Poultry Products In China Case Study

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Background:
U.S was the largest poultry exporter since 2014. Due to a one-year ban on agricultural products from U.S by the Russian government, China overtook the U.S as the leading poultry market in the world. There are several factors for increasing the demand of poultry products in China. These are mainly, rising population, increasing per capita income both rural and urban areas, demographics changes, increasing urbanization, rising retail industry, transportation development and obviously the increasing demand for export markets.
Tyson has started their business as a complete vertical integration in China market. This business offers food safety as well as modern processing methodology tends to growing sales. The company operates three ventures where the first venture, Tyson Dalong Food Co. used to maintain a marinating facility and two processing plants. Later, Tyson processed the fully cooked chicken products named Welfang, which exported to Japan and Korea. Yum is a reputable brand of Tyson offered wholesale service to clients. On the other hand, McDonald offers fresh chicken in retail …show more content…

Tyson accepted the e-commerce platforms since most of the consumers prefer online shopping rather shopping from physical store. To expand their business globally, Tyson tied with leading e-retailer like Yihaodian.com. Tyson’s global strategy is then switch from B2B company to a B2C company. Tyson developed the marketing strategy by breaking into clusters so that present consumers are able to break into unreached clusters. Another new business strategy is to re-position the poultry products as per Chinese consumers’ demand and taste. In this case, Tyson made investment for marinated or ready-to-eat product. This improves the quality of the product and meets the specific cluster. So, Tyson is able to sell products in eastern and coastal areas of the country. Its products are marketed to mid-to-high income

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