Analysis of the brand marketing of multinational corporations in China and impact on Chinese companies

With the development of Chinese market economy and increasingly important role of the marketing process, multinationals have launched a large-scale action, the Chinese market has become the centre of global strategy of transnational corporations. Nowadays, multinational corporations have become the main opponent of domestic enterprises, competing with domestic companies, meanwhile they are also faced with the local heated competition. The German Deputy Consul General stationed in Shanghai, Dr. Peter Kreutzberger had made a questionnaire survey on all German companies in China, drawing one of the conclusions is: most German companies in China experienced more intense competition in China than in Germany, and the Chinese market competes more intensely than the European market. Unilever Chairman Mr. Le Mengneng also said: “Competition in China, people who from around the world, you need to release that local competition face has become more and more powerful. Competitive pressures will not decrease, and not scare us, but life will not be easy certainly.”

In China, such a pattern of competition, International brands are capturing territory. China has registered more than 160 million trademarks, and more than 20% are foreign brands. These foreign brands are changing patterns of competition to adjust competitive strategy in China(Ping Chenzhu,2005). Aggressing expansive trend of transnational corporations, however, why in general multinational companies seems to be more competitive than local companies? Where is their competitive advantages?

With regard to multinational companies, their competitive advantages may come from technology, capital, talent, channels, management, marketing, or the one aspect of brand, or few aspect. But what are multinational companies depending on success in China? In short, it is brand, they have a strong brand competitiveness. Brand is power, and brand marketing strategies for multinationals to help them achieving the success of expansion.

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Rationale for the study

In the 21st century, the global brand has entered the era of international competition. Supposing enterprises want to gain advantages in the competition, it must attach importance to brand marketing. Brand as an important means to carry out marketing activities, making their products uniqueness in the competition, moreover, in the course of business, this way is useful to long-term profitability and maintain its position in the market. Especially in the fierce competition, an era of homogeneous goods, brand has increasingly become the most powerful weapon for competition (Dou Guangli,2004).

Furthermore, the cultural taste of brand image and level decided by brand awareness, reflecting the pursuit of company and spiritual insight, becoming the key to winning. So far, many Chinese enterprises have not established the correct concept of brand awareness, and the branding of export products and brand value are low, resulting in poor product sales. Chinese companies should be based on their own conditions and characteristics, improving the sense of brand competition, implementing brand marketing strategy. If it can turn “Made in China” into “Chinese brand”, it will occupy larger international market, receiving good results.

L’Oreal Group, for example, analysis of the brand marketing status of transnational corporations in China, including multinational brand marketing bring advantages to the Chinese market. What’s more, establishment of brand for brand marketing strategy and importance on promotion. By means of having successful experiences of others to go by transnational corporations and comprehensive analysis, combining with the contemporary brand management theory, posing Chinese companies how to enhance brand marketing and development of new trends in the future.

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Literature Review Plan

1. Background of brand marketing

2. Definition of brand marketing and theories related to the situation

3. The brand marketing status of transnational corporations in China

3.1 Subdivide brand market and positioning products

3.2 Make use of brand advantages carry out merger

3.3 Implement multi-brands and unifying brand strategies

3.4 Local brand strategies

3.5 Depend on excellent quality and innovative technology keep brand existent

4 Chinese companies have some problems at the brand marketing

4.1 Weak brand and brand marketing awareness

4.2 Lack of individual brand

4.3 Spread brand form prejudice and single

4.4 Overlook brand management

5 L’Oreal Group study brand marketing in China

5.1 The brand marketing status of L’Oreal Group

5.2 L’Oreal Group brand assume the structure of pyramid

5.3 Compare L’Oreal Group multi-brands strategies with P&G multi-brands strategies

6 The measure of Chinese companies about brand marketing and development of new trends in the future

6.1 Chinese company strengthen the measure of brand marketing

6.2 Chinese company develop the new trends of brand marketing

Proposed Research Methods

In the study method, this article uses a comparative analysis method and empirical research method, through the exploration of relevant theoretical research, exploring relevant theory about the development of multinational corporations brand marketing; and combine with the brand marketing status of Chinese corporations and strength level. In the perspective, revealed that the measure of brand marketing of development of Chinese company and future trends.

Bibliography

  • Alexander,B. (1992). How Brand Image Drives Brand Equity. Journal of Advertising Research,PP.32.
    Keller,K.L.(1993).Conceptualizing, Measuring, Managing Customer – Based Brand Equity ,Vol.57, (1).
    Gui Zhuchun.(2005).Promote brand image,pp.7.
    Wei Fanguo.(2005).Chinese company Face transnational mergence,pp.8.
    Ping Chenzhu.(2005).Brand management. China development.
    Dou Guangli.(2004).Brand competitiveness. University of Chinese people.
    Philip,K.(1997).Marketing management. University of Chinese people.
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