Running Head: Veestro LLC.

Global Marketing and Managers

Global Marketing and Managers

[Name of Institution]
[Name of Institution]

[Name of Student]
[Name of Student]
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Veestro LLC

Executive Summary

The prime purpose of this paper is to enlighten the marketing techniques and strategies

being utilised for the penetration of synthetic based meat alternatives in the Chinese market.

Veestro LLC. is a leading manufacturer of synthetic, processed Meat based in the United

Kingdom who plans to scale his operations in the Chinese market. This paper reflects the macro-

environment and micro-environment factors which will incur in the prevailing of business

operation in the new territory. The SWOT analysis, a competitive review is carried out in this

paper that helps in understanding the clear picture of the enterprise sailing. In the end, the

extensively approaching marketing mix was discussed and analysed in the article to provide

insights into the environment of the new market. Through this, a better understanding of the

enterprise could make to sustain in the vast market of China. Overview of competitors and PEST

analysis is also conducted in this paper for improvement in the operations of the organisation.
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Table of Contents
Executive Summary...........................................................................................................2

PEST Analysis...................................................................................................................5

SWOT Analysis.................................................................................................................7

Competitive Review..........................................................................................................9

Market Entry Strategies.....................................................................................................9

Permitting and Franchising..........................................................................................10

Positioning.......................................................................................................................10

Marketing Objectives......................................................................................................11

Target Market..................................................................................................................11

Marketing Mix.................................................................................................................12

Product.........................................................................................................................12

Price.............................................................................................................................12

Place............................................................................................................................12

Promotion:...................................................................................................................13

References.......................................................................................................................13

Appendix.........................................................................................................................16

Appendix A: Chinese Alternative Meat Sector...........................................................16

Appendix B: UK vs. Chinese Meat Import.................................................................16

Appendix C: Chinese Meat Distribution Market.........................................................16

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PEST Analysis

The Pest analysis of Chinese market is evaluated here and as it is already known that

China is the largest market exists in Asia and one of the second largest and growing in the world,

due to its rapidly increasing day-by-day population. Making China a highly competitive market

for International brands. In this analysis, the factors such as the political, economic, social-

cultural and technological aspects are analysed. Pest analysis is a tool that helps to image the

Chinese market environment and the factors which could impact directly or indirectly the

operation of Veestro LLC.

Political Economic

 The most evident factor in the political
environment in China is its administrative
and legal legislation that ensures the safety
and procurement of organisations.
 Communist dictatorship enables to keep the
economy vigorous and sustainable, backing
for national constancy. Protecting the
companies from each other. Laws and
regulations of individual local bodies and
international bodies impact the business
operations and its formulating strategies.
 Disobeying the code of conduct of Chinese
market laws can affect in negative public
relation. The FMCG industry and food-
related chain business industry are well
regulated by the political environment to
sustain a safe and healthy food market.
 Therefore Veestro LLC. must develop
positive relationships with the governing and
elected bodies and should pay keen interest in
generalising these code of conduct and
aligning them with their course of operation.
 China is known as the leading economic
development region in the world,
comprising a large market segment of the
domestic enterprise. Focusing on home-
grown enterprises, neglecting massive
imports from the world and exporting
around 12.8% of its goods globally.
 China strengthens its economy having
labour force as a competitive edge, by
employing in rural and urban areas for
better development of the nation as a whole
and permitting Chinese habitants to initiate
local business enterprises as local bodies
ease the code of conduct for locals.
 Economy circulates in the cycle, yet it is
difficult for one to predict precisely what
economic trend would occur through
various segments. Economic change directly
impacts the consumer and industrial
markets. Forex rate, stock market, interest,
unemployment and recession are
independent variable causing dependency
on consumer purchasing power, consumer
spending arrangements, and willingness to
spend.
 China has a stable food industry and has a

Social
 Social trends are generally comprised of
altered cultural values in China. Aspects
such as population growth, family size
prescribe how the market formulate and
ensures social morals to be on the proper
path along with the cultural needs.
 Analysis of population analysis through
by age group, social status and gender
help market specialist to divide the market
into segments. Although the culture is
very diverse in China rather than the
economy is much decentralised.
 Literacy rate of china is almost or above
90%, and a large portion of the Chinese
population has access to the internet.
Social awareness around customers is
significant, while the point of importance
can differ over time. Probably it is
associated with the economic cycle.
 Consumers took an interest in their trusted
brands, products and their producers,
running a check that might they fund
some charitable organisations, whether
they produce in a style that is harmful to
the environment.
Veestro LLC 5
lot of local providers already present in it. It
would be challenging conditions for Veestro
LLC. to prevail in the Chinese market.
Technological Factors
 As it is known, China is the world-leading
economy market and possess relatively
high-tech advance technology and online
infrastructure covering the whole
bandwidth of the country in various
region.
 It is stated that currently, there are 540
million internet users are present in China.
The online payment method and e-
commerce have drastically elevated the
curve of consumer shopping trend.
 Due to the advancement and benefitted
technological era, it is more convenient for
international business to pursue and create
brand awareness in the Chinese market via
social media marketing.
 Negligence of technological factor or
incompetency with its advancement can
prove critical for an organisation to
sustain.
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 Veestro LLC. in this scenario have a

competitive advantage of directly
impacting vegies as substituting the Meat
for their excellent.

SWOT Analysis

The SWOT analysis identifies the context of overall performing operation and where

the enterprise is standing currently in the market. The prime purpose of formulating swot

analysis is to build a framework that would appropriately meet the organisation’s resources and

temperament along with the requirement of the environment in which the enterprise functions. A

SWOT analysis of Veestro LLC. is accompanied here so that a rich picture of the business shall

be attained and several different factors while penetrating the Chinese market.

Weaknesses
Strengths

 Veestro LLC. is a synthetic Meat  Veestro LLC. is relatively a new

producing company, providing
alternative meat substitute for the
individuals who don't want to consume
authentic Meat in the Chinese market.
 It is an excellent strength since the
United Kingdom is the primary market
for its persuasion. In China, it would be
introduced the first time and likely
might get much admiration from the
Chinese people.
 Veestro LLC. has a high tendency of
getting the attention of vegans as they
prefer substitute meat products over
authentic Meat. A healthy workforce is
enterprise with a fresh idea of a business
product, and certainly is unaware of
running operations in such a vast market.
 Moreover, the enterprise does not possess
any good relation network or positive
partners in China. Due to vast competitors
already present in the food industry, it
might get difficult for Veestro LLC. to
prevail its operations smoothly.
 A lot of commitment and enthusiasm is
required to sustain in such colossal
market. Apart from that, company
products are not likely more
acknowledged by most of the consumers

present in the enterprise already is a
plus point.
Opportunities
 In this modern age, everybody tries and
maintain themselves to look smart and
feel healthy. Consumers are more centric
towards health-conscious lifestyle. Arise
in heart disease caused by consumption of
authentic Meat, transfers many meat
lovers to its substitute product.
 Veestro LLC. with the help of their
synthetic products might get the attraction
of these top-notch consumers. The
emergence of veganism school of thought
is the prime topic nowadays. They believe
that the consumption of meat or anything
from commodity shall not be entertained.
 Moreover, young habitants who keep
themselves busy and try to consume fast
food type products more can also be
targeted by Veestro LLC. to provide them
meat substitute to answer their cravings
adequately.
 China, already a bigger market for
business operation and maximising the
profits to ceiling, if Veestro LLC. sustains
this huge China market with the excellent
outcome there are more opportunities to
scale up the process all over the region.
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present in China.
Threats
 In China and certainly in the United
Kingdom, Veestro LLC. is experiencing
aggressive competition among its
competitors.
 At this time, China has some big
companies providing the market with a
substitute meat product, filling the
entrants' position for threatening the
enterprise locally.
 Local bodies in China are also
safeguarding the interest of the domestic
enterprise. This should also be catered by
international enterprises and come up
with strategies to prevail in this
environment.
 China is a venture providing hub with
leading low wage labour workforce cost,
can cause a threat to Veestro LLC. in a
manner that more competitors can come
in the competition and can distribute the
market share of Veestro LLC..
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Competitive Review

Veestro LLC. is relatively a good business generating food joint. A lot of different

competitors are also present in the market to counter the market share of the organisation. To

succeed with the competitive edge in China, organisation should include an emphasis on

acquiring a prime location for their store spot (SHTAL, et. al 2018). Securing high profile real

estate hotspot public packed location would swiftly elevate the business operation and would

also help in maximising sales volume. After such sustainability in this vast market, if the curve

of sales moves upward, Veestro LLC. should focus on expanding its operations by pursuing

scalability (Hamzah, and Hermeindito, 2016). As it is known that China is a vast market and

different cultural possessing habitats are also present in the market. Veestro LLC. should adapt

the cultural differences when required, to better involve with the Chinese market. Apart from

that, brand image plays a vital role to gain the trust of the consumer; once Veestro LLC. gets that

trust, it would be easy to prevail in such a large market.

Market Entry Strategies

With the quick development of the economy in China, China is assuming a progressively

critical job on the world’s economy. To get acquainted gradually with the market. China is such

an enormous nation with such a massive number of the populace. The populace right now is

around 1.96 billion by 2019. There are 23 regions and over 600 urban communities in the nation

(Singh et. al 2018). Somewhat, this enormous measure of populace demonstrates extraordinary

open doors in the market, as the potential clients are in colossal sum for the remote organisations.

Also, with the development of economy in China, and the situation of China on the globe lately,

which are attractions for remote organisations to maintain their business in China too (Omer,
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2019). China is a quickly rising worldwide monetary force. In general, development has found

the average value of a robust 7% to 8% for over ten years with specific business sectors

extending significantly more quickly.

There are a few potential choices for remote organisations to enter the

market in China. Essentially, these suggested choices are authorising and diversifying, turning

out to be joint endeavours and setting up auxiliaries.

Permitting and Franchising

Permitting implies doling out the privileges of something to another organisation in return

for some corresponding right or remuneration (Munaa, Chogsom, and Tumurshukh, 2016).

Essentially, it is to offer power to a Chinese organisation with the goal that they reserve the

privilege to deliver or utilise the item from the Veestro LLC. It is a well-known approach to

passage the market, and it is additionally the most effortless way.

Positioning

Veestro LLC. is producing the most excellent meat substitute in contrary to the actual

Meat. As in this modern era, people tend to move towards the healthier lifestyle, eco-green

products for their commodities, to maintain the prime location in selling synthetic Meat, Veestro

LLC. should attract and attack the demographics of veganism community who are less likely to

consume actual meat product, young generation who emphasis more on fast foods and rapid

consumable products for their craving, and patients of disease arose from cholesterol and other

minerals consumed additionally by them (Karyono, and Agustina, 2019). This approach would

uplift the sales of Veestro LLC. and the position of the enterprise in the market.
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Marketing Objectives

In China branding is everything, As China is a vast market for enterprises venture,

people there are too selective and picky, and after all, due to presence of large competitors in the

region, consumers tend to scare of fresh and new enterprises due to cautious prevention. Veestro

LLC. must emphasis on creating a brand image among Chinese consumer. Social status of

different consumers likely persuades them to shop always or frequently with brands. Comprising

with the vast amount of population present in China, online users are abundant on social media,

respectively. A more significant impact of social media emphasis on buying attributes of the

Chinese consumer. Therefore social media is a substantial tool, utilise to create a durable brand

image among the consumer (ZARA, 2017). Apart from that Key opinion leaders also play a vital

role in reinforcing and influencing brand image. Key opinion leaders are also referred to as

influencer such as Instagram models, YouTube bloggers. Veestro LLC. should also utilise

structured advertisement for their meat substitute products to address mass population through

television, radio and billboards by directly targeting health-conscious and veganism segment of

the market.

Target Market

Dividing the entire market into different sections and then targeting the most appropriate

segment for the maximum volume of sales require perfect segmentation. To gain these sales

volume, the enterprise should pay focus on demographics and lifestyle standards of the consumer

market. Due to the vast population and ultimate growth in the production and uplift in the

economic sector, most of the consumers present in Chinese territory are relatively costly than

other various regions. These habitats want to live their life according to healthier lifestyle

perimeters (Sánchez-Cambronero, González-Cancelas, and Serrano, 2020). The consumer tends

 Veestro LLC 11

to purchase healthy commodities depending upon their requirement. Therefore such segment of

consumers can be attracted pretty quickly through durable branding of Veestro LLC.

Marketing Mix

The four mainstream poles of the marketing mix are as follows:

Product

The product which Veestro LLC. introduces in the Chinese market is whole of a new kind

substitute of meat products, processed through plants and seldom chemical reactions and

combustions. A variety of meat substitute product is available in the market for addressing

cravings of meat lovers. The substitute product is the same in texture and tastes wise as of

authentic meat product.

Price

The product offered by Veestro LLC. requires less raw materials, yet more complicated

procedures to formulate the processed synthetic item. Here in the new market, Veestro LLC.

should penetrate the food industry segment with the relatively average cost per consumption. To

sustain in this vast market, it is essential to keep your product differential through pricing

strategy. A lot of competitors are offering processed Meat about at $25 in China (Zakeri, Yang

and Hashemi, 2019). Therefore proposing this price at the initial level would sustainably work

for the enterprise

Place

Placement refers to the vast distribution of product and making available it to

designated customer. In a market comprising of over 1.34 billion consumers, it is very

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challenging to place your product in such segment or spot from where it can generate a high

volume of sales and certainly making the product available for the end-user in abundance.

Promotion:

In China, the advancement in technology has served significantly for the users, and

actively a large portion of the population offers their leisure time on social media applications

(Sanny, et. al 2018). It is of vital importance that Veestro LLC. should start their brand

awareness campaign through social media at first, later on through advertising, merchandising,

and telemarketing and by promotions too

References

SHTAL, T.V., BURIAK, M.M., AMIRBEKULY, Y., UKUBASSOVA, G.S., KASKIN, T.T.

and TOIBOLDINOVA, Z.G., 2018. Methods of analysis of the external environment of

business activities. Revista ESPACIOS, 39(12).

Wu, Y., 2020, February. The Marketing Strategies of IKEA in China Using Tools of PESTEL,

Five Forces Model and SWOT Analysis. In International Academic Conference on

Frontiers in Social Sciences and Management Innovation (IAFSM 2019) (pp. 348-355).

Atlantis Press.

Hamzah, B.R. and Hermeindito, H., 2016. Marketing Strategies Brand Identity to Improve

Competitiveness of Business Akal Design.

Omer, S.K., 2018. SWOT analysis: The tool of organisations stability (KFC) as a case study.

Journal of Process Management. New Technologies, 6(4), pp.27-34.

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Singh, M.K., Kumar, H., Gupta, M.P. and Madaan, J., 2018. A glimpse of sustainable electronics

manufacturing for India: A study using PEST-SWOT analysis. In Global Value Chains,

Flexibility and Sustainability (pp. 271-281). Springer, Singapore.

Omer, S.K., 2019. SWOT analysis implementation's significance on strategy planning Samsung

mobile company as an example. Journal of Process Management. New

Technologies, 7(1), pp.56-62.

Munaa, T., Chogsom, B. and Tumurshukh, B., 2016. SWOT, PEST and 5C analysis of the

Mongolian national SDI. In 15th Global Spatial Data Infrastructure Conference, Taipei.

Aithal, P.S., 2016. Study on ABCD analysis technique for business models, business strategies,

operating concepts & business systems. International Journal in Management and Social

Science, 4(1).

ZARA, B.P.E.O., 2017. INTERNATIONAL JOURNALS.

Karyono, O. and Agustina, K., 2019. Determining the Priority Strategy in the Implementation of

E-Government Through Swot Analysis Model. Budapest International Research and

Critics Institute (BIRCI-Journal): Humanities and Social Sciences, 2(2), pp.66-74.

Sánchez-Cambronero, A., González-Cancelas, N. and Serrano, B.M., 2020. Analysis of port

sustainability using the PPSC methodology (PESTEL, Porter, SWOT, CAME). World

Scientific News, 146, pp.121-138.

Zakeri, S., Yang, Y. and Hashemi, M., 2019. Grey strategies interaction model. Journal of

Strategy and Management.

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Sanny, L., Simamora, B.H., Polla, J.R. and Atipa, J.L., 2018. Business Strategy Selection Using

SWOT Analysis with ANP and Fuzzy TOPSIS for Improving Competitive

Advantage. Pertanika Journal of Social Sciences & Humanities, 26(2).

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Appendix

Appendix A: Chinese Alternative Meat Sector

China is already the biggest meat consumer comprising the segment of 27 percent of the globe.

Though the consumption per capita is still not up to mark. These white spots are allowing meat

substitute products to come and play in market. Nowadays Chinese market represents 53 percent

of processed meat segment in market. Young urban Chinese are admiring the idea of processed

based meat substitute quite extravagantly. Over the period Chinese market has consumed a lot of

meat substitute with the increment of 12% from 2018 to 2019.

Appendix B: UK vs. Chinese Meat Import

The world largest importer of meat China, is now planning to produce its own domestic synthetic
processed meat substitute. Analysing the high demand of meat substitute product in the region
the vast market metaphor decides to cater the needs of its civilians and offer them best quality
meat alternative product. Consumers of Chinese market now consider meat healthy and
benefitted when imported from United Kingdom. Five nations are majorly exporting meat to
China.

Appendix C: Chinese Meat Distribution Market

Various social economical lifestyle has improved collectively the growth of meat
consumption in China. Processed synthetic meat is generally made available for consumers at
supermarkets and hypermarkets. Quality of meat product has elevated the shopper approach of
consumer. In china e-commerce is already attaining more and more concentration of consumers,
making it easy to shop commodities with just a single tap. E-commerce is likely covering a vast
community of consumers and providing them with appropriate solution.
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