B. As we continue to evaluate our opportunity to expand our Ice Cream Shops into China we will compare our U.S. business practices to those in China. We will specifically take a look at the Marketing Mix and 4 P’s of marketing (Product, Price, Promotion, and Place) to begin addressing our potential marketing strategies; we will need to be prepared to refine our products appeal for the Chinese consumer.
1. Product – We’ve learned that in the West, product sales result from a combination of product display and price reductions. By contrast, in China, product sales depend on how much information is available to consumers. Rao (2006), “Chinese want product information placed next to a product in a store; they tend to do comparison shopping in at least three stores and like to window shop” (p.181). Understanding that is a need in order to appeal to the Chinese consumer will need to consider how to disclose the nutritional facts to them in a way that it will appeal to them on an intellectual and emotional level, these things will be incorporated into our branding of our stores and products as we expand into China. For example: Chinese do not like very sweet flavors, Baskin and Robbins made an alternative chocolate ice cream that had less sugar and included local favorite flavors such as green tea and red bean.
2. Price – As know when we conduct business with foreign countries, their currency rates differ from that of the U.S. dollar and our pricing strategy needs to take those
Throughout history, the Chinese have eagerly adopted new foods and ingredients. The target market of Yogen Fruz has tendency to purchase the latest trends in whatever is tasty and nutritious. In the past, one of the few foods that has not impressed the Chinese diet is dairy products. Currently, however, many dairy products are gaining in popularity amongst the Chinese population. Things like yogurt, various forms of milk, and especially ice cream are now common products. A lot of these dairy products are imported from foreign countries, such as America, Singapore, and New Zealand.
Currently, The Cheesecake Factory’s competitors only offer western style meals and desserts and majority of South Asian restaurants is operated on a small scale mainly by family businesses. This alternative has numerous pros with limited amount of cons. The first pro is that this strategy would increase revenue and customer base immensely. Second, it would greatly differentiate The Cheesecake Factory from its competitors. Also, there not many businesses are not penetrating the market for South Asian meals. The Cheesecake Factory could implement this alternative with ease because they have the required infrastructure to implement and only a small investment is required for this strategy. Another pro for this alternative would reduce the dependence from western meals and it would allow The Cheesecake Factory to build a new brand image. The last pro for his alternative is that international dishes have a very high profit margin because consumers are willing to pay premium
Sociocultural factors influence and restrict consumption ideas, needs, desires and purchase behavior. People from different countries and different regions have different life patterns and different sociocultures. These differences directly influence the products that industries want to produce because people may even have different attitudes and value toward the same product due to different sociocultural factors. With the rapid development of modern society and the continuous improvement of living standards, the degree of attention paid to health has increased. “Franchise businesses continue to pay close attention to their customers' need for convenience, new flavors and, yes,
Also, Yue Sai’s products can’t compete with brands with larger marketing budgets and distribution channels in marketing scale. In order to compensate for this disadvantage, Yue Sai needs to shrewdly utilize its product’s influence on Chinese consumer behavior. For example, using an expensive Traditional Chinese Medicine(TCM) known for its natural medicinal properties will imprint a positive image in Chinese consumers. Since TCM is generally believed to be gentle, healthy, and harmless, it will
Steven Wang, a fluently bilingual American-born Chinese, jointed Carvel Asia Limited in September 1997. After spending three months, he moved to Beijing with a priority mandate to increase Beijing Carvel‘s sales, particularly in the ice-cream cakes category. But he quickly discovered, “this was going to be difficult because there is an amazing lack of information upon which to base any decisions”. Then he relied on his own observations, feedback from Beijing Carvel customers and sales staff, and information gleaned from business magazines and public reports to help him make his decisions. Finally he found that:-
Pricing is a relevant issue in procurement at all levels. Individuals purchasing the commodities of an organization should receive clarity on pricing. There is confusion in this
Rogers’ Chocolate is on a mission to have the company double or triple its size within 10 years. An analysis will be performed to figure out a strategic plan where Rogers’ Chocolate will be able to grow, and maintain their image of providing premium chocolates. The issue facing Rogers’ Chocolate is how they will be able to gain new customers and sustain their current customers. To give a thorough analysis, I will identify and explain the strategic issue, present the results of the analysis, and present alternative strategies. Finally, I will present my recommendation and conclude the analysis.
When selling abroad to another country, there are many barriers. One of which being the fact that selling goods in a foreign country means the commission rates and standard charges will be different. Also, there are certain tariffs set in different varieties of countries. This means that the business may need to pay a fixed amount of money in order to export goods into a different country. Selling abroad also means that the country which you’re exporting to may not speak the same language as the company’s origins. This means that the company need to ensure that they change the language on the advertising banner in
The marketing proposal explores the possibility of expanding CEC into untapped, high growth market areas in China. CEC product is modified to tailor the tastes of Chinese children and families. This proposal looks at the overall country and culture, number of children and
The younger end of our target market consists of college age consumers who are likely to be social media conscious (a free marketing tool that is perfect for a food truck), adventurous, and have access to disposable income that will ensure the cost of our product is not a deterrent. The later half of our target market will focus on young professionals and families who have disposable income and consider themselves ingredient conscious.The quality of ingredients that are synonymous with the Jeni’s brand is perfect for this market. Jeni’s Ice Cream flavors are not the typical kind one would find in a normal ice cream shop and their prices tend to fall on the more expensive side. The younger audience who perhaps still live at home with their parents would generally have extra spending money to spend on superfluous purchases such as ice cream and their taste buds would be more adventurous and open to the different flavors that The Cone Zone and Jeni’s Ice Cream would
Cold Stone Creamery use national marketing strategy but also adapts to use specialized local marketing strategies for its franchisee to help them increase sales. For instance they market themselves for not just giving customer ice cream but rather an “Experience”; they are also targeting the healthier crowd by bringing in healthy smoothies (because they are traditionally known for unhealthy treats). To increase awareness for their healthy smoothies, they are going to offer free smoothies samples at some stores, have smoothies in their menu under “healthy indulgence”, and they are going to give away free samples at Gasparillia Distance Classic Race expo (over 20,000 people attend). They are also bringing in Valpak saving coupons, about 46.6% of the marketing budget, this will help store visits, increase sales and help them tackle their weakness of high prices. In short their national marketing strategy is to reach all target
The final project is going to be about the market entry of Starbucks into China. This project will focus on gauging the success of the company's market entry strategy thus far. Starbucks has announced in a press release that it believes China will be its #2 market by 2014, and the company has been one of the most successful American companies in that market (Starbucks, 2012). The company entered the Chinese market in 1999 with a store in Beijing. This followed the acquisition of greater knowledge about Chinese business culture through outlets in Taiwan. The company initially used a licensing agreement to enter the Chinese market (Starbucks, 2010).
Eating is the most necessary and common thing for everyone and also the most basic activity that is happening every day. With the world development faster and faster, the eating culture is also changing in different ways. However, in different countries they both have their own eating culture, such as the differences between western countries and eastern countries. Especially there are lots of obvious differences between China and the U.S. Although everyone has a common sense of eating that it is just having meals, there are many very different parts about Chinese and the U.S. Eating culture. Because of the differences in geographical features, the climate of the environment, customs and other factors, food products will appear different degrees
Costs play an important role in setting international prices. Travelers abroad are often surprised to find that goods that are relatively inexpensive at home may carry outrageously higher price tags in other countries. Besides, such price escalation may result from differences in selling strategies or market conditions. In most instances, however, it is simply a result of the higher costs of selling in foreign markets such as the additional costs of modifying and packaging the product, higher shipping and insurance costs, import tariffs and taxes, costs associated with exchange rate fluctuations and higher channel and physical distribution costs. Futhermore, Milo also adopted Promotional Pricing strategy. Selling products is challenging when shelves are lined with similar-quality products, and customers are bombarded with advertising messages. Promotional pricing helps differentiate Milo’s product with its competitor and leverage a potential customer's attention long enough to purchase the Milo products. Promotional pricing involves lowering the price of a product, distributing coupons or offering specials, such as buy-one-get-one-free offers. For example, Milo offer promotional pricing for its product in weekly catalogue to create excitement and a sense of
Ice-cream industry has started and sustained in Malaysia market for a long period of time. In recent years, several reports reveal that sales of ice-cream industry in Malaysia has increased and grown to be a major player in food and beverage industry. While there are many reasons behind this, the increment of citizens’ disposable income is considered as a principal cause. (Euromonitor International, 2016)