To market its ice cream to Chinese consumers, Unilever entered into a joint venture with Sumstar, a state-owned Chinese investment company. Unilever provided the product know-how, and Sumstar helped Unilever gain all the approvals needed from a complex Chinese bureaucracy. Which type of strategy did Unilever use to reach the Chinese market?

Question

Quizplus · Accepted Answer

Unilever used a market development strategy by entering into a joint venture with Sumstar to access the Chinese market. They did not modify or improve an existing product (market penetration), nor did they introduce a new product to an existing market (product development). Instead, they entered a new market by partnering with a local company who helped them navigate the complexities of the Chinese market.

To Market Its Ice Cream to Chinese Consumers, Unilever Entered