ABC Company, a U.S based family business, a mid to high-end water filter manufacturing company has received a number of inquiries from Chinese distributors for their products in recent months. It appears to ABC company that a potential market exists in China. Shall ABC expand into China market or not? If so, what are the best ways to achieve business success?
SinoUS can help ABC make this decision and form the right strategy. SinoUS will break this big strategic management issue into small questions.
- What are the business goals of ABC?
- Will overseas expansion appropriate for ABC at this development stage?
- What is the overall market environment in China for water filter products?
- Shall ABC export to China, and through which channels: direct marketing and sales, or through distribution channels?
- Will an agent or distributor be more appropriate for ABC?
- How does ABC select the best distributor to work with?
- Shall ABC build manufacturing facility in China?
Q 1 and 2 are for clients’ consideration and Sinous’ understanding. Sinous can help ABC with the rest of the questions. The following are some of the steps Sinous take to perform the research
- Talk to major stakeholders of ABC
- Conduct secondary research of Chinese market through online research, collecting data and information from print out government reports and purchased commercial industry specific research reports.
- Conduct primary market research. SinoUS will work out a research plan . SinoUS will call and interview consumers, competitors and distributors for the research. Most of these jobs will be conducted in China.
- SinoUS will also conduct distributor selection research by interviewing main stakeholders of different distributors and visiting their operating facilities.
- As the next step, if ABC in the future wishes to build its own manufacturing facility in China, Sinous will offer suggestions to ABC the best location and develop ABC’s own marketing strategy
Further, SinoUS can advise ABC on government relationship and media relationship.