Assessment 1
Here are the tasks which you have to perform in order to analyse the consumer
behaviour and develop an overall consumer profile for selling INFANT Formula
&Baby Food in the Chinese market:
Task 1
Carry out a segmentation of the Target Chinese market which would be ideal for
selling your products to. Define these market segments on the following
components:
Demographics: Age, income, occupation, geographic locations, etc
Psychographics: Interests, Opinions, Activities/hobbies, Habits, Lifestyle,
Perceptions/attitudes which will affect the sale of your products in the
Chinese market
Usage based segmentation: How frequently is baby food/formula used
by consumers in China, at what age group do costumers buy bay food in
China, is there any particular season when this product is used, etc.
(Note: Your answer should be specific to the products which you aim to
sell in the Chinese market. Also, you need to use the right currency, city
names, etc.)
Task 2
In this task, you need to identify various aspects of culture, of the target market
in China, which will affect the sales of your product in China. These cultural
factors should include the following:
Social culture, social class, family groups, decision makers, influencers,
the actual purchasers, etc.
Beliefs, customs & practices related to bringing up babies, type of food
given to babies, nutritional beliefs, etc.
Social standards of acceptable behavior and what are the cultural
motivations which would lead the Chinese to buy your product.
Values and attitudes towards foreign brands and products
Chinese ideology system related to bringing up babies
Religious concerns
Fiscal behaviour ie
o Attitude towards money
o Spending of money
o Ordering goods
o Attitudes towards credit cards
o Priority of consumables on which money is spend
Other cultural consideration like:
o Colour
o Use of symbols
o Choosing the name of your product / brand which is culturally
appropriate
o Form and type of packaging, etc
Task 3
The One-Child policy was introduced in 1978, in China. It initially applied to
first-born children in the year of 1979. It was created by the Chinese
government to alleviate social, economic and environmental problems in China.
This policy officially restricts married, urban couples to having only one child,
while allowing exemptions for several cases, including rural couples, ethnic
minorities, and parents without any siblings themselves. Families violating the
policy are required to pay monetary penalties and might be denied bonuses at
their workplace.
What would be the affect of this policy on the sales of your company’s
products in China? Describe your answer in about 600 words in one
page.
Task 4
Now that you have identified the target market characteristics and their
preferences – recommend the ideal features of your company’s product which
will be acceptable by the Chinese target customers. Give reasons for each of
your recommendations.
Your answers should include the following:
Brand name (Is creation of a different brand name or a different logo a
good idea? What will be your recommendation for this? Suggest a few
brand names, which will be well accepted by Chinese mums)
Ease of use
Quality
Flavours – recommend popular Chinese flavours
Affordability
Packaging style, information labels, instructions, etc
Task 5
In this task you need to study / research the market scenario in China and
investigate past trends, products successes and failures and reasons for the
same. The research material in annexure is extremely crucial for you to
complete this task.
Your answer needs to cover the following:
o What is the current market situation for baby food and infant
formula
o Who are the main players / companies and their market share
o Who are the companies that are planning to aggressively sell in
the Chinese market?
o Do costumers prefer local or international brands and why?
o Do costumers buy baby food online?
What are the main factors which will help business operations for your
company to be successful in China? Your answer needs to be specific to
the baby food industry.
(Hint: Research sites which advise you on doing business in China)
What has been the past history of Chinese costumers related to Infant
formula / baby food? How will this history affect the sales of your
products?
Research and name 3 international companies which failed and 3
international companies which succeeded in selling their products /
services in China. Discuss the reasons for the same as well. Examples
should be recent and should contain at least one example each, relevant
to the baby food industry in China.
What are the main unwritten principles of doing business in China? Your
answer should be detailed and relevant to the baby food industry.
(Your answers should include factors like decision making in China,
business practices, local partners etc)
