Introduction The Procter & Gamble company (P&G) is founded in 1837. And it manufactures and markets a broad range of consumer products in many countries throughout the world. The company's products fall into five business segments: Laundry and cleaning, Paper, Beauty care, Food and Beverage, and Health Care. For the nine months end of 3/31/00, revenues rose 6% to $30.29 billion. Net income applicable to Come fell 10% to $2.94 billion. Revenues reflect growth in unit volume and product upgrade. Earnings were offset by increases in marketing and research expenses. (www.yahoo.com, Profile - Procter & Gamble) Pantene is a famous shampoo product of P&G. And before1992, Procter & Gamble company want it enter the Chinese market. But how can it be introduced? Below, the entry strategies for Pantene in Chinese market will be discussed.
Main Part I.The total Entry Strategy alternatives In Fifield & Lewis, International Strategy, 1998, P106 the summary of all the entry strategy alternatives for foreign market are mentioned: Entry Strategy alternatives Entry strategy alternatives Exporting Overseas production Indirect exporting Without direct investment ? Via domestic organizations Licensing ? Trading companies Franchising ? Export houses (EMCs) Contract Manufacturing ? Piggy-backing ? Direct exporting With direct investment ? Agents Assembly ? Distributors Joint ventures ? Company Marketing Strategiec alliances Subsidiary Acquistion Greemfield development Entry strategy Entry Implementation Analysis ? Inventory Profitability ? Personnel/admin Assets ? Logistics Finance Costs Risk Exit strategy Figure 1.
Chinese wall
Pantene
Former P&G logoMarket entry alternatives (Fifield & Lewis, International Strategy, Butterworth-Heinemann, 1998, P106) II Chinese market ( customer buying behavior) The Chinese customer wants to scrutinize the products of Western company personally and make assessments of their trustworthiness and goodwill. The Chinese want to feel they are dealing with a friend who will play fair and make possible a comfortable, long-term relationship.
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