INTERNATIONAL MARKETING

GOOGLE’S PROBLEMS IN
CHINA

KRISHNAN V.R
PAUL SCARIA
TARIKA SARAH MATHEW
 MARKETING MIX
PLACE

• In early 2000-Chinese language version

• Operated from California, USA
• Google launched “Google China” -2006 in
China with Kai-Fu Lee.(head)
• Initial name-"Gu Ge” means “the song of the
seeding.”- only non- English name for Google.
 PRODUCTS
• Google pinyin (the primary way the Chinese
type the Chinese characters), Chinese living
research, and hot lists for books, music, etc.
• Google also teamed up with music websites to
supply free music download services that
provided legalized downloads of music tracks.
• Android platform, an open source operating
system for mobile phones.
 PROMOTION
• Word-of-mouth strategy
• Believe less in traditional advertising
• Contests; official product blogs; giving special
exclusive information to journalists; product
placement ,partnerships causing pre-installed
software.
 PRICE
• Google's revenue is based on advertising
• Acquiring properties -serve as venues for ads
like Blogger and YouTube.
• Commands attention with its search ads, and
also to introduce other forms of advertising.
• First to introduce hybrid paid search ranking
scheme.
 ENTRY STRATEGIES
• Initially did well- prepared hardware , software
well in advance.
• Brought about Chinese focused products.
• Partnered with Kingsoft, music websites to
compete with Baidu
• Chinese oriented subsidiary- Kai Fu Lee,
translating Mandarin, country managers
appointed
• Problem of censorship still an issue and Baidu
being a strong local competitor.
  
CHALLENGES OF INTERNATIONAL MARKETING

• cultural differences- Chinese preferred face to

face convos, phone texting to sending emails.
• China- authoritarian govt, and Google had to
follow strict policies.
• Google’s most services were blocked
• In 2010,cyber attacks on its computer systems-
originated in China & Gmail account holders
information were hacked.
• Local competitor Baidu- first mover advantage.
 REASONS FOR GOOGLE NOT WINNING IN
CHINA
• Biggest threat - Baidu
• No belief in traditional marketing unlike Baidu.
• Lack of knowledge in Mandarin language.
• Baidu- first mover advantage in introducing
mp3 downloads.
• Baidu has high link with advertisers in China.
 SEGMENTING INTERNATIONALLY
• Targeted educated working and elite class.
• White collar professionals, people following
western styles & English speaking people.
• In 2002 targeting this audience- success for
Google.
• Introduced legalized mp3 downloads unlike
Baidu-2008
 LONG TERM STRATEGY
• CHINA- potential market with 400 million users.
• eBay and Yahoo cannot regain their foothold.
• Internet penetration rate is 25 % in China and still it is
in its infancy.
• Focus on social-networking, e-commerce and online
gaming.
• Android and Google maps have lot of growth potential.
• Planning to continue in China
THANK U……….
THANK YOU…