Secret Recipe

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Table of Contents

1.0 Introduction1

2.0 Culture2

2.1 Relationship2

2.2 Language3

2.3 Beliefs4

2.4 Blending culture4

3.0 Market Segmentation5

3.1 Demographic Segmentation5

3.2 Price segmentation6

3.3 Geographical Segmentation6

4.0 Market Entry7

5.0 Redesign of products or services8

6.0 Product adaptation9

7.0 Other Problems10

7.1 Diseases Outbreak10

7.2 Economic Recession11

7.3 Labour Force11

8.0 Long Term Goals12

9.0 Conclusion13

Reference List14

1.0 Introduction

Secret Recipe has successfully entered the China market as stated in assignment one. Secret Recipe has established two of their main headquarters at two of China’s most prosperous cities: Beijing and Shanghai. The successfulness of the establishment has provided Secret Recipe a foundation in the Chinese Market. The attractiveness and high growth rates of the market have encouraged Secret Recipe in expanding its Chinese market network. This report aims to target the possible changes and important issues in 5 years which is essential for the expansion of Secret Recipe in the near future. 2.0 Culture

Culture is essential for marketing as it conditions wants and needs, which are especially important for the long term plan as many challenges would occur as time goes. It is defined as “the total way of life in a society” by Burca et al (2006: p56).

2.1 Relationship

Establishment of personal trust and relation through networks is absolutely critical in conducting business in China. Trust is a vital supplement to contractual arrangements; it may even take their place.

"Guanxi" is a Chinese word that literally means relations. It is like an alliance or a personal network of business contacts. The benefits that come with this special relationship have an immense impact on the performance of a business and can affect almost every part of a business (Bangayan 2002). Secret Recipe will be required to cultivate a good relationship with the Chinese government, coinciding with the importance of ‘guanxi’ in business markets (Bjorkman and Kock, 1995: p519). If relations are strong enough, in some instances, the people with which you have "guan xi" with will even help you protect your business interests should it come under threat. Once some kind of ‘guanxi’ is established, ‘guanxi’ with other business contacts come easier as one’s reputation spreads throughout the community rather rapidly, enabling one to help a company achieve exponential growth (Bangayan 2002). Good “guan xi” enhances the comparative advantage.

2.2 Language

2.2.1 verbal communication

Language is the key to a country’s culture and is described as the mirror of culture (Hollensen 2004: p67). Foreign companies fluent in the Chinese national language will have an advantage. During staff recruitment, Secret Recipe must ensure that all employees are able to speak and understand mandarin “pu tong hua”. Additionally, as people in different provinces of China speak different Chinese dialects, it will be an advantage for Secret Recipe if its employees are able to communicate in a variety of Chinese dialects.

2.2.2 Non-verbal communication

Non-verbal communications play a major part of your business brand’s identity design. Almost every facet of one’s personality is revealed through his or her appearance, body language, gestures, facials expressions, demeanor, posture and movements. It is said that non-verbal communication encompasses 93% of one’s overall message (Sterling 2006). This is especially important when the Chinese are strongly influence by the teaching of face (mian zi), courtesy (li jie), and humbleness (ke qi).

In Chinese culture, losing face, saving face and giving face is very important and should never be forgotten (Alibaba Global Trade 2006). Courtesy (li jie) is the art of maintaining composure and remaining polite...
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