58 innovative plans for marketing

Chapter 42 International Marketing Planning (2)
On the coast of the East China Sea and the Taizhou Bay, Zhejiang Hisun Pharmaceutical is quietly creating miracles: 10 products have passed the FDA (Food and Drug Inspection Administration) certification, 8 drugs have passed the EU COS review, and more than 20 more The variety is being declared.Hisun's products sell well in more than 30 countries and regions, and its annual foreign exchange earnings exceed US$520 million. It is one of the [-] key enterprises in the country.

"International passport" is not an ornament, but means that it can occupy the high-end market and obtain higher profits.It is precisely because of this original intention that Hisun chose to enter the overseas market.

With a good product, it is necessary to be familiar with the rules of the international game and obtain the international market pass, the most important thing is the US FDA and EU COS certification.They require very precise data on the components and content of drugs, which is also the most difficult threshold for domestic drugs to enter the international market.

The development and production of non-patent drugs is the first major opportunity for pharmaceutical companies after my country's accession to WTO.Developed countries have a high level of social security, but the burden of expenditure is increasing day by day, so the demand for relatively low-priced generic drugs has increased rapidly.The United States used to purchase mainly from traditional suppliers such as Japan, Spain, and Italy, but now it is turning to manufacturers in China and India to purchase drugs with good quality and low prices.But the problem is that the hardware and software level of the enterprise must meet the requirements of others.Hisun's stupid kung fu in the early years began to show its power.Hisun once invited an Israeli expert to the factory. At first, the expert said arrogantly: "I have been to more than 200 pharmaceutical factories in the world. What can I see there?" After seeing Hisun's advanced equipment and technology, and knowing that Hisun's product structure covers more than 10 fields and reserves more than 200 varieties, he finally couldn't help saying: "It's incredible!"

Hisun has found its direction and confidence in the international market.When the anti-cancer drug "mitomycin" was launched, a certain Japanese company heard the news that it was impossible for China to produce such a high-level drug, and Hisun must have bought their raw materials and reprocessed it.They had three groups of people successively come to the site to take samples, and they had to believe that the anticancer drug was indeed developed by Hisun itself.When Hisun began to apply for FDA certification, the Japanese company said that it would be impossible to succeed within two or three years, and that the wise choice for export was to form a joint venture with them.Hisun refused to believe what they said, and it took only 8 months to obtain the "International Market Pass".

It can be seen from Hisun's strategy that when exporting products to overseas markets, it is necessary to obtain the industry certification of the local region and country.In this way, you can unimpeded.

Skillful touch
Adapting to the characteristics of consumer demand in the target market is the leading direction of product strategy for companies engaged in international marketing activities.Consumers' awareness and use of products in various countries are closely related to the various environments, especially the social and cultural conditions of the country where they are located. The different needs for each level of products change with the changes in the marketing environment.A certain level of a product may be important in one marketing environment, but may not be important in another marketing environment, so products sold in the international market must adapt to the requirements of the marketing environment of each country.It is not the original intention of the company to improve the products, which is likely to weaken the economies of scale of the company, increase costs, and increase marketing risks.
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In some special cases, some factors will force or attract enterprises to change their export products.These factors can be divided into two categories: mandatory adaptation products and non-mandatory adaptation products.

1. Mandatory adaptation to improve the product.Compulsory adaptive improvement of products means that an enterprise improves its products because some mandatory factors in foreign markets require it to make adaptive improvements.In order to protect the interests of domestic consumers and maintain existing business customs, governments of various countries will formulate some special laws, rules or requirements for imported goods, some of which are permanent and some of which are temporary.

2. Non-mandatory adaptation to improve the product.Non-compulsory adaptive improvement products refer to various improvements that enterprises actively make to products in order to improve their competitiveness in the international market and adapt to non-compulsory influencing factors of the target market.Non-mandatory improvement products are more attractive to enterprises, but they are also more difficult to improve.The non-compulsory factors that prompt enterprises to change products are too flexible, and it is impossible and there will be no ready-made guiding principles, and the key to the adaptability of enterprise products to the target market lies in the corresponding changes made according to non-compulsory factors.It can be seen that changing products due to non-mandatory factors is the key to the success or failure of enterprises engaged in international marketing.

Practical points
Non-mandatory product changes are generally affected by the following factors:
1. Adaptation of culture.Culture is an important factor affecting consumers' perception of products and purchasing behavior.Consumers in different cultural environments have different demands for products, which are mainly reflected in values, ethics, codes of conduct, religious beliefs, consumption preferences, and usage patterns. Whether consumers in international target markets accept new products and new behaviors The main obstacle is neither income level nor differences in natural environment, but the cultural patterns of the target market for the product.

2. The income level of consumers in various countries.The level of income greatly affects consumers' requirements for product utility, function, quality, packaging and brand.

3. Different preferences of consumers.The different preferences of consumers in various countries are mainly determined by social culture and habits.Differences in consumer preferences due to cultural influences are mainly reflected in the appearance of products, packaging, trademarks, brand names, and usage patterns, but are rarely reflected in the physical or mechanical aspects of products.For a marketing-oriented enterprise, when it comes to the appearance, taste, and taboos of colors, patterns and words in the packaging, it is necessary to do as the Romans do.

4. The level of education in foreign markets.The level of education in foreign markets is also a non-coercive factor that drives firms to change their products.Consumers in developed countries have an average of more than ten years of formal education, and they grow up in a highly commercialized, industrialized and technological society. They have a high level of education and are easy to identify, master and use technically complex products.In some poor and backward countries, consumers have limited education, and many are even illiterate. It is difficult for them to master and use technically complex products.

Scene reconstruction
1. Scenarios
After Red Bull entered China 11 years ago, the Chinese beverage market was divided among princes and warlords, but the preconceived Red Bull beverage not only did not shrink the market in the competition, but also built a third production base in Hubei in July 2006. The trend of performance improvement has always occupied the top position of functional drinks with impressive performance, and has become synonymous with energy drinks. This process can be called a marketing classic.

When Red Bull came to China in the early stage, it faced a completely blank market.That's a total "blue ocean" from the point of view of many marketers.At that time, there were not many beverages in the Chinese market. Well-known foreign beverages included Coca-Cola and Pepsi, and sports drinks included Jianlibao. Several major beverage companies had very strong marketing capabilities, each occupying a large-scale market.It is not an easy task for Red Bull Beverage to rise rapidly from the siege of these brands.

As a brand that is popular all over the world, Red Bull China has a very obvious style: it enters the Chinese market with a localized strategy, and many traces of its localized strategy can be seen from its early promotion direction.It mainly combined extensive brand hints, vigorous media promotion, and strong terminal construction to try to get closer to local brands and reduce its traces of "foreign brands", which was in line with the actual psychological needs of Chinese consumers at the time.

Therefore, in just one or two years, Red Bull has become a loyal consumer group of Red Bull, including car drivers, night show entertainers, staff who often stay up late, and young sports enthusiasts.In one fell swoop, Red Bull became the number one brand of functional drinks in China and enjoys a high reputation in China. Later, a large number of drinks imitating or even counterfeiting Red Bull appeared, such as Blue Lion, Jinniu, Red Jinniu, Jinhongniu and so on.

In terms of brand hints, Red Bull has strengthened its localization strategy through two aspects. One is to declare that although Red Bull is from Thailand, it is a formula created by Chinese people. It vigorously promoted this concept in the early stage of market entry, which effectively made the brand have a Chinese flavor. There are obvious differences from foreign brands such as Coca-Cola; the second is that the brand name of Red Bull is completely Chinese, and its English name is only used as an auxiliary, and the eye-catching logo of two Red Bulls smashing into a sun strengthens this point.The red bull, with the red letter on its head, is full of strength, which is suitable for Chinese people's auspicious fortune.In some cities in China, the gift sets sold so well that they were almost out of stock as soon as Red Bull entered the market.In addition, Red Bull's headquarters was initially set up in Shenzhen, then moved to Beijing, and its production base was also built in China, which further demonstrated Red Bull's determination to vigorously develop in China. These are the successes of Red Bull's localization strategy.

Question: When Red Bull entered China, what strategies did Red Bull adopt to gain a firm foothold in China?
2. Role simulation
If your company's entry into the international market is automobiles, and it is hindered by the different usage habits of local customers, how should you change the product?
3. Thinking Enlightenment
What role does the service strategy play when conducting product strategy overseas?
4. Physical 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.Set up a specific scenario, and the two groups will write a product planning proposal for a certain company's products entering the overseas market.

Rules: Time is 90 minutes.In the specified time, which group's proposal is complete and feasible, which group will win.

Purpose: Through the game, cultivate the ability of game participants to plan export products.

5. Improve plan
Reference answer

1. Scenario case: Red Bull quickly entered the market with a strategy of product localization and a model in line with China's consumption situation, and won the recognition of consumers.

2. Role simulation: The answer is omitted.

3. Thinking enlightenment and answering ideas: To a large extent, products in the international market are guaranteed by service strategies.

Service is a marketing method for enterprises to ensure the normal performance of product functions through delivery, installation, commissioning, maintenance, personnel training, etc., so that product guarantee terms can be implemented, and the commitment to consumers is realized.The biggest concern of consumers buying foreign products is that the after-sales service of the products cannot be guaranteed.In fact, many enterprises have lost consumers who would have preferred their own products due to insufficient guarantees and services for export products in foreign markets.Good pre-sales, sales and after-sales services are an important means of competition for enterprises in the international market. It helps to eliminate consumers' worries and win a large number of consumers.

Usually enterprises provide consumers with the following services: provide consumers with product and enterprise information, help consumers understand and purchase products; provide consumers with business technical consultation, help consumers understand product performance, correct use methods, Knowledge of product maintenance and maintenance; product installation, commissioning, maintenance and spare parts supply; timely handling of letters, calls and visits from users, and timely handling of various problems; product quality assurance services, providing customers with credit services; Special services can also be provided according to the special requirements of users.

Classic look back
On November 2006, 11, at Shanghai Haitong Wharf, workers were loading cars onto the "Taidi" ro-ro wheel parked at the wharf. After more than 28 days, this batch of more than 20 Chery vehicles The sedans will be unloaded in Alexandria, Egypt and Takora, Syria, and delivered to local Chery dealers.

This is just the monthly routine Shanghai-Mediterranean flight of the "Taidi" ship. Due to the sufficient supply of goods, Chery Automobile has upgraded to become a diamond-level customer of the Hualunwei Shipping Company to which the "Taidi" ship belongs. At the beginning of the month or the end of the month, the ship "Taidi" shipped from Japan or South Korea will reserve hundreds of parking spaces for Chery.On the "Taidi" ship, Chery's QQ and Fengyun were transported thousands of miles away to the Mediterranean Sea along with Toyota or Hyundai cars.Statistics from Shanghai Haitong Terminal show that in 2006, about 1.2 Chery vehicles will be exported to the international market through this terminal, while the number in the same period last year was only about 7000. one of customers.

另一组统计数字来自奇瑞汽车，从2001年出口叙利亚10辆汽车开始，奇瑞海外市场销售实现第一个1万辆车，用了3年零6个月；第二个1万辆用了7个多月；第三个1万辆用了6个月；第四个1万辆车用了3个月；第五个1万辆用了1个多月。

What is Chery's strength?A number that can be investigated is: in China's parts and components industry, automotive metal parts, automotive chemical parts, and electronic products have reached international standards, but their costs are often 30% to 50% cheaper than similar foreign products. For example, the purchase price in the US market is 10 US dollars each, while domestic supporting manufacturers can achieve 5-6 US dollars.

In terms of research and development funds, Chery invests 10% to 15% of sales revenue every year. In 2005, Chery's R&D investment was 14.5 billion, accounting for about 13% of the company's sales revenue.In foreign countries, the development of a new car model needs about 10 billion to 20 billion U.S. dollars. According to such an investment, Chery may not even be able to develop a single car tire with this amount of money. However, Chery launched 2005 new cars on the market in 6. .In addition, the ACTECO engine family comprising 18 engines is also included.

It is precisely based on this operating cost structure that Chery is vigorously strengthening its internationalization strategy. In terms of vehicle export, Chery has sold to more than 50 countries around the world and has 69 dealers.In addition, there are currently dealers from 22 countries including Switzerland, the Netherlands, Australia and Brazil who are interested in representing Chery's products.

The global auto market can almost be divided by applying Chairman Mao's "three worlds" theory.The third type of countries are mostly in the Middle East and Africa. Most of these countries do not have a decent auto industry, so they do not boycott auto imports.Most of the overseas exports of Chinese cars start from these countries, and they are still the most important markets.However, most of these countries are economically underdeveloped and have limited market capacity.The markets of the second world countries are relatively large, but most of them have their own auto industry, and most of them resist imported cars, such as Malaysia.

At present, Chery Automobile's overseas market starts from the third type of market, and its share in the second type of market is catching up.

Because the former does not have an automobile industry, and the latter because of monopoly protection, Chery can obtain higher prices in both markets.For example, in the Russian market, the price of Fengyun’s basic model is US$11000 (nearly RMB 9); the price of Fengyun’s luxury model is US$12500 (RMB 10); Chery with ABS, EBD, 2 airbags, CD, and adjustable steering wheel Tiggo SUV is currently priced at US$19990 on the Russian market.These prices are much higher than the domestic market.

The price is much higher than that in the domestic market, which makes it much more cost-effective for Chery to sell in the domestic market even if it pays high freight and tariffs.

According to the statistics of Shanghai Haitong Terminal, the largest car ro-ro terminal in China, the shipping fee for a QQ from Shanghai Port to Alexandria, Egypt is US$520 (RMB 5600); to Hanko Port, Finland (mainly for Russia) market) is $800; shipping to Colombian ports in South America is $960.

After paying the freight and tariffs, although most of the price difference in the middle is given to Chery dealers, it still retains 10% to 20% of the profit.

It can be seen from the case that various factors constitute the cost advantage of Chinese local automobiles including Chery, and this cost advantage is being transformed into the price advantage of Chinese automobiles in the international market.

Skillful touch
Price is an important element of the marketing mix.The level of product prices directly determines the income level of the enterprise, and also affects the competitiveness of products in the international market.Domestic pricing is inherently complicated. When products are sold to the international market, factors such as freight, tariffs, exchange rate fluctuations, and political situations make international pricing even more difficult.Therefore, enterprises must make great efforts to study and determine the pricing strategy in international marketing.

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(End of this chapter)