The purpose of the present report is to provide recommendations for the packaged potato chips export opportunities. One of the most promising markets for this kind of product is China. First of all, the Chinese market is very profitable due to the number of potential consumers. Secondly, according to French and Crabbe (2010) snacks market is increasing in the country due to the popularity of western ways of life.
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Thus, potato chips have become “high-value products” in recent years (French and Crabbe, 2010, p.56). These two features make the Chinese market one of the most appropriate for international expansion. However, to succeed on the Chinese market some changes in the product’s packaging, flavor and advertising style should be implemented due to the peculiarities of the culture and consumer’s tastes and habits.
Analysis of the future product peculiarities
Admittedly, before entering new market (especially in the other country) it is necessary to learn the culture, habits, customs and preferences of the consumers since these are those essential details which influence business success (Daft, 2010, p. 102). Thus, Daft (2010) illustrates hardships of companies which did not take into account some important characteristic features of the culture (language peculiarities, religion, beliefs). Thus, it is important to make the product fit the new market.
As far as the advertising style is concerned it is necessary to stress the origin of the product due to the popularity of western culture. So, it can be beneficial to point out that his product is the most popular in the western world and it, in fact, symbolizes the entire western culture.
It will be useful to use the images of active and successful people who are aware of the latest trends in the popular culture. Moreover, Hellriegel and Slocum (2007) report that to date Chinese consumers are eager to try something new trying to impress everyone with “their sophistication and courage” (72). Of course, this trend is already known for many producers and Lay’s, for instance, uses an image of a mountain climber.
To promote the product in question it is possible to use the image of people challenging some unpopular traditions. It is also possible to feature a person who will be regarded as the symbol of popularity suggesting joining the club of winners who can impress the rest of Chinese people.
It goes without saying that the name of the product should reveal the same idea of popularity. For example, it is possible to use such names as “Top chips”, “Pop chips”, “Star chips”, “Hot chips”, “The hottest”, “No limits”, etc. These names are associated with popularity, success and challenge which is necessary to promote the product.
As for packaging, first of all, it is necessary to point out that the size of packages can be remained the same. However, it can be helpful to consider colors more carefully. One of possible outlines for the package is red background and several bright (golden or yellow tinges) stars in the center and blue background with the same stars. Such colors and images will, in the first place, attract consumers’ attention and will be easily recognized. On the other hand, such packaging is also associated with success and popularity.
By all means, not only packaging and advertising company can make the product successful. It is essential to take into account consumers’ tastes.
According to Hellriegel and Slocum (2007) the tastes differ even in different areas of China: in Shanhai people prefer “sweet tastes”, in Hong Kong consumers prefer salty products, in the western areas people like “spice flavors”, in Beijing consumers like “meaty” flavors (72).
Interestingly, Hellriegel and Slocum (2007) report that Chinese people do not like eating chips in summer since chips are regarded as hot food. Thus, Lay’s provided a new flavor – lemon chips- which have become quite popular (Hellriegel and Slocum, 2007, p.72).
Such information should be also taken into account: it is possible to work out flavors with mint, and/or other herbs which are common in China to create the same effect of freshness as mint produces. It is but natural to provide different regions with chips in accordance with consumers’ tastes (salty, sweet, meaty). Notably, Hellriegel and Slocum (2007) report that cheese flavor is not popular in China, so this kind of product should not be sold in the Chinese market.
As far as prices are concerned it is possible to remain prices the same. Even if the prices are reasonably high it can be associated with exclusiveness of the product. So, Chinese consumers’ will have another opportunity to impress others with their wealth.
In summary, it is necessary to point out that the most promising market for exporting packaged chips is China. To become successful on this market it is necessary to follow the basic strategy points. The main stress should be made on the notion of popularity and success. The naming and packaging should reveal the same idea: must be bright and recognizable (red and gold colors should prevail).
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There should be several flavors for several parts of China (sweet, salty and meaty, with no cheese flavor). The prices can be quite high which will underline the exclusiveness of the product and will become one of the items necessary to build an image of popular and successful Chinese.
Daft, R.L. (2010). Management (9th ed.). Mason, OH: South-Western Cengage Learning.
French, P., Crabbe, M. (2010). Fat China: How Expanding Waistlines are Changing a Nation. New York: Anthem Press.
Hellriegel, D., Slocum, J.W. (2007). Organizational Behavior. Mason, OH: Thompson South-Western.