|dc.description.abstract||China’’s average growth rate from 2001 to 2005 exceeded 10%. The speed of its economic growth has drawn world-wide attention. Since opening up to economic reform, China’s plentiful labor force and enormous internal market demand has make it the most attractive area in the region for Taiwan overseas merchant investment. In the wake of this economic maturity and the speed of the increase in national income, parents are becoming more willing to purchase more specialized, top quality products for their children. This flourishing has led to much development in the infant products industry in China. In Taiwan, changes in social conduct and lifestyle attitudes, and the decreasing population birthrate, have caused the infant products industry to reach a state of saturation.
In this study we discuss this issue. We use correlated data and a case study of one company to discuss entry into the Chinese market and sales tactics employed for coping with that local market. From the secondary data collected and interviews with high-level Company A management, we try to understand the step-by-step entry the competitive infant product market-place. There are unprecedented competitive challenges to be faced by Taiwan companies in the infant products market, but the potential of China’s market is vast. Company A hopes to exercise complete autonomy, and with the expansion of the parent company, funded by single venture capital, to establish step-by-by step a basic market presence. It is necessary to understand both the domestic and foreign situations and after exploring both good and bad, advantages and disadvantages, determine Company A’’s sales objectives. Then, based on the successful Taiwan experience, they formulate a medium and long-range sales strategy for development in China. Their 4P sales strategy includes energetic product promotion and brand name recognition to enlarge market share: 1. product strategy--Company A seeks to expand its product line with the aim of not only satisfying customer demands but also strengthening brand name recognition and market share; 2. price determination strategy—since infant products are low price susceptibility products, prices are determined on the basis of customer perceived value; 3. sales promotion tactics—since infant products belong to the benefit-based market, suitable types of media must be utilized for product promotion and inspection date made available to reach the anticipated effect; 4. distribution strategy—Company A’s retail route goes through infant product chain stores, retail outlet sales, direct sales to consumers, as well as wholesale sales, which allow the buyer to save on commission fees. The sales network is built up meticulously layer-by-layer until goods reach the hands of the consumers.
It is hoped that the valuable practical experience gained from this case study can act as a resource to be shared with the relevant professionals, businessmen and academics in the industry. Whether in terms of market, marketing strategy, product management, or government strategy, all research recommendations are meant to offer meaningful, practical and effective assistance to business professional working in the Chinese market.||en_US|