Entering the Chinese Market: A Global Entrepreneurship Project

This report analyzes the potential for entering the Chinese market with a packaged drinking water product, focusing on the brand "JUST Water." The context of the opportunity is the water scarcity in Asian countries like China, driven by population growth and pollution. The report aims to explore this market gap and introduce a redesigned product, specifically litchi-flavored water, catering to the urban consumer base. The methodology involves qualitative analysis of secondary sources to assess macroeconomic factors in China. The target market is urban populations, with a phased approach to rural areas. The identified problem is the shortage of safe drinking water. The product redesign includes litchi flavoring and a sporty bottle cap. The country and industry assessment covers political, economic, cultural, geographic, environmental, technological, legal, and banking aspects of Korea, which is used as a case study. The analysis includes industry and competitive analysis and key success factors. The conclusion recommends entering the Chinese market and building a strong customer base. References and an appendix with GDP data are also included.

Running head: ENTERING CHINA
Entering Foreign markets
Name of the Student:
Name of the University:
Author Note:

1ENTERING CHINA
Table of Contents
1. Introduction:............................................................................................................................3
Context of the opportunity:..........................................................................................................3
Purpose of the report:...................................................................................................................3
Overview of methodology and approach:....................................................................................3
2. The opportunity:..........................................................................................................................4
Target market:..............................................................................................................................4
Identified problem:......................................................................................................................4
Perceived needs of the target market:..........................................................................................4
Re-designing product for the existing market:............................................................................4
New product or service for overseas market:..............................................................................5
High level description of the product:.........................................................................................5
3. Country and industry assessment:...............................................................................................5
Characteristics of Korea:.............................................................................................................5
Politics:....................................................................................................................................6
Economic:................................................................................................................................6
Culture:....................................................................................................................................6
Geographic:..............................................................................................................................6
Environment:...........................................................................................................................7
Technology:.............................................................................................................................7

2ENTERING CHINA
Legal:.......................................................................................................................................7
Banking:...................................................................................................................................7
Industry and competitive analysis:..............................................................................................7
Key country assumptions and key success factors:.....................................................................8
4. Conclusion:..................................................................................................................................8
References:......................................................................................................................................9
Appendix: GDP of Korea..............................................................................................................10

3ENTERING CHINA
1. Introduction:
Context of the opportunity:
The context of opportunity would be provided by the shortage of availability of safe and
pure drinking water in the Asian countries like China. The Asian countries are experiencing high
growth in their markets due to their rising gross domestic products. These countries at the same
time suffer from problems like high population. These countries suffer from the problem of
shortage of drinking water. This gap between the population and the available amount of
drinking water would provide the context for the opportunity to introduce a new brand of water.
Purpose of the report:
The purpose of the report would be exploring an existing gap in a chosen market which
would lead to introduction of a new product to meet the gap. The new product which would be
introduced would a brand of packaged drinking water and the target Asian country would be
China.
Overview of methodology and approach:
The research would involve qualitative analysis of the secondary sources of information.
This is because entering China with a new brand of packaged drinking water would require
analysis of the present market conditions of China. This makes it suitable to carry out an analysis
of the macroeconomic factors in the country

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2. The opportunity:
Target market:
The target market would for the introduction of the packaged drinking water would be
China. The target customer segment which the product would target would be people living in
the cities at the initial level. The firm would then go to introduce the product in the rural areas.
This selection of China as the target market can be justified because China has a huge population
living both in cities and rural areas. This would provide the firm introducing the packaged
drinking water product with an immense consumer base. Moreover, an immense population of
people in the Chinese cities like Beijing and Shanghai have huge disposable income. This would
enable the firm to introduce fruit based variants of packaged water which would cater to needs of
the urban customers more specifically. This would enable the firm to generate huge revenue by
catering to the needs of the immense base of customers in China.
Identified problem:
The identified problem would be intense shortage of safe drinking water which the
Chinese cities and rural areas are facing. The firm would offer packaged drinking water both in
plain variant and fruit based variants to the Chinese customers to generate immense revenue.
Perceived needs of the target market:
The perceived needs of the target market namely, China would be safe packaged drink
water. The middle and upper class customers in the country also sought packaged drinking water
with fruit flavor in it.
Re-designing product for the existing market:
The existing product namely packaged drinking water would be redesigned to suit the
tastes of the Chinese customers. The first redesigning which the product would undergo is that

5ENTERING CHINA
the water would be infused with litchi flavor to suit the tastes of the Chinese customers. The
second redesigning the product would undergo would be modifying the cap of the bottle to give
it a sporty and user friendly attribute. The second redesigning would be aimed at enabling the
customers easily open the bottle and consume the drink while involved in sports.
New product or service for overseas market:
The new product for the chosen overseas market namely China would be litchi flavoured
water. The water would be packed with minerals and glucose which would provide instant
energy to the consumers.
High level description of the product:
The product would a range of packaged drink water available in two variants,
unflavoured and flavoured. The name of the company would be JUST Water. The unflavoured
variant would be available in different sizes namely, 0.5 litres, 1 litres and 2 litres. The
unflavoured version would be available in larger packages which would enable customers have
no access to safe drinking water store large quantities of water for domestic use. The flavoured
variant would taste in litchi and be packed with minerals which would provide the people
involved in rigorous activities like sports their daily requirement of energy.
3. Country and industry assessment:
Characteristics of Korea:
Characteristics of Korea potentially impacting packaged drinking project of JUST Water
are as follows:

6ENTERING CHINA
Politics:
Korea is a politically strong region with the president at its nominal head. The
government of Korea maintains strong vigilance in the corporate sector and regulate business
organisations strictly. However, the government is liberalising its policies to attract more foreign
companies (Mofa.go.kr. 2018). JUST Water must exploit this opportunity to enter the Korean
market and establish itself in Asia.
Economic:
The graph below shows that Korea is economically strong nation which with a gross
domestic product of $ 1530.75 bn as on 2017 (Tradingeconomics.com. 2019)(Appendix 1).
Manyika (2017) mentions more GDP means that the country is experiencing higher productivity
which in turn means higher demand for goods and services. This means that the high market
demand of goods in the Korean market would have positive impact on JUST Water.
Culture:
Ding, Yu and Liu (2016) mention that Korea suffers from water shortage due to
increasing population and high level of pollution of drinking water. It can be pointed out the
social condition in Korea would benefit the packaged water company. The company would be
able to exploit the extreme shortage of water to market its packaged water products and generate
high revenue
Geographic:
The geography of Korea would have positive impact on the company. This is because the
country has large number of cities and villages which would provide ready market for the
company (Ahn, Jeong and Kim 2016). .

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Environment:
Water shortage is one of the most significant environmental problems of Korea which has
already been pointed out by Ding, Yu and Liu (2016)
Technology:
Korea is technologically advanced owing to its economic power. This economic strength
of the country would have strong impact on JUST Water because the company would be able to
establish its plants in the country (Choi et al. 2017).
Legal:
The country of Korea is very strict in terms of legal compliance. This strict legal
compliance would have negative impacts on the company. This is because JUST Water would
have to invest immense capital to comply with the law.
Banking:
The country has a very strong banking system. This strong banking system would have
strong impact on JUST Water because it would enable the company to facilitate financial
transaction efficiently (Wang, Li, X., Abdou and Ntim 2015).
Industry and competitive analysis:
Industry and competitive analysis of Korea shows that the market is very competitive.
This implies that the company JUST Water would have to promote its products heavily in Korea
and introduce more market aligned products.

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Key country assumptions and key success factors:
The key assumptions would be that the products by JUST Water would be accepted in
Korea and the company would generate high profits. The key success factors would be profit and
customer base.
4. Conclusion:
It can be concluded that JUST Water should enter the Chinese market to establish itself in
the Asian packaged drinking water market. The company should also aim to gain huge customer
base by introducing high quality products.

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References:
Ahn, S.R., Jeong, J.H. and Kim, S.J., 2016. Assessing drought threats to agricultural water
supplies under climate change by combining the SWAT and MODSIM models for the Geum
River basin, South Korea. Hydrological Sciences Journal, 61(15), pp.2740-2753.
Choi, I.C., Shin, H.J., Nguyen, T. and Tenhunen, J., 2017. Water policy reforms in South Korea:
A historical review and ongoing challenges for sustainable water governance and
management. Water, 9(9), p.717.
Ding, G., Yu, J. and Liu, F., 2016. Water shortage and pollution in China. Academia Journal of
Environmental Sciences, 4(2), pp.18-19.
Manyika, J., 2017. A future that works: AI, automation, employment, and
productivity. McKinsey Global Institute Research, Tech. Rep.
Mofa.go.kr. (2019). Mofa.go.kr. [online] Available at:
http://www.mofa.go.kr/eng/wpge/m_5810/contents.do [Accessed 18 Apr. 2019].
Tradingeconomics.com. (2019). Tradingeconomics.com. [online] Available at:
https://tradingeconomics.com/south-korea/gdp [Accessed 18 Apr. 2019].
Wang, Y., Li, X., Abdou, H. and Ntim, C.G., 2015. Financial development and economic growth
in China. Investment Management and Financial Innovations, 13(3), pp.8-18..

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Appendix: GDP of Korea