Vendee concept Part 3
I would wish to express my sincere gratitude to Professor Mr. Ewoud Jansen (my tutor) in University of Fontys Business Management. He has given me a great hand by guiding me though this project. Without his help, the thesis would not have been possible.
Next, as to Mr Nando Kitwich, the CEO of KV Connections, I am heartily thankful. Because of him, I could get this precious opportunity to reach the real business world. He has made his support available everywhere. With his patient guidance and abundant knowledge, I have learnt a lot.
Lastly, I am indebted to my colleague Mr Shufan Hu in KV connections, who help me go through my internships.
This report will enable Vendee concept to make a decision on whether they should enter the Chinese market with their Poultry processing equipment or not. Furthermore, this report will enable Fontys University of Applied Science in Eindhoven to evaluate the competencies of the trainee.
This report is structured in seven chapters; readers from Vendee concept can overlook
It is hoped that this report is satisfactory for our stakeholders Vendee concept and Fontys University of Applied Science.
Table of content
Perception of Advertising in China
According to region-media, China has a changing consumer environment and hence old methods of advertising cannot be used. Consumers are therefore wary of strict product oriented advertising and dislike the emphasis laid on product characteristics only. For advertisements to attract the consumer it has to have the following criteria; it has to be involving, humorous and interesting. The Chinese consumers want to see a performance, something intriguing, spirited absolutely new and eye-catching, especially the best values for what they spend. For VENDEE CONCEPT’s potential customers in China (poultry processing companies), the key point is their equipment’s value creation capability.
Although preferences in advertising have changed but some traditional approaches have remained unchanged. They are showing product features through an impressive equipment performance show and adverting through an advertising series (used in TV commercials and on billboard advertisements).
In general, an ideal commercial in china should reflect VENDEE CONCEPT’s high performance working process of equipment, specific values that customers could benefit and VENDEE CONCEPT’s best service concept. Furthermore, it should combine image and product qualities. According to Region-Media.cn, it is becoming more common to show the product and brand benefits often accompanied by a typical atmosphere or mood. (VENDEE CONCEPT’s facilities are modern, automatic, fast and reliable; make customer’s assembly line workers enjoy their relaxed working environment).
As mentioned by region-media in the 90s, the number of cars in China grew dramatically and along with it was the number of people who listened to the radio while driving. Radio is one of the most profitable market segments. About 45% of the Chinese population listens to commercial radio. There are more than 500 radio stations located in China (1002 licenses). According to the government data, more than 98% of the population can tune into at least one channel and more than 96% have access to both channels of at least one radio station. (High cost effective for VENDEE CONCEPT)
In China, Roughly 3,300 national, regional, and local TV stations with over two-thirds completely or partially controlled by the local governments; satellite TV services are available. (TV commercials are expensive and a moment of advertisements is seen by some as a time to change channels).
Advertising on Public Transport
More than 65% of Chinese live in urban areas. It is widespread, highly visible, and grows with the city. The buses run in 1300 Chinese cities and towns. More than 50 cities have trolleybuses and trams. However, Chinese towns typically have a dense network of streets, with few metro stations; most journeys are therefore on surface transport. Because most public transport users travel strictly by defining routes, it makes it easy to get ads to this target audience because they can be placed on the buses. One of the most promising areas of development in transport advertising is on the railways. The rail network covers the whole country and has huge potential and therefore ads can be placed on platforms, railway stations halls and inside the carriages on both long-distance and local trains.
According to CNNIC Beijing, Chinese 6.13million Internet hosts in 2012 and 4.835 million Internet users in 2010. The Internet domain is .cn.
Broadband Internet access is becoming more readily available in China, and as a result, the Internet is growing as an avenue for Chinese commerce, with 49% of Internet users in china shopping online, and 38% using online banking services.
Below there is a table containing a website analysis of stork poultry processing and Fomaco. As Stork poultry processing and Fomaco appear to be the biggest players in the market, the focus is with these companies.
|Website||Content||Strength of brand (online/offline)||Availability of feedback|
● Eye-catching pictures. However, too much pictures can distract the attention of the user, allowing users to ignore important information on the page and the impact of a web page download speed
● Direct link to other sources
● Display product function and advantage clearly by using videos
● Membership to keep customer loyalty
● No certificates regarding product mentioned
●No annual report
● There is no option to provide feedback on the Chinese Fomaco website
|Stork poultry processing||5/5|
● Well designed, easy to use
●Defining beautiful pictures as something decent and simple
●The content structure is simple and easy, stress the key points as well
●Give real successful cases and specific numbers to show stork poultry processing’s self-confidence and serious attitudes to the customers
● Annual reports and are published
● High availability to contact
Brand awareness tracking/media monitoring
Some organizations wish to monitor the strength of their brand amongst key stakeholders and/or monitor how their organization is perceived in the media. There are a number of companies who provide these services with varying degrees of detail and analysis. (See Appendix 6)
Professional and Specialized magazines.
The most popular magazines regarding to the food processing market in China as follows:
食品加工 (Shipping Jiagong)
A monthly-specialized magazine is about food processing industry analysis and objects of civil and industrial goods. Equipment and materials, new technologies and issues of usage, warranty and repair service, legislation (standards and regulations), overview of foreign and domestic markets, news, events and facts.
粮油加工 (Liangyou Jiagong)
It is a full-colour, illustrated magazine about seafood, poultry and meat processing method. It has been published since March 1998.
With severe competition of food processing equipment industry in Chinese market, a number of transnational enterprises have broken and gotten rid of traditional distribution channels (a pyramid distribution pattern). To benchmark VENDEE CONCEPT’s two competitors Stork poultry processing and Fomaco, they launched direct to end distributors and direct to end users partnerships. In other words, they attempt to seize Chinese market by using a way of direct factory sales to ensure an effective and efficient control of their distribution channels, furthermore, it is convenient for conveying accurate manufactures’ information and policies direct to customers.
These end distributors were found from the Chinese web page of Stork poultry processing and Connect Group. Some of these distributors exclusively sell Stork poultry processing products while some have the agency of other products. These distributors are the main selling point of such products in the Chinese market. All these companies work with end commercial organizations.
Maliao Food processing equipment (Peking) a large-scale and dynamic structure of the Chinese business equipment on the market. They offer their clients a full range of equipment and professional services in food processing systems, processing technology supply. Quality assurance food processing equipment and responsibility to the consumer
- HuaMu Jijie (Peking) working in the market supply of food processing systems, slaughterhouse sewerage for more than 10 years, formed the main priorities of the Chinese market – is the delivery of high quality equipment from leading manufacturers from Europe and Asia. Developing the dealer in China, they seek to promote the highest standards of quality. Well-established transport and storage logistics can tightly control the whole chain of movement, to offer customers the best prices.
- LongYao Technology ( ShangHai) The company provides the whole range of activities and services to advance on the Chinese market is modern, efficient and reliable food engineering technology, processing equipment and materials in the slaughterhouse of capital and modular boilers, water supply, sewerage, fire protection and automation. This company sells only Stork poultry processing products.
- ShouXing ( ShangHai) is a network of factory pattern shops selling equipment for poultry processing equipment, water supply and slaughterhouse water treatment.it is one of the market leaders in sales of poultry processing equipment and sewage systems.This company sells Stork poultry processing and Connect group products.
Online distribution of Chinese market
In the past two years, e-commerce deals in China have grown annually by about 30%. This sales channel has 12 – 15% of total retail sales in the country, but its share is increasing. The total market for e-commerce deals last year exceeded 11 billion dollars (Chinese Food equipment 2013). Currents in Chinese internet, work more than 8 thousand online stores including 500 large, which control more than 80% of the market. Regarding to specific sectors, there are the hypermarket format stores as well as specialized stores.
The Chinese market works with a lot of specialized online stores, which are selling poultry processing equipment. As an information and the product transaction platform, these stores offer a wide product range of different processing equipment from different producers. Because of the specialty of the large equipment, equipment price is fluctuating by equipment customized design. Customers are required to experience equipment in a distributor’s warehouse in advance. These producers can be found per site. The largest of specialized stores are presented below.
- http://www.Alibaba.com – this store sells equipment for installation and maintenance of food processing products, and slaughter sewage pumps. Clients are the food processing companies around China.
- http://www.Jingdongshipinjiagong.com – Group of companies “JingDong Processing” – specializes in the wholesale supply of domestic and industrial food processing equipment supply.. This store sells Fomaco and Connect Group products.
- http://www.qiaqiashipin.com – Online store “QiaQia” was founded in 2010. It sells equipment for food processing systems from leading European manufacturers, as well as the products of domestic factories. The store offers a wide range of products to solve any problems in the food processing area. In the presence of more than 7,000 types of products, are also working under the order. All products are known in the European and Chinese market. This store sells Stork poultry processing and Fomaco products.
- http://www.taobao.com – this online-store offers a wide range of equipment for food processing systems and water supply. This store sells stork poultry processing and Connect Group products.
Trade shows – Exhibition
INTERNATIONAL POULTRY EXPO in Atlanta, GA
The most important Poultry Tradeshow worldwide.
From the 29th to the 31st of January 2013.
HALIEUTIS in Agadir, Morocco
211 exhibitors from 32 countries. 40,000 visitors for its first edition in 2011.
From the 13th to the 17th of February 2013.
INTERNATIONAL BOSTON SEAFOOD SHOW in Boston, Massachusetts
North America’s seafood industry event. Every year, 18,000 buyers from over 120 countries, over 800 exhibitors.
From the 10th to 12th of March 2013
CFIA in Rennes, France
France’s food processing industry meeting.
From the 12th to the 14th of March 2013.
A huge success with 29,000 visitors at its first edition.
From the 13th to the 15th of March 2013.
CONCHY’PECHE in Saint-Malo, France
From 20th of 21th of March 2013.
EUROPEAN SEAFOOD EXPOSITION in Bruxelles, Belgium :
The largest seafood trade show in the world.
From the 23rd to the 25th of April 2013.
FUTUR FISH EURASIA in Izmir, Turkey
From the 6th to the 8th of June 2013.
VIV’TURQUEY in Istanbul, Turkey
From the 13th to the 15th of June 2013.
SHELLFISH AQUACULTURE EXPOSITION in Vannes, France
29th edition of the seafood aquaculture trade show.
From the 11th and 12th of September 2013
POLAGRA TECH in Poznan, Poland
From the 23rd to the 26th of September 2013.
CONXEMAR in Vigo, Spain
From the 1st to the 3th of October 2013.
SIAMAP IN Tunis, Tunisia
From the 27th of November to the 1rst of December 2013.
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