WM+Wrigley+Case


 * WM Wrigley Case**

Reading:
====Farhoomand, A.F. & Wai,C.P. (Dec 07, 2009). WM Wrigley JR. Company: Innovation in China's Confectionary Market. Hong Kong:University of Hong Kong. ====

Who: WM Wrigley JR
Competitors in the Chinese market

Immediate Issue/Problem Being Faced:
====Being the worlds largest gum manufacturer they have a number of resources at their disposal they must find a way to penetrate the Chinese market with new products that they have got from Mars and Kraft in an effort to penetrate the confectionary market in China and become a leader as they did with the chewing gum industry. ====

Maintain dominant position and growth in the chewing-gum market of China, and try to diversify its product portfolio.

====Basic Issues: Staying up to date with introducing new products and with China's deep and old tradition American candy and gum has never been a large commodity in China. They must develop products that will appeal to the consumer's of that region. While doing this, they also must ensure that they have enough resources dedicated to the North American and European market to continue growth in those regions as well. ====

====Urgency/Importance: Urgency and importance is not too high although they may want to take control of the market before their competitors do, as China has a huge population and can be a very lucrative market. As they are already a very large company they can afford to sit back a bit and ensure that it is the right time to make a move in the Chinese confectionary market. Also, because they have already set up factories in the country, they are ahead of what their competitors would be if they were to just enter the market now. ====

Decision Criteria:
====How to strategize so as they see a continued growth and not a decline with entering the new market. Also, finding a way to keep growing sales of current products while still being able to introduce new products into the market and also have them be effective at the same time. ====

- How to stimulate demand through marketing method? (Expand health concept? Interactivity with customers? Advertising campaign? ...)

- How to deal with the pressure from local confectionery firms and the competition with other international players?

- The Chinese customers pay more and more attention to food safety and health. The functional confectioneries still attract customers, and Wrigley should have to be innovative to make their sugar healthy.

Alternatives:
====1. Wrigley has been very successful in the past and they could just leave things as they are and let a competitor attempt to enter the new market ====

<span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">make products that cater to China specifically
<span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">2. Wrigley continue doing the research about Chinese consuming behavior in order to plan the next strategy over next 5 year. <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">3. Wrigley hirer new genaration to do the business plan in the future. <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">4. <span style="font-family: 'Arial Unicode MS','sans-serif'; font-size: 16px;">Wrigley provides sponsorship for some large activities, or cooperates with some local businesses, in order to promote and marketing their products. For example, many people would like to keep fresh breath when they finished the dinner, and Wrigley may offer chewing-gum and breathe mint in restaurant.

<span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">Missing Information:
<span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">- What strategy they use in selling confectionary in China? <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">- Why Mars takeover WM Wrigley Jr. Company? <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">- <span style="font-family: 'arial unicode ms','sans-serif'; font-size: 16px;">What is the influence of domestic brand in China, and their performances? Is it a threat to WM Wrigley Jr. Co.? <span style="font-family: 'arial unicode ms','sans-serif'; font-size: 16px;">- Doesn't show enough information about supply chain of Wrigley in China, especially manufacturing and supplier.

====<span style="font-family: arial,helvetica,sans-serif; font-size: 16px;">1. Wrigley has been very successful in the past and they could just leave things as they are and let a competitor attempt to enter the new market. ==== <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">Pros <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">Cons: staying put is always a dangerous decision as it has led to the demise of many companies although within the confectionary market it could work as they have a strong product base and customer loyalty.

<span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">If they were to enter this market they would have to make products that cater to the Chinese people as they have much different tastes likes and traditions than anywhere else in the world

<span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">2. Wrigley continue doing the research about Chinese consuming behavior in order to plan the next strategy over next 5 year. <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">Pros <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">- Wrigley will get update information about Chinese behavior <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">- More accuracy in planning next strategy for Wrigley <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">- Be able to apply with gum and non-gum markets <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">Cons <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">- Spend time and cost in research and development

<span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">3. Wrigley hirer new genaration to do the business plan in the future. <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">Pros <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">- Get new strategy from new generation <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">- New genaration will know their genaration behavior better than the old one <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">Cons <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">- Less experience in doing or planning the strategy <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">- Take risk in hiring new people to plan strategy for them 4. <span style="font-family: 'Arial Unicode MS','sans-serif'; font-size: 16px;">Wrigley provides sponsorship for some large activities, or cooperates with some local businesses.

<span style="font-family: 'Arial Unicode MS','sans-serif'; font-size: 16px;">Pros:

<span style="font-family: 'arial unicode ms','sans-serif'; font-size: 16px;">- Expand sales and increase market share.

<span style="font-family: 'arial unicode ms','sans-serif'; font-size: 16px;">- Improve the brand influence.

<span style="font-family: 'arial unicode ms','sans-serif'; font-size: 16px;">- Set up and developing new sales channels

<span style="font-family: 'Arial Unicode MS','sans-serif'; font-size: 16px;">Cons:

<span style="font-family: 'arial unicode ms','sans-serif'; font-size: 16px;">- Need a lot of market research and cost to identified cooperative object.

====<span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">Selection of Preferred Alternative: Catering specifically to the Chinese people would be the alternative id select as i feel the market can be very lucrative and with the resources available to Wrigley it would not be that difficult for them to develop products that most likely would be very successful in China, in turn they would have control over the Chinese confectionary market which would be a huge benefit to the company. Thus, alternative forth should be the best way for this problem. Sponsorship the local business will make Chinese feel Wrigley is Chinese's company. They will give more trust and loyalty in the brand. ====

====<span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">Assumptions: Communism would allow for Wrigley to set up in China as it would create more tax income for China while increasing sales of new products. ====

====<span style="font-family: Arial,Helvetica,sans-serif; font-size: 16px;">Action/Implementation Plan: Wrigley should sponsor Chinese' activities and corporative some China's local businesses. Wrigley will receive a good feedback from Chinese people due to they will be more trust and loyal in Wrigley brand. Next, Wrigley still should continue research and development their products in next 5 to 10 years. They should find out what the Chinese people would enjoy in a candy and ensure the product they have came up with has a good chance of working in the area before releasing it to the market. ====