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Tesco find their 'secret weapon' fails in China

Tesco find their 'secret weapon' fails in China | BUSS4 Section A | Scoop.it
Qing Wang reveals how Tesco needs to understand the Chinese shopper if it is to crack the second biggest economy in the world
Ellie McGuirk's insight:

It can be said that Tesco were simply too ethnocentric in their approach to entering in to the Chinese market. Not only were they late to enter the market (allowing competitors such as Wal-Mart to reap the rewards associated with being the first mover) but they also overestimated the typical Chinese consumer particularly with regards to their clubcard scheme. Chinese consumers are driven by bargains and  are often labelled as being ''variety-seekers'' therefore meaning they are less likely to be driven by brand loyalty. 

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Pampers Pampers the Chinese – The Golden Sleep Campaign - Budding Markets

Pampers Pampers the Chinese – The Golden Sleep Campaign - Budding Markets | BUSS4 Section A | Scoop.it
1) No Diapers in Traditional China In traditional Chinese culture the disposable diaper is pretty much non-existent. Instead, they use ‘Chinese split pants’ or otherwise known as kaidangku. Babies wore more durable forms of diapers, such as cloth diapers, or … Continue reading →
Ellie McGuirk's insight:

This is an example of how Pampers used different techniques in order to ensure they were successful when re-entering the Chinese market. Pampers faced a struggle the first time when entering the Chinese market opting for a low cost, low quality product; however it was unfeasible for the Chinese consumer for various reasons. One being disposable diapers go against Chinese culture as they opt for either cloth diapers or none at all. Secondly in China there is a one child policy in place meaning parents tend to opt for the best products money can buy. Pampers developed a diaper that was high quality yet low cost for the consumer and developed the ''Golden Sleep'' campaign. Pampers focused on the fact that China is a society obsessed with academic achievement and linked scientific research of more sleep to improving the chances of better cognitive development; having created a product whereby intensive research suggested that babies who slept in pampers disposable diapers fell asleep 30% faster and for an extra  30 minutes.

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How P & G Brought the Diaper Revolution to China

How P & G Brought the Diaper Revolution to China | BUSS4 Section A | Scoop.it
A little more than a decade ago, Procter & Gamble faced the ultimate marketing challenge: It didn't just have to persuade Chinese parents that its diapers were the best. It had to persuade them they needed diapers at all.
Ellie McGuirk's insight:

Now Pampers is the number one selling disposable diaper in China, and they have collated a massive 30/45% market share of the $1.4 billion market. Not only that China is said to be experiencing it's fourth ''baby boom'' and growth is projected to rise by another 40%. Furthermore Pampers have begun outsourcing their manufacturing, successfully reducing high transportation, shipping, inventory and stocking costs. 

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