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Running Head: Veestro LLC.: Global Marketing and Managers (Name of Institution) (Name of Student)
Running Head: Veestro LLC.: Global Marketing and Managers (Name of Institution) (Name of Student)
[Name of Institution]
[Name of Institution]
[Name of Student]
[Name of Student]
Veestro LLC 2
Veestro LLC
Executive Summary
The prime purpose of this paper is to enlighten the marketing techniques and strategies
being utilised for the penetration of synthetic based meat alternatives in the Chinese market.
Veestro LLC. is a leading manufacturer of synthetic, processed Meat based in the United
Kingdom who plans to scale his operations in the Chinese market. This paper reflects the macro-
environment and micro-environment factors which will incur in the prevailing of business
operation in the new territory. The SWOT analysis, a competitive review is carried out in this
paper that helps in understanding the clear picture of the enterprise sailing. In the end, the
extensively approaching marketing mix was discussed and analysed in the article to provide
insights into the environment of the new market. Through this, a better understanding of the
enterprise could make to sustain in the vast market of China. Overview of competitors and PEST
analysis is also conducted in this paper for improvement in the operations of the organisation.
Veestro LLC 3
Table of Contents
Executive Summary...........................................................................................................2
PEST Analysis...................................................................................................................5
SWOT Analysis.................................................................................................................7
Competitive Review..........................................................................................................9
Positioning.......................................................................................................................10
Marketing Objectives......................................................................................................11
Target Market..................................................................................................................11
Marketing Mix.................................................................................................................12
Product.........................................................................................................................12
Price.............................................................................................................................12
Place............................................................................................................................12
Promotion:...................................................................................................................13
References.......................................................................................................................13
Appendix.........................................................................................................................16
PEST Analysis
The Pest analysis of Chinese market is evaluated here and as it is already known that
China is the largest market exists in Asia and one of the second largest and growing in the world,
due to its rapidly increasing day-by-day population. Making China a highly competitive market
for International brands. In this analysis, the factors such as the political, economic, social-
cultural and technological aspects are analysed. Pest analysis is a tool that helps to image the
Chinese market environment and the factors which could impact directly or indirectly the
Political Economic
The most evident factor in the political China is known as the leading economic
environment in China is its administrative development region in the world,
and legal legislation that ensures the safety comprising a large market segment of the
domestic enterprise. Focusing on home-
and procurement of organisations.
grown enterprises, neglecting massive
Communist dictatorship enables to keep the imports from the world and exporting
economy vigorous and sustainable, backing around 12.8% of its goods globally.
for national constancy. Protecting the China strengthens its economy having
companies from each other. Laws and labour force as a competitive edge, by
regulations of individual local bodies and employing in rural and urban areas for
international bodies impact the business better development of the nation as a whole
and permitting Chinese habitants to initiate
operations and its formulating strategies.
local business enterprises as local bodies
Disobeying the code of conduct of Chinese ease the code of conduct for locals.
market laws can affect in negative public Economy circulates in the cycle, yet it is
relation. The FMCG industry and food- difficult for one to predict precisely what
related chain business industry are well economic trend would occur through
regulated by the political environment to various segments. Economic change directly
sustain a safe and healthy food market. impacts the consumer and industrial
markets. Forex rate, stock market, interest,
Therefore Veestro LLC. must develop unemployment and recession are
positive relationships with the governing and independent variable causing dependency
elected bodies and should pay keen interest in on consumer purchasing power, consumer
generalising these code of conduct and spending arrangements, and willingness to
aligning them with their course of operation. spend.
China has a stable food industry and has a
Veestro LLC 5
SWOT Analysis
The SWOT analysis identifies the context of overall performing operation and where
the enterprise is standing currently in the market. The prime purpose of formulating swot
analysis is to build a framework that would appropriately meet the organisation’s resources and
temperament along with the requirement of the environment in which the enterprise functions. A
SWOT analysis of Veestro LLC. is accompanied here so that a rich picture of the business shall
be attained and several different factors while penetrating the Chinese market.
Weaknesses
Strengths
Opportunities Threats
In this modern age, everybody tries and In China and certainly in the United
maintain themselves to look smart and Kingdom, Veestro LLC. is experiencing
feel healthy. Consumers are more centric
aggressive competition among its
towards health-conscious lifestyle. Arise
in heart disease caused by consumption of competitors.
authentic Meat, transfers many meat At this time, China has some big
lovers to its substitute product.
companies providing the market with a
Veestro LLC. with the help of their
synthetic products might get the attraction substitute meat product, filling the
of these top-notch consumers. The entrants' position for threatening the
emergence of veganism school of thought
enterprise locally.
is the prime topic nowadays. They believe
that the consumption of meat or anything Local bodies in China are also
from commodity shall not be entertained. safeguarding the interest of the domestic
Moreover, young habitants who keep enterprise. This should also be catered by
themselves busy and try to consume fast
food type products more can also be international enterprises and come up
targeted by Veestro LLC. to provide them with strategies to prevail in this
meat substitute to answer their cravings environment.
adequately.
China is a venture providing hub with
China, already a bigger market for
business operation and maximising the leading low wage labour workforce cost,
profits to ceiling, if Veestro LLC. sustains can cause a threat to Veestro LLC. in a
this huge China market with the excellent
manner that more competitors can come
outcome there are more opportunities to
scale up the process all over the region. in the competition and can distribute the
market share of Veestro LLC..
Veestro LLC 8
Competitive Review
Veestro LLC. is relatively a good business generating food joint. A lot of different
competitors are also present in the market to counter the market share of the organisation. To
succeed with the competitive edge in China, organisation should include an emphasis on
acquiring a prime location for their store spot (SHTAL, et. al 2018). Securing high profile real
estate hotspot public packed location would swiftly elevate the business operation and would
also help in maximising sales volume. After such sustainability in this vast market, if the curve
of sales moves upward, Veestro LLC. should focus on expanding its operations by pursuing
scalability (Hamzah, and Hermeindito, 2016). As it is known that China is a vast market and
different cultural possessing habitats are also present in the market. Veestro LLC. should adapt
the cultural differences when required, to better involve with the Chinese market. Apart from
that, brand image plays a vital role to gain the trust of the consumer; once Veestro LLC. gets that
With the quick development of the economy in China, China is assuming a progressively
critical job on the world’s economy. To get acquainted gradually with the market. China is such
an enormous nation with such a massive number of the populace. The populace right now is
around 1.96 billion by 2019. There are 23 regions and over 600 urban communities in the nation
(Singh et. al 2018). Somewhat, this enormous measure of populace demonstrates extraordinary
open doors in the market, as the potential clients are in colossal sum for the remote organisations.
Also, with the development of economy in China, and the situation of China on the globe lately,
which are attractions for remote organisations to maintain their business in China too (Omer,
Veestro LLC 9
2019). China is a quickly rising worldwide monetary force. In general, development has found
the average value of a robust 7% to 8% for over ten years with specific business sectors
There are a few potential choices for remote organisations to enter the
market in China. Essentially, these suggested choices are authorising and diversifying, turning
Permitting implies doling out the privileges of something to another organisation in return
for some corresponding right or remuneration (Munaa, Chogsom, and Tumurshukh, 2016).
Essentially, it is to offer power to a Chinese organisation with the goal that they reserve the
privilege to deliver or utilise the item from the Veestro LLC. It is a well-known approach to
Positioning
Veestro LLC. is producing the most excellent meat substitute in contrary to the actual
Meat. As in this modern era, people tend to move towards the healthier lifestyle, eco-green
products for their commodities, to maintain the prime location in selling synthetic Meat, Veestro
LLC. should attract and attack the demographics of veganism community who are less likely to
consume actual meat product, young generation who emphasis more on fast foods and rapid
consumable products for their craving, and patients of disease arose from cholesterol and other
minerals consumed additionally by them (Karyono, and Agustina, 2019). This approach would
uplift the sales of Veestro LLC. and the position of the enterprise in the market.
Veestro LLC 10
Marketing Objectives
people there are too selective and picky, and after all, due to presence of large competitors in the
region, consumers tend to scare of fresh and new enterprises due to cautious prevention. Veestro
LLC. must emphasis on creating a brand image among Chinese consumer. Social status of
different consumers likely persuades them to shop always or frequently with brands. Comprising
with the vast amount of population present in China, online users are abundant on social media,
respectively. A more significant impact of social media emphasis on buying attributes of the
Chinese consumer. Therefore social media is a substantial tool, utilise to create a durable brand
image among the consumer (ZARA, 2017). Apart from that Key opinion leaders also play a vital
role in reinforcing and influencing brand image. Key opinion leaders are also referred to as
influencer such as Instagram models, YouTube bloggers. Veestro LLC. should also utilise
structured advertisement for their meat substitute products to address mass population through
television, radio and billboards by directly targeting health-conscious and veganism segment of
the market.
Target Market
Dividing the entire market into different sections and then targeting the most appropriate
segment for the maximum volume of sales require perfect segmentation. To gain these sales
volume, the enterprise should pay focus on demographics and lifestyle standards of the consumer
market. Due to the vast population and ultimate growth in the production and uplift in the
economic sector, most of the consumers present in Chinese territory are relatively costly than
other various regions. These habitats want to live their life according to healthier lifestyle
to purchase healthy commodities depending upon their requirement. Therefore such segment of
consumers can be attracted pretty quickly through durable branding of Veestro LLC.
Marketing Mix
Product
The product which Veestro LLC. introduces in the Chinese market is whole of a new kind
substitute of meat products, processed through plants and seldom chemical reactions and
combustions. A variety of meat substitute product is available in the market for addressing
cravings of meat lovers. The substitute product is the same in texture and tastes wise as of
Price
The product offered by Veestro LLC. requires less raw materials, yet more complicated
procedures to formulate the processed synthetic item. Here in the new market, Veestro LLC.
should penetrate the food industry segment with the relatively average cost per consumption. To
sustain in this vast market, it is essential to keep your product differential through pricing
strategy. A lot of competitors are offering processed Meat about at $25 in China (Zakeri, Yang
and Hashemi, 2019). Therefore proposing this price at the initial level would sustainably work
Place
challenging to place your product in such segment or spot from where it can generate a high
volume of sales and certainly making the product available for the end-user in abundance.
Promotion:
In China, the advancement in technology has served significantly for the users, and
actively a large portion of the population offers their leisure time on social media applications
(Sanny, et. al 2018). It is of vital importance that Veestro LLC. should start their brand
awareness campaign through social media at first, later on through advertising, merchandising,
References
SHTAL, T.V., BURIAK, M.M., AMIRBEKULY, Y., UKUBASSOVA, G.S., KASKIN, T.T.
Wu, Y., 2020, February. The Marketing Strategies of IKEA in China Using Tools of PESTEL,
Atlantis Press.
Hamzah, B.R. and Hermeindito, H., 2016. Marketing Strategies Brand Identity to Improve
Omer, S.K., 2018. SWOT analysis: The tool of organisations stability (KFC) as a case study.
Singh, M.K., Kumar, H., Gupta, M.P. and Madaan, J., 2018. A glimpse of sustainable electronics
manufacturing for India: A study using PEST-SWOT analysis. In Global Value Chains,
Omer, S.K., 2019. SWOT analysis implementation's significance on strategy planning Samsung
Technologies, 7(1), pp.56-62.
Munaa, T., Chogsom, B. and Tumurshukh, B., 2016. SWOT, PEST and 5C analysis of the
Mongolian national SDI. In 15th Global Spatial Data Infrastructure Conference, Taipei.
Aithal, P.S., 2016. Study on ABCD analysis technique for business models, business strategies,
Science, 4(1).
Karyono, O. and Agustina, K., 2019. Determining the Priority Strategy in the Implementation of
Zakeri, S., Yang, Y. and Hashemi, M., 2019. Grey strategies interaction model. Journal of
Sanny, L., Simamora, B.H., Polla, J.R. and Atipa, J.L., 2018. Business Strategy Selection Using
SWOT Analysis with ANP and Fuzzy TOPSIS for Improving Competitive
Appendix
China is already the biggest meat consumer comprising the segment of 27 percent of the globe.
Though the consumption per capita is still not up to mark. These white spots are allowing meat
substitute products to come and play in market. Nowadays Chinese market represents 53 percent
of processed meat segment in market. Young urban Chinese are admiring the idea of processed
based meat substitute quite extravagantly. Over the period Chinese market has consumed a lot of
The world largest importer of meat China, is now planning to produce its own domestic synthetic
processed meat substitute. Analysing the high demand of meat substitute product in the region
the vast market metaphor decides to cater the needs of its civilians and offer them best quality
meat alternative product. Consumers of Chinese market now consider meat healthy and
benefitted when imported from United Kingdom. Five nations are majorly exporting meat to
China.
Various social economical lifestyle has improved collectively the growth of meat
consumption in China. Processed synthetic meat is generally made available for consumers at
supermarkets and hypermarkets. Quality of meat product has elevated the shopper approach of
consumer. In china e-commerce is already attaining more and more concentration of consumers,
making it easy to shop commodities with just a single tap. E-commerce is likely covering a vast
community of consumers and providing them with appropriate solution.
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