jwt china case analysis consumer behaviour

8/10/2019 JWT China Case Analysis Consumer Behaviour

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Case Study Analysis

JWT China: Advertising for the New Chinese Co

Group 1


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Case Analysis

Business Strategy and Expansion of JWT China from 1990s to 200

Selling more products to more people in more places than any other agency in the worldKey igh!ights

JWT was acquired by WPP in 198! "t was ran#ed the world$s largest ad%ertising agenc'8 and (ourth largest mar#eting communication networ# in world!JWT entered Chinese mar#et 199with o)ce in *ei+ing and opened a o)ce in ShanghaWanted to create an une,pected (usion between (undamental consumer insight and abrand o-erThey acquired or went (or a J. with lot o( companies in China li#e *ridge Ad%ertising/ 0Always/ lendinning/ 23 Connect to increase it$s reach in China*y the end o( '8/ JWT had a re%enue4sharing strategic alliance and pursuing to acqu"n China/ 85 o( business went to local agencies which competed on lower price prem

6uring 19's both domestic and (oreign companies started ad%ertising in China throunewspaper ads/ billboards/ posters and pamphletsCommunist re%olution in 1979 resulted in socialist economy which banned ad%ertisingwhich was remo%ed by 199'8 *ei+ing lympics was a golden opportunity (or both domestic and (oreign ad%ertagencies:i%e o( JWT clients became sponsors o( the e%ent! ;eno%o roup was the only o)cial Clympic Sponsor with a global brand:ocus o( these sponsors was to marry the product characteristics with the spirit o( ly

ma#e brand bigger and bolderThe Chinese mar#et was growing and had highest re%enue growth rate within WPP (or


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Situationa! ana!ysis

"nterna! En#ironment

JWT$s leadership group at the JWT Shanghaio)ce

JWT China was supposed to be a traditionalad%ertising company


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"mpa$t of high!y fragmented Chinese$onsumers mar%et& so$io'e$onomi$ disparities&go#ernment $ontro!!ed media and $u!tura!!ydetermined $onsumer (eha#iour on future of

JWT)s ad#ertising and mar%eting strategies

E#a!uate JWT)s (usiness expansion in Chinadea!ing *ith !o$a! and foreign $ompetition

o* to adapt *ith $hanging Chinese$onsumer (eha#iour and trends

"mpa$t of (eing +,C ad#ertising agen$y in$hina

-ro(!em Statement


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-EST. ana!ysis / China perspe$ti#e

Political


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+,C ad#ertising agen$y in $hina'ad#antages

Tap the potential %ia the population o( 1!?D billion


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isad#antages of (eing in China

6omestic brands are gaining brand equity whereas multination

G30*sH are losing it

6omestic ad%ertising agencies understand the culture better Fcost ad%antage

The Chinese ad%ertising ;aws are a big disad%antage

"ssue o( Phonetics4 *rand blunder 4#e#ou #ele4 essence o( the b

Conser%ati%e audience/ ;ess e,perienced and sophisticated F caudience


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Cha!!enges for JWT China

6ynamic change in the consumption pattern o( the citi=ens o( Chinaeconomy

:ocus on e,pansion strategy due to pressure o( competing with intad%ertising Brms

Consumers turning out to be more indi%idualistic and demanding in the

Company has to be more (ocused towards the change according consumer trends

Acquisition o( talents according to requirements o( the position withcreati%e wor#

6ue to income gap in China/ JWT$s (ocus should be more on low end goo

As the Chinese consumers can be characteri=ed as highly traditional/ thistory/ JWT needs to be care(ul with the multinational commercials agency

According to the research/ because o( the di-erences in social status o


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d#i$e to +r3 Tom o$toro4

&nderstan

dingChina$s

consum

erculture Clan and nation

are pillars o(identity

Anti4indi%idualism

Standing out .S:itting in

As Chinese become wealthier/they become modern andinternational but remain anti

indi%idualistic

Position items o( lu,ury as statusin%estments rather then theirinherent beauty

*eneBts elaborated should be e,terna

internal

The use o( emotional appeals4Chinese are deeply obligated toward

their (amily and widespread use o(image4building ads

;ocal pri%ate Brms would be moreentrepreneurial than large S


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jwt china case analysis consumer behaviour

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