Marketing - Essay Example

More regulations in the industry are expected in order to meet the high demand for quality and safety in society. . Industry Domain . Macro-Level of Industry Domain 0 The Porter’s Five Forces Analysis that determine Industry Attractiveness 1 . Threat of entry- Threat of entry remains comparatively low, despite the incursion of Traditional Chinese herbal markets and biotechnology firms. Starting a Herbal Tea firm is not nearly as simple as say, starting a restaurant.

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Researches and setting up of manufacturing plant is required to keep up with the qualities and many special herbal tea cooking know are in trade secret within the industry. 2. Supplier Power – Healthiness is using a Closed Loop Supply Chain where they get the raw material directly from the farmers, and supply is stable and sustainable, therefore the supplier power is relatively low. . Buyer Power – Hong Kong people is towards health and nutrition. Consumers are increasingly eager to spend more so as to stay healthy. The buyer power is high. 4.

Threat of substitutes – As people are always looking for more convenient packaging, sometimes they might trade off for the freshness of healthy drinks. There are some substitutes coming up in the market, like Sense Cools (HZ’S), where consumers could drink right away simply by adding water. However, normally these substitutes only serve one function- mainly cooling of inner body heat. Therefore, the threat of substitutes is normal. 5. Competitive rivalry – Healthiness had direct competitors as like Hung Book Tong and the Workshop’s. The competitive rivalry is quite high..

Micro Level of Industry Domain Sustainable Advantage 0 According to Canticles, the health drinks market has seen double-digit growth in recent years, with sales up 14 per cent in the first 10 months of this year compared with the same period last year. . Team Domain . The mission, personal aspirations and risk propensity of entrepreneurs 0 Mission Ms. Jenny Eng, the Founder and CEO of Healthiness, is certain about her mission: “Blessing for a healthy world! She keens on building a company with modernizing ETC into daily lifestyle that easy and convenience to approach.

Her clear sense of purpose helped her focus her energies. 0 Personal aspirations The founder of Healthiness – Jenny Eng has a strong vision and meaningful story of the company start up 25 years ago, which lead her become the personal aspiration and role model in ethical leadership of the company. 0 Risk propensity The founder is willing repeatedly take risks to achieve her goal, the obvious ones include money. Indeed, Healthiness is a SEEM size company with limited shareholders involved in the business..

Ability to execute on Critical Success Factors 0 Product Leadership o Creativity, to recognize and embrace ideas that may originate outside the company, such as Waning Juice Product and Steamed Pork Dumplings with Discover opposite and Wolverines. O Optimize business processes for speed, in order to bring these creative ideas to market quickly. Such as selling product that have minimum amount of packaging and sell of healthy food and not Junk food. O Effective, efficient and fair trade value-chain and mutually beneficial relationship, from suppliers need liability, quality and on-time delivery at an affordable price..

Connectedness up, down, across value chain Healthiness follow the closed loop value chain model which means from sourcing ingredients, manufacturing the products, marketing the products and selling it through it owns retail networks in MAT stations. Section analyze brand differentiation and positioning . Market Segmentation Based on the market opportunities analyzed in earlier section, below are the market segmentation that we would suggest Healthiness to follow: 0 Age : 16-60 We would suggest Healthiness to target mass so as to acquire the current market hat are occupied by sugar-dominant soft drinks in long run.

According to the 2011 Population Census, people aged 16- 60 has already taken up around 69. 3% of total Hong Kong population. 0 Gender: 70% Female 30% Male Female in general pays more attention in healthiness than male. They are more actively in seeking new products in maintaining their body health. Nevertheless, female is more dominant in selecting in daily consumption items, including food and drinks. Therefore, acquiring the female market could also create an influence to the more effort in targeting the female’s market. 0 Income and Education: Middle and

Upper income with secondary education These consumers are more willing to spend more to have better quality of food and drinks. Their education level would also affect their belief in drinking healthy drinks to enhance their body balance. 0 Occupation: Office workers, busy urbanites, housewives Consumers with these occupations are generally more health conscious while they have busy lifestyle that they have to seek for quick and convenient way to maintain their body health. For housewives, although they could prepare healthy drinks at home, they have big control on family’s daily consumption.

The product line should also put housewives into part of their target so as to acquire more market share. Consumers tend to compare products with close alternatives in the market. Therefore, the differentiation, an important factor that distinguishes one item from another gets the consumers’ attention. A meaningful differentiation could provide a brand with a meaning that is likely to affect the consumers’ brand choice. In this section, we would compare Healthiness with its close competitors so as to bring out its brand differentiation and find out its attractiveness to the consumers.

Healthiness Hung Book Tong Hoi Tin Tong Variety of goods Approximately 55 products Including fresh healthy drinks, healthy herbal tea, soups, sweet soups, herbal Jellies, packed snacks (fair trade products from other parties) Approximately 100 products Including herbal Jellies, healthy herbal tea, soups, preservative-free healthy drinks, snacks, rice and noodles. Approximately 30 products Including herbal Jellies, herbal tea, and some organic products. Price Ranging from $16- $50 Ranging from $10- $50 Ranging from $16- $100 Convenience 22 stores Mostly located near MAT exits 85 stores

Located in three main areas- MAT exits, housing estates and financial centers 85 stores Mainly located in housing estates Environment High end and polished simple design with back-to-nature style Like convenience store. Dine in. More traditional design like old herbal tea shops. Availability of information Have educational booklet on Chinese Medicine available in-store, relatively poor design online for websites and social media All information are put online that consumers can browse for details. All information are put online that consumers can browse for details.

Ingredients (appendix II) Genuine ingredients and the top in the market as proven by different researches Ingredients that normally rank second in the market however the proportion is Just half of Healthiness Rank lowest among the three with less than one third of genuine ingredients compared with Healthiness University Market Research Recognition (appendix Ill) Ranked No 1 on Chinese University of HACK, Master of Marketing Department Master Program Consumer Survey Report based on 2011, stated that over 36% interviewees chose Healthiness as their No. “Ideal Health Beverage,” and over 14% interviewees chose Healthiness as their “Ideal Herbal Tea” brand. Ranked form the report that only 30% interviewees chose Healthiness as their No. L “Ideal Health Beverage,” and only 10% interviewees chose Healthiness as their “Ideal Herbal Tea” brand Data not available Formulation Strong R&D and keep the food menu always up-to-date.

Some formulation are only available in Healthiness due to the source of ingredients Seasonal products will be provided Traditional store however proven not to be as effective as its competitors Place of Production Hong Kong China Staff Training Provide not only soft skills training to staff, Chinese medicine training are also included Very systematic training provided to staff on soft skills and Chinese medicine N/A Consultation Free Chinese doctor consultation in Central store Customers loyalty Program Selling of seasonal tickets with no membership scheme Very well established customers loyalty program named Homemade Club Selling of seasonal tickets with no membership scheme No food additives and preservative free.

Drinks and Jellies are fresh on shelf with Just 7-day shelf life Some products are preservative free Promotion Only in-store promotion Very active promotion, line up TV shows, sponsor different activities and co-brand tit different artists Very famous spokesperson representing the brand and promote in TV ad With an online survey conducted in August 2013, the 50 interviewees reverted that they would focus on the attributes, named ingredients, effectiveness, price, convenience and availability of information while buying these healthy drinks/ products. Based on these 5 attributes, the below value curves have been illustrated for these 3 brands: High Fig 1 . Value Curves for Healthiness, Hung Book tong and Hoi Tin Tong Low With the value curves above, Healthiness have its value in ingredients and effectiveness where these 2 attributes correspond closely to each other.

With Healthiness strong research and development, they could strengthen and enhance their effectiveness of products compared with its competitors. Trading off the convenience, Healthiness indeed shows higher dedication of the products they produced. Given that these products are selling at similar prices, consumers tend to choose food/drink with higher quality in terms of genuine ingredients and effectiveness which are proven by different professional bodies. For availability of information, Healthiness can learn from its counterparts by spending more efforts y putting its existing offline publications online and promote through different channels that we would illustrate more in recommendations part.

To conclude, Healthiness should brand itself with the below highlighted differences with its competitors so consumers could tell the meaningful differences: Genuine ingredients from stable and direct source from farmers to ensure food quality and safety Strong research and development that always ready to develop effective and new formulations that fits consumer’s needs Healthiness provides free in-store medical consultation that consumers could maximize the effectiveness of the healthy rinks/food Through the improvements of information transparency, consumers could learn more about Chinese medicine through the Healthiness platform both online and offline. Healthiness could eventually brand itself as the Chinese medicine education most available and reliable source. Healthiness UP Marketing Strategy and Program Healthiness has focused on providing convenience goods as like Chinese Health Drinks and the finest quality to customers. With the growing product range, HOW offer more than 150 products under the HOW brand name, as well as over 1,000 different types of Chinese herbs in manufacture. HOW products cater to the lifestyle and health care needs of all ages.

They draw on traditional knowledge and translate it into innovative products to meet consumers’ changing lifestyles and based for different needs, providing them with health products. The role of the HOW marketing function to meet the needs of its customers, HOW seeks a distinctive marketing mix. Their marketing mix for Health Drink is based around. This is often referred to as the ups. It involves focusing on: 0 Product – the product (or service) that the customer obtains 0 Price – how much the customer pays for the product Place – how the product is distributed to the customer 0 Promotion – how the customer is found and persuaded to buy the product Section 3. 1 .

IA Distinctive Product 0 Chinese Medicinal Natural Nourishing Many people find benefits of Health Drinks when they are trying to lose weight. There are health drinks that can help to curb the body appetite and help the body to not retain water. Such as Healthiness’ Hawthorn Tea with Rose find that to dramatically to help people who are trying to lose weight. This is a healthy alternative to other diets. There are many other diet regimens that can cause mage to the body, but health drinks as a part of a person’ every day intake of fluid will help to maintain a slim body. 0 Fresh Other benefits of Healthiness Health Drinks can be the medicinal effect on the body organs.

Organic Black Soya Milk, for instance, can help the body to remove damaging toxins that accumulate in the kidney. Drinking Organic Black Soya Milk regularly can aid the body in repairing the kidney as well as assisting this organ with waste and toxin removal. 0 No additive and Preservative The benefits of HOW Health Drinks has ingredient with no additive and preservative an help to rid the body of damaging toxins that create poor health. It helps the body to get rid of free radicals. It is easy to obtain as it sold in a variety of places – including retail outlets and food and drink establishments The new product named it contains 4 kinds of fiber collect from different kind of vegetable and fruits.

The functions of is the improve spleen system and reduce the absorbency after eating. It is a healthy keep fit drink, and people can drink it every day. The R&D department had considered that most people afraid of the bitter taste of health drinks, therefore they had regulated the asset into a lemon taste and more tastes are coming after. Healthiness works under a family branding strategy. HOW that use family branding ensures highly consistent quality standards for each product. They use of one brand name and the recognizable the logo make it easy for customers to find and identify the HOW products. Within the family brand, HOW markets for Chinese medicine, health soup and beverages items.

The family branding HOW uses helps the company’s management control costs by saving on new logo and brand name development costs. Healthiness of food package rely on plastic bottle of mall of environmentally insensitive materials to packaging their products for reasons that range from protection, freshness and containment to serving size, marketing considerations and compliance with government regulations. Customer-oriented Food Service retail shop The kind of health drinks that Healthiness offer are generic health drinks and they will provide a heating food service, promptly inquiries handling and fast ordering process. The Health Works sold their products at different areas are different.