Introducing Flashcards to Chinese Market - Research Paper Example

HERE HERE YOUR HERE HERE Marketing Plan: Introducing Flashcards to Chinese Market Summary Enrollment in Chinese secondary schools and institutes of higher education has increased dramatically over the last decade. Between 1998 and 2005, enrollment at universities increased by a ratio of 3.7, moving from 830,000 to 3,068,000 (Li, Zhang and Zhao 5). This means that there is a significant market opportunity for being able to introduce flashcards into the Chinese market and gain consumer attention and interest. Flashcards have many different formats, however the basic definition of flashcards is a set of cards that bear questions, vocabulary terms and words, and even mathematical formulas to assist students in memorizing and understanding terminologies and curriculum-based learning. Flashcards are not only used in elementary and secondary school education, they are utilized at the university level as a means of promoting better training and study for many students all over the world. This marketing plan examines the Chinese educational market to determine the best method of introducing flashcards into this market. It identifies the most appropriate target market, the approach to new market entry, the costs of implementing the plan, potential competition, and market conditions that will either pose threats or advantages to new market entry. The Target Market The academic school year for Chinese students is exhausting, an environment in which success in learning is strongly reinforced by parents. In universities, students are given so much homework that it often takes them until 11pm or even midnight to complete it all (MKL 4). The workload given to students is absolutely massive in an environment where students are driven to achieve very high grades and where they are often punished by their parents for failing to exceed expectations for success. In fact, if students are caught engaging in recreational reading instead of completing homework, the retribution is quite severe (MKL 4). It is important to understand the cultural dynamics and the actual workload given to students at universities in order to determine the target market. The Chinese culture is highly collectivist, meaning that group membership and group loyalty are important cultural needs and expectations in Chinese lifestyle (Hofstede 71). Therefore, with many parents reinforcing the importance of success in academics, this cultural dimension is passed down from generation to generation and becomes part of the social and cultural norms in the country. Collectivist cultures place much emphasis on saving face (keeping a good reputation) which provides enormous advantages for ensuring flashcard market entry is a success. Students who do not succeed and are unable to learn complicated learning materials provided by the university can face social humiliation and considerable dishonor. Accordingly, the target market for flashcard introduction in China will consist of the 16-24 year old markets, those with the most to lose for failing to meet academic expectations. This market in China is in a stage of development, according to psychological theory, where exploring and finding their identities is very important for emotional stability and for social belonging (Morris and Maisto 176). With China being a collectivist culture, flashcards have the ability to provide students with important psychological improvement, enhance social belonging, whilst also satisfying their need for building an important reputation for success and achievement. This is the market most likely to buy flashcards if there is effective promotion that plays upon cultural dimensions and the psychological needs of the group. The Marketing Approach This marketing plan, based on findings about the cultural and psychological needs of the 16-24 year old markets, will utilize psychographics in all areas of promotion. It will be important, according to marketing theory under psychographics, to build important emotional connections with the identified target markets. Flashcard concepts can be easily replicated by existing competition which means that there must be a brand-building strategy in order to differentiate the product, in the minds of consumers, from other flashcards available in the Chinese market. When consumer target markets believe that a product can improve their self-expansion, they will often develop strong emotional connections to the brand (Zhang and Chan 1067). By self-expansion, this means being able to improve lifestyle or social status in society. This is why the brand must stand out over competition, make emotional connections with consumers, and coerce target consumers to believe the brand (product) can completely enhance their personal and educational growth. This is why promotions will be important, even though they represent a higher expenditure in the marketing function. The goal is to build a brand identity and brand reputation over other flashcard-distributing companies to build these important connections between brand and consumer lifestyle. Differentiating one flashcard product from another is quite difficult without emphasis on brand management. Entry into the Chinese market will consist of an initial promotion prior to launch that will familiarize the target markets about the brand. It will feature social situations in which various Chinese actors are shown being embarrassed by not understanding university learning materials. To the benefit of the student, another Chinese actor will pull out this company’s brand of flashcards in an effort to better tutor the student. These promotions will be produced for television and magazine advertising in important periodicals and channels that cater mostly to the 16-24 year old Chinese markets. It will be important, again, for the scripting and dialogue for the advertisements to be aligned with important social factors previously identified for the collectivist culture. Once the aforementioned three to four week promotions have been completed, billboards near university regions in the country will further emphasize the brand using various Chinese actors in the same age group. Such slogans as “Don’t be a dummy” or “Your friends will thank you” will accompany this secondary promotional strategy at the time of launch. The brand will be working with various distributors in the marketing channels, ranging from common retail stores (i.e. Wal-Mart) to agreements with university leadership to allow the product to be sold in-store. What will make the flashcard brand unique is that students will be able to utilize a dry erase marker (included in the packet) to modify the flashcards with their own unique content and learning materials. Other competing flashcard manufacturers do not offer this ability which will make the brand stand out from different flashcard brands already available in China. By giving the student the ability to create their own learning materials, it will enhance perceptions of convenience and give them a sense of personal ownership over their learning process. The Costs of Market Entry Fortunately, the Chinese market environment has low cost manufacturing facilities that can produce the cards in a business environment well-supported by the Chinese government. Prior to market entry, the company will be consulting with various business groups (which are large conglomerates) to identify who will be able to produce and manage inventory housing of the flashcards prior to distribution to retailers and universities. The brand leadership will be travelling to China to speak with production facilities, identify needs for production, and then offering royalties on every sale of the flashcard brand. This will avoid the high costs of foreign direct investment into facility development and, instead, be able to manage this third-party system with guarantees of revenue sharing for the producers and distributors. Costs of production will vary depending on demand, however to minimize high operational prices, the company will be making large batch runs of the product and them housing them in third party warehouses. Trucking companies will be subcontracted for moving the brand into the retail stores and universities on an as-needed basis, utilizing the very large roadway infrastructure that exists in the urban regions of China. Table 1: Estimated Costs of Start-up for Market Entry Initial Production Batches $100,000 Distribution $40,000 Pre-Launch Promotions $120,000 Billboard Promotions $30,000 Third Party Inventorying Total Costs: $10,000 $300,000 The initial costs of introducing the brand into the country will require a premium pricing model, which will be supported with a strong brand-building focus. The flashcards will be priced at 50 Yuan (the Chinese currency), which is a price that will help to offset the initial costs of market entry. This will require only 6,000 units to be purchased within the first three months of market entry to break even on the costs associated with initial launch into the Chinese market. This is a realistic plan that will require dedication to building a powerful brand identity, using psychographics, in an environment with over three million potential customers all across China. Market Analysis, Competition and Brand Building Research did not identify any competitors that have strong brands in China, which gives this company’s brand of flashcards a competitive advantage. However, business theory indicates that a threat of new market entrants and competitive rivalry could pose risks to the business. Therefore, there needs to be more focus on executive-level leadership to make sure the brand understands whether there are new entrants, perform environmental analyses, and come up with contingency strategies in the event that new risks emerge in the country. Other companies may attempt to replicate the business model for these flashcards which means the business must be flexible to changing market conditions. There are few barriers to market entry and much ability throughout China for up-and-coming flashcard producers to use third-party production and distribution in China which could pose long-term threats. Recurring market research analyses and executive strategy development will be necessary to achieve profit growth and brand uniqueness. With very few abilities of the company to build barriers to new competitive entry, senior-level company decision-making and competence in research will be vital to achieving success in this dynamic market. Conclusion If the brand is able to create important connections with the target consumers, the brand is likely to exceed sales expectations and achieve profit within only a few months of market entry. Psychographics, as identified, are important with collectivist attitudes and the nature of the Chinese educational system in the country. This brand should be able to become the foremost Chinese brand of flashcards and also avoid high operational costs through third party service providers. The strategy of using pre-launch, culturally-relevant advertising should be an excellent foundation for creating brand recognition and brand preference in a social environment where collectivism is important. By focusing on the emotional needs of consumers in the target audience, the brand will create important perceptions of enhancing lifestyle for buyers and build strong brand attachments in the process. This will be absolutely vital to building a strong brand and gaining consumer loyalty. Works Cited Hofstede, Geert. Culture’s Consequences. 2nd ed. Thousand Oaks, CA: Sage Publications, 2009. Print. Li, Yao, John W. S. Zhang, and Xiliang Zhao. “The Transformation of China’s Higher Education System and its Global Implications”. China Policy Institute. 2009. Web. 15 Nov. 2013. . MKL. China’s Education System, Chinese Students, and the Foreign English Teacher. Middle Kingdom Life. 2011. Web. 15 Nov. 2013. . Morris, Charles, and Albert Maisto. Psychology: An Introduction. 12th ed. Pearson Prentice Hall, 2009. Print. Zhang, Hong, and Darius K. Chan. “Self-Esteem as a Source of Evaluative Conditioning.” European Journal of Social Psychology 39.6 (2009): 1065-1074. Print. Read More