Building Consumer Good Brands in China
From the Perspective of Enterprises from Western Countries
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Diploma Thesis from the year 2004 in the subject Business economics - Marketing, Corporate Communication, CRM, Market Research, Social Media, grade: 1,5, University of Applied Sciences Constanze (Wirtschafts- und Sozialwissenschaften), language: English, abstract: Inhaltsangabe:Abstract:Against the backdrop of the Western world s saturated and fatigued consumer goods markets, the evolving of China s new consumerism is probably among the most thrilling developments of our days. While the run of foreign companies for China is going on uninterruptedly and many are still struggling with rudimentar...
Diploma Thesis from the year 2004 in the subject Business economics - Marketing, Corporate Communication, CRM, Market Research, Social Media, grade: 1,5, University of Applied Sciences Constanze (Wirtschafts- und Sozialwissenschaften), language: English, abstract: Inhaltsangabe:Abstract:
Against the backdrop of the Western world s saturated and fatigued consumer goods markets, the evolving of China s new consumerism is probably among the most thrilling developments of our days. While the run of foreign companies for China is going on uninterruptedly and many are still struggling with rudimentary difficulties like distribution or production planning, the market is already entering the next stage of competition: the competition of brands.
This thesis lays out how foreign (Western) consumer good brands need to be developed in the PR China to ensure long-term market success and a sustainable strong standing with the Chinese consumers.
In a first step, this author shortly analyses the situation of existing Chinese and foreign brands in terms of overall market conditions, market trends, domestic or foreign brand dominance, and factors for success or failure.
A second step specifies relevant urban Chinese consumer groups according to socio-demographic factors, the consumers general living conditions, lifestyles, and perspectives. A preface on the Chinese system of values delivers the background for further understanding of this paragraph.
Subsequently, the core part of this thesis is concerned with brand positioning, branding and brand communication as integral elements of brand building. It introduces modern status-quo concepts from Western brand building practice for each element. With reference to the findings from the preceding brand and consumer analyses, this author discusses in detail how companies can implement and adapt these elements and concepts to the requirements of the Chinese context. Promising options as well as possible challengesand risks are pointed out accordingly. Relevant examples from the current brand scene in China, such as Wall s, Lenovo, BMW, Haier, or Samsung, illustrate these recommendations and suggest creative starting points for further exploration.
Major findings of this thesis are that Western brands need to maintain strong symbolic values, and that comprehensive brand building based on brand substance and personality may be the key for sustainable success. Particular focus is to be on durable, close brand-consumer relationships. A main challenge for Western brands will be the adaptation of brand communication to the local consumer requirements. Furthermore, this thesis supports the assumption that the Chinese market must be broken up into regional markets, and that the scope of brand building activities will need to go beyond the limits of Beijing, Shanghai and Guangzhou in the near future.
In addition to extensive literature review, findings from an intensive research travel to Shanghai and surrounding areas in November/December 2003 delivered the necessary practical basis for this thesis. Observations and anecdotal reference from this author s various earlier stays in different parts of the PR China further illustrate the information given. A Multimedia CD-Rom with a number of photos and video clips from Chinese mass advertising, packaging design, and everyday consumption life is enclosed.
This thesis was written in co-operation with a German brand consulting agency.
Zusammenfassung:
German Abstract: Die vorliegende Arbeit stellt dar, wie ausländische (westliche) Konsumgütermarken in der VR China aufgebaut werden sollte, um langfristigen Markterfolg und eine nachhaltig starke Position bei den chinesischen Konsumenten einzunehmen.
Das erste Kapitel beinhaltet eine kurze Analyse der derzeitigen Situation von bereits existierenden chinesischen und ausländischen Marken in Bezug auf allgemeine Marktbed...
Against the backdrop of the Western world s saturated and fatigued consumer goods markets, the evolving of China s new consumerism is probably among the most thrilling developments of our days. While the run of foreign companies for China is going on uninterruptedly and many are still struggling with rudimentary difficulties like distribution or production planning, the market is already entering the next stage of competition: the competition of brands.
This thesis lays out how foreign (Western) consumer good brands need to be developed in the PR China to ensure long-term market success and a sustainable strong standing with the Chinese consumers.
In a first step, this author shortly analyses the situation of existing Chinese and foreign brands in terms of overall market conditions, market trends, domestic or foreign brand dominance, and factors for success or failure.
A second step specifies relevant urban Chinese consumer groups according to socio-demographic factors, the consumers general living conditions, lifestyles, and perspectives. A preface on the Chinese system of values delivers the background for further understanding of this paragraph.
Subsequently, the core part of this thesis is concerned with brand positioning, branding and brand communication as integral elements of brand building. It introduces modern status-quo concepts from Western brand building practice for each element. With reference to the findings from the preceding brand and consumer analyses, this author discusses in detail how companies can implement and adapt these elements and concepts to the requirements of the Chinese context. Promising options as well as possible challengesand risks are pointed out accordingly. Relevant examples from the current brand scene in China, such as Wall s, Lenovo, BMW, Haier, or Samsung, illustrate these recommendations and suggest creative starting points for further exploration.
Major findings of this thesis are that Western brands need to maintain strong symbolic values, and that comprehensive brand building based on brand substance and personality may be the key for sustainable success. Particular focus is to be on durable, close brand-consumer relationships. A main challenge for Western brands will be the adaptation of brand communication to the local consumer requirements. Furthermore, this thesis supports the assumption that the Chinese market must be broken up into regional markets, and that the scope of brand building activities will need to go beyond the limits of Beijing, Shanghai and Guangzhou in the near future.
In addition to extensive literature review, findings from an intensive research travel to Shanghai and surrounding areas in November/December 2003 delivered the necessary practical basis for this thesis. Observations and anecdotal reference from this author s various earlier stays in different parts of the PR China further illustrate the information given. A Multimedia CD-Rom with a number of photos and video clips from Chinese mass advertising, packaging design, and everyday consumption life is enclosed.
This thesis was written in co-operation with a German brand consulting agency.
Zusammenfassung:
German Abstract: Die vorliegende Arbeit stellt dar, wie ausländische (westliche) Konsumgütermarken in der VR China aufgebaut werden sollte, um langfristigen Markterfolg und eine nachhaltig starke Position bei den chinesischen Konsumenten einzunehmen.
Das erste Kapitel beinhaltet eine kurze Analyse der derzeitigen Situation von bereits existierenden chinesischen und ausländischen Marken in Bezug auf allgemeine Marktbed...
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