MARKETING AUDIT: International Management Group

   

{ARROWHEAD CONSULTING GROUP, LLC.}  

Ashley Chung, David Hong, Justin Lew, Chris Rodgers, Adeline Wdjojo

   

 

  2  

Table of Contents

Introduction………………………………………...3

Background

Business Mission

Thesis Research……………………………………………3

Macroeconomic Environment

The Chinese Market

Competition Analysis Analysis……………………………………..........10

SWOT Analysis

Marketing Objectives

Marketing ROI and Controls Core Strategy………………………………….….14

Budget Conclusion……………………………………..…17 Bibliography

  3  

INTRODUCTION Background

International Management Group Worldwide (IMG) is a US-based business with global operations on six continents. IMG provides a plethora of marketing and management services to the many firms it is hired by. Specific to the Chinese market, IMG works extensively in the in fashion, sports, and media markets. As of December 2013, IMG merged with the talent agency, WIlliam Morris Endeavors (WME), to a purchasing price of $2.3 billion (Cohan). This merger was facilitated be WME’s parent organization, Silver Lake Partners, which is a US-based private equity firm. Alongside IMG/WME, Silver Lake Partners has a major controlling stake in companies such as Dell, Alibaba, Skype and Seagate Technologies (Ozanian). Business Mission “To use imagination, creativity and energy, our mission is to leverage the unparalleled power of IMG’s worldwide resources, capabilities and assets to the benefit of our clients, customers and partners in the areas of sports, entertainment and media” (Silver Lake). Thesis After an in-depth analysis of both IMG’s local Chinese and international operations, our findings have led us to craft two specific recommendation for further growth and expansion:

(1) To continue to develop B2B relations by engaging in business endeavors within specific markets that have proven to be successful, emerging industries in China, such as fashion, golf, and soccer. (2) To further cultivate B2C relations by creating stronger customer-engagement market tactics in order to initiate greater awareness, feedback and customer equity. This newfound brand awareness among the end-consumer will build credibility with those consumers on behalf of the clients partnered with.

RESEARCH Macroeconomic Environment: China In our report, five of the six major forces that act in macro-environments were researched and analyzed in order to better understand IMG’s China operations. .

Macro Environment

Political Cultural/Demographic

Natural/Ecological Technological Economical

  4  

Political Censorship is a common practice within China Central Television, or CCTV. In the

media industry, it is utilized to shield the Chinese public from Western influence by blocking out certain content. The Chinese government’s influence on the nation’s mass media and culture could thus very well impact its sports industry (Cain). It can determine which sports will flourish as well as which sports could be cut off from media and die. Thus, focusing on such trends and how much airtime certain sports are broadcasted is important for IMG to constantly observe and analyze.

There are controversial incidents of match fixing and bribery associated with the Chinese Football Association (CFA), primarily due to the low player incomes and unchecked government officials. The CFA has fined 12 club teams up to $150,000, and 58 current and former soccer players, referees and officials have been punished (Kaiman). The current issue is that although the CFA is punishing teams and players, it has yet to punish actual local government officials. It is because political corruption inside both the Chinese Super League, which is the league that IMG is directly affiliated with, and CFA that both local and international soccer associations do not find legitimacy or professionalism in the league. IMG has the potential to bring positive branding image for both the CSL and CFA and can therefore boost the leagues brand image and international presence. Cultural and Demographics

Ping-Pong, tennis, soccer and golf make up the list of most popular sports in China (Zhu). With IMG’s movement into the Chinese golf market through the many events it hosts, golf has seen a considerable market size growth in just ten years. This growth has been spurred by a steady shift and cultural adaptation from upper class, wealthy Chinese citizens who want to play more golf. Much like the United States, where around 63% of golf viewers are 55 years and older, China’s golf industry is also being initiated by the older, more affluent crowd (McCann). Along with these sports, IMG also operates its fashion division within China as well, particularly through the Shenzhen Garment Industry Association. This strategic partnership was forged due to the booming interest in China for local and international fashion prominence (CNTV). As these sports and industries continue to emerge in the Chinese market, IMG should continue to establish themselves as a reputable expert in these areas; it should place itself as the best in the market and enter into more partnerships with organizations in these industries. Natural and Ecological

Pollution is the biggest health concern for both locals and expatriates alike in major cities all across China. Hazardous smog conditions delayed both athletes and spectators for events such as the 2013 Reignwood LPGA Classic and the 2014 China Open tennis tournament (“Pollution Disrupts Sports”). Visibility was low, many flights were delayed and players and spectators alike were forced to wear masks. Thus, such hazardous pollution conditions are detrimental for hosting sporting events, since people are wary of entering such unhealthy conditions. The continuation of air pollution could potentially discourage professional athletes from competing in future events, and thus harm IMG’s potential within the sports industry.

  5  

Air quality during the 2008 Beijing Olympics was tolerable, mainly because the government suspended 267 businesses and funded a $20 billion governmental cleanup campaign for Beijing and the cities around it (Yardley). Building up the Asia-Pacific Economic Cooperation, the government shut down more than 800 factories from Beijing to even cities several hundred miles away.

With the start of 2015, China’s legislature had voted to adopt revisions into their environmental policies. It was the first change that happened in 25 years, and the revised law now has 70 articles instead of 47 (Duggan). Factories that violate the new terms will be severely fined, and the individuals in charge have the potential of being be sent to prison. China is therefore making positive changes to the amount of pollution emitted by factories across the country. Technological Advertising trends have shifted primarily into the mobile market. In 2015, China’s total ad-spent has been estimated to be worth $57 billion and will continue to have the most rapid amount of growth, with about 67.6% compound annual growth rate through the year 2018. In fact, mobile-based advertisements already comprises of 10% of digital advertising revenues. Research has signified that China’s overall digital market will be larger than its television market from the year 2015, and social media ads will be the fastest growing channel with the rate of 67.6% through the year 2018 (Lau). WeChat is one of the most popular mobile messaging applications in China and many companies already advertise through this application. Both customers and the public are able to follow and subscribe to companies with WeChat pages, making it easier to quickly notify followers about upcoming events and internal affairs (Custer). Tencent, the parent company of WeChat, had just recently made advertising live for its timeline service, which gives companies even more visibility. Another social media and mobile market channel is Weibo, a separate micro blogging service where users can chat, share platforms, and follow others; it is similar to America’s Twitter (Weihong) Positive brand image is important for the longevity of a firm, and it is therefore imperative that there are people who will stay active on the social media front of the company. IMG should create a subscription page that actively posts upcoming events in order to keep both customers and the public aware of not just current events, but also the brand’s presence in the market. Economical

As of 2015, China has become the world’s official largest economy. Furthermore, China’s exports and household savings make up 50% of China’s GDP (S.R.). Within the past several years, China has surpassed the United States in becoming the world’s leader in manufacturing output. Although the United States is still ahead on certain aspects such as patents, China is nearly dominating every other facet of the global market.

A few of IMG’s global partners have been concerned about China’s last year’s annual growth figures, in which it decreased from 7.7% in 2013 to 7.4% in 2014 (S.R.). China’s growth in economy may have been the weakest performance in 25 years, but its economic output was nevertheless 10.3% trillion last year, which is still 25 times

  6  

bigger than its economic output in 1990. Slower growth now means additional demand for the future.

Last year, with subdued inflation, China still yielded 4.8 trillion yuan in GDP, a figure similar to 2007’s GDP, with 14.2% growth and even more inflation. Today’s economy is becoming more service orientated, and compared to the last year, added 13.2 million more jobs in urban cities (S.R). Right now is the time to penetrate the Chinese market because its economy will continue to grow. The Chinese Market The following section debriefs and provides information on IMG’s overall market within China. Market size, growth rates, and developments

IMG’s involvement with golf, soccer and fashion, as well as it’s newfound partnership with CCTV, has contributed to the overall development and growth of IMG’s China market. IMG was successful in collaborating with CCTV, the world’s most viewed television network, by forming the partnership CCTV-IMG. CCTV is also partners with CNTV (China Network Television), which is an internet-based broadcaster of CCTV. CCTV is also the main television broadcaster in Mainland China, which thus leads many families and individuals in China to rely on CCTV and CNTV as their main source of media. IMG relies on both these companies to broadcast sports, fashion, news, and entertainment programs. In 2007, China’s television usage and viewing through CCTV rose to 1.2 billion. Eric Apelgren, Head International and Governance Relations, stated that the 2008 Summer Olympics coverage on CCTV resulted in an aggregate 41% audience share across its network through the sports, entertainment, and news channels alone, indicating how popular CCTV is as a television broadcaster. The CCTV Arts and Entertainment (CCTV-3) channel provides the latest fashion and showcase fashion weeks such as Shenzhen Fashion Week. CCTV Sports (CCTV-5) and CCTV Sports Plus (CCTV-5+) are the two sports channels operated by China Central Television; these channels promote sports in China, Hong Kong, Macau, and Taiwan. They provide previous and up-to-date sports news, player and commentary interviews, live feed, and game highlights on sports.

In 2010, Asian Tour and IMG joined as partners to create Asian Tour Media, an initial 12-year agreement designed to globally recognize and publicize professional golfers

The Market

Size & Growth Promotions, Events, etc.

Customers B2B & B2C

Distribution & Suppliers

Collaboration & Partnerships

  7  

in Asia. For soccer, Major League Soccer (MLS) and U.S. Soccer have partnered with IMG to market and distribute global media rights for the next eight years. According to Gary Stevenson, President and Managing Director, MLS Business Ventures announced “As Major League Soccer approaches its 20th season, the worldwide interest in the league is at an all-time high and is growing dramatically.” In 1999, IMG started making golf a major market in Asia. IMG manages the careers and brands of some the world’s most famous professional players. Some golfers they represent and manage include KJ Choi, Lydia Ko, Minjin Lee, Shanshan Feng, and more. IMG owns, manages, and operates a number of golf and soccer events in China, and thus attracts professional players and teams from around the world. IMG also provides Golf Course Services by giving development advice on golf course management and golf course design. Some IMG events they operate are HSBC Women’s Champions, LPGA Taiwan Championship, etc. In 1994, IMG established IMG Academy, which is a program committed to player development at the youth, collegiate, and professional levels. More and more athletes go to IMG Academy to improve their game and to develop their athletic skills. Customers B2B Customers:

Customers and clients choose IMG based on how large and powerful IMG is and how connected they are with major networks. IMG provides great business and customer services through its professionalism in the sports, entertainment, fashion, and media industry, thus making IMG a reliable partner. IMG is constantly growing in the market through its partnership with CCTV. IMG’s main market focus was CCTV, knowing that it would attract a large pool of people globally, and especially in China. Due to the fact that CCTV is the main media source in China, there has been minimal competition against the CCTV and IMG partnership.

Fashion has also been a growing industry in China. One major reason for this is due to IMG’s partnership with Shenzhen Garment Industry Association (SGIA). The partnership between SGIA and IMG aims to popularize Shenzhen Fashion Week, also known as SZFW, to become one of the largest fashion weeks in Asia. IMG plans on using personalities such as Miranda Kerr, a famous model who attracts individuals all around the world, and thus contribute to promoting fashion within China. IMG’s relationships with top models, designers, and other media sources help promote such fashion shows in China. Such promotions are an important platform for international designers who venture into China’s market, and for other Chinese brands to to grow their businesses both domestically and globally.

IMG also offers a plethora of professional services that many golf organizations and golf courses need in order to be successful within their industry. Many golf organizations

B2B B2C Target Audiences

  8  

and clubs, such as East Sea Golf Club, Dragon Lake Golf Club, and Hong Hua International Golf Club, rely on IMG to lead and manage their golf courses, events and services. IMG professional athletes also seek IMG to help manage their career and develop their skills through personal training and growth. Another similar branch to this is IMG Academy, a private athletic training institute. It is involved in recruiting youth, collegiate, and adult athletes who are looking to improve in their athletic abilities. This academy helps those who are seeking to potentially become future professional athletes. Professional athletes help advertise and publicize IMG, which in turn, make the company more successful by having more public audiences and athletes enter into the Chinese sport industries. IMG benefits from this because they continue to provide excellent services and are able to grow within the market. B2C Customers:

IMG provides the entertainments, programs, and events for Chinese citizens and expats living in China. Chinese citizens and expats living in China include average television viewers, event attendees, models, and athletes who are affiliated with or are supporting IMG in China. IMG-CCTV provides the latest news and entertainment, especially for fashion and sports, to specific individuals who are interested in watching such channels. Fashion models and professional athletes within and outside of China are also managed by IMG, providing them with the professional services and career management necessary to thrive in their own industries. IMG also organizes and manages events, such as golf events, soccer events, and fashion weeks, to provide the people of China with entertainment, to expand within these industries, and to bring global awareness in China. Divisions, distribution, and suppliers

How accessible is IMG and who supplies them? With nearly 3,000 professionally trained employees operating in more than 30 countries around the world, IMG is divided into many different divisions that specialize in their strengths to grow in the market and as a global leader. IMG employees incorporate collaborative decision-making within the company and with their business clients such as CCTV, the fashion industry, and the sports industry. IMG Media’s partnership with CCTV is IMG’s main marketing source through media. CNTV is also under CCTV and both companies offer multiple foreign language services (English, French, Spanish, Russian, Arabic, and Korean). Sports crews and Sport channel anchors work with CCTV to obtain the latest sports news and to provide live feed. Some CCTV Sports Scene anchors include Wang Dong, Greg Laffradi, Peter Koveos, and Simon Pusey; all of who are CCTV news and sports commentators. Golf course maintenance groups help design and maintain the golf courses IMG manage and arrange. Superintendents are in change of these operations and supply IMG with any materials or individuals to get the job done. IMG’s activities in China have not only been beneficial to IMG’s market, but have helped China develop and grow as a country. Competition Analysis IMG has several competitions here in China. This report researches and compares two of IMG’s main competitors.

  9  

Octagon, Inc. Octagon is an American sports agency that does sports marketing, talent

representation, event management, entertainment marketing and research. It has expanded around the world and well into the Asia Pacific region, penetrating China’s markets in sponsorship consulting. It claims itself as being the best in marketing, management and research, and will continue to focus in such areas of expertise. The company is also very well developed within Asia. As such, they have held many events in Asia such as the annual North Face 100 in China, the first and largest endurance run in mainland China in which the company manages all event marketing details including course, design, sponsorship sales, sponsorship integration, etc. One of the company’s strengths is that it is specific in its areas of expertise, primarily sports consulting, events and talent representation, unlike IMG, which is very extensive and broad. The fact that Octagon is specialized makes it able to focus and cater specifically to its clients. Also, unlike IMG, Octagon is not involved in any media or television programming. This is an advantageous for IMG, since much of its business in China involves media broadcast. Octagon is a smaller company than IMG, but is nevertheless quite large; it is a multi-billion dollar business. It does sponsorship consulting and execution for associations such as LPGA, the Chinese ladies golf tournament. It also manages the Samsung sponsorship of CSL, the Chinese Super League. The company overall has 800 athlete personality clients. In total, the company manages and influences some $3 billion in sponsorship-related spending annually and are involved with 13000 events annually (“Octagon”). World Sport Group (WSG)

World Sport Group is an Asian based company that claims itself as Asia’s largest sports marketing, media and event management company. Based in Singapore, it focuses and specializes in sports within Asia Pacific. It has operated in Asia for over 22 years, supporting various sports with numerous marketing programs, event management, content creation, distribution and athlete and team management. It delivers 600 sporting events annually and over 5,000 hours of sports across more than 25 countries (“Who We Are”). It is involved in football, golf and cricket, partnering with organizations such as the Asian Football Confederation (AFC), a football tournament which is expected to grow to $1 billion in 2020, and OneAsia, a men’s golf tournament in Asia Pacific (“What We Do”). It is also partners with ESPN, a cable television company that is in competition to the sports sector of CCTV, which broadcasts many foreign sports. WSG’s large roster continues with more than 300 partners. It plans on growing its business in Asia in order to focus and expand in such fields. Its strengths are that it’s branch within Asia is very developed since it is originally based there. This means it has first-hand knowledge of local business and sporting cultures, languages and customs, which is an advantage IMG does not have. Also, unlike IMG, WSG only focuses on sports. This allows for WSG to have more direct focus and potentially penetrate the sports field quicker and more strategically than IMG can. On the other hand, such specialization makes it have a smaller roster than IMG, and it poses little to no threat to IMG’s fields, such as fashion and media. Overall, WSG is a large company well

  10  

established throughout Asia, and claims to be the world’s fastest growing and potentially largest sports market. ANALYSIS SWOT Analysis

With the comprehensive research provided above, an accurate SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis has been finalized for IMG.

Strengths

IMG is an extremely reputable, established, and well-financed company. As stated above, it is a company with over 3,500 employees in more than 25 countries. The fact that William Morris Endeavor and Silver Lake Partners recently acquired it provides further funds and security in assets and capital resources (Sweney). Due to its strong background, IMG is in a leading position where it can venture internationally and explore China’s economic territory with less prospect of suffering. IMG has already established multiple headquarters within China, including two offices in Beijing, one in Shanghai, and one in Hong Kong (“IMG Office Locations”). IMG has also recently made excellent Chinese partnerships, including it’s recent eight year contract with CCTV, which gives the company a head start (Zhu). Therefore, IMG’s total assets of capital, credit, reputation and strong partnerships give it a clear advantage compared to other corporations. Weaknesses

As a conglomerate company with a large business portfolio, IMG includes multiple industries and services including sports, consulting, event management, media production, performances, and much more. Although the acquisition currently benefits IMG, such growth has the potential to lead to detrimental conflict. Without key organization and strong leadership, the company could lack control and focus within the industries and departments. The sheer size of the company could make IMG spread out its resources and thus drain its potential. Other competitive companies that are not as large can concentrate and direct more effort into their specific industries, which could lead them to faster and overall greater growth. Therefore, IMG needs to make sure it manages and funds its many services carefully.

Strengths Weaknesses Opportunities Threats

  11  

Opportunities There are a plethora of reasons why IMG should venture further into China. China, a

country that is currently standing with the largest GDP in the world, is ever growing in its economic and business potential. As stated above, according to BBC News and The Economic Times, the past year’s annual economic growth of 7.4% is relatively slower than China’s norm, but is not harmful to future potential. In fact, the lower percentage is nevertheless extremely high compared to other countries GDP, such as America’s 2.2% (“United States GDP”). Also, such numbers illustrate that China is also trying to make structural adjustments within it’s economy. Such statistics serve as an indicator that the Chinese government is trying to steer the country’s economy to a base that is service-oriented over industrial-oriented. Thus, there has recently been greater interest in the investment and growth in entertainment industries, such as sports and fashion. IMG should take the opportunity to build better relations with the government and continue to invest in as much market share as possible within the expansion of such areas. Examples for opportunities include IMG’s partnerships with golf, specifically the Asian Tour and HSBC Forum in Shanghai (Oakley); CCTV, where sports and entertainment channels film games, events, and promotions; and the collaboration with the upcoming Mercedes-Benz Fashion Week in Shenzhen (“Shenzhen Garment Industry”). Thus, there are many positive factors that call for IMG to take the initiative and opportunity to invest more in China. Threats

Last but not least, threats are the negative external factors that could put a business at great risk. There are two major threats that IMG should take note. First is the possibility of other competitors taking larger shares of the sports and fashion businesses. As stated above, companies such as Octagon and WSG are competitors that threaten IMG’s profit and potential in China. The other major threat is more indirect and secondary. With the enormous power it holds, the Chinese government has the potential to block certain market opportunities and sales profits. For example, the recent blockage of social media, such as Facebook and Instagram, resulted in many companies not being able to advertise or communicate to certain target markets. IMG should thus also take note that certain social media channels, such as Facebook and Instagram, should not be heavily relied channels of advertisings. This blockage of social media is one example of what the government can do to potentially threaten IMG’s business sales and profits. Alongside this, certain departments in the Chinese government are under-resourced and have less trained employees working in certain departments. Approval for certain products and services in industries could be more difficult due to the fact that the government has under-funded departments. Marketing Objectives This report segments IMG’s marketing objectives into (1) A broad description, listed by the 4P’s and (2) Detailed explanations of expectations within IMG’s three main marketing endeavors.

  12  

Marketing Objectives and the 4P’s

Product: Development of our different clients (CSL, WGC-HSBC, SGIA, etc.) into

globally respected brands and events through the organization, promotion and strategic analysis that IMG can provide. Respective to the China market, IMG’s

biggest contracts are with the CSL, SGIA and HSBC/Asian Tour for golf. For these clients, IMG provides specific services of:

strategic marketing planning, brand management, event planning, promotional services and general business consulting. These services are offered through a bevy of subdivisions in IMG such as: IMG Golf,

IMG Events and Media, IMG Joint Ventures, IMG Consulting, IMG Clients, IMG

Licensing and IMG Fashion.

Price: Most of IMG’s clients pay top prices for

services due to the nature of the objectives sought

by these firms. They seek IMG out to pay for the

resources, experience and skill IMG possesses that cannot be found amongst competitors. These prices are on an individual client basis and depend on the

level of work the client expresses the need for.

Comparable to Bain Capital and Blackstone

Group.

Place: IMG offers its services on a global basis and to both

multinational and local companies. In regards to the Chinese market, it operates where its clients are located.

Promotion: Multi-faceted marketing and advertising approaches have proven

successful in venturing the global market. IMG and its parent

company’s name act as its main marketing tool to promote

services to companies.

Marketing Objectives

Soccer Industr

y

Fashion

Industry

Golf Industr

y

  13  

Objective 1: The Fashion Industry The major goal for IMG Fashion and the IMG-Shenzhen Garment Industry Association (SGIA) joint venture is to promote Shenzhen Fashion Week (SZFW) as the prominent fashion show in China and throughout Asia. The People's Government of Shenzhen Municipality and the SGIA sought out IMG to expand and develop SZFW in hopes that IMG could leverage its resources used for other fashion shows it manages to their benefit. The Shenzhen model has its objectives based on the IMG examples of the Milan and New York Fashion Weeks. One of IMG’s main goals is to create awareness for the event through more specific channels that have proven effective in the Chinese market as compared to other methods. This includes making use of advertisements in places like taxi car entertainment systems, subway stations and on popular social media platforms like WeChat and Weibo. These efforts are being pushed mainly in major cities like Shanghai, Beijing, Hong Kong and Taipei. The overall event is at its novice stages, as its still in it’s first years, and so it is quite difficult to gauge exactly how IMG needs to change its marketing objectives in this area. The current strategy is to continue expanding consumer awareness through more marketing endeavors, eventually creating a larger market for SZFW. IMG’s overall larger objectives should be to fully adapt the Mercedes-Benz Fashion Week platform it has already instituted in other cities like Sydney, New York and Milan. In addition to marketing to consumers, it will be marketing to Chinese designers and fashion companies in order to develop the quality of content actually presented by SZFW. IMG and the SGIA strive to eventually leverage its marketing knowledge and resources to eventually establish SZFW as the most prominent and respected fashion showcase in Asia. Objective 2: The Golf Industry IMG’s current marketing objectives is to promote golf overall as a sport in order to develop the market for golf tournaments and championships in Asia. One example of this is the WGC-HSBC Champions, which was held this past November in Shanghai. This event, which is sponsored by the International Federation of PGA Tours, is the most prominent golf event in all of Asia and stands as the premier Asian golfing event for PGA golfers (PGA). In addition to this, IMG manages the HSBC Golf Business Forum, which was held for the first time in Shanghai in November 2014. According to suggestions by the China Golf Association, with which IMG is partnered with, IMG’s marketing objectives are to continue to host major golf tournaments and events throughout China. In terms of execution, IMG will accomplish these goals in the future through acquisition of major sponsorships like HSBC and collaboration with major golf tournament associations like the PGA and the Asian Tour. Objective 3: The Soccer Industry IMG is in partnership with the Chinese Football Association Super League, also referred to as CSL. IMG was originally brought in by the CSL with the goal to manage and develop the league to become the premier soccer league in China and Asia. According to the ten-year contract partnership between IMG and the CSL, IMG has the rights to assist the 16 soccer club teams in organization of stadiums, ticket sales, talent recruitment,

  14  

organization strategy and exclusive broadcasting rights to the games through its secondary partnership with CCTV. IMG's current marketing objectives for the CSL include partnering with major league sponsors in order to draw consumers and fans to the league. The most recent major sponsorship is with Ford, which is contracted through 2017 to be the CSL's official automobile sponsor. Through IMG's partnership with CCTV, IMG has exclusive rights to orchestrate broadcasting rights of the soccer games. Another major recent endeavor by the IMG-CSL partnership is with it's recent partnership with FC Barcelona football club. The famous and successful club was brought in to help build the CSL's credibility as a prominent football league. IMG’s future marketing objectives thus include continuing these partnerships, which in turn will create a larger market amongst Chinese soccer fans. Marketing ROI and Controls

IMG's marketing return on investment is based off of it's past performance in other countries throughout Asia and China. IMG was brought in by multiple different associations and groups in hopes to develop its businesses and markets based off of IMG's proven global success in that market. The gauging of IMG's marketing accomplishments and achievement of goals reveals its repeated success in landing major partnerships and contracts with large firms, such as HSBC with the Asian tour and golf, Ford with CSL and soccer, and Shenzhen Fashion Week and the fashion industry. The controls to quantitatively measure the marketing ROI of IMG's efforts include data explaining increase in soccer and golf events, attendance and popularity of fashion events, number of big stars moving into golf tournaments, soccer clubs and fashion shows and the number of viewers tuning into CCTV and watching events. The true ROI for IMG in China is harder to measure due to the fact that China has such a rapidly growing economy, and the major consuming class is this generation, a group which is starting to acquire the expendable wealth to be able to spend on services such as golf, soccer and fashion events. As China's population acquires more wealth and tastes change with cultural influences, different industries will begin to explode more and more. Control and measuring of marketing ROI is further complicated because of the general lack of competitors to IMG's China endeavors. IMG has a considerable grasp on the development of soccer in China, the creation/promotion/expansion of golf in China/Asia, and the development of the Chinese fashion industry as a distinct, globally respected firms in their respected industry.

Core Strategy After researching, gathering and analyzing data about IMG, a core strategy has been devised for the company:

The groundwork for IMG’s overall plan has been established. IMG’s target audiences include both B2B consumers (such as CCTV and Shenzhen Garment Industry), as well as B2C consumers (such as Mainland Chinese citizens and expats living in China). IMG has the resources and managerial support for investment in China, specifically from it’s parent

  15  

organizations William Morris Endeavors and Silver Lake Partners. IMG also accepts and understands the potential weaknesses and threats that can ensue from such ventures.

With these factors in mind, it can be seen that the core strategy mentioned above can help lead to IMG’s overall success and establish its mission. The first component of the strategy emphasizes on how, rather than looking for new businesses or industries to acquire, IMG should focus on its current investments and obtain large shares within such respectable industries. It should be kept in mind that IMG already has strong presence and relations with its B2B customers. The content below is a brief reminder of business tactics and strategies that IMG presumably follows.

IMG needs to hone its business style to fit China’s. First, IMG should learn and respect China’s history and business culture. The importance of nonverbal communication, filial piety, and guanxi are cultural components that play a key role when working in China (“Chinese Communication Styles”). Second, IMG needs to put continual effort and time into the newfound Chinese partnerships they have made. Building mutual trust and relations is something that IMG employers need to learn as they work more and more with Chinese companies and the government. The relationships with CCTV and Shenzhen Garment Industry, for example, need to cultivate and solidify in order to sustain long-term growth and stability. Lastly, IMG needs to make adjustable plans that can adapt to the ever-changing Chinese markets. Unlike stable, mature market economies such as the U.S., China’s market is constantly shifting and changing. Thus, IMG needs to make dynamic plans that are flexible. There needs to be constant reviewing and analysis of business satisfaction and feedback channels. As mentioned earlier, research has illustrated that IMG has been relatively successful in establishing and building relationships with its partnerships and business consumers. However, it needs to work on integrating with actual consumer audiences themselves. Thus, IMG should create stronger presence within customer communities and build relationships with such consumers. As Armstrong and Kotler mention, customer-engagement marketing helps “make a brand a meaningful part of a consumers’ conversations and lives” by “shaping brand conversations, experiences, and community.” Such marketing tactics would help make IMG stand out and successfully acquire greater market share amongst the plethora of other competing companies. Customer-engagement marketing is not only what makes a company memorable, but it also leaves consumers and partners with positive, enduring impressions about the success and reputation of the company.

In order to build such customer-engagement marketing techniques, IMG should look further into developing online, social, and mobile channels. Some first steps to take include setting clear objectives, targeting customer accounts, balancing communication channels and mixes and implementing a strong management team and program (Schwartz). The following are some specific examples of how IMG could create stronger B2C relations:

  16  

IMG’s online website

One specific example that IMG could start off to create customer-engagement would be with its online homepage. Although the site has basic content, it could be more interactive and engaging for audiences. The website could be remodeled with the following: more user-friendly, modern layout; powerful storytelling language with larger fonts and colors; more prominent tabs and labels to entice viewers to click through; more information about events IMG is hosting; famous personality interviews and representatives with IMG; news updates and blog posts; and much more. Social Media

Beyond IMG’s website, however, is the power of social media. IMG should consider creating Chinese social media accounts such as WeChat and Weibo. Notifications, news events and public advertisements pop up daily throughout the dashboards of the millions of Chinese WeChat users. IMG could create specific accounts for fashion, golf and soccer, allowing target audiences to play mini games, receive digital coupons, provide online WeChat shops and offer VIP packages and promotions. These two social media services can play significant contributions to building IMG’s overall customer loyalty and equity. If IMG makes these accounts, it would garner more devoted customers and followers. It would also help IMG to collect information, opinions and personalized customer feedback about its services. Social media is the ultimate way to engage and directly formulate communication with consumers. Mobile Applications

Millions of Chinese use their mobile devices to surf the web, look at apps and connect with other communities and news (Lau). Mobile apps are rising in popularity for media and advertising channels, and IMG should also collaborate with its partners to make creative apps. For example, IMG could create a mobile soccer app hosted by the Chinese Soccer League. This app could be a soccer game that users could play, with extra information about actual upcoming soccer games and promotional discounts. Users would then see how IMG is the affiliate partner that helped to create the app. Thus, people using such apps would see how IMG is connected to the sports and fashion industries, increasing IMG’s overall brand awareness. Overall Budget

Because there is limited access to IMG’s revenue data, it is difficult to determine an estimated budget for IMG’s current marketing strategy. Additionally, the types of marketing ventures IMG pursues are not set priced products, like traditional advertisements; rather, they are more negotiable expenditures that do not have set

Online Website Social Media Mobile Applications

  17  

precedents. An example of this would be IMG securing David Beckham as CSL’s global ambassador. Prior to this contract, this type of situation has never occurred.

With this in mind, any projected future budget stated would be inaccurate. For this reason, this report will withhold from providing tangible numbers until IMG chooses to provide such quantitative data. However, IMG should allot more capital to expand its marketing endeavors in future planning.

Conclusion

In conclusive review of our findings, it is evident that IMG has the absolute advantage in successfully establishing itself within the Chinese markets it chooses to operate within. The comprehensive analysis of IMG’s current and projected marketing plan illustrates the potential opportunities it has within the expanding economy. IMG is already established as a successful and globally reputable firm, and through the recommendations synthesized from the research gathered, IMG is poised for an even brighter future in China.

We sincerely hope this report has been able to inform and document IMG with solid, well-researched information and in-depth analysis. If IMG has any further inquiries, please contact us. Thank you for your time and cooperation.

  18  

Bibliography

Apelgren, Eric. "Report in International Travel to China." (n.d.): n. pag. Mile. Ethekwini, 22 Nov. 2012. Web. 28 Mar. 2015.

Armstrong, Gary, and Philip Kotler. Marketing: An Introduction. Harlow, England: Pearson Education, 2015. Print.

"Background To Business in China." World Business Culture. N.p., n.d. Web. 29 Mar. 2015. Cain, Robert. "How to Be Censored in China: A Brief Filmmaking Guide."Indiewire. N.p., 30.

Nov. 2011. Web. 15 Mar. 2015. "China's Growth Slows to Weakest in 24 Years." BBC News. BBC, 20 Jan. 2015. Web. 26

Mar. 2015. "China's Slowdown: From a Very Big Base." The Economist. The Economist Newspaper,

20 Jan. 2015. Web. 26 Mar. 2015. CNTV. "Shenzhen Brands Make Debut at NY Fashion Week." Shenzhen Brands Make

Debut at NY Fashion Week. CNTV, 13 Sept. 2013. Web. 28 Mar. 2015. Cohan, William D. "Ari Emanuel's WME-IMG Merger: The Possible Financial Troubles."

Vanity Fair. Custer, C. "WeChat Ads Are Live, and Big Foreign Brands Are in on the Ground Floor."

Tech in Asia RSS. N.p., 26 Jan. 2015. Web. 28 Mar. 2015. Duggan, Jennifer. "China's Polluters to Face Large Fines under Law Change." The

guardian. N.p., 25 Apr. 2014. Web. 14 Mar. 2015. "Golfers." International Management Group Golf. IMG, n.d. Web. 27 Mar. 2015. "Golf Business Forum." Golf Business Forum. N.p., n.d. Web. 28 Mar. 2015. IMG Golf. "HSBC Women's Champions." IMG Golf. N.p., n.d. Web. 28 Mar. 2015. "IMG Golf Course Services." International Management Group. IMG, n.d. Web. 27 Mar.

2015. IMG. "WGC-HSBC Champions." IMG Golf. IMG Golf, n.d. Web. 28 Mar. 2015. Kaiman, Jonathan. "Match-fixing and Bribery in Chinese Football Are Endemic, Sport

Insiders Say." The Guardian. N.p., 20 Feb. 2013. Web. 20 Mar. 2015. Lau, Adaline. "Magna Global: 12 Facts on Digital Advertising in China." ClickZ. N.p., 16

Feb. 2014. Web. 26 Mar. 2015. McCann, Dennis. "Golf Advertisers Follow the Money (and the Demographics)." Dennis

McCann Dennis McCann. N.p., 28 Mar. 2015. Web. 28 Mar. 2015. Millward, Steven. "WeChat Now Has 500 Million Monthly Active Users." Tech in Asia. N.p.,

18 Mar. 2015. Web. 26 Mar. 2015. "MLS, US Soccer Partner with IMG to Market Media Rights until 2022."MLS Soccer. MLS,

22 Oct. 2014. Web. 29 Mar. 2015. Oakley, Nicholas. "2015 HSBC Golf Business Forum to Take Place in Shanghai." IMG Golf.

IMG, 27 Nov. 2014. Web. 26 Mar. 2015. "Octagon." LinkedIn. N.p., n.d. Web. "Office Locations." International Management Group. IMG, n.d. Web. 26 Mar. 2015.

  19  

Ozanian, Mike. "IMG Sold For $2.3 Billion To William Morris Endeavor And Silver Lake Partners." Forbes. N.p., 18 Dec. 2013. Web. 29 Mar. 2015.

PGA Tour. "PGA Tour to Partner with China Golf Association on New Tour in China." PGA.com. PGA Tour, 04 Nov. 2013. Web. 28 Mar. 2015.

"Pollution Disrupts Sports, Travel in China." The Sydney Morning Herald, 6 Oct. 2013. Web. 14 Mar. 2015.

Schwartz, Julie. "Six Steps to Establishing a Formal Customer Engagement Program." ITSMA: Marketing Insight. N.p., n.d. Web. 29 Mar. 2015.

"Shenzhen Garment Industry Association Partners with IMG to Expand Shenzhen Fashion Week." International Management Group. IMG, 29 Jan. 2015. Web. 26 Mar. 2015.

Silver Lake Partners, LLC. "Silver Lake." Silver Lake. N.p., n.d. Web. 28 Mar. 2015. S.R. "From a Very Big Base." The Economist. The Economist Newspaper, 20 Jan. 2015.

Web. 16 Mar. 2015. Sweney, Mark. "William Morris Endeavour and Silver Lake Buy IMG Worldwide for $2.3bn."

The Guardian. The Guardian, 18 Dec. 2013. Web. 26 Mar. 2015. Thorton, Grant. "Entering China: Opportunities, Structure and Strategy."FDIntelligence.

Grant Thorton, 13 Mar. 2012. Web. 29 Mar. 2015."United States GDP Growth Rate." Trading Economics. N.p., n.d. Web. 29 Mar. 2015.

Vanity FairNews, Mar. 2015. Web. 28 Mar. 2015. Weihong, Tang. "Weibo Microblogs – A Western Format with New Chinese Implications."

Thinking Chinese. N.p., n.d. Web. 26 Mar. 2015. "What We Do." World Sport Group. N.p., n.d. Web. 27 Mar. 2015. Yardley, Jim. "Cities Near Beijing Close Factories to Improve Air for Olympics." The New

York Times. The New York Times, 06 July 2008. Web. 14 Mar. 2015. Zhu, Adam. "China - CCTV IMG." International Management Group. IMG, n.d. Web. 26

Mar. 2015.