JWT China Case Study

What are the characteristics of the Chinese advertising industry that have implications to Western advertising companies like JWT, from the perspectives of political and economic dimension, and why?
The biggest problem of JWT is how to adapt with China’s fast-growing economy and rapid rise of consumption. With the growing economy, there will be more competitors from both international and local areas. Therefore, JWT China has to strategize its expansion to take advantage of a bigger market share.
The government also has a great impact over the advertising agencies in China. The law has some regulation for advertising contents, and prohibits some wordings and contents that are not appropriate for the Chinese consumers. Advertising agencies in China were subject to the Advertisement Law of People’s Republic of China.
Another problem of JWT China is “their consumers were becoming increasingly individualistic and demanding participants in the marketplace”. This change requires JWT to constantly re-evaluating its channel and advertising approaches for a more sophisticated consumer markets. In the other words, JWT China has to always investigate and learn about their consumers’ trends, culture, characteristics, wants and needs to meet their changing requirements.
What are the key strategies JWT pursue in China that successfully propels the firm to a leadership position?
JWT China is one of the largest integrated communications companies in China, and their Shanghai office become the largest creative center of the company. It means they have a big market share and their brand has already established securely in Chinese’s eyes. In addition, being a pioneer in marketing and communications industry mean JWT China has the advantage of a trend setter and a wide spreading image.
JWT China has built a strong team which is diversified, talented and creative. It ensures they will manage the growth and competition in a quick, effective and creative method. From their recruiting and training processes, JWT nurtures leadership skills and creativity and talent of its employees as its powerful assets.
JWT China operated as a multinational company. This brings them the chance to be transparent and product-oriented work environment under excellent international leadership.
JWT China optimizes its services by synergize the Team JWT “solar system”, including JWT Shanghai, Always, Glendinning and RMG Connect. This powerful team allows JWT China to manipulate the nationwide smart promotion management network. It also enhance JWT China to adapt with various demands and changes from different level of clients.

What are the advantages and disadvantages for a multinational advertising company operating in China? To what extent JWT has or has not leveraged the advantages?
Based on Chinese culture and media understanding, JWT could have some problems with staying at the top in advertising world. First we can say that China was considered as an “old media” market. Although, every family member owns a personal computer, Chinese consumers do not rely on Internet commercials. In China, television, radio and newspapers are still predominant. If the company continues to develop print and TV ads it will have a great success. On the other hand, if the company starts to work more on Internet advertisements and leave the standard commercials behind, it will not be able to continue establishing a good and profitable business in China.
With China being such a vast and diverse place with various tiers, and customs and values of people differing from province to province; thus, it requires a variation approaches to be successful. JWT China, as a big enterprise, may have disadvantage in quickly adapting and customizing to each specific consumer’s cultures and interests in regards of disparity of region and income.
Along with the mentioned culture difference, JWT will need more time and effort to understand the sophisticated difference between Chinese and Western, compared to domestic or local agencies who operated by entirely Chinese people.
What are the social and cultural issues that multinational advertising companies such as JWT have to consider when devising advertising, promotion and communication strategies for clients in China?
The foreign company should be careful by making business in China because of the Chinese consumer behavior, their history and culture. As a major advertising agency, JWT should be very careful with the multinational commercials in order to avoid the conflict and have a positive impact. Since Chinese consumers can be characterized as very highly traditional, their culture and history should be taken in high considerations.
As one of the major companies on the Chinese market, JWT is able to quickly and easily secure its great market share and major role on the market. However, as there is a problem with Chinese income gap, the company should try to target cheaper goods and services, which can bring more profit and advantages. By using marketing and advertising strategies for more affordable products, JWT will explore different segments of Chinese consumers; it will affect them and will bring the positive impact over itself.
Although China is the fastest grow country and has a great ability of inventing the new technology, adopt the new and transform its traditional media understanding to the new media, TV, newspapers and radio still have the greatest impact over the Chinese population. Having in mind, every second person of China uses computer and internet; Chinese consumers are not willing to adopt the new advertising media as a primary source.

Looking forward, what are the biggest challenges for JWT China? What advice would you give Tom Doctoroff?
The future of JWT in China will eventually lead to expansion and growth to meet with the fast growing China’s economy. However, to keep their pioneer position in China advertising industry, JWT has to solve many arising concerns regarding the conflicts among JWT’s different disciplines within their company. They also have to find an efficient strategy to win over their domestic competitors regards of scales, market shares and client’s relationships. In addition, although JWT China already possessed a deep understanding of Chinese’s cultures and history in the past , they still need to focus on any hidden and sophisticated changes reflects the social-economy changing. The message is, the future for JWT China is promising, but there are many challenges and difficulties to overcome.