2. 1. Executive Summary
2. Business Description
3. Business Environment Analysis
3.1. Industry Analysis
3.2. Competitive Analysis
3.3. Market Analysis
4. Marketing Plan
5. Operations Plan
6. Financial Plan
7. Conclusion 2
18/10/2012
3. Export of the original Haribo “Goldbears” to Greater
China in a market-adapted form
• Global branding, local marketing
Premium product, targeting the growing Chinese upper
and middle class and its demand for foreign high quality
products
USP: German quality, western brand, premium product,
high quality ingredients, affordability, minor product
adaptations to Chinese preferences
Aggressive in-store and contemporary media advertising
Partnerships & cross-selling with established strong
western and local food chains
Highly profitable business in a growing industry, break-
even is expected to be in December of 2016
18/10/2012 3
4. Haribo will export the original “Goldbears” to
China
Gummy bears are pertaining to the confectionery
industry and are already highly profitable in 22
countries around the world
The businesses headquarter is in Germany
A production plant will be rented in Suzhou
serving the Chinese market
Retail and expansion will start in metropolises
and then permeate throughout the interior of the
country
The German origin will serve as a seal of quality
4
5. Substitutes:
>chocolate
>gum
>savorysnacks
>freshfruit
Buyers:
>lowswitchingcosts > young girls & women, kids
> wholesalers & retailers
> supermarkets & kiosks
>franchisees
Chinese Confectionery
Industry >Tendencetowardshigherc
ustomerloyalty
Moderate Rivalry >pricesensitivity
Suppliers:
>exclusivedealswithselect
edraw material suppliers
>commoditymarket
Barriers to enter/exit:
> capital assets (building, machinery etc.)
> venture capital
> economies of scale
>technologicaladvancement to avoidimitation
>high barriers to enter/exit
18/10/2012 5
7. • German qualitystandard • Limited
• Establishedworldwidebrand- marketresearchinformationon
awareness the Chinese market
• Tradition, int. experience • No expertisein the Chinese
market
SWOT
• Steady market growth • Quick imitation
• Rising standards of living and • Many market entrances with
disposable incomes domestic manufacturing
• Orientation towards quality and • Local producers are acquiring
foreign confectionery Japanese and Korean
• Chinese producers slow to introduce technology
new candy products • Market distinctively price-driven
• Candy is capturing the younger • Sales are seasonal, strongest in
Chinese consumers as a trend and as winter
a new taste • Traditional reluctance to product
• Innovative packaging and novelty
candy are scarce and
underdeveloped
• Rural areas are under-supplied
18/10/2012 7
9. Tobecome a strong
competitor in the Chinese
confectioneryindustry
To become the most popular gift item of
choice in China
To become a childhood favorite for girls
& boys
To develop a long-term strategy which
could differentiate our product
18/10/2012 9
10. Original GummyBearPackage
• Large packages
• Miniaturepackages (family
pack) Goji Berry
Haribo„sbrandidentity will
bemaintained
Adaptionsto Chinese tastes Ginger
• Flavor
• Package
• Slogan Green Tea
Real fruitjuice, all
naturalingredients
Lucky Panda
German qualitystandards
18/10/2012 10
12. Advertising
o Billboards, posters
o Airplanes
o Subway (Shanghai Metro)
o TV : CCTV
o In store promotions
Install local internet platform (389
million users)
18/10/2012 12
13. Contracts with already established
chains
o McDonalds
o Cold stone
o Sushi Chains (dessert sushi)
18/10/2012 13
14. Competitor and market oriented
Low price compared to Germany
4 Chinese RMB per large
package (0.4745€)
6 Chinese RMB per
family package
18/10/2012 14
15. Establish contracts with :
1) International supermarket chains :
2) Convenience stores: Quick of
LianHua, Alldays&Kedi of NGS
3) Specialty stores : GOME, Suning
18/10/2012 15
16. Opening of a flagship store in Shanghai in
2014
Place : The Nanjing Road,
The busiest
luxuriant commercial
strip in Shanghai
18/10/2012 16
20. Aug 12 Sep 12 Oct12 Nov 12 Dec12 Jan 13
Week 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th 14th 15th 16th 17th 18st 19th 20th 21st 22nd
Rentproduction plant
Hire a representative
Prepare legal documents
Present 5 year plan
Register business
Renovate Plant
Buid business relationships
Register trademark
Hire staff
Staff training
Website desgin
Develop marketing campaign
Get approval for adds
Meet with representatives
Launch marketing campaign
Hire promotion staff
Start promotion
18/10/2012 20
Final launch of product
Mention minor product adjustments as well (part of local marketing e.g. coke)
Demand for these tasty delicacies, once considered too foreign a taste for the Chinese palate, has been steadily growing. Esp. since living standards have been rising.Better retail and distribution facilities. Whiletraditionally sales restricted to the winter months, and many foreign brands are now sold in shops all year round. New year has always been zenith of candy salesWe realized China's confectionery market is rapidly transforming to our benefit, creating various opportunities for foreign exporters.Candy occupies a special place in Chinese culture–it is a gift item of choice. traditionally Given to family or guests at weddings symbolizing happiness “happy candy” has therefore created a niche sub-sector in the confectionery ind. in China
By 2011, the Chinese confectionery industry has grown to almost 8 billion dollarsChina has become the world’s second-largest confectionery producer by volume after the United States. There are more than 2,000 candy manufacturers in mainland China. 10% of the market in 2016!!!
O:-Chinese market is growing at a rate of 12 to 15 %.
gums, candy, crackers and chocolateWant Want, the largest rice cake and flavored drinks maker in Taiwan. It engages in the manufacturing and trading of snack foods and beverages and operates over 100 manufacturing plants in Mainland China where it employs over 60,000 people. Mars Foods have two chocolate factories in China. These two factories produce brands including SNICKERS®, M&M'S®, DOVE® and CRISPY®. Mars sells their chocolate products through hundreds of distributors and a large number of National Key Accounts.Lotte Confectionery is a South Korean company which manufactures and sells more than 200 products to more than 70 countries. It is the No.3 chewing gum manufacturer in the world. Since 1993, Wrigley's has grown into the largest confectionery company in China, and its products are among the widest distributed consumer goods in the country.
All our main competitors, who are already selling in China, are producing in China with their own production plants. Therefore and also in order to save shipping costs we decided to also rent one. Our plant will be located in Suzhou which is located in the Yangtze River Delta, one of the most industrial regions in China. The infrastructure there is very well established which will facilitate the transportation to our retail stores. We first decided to start selling our products in major cities in the coastal areas, such as Shanghai, Beijing, Dalian, Qingdao, and Hongkong. Within two years we then want to expand the distribution of our product throughout all of China. In this graph we have illustrated this expansion strategy until 2015 and finally until 2017
Next I want to talk about our operational plan and the steps we have to take until the final launch of our product.
First of all we’ll have to find the right plant based on our transportation and logistics needs. We’ll then hire a representative who will help us translate all the necessary documents, prepare our business registration and can speak to the local officials for us. Next we’ll prepare a detailed 5 year plan. This plan is crucial because we can only register our business after the plan has been approved by the Chinese government. After successfully registering our business we will then start to renovate our plant and start buying equipment. Because relationships are crucial to doing business in China successfully we will also travel to china and try to build as manny connections as possible by visiting tradeshows and fairs and talking to local business owners. Our next step will be to hire and start training our staff members. Besides from some employees in key positions we will try to fill all available positions will local Chinese. The next step will be the crucial phase for our product launch. We will design a marketing campaign that is especially adapted to the needs and preferences of the Chinese customers. After the Chinese governbemt has approved this campaign we will meet with representatives from already established chains like McDonalds to further discuss cooperation with them. We will then finally launch our marketing campaign and at the same time start our promotion campaign.In January 2013 we will then finally launch our product. We choose January because it is right before the Chinese New Year. In China our Gummibears are known as a popular gift for special occasions so this will boost our initial sales even more.
