International Marketing Essay

1836 words - 7 pages

Introduction The Procter & Gamble company (P&G) is founded in 1837. And it manufactures and markets a broad range of consumer products in many countries throughout the world. The company's products fall into five business segments: Laundry and cleaning, Paper, Beauty care, Food and Beverage, and Health Care. For the nine months end of 3/31/00, revenues rose 6% to $30.29 billion. Net income applicable to Come fell 10% to $2.94 billion. Revenues reflect growth in unit volume and product upgrade. Earnings were offset by increases in marketing and research expenses. (, Profile - Procter & Gamble) Pantene is a famous shampoo product of P&G. And before1992, Procter & Gamble company want it enter the Chinese market. But how can it be introduced? Below, the entry strategies for Pantene in Chinese market will be discussed.Main Part I.The total Entry Strategy alternatives In Fifield & Lewis, International Strategy, 1998, P106 the summary of all the entry strategy alternatives for foreign market are mentioned: Entry Strategy alternatives Entry strategy alternatives Exporting Overseas production Indirect exporting Without direct investment ? Via domestic organizations Licensing ? Trading companies Franchising ? Export houses (EMCs) Contract Manufacturing ? Piggy-backing ? Direct exporting With direct investment ? Agents Assembly ? Distributors Joint ventures ? Company Marketing Strategiec alliances Subsidiary Acquistion Greemfield development Entry strategy Entry Implementation Analysis ? Inventory Profitability ? Personnel/admin Assets ? Logistics Finance Costs Risk Exit strategy Figure 1. Market entry alternatives (Fifield & Lewis, International Strategy, Butterworth-Heinemann, 1998, P106) II Chinese market ( customer buying behavior) The Chinese customer wants to scrutinize the products of Western company personally and make assessments of their trustworthiness and goodwill. The Chinese want to feel they are dealing with a friend who will play fair and make possible a comfortable, long-term relationship.? Do not always offer your most favorable price up fornt. The Chinese want to bargain and negotiate.? Do not, without good cause, insist on selling on letter-of--credit terms. The Chinese are usually prompt payers.? Do not make any statement you can't back up, because the Chinese record everything you say in negotiating sessions.? Do not offer or accept any terms or conditions that you will not want in future transactions. Although the Chinese will constantly ask for something "this time only,", it means every time.? Offer training in China and abroad.? To follow the rules listed before above, have the same group in your company deal with the Chinese over time, at least one of whom understands the language.As foreign companies have sold or tried to sell to the PRC over recent years, much experience has been acquired, and some checklists have been developed.(Source: Ball & McCulloch, P577-578) III The two entry...

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