Smarter Marketing for Tougher Times
Many companies allocate as much to advertising as they do to capital expenses, but they can only guess at the return on their marketing investment. BCG’s holistic approach, which is founded on zero-based budgeting, differentiation of investment levels by brand and market segment, and precise metrics, ensures that dollars are well spent. Applying it has helped companies free up as much as 20 percent of … [ Read more ]
Content: Article | Authors: Hubert Hsu, Jens Harsaae, Joe Manget, John Bogert | Source: “Boston Consulting Group (BCG)” | Subject: Marketing / Sales
Wholesale Distribution Changes for a Winning China Strategy
Most of China’s 500 million consumers still shop at small markets and local department stores. These consumers, who are reaching threshold spending levels for many products, represent China’s fastest-growing market. Yet only a fraction of Western companies have explored the traditional trade beyond the largest cities, primarily because of distribution challenges. Of the various methods for dealing with distribution, active management of the wholesale channel–an … [ Read more ]
Content: Article | Authors: Alvin Lam, Hubert Hsu, Jim Hemerling | Source: “Boston Consulting Group (BCG)” | Subject: International – China
Riding the Next Wave of Outsourcing
Low-cost-country outsourcing has become much more sophisticated, but that doesn’t mean outsourcing is the answer for every company. Not all products – and not all portions of a product’s supply chain-should be outsourced. Lasting competitive advantage requires a nuanced approach. You must consider internal costs and organizational processes in deciding what you send, where you send it, and how you operate. Even when outsourcing is … [ Read more ]
Content: Article | Authors: Hubert Hsu, Jim Hemerling, Jonathan Cowan, Katrina Helmkamp, Michael Zinser | Source: “Boston Consulting Group (BCG)” | Subject: Outsourcing / BPO
Breaking Out of China’s Value Trap
Many multinationals expanding into China’s inland cities become caught in a “value trap.” Mounting losses follow initial investments. Fragmented markets and immature distribution systems confront local managers. China experts Jim Hemerling and Hubert Hsu present options for avoiding this common pitfall including: a new business model grounded in cost reduction; a better perspective on China’s non-urban consumer; and the opportunities creative partnering with local companies … [ Read more ]
Content: Article | Authors: Hubert Hsu, Jim Hemerling | Source: “Boston Consulting Group (BCG)” | Subject: International – China
In Harm’s Way: Getting It Right in China
Global players aren’t in China just to pursue growth. They are also there to compete head-on with the Chinese. But the biggest challenges multinationals encounter in China are often self-generated, because they fail to commit themselves fully to the effort. To keep from getting sidelined, China-bound companies must prepare to do business outside the big cities, make sure the home organization is motivated to support … [ Read more ]
Content: Article | Authors: George Stalk Jr., Hubert Hsu | Source: “Boston Consulting Group (BCG)” | Subject: International – China