《Developing A Winning Marketing Strategy in China》.ppt

Developing a Winning Marketing Strategy in China Asia - Pacific Marketing Practice SUMMARY CONTENT MARKETING AND SELLING IN CHINA BECOMING TOUGHER MORE DEMANDING CONSUMERS CONSUMERS SEEK BETTER PRODUCT PERFORMANCE DISTINCT CONSUMER SEGMENTS EMERGING CONSUMER SEGMENTS EXIST PACKAGED FOOD EXAMPLE – CHINA 1 DEMAND SEGMENTATION – BEER CONSUMPTION High end/JV brand Public recreation Young NEWSPAPER EXAMPLE Modern format MORE COMPLICATED, POWERFUL CHANNELS CONTINUING RETAIL FRAGMENTATION CREATES SALES AND DISTRIBUTION CHALLENGES ON-PREMISE OUTLETS ARE ALSO FRAGMENTED INTENSIVE RESOURCES REQUIRED DEVELOPMENT OF MODERN FORMATS DEMANDS NEW MARKETING SKILLS CHINA PHARMACEUTICAL CHAIN STORES EMERGING Non-hospital share of pharmaceutical market Percent CHANNELS TAKE A HIGH SHARE OF TOTAL VALUE TOUGHER COMPETITION COMPETITION HAS INTENSIFIED Skin care GROWING FOREIGN INVESTMENT HAS GENERATED EXCESS CAPACITY – BEER EXAMPLE ADVERTISING HAS ESCALATED RAPIDLY IN RESPONSE TO COMPETITIVE INTENSITY COMPETITIVE INTENSITY HAS DRIVEN DOWN PERFORMANCE RESPONDING TO THESE CHALLENGES REQUIRES IMPROVED MARKETING PLANS CONTENTS CREATING A MARKETING STRATEGY INVOLVES THREE ELEMENTS VALUE PROPOSITION: BEST PRACTICES AND COMMON ERRORS CONTENT DETAILED ACTIVITIES OF “CHOOSING THE VALUE” CHOOSING THE VALUE: BEST PRACTICES AND COMMON ERRORS UNDERSTAND WHAT CUSTOMERS WANT USE MULTIPLE SOURCES TO IDENTIFY CONSUMER, CUSTOMER AND CHANNEL NEEDS Consumer CLEAR UNDERSTANDING OF NEEDS LEADS TO SUCCESSFUL PRODUCTS DEFINE SEGMENTS AND TARGET MOST ATTRACTIVE ONES CRITERIA FOR SELECTING A SEGMENTATION SOLUTION CONSUMER NEEDS VARY SIGNIFICANTLY ACROSS SEGMENTS SOFT DRINK MARKET IS HIGHLY SEGMENTED – COCA COLA POSITION BRANDS AGAINST SEGMENTS AND CHANNELS TIPS FOR DEFINING VALUE PACKAGES Select packages which deliver “real” value to customers – e.g., adding product feature/service which sustain a price premium within segment Determine whether packages identified represent “new” offerings or just better