Välling In Shanghai Case Analysis
This chapter shall canvass the strategy in terms of segmentation, targeting and positioning. The market entry strategy and the future goals will be evaluated; leading onto the product launch of Välling in Shanghai.
4.1 Segmentation, targeting and positioning
As learned from the market analysis, defining a niche and bringing a highly differentiated product to a specific target group is most important for market entry in China's baby food market. Starting with the geographic segmentation, Shanghai business region is preferred, because of being a first-tier city in China (OSEC, 2012), where salaries are ten times the Chinese average (Fram et. al., 2004). Shanghai business region has a rising middle- and high-class population (OSEC, 2012). …show more content…
Understandably, pregnant women and young mothers (mostly 18-28 years old) are informing themselves about baby food products (IMBC, 2011). Besides young mothers, even grandmothers, are willing to pay more for a premium baby brand (Lin & Cruz, 2013). Semper will target Shanghai’s “Yuppies”, a market segment of young urban professionals, who are highly educated, consume and trust Western brands and are characterized by youth, affluence and business success (ChinaDaily, 2006; Investiopia, n.d.). Besides, “Generation 2” (see figure 5) and the “upper-middle-class urban generation” (see appendix 5) earn a monthly household income higher than $2,000 per average household can defined as a core target group (Geng, 1999, HKTDC, …show more content…
Exporting is feasible as part of the entry strategy since the risk of financial loss can be minimised; besides the product’s origin is its main USP. In China, Swedish bilingual employees of Semper will be deployed as expatriates to work in Shanghai. The reasoning behind this is to install ‘know-how’ of Semper’s business operations and offer a direct gateway to Swedish culture; which can be alluring to local customers in Shanghai (Ghauri & Cateora, 2014). The expatriates and established sales agents shall target events where young mothers tend to be active, by informing them about “Välling” and the benefits for their babies. The primary goal is that Välling will grow in popularity as mothers becomes satisfied with the product and recommend it to their friends, i.e. exercising
4.1 Segmentation, targeting and positioning
As learned from the market analysis, defining a niche and bringing a highly differentiated product to a specific target group is most important for market entry in China's baby food market. Starting with the geographic segmentation, Shanghai business region is preferred, because of being a first-tier city in China (OSEC, 2012), where salaries are ten times the Chinese average (Fram et. al., 2004). Shanghai business region has a rising middle- and high-class population (OSEC, 2012). …show more content…
Understandably, pregnant women and young mothers (mostly 18-28 years old) are informing themselves about baby food products (IMBC, 2011). Besides young mothers, even grandmothers, are willing to pay more for a premium baby brand (Lin & Cruz, 2013). Semper will target Shanghai’s “Yuppies”, a market segment of young urban professionals, who are highly educated, consume and trust Western brands and are characterized by youth, affluence and business success (ChinaDaily, 2006; Investiopia, n.d.). Besides, “Generation 2” (see figure 5) and the “upper-middle-class urban generation” (see appendix 5) earn a monthly household income higher than $2,000 per average household can defined as a core target group (Geng, 1999, HKTDC, …show more content…
Exporting is feasible as part of the entry strategy since the risk of financial loss can be minimised; besides the product’s origin is its main USP. In China, Swedish bilingual employees of Semper will be deployed as expatriates to work in Shanghai. The reasoning behind this is to install ‘know-how’ of Semper’s business operations and offer a direct gateway to Swedish culture; which can be alluring to local customers in Shanghai (Ghauri & Cateora, 2014). The expatriates and established sales agents shall target events where young mothers tend to be active, by informing them about “Välling” and the benefits for their babies. The primary goal is that Välling will grow in popularity as mothers becomes satisfied with the product and recommend it to their friends, i.e. exercising