international product launch - china
DESCRIPTION
TRANSCRIPT
Haribo’s Gummy Bear -Introduction to the Chinese
Market
1
Structure
1. Executive Summary
2. Business Description
3. Business Environment Analysis
3.1. Industry Analysis
3.2. Competitive Analysis
3.3. Market Analysis
4. Marketing Plan
5. Operations Plan
6. Financial Plan
7. Conclusion
10/04/2023 2
Executive Summary
B. Environment Analysis
Marketing Plan
Operations Plan
Financial Plan
Business Description
Export of the original Haribo “Goldbears” to Greater China in a market-adapted form
• Global branding, local marketing
Premium product, targeting the growing Chinese upper and middle class and its demand for foreign high quality products
USP: German quality, western brand, premium product, high quality ingredients, affordability, minor product adaptations to Chinese preferences
Aggressive in-store and contemporary media advertising
Partnerships & cross-selling with established strong western and local food chains
Highly profitable business in a growing industry, break-even is expected to be in December of 2016
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Business Description
B. Environment Analysis
Marketing Plan
Operations Plan
Financial Plan
Executive Summary
Business DescriptionHaribo will export the original “Goldbears”
to China
Gummy bears are pertaining to the
confectionery industry and are already
highly profitable in 22 countries around
the world
The businesses headquarter is in
Germany
A production plant will be rented in
Suzhou serving the Chinese market
Retail and expansion will start in
metropolises and then permeate
throughout the interior of the country
The German origin will serve as a seal of
quality
4
B. Environment Analysis
Business Description
Marketing Plan
Operations Plan
Financial Plan
Executive Summary
Industry Analysis – Porter‘s 5 Forces
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Chinese Confectionery Industry
Moderate Rivalry
Substitutes:
> chocolate> gum> savory snacks> fresh fruit
> low switching costs
Suppliers:
> exclusive deals with selected raw material suppliers
> commodity marketBarriers to enter/exit:
> capital assets (building, machinery etc.)> venture capital> economies of scale> technological advancement to avoid imitation
> high barriers to enter/exit
Buyers:
> young girls & women, kids> wholesalers & retailers> supermarkets & kiosks> franchisees
> Tendence towards higher customer loyalty
> price sensitivity
B. Environment Analysis
Business Description
Marketing Plan
Operations Plan
Financial Plan
Executive Summary
Industry Analysis
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HARIBO‘s projected Market Share (%)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 -
2,000,000,000
4,000,000,000
6,000,000,000
8,000,000,000
10,000,000,000
Confectionery Industry Volume (in bn $)
B. Environment Analysis
Business Description
Marketing Plan
Operations Plan
Financial Plan
Executive Summary
Market Analysis
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• Quick imitation• Many market entrances with
domestic manufacturing• Local producers are acquiring
Japanese and Korean
technology• Market distinctively price-driven• Sales are seasonal, strongest in
winter• Traditional reluctance to product
• Steady market growth• Rising standards of living and
disposable incomes• Orientation towards quality and
foreign confectionery• Chinese producers slow to introduce
new candy products• Candy is capturing the younger
Chinese consumers as a trend and as a new taste
• Innovative packaging and novelty candy are scarce and underdeveloped
• Rural areas are under-supplied
• German quality standard• Established worldwide brand-
awareness• Tradition, int. experience
• Limited market research information on the Chinese market
• No expertise in the Chinese market
SWOT
B. Environment Analysis
Business Description
Marketing Plan
Operations Plan
Financial Plan
Executive Summary
Competitive Analysis
8
- Lovers
Quality
Price
- Lovers
- Lovers
- Lovers
Price
Quality
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B. Environment Analysis
Marketing PLan
Business Description
Operations Plan
Financial Plan
Executive Summary
Marketing Mix Objectives
To become the most popular gift item of choice in China
To become a childhood favorite for girls & boys
To develop a long-term strategy which could differentiate our product10/04/2023 9
To become a strong competitor in the Chinese confectionery industry
B. Environment Analysis
Marketing PLan
Business Description
Operations Plan
Financial Plan
Executive Summary
ProductOriginal Gummy Bear Package
• Large packages• Miniature packages
(family pack)
Haribo‘s brand identity will be maintained
Adaptions to Chinese tastes• Flavor• Package• Slogan
Real fruit juice, all natural
ingredients
German quality standards 10/04/2023 10
Goji Berry
Green Tea
Ginger
Lucky Panda
B. Environment Analysis
Marketing PLan
Business Description
Operations Plan
Financial Plan
Executive Summary
Product Design
10/04/2023 11
Germany China
B. Environment Analysis
Marketing PLan
Business Description
Operations Plan
Financial Plan
Executive Summary
Promotion
Advertising o Billboards, posterso Airplaneso Subway (Shanghai Metro)o TV : CCTVo In store promotions
Install local internet platform (389 million users)
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B. Environment Analysis
Marketing PLan
Business Description
Operations Plan
Financial Plan
Executive Summary
Promotion
Contracts with already established chains
oMcDonalds
oCold stone
oSushi Chains (dessert sushi)
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B. Environment Analysis
Marketing PLan
Business Description
Operations Plan
Financial Plan
Executive Summary
Price
Competitor and market oriented
Low price compared to Germany
4 Chinese RMB per large
package (0.4745€)
6 Chinese RMB per
family package
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B. Environment Analysis
Marketing PLan
Business Description
Operations Plan
Financial Plan
Executive Summary
Distribution
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Establish contracts with :
1) International supermarket chains :
2) Convenience stores : Quick of LianHua, Alldays & Kedi of NGS
3) Specialty stores : GOME, Suning
B. Environment Analysis
Marketing PLan
Business Description
Operations Plan
Financial Plan
Executive Summary
Distribution
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Opening of a flagship store in Shanghai in 2014
Place : The Nanjing Road,
The busiest
luxuriant commercial
strip in Shanghai
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Worldwide Distribution
Expansion Strategy
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201320152017
B. Environment Analysis
Operations Plan
Business Description
Marketing Plan
Financial Plan
Executive Summary
Workflow
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10/04/2023 20
Aug 12 Sep 12 Oct 12 Nov 12 Dec 12 Jan 13Week 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th 14th 15th 16th 17th 18st 19th 20th 21st 22nd
Rent production plant
Hire a representative
Prepare legal documents
Present 5 year plan
Register business
Renovate Plant
Buid business relationships
Register trademark
Hire staff
Staff training
Website desgin
Develop marketing campaign
Get approval for adds
Meet with representatives
Launch marketing campaign
Hire promotion staff
Start promotion
Final launch of product
Selling expense
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Advertising / Promotion expense
10/04/2023 22
Distribution expense
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Pro forma annual profit & loss statement
10/04/2023 24
Thank you for your attention !25