Marketing and Chinese Toothpaste Market

Distribution channels are organized in several ways: conventional, vertical, horizontal and multichannel (Kern R. 2013). Some of these organizational methods are more structured than others. When a distribution channel deals with more than one independent producer, such as wholesalers and retailers, the channel is known as a conventional distribution channel. (Kern R. 2013) These channels are not normally known to be strong and typically don’t give the customer the quality of product that they deserve. In a vertical marketing system, the retailers, wholesalers and producers, join forces to create a unified front, promoting an individual product (Kern R. 2013). Vertical distribution channels are stronger than the conventional distribution channels because all of the companies involved carry some of the load of power. (Kern R. 2013) In a horizontal distribution channel, companies join up and combine all of their finances and resources, in order to take on more than one company or product (Kern R. 2013). A multichannel distribution channel is where a large corporation uses two or more marketing channels to better target their desired customer segments (Kern R.

This report is based on the ‘L’Oreal: Expansion in China’ case study. L’Oreal is a successful French cosmetic company that involved into many different international markets. This report will discuss how L’Oreal gets into the Chinese cosmetic Market and the strategic to develop their brand in the Chinese market. L’Oreal acquires two famous Chinese cosmetic brands which are Yue-Sai and Mininurse. It is in order to entrance the market quickly and sales the most suitable products. The aim of this report is to define the challenge L’Oreal has been faced. Then it describes how L’Oreal managing their strategic in Chinese market. In addition, it gives an accommodation which could help L’Oreal overcoming these challenges.

This occurs when a business charges the highest price for a product during the introduction stage of its lifecycle. This is typically used when introducing a new, unchallenged product into the market, ensuring high profits before the product has competition. For example, Apple set its price for its iPhone 6 plus exceptionally high due to its advanced features and lack of competitors. This ensured that Apple received high-profit levels before the iPhone 6 plus was challenged by other products. Additionally, this has seen Apple have a high product position and helped cement its brand image, as these higher prices are typically associated with a higher quality product. This has subsequently improved market share and profits.

The rapid growth in the number of seniors in America and around the world is creating a global demographic revolution without precedent. During this century, advances in hygiene and water supply and control of infectious diseases have reduced the risk of premature death much. As a result, the proportion of population over 60 years in the world is growing faster than in any previous era. In 1950 there were approximately 200 million people aged over 60 worldwide. By 2000 there will be over 550 million, and by 2025, the number of people over 60 is expected to reach 1,200 million.

• Consumer Behavior: In different countries consumers will respond differently to advertising, product positioning and the kind of distribution. Also the willingness to spend a certain amount of the income for cosmetics differs among countries. Another important factor is the consumer’s willingness to switch the brand.

Kaneda, Toshiko. "China's Concern Over Population Aging and Health."China's Concern Over Population Aging and Health. Population Reference Bureau, June 2006. Web. 07 Apr.

years old) and the old (older than 65) in China and in other countries. Illustrate the effects on world real

Population aging is present in every country both developed and developing country; people are living longer than their previous generations. “In 2012, the United States had the largest number of people in the oldest-old age category among developed countries” (Ortman et al). Much of this aging is due to the United States is facing the effect of the retirement of the baby boomers. This generation has been completely active in the businesses and the economic growth. However, the development of science and technology will help the balance of the impact of changing demographics.

P&G’s significant Pricing tactics are defining different prices for different brands to satisfy different customers. For example, no matter how much money the customers want to spend on hair care shampoos, P&G’s products can always satisfy customers’ needs. In addition, P&G always has great discounts such as buying a large one get a small one for free at holidays.

In 2017, the world population is at 7.5 billion people. China is the most populated country in whole world. It has “1.379 billion” (Google) people making it the largest populated country. China is also the most largest aging population making it have a high life expectancy and the high accelerating aging rate in the world (Zheng, 2012). China has advanced with technology and also with age. Only “three decades ago, only 5 percent of the populations was over 65; today, 123 million people, or 9 percent of the population, are over this age which a report released by the government states that China will be the world's’ most aged society in 2030” (Huang, 2013). Since, China is the most largest aging population this means that less people are dying and more are living. Since, more people are living this means that need of long-term care, health insurance, adjustment of policies and how to make everyone comfortable living. China is the only country that has an older population exceeding 100 million and annually increases at a rate of 3.2. A dependent territory of China is Hong kong that has “7.347 million people” (Google). Hong kong also has a fast growing aged population. Hong kong is also trying to adjust their long-term care system, pensions system and policies to accommodate everyone living situation.

The buyers in this sector are individual households. People use toothpaste for their own personal use. “The customer power is magnified when the market has many sellers and fewer customers. The switching cost from one seller to another is another

The definition of Premium pricing strategy is, using a high price where there is uniqueness about the product or service. This approach is used where a substantial competitive advantage exists. Such high prices are charge for luxuries, free delivery-pick- up service, service quality, special chemical free products and prestigious presentation.

The blog titled "China 's aging population" describes how the increase in population is a growing concern for the country. The reason for selection of this topic is to explore how the increase in aged population of China is causing an impact on the country 's economic system. The increase in population is a serious issue of concern, which is well controlled by the government through introducing one-child policy (Peilin, 2015). This parameter has however resulted into several side effects such as increase in aged people in the country. As a result of this, the expenses associated with elderly people is also increasing, which is an interesting area focused in the blog. It was rather a good choice of topic as it helped in exploring how the increase

The world’s population is ageing rapidly. Between 2000 and 2050, the proportion of the world's older adults is estimated to double from about 11% to 22%. In absolute terms, this is an expected increase from 605 million to 2 billion people over the age of 60.

P&G is a multinational Organization of consumer goods situated in United States. It sells products like personal care, cleaning agents, pet foods. The P&G Company is well known for its unique strategy which cares about the need of human. It not only makes its product available to its consumers but also tries to improve the life of its consumers. This strategy is more focus on its consumers wants and that is why it has an appeal to the heart of the consumer. The company has diversified its product line and also acquired other companies which have significantly contributed in the growth of their profitability.