. However, the developing market presents several problems due to lack of brand awareness. Most of the countries, such as Brazil, Russia and China present a lot of problems to dental consumables manufacturers since most consumers are stuck with brand loyalty for dental consumables that invaded the market a century back . The scope for invasion of new manufacturers in the dental consumables industry in Russia and India is minute due to brand loyalty of the consumers (Bornmark et al, 2005).
The new growing middle class in China, here described as the wealthy consumer target group, plays a very important role for our market. According to a McKinsey study (2013) released this year, by 2022, more than 75% of China’s urban consumers will earn between $9,000 and $34,000 a year. This underlines th outcome of the KPMG study (2007) the description of the steady growth of the still young Chinese market which inspired industrial companies to do business in China in order to influence spending habits, demand and perceptions on the early stage for creating customer loyalty.
From the Chinese market perspective, in its 12th Five Year Plan, China has shifted focus from export led sectors to increasing domestic consumer demand (Insights, 2011). Today, the Chinese consumer is driving global growth and Chinese consumers spent $9 billion on luxury goods in 2010 (Insights, 2011). Nowadays the Chinese consumer is savvy and well aware about brands and although China is still an emerging economy but there is a lot of development within several sectors of economy.
China ranks as the world‘s third largest medical device market in the world (Apco, 2010). Today, Chinese market for dental consumables is registering a boost that is unprecedented due to growi...
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...nd awareness amongst the consumers in China. Celebrity endorsements have hugely helped dental consumable products to create brand awareness in China which has further helped in building brand loyalty for such products (Freedonia, 2009).
This present research establishes that the rise of international brands as well as local Chinese brands is due to globalization of brands as well as due to the enhanced brand awareness of government, non profit organizations, and local authorities (WPP, 2014). All these institutions have hugely benefited growth of brand awareness and brand loyalty in China. Further, the growth of social media is also going to provide great impetus to the dental consumables sector in China. The connection between brand awareness and brand loyalty in boosting sale of dental consumables in China is proven and cannot be denied under any circumstances.
Svinos, George, and Nick Debnam. Attitudes to Luxury Brands (TNS Survey). N.d. Raw data. Monash University, Shanghai, China.
Sheng, Shirley Ye, and Ma Yan. "China Vs. the United States: Market Connections and Trade Relations." International Journal of China Marketing 2.1 (2011): 45-57. ProQuest. Web. 8 Dec. 2013.
According to the NY Times (2016:online) ‘Chinese market account for almost the half of the global luxury market, providing a high demand of goods in different segments’. (http://www.nytimes.com/2016/04/05/fashion/china-luxury-goods-retail.html). Younger and more sophisticated generation of shoppers are emerging in Asia looking for new aspirations and creating a new target market for luxury goods. The consumption has gone beyond the logo items (which can affect many brands), these new consumers look for a lifestyle and quality – it is not only purchasing anymore but about the
We propose a branding strategy which takes into account the brands capabilities and competencies, strategies of competition brands and the outlook of consumers experience in their respective societies. As an international brand there is the challenge of staying connected with local customers. We will overcome this by adapting marketing strategy to local needs using a variance of standardized marketing mix and an adapted marketing mix.
Modern day Chinese society has revolutionized the luxury industry as the Chinese consumer is receptive to luxury brands unlike any other consumer in the world. As a society that is fueled by urbanization, with a myriad of cities that are economic centers of the world, China is now a country that has made great strides through industrialization to become an influential leader with purchasing power that transcends beyond gender and age as younger consumers are aspiring for luxury products, in which companies worldwide are marketing their luxury products in order to appeal to the Chinese consumer who is enamored by quality despite cost. Beyond the depths of Communism, and governmental control, the modern Chinese consumer has accessibility to earn higher incomes, provide for their families, enjoy leisure and have amenities that were once rare in a country that was once rural land. Now, with technological advancements and modernization of cities, the Chinese consumer is able to live a lifestyle of luxury unlike the past, where luxury was once only possessed by those who were rich. Through strong family structures, and high educational standards, the middle class in China has gained strength in order to aspire for an improved lifestyle.
The boom in online retail is a key element of the government’s drive to re-balance China’s economy in a way that positions consumption to make a far more significant contribution to GDP growth. China’s new leadership team - Premier Li Keqiang in particular - is actively encouraging the expansion of so-called ‘digital consumption’ - xinxi xiaofei 信息消费.
Shirley Ye, Sheng, and Yan Ma. "China Vs. The United States: Market Connections And Trade Relations." International Journal Of China Marketing 2.1 (2011): 45-57. Business Source Complete. Web. 13 Dec. 2013.
People are buying the product which gives them prestige. Marketers have interest on consumer psychology and they are playing with every day by showing that their product will give prestige in the society. It’s true that the transparent societies now needs brands image. Marketers analyze the interest and needs of consumer than create the product according to the need of the society. Brand can attain the people attraction and the business can have the good reputation by giving satisfaction to consumer. If the brand gives satisfaction and function are according to the expectation of consumer than the brand gets good image on the mind of consumer. brand image is great weapon to use for the competitors it builds in years , at once the business gets brand image it has competitive edge from other brands in the market. When consumer rely on the brand the company can create the long term relation with the consumer, in other words (CRM) consumer relationship management. The brand image has effect on the choice of every individual there believe and attitude change their preferences. Brand image can be effected by price as price is an important part for consumer when they are making purchase decision if they find the value of brand is equal to the pricing they purchase that brand if not they refuse it. Similarly the image of brand can be effected by the attributes and features or
By investing more in market research than any other company, conducting thousands of research studies and investing millions in consumer understanding every year, P&G has made a success out of articulating unspecified consumer wants and needs translating them into products. Not only is their a successful transition from idea to product, but P&G has also demonstrated global success in branding these products into household names with the logistics and distribution capabilities to translate it into meeting consumer and retailers needs satisfactorily. By translating these characteristics into continuously improving efficiency and productivity, P&G can give the best brand value to the Indian market by building relationships with consumers,businesses and retailers, making Oral B the toothbrush household name in India.
The high pressure luxury brand industry has evolved over the last few decades from a small and selective to a multibillion dollar arena offering significant potential and growth opportunity for the luxury brands that compete within its realm. With many luxury brands competing for over $225 billion (The Economist, 2009) in revenue each year it is easy to see how strategy plays an important role.
Colgate is a high ranked oral hygiene company that produces toothpastes, mouthwashes, toothbrushes and dental floss that was founded in 1807 by William Colgate in New York City. In 1820, Colgate built their first starch factory in New Jersey. Years later, in 1857, the founder William Colgate death resulted in the company being passed down to his son Samuel Colgate. In 1864, Colgate collaborated with B.J. Johnson who founded the Palmolive Company. The Colgate-Palmolive Company began having much success in the late 1800’s with all of their new products such as hand soaps and the many different appearances of toothpaste from glass jars to collapsible tubes. In 1900, Colgate won top honors in Paris at the World’s Fair for their soaps and perfumes. Colgate was very successful internationally that they came established in Europe, Canada, Asia, Latin America, and Africa. After so many accomplishments internationally and locally, “Colgate-Palmolive Company” was officially the company’s name in 1953. By the late 1900’s, Colgate sold over 1.6 million toothbrushes annually and was serving over 56 countries and hits the $5 billion mark in sales. The company began initiating an Oral Care program after collaborating up Kolynos in Latin America. The oral care program, which is called Bright Smiles, Bright Futures that is established to 50 countries and serves over 50 million children a year. Today, the CEO of Colgate is Ian M. Cook & Colgate’s focuses are Oral Care, Personal Care, Pet Nutrition, and Home Care and provides in over 200 countries and have numerous awards including 2013 World’s Most Ethical Companies from Ethisphere Magazine. In my research, based on preliminary information, I will find evidence that will attempt to pro...
The company’s target market appears to cater to every type of person in the luxury sector. This is reflected with its high class amenities, such as the Michelin restaurants and spas. The Mandarin Oriental International Limited Annual Report 2014 outlined that the leisure travellers have had higher demand recently over business travellers, as well as, “…higher spending leisure customers now making up close to 50% of the Group’s room nights” (Photos.mandarinoriental.com, 2014).
According to Dubois and Czellar, the Chinese elite’s attitude via luxury goods has identified to six attributes: excellent quality, uniqueness, very high price, emotional content, superfluous/inessential and the last one brand history and heritage.
“Linked to a brand, its name is the symbol that adds to or subtract from the value provided by a product or service.” (Aeler, 1991) Like country of origin, brand equity is also one of the reasons why some people want to have a well-known brands in the whole world. Sometimes it is not all about the price anymore because in today’s generation brand is more important than
Warden, C. A., Stanworth, J., Chen, J. F., & Chi-Tsun Huang, S. (2012). Strangers in Strange Lands: Hypermarkets and Chinese Consumer Culture Misalignment. International Journal of Market Research, 54(6), 799-820.