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Subject category: Marketing
Authors: David Tse; Mary Ho
Published by: Asia Case Research Centre, The University of Hong Kong
Published in: 2003
Length: 10 pages
Data source: Published sources
Topics: Marketing

Abstract

For centuries, Jingdezhen, the ''Porcelain Metropolis'' of China, produced and exported the finest porcelain treasures in the world. By the late 20th century, however, the city was in danger of losing its past glory. Although its factories still churned out more than a million pieces of porcelain a day, it was facing more competitors at home and abroad than at any time in its history. The declining quality of porcelain made in this highly respected city disappointed a number of porcelain experts and collectors. Jiangdong Crystal-color Art and Crafts Co Ltd (JCAC) was one of the few ceramic-makers that had differentiated itself from its rivals. The company manufactured top-of-the-line luxury products and limited its distribution to the government and high-end retailers. While JCAC was enjoying its success, however, a number of small and medium-sized porcelain manufacturers in Jingdezhen were still struggling to make a profit. With new competitors looming on the horizon, some ceramic firms were reviewing their marketing plans with an eye towards finding a market niche. JCAC, at the same time, was aiming to develop a global brand and to revive the image of Jingdezhen ceramics. This case illustrates the problems of adopting an undifferentiated strategy in a competitive market. It explores how to identify market niches in a traditional industry and examines strategies for building a global brand.
Location:
Other setting(s):
2002

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Abstract

For centuries, Jingdezhen, the ''Porcelain Metropolis'' of China, produced and exported the finest porcelain treasures in the world. By the late 20th century, however, the city was in danger of losing its past glory. Although its factories still churned out more than a million pieces of porcelain a day, it was facing more competitors at home and abroad than at any time in its history. The declining quality of porcelain made in this highly respected city disappointed a number of porcelain experts and collectors. Jiangdong Crystal-color Art and Crafts Co Ltd (JCAC) was one of the few ceramic-makers that had differentiated itself from its rivals. The company manufactured top-of-the-line luxury products and limited its distribution to the government and high-end retailers. While JCAC was enjoying its success, however, a number of small and medium-sized porcelain manufacturers in Jingdezhen were still struggling to make a profit. With new competitors looming on the horizon, some ceramic firms were reviewing their marketing plans with an eye towards finding a market niche. JCAC, at the same time, was aiming to develop a global brand and to revive the image of Jingdezhen ceramics. This case illustrates the problems of adopting an undifferentiated strategy in a competitive market. It explores how to identify market niches in a traditional industry and examines strategies for building a global brand.

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Location:
Other setting(s):
2002

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