Market+Entry


 * Due for April 12th class**

Read the following article: “//Regional market segments of China: opportunities and barriers in a big emerging market//” (The article is available for download below) From this reading and other resources you have, **post** a response to these questions in collaboration with your team members (without repeating items). a. What are some key factors for successful market entry according to the article or other sources you choose to use? b. What are some of the challenges to entering the Chinese market? How might one overcome these challenges? c. How do the regions tend to differ? Is there a common “China” thread throughout regions?




 * You can see in the recent McKinsey report link below how they recommend "clustering" for the diverse Chinese market. (pp. 30-33)

2010 Annual Chinese Consumer Study, August 2010
https://solutions.mckinsey.com/insightschina/default/en-us/about/our_publications.aspx#aug2010

a. To successfully market this article suggests that you should understand the base line marketing conditions in the other country. Research is needed to understand the diverse groups of consumers and market structures to make an adequate market entry. The economic conditions of certain cities or countries is also a key factor in determining where to locate. Understanding the culture of the country you are entering is also a helpful tool. b. There are many challenges to entering the Chinese market. One of these challenges is that the people's consumer behavior varies in many dimensions. To overcome this challenge the article claims you should focus on one regional market like China's major cities. China's major cities have better infrastructures and tend to be populated with more affluent people. Another challenge is what type of business strategy to use since their is a lot of cultural diversity in China because of this a differentiated strategy would probably be the most effective. Yes c. Regions differ in many ways including dialect, wealth, culture, level of economic development, and etc. Across China there is really not a common thread throughout the regions due to the diverse cultures within the country. (Stephanie Creamer)

a. Some key factors for successful market entry include understanding the market structure, the various geographic and economic sectors,as well as the readiness of the market to accept the entry of new businesses into the economy. (Marla Jaffe) b. A few of the key challenges that businesses face when entering the Chinese market are related to the fact that the country experiences consistent growth of its population, as well as a high growth rate of its consumer market. These may present difficulty for foreign businesses that are not accustomed to such a fast paced economic environment. However, these obstacles may be overcome through changes in business formats to match the growing demands of the Chinese market. Good point. (Marla Jaffe) c.The regions throughout China tend to differ in many regards. Some of the most common differences between the various sectors of China include the different levels of economic development, industrialization and culture. China is very diverse to the point that you cannot accurately say that there is a common thread amongst its citizens. (Marla Jaffe)

a. It is important that people who seek entry or expansion in China recognize that China's demographics are divided into many different segments such as economic differences and local cultures. While many achieving businessmen concentrate on the women and youth demographics of China, many are turning to urban consumers in a few major cities for location. It is crucial to understand the regional differences in consumer purchasing, power and lifestyles. b. The misconception mentioned above as China being a homogenous market, instead of separate market segments, creates difficulties in assessing market demand and creating effective strategies. I think effective research and product trials might help companies make the correct and efficient choices. Yes c. Regions are different in terms of purchasing power. For example, inland regions are different than the big, popular cities of China. (Lee Rubin)