TIME 2011THE INTERNATIONAL MARKETING EXPEDITION

INTERNATIONAL MARKET RESEARCH FOR DUTCH COMPANIES

Ni Hao China

International tailor-mademarket research

The International Marketing Expedition (TIME) is an initiative of Asset | Marketing, in cooperation with Tilburg University. The objective of TIME is to perform international marketing research for Dutch companies in an appealing foreign market. The research will be conducted by talented, senior academic students, with special interest in marketing. The students are selected exclusively for this project.In the past, successful projects have been performed in countries like Japan,

Poland, Turkey, China, India, Brazil, South Africa, and most recent the United Arab Emirates. In 2011 TIME goes for a new challenge in China.Especially in these times of economic decline, it is important to always search for new possibilities, beyond the existing work field of the company. Without a big time effort by you as entrepreneur and at cost price, TIME can provide valuable information on the specific possibilities for your company in China.

The formula of TIME is both simple as unique. As an entrepreneur you will get the chance to gather valuable information about a country somewhere in the world that is economically booming. On the other hand, the student gets the chance

to bring theoretical knowledge that is gathered in previous academic years into practice. TIME brings business and students together in a ‘win-win' situation for the participating parties.

CONCEPT

The rich history has proven the success of the TIME concept. The experiences of companies who participated in the past leave no doubt about it, international market research in cooperation with TIME leads to enlightening insights that you will benefit from in the entry of a new market.

TIME-destinations in the pastTIME-destinations in the pastTIME-destinations in the past2010 United Arab

EmiratesInvestigate Emirates

2009 South Africa Ondersoek in die Toekoms

2008 Brazil A BRIC building the future

2007 India A billion opportunities to explore

2006 China Breaking through the wall

2005 Turkey Turkey, the next European star?

2004 China Looking over the wall

2003 India Passage to a billion opportunities

2000 South Africa Voetstappe in die Toekoms

1998 Sweden Succeeding in Sweden

1997 Canada The Canadian Connection

1995 Poland Poland, the Perfect oPPortunity

1993 Mexico A World to explore

1992 Portugal Portugal, promise for the Future

1991 Japan Japan; Threats or opportunities

1988 England

HISTORY

Capital: BeijingSurface: 9,596,961 km²Population: 1,336,718,015 (2011 estimate)Population Growth: 0,493 % (2011 estimate)Trade Languages: Standard Chinese or Mandarin, EnglishTime zone: UTC +08:00Religion: Buddhism, Taoism

Gross domestic product: 9.872 trillion dollarGDP per capita: 7,400 dollarGDP growth: 10,3%Currency: Renminbi Yuan (RMB)Value RMB: 1 US dollar is 6.7852 RMB

Total import in China: 1.307 trillion dollarTotal export from China: 1.506 trillion dollar

ABOUT CHINA

ECONOMIC FACTS

TRADE

General informationabout China

General information continuedabout China

The economy in China has changed a lot over the past forty years. China set sail to a new economic direction, based on the encouragement of foreign investments. Before, the Chinese economy was aiming to minimize contact with foreign investors. This new policy caused trade with China to experience tremendous growth since the middle of the nineties.Agriculture has been the most important sector in the Chinese economy for years. Despite agriculture still being a great contributor to the Chinese economy, nowadays the most important sector is the industry. The machine industry is taking over the traditional textile industry. Also the electronics sector is booming, China’s main export products are electronic goods, like computers

In 2009, despite the economic crisis, the Chinese economy still experienced a growth of 9.1%. The real GDP of 2010 is expected to grow to 9.9% (Source: EVD).Analysts expect China to have passed the US in the next 10 years as biggest economy on the planet.

At this time China is at number 1 in the ‘Global Retail Development Index’. Conclusively, China is at the moment the most attractive country for companies to settle in.

The Chinese economy is growing at a high rate. At the moment, it is the second largest economy in the world and is one of the most attractive nations worldwide for direct foreign investments. On top of this, it is the biggest consumer market on the planet with a continuously growing purchasing power and a large labor force. Because of a continuously growing population, the consumption and thus demand for consumer goods keeps growing.

Attractive sectors for Dutch companies going to China could be:- Logistics- Infrastructure- Creative industry- ICT-outsourcing- Automobile industry- Renewable energy sources and environment

-Machinery-Shipbuilding

ECONOMY

ADVANTAGES

What can TIME do for you?Some references from past years

In the years 2003, 2004 and 2005 Royal AGIO Cigars participated in the TIME project in India, China and Turkey. The fact that we participated multiple years indicates that the cooperation with TIME, the university and the students was very positive. Each of the research projects have given Royal AGIO Cigars a good insight in the market, the market players and the culture which has helped us to eventually determine the strategy for these areas. Since 2004 we have been active in the market of India. Because of the research in China, we have found some very useful contacts for the future and the research in Turkey has provided us with new ideas to strengthen our position in that market.Research by students, under professional supervision by the university with an attractive price tag is for Royal AGIO Cigars a good and strong combination.

I have been approached for the TIME project mid 2006. Because I had been in China in 2005, I was not interested in selling my products in China. However, I was interested in letting my products be produced in China (parts and eventual complete machinery). This approach also fits the TIME concept.Consequently, together with a student, I have composed a list of criteria potential

trade partners have to meet. This varied from demands in the machines available, location (because of transport and visits) but also: a contact person within the company that speaks decent English (which is not a certainty in China).The student has visited about 20 companies in the region around Shanghai and the province Guangzho. The majority of these 20 companies provided very low quality when it came to both factory equipment and products. Eventually, three companies that looked good and made high quality products remained.Of each company, a report has been made in which the whole list of criteria was evaluated. On top of this, a photo report has been made, because ‘one picture paints a 1000 words’. These have been e-mailed to us throughout the trip.For me, the mission was successful in the sense that I will visit the remaining companies myself. This will relatively cost me a little amount of time, differing from several days to a week.This is why I think the costs are relatively low. If I had gone to China for a month this would have had undoubtedly cost me more. Besides, I just cannot leave my company for a month.Because of this, I can strongly recommend the TIME project. One more advice: make sure the student’s research is prepared well. A high amount of conversations about the products my company produces have in my opinion made sure that the researcher truly had a feeling for my company and products and thus also was well informed about technical facts and the subject matter.

Marcel MichelsGeneral Sales Manager Export

Royal AGIO Cigars

Jan JegeringsManaging director

Jegerings.com

The research trip is preceded by a thorough desk research of three months. In these months the field research will be prepared. The students who will perform the research will be selected on the basis of motivation, experience and skills. Participation in TIME is only available for senior students with an affinity for marketing. Addit ional ly, the entire process is accompanied by members of the Department of Marketing from Tilburg University, which guarantees an academic level in both the research and reporting phase.

Every research is custom-made. In consultation with the client, TIME and the supervisors of the Department of Marketing a research proposal will be composed.

Because of the professional support from members of the Depar tment o f Marketing from Tilburg University, TIME can perform the research independently of the company. The company itself can decide the degree of effort to be made in the support and guidance of the research. Consequently, the t ime investment needed is minimal.

T IME i s pa r t o f a non-p ro f i t organization. Since TIME is not profit oriented, the investigations are done at cost price. The research costs can vary wi th the in tens i ty of the assignment agreed on. Still, it is a fraction of the price which, for example, consultancy firms charge for similar services.

Because of intensive and professional support by the Marketing Department of Tilburg University, TIME is able to conduct a great amount of research project in numerous sectors. Examples of research possibilities are a branche description, supplier selection, market analysis and a network analysis. For more information on research fields please visit www.time2011.nl

T IME i s pa r t o f a non-p ro f i t organization and because of this does not have the goal to make profit. The research will be conducted against the cost price. The standard price for part ic ipat ion in TIME 2011 for companies is set to be 5.500 euro (excl. BTW). However, the research costs may very due to the intensity of the assignment.

Why TIME? and Costs

HIGH QUALITY

TAILOR-MADE

LITTLE TIME

LOW COST

POSSIBILITIES

COSTS

Students are ass igned to each company and the preliminary research will be started. This period will consist of a thorough desk research by the student to investigate the market and industry within which the company operates. At the same time interesting contacts in China will be mapped. The preliminary research will be completed with an interim report, which will be presented to the company. In close cooperation with the members of the Department of Marketing, the final research proposals are made up, as a base for the field research.

In October 2011 the students will, together with the committee and the supervisors from the Market ing Department, leave to China where the field research of approximately four weeks will be conducted. During this field research the students will visit s e v e r a l c om p a n i e s , b r a n c h e o rgan i za t i ons and embass i es/consulates. The specific content of the research i s dependent on the p rev ious ly composed research proposal.

A f te r r e tu rn i ng f rom Ch i na t he completion phase will take place. This is the last phase of the project. The results of the field research will be reported to the company. This phase is also supervised by members of the Marketing Department to ensure an academic level.

- High quality market research against cost price.- Every research is tailor-made. In consultation with TIME and the company the research proposal will be composed.- China is the second largest economy of the world and is one of the most attractive countries worldwide for direct foreign investments.- An economy that keeps growing.-The presence of several interesting market sectors for Dutch companies.

JULY - SEPTEMBER2011

OCTOBER2011

NOVEMBER - JANUARY2011 - 2012

Time schedule and summary

SUMMARY

Tilburg University is a renowned university in Europe with more than 10.000 students. The scientific research and education of Tilburg University concentrates on the field of Economics and Business, Law, Social Sciences, Communication, Culture, Philosophy, Religion and Theology. The high quality of the scientific research grants Tilburg University a high position on international rankings.The Marketing Department is part of the Faculty Economics and Business. This faculty is ranked high through the whole of Europe and is one of the best when it comes to research. (Source: European Economic Reviews)Website: www.uvt.nl

Asset | Marketing is a study association within the Faculty for Economics and Business. Asset | Marketing is known as a very active association for students with a special interest in marketing and market research. With about 600 members it belongs to one of the biggest study associations within Tilburg University. The goal of Asset | Marketing is to narrow the gap between marketing theory and practice. As a part of this, TIME was founded in 1988.The TIME 2011 committee, responsible for the organization of the project this year, will be supported and monitored by the foundation TIME. This foundation consists of individuals that have experience with previous editions of TIME, members of the Marketing Department and board members of Asset | Marketing.www.asset-marketing.nl

SupervisionTilburg University and Department of Marketing

TILBURG UNIVERSITY

DEPARTMENT OF MARKETING

Tilburg UniversityAsset | MarketingC.o. The International Marketing ExpeditionRoom E102P.B. 905135000 LE Tilburg

T: 013-4663044F: 013-4638078E: time@asset-marketing.nl

CONTACT INFORMATION

WWW.TIME2011.NL

ASSET Marketing