Footprint Expansion

Footprint Expansion - Footprint Expansion Strategy Click to...

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Name of Event-Date [File Name/Location of file file] Page 1 R.S. McEachern Click to edit Master subtitle style Footprint Expansion Strategy Ron McEachern Hong Kong, 2009
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Name of Event-Date [File Name/Location of file file] Page 2 R.S. McEachern Building A Powerful Consumer Brand In China China Brand Building Lays Case Practical Steps To A Successful China Soy And Laguna Examples China Brand Launch 1. Defining Competitive Advantage 2. Managing The Innovation Process 3. Leveraging Insights 4. Compelling Branding 5. Impactful Creative 6. Effective Media Selection 7. Reinforcing Image with Packaging 8. Effective Customer Management 9. Pricing and Promotion Plans 10. Profitable Entry Strategy 11. KPI’s and Performance Tracking 12. Managing HQ Expectations China Cont ext
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Name of Event-Date [File Name/Location of file file] Page 3 R.S. McEachern Sustainable Expansion Requires A Clear Footprint Strategy China is too vast to just “ship and hope” Unable to control shelf life Customer relationships not transparent or sustainable Undermines pricing architecture across regions, channels and customers Forecasting difficult straining supply chain Critical to sequence “Go Wide” with “Go Deep” Both dimensions require resource planning…manpower, sourcing and P&L Regional competition has different strengths and weaknesses The devil is in the detail…. .shortcuts very costly Critical to control senior management expectations….hard lifting Footprint Expansion Strategy
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Name of Event-Date [File Name/Location of file file] Page 4 R.S. McEachern Urbanization is expected to reach 50% or 683 million people by 2013 China’s Projected Share Contribution of Urban vs. Rural Population (mil) 2 6 % 2 8 % 3 0 % 3 5 % 3 9 % 4 6 % 4 8 % 4 5 % 4 2 % 3 9 % 4 3 % 7 4 % 7 0 % 6 5 % 6 1 % 5 7 % 5 4 % 5 2 % 5 5 % 5 8 % 6 1 % 7 2 % 5 1 % 4 9 % Population (mil) 0 5,000 10,000 15,000 20,000 25,000 30,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 China’s Projected Disposable Income/Capita of Urban Households vs. Rural Households (in RMB) Household Income/ Capita (in RMB) 683 million people 612 million people Rural Urban Widening income gap: the fruit of economic expansion to be largely enjoyed by urban dwellers Richer Urban Populations Are Eclipsing Poorer Rural Areas Footprint Expansion Strategy
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Name of Event-Date [File Name/Location of file file] Page 5 R.S. McEachern GDP/Cap. $1,400 $800<GDP/Cap = <$1,400 GDP/Cap = <$800 Urban income 3 times that of rural - urban/capital financial assets are 6.3 times rural ones - rapid urbanization will increase urban population to 849 million by 2020, 59% of total, from 39% currently Top six provinces represent over half of the market and will continue the dominance with a 15% CAGR Gansu Yunnan Shandong Fujian Zhejiang Jiangsu Liangning Jilin Heilongjiang Shanxi Henan Hubei Shaanxi Jiangxi Guangdong Sichuan Tianjin Shanghai Beijing Xinjiang Xizang Qinghai Inner Mongalia Ningxia Guizhou Guangxi Hainan Hunan Anhui Hebei Economy Fuelled By Urbanization And Coastal Provinces Footprint Expansion Strategy
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Name of Event-Date [File Name/Location of file file] Page 6 R.S. McEachern
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Footprint Expansion - Footprint Expansion Strategy Click to...

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