This is something every expansion team faces when looking at a new market.
Most executives dread it. No fun at all. It’s like going to the dentist…they are going to pull your teeth!
Better kick that ball down field rather than sign a document bearing this information.
That’s because it isn’t a plan. C-suites treat it as a PROMISE which is why it is such a hot potato.
Whatever is written…is suddenly set in stone.
If you do too little, you get criticized for missing opportunities.
If you do too much, you get criticized for wasting company resources.
If you can’t do it, you are worthless.
Either way, it’s a classic “no win” situation.
…you are probably imagining what the hottest of all hot potatoes is?
…THE BUDGET (FOR CHINA)
But there is some good news. There is a way to build a budget so that you don’t fall off the rails.
This handy graphic shows our approach.
For mature brands, it is quite accurate despite the whims of the Chinese economy.
For newer brands to the market, markedly less so, BUT the variation in performance is often within a range of “acceptability” for most brands.
Helpful? Not? Curious to hear your thoughts.