58 innovative plans for marketing

Chapter 41 International Marketing Planning

Chapter 41 International Marketing Planning (1)
As the economist Peter Drucker said: "From now on, any country and any enterprise that wishes to prosper must recognize that the leading role is this world economy, that is, the world as a production workshop and a sales market. The economy of transnational production and operation. Any enterprise that hopes to obtain the power and source of long-term development must become a brave fighter in the trend of global economic integration and regional economic integration."

Compared with foreign giants, the scale of Chinese companies is still slightly small. There are only 500 Chinese companies in the Fortune 11, and only two in the Financial Times 500. Moreover, the market of these Chinese companies is mainly in the country.However, with the lack of resources in the domestic market and the gradual saturation and overproduction of some domestic markets (such as steel, automobiles, and electronic products), Chinese companies will have to look abroad and start to explore the global market.From Lenovo to TCL, to Nanjing Automobile's acquisition of British Rover, some early global market pioneers have now become leaders in certain industries.For example, Haier is currently the fourth largest manufacturer of home appliances in the world, TCL is the largest TV manufacturer in the world, and Huawei already has a good reputation in the international network equipment market.

It is undeniable that these pre-successful enterprises made good use of their advantages in the domestic market, including capital and experience, when they explored the international market.China's consumer goods market is already the most competitive battlefield in the world. The huge income generated by the Chinese market is a strong driving force for domestic enterprises to vigorously explore foreign markets.

Classic look back
In 1996, Hong Kong Hutchison Telecom had just obtained a fixed-line telephone operating license, and needed to realize the business of transferring the phone without changing the number in a short period of time, and the limited time was only 3 months.However, Hutchison Telecom can find suppliers to provide equipment in Europe, and it takes 6 months to complete the project at the fastest, and the price is expensive.The time was approaching day by day, and when Hutchison Telecom saw that the project would become an "impossible task", someone recommended Huawei.

Huawei successfully completed the project in less than 3 months. Compared with world-class products, in addition to the price advantage, Huawei's flexibility in providing a new telecom service generation environment is more popular with Hutchison Telecom. The equipment can be placed in the stairwell, which adapts to the characteristics of Hong Kong with more people and less land.The quick completion of this order has successfully helped Hutchison Telecom to gain a differentiated advantage in the competition with Hong Kong Telecom.At the same time, Hutchison Telecom has almost "harsh" requirements in terms of product quality and service, which has carried out a "big training" for Huawei to enter the international market in the future.

In the second half of 1996, when Huawei was really ready to hit the international market, which market to choose to fire the "first shot" became the focus of debate among Huawei's decision-makers.They finally decided to copy domestic experience and adopt a strategy of concentrating superior forces and overcoming weak links.That is to start with countries with relatively weak telecommunications development, step by step, surround them layer by layer, and finally capture developed countries.

The Russian and Latin American markets are Huawei's first "prey".In fact, as early as 1994, Huawei "favored" this treasure land. In the past three years, Huawei has organized dozens of delegations to visit Russia, with hundreds of person-times, and invited Russian delegations to visit Huawei several times.After accumulating three years of market power in Russia, it launched an attack, but Huawei is still not sure whether it can open up the market.

In the early days, Huawei took many detours in the process of exploring the international market.According to overseas sales staff, when the staff in charge of the customer line first started going to a place in 1996, they could not even see a single customer, let alone introduce products, within two weeks.

In 1997, Russia fell into an economic downturn and could not "extricate itself" for a long time. The ruble depreciated and plummeted. NEC, Siemens, Alcatel and other international giants withdrew their capital from Russia one after another.The vacancy of the leading role in this market undoubtedly gave Huawei an excellent opportunity to "set up a stage and act".

It is against this background that Li Jie, the current president of Huawei's Commonwealth of Independent States region, was sent to Russia to develop the market.In Russia in 1998, the weather was not cold, but the market was too cold, and a financial crisis in Russia immediately brought the entire telecom industry to a standstill.Li Jie recalled: "Some were filing lawsuits, some were clearing goods. Officials dangled in front of my eyes like lanterns. Not only did I lose my sense of smell, but even my vision was blurred. At that time, the only thing I could do Just waiting, from a wolf to a hibernating polar bear." This year, Li Jie has achieved almost nothing, except to tell Russia: We are still there. In 1999, Li Jie still got nothing.At the World Telecom Conference in Geneva, Ren Zhengfei woke up his favorite general: "Li Jie, if one day the Russian market recovers, but Huawei is blocked from the door, you can jump off this building." Jie said: "Okay." Li Jie began to build a local marketing team non-stop, and sent them to various regions in Russia after training. Based on this, he established the marketing network of the joint venture BetoHuawei.During the constant visits, they got to know the management of a group of operators, and the understanding and trust were established through frequent communication, thus forming the most important customer group at present.In a difficult start, Huawei's first order from the Russian State Telecom Agency was only $12.

But Huawei still persists in investing in the Russian market.When Putin comprehensively rectified the macro economy and the Russian economy "recovered", Huawei finally caught up with the first train of the Russian government's new round of procurement plans. In 2001, Huawei signed a tens of millions of dollars GSM equipment supply contract with the Russian State Telecommunications Department. At the end of 2002, Huawei received an order for a 3797-kilometer ultra-long-distance 320G national optical transmission trunk line (DWDM system) from St. Petersburg to Moscow. In 2003, the sales in the CIS countries exceeded 3 million US dollars in one fell swoop, ranking the forefront of international large-scale equipment suppliers in the CIS market.

Since 2000, Huawei began to fully expand in other regions, including Southeast Asian markets such as Thailand, Singapore, and Malaysia, as well as regional markets such as the Middle East and Africa.Especially in the Thailand market where the Chinese population is relatively concentrated, Huawei has successively won several large mobile intelligent network orders.In addition, good sales performance has also been achieved in relatively developed regions such as Saudi Arabia and South Africa.

Success in successive battles in developing countries has doubled Huawei's confidence.Since then, Huawei has begun to make moves in the markets of developed countries that it has long coveted.In the Western European market, starting from 2001 when 10G SDH optical network products entered Germany, through cooperation with famous local agents, Huawei products have successfully entered developed countries such as Germany, France, Spain, and the United Kingdom.

The case of Huawei has given us an inspiration. If domestic companies want to go out of the country to do transnational business, it is best to choose countries and regions with weak industry development to enter, lay a solid foundation, and then launch a charge!

Skillful touch
At present, in the international market journey of Chinese enterprises, the following problems and trends are presented.

Compared with developed countries and some newly industrialized countries, the scale of individual overseas investment in my country is not much over one million US dollars, and a considerable number of small and medium-sized enterprises have overseas investment of only US$10,000+ or ​​even lower, and the scale of individual investment is relatively small.

The field of investment continues to expand.The initial overseas investment fields were mainly trade-related, such as maintenance, packaging, transportation and other processing and productive industries.At present, it has expanded from industry and agriculture, investment and development, and transportation to catering, tourism, consulting services, technology trade, financial real estate, etc. Technology-intensive industries have also been involved, such as Lenovo, Stone, Founder, etc. Start investing overseas.

Investment entities and investment directions are diversified.The main body of investment has changed from professional foreign trade companies and foreign economic and technical cooperation companies to large and medium-sized production enterprises, enterprise groups, and large industrial trade groups.The direction of investment has also shifted from Hong Kong, Macao and Taiwan to investment in developed countries.

Overseas investment methods are mainly joint ventures and physical investment.Enterprises invest in the form of joint ventures, which is conducive to market entry, making use of the advantages of local enterprises to make up for their lack of experience, and it is easy to form a bond of interest with the host country, which is conducive to diversifying business risks.Investors often use equipment and technology to split funds into shares, or sell trademarks, brands, licenses, etc. to invest in shares.

Overall, the scale of investment is small and insufficient.my country's foreign direct investment has reached a certain scale. By the end of 2004, my country's accumulated foreign direct investment was nearly 370 billion US dollars.However, compared with developed countries and some newly industrialized countries, the scale of my country's overseas investment is still small and insufficient.This is mainly because Chinese enterprises lack international competition experience and international financing capabilities, and enterprises only focus on investment industries and projects with low investment and quick returns, lack of risk awareness, and limit the expansion of overseas investment scale.

The overall strength of overseas investment enterprises is not strong, and the investment fields are more restricted.Although my country's overseas investment fields continue to expand, enterprises in technology-intensive industries invest less abroad.This is mainly due to the small scale of production, lack of funds and difficulty in technological innovation of small and medium-sized enterprises investing overseas, making it difficult to invest in capital-intensive industries.However, although state-owned large and medium-sized enterprises have abundant funds, most of them are facing enterprise reform, are in a period of transition, and lack of modern enterprise management systems and financing concepts, etc., which restrict their overseas investment.

Overseas investment enterprises have problems such as lack of experience, excessive success, bureaucratic style, unsound incentive mechanism and capital flight.There are still the following problems in the overseas investment of Chinese enterprises: first, they do not understand the overseas environment, lack of investigation, and blindly invest in construction projects; There is a lack of actual talents who can adapt to the needs of the local market; fourth, the operation and management cannot be completely market-oriented, and the supervision mechanism is not perfect; fifth, there are a large number of malicious transfers of state assets, etc.

thinking innovation
At present, most of my country's overseas investment is mainly based on joint ventures, and the entry method is mainly based on creation and supplemented by acquisition.This situation must be changed. In terms of market entry strategy, the strategy of all equity and multi-equity should be implemented.In developed countries, acquisitions should be the main focus, because the scale of Chinese enterprises is much smaller than that of developed countries, and there are fewer advantages. If a subsidiary is established in a developed country, it will be difficult to compete with large enterprises in developed countries.Instead, a creation-based strategy should be adopted in developing countries.Compared with enterprises in some developing countries, Chinese enterprises have relatively strong overall strength and have a competitive advantage in the markets of developing countries. Therefore, when investing, they should focus on creation.

Practical points
Facing the shortcomings in progress, the most urgent thing for Chinese enterprises at present is to strengthen their ability to enter the international market from the following aspects:

1. Strengthen government services and support.

2. Shaping the international image of the enterprise.Shaping the international image of an enterprise means that the enterprise establishes and disseminates its image to the world, seeks international support and cooperation through a series of actions, and promotes the success of the enterprise in the international market.Its strategy is: firstly, to carry out CI strategy, mainly to carry out the investigation of the actual situation of the enterprise, the positioning design and management of the international image; secondly, according to the CI strategy and the cultural and social environment of the host country, choose various and appropriate publicity methods to spread the corporate image International image, to strengthen the public's understanding of overseas investment enterprises; third, to formulate predictable, cautious, proactive management and prevention mechanisms to maintain and maintain the international image of enterprises, so that the good international image of enterprises can maintain long-term vitality .

3. Choose the company's overseas financing strategy.Enterprises' overseas financing should first "adapt measures to local conditions".Since the economic and financial environment of the host country is different, the financing strategy should be adapted to local conditions.For example, in the United States and Canada, securities financing should be given priority, while in Europe, banks should be the mainstay. In the Middle East, relatively abundant funds and production structure should be considered; secondly, "leveraged buyout" and international financing should be widely used. Financial leasing and other important financing means to raise funds for enterprises; third, take the road of bank-enterprise alliance.Closely develop the relationship with international banks, form a "joint fleet" with domestic banks to go to sea, etc.; fourth, while actively utilizing international and multinational banks, strive to develop their own overseas financing institutions, and vigorously develop the self-healing mechanism of corporate development funds.

Scene reconstruction
1. Scenarios
Although China's beer consumption has jumped to the first place in the world for several consecutive years since 2002, and the annual consumption has increased by more than 10%, but the large but not strong still restricts the greater development of China's beer industry.So, for Chinese beer companies, should they enter the international market before the domestic market becomes stronger, or should they wait until the Chinese market becomes stronger and bigger before entering?
Tsingtao Brewery chose to "go at the same time". Internationalization is not unattainable, it is just a process of capital looking for business opportunities.According to statistics, more than half of the new members of American business associations who go to China to conduct business are managers of small and medium-sized enterprises.Although the overall profit level of China's beer industry increased by 2003% compared with the previous year in 63.6, the overall profit is still at a low level compared with the international level.For example, the operating profit of a barrel of beer in China is only 10% of that in the United States, and the average selling price of a 630mL bottle of beer is less than 3 yuan. In many regions, beer is sold for 1 yuan, which is even lower than the price of a bottle of mineral water. .Chinese local beer companies are in the stage of low price, low end and small profit. "Tsingtao Brewery can continue to grow itself by going out, which is a problem that complements each other."

The beer industry is one of the industries with a relatively high degree of openness in China. Since the late 20s and early 80s, dozens of famous foreign beer brands have poured into China, and dozens of breweries with more than 90 tons have entered into joint ventures. Accounted for 5% of the national output at that time.In recent years, the competitive landscape has gradually evolved into a situation where Tsingtao Brewery, Yanjing, and China Resources are the top three.

When Chinese beer companies are still "big but not strong", what are the benefits of "going to sea" at this time?
Expand the brand's global influence and global recognition.For example, Tsingtao Brewery's entry into the U.S. market was a relatively sensational event at the time. The influence of Tsingtao Brewery's sales in the U.S. market does not lie in the amount of beer sold, but in the influence of the brand.The first time the United States got to know the Chinese market was when it got to know Tsingtao Brewery.

Improve the cultural connotation and loyalty of the brand.For example, in the U.S. household refrigerator and washing machine market, the market share of the top five brands exceeds 80%.In Europe, at least 80% of refrigerators are sold to customers who trade in old ones, and consumers often choose the original brand when they change machines.Therefore, a brand represents product characteristics, value and even cultural connotation, and most consumers in developed markets prefer to choose a brand they know.This is especially true in the beer industry.According to relevant data, in the American beer market, the lifetime contribution of a loyal consumer is about 1.8 US dollars.

The attraction of high profits in overseas markets.For example, for household appliances, the total profit of the US market exceeds US$20 billion, 9 times that of the Chinese market and 100 times that of the Brazilian market.As far as consumer electronics products are concerned, the total profit of the US market is as high as 10 billion US dollars, which is 10 times higher than that of the Chinese market and 20 times higher than that of the Brazilian market.Moreover, there are various and sizable different market segments in developed country markets.The same is true for the beer industry. The expansion of Tsingtao Brewery in overseas markets is not only to occupy market share, but more importantly, the profits in overseas markets far exceed those in China.

Question: What is the significance of Tsingtao Brewery's overseas market expansion?
2. Role simulation
If you are the general manager of an engineering company that is planning to expand overseas, and you need a lot of funds to enter the overseas market, how should you obtain a large amount of overseas financing?

3. Thinking Enlightenment
When domestic enterprises invest overseas, what strategy is more appropriate to adopt.

4. Practical training games
Props: some paper, some pens.

Number of participants: 12 people.

Method: 12 people were divided into two groups, 6 people in each group.Setting up a specific scenario, two groups write a market entry case plan for a domestic company entering the Western European market.

Rules: Which group's plan is more perfect, reasonable, and more operable within the specified time, and which group wins.The time is 90 minutes.

Purpose: Through the game, cultivate the ability of game participants to plan to enter overseas markets.

5. Improve plan
Reference answer

1. Scenario case: The significance of Tsingtao Brewery's overseas expansion lies in expanding the global influence and global recognition of the brand, improving the cultural connotation and loyalty of the brand, and obtaining high industry profits in overseas markets.

2. Role simulation: The answer is omitted.

3. Thinking enlightenment and solution thinking: Most of my country's overseas investment is mainly joint ventures, and the entry method is mainly creation, supplemented by acquisition.This situation must be changed. In terms of market entry strategy, the strategy of all equity and multi-equity should be implemented.In developed countries, acquisitions should be the main focus, because the scale of Chinese enterprises is much smaller than that of developed countries, and they have fewer advantages. If they establish subsidiaries in developed countries, it will be difficult to compete with large enterprises in developed countries.Instead, a creation-based strategy should be adopted in developing countries.Compared with enterprises in some developing countries, Chinese enterprises have relatively strong overall strength and have a competitive advantage in the markets of developing countries. Therefore, when investing, they should focus on creation.

Classic look back
(End of this chapter)

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