Nutrasweet in China Essay Example for Free

Nutrasweet in china EssayTo come up with a decision to the whether envision the Greater China Market or non we decided to approach the case with a plodding analysis. Strengths NutraSweet is an artificial sweetener that is one of the most recognized brand names in the United States and in the world. NutraSweets earnings per share is $ 6. 36 and with huge capitalization and investments in diverse harvest-tides. Stacey has the approved cipher of $ 500,000 to merchandise NutraSweet in China.NutraSweet has the flexibility on how to position their product in terms of functionality, or both as sugar substitute or health product for diabetics. Weaknesses The research conducted towards the Chinese consumers may not truly reflect the real sentiments of the consumers towards NutraSweet. NutraSweet has not decided on building its own distribution clay and may rely on remote agents for distribution. NutraSweet is more expensive than ordinary white sugar. Opportunities China is a bi g market and can provide high profitability to the guild.China is the second or one-eighth largest economy in the world depending on how it was gauged. There is a perceived consumers infatuation with Western brands. Chinese maintain healthful lifestyle so the potential for NutraSweet to launch their product in China is strong. Threats net income is a common household purchase as a sweetener and has been part of Chinese households for decades. last dictates that there might be hindrance in replacing traditional use of sugar with NutraSweet. The Chinese market is so diverse and it is difficult to come up with a general characteristic to secure them.Artificial sweeteners are known by history of skepticism for saccharin and potential health hazards. There is difficulty in attracting and retaining local employees and as such, NutraSweet is having doubts in investing into training their marketing and sales personnel for concern that the employees would not stay long in the beau m onde. There are only very few foreign agents that operate in China. Sugar use and consumption levels differed among 3 key markets Shanghai, Guangzhou, and Beijing. Arthur Andersen survey in China showed that most joint ventures from food and drink were not profitable.Most MNCs in China are abortive despite substantial growth. Majority of the Chinese are considered flat-bellied and take overt see the assume for a diet regimen. The Chinese culture also dictates that they are not that concerned with their teeth, hence they dont have that fear of tooth decay. The company should enter the Greater China market as a niche product for consumers with a medical need. The company cannot delay its entry in the China market, curiously with factors such as an average of 10% economic growth, a quickly emerging middle class, and a high possibility in consumers increase purchasing power.Postponement of entry may mean higher costs in the future and although the company result not immediately pro fit from the venture, research showed that companies who entered the market 5 to 10 years ago were doing best. The knowledge gained from market entry provide allow NutraSweet to rise its future strategies. Pros The successful experience in riging medical awareness in Hong Kong may be use to the Greater China Market. Entering the Greater China market through the three key cities entrust provide a better knowledge of the overall Chinese market.A natural market consisting of diabetics and fat customers already exist. Hospital stores and drug dispensaries do not have the bargaining strength that retailers have. Product entropy campaigns will be facilitated by health professionals who will easily understand and appreciate the products benefits. Promotion to medical professionals through associations will not need as much cost as a nationwide mass-market campaign. A $ 2,010,526. 31 in breakeven sales seems very feasible in the Chinese market.Cons The Chinese tend to be slim and had historically not been preoccupied by tooth decay. ? SHORT-TERM The Chinese consumers attraction to brand names, especially the number 1 in any category gives NutraSweet an opportunity to establish itself as a first mover in the medical aid products under a overbold category of sweeteners. The company will launch a product in orchestrateation campaign for medical professionals and will also tap their associations. Associations of diabetics and obese consumers will also be tapped.The company will focus on relationship building with the medical industry. Since poor dental health is a problem in China, the company may also create an awareness drive on the ill effects of sugar on the teeth to lay the foundation of need awareness. The product will be packaged in sachet form with global brand and American image prominent on the sachet to appeal to the consumers preference for American brands. The company will capitalize on the convenience of bringing the sachets anywhere with you.The medi cal industry will be presumption free samples of the product. The doctors will be taught to promote daily use of the product, with sweetening of milk and umber or hot drinks as one of the more common purposes. Consumers will be taught to use the product in cooking through the provision of free recipe booklets and cooking demonstration classes. The product will be distributed in the three key cities of Greater China, namely, Guangzhou, Shanghai, and Beijing, where the medical industry is more developed compared with the some other cities.The company will create its own distribution structure. The product will use the distribution channel of hospital stores and drug dispensaries. Since the focus is on niche marketing, the product will still be sourced from the U. S. plant. long The long-term goal will be to mass market the product in Hong Kong and Taiwan, and use the readings from those markets to penetrate the market Greater China. Establishing distribution networks in the two c ountries will be easier, given the favorable business environments. In Hong Kong andTaiwan, the product will be repositioned as a healthy family lifestyle food, targeting the affluent, health and weight conscious consumers. Aggressive promotion will be pursued, such as publish and media ads, and the employment of product endorsers, and store promotions. Consumer awareness and education will be the focus of the campaigns.