Marketing challenges when targeting developed markets: How to overcome them?

Résumé du document

Over the past decade, many Asian companies have established branded products in several emerging markets (consumer electronics industry or domestic appliances for example). But nowadays, the next challenge is, for emerging market companies, to establish branded products in developed countries. Indeed, we can evoke the success of "Haier", China's biggest appliance manufacturers, which is notably selling refrigerators under is own name in the USA. "Haier" also opened a manufacturing plant in California which is a symbol of its success. Furthermore, brands such as the Chinese "Lenovo" (computing industry), "Keijan" (mobile phones), and "SVA" (consumer electronics industry) also went global successfully. In India, "Tata" also achieved its mark in developed countries (P. Gao, J. R. Woetzel, Y. Wu, Can Chinese brands make it abroad?, 2003 article). These success shows that selling branded products in occidental countries can be highly profitable. However, we will see that to achieve success in emerging markets' companies usually have a long way to go.

Extraits

[...] Why targeting developed markets? According to P. Gao, J. R. Woetzel and Y. Wu, Can Chinese brands make it abroad? article, most of the Asian companies are perceived as the world's biggest OEMs (Original-Equipment Manufacturers) because they are used to supply the most powerful brands all around the world (clothes, toys, electronic devices Nowadays, governments of developing countries are urging their local companies to establish branded products in developed countries. So, what can be the advantages, for developing world companies, to sell branded products in Occidental markets? [...]

[...] Marketing Challenges when targeting Developed Markets: how to overcome them Over the past decade, many Asian companies have established branded products in several emerging markets (consumer electronics industry or domestic appliances for example). But nowadays, the next challenge is, for emerging market companies, to establish branded products in developed countries. Indeed, we can evoke the success of the China's biggest appliance manufacturers, which is notably selling refrigerators under is own name in the USA. also opened a manufacturing plant in California, symbol of its success. [...]

[...] Selecting markets (Step First of all, the company needs to conduct a rigorous market selection according to relevant criteria: political, economic, social and cultural characteristics, tastes, lifestyle, attitudes Indeed, it is necessary to evaluate the attractiveness of developed countries, by getting to know: - What is the market potential and attractiveness? The market growth and size needs to be precisely evaluated - What are the conditions to access the market? What are the different barriers to entry? What are the characteristics and the degree of competition? - What is the level of risk? Commercial and financial risks - What is the cost of entry to the market? According to F. [...]

[...] Many opportunities in developed markets have to be considered, notably in the consumer electronics industry. Indeed, Chinese companies belonging to that industry are already operating in a large domestic market, opened to the international competition, which actually proves that they can compete with the “world's best features, quality and prices”. (Can Chinese brands make it abroad?). In addition, low labour costs make products from developing countries cheaper. Thus, “money savings” can be notably invested to develop partnerships with several Occidental markets or to strengthen innovation and research for example. [...]

[...] [Market Selection, Culture, February and March 2008]. A. McAuley (2001) International Marketing, consuming globally, thinking locally. U.K.: John Wiley & Sons. J. P. Jeannet, H. D. Hennessey (2001) Global Marketing Strategies. 5th ed. U.S.A.: Houghton Mifflin. D. W. Cravens, N. [...]