Mention minor product adjustments as well (part of local marketing e.g. coke)
Demand for these tasty delicacies, once considered too foreign a taste for the Chinese palate, has been steadily growing. Esp. since living standards have been rising.Better retail and distribution facilities. Whiletraditionally sales restricted to the winter months, and many foreign brands are now sold in shops all year round. New year has always been zenith of candy salesWe realized China's confectionery market is rapidly transforming to our benefit, creating various opportunities for foreign exporters.Candy occupies a special place in Chinese culture–it is a gift item of choice. traditionally Given to family or guests at weddings symbolizing happiness “happy candy” has therefore created a niche sub-sector in the confectionery ind. in China
By 2011, the Chinese confectionery industry has grown to almost 8 billion dollarsChina has become the world’s second-largest confectionery producer by volume after the United States. There are more than 2,000 candy manufacturers in mainland China. 10% of the market in 2016!!!
O:-Chinese market is growing at a rate of 12 to 15 %.
gums, candy, crackers and chocolateWant Want, the largest rice cake and flavored drinks maker in Taiwan. It engages in the manufacturing and trading of snack foods and beverages and operates over 100 manufacturing plants in Mainland China where it employs over 60,000 people. Mars Foods have two chocolate factories in China. These two factories produce brands including SNICKERS®, M&M'S®, DOVE® and CRISPY®. Mars sells their chocolate products through hundreds of distributors and a large number of National Key Accounts.Lotte Confectionery is a South Korean company which manufactures and sells more than 200 products to more than 70 countries. It is the No.3 chewing gum manufacturer in the world. Since 1993, Wrigley's has grown into the largest confectionery company in China, and its products are among the widest distributed consumer goods in the country.
All our main competitors, who are already selling in China, are producing in China with their own production plants. Therefore and also in order to save shipping costs we decided to also rent one. Our plant will be located in Suzhou which is located in the Yangtze River Delta, one of the most industrial regions in China. The infrastructure there is very well established which will facilitate the transportation to our retail stores. We first decided to start selling our products in major cities in the coastal areas, such as Shanghai, Beijing, Dalian, Qingdao, and Hongkong. Within two years we then want to expand the distribution of our product throughout all of China. In this graph we have illustrated this expansion strategy until 2015 and finally until 2017
Next I want to talk about our operational plan and the steps we have to take until the final launch of our product.
First of all we’ll have to find the right plant based on our transportation and logistics needs. We’ll then hire a representative who will help us translate all the necessary documents, prepare our business registration and can speak to the local officials for us. Next we’ll prepare a detailed 5 year plan. This plan is crucial because we can only register our business after the plan has been approved by the Chinese government. After successfully registering our business we will then start to renovate our plant and start buying equipment. Because relationships are crucial to doing business in China successfully we will also travel to china and try to build as manny connections as possible by visiting tradeshows and fairs and talking to local business owners. Our next step will be to hire and start training our staff members. Besides from some employees in key positions we will try to fill all available positions will local Chinese. The next step will be the crucial phase for our product launch. We will design a marketing campaign that is especially adapted to the needs and preferences of the Chinese customers. After the Chinese governbemt has approved this campaign we will meet with representatives from already established chains like McDonalds to further discuss cooperation with them. We will then finally launch our marketing campaign and at the same time start our promotion campaign.In January 2013 we will then finally launch our product. We choose January because it is right before the Chinese New Year. In China our Gummibears are known as a popular gift for special occasions so this will boost our initial sales even more.
International Product Launch - China
Haribo’s Gummy Bear - Introduction to the Chinese Market 1
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 218/10/2012
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 201618/10/2012 3
Haribo will export the original “Goldbears” toChinaGummy bears are pertaining to the confectioneryindustry and are already highly profitable in 22countries around the worldThe businesses headquarter is in GermanyA production plant will be rented in Suzhouserving the Chinese marketRetail and expansion will start in metropolisesand then permeate throughout the interior of thecountryThe German origin will serve as a seal of quality 4
Substitutes: >chocolate >gum >savorysnacks >freshfruit Buyers: >lowswitchingcosts > young girls & women, kids > wholesalers & retailers > supermarkets & kiosks >franchisees Chinese Confectionery Industry >Tendencetowardshigherc ustomerloyalty Moderate Rivalry >pricesensitivitySuppliers:>exclusivedealswithselectedraw material suppliers>commoditymarket Barriers to enter/exit: > capital assets (building, machinery etc.) > venture capital > economies of scale >technologicaladvancement to avoidimitation >high barriers to enter/exit 18/10/2012 5
• German qualitystandard • Limited• Establishedworldwidebrand- marketresearchinformationon awareness the Chinese market• Tradition, int. experience • No expertisein the Chinese market SWOT• Steady market growth • Quick imitation• Rising standards of living and • Many market entrances with disposable incomes domestic manufacturing• Orientation towards quality and • Local producers are acquiring foreign confectionery Japanese and Korean• Chinese producers slow to introduce technology new candy products • Market distinctively price-driven• Candy is capturing the younger • Sales are seasonal, strongest in Chinese consumers as a trend and as winter a new taste • Traditional reluctance to product• Innovative packaging and novelty candy are scarce and underdeveloped• Rural areas are under-supplied18/10/2012 7
Tobecome a strong competitor in the Chinese confectioneryindustry 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 product18/10/2012 9
Original GummyBearPackage • Large packages • Miniaturepackages (family pack) Goji Berry Haribo„sbrandidentity will bemaintained Adaptionsto Chinese tastes Ginger • Flavor • Package • Slogan Green Tea Real fruitjuice, all naturalingredients Lucky Panda German qualitystandards18/10/2012 10