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Ego Executive Report

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Ego Executive Report
Executive Summary
This paper is to analyze the barriers of entering Chinese pharmaceuticals market and based on that an export strategy is developed for Ego Skin Cream. In this paper, we compare Chinese pharmaceuticals market and Indian pharmaceuticals market for choosing a promising market. Although Chinese market has more advantages than Indian, culture barriers and complex legal system in China are two major factors can’t be ignored. In this case, market entry strategy is the main decision which should be developed to overcome the culture and legal barriers. Following market entry strategy, STP in China is analyzed. Accordingly, marketing mix is also suggested to change to adapt to Chinese market. In the end, the overall recommendation is provided.
Brand and Company Overview
Ego Skin Cream is the moisturizing cream product that provides the professional treatment for the dry skin, particularly useful on the face, lips, hands, elbows and heels. It also can be used as a daily facial moisturizer and is suitable for any skin type. The manufacturer is Ego Pharmaceuticals who own other well-known brands such as QV and Sun Sense. Ego Pharmaceuticals is an Australian-owned pharmaceutical company providing the skincare products for more than 50 years. Ego Pharmaceuticals presents itself as the specialist in the treatment and prevention of skin diseases and the maintenance of healthy skin. Although two skincare brands QV and Sun Sense have achieved outstanding performance in sales, Ego Skin Cream as a treatment product brand is still out of people’s mind. The causes can be found in many ways. First, most Australian are very conscious of skin care. Moisturizing cosmetics are generally daily used so that serious dry skin is not a common disease in Australia. In addition, countless well-known brand skincare cosmetics can be found in every pharmacy throughout Australia which is another reason for the bad performance of Ego Skin Cream. In this case, multinational marketing



References: Barkema, H.G., Bell, J.H.J., Pennings, J.M. (1996), "Foreign entry, cultural barriers, and learning", Strategic Management Journal, Vol. 17 No.2, pp.151-66. Boisot, M Brouthers, K.D., Brouthers, L.E. (2001), "Explaining the national cultural distance paradox", Journal of International Business Studies, Vol. 32 No.1, pp.177-89. Business Monitor International,(2008), China Pharmaceuticals & Healthcare Report Q1 2008 Kermani, F., (2008) “China captivates the clinical trial sector”, Pharmaceutical Technology Europe, May 1, 2008 China Internet Network Information Center, (2008) “CNNIC releases the 22nd statistical report on the internet development in China”, www.cnnic.net.cn Dahlman, C.J Davies, H.A. (1995), "Interpreting Guanxi: The Role of Personal Connections in a High Context Transitional Economy," in China Business: Context and Issues, Howard Davies, ed. Hong Kong: Longman Asia, 155-69. Dornbusch, R. (1997), “An Achilles’ heel that could cripple China”, Business Week, September 15, p. 24. Fletcher, R. and Brown, L., (2008). International Marketing, An Asia-Pacific Perspective, Fourth Edition, Pearson Education Publishers, Sydney. Grace, C. (2004), The Effect of Changing Intellectual Property on Pharmaceutical Industry Prospects in India and China: Consideration for Access to Medicines, DFID Health Systems Resource Centre, June. Greene, W. (2007), “The emergence of India’s pharmaceutical industry and implications for the US Generic Drug Market”, US International Trade Commission. Goldman Sachs, (2007), China: Healthcare Report, December 2007 Kotler, P., Brown, L., Adam, S Leung, T., Y.H. Wong, and S. Wong (1996), "A Study of Hong Kong Businessmen 's Perceptions of the Role of Guanxi in the People 's Republic of China," Journal of Business Ethics, 15 (7), 749-58. Li, Y. et al., (2005), Dry skin: Specific features in Chinese women, Journal of applied cosmetology, Vol. 23, No 3, pp. 83-91. Liu, S McGregor, R. and S. Bala (2002), "Asian Tigers Fear Last Supper Thanks to Ravenous China," Nomura International HK Ltd (1996), Prospectus of Shangdong Xinhua Pharmaceutical Co. Ltd, Hong Kong Financial Times, (June 18). Root, F.R. (1994), Entry Strategies for International Markets, Lexington Books, New York, NY, . State Statistical Bureau (1995), China Statistics Year Book, State Statistical Bureau, Beijing. Walters, P. and Samiee, S., “Marketing Strategy in Emerging Markets: The Case of China”, Journal of International Marketing, Vol. 11, No. 1 (2003), pp. 97-106

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