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International Marketing -

Identify the critical issues (ie: key international marketing decision need to be made) facing the business highlighted in the case study

The immediate question was whether should move into the B2C area at full speed or wait and see how other competitors fared in the China on-line market.

What segmentation that should employ if they decide to enter the B2C market in China. Should it aim to cover all market segments and product lines, or target young people who tend to use the Internet more frequently?

Besides, should focus on other age groups or should it adopt a mass-market strategy?

Generally, young people between the age of 18 – 24 has low average salary, should change its focus group?

Moreover, people tend to be skeptical about quality of goods, after sale service, company reputation, etc. when buying jewelry, how should win customers trust on this issue?

Identify logical alternative solution(s) to the decision you’ve justified

The following should be supportive for to move into the B2C area at full speed. ■ Huge market potential in mainland China as spending power on the rise ■ Consumption pattern of young generation is becoming more internationalized ± increase internet usage ■ CEPA- zero tariff; possibility of price reduction attracts customer leading to both buyer and consumer profit

Consumption pattern among young generation tend to increase in spending power and covers the highest share in internet users. Thus, should concentrate in mid to high end market in order to capture its target segment.

Focus Group
Initially, should not focus on other age segments because companies like Laofengxiang, LaoMiao, Chow Tai Fook, Luk Fook are already serving them efficiently. Also, major internet users falls in the age group of 18 to 24.

Low Cost Salary should offer cheap products in which they already have core competency. They can introduce EMI schemes to interested buyers specially during occasions likeChinese new year, Labor day, National day

Quality and Services is known for its quality and service, this is the reason they used to target mid to high end customer by offering products at a relatively high price than local producers. Analyse the pros and cons of each alternative solution. You should provide both qualitative and quantitative (if necessary) analysis, using the information provided in the case study.

Business Environment
■ Currently, 77 million broadband users, rising at 20% rate annually ■ High regard for Hong Kong jewelry in China
■ Much larger and unexploited customer base
■ Rising GDP growth, especially of coastal cities

Industry Trend
■ No fierce competition in the target age group
■ Jewellery market in mainland China lacks brands and designs

Competitive Advantage
■ Pioneer advantage
■ Knowledge and experience from LF about width and depth of the industry ■ Experience in IT services
■ Expert in security surveillance systems

Provide action-oriented recommendations, and your rationale for your recommendations.

B2C Service
Sell products direct to the end users. Just like some fashion websites, using 3D models for costumers to image jewelry and try to find the right piece of jewelry to suit their personal dressing. Using something like this is much attraction to costumers, and much better with s’ jewelry experience.

Become an agency of Europe or America corporations
Luk Fook as a top brand of jewelry market should have a remarkable database of industry knowledge such as local sourcing, supply chain, price, etc. With this strength, could become a powerful agency for overseas corporation. At the same time, provide multilingual version of website to allow customer of all both Chinese and...
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