Refine
Year of publication
- 2017 (1)
Document Type
- Master's Thesis (1)
Language
- English (1)
Has Fulltext
- yes (1)
Is part of the Bibliography
- yes (1)
Keywords
Institute
The Michael Pachleitner Group (MPG) is a company dealing with the design, production and distribution of optical glasses, lenses and frames and is based in Graz. The company has experienced a market saturation on the home market and increasing competition especially in the sunglass market. The company evaluated the Chinese market as highly potential for their new Red Bull Spect sunglasses, which is the reason they have decided to enter this market by the end of 2017. The aim of the MPG is to make a sales revenue of 125.00 Euro and to establish a distribution network in China within the first year.
The Chinese market has been evaluated as high potential market due to the fact that China is becoming the world economic leader which has already led to an enormous increase in purchasing power. Because of the countries size, the openness of Chinese customers towards western brands and the increase of wealth the market is very promising but also challenging for European businesses. Experts have named a clear brand positioning, USPs, the development of online sale points and an essential social media presence as most crucial factors when entering China`s economy. Within the internal analysis of the MPG some insufficiencies regarding these success factors have been found. Therefore the company needs to revise the positioning of the brand, create convincing social media appearance and include online sales in their distribution plans.
The selected market entry mode for the MPG when entering the Chinese market is an indirect export, due to the fact that the company strives for low investment, low risk and high control over the brand presentation. It is advised to work with one distributor for all first tier cities, which need to be addressed first, to prevent common pricing. Additionally the MPG shall develop an own online shop but also sell their products via common Chinese online platforms. After the company has decided on clear USPs, it will be necessary to position Red Bull Spect as a sport and lifestyle brand by using the country of origin effect. Regarding the communication and marketing strategy it is strongly recommended to focus on Chinese social media advertisement to target the right customer group. Finally, markets like Taiwan, the Philippines and Japan could be further potential markets to enter.
