Marketing Strategy of Clear Shampoo in China
Marketing Strategy of CLEAR Shampoo in China
Contents
1. Introduction
In Chinese shampoo market, many companies are facing the same problem---Homogenization. It is, therefore, significant to adopt effective marketing strategy to attract target and potential customers. As for CLEAR shampoo, it is one of the most distinguished shampoo brands all over the world and belongs to Unilever. Before CLEAR came to China, it has become the top brand in dandruff market in South America, Europe and Southeast Asia. CLEAR landed in China in 2007 in order to seize one billion yuan shampoo market. In this report, PEEST analysis and SWOT analysis are used to analyze the environment of CLEAR marketing, which is useful to find problems and solve problems. Several suggestions have also been made on how to improve its marketing strategy in the future. 2. The macroenvironment of CLEAR marketing
PEEST analysis
Political and legal forces
The political and legal environment refers to the local, state, national and global laws and regulations that affect businesses (Jacob Aabroe, 2006). In China, "Fifteen" plan proposed the development of light industry, including chemical. As for Unilever, it also encountered a golden period of its development. The abolishment of hair care products consumption tax in 2006 was an opportunity for Unilever to promote consumption and make the price more elastic. Economic forces
A good way to measure the market potential for a product is to look at a country’s economic health. Gross Domestic Product (GDP) is the most commonly used tool to measure whether a country’s economy is healthy. In China, the total GDP was $7.04 trillion in 2008(CIA World Factbook, 2008). Moreover, Chinese economy is increasing rapidly within 5 years, GDP growth rate was 9.5 percent each year. There is no doubt that Chinese people’s spending power has already considerably improved. Ecological environmental forces
Unilever launched activity called “blue hills and green
Contents
1. Introduction
In Chinese shampoo market, many companies are facing the same problem---Homogenization. It is, therefore, significant to adopt effective marketing strategy to attract target and potential customers. As for CLEAR shampoo, it is one of the most distinguished shampoo brands all over the world and belongs to Unilever. Before CLEAR came to China, it has become the top brand in dandruff market in South America, Europe and Southeast Asia. CLEAR landed in China in 2007 in order to seize one billion yuan shampoo market. In this report, PEEST analysis and SWOT analysis are used to analyze the environment of CLEAR marketing, which is useful to find problems and solve problems. Several suggestions have also been made on how to improve its marketing strategy in the future. 2. The macroenvironment of CLEAR marketing
PEEST analysis
Political and legal forces
The political and legal environment refers to the local, state, national and global laws and regulations that affect businesses (Jacob Aabroe, 2006). In China, "Fifteen" plan proposed the development of light industry, including chemical. As for Unilever, it also encountered a golden period of its development. The abolishment of hair care products consumption tax in 2006 was an opportunity for Unilever to promote consumption and make the price more elastic. Economic forces
A good way to measure the market potential for a product is to look at a country’s economic health. Gross Domestic Product (GDP) is the most commonly used tool to measure whether a country’s economy is healthy. In China, the total GDP was $7.04 trillion in 2008(CIA World Factbook, 2008). Moreover, Chinese economy is increasing rapidly within 5 years, GDP growth rate was 9.5 percent each year. There is no doubt that Chinese people’s spending power has already considerably improved. Ecological environmental forces
Unilever launched activity called “blue hills and green