Localization Strategy" Of Multinational Companies In China

Nowadays more than 400 multinational companies of "Would Fortune 500" have invested in China. The successful foreign companies have high quality products and advanced management .But what's more important thing for them? That is making and using the "Localization Strategy "in China. In fact,when they faced the failure, they also make adjustment or reform resolutely according to "Localization Strategy ". The "Localization Strategy" includes product/brand strategy,price strategy,distribution strategy and pubic relationship strategy etc.It should be significant for Chinese companies who want to comprehend the management spirit of multinationa companies and want to adapt to the international competitive environment after WTO entry of China. There are a good deal of differences between western countries and China in politics,economy,culture and law environment. The right way succeed in China is matching the marketing strategy with the background of China. Many multinational companies in China fund for commonweal to gain the trustment and support by the local government and public. Such as environmental protection ,funding sport,the arts and a range of community activities in China. This build up excellent company image and keep them have a well relationship with government and be given a lot of support by the government.Multinational companies adopt "Localization Strategy" on their products and brands.They mix the local cultures spirit in their "International Brands". They not only extend their traditional brands but also design new products and brands fit to local market.Multinational companies use selection criteria to choose distributors: select your distributor, not distributor select you. Select those distributors not have stable and fixed distributors but those who can help your company develop the market. Build a "win-win" relationship with your distributors.So multinational companies try their best not only to select distributors but also cultivare and training distributors. The price strategy of multinational companies in China is mainly based on: Ascertain target customer;Price should show the teconology and other advantages;Keep high quality image;Use "from expensive to cheap"artifice; Rational and prepared price compitition with other companies. But we know some of those multinational companies have wrong price artifice.It's always because their marketing strategy doesn't match with the product orientation and a too high price must be followed by high risk.Marketing and Publicity strategy of multinational companies is focus on the life style and value conception of Chinese people escpecialy focus on "modern youth"and "modern women"in China. Besides, They mix the western and eastern culture,add Chinese culture element into western ideas.In their preparation period and fist steps in China market, multinational companies make most of public relationship strategy with Chinese government . The goal of this stategy is to communicate with officials of Chinese government face to face then get their supports and comprehension. When multinational companies face business crisis and discomfit in China market PR with government strategy help them live through hardship Period. Extensive news media coverage can also promote the business status of those companies in China."Crisis Management" and "Public Relationship in Crisis Period" become popular in western management. It can verify management level and management efficiency. It's a chance to promote your brand and products if well done . Conversely, wrong action could break the whole business. The "Crisis Management System" is part of the "Company Management System"and it's not only touch on General Manager but also personnel in company. It's a team work. Conversely, we know some companies abortive in the "war"- they are short discernment in marketing activities- neglect how serious it is when crisis appears. Respond slowly and result in a terrible effect.And they have no enough recognization to the potent...