The purpose of this marketing plan is to outline the complete marketing strategy for NUTRILITE. NUTRILITE is the world's leading brand of vitamin supplements. As a global health food brand, NUTRILITE is famous for its superior quality, the rigorous organic farming and advanced production technology. So, the Vitamin C Plus is very popular with Chinese consumers. Since 1998, NUTRILITE has developed more than 10 different kinds of new products and its market segment is growing unceasingly.
This maketing plan will first analyse the market in China, considering relevant factors within a market, competitor, customer and SWOT analysis.
The mission statement: Achieve great commercial success and help the public to set up correct concept of health, so as to achieve better quality of life.
The target market mainly consists of two market segments:
Adults who need to supplement vitamin.
People who are conscious of protecting health.
Future recommendations for the marketing strategy are explored. It will refer to an overall marketing strategy for the company as well as more specific actions for each of the marketing mix areas. An evaluation is conducted followed by an action plan outlining how to achieve the marketing objectives.
NUTRILITE is a brand underneath Amway Independent Business Owners and its products are sold exclusively by Amway in over 55 countries around the world. In 1992, Amway was set up in China. At the beginning, Amway is based on good faith management and it spent nearly 3 years on infrastructure construction such as the production base. After more than ten years, the total investment now is more than $220 million and the headquarters of Amway is located in guangzhou. It is the largest overseas production base except United State, the area is 141,000 square meters. Also, there are lots of regional offices in Beijing, Shanghai and Jiangsu. Amway provides consumers with NUTRILITE Health Food, ARTISTRY Beauty Cosmetics and other 198 kinds of high quality products. In 2009, Amway sales for 20.1 billion yuan, the taxes was 4.2 billion yuan.
Although many industries are suffered a lot from the international financial crisis in 2008, Chinese health food industry has kept a steady growth. In 2008, the output value of Chinese health food was close to 200 Billion RMB. On the one hand, the macroeconomic and political factors are promoting the potential demand for health food. On the other hand, the high yield is also contribute to the stable development of health food industry. According to a survey in 2008, in China the consumer spending on health food accounts for 0.07% of its total expenditure, while the consumer spending accounts for 25% in Europe and the United States. However, in recent years, the growth rate of health care expenditure by Chinese residents is 15%-30%, significantly higher than other developed countries’ growth rate (12%). It is estimated that the gross of Chinese health food will be more than 450 Billion RMB by 2020. So this industry has a huge opportunity for development in China.
Political and legal environment
In China, government has a big effect on marketing environment. Not only does it play the role of a provider in economic activities, but also it acts as a purchaser. Such as the government procurement. It carries out Invite Bidding based on the principle of justice. Also, Industrial and Chinese commercial administrative organs and the tax authorities all have close relationship with the companies. What’s more, PRC Overseas-funded Enterprise Law and Tax Law ensure the company's investment environment and protect the the interests of consumers.
At present, Chinese consumption rate is lower than the rate of investment. From 1990 to 2005, the average investment rate in China is 39.1%, it is 19% more than that of world investment, which indicates that Chinese consumption