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With the trend of backing to natural drug and the increasing international marketing share of it in the international market, Tongrentang is facing a promising prospect in international market. However, due to the problems of cultural difference, law and technology barriers, Tongrentang has difficulty entering into European and American markets.
Through the analysis of Tongrentang’s international marketing strategies, the thesis attempts to explore some internationalization strategies to promote the process of internationalization of Tongrentang. The main part of the thesis starts with Chapter two, which introduces some reviews about international marketing and Tongrentang’s international marketing strategies and interprets SWOT analysis, including definition, basic steps and matrix of SWOT analysis. Chapter three analyzes Tongrentang’s international marketing Strategies. This chapter analyzes the strength, weakness, opportunity, threat of Tongrentang, and matches internal strength and weakness with external opportunity and threat to achieve SO, WO, ST, WT strategies. In conclusion, the thesis attempts to sum up the above analysis.
The thesis is of theoretical and practical significance. The theoretical significance of the analysis lies in that it enriches the theory about international marketing strategy of traditional Chinese medicine enterprises. And the result of this research can contribute to the related fields of international marketing strategy of some national enterprises which are with typical Chinese culture. The practical significance is that some strategies suggested in this thesis may improve the international market share and the recognition of Tongrentang.
Chapter Two Literature Review
2.1 International marketing
International marketing refers to business activities operated across the country. Like national marketing, international marketing also need to experience a series of marketing process of marketing research, marketing analysis, marketing segregation, marketing mix etc. to make the strategy and to ensure the practice of strategy.
Philip Kotler (2009), a famous American scholar, in his book Principles of Marketing that the most authoritative book about marketing principles, discussed how the international trade system and economic, political-legal, cultural environment affects a company’s international marketing. International enterprises should make proper marketing mix after ensuring the right marketing positioning to meet the demand of international market, profits following. From the angle of enterprise itself, Heinz Weihrich (2008) put forward SWOT analysis, a scientific analysis used to evaluate the strengths, weaknesses, opportunities and threats involved in a company, and combines internal resources with external resources of a company. Hanxiaojin (2006) clearly illustrated the advantage of Analytic Hierarchy Process (AHP) analysis and combined AHP analysis with SWOT analysis to minimize the shortcomings of SWOT analysis.
2.2 Tongrentang’s international marketing strategies
Since the international marketing strategy of Tongrentang has aroused much attention in China, there have been some related studies recently. Below are the Chinese scholars’ studies on Tongrentang’s international marketing strategies.
From the angle of entering into the international market, Sunli (2012) in her thesis Tongrentang: the internationalization road of Tongrentang, pointed out that the internationalization road of Tongrentang is from trade operation to opening store, from business to production, from Asia to Europe and America. After a rapid development of twenty years, Tongrentang achieve four transformations which are from exporting product to operating commodity, from going out by marketing to going out by production, from single export to both export and import, and from product marketing to culture marketing. From the angle of cultural difference, Shejing (2010), applys the method of multivariate analysis to study the “Tian ren xiang ying” theory, which means nature and human are mutual induction and mutual function.