Zija International Entry into Chinese Market - Case Study Example

Business

Zija International entry into Chinese market

Executive Summary

The quest for health is eminent with most people in the world today. Similarly, the need is coupled with financial constraints and time freedom, which calls for appropriate organizations to venture in. Zija International is one company that seeks to ensure that the health needs of the people are met through offering appropriate nutritional product from the Moringa plant. With the products being appreciated in various places, China sets in as the next possible market, considering the population and the needs of the people. However, the anti-foreign company mindset held by most Chinese and the heavy taxation from the government on foreign companies object the development of the organization therein. Measures involved to ensure that the firm establishes itself properly in the country include identifying with the people through offering employment opportunities for them and further engaging in community-based activities with non-governmental bodies on the ground to ensure that the firm effectively establishes. On proper establishment, the firm is expected to reap increased returns and expand, besides ensuring that the health of the people is maintained. The paper, therefore, focuses on the entry of the firm in the Chinese market.

Company Background

Everyone seeks to ensure that they are leading a healthy life. Nutrition stands out to be one of the greatest considerations with regards to healthy life. Nutrition implies a good feeding program as well as ensuring that there is adequate physical exercise (Plant, np). In the efforts to ensure that good food product, Zija International, a company that engages itself with food natural and nutritious food products was developed to ensure that people have easy access to good food for their health. Moringa is one of the many products from the company that has received massive acceptance of some people across the world. The product is readily received due to the significant health benefits that are associated with it.

Zija International has its foundations on a documentary that entailed wild plants in vast lands. Interests then cropped up from the so-called “miracle plant” which seemed to be rich in some nutrients. The man behind the discovery was Ken Brailsford, who also happens to the pioneer of the nutritional supplement industry and the founder of Zija International. Partnerships were then developed between the founder and some respected botanical researchers and clinical pharmacologists as well as a Biomedical Scientist, Dr. Joshua Plant (Plant, np). The theme of the partnerships was to obtain the components of the miracle tree and find its essence to the people with regards to nutrition. In the end, there were a series of products that were developed from the plant, including nutritional, natural energy drinks, a system for weight management as well as some skin care products (Anwar, 19). Thousands and hundreds of lives have been changed by Moringa products, which make Zija International to be positioned for delivering nutritional services to the world.

The company has experienced significant positive responses with some people in different nations. Lately, it has been established in over 20 countries, with its headquarters in the United States. In the establishment, the company develops farms that are used to raise the plant as well as a processing unit used to develop the various products from the plant (Plant, np). In the long run, it does not only benefit from the country it has been set up solely but also benefits the country through offering employment opportunities for the population hence economic empowerment. The jobs range from working in the field, for raising the plant, as well as the processing of the products and further sales agents. Zija International works under the mission of being the leading natural health revolution and consequently helping the individuals achieve unlimited life.

Country Background

China is well known for the great population that is appealing to any business enterprise. With enough population, business is well sufficient to ensure that profitability is attained as well as its expansion. Such, therefore, is the baseline to the prompt of the company seeking to establish its services in the country. Similarly, it is considered that the nation has intensified in technological advances, thereby leaving a loophole in the sector, which makes it appropriate for the firm to establish its services therein. Additionally, studies have identified that there are no significant threats, as in competitors, venturing in the industry in China, and thereby leaving the possibility for the firm to establish the services there successfully and without any resistance whatsoever.

The Chinese market has however been associated with great patriotism, where a majority of preferences are made to the indigenous firms and organizations (Dickson, et al., 312). Penetrating the market, therefore, may prove to be a hard task, but with the negations that are underway, through media sources and government and non-government organizations, the firm is set to establish effectively and with great ease. Similarly, China has been known as a country with a huge population in external countries (Dickson, et al., 315). Almost every nation has a community of Chinese citizens in it on various missions, including studying, as well as businesses and various other technological projects, such as the building and construction industry. In some of these countries, it has therefore been seen that the Chinese people have greatly appreciated products of the company, thereby providing an open door for the products to reach their country. The demands arising from the people have therefore caused the need for the establishment of the firm in China.

Entry Strategy

Penetrating any market calls for a defined plan to ensure that the services offered are readily accepted. As early noted, the country of interest has one of the paramount impediments in the business market; patriotism, which features the native or indigenous mindset (Khoe & Sul, np) significantly. As with such, people always tend to buy products that are owned by their fellow citizens or from companies that have been founded and are being run by their people. Such a mindset is similarly perceived by the government and some of the bodies thereof, which impose high taxation on the foreign product. Though the nation is considered to be developed by the government and the people, there is a role that a foreign company needs to play to ensure that the attention of the people is received.

Some of the entry strategies have already been launched, which include focusing on bilateral relationships between the country and representatives from the firm. The top executives of the firm have negotiated talks aimed at ensuring that the role of the company and the benefits thereof are properly understood and appreciated in the country (Khoe & Sul, np). Additionally, the firm has devoted to providing jobs for the citizens in China, right from the production unit to the sales and management department. Such therefore creates trust in the company by the people. The firm will be seen to be run expressly by the Chinese people. The employment opportunities offered will equally result in the improved economy in China.

Partnerships with both government and non-governmental organizations are also another profound strategy that has been deployed to ensure that the acceptability of the firm in the host country is attained (Khoe & Sul, np). Non-governmental organizations are mostly community-based and are charged with the social welfare of the people such as about health. The partnerships will, therefore, seek to teach the people about nutrition as well as offering options for the people to choose from with regards to nutrition. Moringa products will, therefore, be proposed as the best and legit products about nutrition. Such will, therefore, ensure that the country is properly established in the country and also attains increased profits.

Marketing and R&D Strategies

Marketing is an essential component of a given firm which ultimately determines the profitability with regards of the firm. Strategizing, however, will ensure that the component is well done and that the objectives thereof are entirely met (Lee, 949). The plan needs to be solid, smart and effective enough to ensure that the key point is attained. As with the Zija International, one of the key and most commonly used strategies; about the current generation is media. Different medias have significantly caused an increase in the profitability of the firm through increased sales of the product. Such options range from social medias, print media – featuring both newspapers as well as magazines – as well as a website.

Luckily, the firm already has a well-developed website, http://www.drinklifein.com, which encompasses the different components as well as the structure of the company. Considering the Chinese are well abreast with technology, such will thus effectively serve to ensure that the products advertised and marketed throughout the country (Hauser & Shugan, 91). Social medias such as Twitter and Facebook will also be greatly significant in ensuring that the products are well marketed to the people.

Besides virtual and electronic means, the firm will have sales agents who will be paid on a commission basis in their efforts to ensure that the products are well distributed throughout the country (Hauser & Shugan, 97). Also, establishing a resource center that will ensure that the products are readily accessed, and the information thereof granted to the people will be greatly significant. Development of partnerships with leading shopping malls and groceries will also help to ensure that people have an easy and random access to the products. The core of it all is to develop and maintain a proper raptor with the people and the nation in general.

Opportunities

From the research study that has been conducted in regards to the Chinese Market, it is well visible that there are little concerns with nutrition, and therefore firms that are engaged in the business are not vibrant as such and are also not so profound. Such therefore offers a grand and good opportunity that ensures that the firm properly establishes and sets out to meet the needs of the people. Additionally, with the current issues on health concerns and the effort for people to keep fit, it becomes essential enough to ensure that people their needs are well met. The population offers a great opportunity for the establishment of the firm and offering a significant marketing base.

Challenges

The major challenge that has been observed is with regards to the patriotic nature of the people as well as the country. Identifying with a foreign body always seems hard for the people since their mindset is knit towards enriching and developing their “own” businesses (Su & Littlefield, 203). Additionally, heavy taxation on foreign companies can be seen to lower the perceived profits of the firm. Additionally, since the host country is seemingly naïve with the firm, finding the right people to work with will be a challenge, thereby impeding the quick and effective advancement of the firm. The firm’s orientation requires people with a combination of agricultural, business as well a business background, and therefore finding such, in a nation that is so engraved with engineering and technological mindset is quite hard. However, with proper training and time factor, the best is expected to be achieved.

Evaluation

With the plan that has been instituted, it is expected that acceptability in the firm will be convenient enough. The need for nutrition products is paramount, and therefore since Zija International offers the services, it remains practical that its adoption will be guaranteed. Additionally, as for the partnerships that are created and effected with the government, non-governmental and community-based organizations, as well as marketing institutions, such as shopping malls, penetrating through the market, will be very easy. Offering employment opportunities for the people is also very paramount and a good strategy to ensure progress.

Conclusion

Entering a new market is seemingly a challenging task for any business. Zija International has however been engaged in a multitude of these and therefore the experience gained validates entry into China. Partnerships and identifying with the people by offering what they need is fundamental for the company. Similarly, the products offered by the company are effective and in need of the people but the providers are limited. It, therefore, follows that upon establishment; people will greatly benefit and thus it is effective. Despite the challenges with the heavy taxation and the foreign-phobia mindset, the strategies employed will be sufficient to ensure that the establishment of the company is well perceived. If the firm establishes itself effectively in the country, which is expected at the end of the day, the firm will enjoy increased profitability and expansion and serve to meet its vision.