Today being global is the new trend. A company has to be global to survive in the rough and competitive environment. There are more and more competitors and to be profitable a company needs to seek for new markets. The purpose of this paper is to discuss a marketing audit and critique of on-going marketing efforts, and to create a detailed marketing plan for entry into a new country in which the company is not yet present in China.
China is one of the most attractive market in wine with Japan. The demand is largely superior to the offer. The importation of wine are increasing +36% of volume. France is the first exporter of wine in China, and it keeps increasing +200% between 2004 and 2005. High quality wine sells good in contrary to cheap wine which don't sell that great. The way of consuming is in small quantity.
The Chinese Government integrated in 2001 the World Trade Organization. This was a big step to reduce the barriers for foreign investments and a huge change for a communist country, which accepted for the first time to really open its economy to the world and reduce it protectionism in favor of its local companies.
In October 2009 China became the third largest world economy after the United States and Japan. The Chinese economic growth in one of the fastest in the whole history, with a growth rate that approaches 10% since the last two decades. China was hurt by the worldwide financial crisis, because many companies and banks have investments in the United States.
[...] Beer and the sake are threat to the wine 2. Competitive rivalry within the industry There are many competitors on the market (European, American and Chinese) Some brands are really popular like Dynasty, Great Wall, Dragon Seal et Imperial Court Threat of new entrants Other brands can easily enter the market, suppliers can also become new entrants 4. Bargaining power of customers No real negotiation power, because of the distribution channel. In the restaurant, hotel or bars it is impossible to negotiate the price 5. [...]
[...] The way of consuming is in small quantity. The Chinese Government integrated in 2001 the World Trade Organization. This was a big step to reduce the barriers for foreign investments and a huge change for a communist country, which accepted for the first time to really open its economy to the world and reduce it protectionism in favor of its local companies. - In October 2009 China became the third largest world economy after the United States and Japan. The Chinese economic growth in one of the fastest in the whole history, with a growth rate that approaches 10% since the last two decades. [...]
[...] We will launch a huge advertising campaign. We will develop two different subjects in our communication: - Innovation, thanks to an attractive and innovative packaging we hope to interest our target. We think that our packaging is trendy and we want to create a buzz so people we talk about us. - Heath. Chinese discover recently the benefit of red wine. They care a lot about their health. By talking to the benefits of our wine, we will attract customers. [...]
[...] The label has to be original in the front and the sticker can be place in the back. In the label, some parts need to be written in Chinese: like the name and brand of the wine, ingredients, age of production, name and address of the distributor; percentage of alcohol, country of origin, warranty and expiration date of sugar To distinguish our wine from other French wines, we will design an unusual and design packaging of the bottle. We want to stick out of the box to be known. [...]
[...] Legal The AOC (appellations d'origine controlées) or call in English “controlled term of origin" are really developed in France. The purpose is to protect the French wine to the international competition. Some varietal are submitted to strict rules. Even if a company is not obliged to have a local partner to make business in China, it would be better for her. In fact the local partner will have the knowledge of the country (all the legal things that have to be done to sell wine), but also the knowledge of the market (its needs, way of consuming, etc). [...]
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