Let's Discuss

Methods for multinational corporations to adapt to global human resources: A case study of China

Methods for multinational corporations to adapt to global human resources: A case study of China

by LIU QIAN . -
Number of replies: 1

The localization strategy of multinational companies in China mainly includes the following aspects:  

Localization of product research, development and manufacturing.  

According to "2001 transnational company invests in China report" data show, global multinational 500 strong already nearly 400 invested in More than 2000 projects in China, in Beijing, Shanghai, Guangzhou and other places to set up a variety of R & D center more than 100, nearly 40 furniture has a considerable scale.  These foreign r&d and innovation institutions not only study products adapted to the Chinese market, but also study the changing social marketing environment in China, so as to proactively and comprehensively adapt to the needs of localization.  For example, IBM's China Research Center in Beijing is dedicated to the research and development of the Chinese market. Its main task is to study advanced computer technologies that can be applied in the Chinese market and the global market in the future.  "KFC China health food committee" hired more than 10 domestic experts as the backing of food development, from how to adapt to the Chinese taste, diet structure, dining habits, consumption characteristics and other aspects are based on the "local situation", launched to adapt to the Chinese "eat fine" requirements of food.  P&g has developed 100 percent localized products for Chinese consumers - runyan Black hair Chinese herbal shampoo and moisturizing spray.  

At the same time, in order to make full use of China's abundant labor resources and knowledge resources, multinational companies in the manufacturing of products from the procurement of raw materials, the supply of spare parts, the selection of supporting manufacturers and the acquisition of various services have also achieved localization.  The average localization rate of MOTOROLA products has reached 60%.  Forty-five percent of what Wal-mart sells is "made in China."  -- Brand localization.  To a large extent, it can be said that the success of multinational companies in China is the success of brand marketing, is the result of the international well-known brands in China deeply rooted in the hearts of the majority of consumers.  At the same time, among the many elements for enterprises to carry out international marketing, brand has profound cultural connotation and emotional connotation, and it is the content that needs localization most.  Therefore, the multinational companies who know this well when entering the Chinese market is to raise the brand banner.  After entering the Chinese market, we try our best to make great efforts in brand localization, making foreign brands "native" and getting close to Chinese consumers.  From the design of brand name to the selection of brand image spokespersons, from the compiling of brand publicity keywords to brand publicity and promotion, and other aspects are committed to Chinese culture, social customs and consumer values, etc., the most typical of which is Procter & Gamble company.  Since 1988, the company entered the Chinese market, has launched 7 categories of 17 brands of products.  Each product brand, such as Rejoice, Head & Shoulders, Colgate, etc., is determined by extensive research and participation of numerous Chinese consumers. They are all authentic Chinese brands without a hint of "American taste".  The Chinese translation of "Coco Cola" is a classic in itself.  

Around to increase brand awareness, build brand loyalty of the brand publicity and promotion activities, the multinational company will be the personification of the international famous brand connotation with the demands of Chinese consumers heart self-image associated psychological orientation, and according to the Chinese people face saving, speak up with the joneses ", showing off the consumption characteristics of further strengthening and refining, to brand the unique brand of charm. Such as "Benz" noble and dignified, "Rolls-Royce" prominent, "Martell" elegant, "Pierre Cardin" elegant fashion and so on.  The strong and distinct symbolic value and conspicuous value of social status, identity and wealth contained in these brands become the lasting power to attract consumers to buy, look up to and follow, effectively establish the high-quality image of the brand, establish brand worship, and greatly enhance the added value of the brand.  -- Localization of distribution channels.  Up to now, the top 500 multinational companies in the world, especially in the field of consumer goods, have established a sound distribution channel network and distribution channel management system in China, winning 90% coverage in the field of distribution channel.  They also according to the company's industry, the characteristics of products, the characteristics of consumer buying behavior and buying mode and competition situation and other factors, formulate distribution channel strategy, choose the way of cooperation with distributors, use the method of both restriction and incentive to distributors.  For example, HP has established a secondary distribution channel in China consisting of secondary agents and secondary dealers, which is controlled in two layers to manage prices and purchase and avoid vicious competition.  Suntory beer also pioneered the flat structure of deep distribution, the implementation of the area distribution system, each distributor is delineated in a protected area with independent distribution rights, the jurisdiction of 400 ~ 500 retail stores, distribution radius of 3000 ~ 5000 meters, not cross-regional sales.  Pepsi sales teams set up two large wholesale to assist member and sellers team, for department stores, shops, large supermarket, HuoCangShi parity, street stores, grocery stores, nightclubs, karaoke bars, and even organs, schools, units, hospitals, institutions can be preempted, overall for multi-level retail terminal penetration.  In order to improve the management level of distributors, multinational companies also provide professional management training courses for sales staff.  For example, HP initiated the "dealer university" in 1998, and all dealers' sales personnel, technical support personnel and operation and management personnel have the opportunity to attend the training.  This intellectual support actively promotes the close cooperation between distributors and multinational companies.  

-- Localization of promotion strategies and means.  Sales promotion is the most flexible and changeable in many elements of marketing, and the most innovative and innovative.  The localization of multinational companies in China marketing, with its abundant capital and rich experience, advanced technology, high level of discretion, global allocation of resources, on the insight into the characteristics of the Chinese consumer demand, the essence of Chinese culture, on the basis of thoroughly grasp invested heavily, bold innovation, majestic, applying promotion strategy localization of astonishingly.  

 In the advertising strategy, multinational companies from the selection of advertising models, the determination of advertising appeal points, the design of keywords to the choice of media have done localization, without "foreigners", without "foreign flavor", do not show "foreign style".  In the Coca-Cola overwhelming, often change in the new advertising, the selection of models are Chinese people love to see Nicholas Tse, Ruby Lin, Cheung Hui Mei, Cheung Bozhi, Fu Mingxia and other Chinese stars.  Its advertisements are also themes catering to Chinese culture and style. In the compilation of advertisement inscriptions, the application of Chinese language by multinational companies is amazing.  For example, Toyota said, "Where there is a road, there will be a Toyota".  Centaur's "centaur opens, good luck comes naturally" and so on.  

 Based on the thorough understanding of China's national conditions, multinational companies pay special attention to the special important position of the Chinese government in economic activities and attach great importance to the public relations activities of the government.  Public relations activities aimed at the government mainly have two levels: one is to get through the relationship with the central government and win the support of the top decision makers;  The second is to deal with the relationship with the local government at all levels, use their own advantages to "solve the problems" for the government, care about and actively promote the development of the local society.  

Another key point of localization of public relations of multinational corporations is to repay the society and build a good image of being an excellent Citizen of China.  Around this theme, multinational companies have made every effort to carry out a series of public relations activities, and won the praise of the public.  Such as IBM's "electronic commerce college plan" and "total booth university research funding projects", SONY's "(SONY) outstanding students from institutions of higher learning", Shanghai gm, "said buick stories, watch the Olympics in Sydney, procter & gamble's" the star of the float soft national race yao "and Johnson &johnson in fujian, shaanxi investment more than 70 ten thousand yuan to establish several hope primary schools, etc.,  Have greatly promoted the Chinese people's sense of trust and identification with multinational corporations.  

 According to the diversified development of China's social economy, the large gap between urban and rural market demand, the strong imitation effect of celebrities by consumers, the relatively sensitive to price, the convergence of consumption, the simultaneous existence of personalized characteristics, etc., multinational companies have also created a lot of dazzling local promotion methods and methods.  Such as a large number of free samples to send, fancy gifts, high frequency of broadcast advertising, thunder-and-lightning POP advertising, the using of the new media, such as the Internet and the affection of McDonald's birthday party, electrolux promotion and Siemens advisory promotion etc., are to construct the three-dimensional promotional campaign, reminded consumers' desire to buy,  For multinational companies in China's successful localization of marketing added luster.  


In reply to LIU QIAN .

Re: Methods for multinational corporations to adapt to global human resources: A case study of China

by AYAN HYD ISMAEL . -
I am agree with you.