JWT China Case Analysis Consumer Behaviour
Transcript of JWT China Case Analysis Consumer Behaviour
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Case Study Analysis
JWT China: Advertising for the New Chinese Co
Group 1
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Case Analysis
Business Strategy and Expansion of JWT China from 1990s to 200
Selling more products to more people in more places than any other agency in the worldKey igh!ights
JWT was acquired by WPP in 198! "t was ran#ed the world$s largest ad%ertising agenc'8 and (ourth largest mar#eting communication networ# in world!JWT entered Chinese mar#et 199with o)ce in *ei+ing and opened a o)ce in ShanghaWanted to create an une,pected (usion between (undamental consumer insight and abrand o-erThey acquired or went (or a J. with lot o( companies in China li#e *ridge Ad%ertising/ 0Always/ lendinning/ 23 Connect to increase it$s reach in China*y the end o( '8/ JWT had a re%enue4sharing strategic alliance and pursuing to acqu"n China/ 85 o( business went to local agencies which competed on lower price prem
6uring 19's both domestic and (oreign companies started ad%ertising in China throunewspaper ads/ billboards/ posters and pamphletsCommunist re%olution in 1979 resulted in socialist economy which banned ad%ertisingwhich was remo%ed by 199'8 *ei+ing lympics was a golden opportunity (or both domestic and (oreign ad%ertagencies:i%e o( JWT clients became sponsors o( the e%ent! ;eno%o roup was the only o)cial Clympic Sponsor with a global brand:ocus o( these sponsors was to marry the product characteristics with the spirit o( ly
ma#e brand bigger and bolderThe Chinese mar#et was growing and had highest re%enue growth rate within WPP (or
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Situationa! ana!ysis
"nterna! En#ironment
JWT$s leadership group at the JWT Shanghaio)ce
JWT China was supposed to be a traditionalad%ertising company
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"mpa$t of high!y fragmented Chinese$onsumers mar%et& so$io'e$onomi$ disparities&go#ernment $ontro!!ed media and $u!tura!!ydetermined $onsumer (eha#iour on future of
JWT)s ad#ertising and mar%eting strategies
E#a!uate JWT)s (usiness expansion in Chinadea!ing *ith !o$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$hina
-ro(!em Statement
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-EST. ana!ysis / China perspe$ti#e
Political
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+,C ad#ertising agen$y in $hina'ad#antages
Tap the potential %ia the population o( 1!?D billion
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isad#antages of (eing in China
6omestic brands are gaining brand equity whereas multination
G30*sH are losing it
6omestic ad%ertising agencies understand the culture better Fcost ad%antage
The Chinese ad%ertising ;aws are a big disad%antage
"ssue o( Phonetics4 *rand blunder 4#e#ou #ele4 essence o( the b
Conser%ati%e audience/ ;ess e,perienced and sophisticated F caudience
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Cha!!enges for JWT China
6ynamic change in the consumption pattern o( the citi=ens o( Chinaeconomy
:ocus on e,pansion strategy due to pressure o( competing with intad%ertising Brms
Consumers turning out to be more indi%idualistic and demanding in the
Company has to be more (ocused towards the change according consumer trends
Acquisition o( talents according to requirements o( the position withcreati%e wor#
6ue to income gap in China/ JWT$s (ocus should be more on low end goo
As the Chinese consumers can be characteri=ed as highly traditional/ thistory/ JWT needs to be care(ul with the multinational commercials agency
According to the research/ because o( the di-erences in social status o
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d#i$e to +r3 Tom o$toro4
&nderstan
dingChina$s
consum
erculture Clan and nation
are pillars o(identity
Anti4indi%idualism
Standing out .S:itting in
As Chinese become wealthier/they become modern andinternational but remain anti
indi%idualistic
Position items o( lu,ury as statusin%estments rather then theirinherent beauty
*eneBts elaborated should be e,terna
internal
The use o( emotional appeals4Chinese are deeply obligated toward
their (amily and widespread use o(image4building ads
;ocal pri%ate Brms would be moreentrepreneurial than large S
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