Marketing Strategy for Abbott in the Chinese Healthcare Market Report

This report analyzes Abbott's expansion plan into the Chinese market, focusing on healthcare products and nutritional supplements. It examines the market opportunity, considering China's growing economy and demand for health-related products. The report details a marketing strategy that includes product development (herbal and organic supplements), pricing strategies (cost leadership), promotional tactics (digital marketing via WeChat, Weibo, and Youku), distribution strategies, and staffing considerations (hiring skilled local labor). The report emphasizes the importance of adapting to China's cultural and economic landscape to ensure success. The conclusion highlights the potential profitability of this venture, stressing the significance of a well-defined marketing plan for navigating the Chinese market. The report also references relevant academic sources to support its analysis. This report is available on Desklib, which provides past papers and solved assignments for students.

Business in Chinese market

Table of Contents
Introduction......................................................................................................................................1
Individual Market Report.................................................................................................................1
Conclusion.......................................................................................................................................3
References........................................................................................................................................4

Introduction
Marketing strategy is referred to be an approach which assists a business into venturing
into new markets and reaching out new people with products and services of an organisation
(Rothaermel, 2015). It is an approach through which an organisation can attain value proposition.
This assignment focuses on expansion plan which has been carried out by Abbott. It is an
organisation which is known to provide instant diagnostics to various chronic disease ensuring
people lead a better lifestyle.
Individual Market Report
The scenario in this report is Abbott which is a leading healthcare product supplier in the
United Kingdom is planning to enter in the Chinese market through launching a diversified
product range i.e. Healthcare products and nutritional supplements. The justification for the same
is that on technological grounds china have been successful in attaining new heights but there is
an severe decline in stature of health of people in the country which can be perceived as an
opportunity for expansion. The market opportunity of china can only be exercised through
forming a right marketing strategy which assures that this organisation attains success in the
upcoming market. The crucial factors of the marketing plan are as follows:
Product: The product which has been established by this mega organisation is to provide
healthcare products and supplements to people in Chinese market. One of the primary reason for
this is that there is ever-increasing demand for such products and services in context of China
and there is absence of organisation which can capitalise upon the same opportunity. Abbott is
already working in healthcare segment therefore can easily channelise its resources and efforts to
create products in the mentioned segment. Considering social and cultural aspects of the country
it can be said that approximately 90% of the population is educated therefore attempts to
maintain a certain stature of health is maintained. It is essential to thoroughly consider culture
and demographics of china so that they are supplied with right products and services. The
supplement which are to be catered should be possessed with herbal essences or should be
produced and manufactured organically as it conforms with Chinese ancient tradition (Top 5
Most Important Things about Doing Business in Chin, 2017). The conjunction between herbal
products and western therapies are considered while looking to promote status of health which is
to be capitalised in this segment.
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Price: It is considered to be price which has been charged for the offered products and
services by this organisation. Before determining pricing of products and services, it is extremely
crucial to consider economic circumstances of a country along with pricing strategies which has
been adopted by rival organisation. The Chinese economy is experiencing a a significant growth
which is a crucial factor while selecting the nation for expansion. The growth in GPD directly
influences the purchasing power of consumers in a positive manner. However on the negative
note there is a high inflation rate in the country which is considered while venturing into
upcoming nations. There is a presence of numerous organisation such as Mindray, Shenzen and
Wanda group delivering the same services therefore this organisation can hire cheaply available
labour and attempt to undertake cost leadership approaches so that a base could be formed.
Promotion: The promotional strategies are defined to be approaches through which
people could be informed and persuaded to buy offering of this organisation. Abbott is planning
to diversify its product range by manufacturing healthcare products and supplement therefore
have to form right promotional strategy. It has been identified that digital marketing is preferred
tool for communication and reason being over 850 million Chinese people have been connected
online and emerges as a largest online community in the whole world (Lu and et. al, 2013).
Abbott can make best use of online promotional tool such as search engine optimisation and
social media so that more and more people are influenced with the offerings of this organisation.
It is cost friendly approach to marketing when compared with traditional measures and can make
severe impact on the costs of production of this mega-pharmaceutical brand. The chines
platforms are relatively different from rest of the world and some of the renowned platforms are
Wechat, Weibo and its video platform Youku.
Place: It is referred to place which has been chosen for an organisation to market and
ultimately deliver its products and services. It can be said that organisation who are venturing
into Chinese market possess an increased chance of attaining success. The Chinese market can
be referred to be one of the most attractive markets in the world as it will be easier to carry out
operations in the market due to its trade agreements with European Union and the United States.
Another crucial factor which helped in identification of the China as the next market for this
organisation is due to market size, cheaply available labour and potential for growth for this
corporation.
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People: This segment focuses on people who help an organisation to successfully venture
into new markets. The organisation is expanding its operations in the Chinese market and have to
hire people belonging from that background and culture as well. The availability of cheap skilled
labour is a major highlight of this economy and will be helpful to a business into successful
expansion. The more number of choices will be helpful in hiring right people for the business
and ultimately helping establishing right operations in the country. The competence of
employees determines success of a business in the country.
Conclusion
It can be concluded from the above report that it is profitable for a pharmaceutical
organisation to venture into Chinese market with healthcare products and supplement. The
marketing strategy is being formed with a careful consideration to external environment features
leading to formation of right plan for a business to enter in Chinese market. At the end, it can be
said that the conformation with marketing plan will assure that this business is able to succeed in
the economy of china.
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References
Books and Journal
Lu, W. and et. al., 2013. Developing construction professional services in the international
market: SWOT analysis of China. Journal of management in engineering. 29(3),
pp.302-313.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.
Zeng, M. and et. al., 2016. The power industry reform in China 2015: Policies, evaluations and
solutions. Renewable and Sustainable Energy Reviews. 57, pp.94-110.
Online
Top 5 Most Important Things about Doing Business in China. 2017. [Online]. Available through:
<https://www.dragonsocial.net/blog/top-5-things-doing-business-in-china/>.
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