Promoting olive oil in China presentation

Promoting Olive Oil

in China An Integrated Marketing Communication Plan

By Sofia Tsempera

Part 1Formative Research

Study of China’s Internal and External Environment

• Geography• Culture• economy• GDP• consuming habits

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General Information

about People’s Republic of

China

Geography

• Counting 1,393,783,836 residences.

• 9.596.961 square kilometers.

• The largest country in East Asia and the 4th largest in the world after Russia, Canada, and the U.S.

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China is administrative divided and controls more than 22 provinces. Moreover, China owns 5 autonomous regions, each one of which has a special minority group that defines it. Also, it is administratively divided in 4 municipal areas and two regions with a special administrative status.

Economy In 2014 US economy was

$17.4tr and the size of China’s economy was $17.6tr, placing China on the 1st place

of world’s strongest economies.

• China is now considered as a market leader as far imports, exports and industry is concerned.

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Source: Giles, C. (2014). Retrieved from www.ftalphaville.ft.com

GDP

China has the highest GDP growth rate worldwide and it shows to keep this rate for the years to come. The national economy remained stable for the year 2014. Studying preliminary accounting GDP of 2014 was 63,646.3 billion Yuan, 7, 4% over 2103. The value added of the primary industry accounted for 9, 2% of the GDP (China's Economic Growth Rates, 2010-2014: Charts, 2015).

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Population’s Qualitative

Characteristics

Urban / Rural Population

Almost half of China’s population live in urban areas and it is expected that this number will

keep rising the next decades.

• Near to 70% of Chinese will live in urban cities until 2035.

• Most of them are gathered to the east coastal part of the country.

• There more than 90 cities in China with population of over 1,000,000 residences Sofia

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Income

¥There is a general tendency coastal cities either urban or rural to rank higher in terms of income compared to the cities inland.

¥Urbanized cities on the east coast of China are the wealthiest and their residences are those with the highest income.

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The Rising Upper-Middle

& Middle Class

• Urbanization of China is the main reason of the rising of middle class.

• In 2012 the number of middle class households reached the percentage of 68%.

• Today, urban, upper-middle and middle class households represent 52% of the total population of China.

• It is likely that until 2022 their share will be raised to 63% and 170 million residences of urban areas.

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Household Consumption Growth Rate Middle class is growing; incomes are getting higher so eventually the

percentage for household consumption is growing as well.

• Upper middle class is willing to buy foreign branded food and beverage compared to other city residents.

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Qualitative Characteristics of Chinese Consumers

• New generation in China (ages 18 to 38), are more educated than previous generations.

• 34% of upper middle class have one academic degree or more and 26% can speak and understand English (Orr, 2014).

• Chinese consumers, are willing to pay more for “healthy” quality products.

• Health awareness in China has become viral.

• Health-driven trend will continue to be a key highlight in the Chinese food market for 2015.

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Business Ethics Codes of Professional Behavior According to Chinese Culture

When doing business in China stick to these guidelines: • Be always on time and never delay. • Respect hierarchy and titles. Use them properly. • Avoid hyper, exaggeration and intense eye contact.• Be humble and polite.• Control over emotional reactions.• Do not criticize (not even yourself).

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Chinese Market

Approach

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• Trend of health awareness. • Attracted by what we call

“the wrapping paper”.• Consider a high price of a

product as an indicator of quality. • Pollution challenge.• Prefer imported goods

especially when it comes to food and beverage.

PART 2Situation Analysis

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“”

Those six years of recession has been a wakeup call for Greek businesses and now they are

looking overseas especially to China, sending big delegations to Beijing and welcoming major

Chinese investments.Jane Lanhee Lee, 2014, Reuters Business for New York

Times

Many great Greek olive oil producers who cooperate with China, mention to the reporter that a very big percentage of the Greek olive oil production has been sold, for decades, to Spanish and Italians as raw material and know they realize they can export the final, standardized product on their own, as Greek olive oil is high quality.

Situation Analysis

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Greek Olive Oil Market

• Third biggest olive oil producer country worldwide.

• Production of 0,3 t., contributing the 0,4% (€740 million) of Greece’s GDP annually.

• Only 27% of the produced olive oil gets to be standardized.

• The rest of the production is sold in bulk form mainly to Italy for re-export.

• Comparative advantages traditional olive varieties, low input, and quality production.

Situation Analysis

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Source: Sectoral Report of the National Bank of Greece, 2015.

Olive Oil Imports in China

• Chinese look for natural, quality products and olive oil is one them because it is believed to be the healthiest of all cooking oils, so imports of olive oil grow year by year.

• Chinese consumers seem to be thrilled by Greek olive oil.

• Greek virgin olive oil is the first choice of gourmet lovers.

• Greek olive oil stands out between other olive oils because of its quality.

Situation Analysis

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“In 2013, the Chinese spent $184 million on imported olive oil, 9.3 percent more than in 2012, and a huge leap from just $1 million a decade earlier”

Sophie Song, 2014, International Business Times

PART 2The Company

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“MAdis Olio”The Company

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MADis Olio is a startup, wholesale and exporting olive oil company.

Founded on the 28th of February in 2014 by Penelope Kolokotronis Madis the CEO of the company.

It is headquartered at Filiatra, a province of Messinia region of Greece.

“MAdis Olio”

Company’s

Statement New, visionary and inspired wholesale

and exporting company of extra virgin olive oil of excellent quality.

After strained research, the appropriate and most capable partners to implement

company’s objectives, were found.The company attaches great importance to excellent quality of the raw material that

standardizes in order to meet its high standards and the final product goes a step further. Quality, origin, and premium design

are the key factors that make MADis Olio extra virgin olive oil an excellent example of

Greece’s high standard products. MADis Olio is more than a cooking oil. It is the very best piece of every Mediterranean table and

an excellent gift of Greece’s magnitude.

The Company

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“MAdis Olio”

All products, except the 750ml bottle, come in a premium packaging parted of a rectangular black case, a booklet of useful information about the product and its history and origins and finally a black velvet pouches with red silk rope that the bottles will be placed in.

The Brand Signature Product

The standard bottle of extra virgin olive oil of 200ml, bottle is clean-cut designed, square bottle covered by screen printed label of a silver – green color that leaves uncovered the 1/3 of the bottle so it shows the pure gold color of the olive oil.

New Launched Brand

The Company“MAdis Olio”

• Two new products that will target international markets by brand name “Penelope’s”.

• The premium square bottle of 150ml extra virgin olive oil, suitable for gift or souvenir.

• The tall ceramic white bottle of 750ml virgin olive oil, suitable for household use, hoteliers and restaurants.

Madis Olio

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S.W.O.T Analysis

The Company“MAdis Olio”

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PART 2Benchmarking

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Greek Brands Competition

The brands that have entered the Chinese market are: • Ousia by Terra

Creta• IONIA by Cretland• Anthos• Liostama

• Apokoronas• Cretan Prince• Sitia • Altis• Argolis• Iliada• Minerva

Foreign Brands Competition • 88 pc of China’s imports in 2013/14

came from EU countries.• Spain was the lead exporter (61 pc of

total), with Italy (23 pc) and Greece (4 pc) coming up behind.

• The remaining 12 pc was imported from Tunisia (4 pc), Turkey (3 pc), Morocco (2 pc) and Australia (2 pc), leaving 1 pc for all the other countries

Benchmarking

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PART 2Goal & Objectives

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Goal & Objective

s

Objective• Establish brand awareness in China.• Generate awareness about the superiority

of the product and its characteristics.• Underline product’s identity (the fact that

it is a genuine Greek product, hundred percent natural and top quality).

• Have an intense presence on every online media tool (social media, web etc.) in a daily bases.

• Interfere to a tourist market.

• Succeed the specific number of sales that is set as the minimum (First six months the target is to sale 1 palette of the 150ml bottle and another one of the 750ml bottle palette).

GoalEnter the Chinese market,

introduce its product to Chinese consumers and take a

share of olive oil market in China, overshadowing

competitive brands, either Greek or not.

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PART 2 Stakeholders

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Stakeholders Customers/Producers/Enablers/Limiters

SecondaryReal consumers Virtual consumers

PrimaryWholesalers

Delicatessen shops

Websites

Touristic/gift shops

Exhibition

sHO.RE.CA. Facilities

CustomersPrimary Secondary

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Producers

SuppliersEmployees

of the company

The agents and

distributors

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Enablers

Exhibitions and food festivals

The local media

The social media

Chinese that have visited Greece as tourists

Opinion leaders like

Food specialist

s, nutritionists, web

sites about the olive oil market

Associations

Tourist guides

The governmental yielding of

both the side

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• Competitors (Greek or other)

• Unstable economic environment

Limiters

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PART 2Target Market

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Target Market

Target market will be the northeast coastal

provinces and urban cities (because of their

qualitative characteristics).

Including the capital of China and Chongqing, all

provinces that have shipping ports and are economically evolving.

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BeijingShanghaiGuangzho

uShenzhenTianjin

GuangxiLiaoningShandongHong KongChongqing

PART 2Target Audience

Wholesale / End Consumers

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Target audience of both categories is the use of e-commerce platforms,

social media and the web in general. Our target audience is very

keen in using smartphones, tablets, notebooks and any other form of

technology and is very acquainted to electronic purchases.

Target Audience

Target audience is divided into two categories. The first category

is wholesale meaning agents, restaurants, hotels, gift shops,

delicatessen shops, shop in shop and a small number of food malls.

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The second category of the target audience are the end-

consumers, direct or indirect. The term “end-consumer” refers to those who either buy a product themselves (direct end

consumers) or those who use, try, taste a product as

customers of a business, for example as guests of hotel or

customers of a restaurant (indirect consumers).

Target Audience

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PART 2Strategic Intent

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Strategic Intent An Integrated Marketing

Communication Strategic Plan, based upon marketing and

communication tools which include participation in exhibitions

and events, emails, phone calls, face-to-face meetings as well as

online and printed media.

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The two main pillars of the plan will be: I. Interpersonal Relationships II. Online Media

PART 2Message

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Message

Emotional Appeal• Emotional appeal approach will

be used in terms of cultural and historical factors of the product.

• Chinese respect and admire cultures as important and old as theirs. This can be the advantage of our brand when it comes to competition.

Rational Appeal • Ration appeal approach

will be used to underline the superiority of the brand in terms of its quality, origin, uniqueness and the fact that is a natural product with high nutrition value.

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Message

Storytelling & Slogan

Message

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Slogan:Penelope’s Liquid Gold…

Drops of Divinity!

Storytelling: “Penelope…

She is the queen of Ithaca, beautiful, shy, loyal… she remained kept inside for a long time but now she’s out, travelling all around the world… She carries along all the beauty, the flavors, the sense, the

divine touch of Gods… And everyone wants a taste of her…!

Taste the myth!”

PART 2Tactics

Communication / Promotional Marketing

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Preparation

• A set of communication and marketing tactics will be used in order to meet company’s objectives.

• Before implementing our tactics, marketing communication tools must be prepared.

• Company profile, Sales letters, Product catalogue, Social media accounts are those tools we need to take care of before starting the implementation of the plan.

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Tactics

Communication TacticsWebsite

A common corporate website may not be suitable for our target market.

Rich in content and color but at the same time very specific and easy on the eye.

Include all information about the company identity and the product’s quality and superiority.

Chinese version apart from the Greek and the English one.

EmailsEmails will be used as the medium to

present and introduce the company as well as the brand.

Emails will be also the tool to keep our partners update and the medium to exchange information throughout the whole period of our cooperation.

In times, emails may be followed by phone calls or newsletters.

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Communication TacticsParticipating in

ExhibitionsTo establish the first contact

with new customers, agents and distributors and to maintain brand awareness in the market, it is essential to participate in exhibitions regularly but strategically.

Phone calls Ensure that the email has been

delivered and read. Second, in order to locate the correct

person to negotiate or close a deal. Start building interpersonal

relationships that as we have mentioned earlier it is essential if you want to do business in China.

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Communication Tactics Face-to-Face

Meetings Move the relationship forward

and probably the key to close a deal.

Exceptional role to Chinese’s culture and habits and they can take place either at the workplace but even by having launch or diner.

Sponsoring Governmental Programs about the

Bilateral Relationship of Greece and China

Sponsor online and offline seminars about Greek tourism and Greek products that the Tourism Organization of China is about to run in 2015.

Aware of the brand, because as a sponsor it will have physical or virtual presence and be notified.

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Promotional Marketing Tactics

Printed Media One-page listing in a set of magazines

which will be carefully selected so that they meet our objectives.

Health & Wellness.Chinese cooking magazines that

include Mediterranean cooking and products.

Men’s Health, Women’s Health China, Health No1 which is a genuine Chinese magazine, Chinese edition of Food &Wine, Chinese edition of the Lonely Planet Traveller.

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Promotional Marketing TacticsOnline Media

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The penetration of the Internet in China has reached extreme numbers making China rank first in terms of active internet users.

China has 642 million internet users, outnumbering the entire U.S. population two to one.

From who, 80% (557 million) use smartphones and tablets to connect.

“The online shopping headcount is expected to go to 380 million from 145 million today. Even China’s smaller cities are leaving flip top phones and buying smart phones”. K. Rapoza reports for Forbes.

“Massive growth of online media usage in China”


Penetrating Social Media

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Social media as integral part of their lives, the use of social media.

Because of strict Chinese government rules, world’s biggest online services like Google Inc., Facebook Inc. and Tweeter Inc. have been severely disrupted or simply blocked.

Nevertheless, social media must be used for our marketing tactics, so consequently we have to “use” those that Chinese do.


Penetrating Social Media

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Social Media Platforms to be used:1. WeChat.com, one of the most popular

social media platform in China.2. Qyer.com, this site’s turf is e-tourism,

suggestions and information gathering for Chinese tourists to be more accurate.

3. QQ.com, online Messaging Platform – adopted by 829 million users, involving features such as text messages, video, voice chat and files sending Stuffs.


Purchasing via E-commerce Platforms

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• E-commerce platforms at first were used mostly among wholesalers, but the last 2 years have been the main purchasing channel also for retail consumers (end-consumers).

• Chinese use them more than regularly.


Purchasing via E-commerce Platforms

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E-commerce Platforms to be used:1. Alibaba.com, king of E-

commerce in China Alibaba Group has grown into a global leader in online and mobile commerce.

2. Taobao.com, the invite-only platform features more than 70,000 international and domestic brands from more than 50,000 merchants.

3. VipShop.com, one of the most popular in China and also “women friendly”!!

Example of e-commerce platform product placement

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PART 2Implementation Guide

& Budget

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July August September October November December January February

Preparation× × × × × ×

Exhibitions× ×

× × × × ×

Emails× ×

Phone Calls× × ×

Face-to-face Meetings × × ×

Sponsoring× × × ×

Social Media× ×

E-commerce × ×

Printed Media × × × ×

Website

ACTIVE NOT ACTIVE

Budget EURO Budget YUAN

Preparation € 0 ¥0

Exhibitions € 8.000 ¥55,120

Emails € 0 ¥0

Phone Calls € 0 ¥0

Face-to-face Meetings

€ 2.000 ¥13,780

Sponsoring € 4.000 ¥27,560

Social Media € 0 ¥0

E-commerce € 0 ¥0

Printed Media € 5.500 ¥37,900

Website € 2.000 ¥13,780

TOTAL € 21.000 ¥148,140

Implementation Guide

Budget

PART 2Evaluation

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Evaluation 1. Conduct several meetings with our Chinese

associates and discuss the plan’s progress as long as identify new needs.

2. Be in touch with our target audience and ask for their opinion about the brand. by posting brief questionnaires, about the brand and its identity, on social media and other online networks that we use.

3. Collect and analyze the quantitative data from our online tools. We can count followers, friend requests (accepted or requested), likes, shares, website quests and received questions.

4. Number of contacts that we will make after participating to the exhibitions.

5. Analyzing product sales data can reveal if the communication plan was successful or not.

Evaluating the communication plan is essential, both during

the implementation and after is conducted. Evaluating the plan

during the implementation helps us to identify possible flows and

make any necessary changes and adjustments as well as

keeping truck and adopting new information and market needs.

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An Integrated Marketing Communication Plan By Sofia Tsempera for Madis Olio

“Promoting Olive Oil in China”