pechoin goes global strategy

Pechoin Enters AfricaPechoin Enters Africa

By Group 4

Jenny Amy Cindy Alicia

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Company ProfileCompany Profile

Legal and Regulatory ForcesLegal and Regulatory Forces

Sociocultural ForcesSociocultural Forces

5 Physical and Environmental ForcesPhysical and Environmental Forces

Economic and Financial ForcesEconomic and Financial Forces

Company OverviewCompany Overview

1.in the 1930s Set up in Shanghai; First generation of skin care goods Popularity both in China and Southeast Asia areasTheme of ‘protection’

2.In the 1980sA period of growth; built a good reputationTheme of ‘Nursing’ and ‘Nutritious’Vaseline cream

3.From 2000 to 2007Further development herbal essence

4.After 2011Moisturizer with herbal essence Skin-care product leader

History and Products

Why Africa? Why Pechion?Why Africa? Why Pechion?

National gift effect

Think skin type not skin color

Darker skin tones also need PechoinHerbal essence; natural; without stimulus; nutritious; balance; latest modern biotechnical achievementsAttractive price

National gift effect

Think skin type not skin color

Darker skin tones also need PechoinHerbal essence; natural; without stimulus; nutritious; balance; latest modern biotechnical achievementsAttractive price

Strategy Selection---Foreign direct investmentStrategy Selection---Foreign direct investment

Foreign Subsidiary

The advantages

Presence abroad

Lesser investment

Decreased costs

Social Cultural Forces

Language:1. English 2. French 3. Arabic 4.Native language

Tips:

1.Different versions of product introduction

2.Don’t use the words “negro” and “black”

Language barriers

Values and attitude

1.They care about their outlook very much. Women like making up.2.They like using lipstick, nail polish and perfume. 3.Color:They like colorful things.

Largepotential market

Tips:

1.R&D:Focus on perfume, skin care series and color make-up series.

2.Package & design

Social Cultural Forces

Personal communication:

1.Greeting2.Strong handshake signify trust and respect3. Low context(direct and explicit)

Tips:

1.Good first impression2.Don’t beat around the bush.3.Consultant

Business negotiation

Social Cultural Forces

Economic and Financial Forces

• 1 Tanzania shilling =0.380 RMB

• Higher price

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Tanzania China

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4270

annual per capital income USD

368.65

233.33

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average GDP of Afican countries Tanzania

GDP100 million USD

Unit price of product: relatively low

Affordable

Purchasing power: weak

Low

Lower the unemployment

rateJobs

Legal and Regulatory Forces

Government corruption

Inconstant policies

More preferencial policies

Physical and Environmental Forces:

• Political environment

• Agricultural

• Industry

• Basic infrastructure system

wars,conflicts,terrorism activities and civil commotions

relatively backward

weak

lag behind

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THANKS