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    JWT China Case Analysis Consumer Behaviour

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    ashok4033
    JWT China expanded rapidly in the Chinese market from the 1990s to 2008 by opening offices in Beijing and Shanghai and acquiring local advertising agencies. As China's economy grew and the 2008 Beijing Olympics provided opportunities for sponsorship, JWT China's revenue grew substantially. However, JWT China faced challenges competing with local agencies that had stronger cultural understanding and could offer lower prices. To succeed, JWT China would need to adapt to China's changing consumer trends and behaviors while navigating the country's complex political, economic, social and regulatory environment.

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    JWT China Case Analysis Consumer Behaviour

    Uploaded by

    ashok4033
    914 views10 pages
    JWT China expanded rapidly in the Chinese market from the 1990s to 2008 by opening offices in Beijing and Shanghai and acquiring local advertising agencies. As China's economy grew and the 2008 Beijing Olympics provided opportunities for sponsorship, JWT China's revenue grew substantially. However, JWT China faced challenges competing with local agencies that had stronger cultural understanding and could offer lower prices. To succeed, JWT China would need to adapt to China's changing consumer trends and behaviors while navigating the country's complex political, economic, social and regulatory environment.

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    JWT China (Consumer Behaviour Course Case Study) An Elective in MBA Course

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    JWT China expanded rapidly in the Chinese market from the 1990s to 2008 by opening offices in Beijing and Shanghai and acquiring local advertising agencies. As China's economy grew and the 2008 Beijing Olympics provided opportunities for sponsorship, JWT China's revenue grew substantially. However, JWT China faced challenges competing with local agencies that had stronger cultural understanding and could offer lower prices. To succeed, JWT China would need to adapt to China's changing consumer trends and behaviors while navigating the country's complex political, economic, social and regulatory environment.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    914 views10 pages

    JWT China Case Analysis Consumer Behaviour

    Uploaded by

    ashok4033
    JWT China expanded rapidly in the Chinese market from the 1990s to 2008 by opening offices in Beijing and Shanghai and acquiring local advertising agencies. As China's economy grew and the 2008 Beijing Olympics provided opportunities for sponsorship, JWT China's revenue grew substantially. However, JWT China faced challenges competing with local agencies that had stronger cultural understanding and could offer lower prices. To succeed, JWT China would need to adapt to China's changing consumer trends and behaviors while navigating the country's complex political, economic, social and regulatory environment.

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    Case Study Analysis

    JWT China: Advertising for the New Chinese Consumer



    Group 1
    Case Analysis

    Business Strategy and Expansion of JWT China from 1990s to 2008
    Selling more products to more people in more places than any other agency in the world
    Key igh!ights
    JWT was acquired by WPP in 198! "t was ran#ed the world$s largest ad%ertising agency in &S in
    '8 and (ourth largest mar#eting communication networ# in world!
    JWT entered Chinese mar#et 199with o)ce in *ei+ing and opened a o)ce in Shanghai in 1991
    Wanted to create an une,pected (usion between (undamental consumer insight and a unique
    brand o-er
    They acquired or went (or a J. with lot o( companies in China li#e *ridge Ad%ertising/ 0ew Sun/
    Always/ 1lendinning/ 231 Connect to increase it$s reach in China
    *y the end o( '8/ JWT had a re%enue4sharing strategic alliance and pursuing to acquire "dentica
    "n China/ 85 o( business went to local agencies which competed on lower price premiums
    6uring 19's both domestic and (oreign companies started ad%ertising in China through
    newspaper ads/ billboards/ posters and pamphlets
    Communist re%olution in 1979 resulted in socialist economy which banned ad%ertising industry
    which was remo%ed by 1989
    '8 *ei+ing 9lympics was a golden opportunity (or both domestic and (oreign ad%ertising
    agencies
    :i%e o( JWT clients became sponsors o( the e%ent! ;eno%o 1roup was the only o)cial Chinese
    9lympic Sponsor with a global brand
    :ocus o( these sponsors was to marry the product characteristics with the spirit o( 9lympics to
    ma#e brand bigger and bolder
    The Chinese mar#et was growing and had highest re%enue growth rate within WPP (or that region!
    0ow JWT China had to align with JWT (or its strategic e,pansion and growth
    Situationa! ana!ysis
    "nterna! En#ironment

    JWT$s leadership group at the JWT Shanghai


    o)ce

    JWT China was supposed to be a traditional


    ad%ertising company

    <mphasi=ed high standards o( transparency

    Premium ad%ertising ser%ices

    3ale to (emale ratio is '>?

    &ne%en distribution o( customers across


    cities
    Externa! En#ironment

    @ighly competiti%e mar#et A 85 ta#en o%er by


    local ad%ertising Brms and '5 by 30C$s

    Stringent ad%ertising laws

    Transition (rom a socialist setting towards a


    mar#et oriented economy

    To increase consumer consumption go%ernment


    ga%e %arious subsidies

    Client$s short term relationship with ad%ertising


    companies

    @uge growth potential (or online ad%ertising

    top three ad%ertising categories were


    retailCser%ices/ pharmaceuticals and toiletries
    "mpa$t of high!y fragmented Chinese
    $onsumers mar%et& so$io'e$onomi$ disparities&
    go#ernment $ontro!!ed media and $u!tura!!y
    determined $onsumer (eha#iour on future of
    JWT)s ad#ertising and mar%eting strategies
    E#a!uate JWT)s (usiness expansion in China
    dea!ing *ith !o$a! and foreign $ompetition
    o* to adapt *ith $hanging Chinese
    $onsumer (eha#iour and trends
    "mpa$t of (eing +,C ad#ertising agen$y in
    $hina
    -ro(!em Statement
    -EST. ana!ysis / China perspe$ti#e
    Political

    <conomic Technological
    Socio4cultural
    ;egal
    1979 A the communist
    re%olution
    19DE A nationali=ed all pri%ate
    players
    199 onwards A economic
    re(orms
    6isposable income increased/
    cutting interest rates on
    sa%ings/ reduced ban# charges
    on credit cards
    1989 A new (oreign trade policies/
    in%esting F implementing (ree
    mar#et re(orms
    16P growth a%eraging 15
    *oom in ecommerce/ (ashion/
    (ood industry/ real4estate F
    property
    Submissi%e to authority
    Stringent laws o( the land 4
    Ad%ertisement law/ Consumer
    Protection ;aw/ 9ne child
    policy
    Tech sa%%y
    See# products that account (or
    sa(ety and prestige
    "n%est on research and de%elopment
    Con(ucian doctrine
    Passi%e acceptance o( (aith
    Culture rests on #inship ties and
    respect (or elders
    Priority (or sa(ety/ stability and
    happiness
    +,C ad#ertising agen$y in $hina'
    ad#antages0
    Tap the potential %ia the population o( 1!?D billion
    <nter into a strategic partnership with Chinese ad%ertising Brms
    Acculturation A learn new cultures by being adaptable to penetrate in to the
    (oreign mar#et
    "ncrease in consumer e,penditure and go%ernment policies to boost domestic
    consumption
    1isad#antages of (eing in China
    6omestic brands are gaining brand equity whereas multinational brands
    G30*sH are losing it
    6omestic ad%ertising agencies understand the culture better F can ha%e the
    cost ad%antage
    The Chinese ad%ertising ;aws are a big disad%antage
    "ssue o( Phonetics4 *rand blunder 4#e#ou #ele4 essence o( the brand is lost
    Conser%ati%e audience/ ;ess e,perienced and sophisticated F conscious
    audience
    Cha!!enges for JWT China

    6ynamic change in the consumption pattern o( the citi=ens o( China with the growing
    economy

    :ocus on e,pansion strategy due to pressure o( competing with international F local


    ad%ertising Brms

    Consumers turning out to be more indi%idualistic and demanding in the mar#et

    Company has to be more (ocused towards the change according to the changing
    consumer trends

    Acquisition o( talents according to requirements o( the position with their passion o(


    creati%e wor#

    6ue to income gap in China/ JWT$s (ocus should be more on low end goods and ser%ices

    As the Chinese consumers can be characteri=ed as highly traditional/ their rich culture F
    history/ JWT needs to be care(ul with the multinational commercials being a ma+or ad
    agency

    According to the research/ because o( the di-erences in social status o( Chinese/ there is
    a problem o( deBning middle class

    ;ocal clients (ocus on quic# return policy rather than long term brand %ision/ which leads
    to shorter relationship with the local clients as compared with (oreign clients
    2d#i$e to +r3 Tom 1o$toro4
    &
    n
    d
    e
    r
    s
    t
    a
    n
    d
    i
    n
    g

    C
    h
    i
    n
    a
    $
    s

    c
    o
    n
    s
    u
    m
    e
    r

    c
    u
    l
    t
    u
    r
    e
    Clan and nation
    are pillars o(
    identity
    Anti4indi%idualism
    Standing out .CS
    :itting in
    As Chinese become wealthier/
    they become modern and
    international but remain anti
    indi%idualistic
    Position items o( lu,ury as status
    in%estments rather then their
    inherent beauty
    *eneBts elaborated should be e,ternal not
    internal
    The use o( emotional appeals4
    Chinese are deeply obligated towards
    their (amily and widespread use o(
    image4building ads
    ;ocal pri%ate Brms would be more
    entrepreneurial than large S<9s
    T 2 , K 5 6 7

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