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Methodology
Research Topic:
Marketing Strategies: A Comparative study of
INDIA and CHINA in consumer Goods (20002015)
1.1
Introduction
Marketing strategy is the fundamental goal of increasing sales and achieving a sustainable
competitive advantage. Marketing strategies include all basic, short-term, and long-term
activities in the field of marketing that deal with the analysis of the strategic initial situation of a
company and the formulation, evaluation and selection of market-oriented strategies and
therefore contribute to the goals of the company and its marketing objectives. Success of FMCG
depends greatly on marketing strategies.
For several reasons, first, infrastructure in marketing is underdeveloped, including transportation
systems, media development, and the severe shortage of qualified marketing personnel. Firms
attracted to the long term potential of this vast country must remember to pay sufficient attention
to the basics of producing, distribution and marketing a successful product (Country Commercial
Guide 1998).
After 30 years of rapid growth, China is now the world's second-largest economic country .
Marketers look to build brand awareness and perception among Chinese consumers, television
advertising will play its part. But as marketing priorities shift away from brand development
toward sales and geographic expansion, other media are likely to play a critical role. In
particular, marketers will likely be formulating integrated marketing communications strategies
across a variety of Chinese consumer touchpoints. Chinese companies believe more in word of
mouth. Across the board, a majority of Chinese companies are using marketing and PR efforts
TV, online, print, sponsorship,etc.but not as much as their multinational counterparts . Different
marketing strategies are adopted regarding consumer goods in India .Indias company make
strategies according to their culture ,norms etc ,Indias FMCG companies use Multi brand
Strategy
like
Product
Flanking
which
Refers to the
introduction
of
different combinationsof products at different prices, to cover as many market segments as possi
ble. In India, the wealthy urban middle class influenced by the West is growing
and advertising campaigns include and consider the more current values and
trends.
1.2
Statement of purpose
The purpose of the study is to find out the impact of marketing strategies in Consumer goods of
India and China.
1.3
Research Question
What is the impact of marketing strategies on India and China in Consumer goods?
1.4
Objectives
Research Methodology
The proposed research is conducted to analyze the Marketing strategies of India and China in
Consumer goods. For this too much work is done at International level. As the topic is very vast
and primary data collection is very costly and time consuming.
Different Qualitative methods will be used to analyze the marketing strategies of India and
China.
We will use only Published/Secondary data. Data will be mostly collected from Research
journals, Business journals, published articles and web browsers.
1.6
Literature Review
China has emerged as the second largest economy in the world , as measured by purchasing
power parity gross domestic product (Dahlman and Aubert 2001). Chinas Market in expected to
grow and develop rapidly ,for example , Kenichi ohmae recently stated that it took the asian
tigers more than fifteen years to build their economies as symbols of development,it is taking
China only a few years to supplant them ( Mc Gregor and Bala 2002,p.33)
Rex Wong, vice president of marketing for Asia at Anheuser-Busch InBev (AB InBev)
China, the multinational beverage giant with 20 brands in China, said television is an integral
part of AB InBevs marketing strategy.Television is the highest reach medium for
everyhousehold in China, said Wong. AB InBevs approach to television advertising, however,is
not one-size fits all. We are very specific about which channels in which regions we are
advertising on ( Wong.2010). Wong, for one, described AB InBevs marketing game
plan in China as 360 degrees, a fully integrated plan encompassing television, mobile,
billboards, sponsorship,and online.
Pestridge of Nike said not to write off television as a dying medium in China. There is a lot of
commentary about how it is diminishing, but it could play a very important role, particularly in
cities where there is not as much access to Internet. But the cost of broadcast is a one of the
major obstacles to marketing in China. Generally, the price of media is a challenge, but
television in particular, (Zhu. 2011).
Tian, of JOVI, is a big believer in word of mouth. Infact, he credits word of mouth for the
overnight success of JOVIthe restaurant chain, within six months of opening,
had been approached for a franchising deal in Hong Kong.Customers are our best advertising.
They are informed and will just send a link to a friend or relative,( Tian .2011). But for the
Chinese companies, the importance of PR as a marketing strategy only jumps minimallyfrom
38% saying it is important now to 45% saying it will be important in three years, indicating that,
perhaps, there is something lost in translation about the value of PR in China. For Tian of JOVI,
hiring a public relations firm, even with all the expansion of his brand, is not on the horizon.
The immediate value proposition just isnt clear to him. We are very closely connected to our
customers and prefer to have no proxy between us, (Tian.2011) whose only investment in
advertising so far has been 5,000 yuan to put up a coupon online.
Moving forward, digital and mobile marketing is a critical part of the mix for all Consumer
goods in China, as marketers seek to integrate their message across both traditional and digital
platforms. Leow, whose agency focuses mostly on marketing to the under-30 set in China,
contends that digital is almost all that matters among younger consumers. The Internet is their
primary consumption and sharing platform for everything they do, (leow.2012).
If you look at the trends, people in China are spending more and more time online, so we are
going to spending more resources on the Internet as a result.(wong . 2000).
By the year of 2030 India, the world largest democracy, is estimated to be the third largest economy
in the world (Swedish Trade Council, 2009c).
The driving force in the Indian economy is the growing number of people from
the middle class, which currently consists of over 300 million Indians which are
consuming progressively more Western brands and products (Swedish Trade
Council, 2009b). Bhatia & Bhargava (2008) suggests basing the advertising in
India on glocalization. TV advertising has increased significantly in India in the
past years (Bhatia & Bhargava, 2008). Choo et al. (2004) more and more Indians
(at least urban consumers) now have greater access to independent sources of
information than before; for example they search for information about products
on the Internet. (Choo et al. 2004)