Designing the Market Entry

Preparing an American toy brand for the market entry

THE CHALLENGE
Examine market opportunities and propose the market-entry strategy for an American toy brand    

THE METHODOLOGY
Desk research, expert interview, consumer ethnography, workshop

THE OUTCOME
​Market entry plan is comprised of an industry report, market segmentation, product plan, distribution channel plan, and legal structure

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The charm of the Chinese toy market is a given because of its large population, the relaxing of the one-child policy, and the growing middle class. The questions are if it is the right time to enter and how. 
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With a clear market landscape in mind after the second-hand research, expert interviews, and market visit, a team of six embarked on a month and a half national tour, visiting 24 families with 2-6 year old kids. They saw a playground in the living room in one home and a castle with toys piled from the ground to the ceiling in another. As they talked to each family, they witnessed how the family interacted with each other: parents disciplining their children, kids exploring and discovering new things, a mother’s anxiety attack when she thinks her child is in danger, and some parents tearing up with pride as a milestone was achieved.

Every mother that they talked to wants what’s best for her kids. However, there is always a struggle between what their kids want, what they (the parents) want, and what the society wants.

It is our mission to bring a happy learning experience to home education.
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After further research, the China market entry plan's key implication is that both the brand and products need to be localized. The plan specified how could be done, weighing the pros and cons of different scenarios. In the end, the client chose to sell the business to a local partner instead of handling the market alone.