Nutrasweet in China Essay

1101 Words5 Pages
Professor Sethi Anju
11/04/10

NUTRASTWEET IN CHINA CASE

By: Andres Jimenez (Session1)

Raymond Nicolai (Session 3)

Fernando Medina (Session 1)

To come up with a decision to the whether enter the Greater China Market or not we decided to approach the case with a SWOT analysis.
Strengths
NutraSweet is an artificial sweetener that is one of the most recognized brand names in the United States and in the world. NutraSweet’s earnings per share is $ 6.36 and with huge capitalization and investments in diverse products. Stacey has the approved budget of $ 500,000 to market NutraSweet in China. NutraSweet has the flexibility on how to position their product in terms of functionality, or either as sugar substitute or health
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There are only very few foreign agents that operate in China. Sugar use and consumption levels differed among 3 key markets –Shanghai, Guangzhou, and Beijing. Arthur Andersen survey in China showed that most joint ventures from food and drink were not profitable. Most MNCs in China are unprofitable despite substantial growth. Majority of the Chinese are considered “flat-bellied” and don’t see the need for a diet regimen. The Chinese culture also dictates that they are not that concerned with their teeth, hence they don’t have that fear of tooth decay.
The company should enter the Greater China market as a niche product for consumers with a medical need.
The company cannot delay its entry in the China market, especially with factors such as an average of 10% economic growth, a quickly emerging middle class, and a high possibility in consumers’ increase purchasing power. Postponement of entry may mean higher costs in the future and although the company will not immediately profit from the venture, research showed that companies who entered the market 5 to 10 years ago were doing best. The knowledge gained from market entry will allow NutraSweet to sharpen its future strategies.
Pros
The successful experience in establishing medical awareness in Hong Kong may be applied to the Greater China Market. Entering the Greater China market through the three key cities will provide a better knowledge of the overall Chinese market. A natural market consisting of diabetics and

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