Global marketing strategy

Nowadays, a lot of international companies are trying to expand their business to foreign countries. Some these kinds of companies are really successful in other countries because of special global marketing strategies in different culture environments while some companies are totally failed in their new markets. I want to discuss two improper marketing strategies of two companies for their China market.

 As we know, IKEA is one of the largest furniture manufactures in the world, their products are really famous in North America because of their fancy design, low price and convenient. Compare to other same level furniture companies, IKEA’s price of their products are lower than the average level. It is the result of their ready- to – assemble furniture and charged shipping. This model is successful in North American because North America people prefer to pay less and enjoy the process of furniture assembling. However, in China, in customers’ opinion, they never think they should assemble and ship their furniture after they pay for it. Thus, IKEA failed in China because they use the same model they used in North America.

 “Eat fresh” —- the core idea of Subway which also failed in China. In Chinese tradition, the vegetables must cooked in boiling water before eating. They think fresh vegetables are dirty whatever you wash it how many times. Therefore, “eat fresh” did not fit the habits of Chinese and failed.

 In my opinion, culture and marketing research is really important for companies to expand their business to a foreign country. Because customers’ demand are also different countries and these kinds of companies should always follow and understand it

iphone 5s VS iphone 5c

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CUPERTINO, California—September 10, 2013—Apple® announced new generator smartphone—iphone5s and iphone5c which expected as “cheap iphone” by a lot of people. Compared to iphone5, iphone5s equipped an all-new A7 chip which making iPhone 5s the world’s first smartphone with 64-bit desktop-class chip, an all-new 8 megapixel iSight® camera and an innovative way to simply and securely unlock your phone with just the touch of a finger. For iphone5c, it seems like a iphone5 covered with new designed plastic case.

Since iphone5c expected as ‘cheap iphone’, most of the customers are not satisfied with the price of iphone5c, which is about 100 dollars less than iphone5s. From the data before Oct. 15 provided by CIRP (Consumer Intelligence Research Partners), we can find the consumption of iphone5s about 3 times as the consumption of iphone5c. A lot of customers prefer to pay $100 more to get a real new generator iphone but not a expensive “cheap iphone”.

Did Apple set an improper price for iphone5c? No, I think this is a part of Apple’s marketing strategy. If Apple set a really low price for iphone5c, they might lose huge amount of iphone5s potential customers who hesitate between iphone5s and iphone5c. So the small gap between the price of iphone5s and iphone5c can push more loyal customers to purchase iphone5s. Then, customers who can make a more reasonable (there are still a lot of people are waiting for a defiantly new and different iphone, these kind of people think iphone5s is not a really new iphone) decision and want to pay less will find the value of iphone5c. In my opinion, the consumption of iphone5c will beyond the consumption in the future.