Transnational Advertising - MengNui Bring the Purity Back - Assignment Example

Transnational Advertising Name: Institutional affiliation: Question 1: The Selected Local Brand What the Brand Is The local Chinese brand that has been selected in this assignment is MengNiu. MengNiu group is the company that is producing MagniNiu brand, and is one of the leading dairy firms in the whole of China. The company was established in August 1999 and it is headquartered in Hohhot city (Cai, 2015). The Company’s asset is about 141 billion Yuan and it has the capacity to produce about 6 million tons a year. The company produces dairy products like liquid and powdered milk, yoghurt, ice cream, and cheese under MengNiu brand. The company’s main objective is to provide high quality dairy products to improve health of customers (Cai, 2015). The company aims to be one of the outstanding international dairy companies based in China through its brand known as MengNiu. One of MengNiu adverts that have helped in building the brand is “MengNui Bring the Purity Back.” The advertisement is aimed at countering the challenges that food industry has faced in China lately. Chinese food industry has been faced by food scandals that have negatively impacted in the industry (Cai, 2015). The company, therefore, wanted to promote the purity of its products and to assure dairy consumers that its products are pure. The Brand Potential The main potential for the company is the increasing growth of dairy industry in China in the last one decade. The sales volume of product in China is growing at a relatively stable rate of 26.49%, which gives the company the potential to expand its market and production (Fuller et al., 2006). Compared to other developed countries in the world, the per capita dairy products consumption rate in China is still lower. However, the rate is expected to increase due to the increasing number of middle income earners in China as the Chinese economy is growing. The company, therefore, has the potential to increase its market share by perfecting its operation efficiency. In addition, the company also has the potential of expanding to international markets like South Asia, Russia, and Japan. Personality of MengNiu MengNiu dairy products are known to be promoting better quality life to all its customers and the society in general. The products are tailor-made to create quality life to consumers by providing them with natural, nutritious, and green milk products (Cai, 2015). MengNiu intends to create a quality life to all its customers by surpassing the government’s required protein content of 13.8% to reach 17.1%. The main aim of increasing the protein content to more than 13.8% is the desire of the company to create a higher nutritional value of its products compared to the regular milk in the market (Cai, 2015). The company is also striving to produce high-end pure milk dairy products for it to gain a competitive advantage in the dairy market, which is characterized by stiff competition. Therefore, customers associate MengNiu brand with taste, high quality, and purity. Question 2: Global Branding Strategy MengNiu global brandings strategy will have five key steps that will ensure that it penetrates the international market. The two international market that it wants to venture in include the US and Canada. The five steps include: 1) Clear Understanding of Customer Behavior Consumer taste and preference differ from one country to another and from one culture to another. MengNiu, therefore, will carry out a comprehensive research to understand the behaviors of the consumers in the international markets it wants to venture into. Understanding consumer behavior is going to help the company to come up with effective advertising strategy that will have a significant impact on the targeted consumers (Douglas & Craig, 2010). This first step is also going to help MengNiu to understand the psychological and purchasing behaviors of the target market. 2) Positioning The second step of the global branding strategy that MengNiu will take is to position itself properly. The first step it will use to position itself is to understand the nature of competition in the chosen international market for it to have a competitive advantage in the market. It will identify the key providers of dairy products in the market, the size of the market they command, the target market, and the promotion strategies that they use. In positioning itself, it will seek to fully understand how distribution is done to the end consumers, how consumers would prefer to reach the products, and the preferred means of delivery to the final consumers (Imam, Zadeh & Dubey, 2011). In addition, the positioning will ensure that the company understands where consumers shops in order to find better ways of fitting into the mix. 3) Brand Translation A brand may have different meanings depending on the country and its culture. Therefore, the MengNui will ensure that it translate the brand to fit the new market. First, it will ensure the true meaning of MengeNui in the new markets to confirm whether the brand fits the market or if it needs to be translated for it to be accepted in the market (Imam, Zadeh & Dubey, 2011). The company will also ensure that the colors used are favorable to the new market because some countries prefer one color or colors to others. For instance, the preferred colors in the US are blue and green, which is in the line with brand logo. Brand translation is important in the global branding strategy in order not to offend the existing culture and norms in the new market. 4) Associating with Good Partners MengNui values its intellectual property and it will ensure that the same is protected by associating with the right partners. It will partner with attorneys in the new market who will help it in protecting its intellectual property and trademarks. The company also will work with the reputable trade representatives who will not misuse or misrepresent the brand. The selected partners should have full knowledge of the market to avoid unnecessary mistakes that may affect the performance of the brand (Imam, Zadeh & Dubey, 2011). 5) Broad Thinking The company will not be limited to its traditions, cultures and structure when it goes abroad, but it will be flexible enough to accommodate any changes that may occur. If necessary, it can change its logo, name of the company, or trademarks to fit in the new market. Global strategy will cover the five key steps to ensure that its expansion to the international market bear utmost fruits to the company (Imam, Zadeh & Dubey, 2011). Question 3: The Two Countries The two countries that have been selected are the US and Canada. The two countries have different cultures and advertising regulations that it has to consider in ensuring that it has effective advertising. In addition, the company may be forced to redefine its target market based on the nature of the new markets in the US and Canada. The cultural, regulations and target markets are analyzed as per the country. Cultural Differences The cultural differences among the three countries are based on language, values and behaviors of consumers. The widely spoken language in the US is English while Canada has two main official languages, English and French. Contrarily, China is dominated by Chinese language as the official language. Cultural values in Canada are almost similar to those in the US. To attract consumers in the two countries, the advert should lay more emphasis on individualistic benefits that consumers can derive from the product (Yu & Zhang, 2009). Consumers from the two countries also value speed and quality in terms of product and service delivery. They also value genuine information and they are not attracted by advertisements that are exaggerated, which may be common in China. Canadians and Americans are also sensitive to the environment and social justice and they are also flexible to changes. In terms of consumer behaviors, Canadian and American shoppers are less engaged than Chinese in seeking the information about the product they want to purchase. Americans and Canadians trust the market and therefore they trust the products unlike in China where fake products are many (Emery & Tian, 2010). Unlike Chinese who rely on social media to get information, the Canadians and Americans prefer market places to websites and social media when they want to make purchasing decisions. In addition, consumers in the west are more loyal to a brand than their counterparts in China. Target Audience The target audience will remain the same regardless of the chosen country because dairy products are like basic food consumed by everybody. People of all ages, race, ethnicity, and sex consume dairy products. Therefore, MengeNui will still retain its target audience as it explores the two markets (Cai, 2015). Regulation in Each Country The United States of America The US Dairies and Dairy products law do not allow any firm to use the names of dairy products like milk, cheese or churn when advertising for any substitute of dairy products The law prohibits any form of consumer deception by an advertising claims Food advertisement focusing on children must have a meaningful contribution towards the health of children. All the food advertisements should meet the required safety standards The packaging and labeling of any food product should not mislead consumers Canada The advertisement law does not allow misleading information and the company should provide sufficient information that enables consumers to make informed decisions. The law prohibits misleading selling price The law prohibits the sale of a product above the advertising price The package should contain important information like ingredients, dates of expiry, country of origin, net quantity, and nutrition levels. The products must meet the safety and health standards Question 4: Creative Execution Media to be Use The advertisement will use two main media and they include social media and TV. The preferred social media is Facebook because 71% of Americans and 60% of the Canadians use it to access information. Social media is also chosen in this advertisement because consumers trust information from their social media friends direct advertisement message (Evans, 2012). TV is also chosen as another media to bridge the gap between those who intensively use social and the aged who may not use social media to seek information (Smith & Zook, 2011). . Many people of all generations still rely on TV to access information. Appeal to be Used The advertisement will employ rational appeal to reach the target market by focusing the benefits a consumer will gain by consuming the product. It will emphasize on the beneficial and unique features of the products. Rational appeal is chosen in this case because the target market is not swayed by exaggeration, but they prefer facts and individualistic benefits of the product. Key Message The key message will be coined around purity, nutrition and health benefits of consuming MengNui products. Due to increased use of chemicals to process and preserve dairy products, MengNui will position itself as a company that produces pure, nutritious, and healthy dairy products. The message will be: “Buy Purity, Nutrition and Health in One Package.” Hofstede The American and Canadian culture is characterized by individualistic dimension while the Chinese culture is characterized by collectivistic dimension. Therefore, the advertisement in America and Canada should be in individualistic context while that in China should be family based because collectivistic dimension is focusing on family and social ties in the society while individualistic focuses on the individual benefits (Cai, 2015). References Cai, Y. (2015). MengNui Marketing Strategies. Retrieved from https://www.theseus.fi/bitstream/handle/10024/94227/Cai_Yuan.pdf?sequence=1 Douglas, S. P., & Craig, C. S. (2010). Global marketing strategy: past, present, and future. The Past, Present and Future of International Business & Management, 431. Emery, C., & Tian, K. R. (2010). China compared with the US: Cultural differences and the impacts on advertising appeals. International Journal of China Marketing, 1(1), 45-59. Evans, D. (2012). Social media marketing: An hour a day. John Wiley & Sons. Fuller, F. H., & Beghin, J. C. (2015). China’s growing market for dairy products. Iowa Ag Review, 10(3), 5. Fuller, F., Huang, J., Ma, H., & Rozelle, S. (2006). Got milk? The rapid rise of China’s dairy sector and its future prospects. Food Policy, 31(3), 201-215. Imam, A., Zadeh, M. N., & Dubey, L. R. (2011). Dairy Marketing Strategies in the Context of Globalization: Issues and Challenges. World, 86(80), 104. Smith, P. R., & Zook, Z. (2011). Marketing communications: integrating offline and online with social media. Kogan Page Ltd. Yu, C., & Zhang, T. (2009). American Fast Food in Chinese Market: A Cross-Culture Perspective: The Case of KFC and McDonald's. Read More