Discuss about the Marketing for Chinese Organizations.
Alibaba is one of the most recognized Chinese organizations that have achieved worldwide recognition as an e-commerce organization. However, despite the organizational success, the company has witnessed in the past, over the last 3 years, the organization had been facing a steady decline in the revenue growth (The Sydney Morning Herald, 2016). In order to combat the situation, the organization had adopted one of the most effective promotional strategies that have in fact influenced the consumer behavior to a considerable extent.
The e-commerce giant has successfully roped in Hollywood stars such as Scarlett Johansson, and sports celebrities such as David Beckham, that have helped the organization boost the sale of its marketed products. The management authority of the organization has rightly observed that the traditional method of promoting the products via digital or virtual media is not sufficient for a large and already recognized organization like Alibaba. It was anyway a well-known brand, and hence what the organization required to do, was to gain back the confidence of the consumers. Alibaba started promoting its products and services by connecting the same with the celebrities (Hollensen and Schimmelpfennig 2013). The celebrity endorsing was done via printed and digital media both. Again, the organization also hired the celebrities to promote the products in the Public Relations events as well. This increased the credibility of the brand. The purchasing behavior of the consumers changed overnight, as they wanted to avail the service of the very same organization, the service of which is being apparently availed by the celebrities. Celebrity endorsing method, though an expensive advertising tool, is one of the most effective promotional strategies adopted by Alibaba. The consumers do not necessarily feel attracted to a brand, but they want to be the part of the brand, as they wish to belong to the same group to which their favorite celebrities belong.
Hollensen, S. and Schimmelpfennig, C., 2013. Selection of celebrity endorsers: A case approach to developing an endorser selection process model. Marketing Intelligence & Planning, 31(1), pp.88-102.
The Sydney Morning Herald, 2016. Alibaba posts $1 billion in sales in five minutes on Singles' Day. [online] Available at: <https://www.smh.com.au/business/retail/alibaba-records-1-billion-in-sales-in-five-minutes-on-singles-day-20161110-gsmuto.html> [Accessed 9 Dec. 2016].