Chinese Personal Care Brand Herborist Entry into Russia Market - Essay Example

Chinese Personal Care Brand Herborist Entry into Russia Market Russia is among the most developed countries in the contemporaryenvironment. The country is rated among the great 8 countries that have the top growing economies in the 21st century. Market entry is one of the most important aspects to consider with regard to sales and the marketing of commodities. China has a reputation for the production of commodities vital to the livelihood of people in different areas. Entering the Russian market is bound to benefit Herborist, which is a Chinese brand from the fact that Russia has very welcoming people that do not discriminate against international commodities. Going through the various factors determining the success of market entry by Herborist is vital in understanding the general growth of the commodity in the new market. The country has had numerous strides in terms of international relations thus; it is a suitable target for the marketing of Herborist. In the successful marketing of any product, it is important to analyze various aspects of the particular market. Analyzing Russia’s market is imperative and the manner through which this is done is by looking at the P.E.S.T situation of the country alongside the seven P’s of marketing. The political environment is reputable for the marketing of the product. This is from the fact that with the democracy, Russia’s government does not inhibit the citizens from purchasing products at will. Moreover, the democracy also allows China, the producer of the commodity, to venture into the Russian market easily and consequently have increased sales of Herborist (Fleisher, 2008, 169). The verity that the country has a well laid out judicial system is also important for the marketing of Herborist. This is from the fact that there is control on the decisions that powerful politicians make. An example is a politician who may talk ill of the commodity and tell people not to purchase it. Such cases are few - the concept of freedom and independence is incorporated in the Russian market. One factor that may come as a disadvantage in the marketing of Herborist is with regard to the tax tariffs that the country has. Lately, Russia has set its tariffs very high in an effort to boost its economy. With the increased tariffs, the country will have reduced imports and – consequently – the goods within the country will increase in sales. With this the standards ought to increase and make the economy of the country boost. The issue of tariffs was induced by the executive arm of the government and has been a major hindrance to the sale of products. This factor is bound to affect the marketing of the product in the country (Henry, 2009, 48). Shifting focus to the economic aspect of the country, Russian economy is rated fifth largest in the world. This has been effective in ensuring that the circulation of products in the country is well above average. Moreover, this means that most citizens in the country are stable thus being in a position to market the product. This brings down the fears that one may have when introducing the commodity into the market. It is also important to understand the fact that country’s economy is not stagnant but rather on the rise from the various measures taken by the government such as increased taxation (Cohen, 2011, 68). This ensures that the populace of the country are always up and busy to ensure that they achieve their goals while living a comfortable life. Introduction of the commodity into the market would work great to ensure that these people are always informed on the changing market trends by using the device. This acts as a positive impact on the sale of the commodity, and so there is the need to introduce it into the Russian market. The transport sector is one other factor to consider with regards to the marketing of Herborist in Russia. Russia’s economy has been stable, and ensuring infrastructure development is a key aspect in the country. Russia has well established roads that generate a huge income for the government. The fact that these roads are in great conditions ensures the sale of Herborist is in huge amounts due to accessibility of even the remote areas in the country. This would mean that the incorporation of Herborist in the Russian market would fetch the company a lot of money from many users that would get to know about it. Russia also has rating as one of the wealthiest countries in the world (Donovon, 2012, 147). This is a positive factor as it ensures the number of people up to purchase the commodity after introduction will be significantly high. Moreover, it is important to recognize the fact that having many successful people is vital as it shows that most of the country is not ignorant and is rather busy doing constructive business. This would consequently ensure the increase in the number of people interested in the commodity. Labor reforms have been carried out in the country over time. These reforms have seen the rate of unemployment in the country decrease steadily. This factor has enabled many people to get employment opportunities and consequently lead a stable life with the ability to purchase the new commodity upon entrance into their market. The product is bound to capture a lot of attention in Russia also from its fair price. The product retails at 500$ which is affordable to an average Russian. The price of the commodity is not actually fixed and can get lowered for several customers depending on the shops (Smith, 2012). Selling the products in a wholesale manner is very efficient. This is from the fact that these people expect the product to have a much cheaper price that is exactly what they get by marketing it in wholesale. Eventually, the retailers will have to lower the price, and consequently, the number of buyers will increase significantly. The clear instructions that come with the commodity make it user friendly and thus the high possibility of many people purchasing it. The fact that it is a new device makes it more reputable as people are always up looking for the newest introductions into the markets. Thus, the marketing of the product should get carried out early enough before another commodity takes the market. Promotion is a major aspect of marketing that should receive a lot of attention (Henry, 2012, 321). This is from the fact that without promotions, people will not understand the use of the commodity. Through promotion, people in Russia will go to various grounds that are meant to display the use of Herbalist. Through these promotion methods, people are bound to ask questions and the various sales personnel should answer. Unlike other easily marketable material, personal care products require the extended efforts of sales people, and a lot of commitment as the target market is supposed to know all about the device so as not to complain about hardness to use later on. It thus is imperative that a lot of dedication goes towards promotion as an aspect of marketing. The place of sale for the commodity is an important factor in an effort to understand the various actions to take. Russia does not have many rules with regards to personal care products; thus, it should be easier to get into their market. Different places have different rules - this makes it difficult for the product to hit their market (Fleisher, 2008, 126). Moreover, Russians are very friendly and welcome advancements in personal products cordially. Another point to consider when talking about the Russians is that they work tirelessly in an effort to attain self-growth. They constantly look for means through which they can achieve a lot using less. This involves the participation in various congresses that seek to discuss innovations in the various sectors (Arnet, 2005, 76). The process of marketing is also very important to incorporate when strategizing a certain country (Blyth, 2009, 143). In Russia, many people are hard-workers and are rarely idle. It is thus important to understand that marketing the commodity through Television advertisements is not a productive manner to carry it. However, using of the printing press is bound to get attention from many people. This is from the fact that almost every office in Russia has a newspaper come in every morning. Going through the paper is the practice of the workers during various breaks, and it can be a clear manner to pass the message. Sponsoring a field event is also very important since many Russians are game fans, and by doing this; the company can capture the attention of many people there across all ages. The physical environment is another factor to understand. Unlike many countries that are war torn, Russia is one peaceful country without many issues. The stability of its systems makes it possible to carry out business. The physical environment does not have any dangers and thus the ability of the marketers to get deeper into the country (Pritts, 2007, 52). Comparing the market strategies for other different locations is imperative because it assists in understanding why Russia is the best market for the commodity. Recent studies show that Russia has had a steady growth with regard to cosmetic products (Okan & Ozlem, 2008, 42). When compared with a country such as Germany, the country is rather ahead and thus the reason it is stated as the favorite country to introduce the product. As compared to Germans, Russians have a deeper urge to learn about new commodities and thus the reason why the country is chosen as the best to market the new commodity (Cohen, 2011, 54). The growth strategy in Russia is a very important aspect to go through when determining the manner through which to market the product and make an even higher income. In recent days, introduction of a commodity in the market is one important and easy step to undertake. Ensuring the thriving of the commodity in the said market is one of the most difficult things to do. One of the growth strategies to undertake is regarding the target market. The fact that the commodity is a cosmetic makes the marketing simpler. The reason for this is that people tend to pay much attention to these commodities given the fact that they are required for the day to day lives (Martin & Hau, 2004, 64). One best way in which to develop and even grow the sales of the commodity is ensuring that the target market is always satisfied with the commodities. The best manner through which this is carried out is by ensuring that the price of the commodities reduces significantly to match the financial position or rather condition of these people. Moreover, the quality of the commodities ought to increase with every production. The importance of this is ensuring that people continue using the commodity and do not rush for substitute goods (Reiss, 2011, 65). Another best manner through which to maintain customers and even gain more of them is by showing corporate responsibility. There is also the fact that giving back to the community is a very positive aspect that can earn the company many new customers. The human resource team for the company ought to ensure that it gives the people in the community job opportunities. This makes the people appreciate the efforts that the company makes and the consequent result of this is the people appreciating the company’s efforts and thus have the urge to remain loyal to the company. Introducing a commodity into the market is one of the toughest aspects to take up when dealing with a commodity. The reason is that convincing people in a particular market to trust in the commodity is a difficult task. However, once the community becomes aware of the positive aspects of the commodity, it becomes rather easy to market it. Introducing the commodity into the market assists Russians become aware of the market situation and has the consequent potential effect of Herborist taking up a leading position with regard to cosmetic products in the area. Bibliography Fleisher, K. 2008. Analysis without Paralysis. New York: Cengage Learning. Henry, A. 2009. Understanding Strategic Management. New York: McGraw Hill Publishers. Gregory, A. 2010. Planning and Managing Public Relation Campaigns. London: Oxford University Press. Jones, R. 2011. Business Coaching- Marketing and the 7 P’s. Retrieved on 25th November from http://coachingcosmos.com/69.html Blyth, J. 2009. Principles & Practice of Marketing. Chicago: Chicago University Press. Donovan, M. 2012. Russian Politics: Aspirations for Change. New York: McGraw Hill Publishers. Cohen, J. 2011. The Growth of the Russian Economy. New York: McMillan Publishers Arnett, D. 2005. Enhancing customer-needs-driven crm strategies: core selling teams,     knowledge management competence, and relationship marketing competence. Journal of      Personal Selling & Sales Management, 25(4), 329-343. Parry, M. E. 2005. Strategic marketing management: A means-end approach. London:    McGraw-Hill. Treace, J. 2012. Core Values. Sales & Service Excellence, 12(1), 1-2. Martin, C., & Hau, L. 2004. Mitigating Change through Improved Confidence. International Journal of Physical Distribution & Logistics Management, 34(5), 388 – 396. Okan, O & Ozlem, E. 2008. Allocating Costs in a Collaborative Procurement Network: Food Science, 42 (2) 146- 165. Paton, R. 2008. General Management: A Guide to Effective Implementation. New York: Cengage Learning. Pritts, Kim. 2007. Ginseng: How to Find, Grow and Use Strategic Management Plans . New York: McGraw Hill Publishers. Reiss, M. 2011. Change Management: A Blended and Balanced Approach. London: Oxford University Press. Read More