By Christiane Prange
This booklet compiles fresh case stories at the intricacies and industry access ideas of alternative businesses in China. The sheer velocity and scope of China’s progress makes it exact and funding possibilities are very appealing. regardless of the aptitude, many western businesses fail of their marketplace access techniques. This booklet strains the key assets of failure and makes use of circumstances to demonstrate how enterprises can higher take care of the demanding chinese language marketplace. With a unique concentrate on advertising and marketing, positioning, and branding, this ebook offers concerns and recommendations of either huge multinationals and small area of interest marketplace players.
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Extra resources for Market Entry in China: Case Studies on Strategy, Marketing, and Branding
Example text
Today, the joint venture is owned by Audi AG (10 % of the capital), Volkswagen (20 %), Volkswagen China Invest (10 %) and FAW (60 %). The factory, which is Audi’s main production facility outside Germany, manufactures vehicles for the Audi and Volkswagen brands since its creation. The history of Audi in China is presented in box 1. Box 1 The History of Audi in China 1988 1990 1990 1991 1995 1996 1999 2001 2003 2005 2005 Audi and First Auto Works (FAW) signed a technology transfer and license contract for the manufacture of Audi cars at FAW (Audi 100 model).
One of the major objectives of these joint ventures was directed at technology transfer, learning, and capability development. The government’s focus on the consolidation of the sector and the development of the large established stateowned enterprises meant that smaller producers not involved in joint ventures faced restrictions on market entry and product development throughout the 1990s. In 1994, the Chinese government designated a number of industries as ‘Pillar Industries’ intended to drive the national economy; the automotive industry was chosen as one of these industries.
Source: Adapted from PSA Peugeot Citroe¨n (2013a, 2013b, 2013c) 50 Z. Qin confident about the future. “This year we expect is going to be another good year. We’re on a very active development plan and very nice growth”, (Bloomberg, 2013). On the other hand, to increase the brand awareness among Chinese customers, PSA spent a large amount of advertising budget to support its introduction of models. In the beginning of 2013, PSA became the top foreign spender for primetime advertising slots on state-owned China Central Television, which is the most widely watched television program in the country (Bloomberg, 2013).