Guanxi comes in. To obtain a certain service or favour, a personal network of influence and social relationships are a must.According to Li Qinfu, finish up with the Chinese politics also plays a very important role. When Westerners want to do business they contact their lawyers, when Chinese do business they contact government officials. Parallel import I would not set a lower price in the Chinese market than in the home market because due to relat ive low trade barriers, the risk and impact of grizzly export from China to Belgium would be too big. Mode of entry At first instance, due to low costs and a high control level, I would suggest the company to set up a website.But on further consideration, children want their needs to be gratified as soon as possible. In addition, if the toys are reachable (merchandising), they will also nag more, which helps children to get what they want if they have shut-up parents. Shipment costs for a prior delivery would be too large in proportion to the retail price. Another reason why a website would not be a good mode of entry is the level of pre and after sales service a Chinese consumer demands. The target segment, namely middle and upper class people with high requirements, searches for qualitative, pedagogical responsible and save toys.Therefore, these prodigality toys should be sold in fancy local retail stores, not in ordinary supermarkets. The trade-off of using retail stores goes between the fact that the products are reachable, ready for delivery, a high service level and less control, more risk and higher investments. Since toy dealers are not make to deliver good sales support, a good way to check the service is ghost shopping. This market research technique of sending fake customers will tell if sales men give the right information and service to potential buyers and customers.Since feedback from distributors does not come easily because they are independent, a good idea is to improve relationships with local parties by means of guanxi. Communication A good strategy is nothing if it is not well executed. Advertisement is the most culturally sensitive element of the marketing mix. Therefore, it is wise to determine well how to say what you want to say. Media and the message When announcing the product launch to the potential customers by the media, the message strategy is of crucial importance. According to Hofstede, the communication style depends on the five dimensions of local culture.China is a developing, high scope and collectivistic country. The best communication style is a less illuminating and more persuasive and emotional approach. When advertising on TV, a good idea would be to use the to the lowest degree words as possible. Optimally, only utilize non-verbal language. Not only because collectivistic cultures are more visually orientated (De Mooij), but also because children between zero and five cannot read and have a very small vocabulary. Toddlers have very well developed visual capabilities and are sensitive to emotions. For that reason, a visual advertisement would do better.In combination with a lot of colour, childrens attention will be monopolized. Although Hofstede suggests a less informative approach, I believe that the message towards the (grand)parents should be informative (information on age, warnings) and focus on the educational value of the product. Pu-Tien toys provide a key role in a childs deve lopment its senses are stimulated thanks to the use of a diverse range of textures, sounds, shapes and colours. As slogan I would recommend Pu-tien tested, child & educational approved As mentioned before, Chinese culture has shifted from a patriarchy to a filiarchy.As a result, advertisement will focus on children and their needs. Advertisement and promotion Not only the message, also the forte by which potential consumers are informed matters. In a first phase of promoting the product, children need to get to know the product. To gain product awareness, the company should adopt sampling. By offering certain pre-school kindergartens and day nursery centres some free samples, children will come in contact with the Pu-Tien product range. This is a win-win situation. Schools will be thankful to receive teaching aids nd our company will benefit from other childrens word of mouth, which is the best marketing tool. If our product line appeals to the children, children will nag to thei r parents to get the product. take has as advantage that it is the most effective promotion strategy but unfortunately it is extremely expensive. denote on TV will be a second step of the companys promotion strategy. Due to hypersegmentation, there are almost 3000 TV stations in China. With the given marketing budget, it would be too expensive to advertise on all of them. I would suggest advertising on one childrens origin as well as on one adult channel.Although the companys target group is children between zero and five years old and their personal expenditures start from the age of four, mostly adults will buy the product for them. Since grandparents live in the same household, also raise their grandchildren and are happy to spend their money on their grandchildrens formation, the commercial should comprise of not only the childs parents but of the whole family. Also some traditional symbols or Chinese icons should be put in because it will help to make the connection between the Western and their own consumption culture.As marketing manager, I think it is best not to invest money in global advertisement. I have computed the extent of standardization and found that toys are a cultural product. Therefore, the message and mean(a) should change. It is not necessary to have one corporate brand image because the children in Belgium and China will not come in contact with each other, so it will not be confusing. Conclusion SWOT-analysis Strengths The major(ip) strength of the companys product is the educational value that comes with the product. Chinese find education extremely important. WeaknessesA relative high price is chosen due to the risk and impact of parallel import. But a small segment with a high price can be more profitable than large volumes of low profit margin products. Opportunities acquirement more about China, its culture, rules and laws and setting up a social network, with the government as well, will be extremely important. This will ta ke some time, effort and money but it will enlarge the companys chance to succeed tremendously. Threats I believe the biggest challenge will be the fierce competition from less qualitative and counterfeit dolls that are much cheaper.To conclude, as a marketing manager, I must say China stays a black box. When you have done all research that is possible business in China still is risky. At least with the suggested adaptations the risk will be minimized and the success is multiplied. 6. References wonder Interview with my neighbour Yan Lu, a Chinese middle class woman living in Belgium since then years Books Kotler, P. et all (2005). Principles of Marketing. Prentice Hall Harlow. pp XVIII, 788. Chan, K. & McNeal, J. (2004). Advertising to children in China. The Chinese University Press of Hong Kong. pp. I, 1-21, II, 23-42.Latham, K. & Thompson, S. & Klein, J. (2006). Consuming China. Routledge. Yau, O. H. M. (1994). Consumer behaviour in China. Routledge. pp III, 63-83. Usunier, J. - C. (2000). Marketing across cultures. Prentice Hall Harlow. pp V Articles Mooij, M. (2005). Mapping cultural values for global marketing and advertising. Dobbelaere, B. & Reynebeau, M. (2008). Bijlage China de rode boekjes middelpunt van de wereld, 1,3 miljard sporters, een exploderende economie, paradijs voor investeerders, kleine vrouwen, een wereldmacht, de nieuwe rijken, een milieuramp, de diaspora, traditionele cultuur, culinair.De Standaard Reportage Marketing to children. Een, Koppen, 23/12/2008 Internet pages http//www. lilliputiens. be/EN/philosophy_nobel. htm 28/10/2008 http//www. allcountries. org/china_statistics/4_4_basic_statistics_on_national_population. hypertext markup language 25/11/2008 http//www. namingnewsletter. com/article. asp? id=42 25/11/2008 http//findarticles. com/p/articles/mi_m2294/is_9-10_53/ai_n16084036 23/12/2008 http//benmuse. typepad. com/ben_muse/china/index. hypertext markup language 25/11/2008 http//en. wikipedia. org/wiki/Positioning_(marketing ) 23/12/2008 http//simonworld. mu. nu/archives/105889. hp 24/12/2008 http//smallswordsmagazine. com/articles/life/chinesesarcasm. html 3/01/2009 http//www. wing-international. com/ 03/01/2009 7. Apendices pic Market research Questionnaire What is an appropriate price for the Pu-Tien doll? 1) Are you a male/female? 2) How old are you? 3) What is your highest level of education you have achieved? 4) What is your marital status? 5) How much do you earn each month? 6) Do you live in one of Chinas big cities? 7) What is your housing type? 8) Do you have (grand)children? 9) How many (grand)children do you have? 0) Is it a boy or a girl? 11) Do you believe your (grand)childs development is important? 12) Do you like to spend money on your (grand)childrens (birthday)presents? 13) How much would you normally spend on your (grand)childs birthday? 14) Have you ever bought a Pu-Tien doll for your (grand)child? 15) Where you pleased with your purchase? 16) What was the occasion you bought the do ll for? 17) How much did it cost you? 18) Did you found it a reasonable price? 19) What would have been the highest/lowest price at which you would buy a Pu-Tien doll?

No comments:

Post a Comment