To: CEO, Procter & Gamble
Date: Thursday 28 March 2013
Subject: Market Information need to be evaluated accurately before the company enter the Chinese market
For Proctor and Gamble to achieve sustainable success in exporting to China, the company needs to invest in an effective international marketing system (MIS).
Proctor and Gamble is a large-size exporter, several relevant data need to be identified, therefore it is better to establish the computerized databases and it must be continually screened and updated. Because we selected Chinese market as the new market, and then we need to develop marketing decision support systems, which should provide the data of relevant, timely, flexible, accurate, exhaustive and convenient.
External sources of information significantly influence our decision to expand the market to China. For the different business environment in China, we need to understand and analysis the external information first, then cater with our internal sources; there may be some conflict between the internal and external sources. To collect external sources, we can use both government and nongovernment agencies; also the online data should be acceptable.
The various sources of information would be identified by how it is to be analysed, interpreted, and applied. We are considering a commitment to go into Chinese market, so we should estimate the political and legal situation first, also knowledge of the financial institutions that are essential to the planned venture and a large number of statistics.
The research of information is not always done when identifying foreign market opportunities, there is another key role is played by social ties which can be called social networks. Consider the Chinese market, the social network is more complicated and important than US, we need take care about that; for example, the “guanxi” is important, we need to understand who is the key person for us to contact and how that relationship network work before we enter into the Chinese market.
Before we enter the Chinese market:
- We need to estimate the size of potential market in