The Research On Strategies Of Transnational Corporations’ Localization Marketing In China’s FMCG Industry

In the background of economic globalization, more and more transnationalcorporations set their sights on Chinese market, invest in factories in China and salegoods since the reform and opening up. In order to adapt to the market environmentand eliminate the cultural differences between different countries, transnationalcorporations adopt different localization marketing strategies. They occupy a largermarket share and win the trust of consumers, so as to realize the pursuit of thefundamental goal of higher profits. The products of FMCG industry which have highconsumption rate, short-time use, a wide range of consumer groups and high demandof consumer convenience make FMCG the world’s largest industry. The FMCGindustry is also developing in a high speed in China. But the market is mainlyoccupied by P&G, Unilever and many other transnational corporations. Thesecompanies promote their multi-brand products by localization marketing strategiesand the high quality of their products attracted many Chinese consumers.In this essay, we use P&G and Unilever as cases and use4p marketing mixmodel, analysis their localization marketing strategies in product, price, place,promotion these four aspects. And it discuss how these companies make marketsegmentation, localized product positioning, develop scientific pricing system, perfectplace strategy and narrow the distance with consumers, establish a good social imageby promotion strategy.Furthermore, it draws some general conclusion and helps other transactionalcorporations perform better in China market by summarizing the experiences of theP&G and Unilever. Meanwhile, it analysis the weakness of Chinese FMCGcompanies in these aspects by study the influences of these localization marketingstrategies on China market. At last, it suggests that Chinese FMCG companies need to learn some advanced management philosophy from transactional corporations. Theyneed to explore the potential market, seek a breakthrough in their product lines, andestablish a better working relationship with distributors. Only by making full use oflocal resources and the advantages of their products, can Chinese FMCG companiesmake a sustainable development in the market.