Research On Marketing Localization Of McCormick Company & Incorporated In China

As the world moved into 21 century, the economic globalization seems an irreversible trend. Multinational companies are setting up production base, trading and making direct investment across broader areas around the world. China has sustained stable and speedy growth over the last 20 years. Market competition is becoming fairer, government administration more transparent since China joined WTO. China has inevitably become the new growing market around the world.China condiment industry has been developing at a high speed over 20%, and the huge market potential has attracted many MNCs. As an early bird in China condiment market, McCormick & Company Incorporated has now made China the important market in its global strategy. It has promised to make further investment to expand its overall business in China. Hence, to study how McCormick develops China market potential successfully will benefit McCormick to a great extent.Through introducing current development status and its competition, the potential of China condiment industry has been probed. China' s macro environment (political, economic, demographic and culture) is analyzed for McCormick; McCormick' s Microenvironment is also analyzed; which includes McCormick' s own global strength; main competitors in China market; McCormick' s main clients in China; distribution channel policy etc. A SWOT analysis is conducted to clarify McCormick' s growing opportunities and threats in China; the strength McCormick has built up in China and the weakness.It is pointed out that McCormick shall choose localization strategy if it is to grow in China. To prove it, the discrepancy between McCormick' s China business strategy and China market conditions are analyzed. It is necessary for McCormick to adjust business strategy to fit China market. Initial research is made on M&A strategy for McCormickin China and its advantage. McCormick' s brand image and essence in China are also analyzed, and brand localization strategy is emphasized. Initial research is also made on McCormick' s operation localization strategy, which covers human resources, raw material sourcing and logistics.In accordance with China condiment market developing trend, industry structure, and Chinese consumes' habit, McCormick' s main segmented markets are specifically analyzed in terms of developing situation, market size, competition and pricing. The targeting markets have thus been chosen. H&S, ketchup, salad dressing and soup mix are cash cow business, whose operation target is to expand market share; soy sauce and chicken granules are question business, whose business strategy shall be reformed; fermented sauce is star business, which requires huge R&D and marketing investment. Product positioning in each segmented market and relevant strategies are also recommended.In consideration of McCormick' s position in China market, Chinese consumers' eating habit, and the competitive status in China, McCormick' s marketing localization strategy in China has been specifically studied. It includes: McCormick brand repositioning; localization strategies for products, prices, distribution channels and the integrated marketing communications in China.