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Grey China Case Analysis

Grey China Case Analysis. Presented By: Michelle Griffin Eyal Golan. History. Larry Valenstein Grey Advertising Established 1917 Opened in Hong Kong 1978. Background. Grey China 6 th largest in 1998 1998 – Won “Most Innovative Agency Award” Key Personnel

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Grey China Case Analysis

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  1. Grey ChinaCase Analysis Presented By: Michelle Griffin Eyal Golan

  2. History • Larry Valenstein • Grey Advertising • Established 1917 • Opened in Hong Kong 1978

  3. Background • Grey China • 6th largest in 1998 • 1998 – Won “Most Innovative Agency Award” • Key Personnel • Viveca Chan – Chairman & CEO of GC • Vivian Lau – IT Director

  4. Advertising in China and Hong Kong • 1997 advertising spending estimated at US$350 and US$650 million • 50% per year • China began accepting advertising in 1980s • Exposure guaranteed success • 1990 saw much more clutter and many “me-too” products

  5. What factors would influence Gi’s success? • Attitude • Market Potential • Culture • Budget • Product life cycle

  6. What should Gi’s position be? • “Brand Agency” • Target => First, current clients Second, companies with products conducive to IMC • First mover

  7. Enter The Market Now Or Wait Until It Matures Past The Initial Growth Stage? • Enter The Market? Yes • China is likely to be a critical market • The Chinese market is untapped • Internet usage is exponentially growing • Image of Brand Agency (as opposed to Advertising Agency) • Proponent of IMC

  8. Enter The Market Now Or Wait Until It Matures Past The Initial Growth Stage? • When? • First in the market is first in the consumer mind • Loosing Ground to niche players • Relatively small investment / Risk => Enter the market now

  9. Hong-Kong or China? • Hong-Kong is a tiny market compared to China • Chinese market is developing rapidly => Great potential • Only 0.06% Internet users in China. 16% in Hong Kong. • The target is China! • Hong Kong can be a short term test bed

  10. What Pricing Model? • Standard 15% of Cost of Media • Nature of service is different • Consulting Fees and Premium Pricing • Cost may be too high for mangers who are not yet convinced • Introductory Pricing • Will help building a large client base and thus to penetrate the market

  11. Questions?

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