The proposed case revolves around the current problems Rochat & Schmid face in China as sales fail to meet the expected level. For this reason, the numbers prove the necessity of chance and introducing new approaches that would help to attract new clients. The advertising campaign is a potent tool to spark the public interest in a particular product and ensure the target audience will be more engaged with new offerings. At the same time, the inability to attain the existing goal means that the brand fails to use appropriate strategies that consider peculiarities of the local market, people’s demands, and factors influencing their readiness to make a purchase. Under these conditions, launching a new campaign, it is possible to alter the current public relations strategy and create the basis for the growing attention to the watches offered by R&S.
The differences in the target markets are one of the factors proving the necessity of chance. At the moment, China is one of the fast-growing regions, with a constantly increasing number of customers with a high buying capacity. Currently, the average age of luxury buyers is around 40 in China, while in the European and other Western regions, it is about 55 years. This difference significantly impacts the effectiveness of strategies used to enter the market and preserve the stable level of interest in a particular product. Additionally, the European target market is characterized by more devotion to old and reputable brands. In contrast, the Chinese one is more open to fresh ideas and new firms competing with old ones. Under these conditions, methods previously used by R&S will demonstrate limited results in a new market as they do not consider its peculiarities.
Another critical factor supporting the decision to launch a new campaign is the unique peculiarities of the socio-cultural environment peculiar to China. First, the tastes of people there start to alter, representing the desire to emphasize new visions and differ from the crowd. It introduces a new opportunity for the brand with an established reputation as they can focus on classical lines and shapes, which will make the owner of the watch a unique customer. At the same time, the high level of digitalization peculiar to China results in the emergence of new trends in culture, implying the increased attention to online advertising campaigns and products promoted by celebrities. For this reason, the observed changes in the culture might create the basis for the increased effectiveness of the new campaign and its ability to boost sales.
The decision to initiate a new campaign can also be justified by using Hofstede’s cultural dimensions. China is a unique environment characterized by high scores in the power distance field; it is success-oriented and has a collectivist nature. It means the existence of radical differences and inequalities between people is accepted by local people. From this perspective, launching a radically new promotional activity might be a success. It will emphasize the exclusiveness of the brand, which is appreciated in China, and its availability to premium-class buyers who can afford it. At the same time, using social media and a celebrity, the brand can employ the collectivist nature of local people and attract their attention to the promoted product.
Moreover, Song and Pearl correctly realize the peculiarities of the local market and differences in marketing strategies. This factor also proves their correct realization of the situation and the effectiveness of their proposed plan. China is characterized by different customer behaviors and requirements for products, which influences the choice of marketing strategies. It means that viral and easy-to-share content that can be distributed by various platforms becomes more important and might help companies to evolve. At the same time, methods previously used by other brands might fail in the Chinese market because of the necessity to alter the current marketing paradigm and focus on meeting local demands. For this reason, launching a new campaign regarding the relevant needs might be a success for the brand and lead to its growth.
Altogether, considering all these facts, the decision to start a new campaign is necessary to support the further evolution of the brand and ensure it will attain the desired sales. However, it is vital to persuade all stakeholders that the given strategic decision is necessary. For this reason, Song should use thought language to appeal to facts, details, and central characteristics of a particular issue. Using this method, he can demonstrate the advantages of the proposed option and discuss them with all stakeholders. It is also possible to negotiate the terms and peculiarities of a new campaign and discuss introducing another celebrity. However, the main idea should remain the same as it is vital to shift priorities towards using new, more effective marketing tools. The characteristics of the local market, culture and development trends justify the need to employ new methods. They will help to boost sales and make the brand more popular among the clients with a high buying capacity, which is critical for the brand.