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32

7

16

8 8 610

17

37

90

Russia Germany Japan India US

20132050

UK Brazil France Italy China

Top Ten Countries with the Largest Population Aged 80 Years or Over in 2013

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Marketing Research

SILVER IS THE NEW GOLDInnovative Marketing Approaches to an Ageing China

Mitchell Alexander25052756male20@student.monash.edu.au

Hongsheng Zhang25370197hzha222@student.monash.edu.au

Vu Diem Hang Le25225227vdle4@student.monash.edu

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Criteria for success for CSGroup

Tailored to business needs

Transferable to other SMEs at high level

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1

2 4 5

3

Review of latest thinking

Enviromental Analysis

- Shared vocabulary- Field research design- Literature critique

Information synthesis

- Draft report- Solution development

Report finalisation &delivery

Field Research

- Business visit- Observation

- CSG Analysis- Aged care market analysis

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Enviromental Analysis

Research Summary

Recommendation

Introduction

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Environmental Analysis

02AGEING POPULATION

& URBANISATION

03FAMILY STRUCTURE

04ROLE OF GOVERNMENT

05TRADITIONAL CULTURE PERCEPTION06

“ME” CULTURE

07COMPETITORS

08LACK OF PROFESSIONALS 01

CSG CURRENT POSITION

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Environmental Analysis

CSG Current Position1

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Est. 1988

Healthcare service provider

Australia -- Aged care, Disability care, Foster care and Family support services

In Home Service or in Facility

Looking to expand overseas

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Environmental Analysis

Ageing Population & Urbanisation 2

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175 million330 million

Share of population aged 60+

2013

13.8%

Share of population aged 60+

Expect in 2050

25%

Over half of the ageing population lives in urban area.

Lack of supply

Opportunity arise

(UN, 2013)

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Environmental Analysis

Family Structure

4-2-1 Family Structure

3

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One Child Policy

4 grand parents, 2 parents and himself

All six elderly depends on one younger generation

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Environmental Analysis

Role of Government

90% Aged Care at Home

7%GovernmentFacility

3%PrivateFacility

4

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Shortage on supply

Encourage private investment

SMEs - small investment, hard to get government attention

Business model align with government policy

Government 973 Policy

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Environmental Analysis

Traditional Culture Perception5

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Young people have to take care of old people in family

Aged care facility is not socially accepted

Concept of "Unfilial"

Elderly prefer to stay in the community

Aged care facility is not an option for many Chinese

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Environmental Analysis

"Me" Culture6

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Originated from younger generation

Strong self-expression and identity exhibition.

Influence the elderly

Elderly - more disposable income and more free time

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Environmental Analysis

Competitors7Chinese local health care provider Yanda commenced $2 billion project near Beijing.

Vanke ( 万科 ) is announced the plan to age care industry.

US health care franchise Right at Home is reaching its netwok in China

Competitive is getting intense

Brand Australia are perceived as healthy and natural, align with core business

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Yanda Golden Age Nursing Centre

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Environmental Analysis

Lack of Professionals 8China need approximately 10 million caregivers

Only 300,000 caregivers in the country, and most of them have no formal qualifications

Shortage in HRIntroduction Enviromental Analysis Research Summary Recommendation

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Environmental Analysis

Issues and OpportunitiesIssue Opportunity

CSG Current Position

Ageing Population and Urbanisation

Family Structure4-2-1

Role of Government(Government Relationaship)

Traditional CulturePerception

“Me” Culture

Competitors

Lack of Professional

Lack of Supply

Expanding oversea Aged Care service entering China

Growing Demand

Burden on younger generation Possible service to ease the load

Hard to compete with large com-pany to gain government support.

In Home Service align with government vision.

Chinese elderly looking for alternative aged care solution

In Home Service align with customer’s need

Elderly are more self-expressed and identity exhibited

More individualism, more willing to pay for quality goods/service.

Many new entries and cross over from other industry

Shortage in HR supply With demand increase, Supply will gradually catch up

Brand Australia’s perceived value aligned with core business

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Marketing is the process of building profitable customer relationships by creating value for customers.

Marketing oriented toward strong, lasting relationships with individual accounts.

Research Summary

What is Marketing

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Research Summary

So... what is important in a relationship?

Listening &Understanding

Exchange Benefits Communicating the Right Message

Enhance the Trust

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Academia

China

Consultant

Our Recommendation

Research Summary

Venn Diagram

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Research Summary

How to understand what Chinese values are?

Culture exerts the broadest and deepest influence on consumer wants and general behaviour (Kotler, 2009).

Lack of understanding of consumer needs has led to failure when doing business in China (HBR).

Getting to the human truths is crucial. (DDB)

ACADEMIA CONSULTANT CHINA TRIP

Identifying, recognizing and articulating the wants and needs of the Chinese aged care market will help CSGroup to deliver an innovative approach to service delivery.

KEY INSIGHT #1

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Research Summary

How to deliver your service to fit their needs

Service quality heavily influences overall perception of offering (Wilson, Zeithaml, Bitner & Gremler, 2012)

China progressing into a service economy, expects better service (Accenture)

Cloudscreen Campaign (DDB)

ACADEMIA CONSULTANT CHINA TRIP

Once the needs and wants are known, companies require a service or product offering that is suited to the needs of consumers.

KEY INSIGHT #2

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Research Summary

How to communicate your values?

Communication challenges arise from the varied and at times fractured advertising landscape in China. (Lin & Huang, 2006),

Gaining trust can be achieved through delivering the right message – but advertising alone if not enough (McKinsey).

Charismatic speakers. (New Oriental)

ACADEMIA CONSULTANT CHINA TRIP

Delivering the unique value of CSGroup service requires a more interactive process than ordinary advertising, promotion and communication methods.

KEY INSIGHT #3

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Research Summary

How to enhance the relationship?

Marketers must work closely with a variety of partners, to jointly bring more value to consumers (Kotler, Adam, Denize and Amstrong, 2009).

Partnerships help businesses to gain understanding and knowledge about the local market (Bain and Co).

Tier 2, 3 cities focus. (Lenovo)

The healthy Guanxi. (Mary Kay, Adsmith)

ACADEMIA CONSULTANT CHINA TRIP

Partnership to add more values and selecting appropriate market target are two solutions for CSGroup to enhance the trust from Chinese consumers.

KEY INSIGHT #4

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Understanding needs Meeting consumer needs Communication innovation Building, maintaining and enhancing relationships

CSG position

Ageing and moving population

Family structure

Government

Traditional culture

“Me” culture

Competition

Skills shortage

Market research

Targeted entry

Modify service offering

Key opinion leaders

Freemium service

Key partnerships

Mergers & acquisitions

Research Summary

Matrix

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Diagnostic 1: Eyes & EarsPurpose:To better understand, articulate and meet consumer needs

Tools:Market research and target segmentationModified service offering

What They Said:“Ask not what China can do for you, ask what you can do for China”

James Campbell, ANZ

Diagnostic 2: Verbal Test

Purpose:To influence consumer perception of service offering.

Tools:Freemium service/consumer trialsKOLs

What They Said:“In China, experiencing something is believe. Don’t tell them, show them”

Qinrong (Victor) He,New Oriental Education Group

Diagnostic 3: Mobility TestPurpose:To enhance strong frame and flexibility of body

Tools:Government partnershipsMergers and acquisitionsTargeted entry strategy

What they said:“Guanxi is important in China, but relationships are vital everywhere. The Chinese just have a cool word for it”

Mike Golden, Adsmith

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Targets Achievable

Opportunity Identified

Help AvailableMarketing Research