Creative distribution in the Shanghai health nutrition market

Abstract

The purpose of the assignment is to explore how Vigour can sell their products in the Shanghai health nutrition market, and to give Vigour guidelines throughout this process. Vigour has not yet launched their products in any markets, but will follow China closely as they see a possibility in China`s health nutrition market. Vigour and the authors have together developed the problem statement for this thesis. Methodology  Exploratory and qualitative research design is applied since Vigour did not have any up-to-date reports regarding the health nutrition market in Shanghai. The research has been conducted by individual depth-interviews and use of secondary sources.1 Findings  The health nutrition market in China is growing as well as the purchasing power is increasing. The nutrition industry in China is promising and it will grow at a rate of 12 per cent to 15 per cent. By 2010, the gross products of China's nutrition industry are expected to total almost $40 billion. There are several aspects to evaluate when expanding to a market like Shanghai. A PEST- Analysis is conducted to explore the external aspects, a Competitor analysis is used to explore the competitor situation, and the ACE-model is used to explore the internal aspects of Vigour. The external, threats and opportunities, and the internal, strengths and weaknesses, will be evaluated in a double weighed SWOT analysis. The most important points in the thesis are as follows: • Vigour should enter the Shanghai market by differentiation through a unique product and a unique marketing channel. • How Vigour, in an inexpensive way, can promote their brand in a creative way toward the Shanghai health nutrition market.