A Marketing Strategy For A Chilean Olive Oil Brand In The Chinese Market

The following Dissertation goal is to design a marketing mix strategy for Olisol, a new Chilean oliveoil company, in the Chinese market. To accomplish this goal, different tools were used, such us marketresearch, application of different management tools and marketing models in addition to a deep dataanalysis.As a first step there is description of the characteristics of the Chilean extra virgin olive oil industryplus the Olisol’s plans for the Chinese market, highlighting that Olisol has what is needed to satisfy theChinese consumers. Then there is a deep analysis about the origin of the extra virgin olive oil consumedin China, finding out that almost100%is imported. In terms of volume,2010the imports of extravirgin olive oil reached a record of more than USD76millions, and it is estimated that during the sameperiod sales reached over USD200millions in China.Through the analysis made on this study, also has been possible to identify the3markets segment inChina, Experienced Consumer, New Consumer and Hotels&Restaurants, highlighting theircharacteristic, describing their needs and identifying their purchasing behavior driver. Besides, there isa market benchmark including the main competitors in the industry.As almost100%of the olive oil consumed in China is imported, in term of the industry structuredistributors plays a key role, what is supported by the fact that the costs analysis made shows that fromthe retail price of a olive oil bottle30%goes to the producer,7%goes to taxes and tariffs, almost40%belongs to the Distributor and about23%goes to the Supermarket.Finally related to the marketing strategy for the Chilean extra virgin olive oil brand Olisol, the studyshows the importance to understand the stage of development of the industry in terms of the ProductLife Cycle, therefore most of the action described in the marketing strategy that Olisol must implenet inChina should response to an industry which is between the introduction and growth phases. Thisaspects drives the strategy into offering a basic product for each segment, charging a introduction pricebased in cost plus a margin, creating a selective distribution channel (easy to manage and control),focusing advertising on generating brand awareness among consumers and distributors and using heavysales promotion to entice demand.