You are the head of worldwide product for Dynasty International - a large company that makes shampoo and other personal care items. You are considering entering a specific China market (Western China) for your line of shampoo, where most people earn less than $2 per day. Still, it's an opportunity that you don't want to miss. At first you thought you could offer a truly standardized product (same exact shampoo as you offer in the USA market) at a similar price point (once you have factored in the exchange rate), but after doing some extensive market research, it appears you may have to make a few adjustments to your marketing mix (4 Ps of marketing).
1A. PRODUCT: You have realized that the China market you are addressing only shampoos their hair approx. once a week; a far difference from most people in the US shampooing on a daily or almost daily basis. In addition to that, water scarcity is a real issue and people can only spend maybe 1 minute maximum on shampooing their hair. From a PRODUCT ATTRIBUTE (R&D) standpoint, will you change your product attributes or will you leave them the same as the domestic product? And if you change the product attributes, what changes would you make and why? (Hint, you'll also need to think about how that relates to your pricing strategy in 1D; it all ties together).
1B. PLACE (DISTRIBUTION): In this particular part of Western China, there are no Wal-Marts like there are on the east coast of China or the big cities. Retail is quite fragmented in this area (we discussed the difference between fragmented and centralized retail in class). What distribution strategy(ies) will you rely on in this Western city of China? And Why? You must provide a rationale for your decision(s) and you may want to incorporate more than one. (Hint, read about partners or distribution on your own and also think about what we've discussed often in the second half of the semester - where to produce? Locally for each market, centrally for every market, etc.)
1C: PROMOTION: In the domestic (USA) market, you use many sophisticated marketing and advertising campaigns to market and sell your product. But since the US market is so competitive and there is so much "noise" competing for the consumer's attention, you clearly utilize a combination of push/pull tactics. In this Western China region, consumers do not necessarily own a TV and there are no mass communication tactics, so you conclude that a PUSH strategy makes more sense. That being said, please describe what kind of ways you would promote and communicate the value of your shampoo. Please be specific. (Hint, you need to remember the class discussion and consult the chapter on promotions to understand what a push strategy is).
1D. PRICE: Remember the opening scenario, in this Western China demographic, people make less than $2 a day; however, it is still an opportunity you don't want to pass up. In the US market, you are a moderate, mass player (like a Pantene, for example). What pricing strategy will you utilize with your product in China? And Why? Again, you must provide a rationale for your responses. (Hint, things to consider are: what you've decided in section 1A, your general brand positioning, the local/current competition, your manufacturing costs and if you will manufacture locally or import from the USA, etc.)