Strategic Marketing Plan
Glenugie Peak Organics Pure Natural Honey
By Bee2 Austrian Honey
This Strategy marketing plan is a guidance for us to promot our Glenugie Peak Organics Pure Natural Honey to increase the sale amount and the brand awareness.
Tupo is a gift and premium company established from 1985, and she is developed her distribution business for 10 years, while the first product is Cricket Disposable lighter, in the mean time, she carried some FMCG - coffee and herbal tea from time to time. During the expansion of the business, Tupo set up a liaison office in Austria which links Tupo to be the distributor of the Glenugie Peak Organics Pure Natural Honey by the end of 2005.
Refer to the data research and analysis, we have adopted some research from the marketing data analysis prepare by ACNielsen which is a world's leading marketing research and information company.
Meanwhile, research data is provided by feedback of sale in trial order. In additional to the data analysis, we have conducted different analysis included environmental analysis, SWOT analysis, PLC analysis, Buying behavior and the Marketing Mix that included 4 P's (Product, Price, Place and Promotion), which help us to determine the justifications of the business.
After analysis the adopted strategy, we have conducted the discussed strategy which includes Pricing strategy, Branding strategy and promotion strategy. Thus, it helps to determine the target and focus the market in order to generate the increase in sales amount and brand awareness.
Table of Content:
Table of ContentÃ¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦p.3
2. Analysis & ResearchÃ¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦p.5
3. Product Life CycleÃ¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦p.14
4. Differentiation of ProductÃ¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦.p.15
4.1 Product LengthÃ¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦p.16
5. Strength & WeaknessÃ¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦..p.21 5.1 SWOT analysisÃ¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦p.22
6.1.1 Pricing StrategyÃ¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦.p.25
6.1.2 Promotion StrategyÃ¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦..p.26
6.1.3 Branding StrategyÃ¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦..p.27
6.2 Entrepreneurial InsightÃ¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦..p.27
6.3 Opportunistic DecisionsÃ¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦..p.27
7. Recommendation and ActionÃ¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦Ã¢ÂÂ¦.p.28
1.1. What is TUPO?
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TUPO Industrial Co., Ltd. is established in 1985, which is carrying different businesses included gift and premium sourcing service, manufacturing component for Cricket lighter and the appointed consultant agent of Prime Lite Illumination in China.
In addition to the manufacturer of the component of Cricket lighter, we have developed a new business line, which is the distributor for Cricket lighter for China, Hong Kong and Macau area from 1995 which is imported from Malaysia and Philippine (refer to web site of Swedish Match: www.swedishmatch.com).
After serve years of developing the relationship of the importer, distribution network, we have started our distribution business in different kinds of product included Fast Moving Consuming Goods, i.e. Coffee (CCC Coffee refer to www.ccccoffee.com ), Herbal Tea. Furthermore, we are being the sole agent of Glenugie Peak Organics Pure Natural Honey for Hong Kong and Asia market starting by the end 2005.
In the early 2005, TUPO is expended her business by setting up a liaison office at Austria, which included i-Port Solution Pty. Ltd. in handling all importation and Winpo Pty. Ltd. for exportation for Austria market. Because of this expansion, we have to increase our manpower from 15 staffs to 20 staffs, which included the Head office at Hong Kong, liaison office in Austria and Dongguan office at China. After this expansions, TUPO still keeping her Head office and finical center in Hong Kong
2. Analysis & Research
Our objectives is to introduce the Glenugie Peak Organics Pure Natural Honey to Market and gain the market share by 50% of the sales amount at Hong Kong during year 2006 and start the distribution channel out of Hong Kong to China as well as Asia.
We are firstly define our marketing objectives by means of "Marketing Mix" .
That means we have to subdividing of a market into distinct subsets of customers according to needs and buying habits.
"Marketing Mix" which included Four P's - Product, Price, Place and Promotion.
Product Place Promotion Price
Quality Distribution channel Advertising Level
Features Outlet location Gift and Premium Discount
Product line Inventory levels Sales Promotion
Brand Name Transportation
2.1 Product: -
Why select Glenugie Peak Organics Pure Natural Honey?
2.1.1 - Quality:
First of all, we have to briefly describe about the First class Honey -
"Pure Bonville Honey"
Australian honey is subject to highly variable climatic influences such as drought, excessive rain, strong winds, wide temperature variations, all combined with the diverse flowering seasons of many of the 800 Eucalypt varieties. Some of the flowering cycles for many of these floral varieties can be as short as two to three weeks while others extend for months. The resultant honey crop for any one variety can range from abundant to negligible. Therefore many of Australia's floral varieties cannot be considered as a guaranteed source of honey year after year. Pure Bonville Honey is a traditional blend of excellent table honeys. Of course, from time to time flavour does vary. This is understandable given the possibility that some of the honey flora is seen as rarely as every ten years due to the combination of climatic events such as drought, washouts of nectar by unseasonal rain or scorching winds Glenugie Peak Organics endeavour to achieve continuity of supply by selectively blending the rare with the abundant, the bumper crop with the average to ensure a consistent Australian Eucalypt table honey. This we market as Pure Bonville Honey. Of course, from time to time, the flavour of "Pure Bonville Honey" can vary. This is understandable given that some of the honeys we blend are produced as rarely as every 10 years. A two or three year gap in the production of some of these floral varieties is not unusual given Australia's variable climate and environment. We at Glenugie Peak Organics are proud of our Pure Bonville Honey, knowing that only first class honeys are offered to you our customer.
How importance by selecting the Certified Organics Honey?
Recently, there is a trend of health life and live all over the world, and most of the people are looking for the health product. Tupo selected Glenugie Peak honey is because it is produced by the organic farm without any pollution. And honey get no use by date because it does not contain any chemical additive involve in the honey extract process and no antibiotic in the content.
There is a lot of different honey selling in the world. By the fast and mass information deliver all over the world, we always received information from different channel about how worse if taking polluted product. Therefore, TUPO selected this Certified Organics Product by the Certified Organization.
From the research data analysis by ACNielsen, the Organic Foods is representing the healthier product, This Healthy perception is consistently strong across in Asia Pacific area.
Organic Foods - They're Healthier for Us and Our Children When it comes to organic foods however, the pitch seems to be a bit easier with Organic alternatives being purchased by the world consumers mainly for health reasons - over two thirds of survey respondents think that organic foods are healthier for them and their children. This healthy perception is consistently strong across Asia Pacific.
Besides, ACNielsen is point out that "Manufacturers and retailers must also understand the geographical differences in terms of acceptance and perception of organic food. For example, in Asia Pacific, perceptions of price of organic foods is more a challenge in eight out of 13 markets studied, and in Thailand and China in particular, credibility turned out to be the major consideration",
2.1.3 Product line:
In order to present the expert image in the Honey, we arrange only 1 product line with Honey Only, but we can wider the product length of the product line.
Thus, we are carrying 7 favors of honey which includes:
Natural Bush; and
2.1.4 Brand Name:
Since Glenugie Peak is a newly brand in Hong Kong, therefore, we need to offer a Chinese name for the Glenugie Peak Organics Pure Natural Honey "Ã¥Â³Â°Ã© ÂÃ¨ÂÂ" with the meaning "Honey from the Top of Mountain"
Which is express the honey from a non-polluted, clear area.
Besides, we created a new trade mark "Bee2 Austrian Honey Products" as the icon of the distributor of the Glenugie Peak Organics Pure Natural Honey, instead of Tupo, because Tupo is carrying the smoking accessories, i,e lighter, which may makes consumer to have a negative image of the product carried. While Bee2 can be imagined to product related to Bee which is directly to Honey.
With domestic market in Austria, which is packed in recyclable PET plastic containers.
While for HK market, we would to uplift the product image and most of the Hong Kong people will keep the empty bottle as for storage of other product, therefore, the logo and the printing material on the empty bottle still help the customer to remember our product.
In additional to the traditional packing in bottle, we have developed 2 new packaging, which fit of different needs of customer.
Plastic Squeezed bottle (refer to Appendix __ )
Plastic Squeeze bottle is a convenience by applying pressure to squeeze the honey out of bottle, and no additional tools (i.e. spoon) is needed.
Portable size we call Honey Straw (Refer to Appendix ____ )
Honey Straw is paced in a ultrasonic welding PP bag with imprint logo.
While this is used for those user would like to take few piece for outdoors, in which each Honey straw contains 25g per pack.
The size of honey straw is determined for 250g warm water which normally use 40 - 45g honey. Therefore, the size for 50g can fulfilled normal user's needs in terms of sweeten.
2.2. Place -
Why promoting Glenugie Peak Organic Pure Natural Honey in Hong Kong?
We always heard about the polluted food and fake product (even food) were found, especially in the Mainland China which is nearby us (Hong Kong). It makes most of the Hong Kong people are no longer believe product import from Mainland China, especially the product affecting our health.
In addition, there is a trend to taking healthy food and life all over the world, And Hong Kong is the also influenced by these atmospheres, thus health food product is rapidly growth in Hong Kong.
Refer to the research from ACNielsen of the topic : Organic and Healthy Foods Have Room for Growth - HONG KONG, December 19, 2005 --- Consumers are yet to 'buy' the value of Organic Food and 'Functional Foods' fortified with added vitamins or supplements and promote specific health benefits, according to a study released today by ACNielsen, the world's leading marketing research and information company. (refer to Appendix VII Bibliography 7 )
From the data analysis by ACNielsen, (we focus on Asia Pacific area) we found that 22% of the not purchase reason due to "Not sold where I shop" (Refer to Appendix I)
Thus, we should address correct channel to target those user who cannot found the product at their shops.
2.2.1 Distribution Channel:
As a High class and premium quality Honey, we are focusing the target group for educated person, from Middle class to Upper uppers classes.
Thus, we are focusing some supermarket at the commercial area, central urban district, as well as department store.
18.104.22.168 Organizational Buying,
In addition to the retail market, we also focus on the Organization Buying.
Regarding the Organization buying, we can selected some organization such as school, pharmacy and Hong Kong Professional Teacher Union (www.hkptu.org)
Those targets are also help to increase our sales volume as a wholesale market.
22.214.171.124 Buying Behavior
Signification differences Between brands
Complex buying Behavior
Variety Seeking buying behavior
Few Differences between brands
Dissonance-reducing buying behavior
Habitual buying behavior
Because buyer will takes lower involvement in Honey, and there is few differences between brands and the price is relatively lower, therefore, we will focus the buyer to becomes our habitual buying behavior.
2.2.2. Outlet location:
After define the distribution channel, we should refine the location of outlets. As our product position is stated as High class and premium quality Honey, thus we should locate our outlets within the commercial area that targets the well educated person; and department store at central district and main shopping area. Besides, living area of foreign is also a potential target of our honey.
Thus we target below location for the outlets:
Commercial Area: Central; Wan Chai; Tsum Sha Tsui
Living area for Foreign: Stanley; Discovery Bay
Shopping area: Causeway Bay; Kowloon Tong
2.2.3. Inventory Level
Due to the re-ordering period and logistic arrange will takes around 25 - 35 days, thus we should keep several amount of stock to avoid out of stock for the empty shell was found in the supermarket.
With reference to the data get back from the trial order, we should order extra 10 - 15% for total quantity as stock and it can prevent the empty shell
Due to high delivery cost form Austria to Hong Kong, thus we have to check the stock level bi-weekly, this practice can help us to prevent the higher air- freight shipment cause by the empty shell.
Due to a new branding of Honey is promote to the existing, we have to promote our product by means of advertising, which included different channel:
- Printed advertising
- Printing label on the packing
- Insert of the packing
And we should target the advertising location at different channel:
Even though the response of the advertising by means of TV / broadcasting result over 60% from the response, but it will not be considered at this stage because of the high product cost
Refer to the Appendix V. Channels for health related information
2.3.2. Gift and Premium
Due to Tupo is a Gift and Premium provider, thus we have comparative advantage in ordering gift and premium with tack-on order to gain the advantage of avoid the huge MOQ as well as the lower production cost.
We have selected 2 premiums for the 1st promotion held 2 weeks before Chinese New Year, i.e. Calendar and Watch.
2.3.3. Sales Promotion
During Sales Promotion period, we will set-up sales counter with promoter for each outer. With our past experience, the sales counter and promoter is provided by the supermarket, department which we will charge the man-hours of the promoter only.
We have plant 4 sales promotion in year 2006:
1st promotion: 2 weeks before Chinese New Year
2nd Easter Holiday
4th November to December.
With reference data from ACNieslen, topic:
Hong Kong Consumers Are Warm At Heart. Chinese New Year Gifting Tradition Still Appeals.
And Total Spending Sentiment of 2004CNY, the spending on CNY is 83% of people is willing to spend more or the same as last year. Refer to AppendixIV
Thus we will focus on the 1st promotion and the 4th promotion as the main sales promotion perform by the year.
2.4.1 Price Level:
With refer to the Price-Quality Relationships of Nondurable Consumer products: A European and United States Prespective
By David J.Faulds & Subhash C.Lonial
Nine Price-Quality Strategies:
Good value strategy
False economy strategy
By means of the Nine Price-Quality strategies, we define our pricing strategy as High-Value Strategy, because of our High class and premium quality of the Honey with reasonable price compare the market price.
2.4.2: Discount level
With reference to Expected Profit approach used in discount pricing decisions for perishable products. By Bulent Sezen
Consumers are less likely to purchase perishable goods when their expiry dates are near. For this reason, retailers frequently implement a discount pricing policy when the products have reached closer to their expiry dates., However, "Honey is no used by date" therefore, even the honey is purchased when their the expiry dates are near, but the quality still in good condition,
Therefore, we can use this strategy to simulate the sales by offering discount.
In order to obtain the best profit margin, we can offer the maximum 10% discount during the promotion period for each outlet.
3. Product Life Cycle (PLC)
Honey is a product still in the maturity status because it is a trend around the world talking about health and Organics product, thus the sales is still keeping slighter upward slopping in the PLC. In this stage, we are classified it as the 2nd phase of maturity status, which showing sales flatten, but profit margent is slight reduced, because of the new competitor and new product is shared some market share. But it has no substitutes in the market for the natural organics product, therefore, the sales amount still keeping upward slightly.
4. Differentiation of our product when compare with competitors
There are 4 main sources of Honey in Hong Kong:
Local Honey product at Hong Kong
Imported from Mainland China
Imported from New Zealand
We always heard about the polluted food and flak product (even food) were found, especially in the Mainland China which is nearby us (Hong Kong). It makes most of the Hong Kong people are no longer believe product import from Mainland China, especially the product affecting our health.
Refer to the FDA, there's 2 China Honey is classified into Safety Alert:
For local honey producer, there is still using the traditional method in producing honey, which carried lower productivity but it is the flesh one, thus it still got several mark share.
In which, our main competitor is the New Zealand imported Honey, which is mass production, carried large variety of honey products.
All of the above 3 sources have different markets and it still not satisfy all the market needs, thus, we considering the 4th source of Honey from Austria - which is a premium class honey to target different markets.
Therefore, we will focus our product with below differentiation
4.1. Product Length:
We are carrying different variety of favors in honey, which includes:
- Yellow Box;
Yellowbox (Eucalyptus melliodora) is universally accepted as Australia's premium floral variety honey. The tree itself grows 18 to 30 metres high with a drooping habit and displays an ornamental appearance. It grows on gently undulating country and foothills, slopes and tablelands west of the Great Dividing Range from Victoria through New South Wales and into Queensland. The tree flowers during Australia's spring and summer between September and February. Honey from the Yellowbox is normally light amber in colour, with a good density and is slightly turbid. In the unblended form it does not granulate. Yellowbox has a most pleasing characteristic aroma and delicate flavour.
Our Rainforest honey is usually produced from Brushbox (Laphostemon confertus) and also Grey Ironbark (Eucalyptus paniculata). The flowering period of these varieties usually overlap. These two species grow along the eastern gullies and slopes of the Great Dividing Range of coastal New South Wales. The eastern side of the range is an area of sub-tropical to temperate climate with high rainfall. The original settlers referred to these rainforests as 'The Giant Scrub' and remnants of this forest persist all along the eastern side of the range. The honey produced is light in colour of an excellent flavour and density
Wildflower is a honey produced from within the natural forests of Eastern Australia, mainly New South Wales and Queensland.
Wildflower can be a combination of a number of floral varieties. The main source is a species called Spotted Gum (Eucalyptus maculata) which can reach to 45 metres high with a 1.5 metre trunk diameter. It can carry its buds for up to 2 years without flowering. The flowering can occur over an extended period from February to September. The honey is medium amber in colour. It has its own distinct wild fruity flavour. It is a favourite with Glenugie Peak Organics repeat customers.
- Winter Flower;
Winterflower as the name suggests, is produced from a variety of species that flower in Australia's colder months when overnight temperatures drop to -12ÃÂ°C. The main floral source of this honey is Napunyah (Eucalyptus ochrophloia) which is restricted to New South Western plains, an area of low rainfall. The tree will carry buds from April to September with individual flowers lasting for several weeks. The honey has excellent density and flavour. It is light in colour and granulates rapidly into a "candy honey".
Coolibah (Eucalyptus Microtheca) is a small, crooked and gnarled tree with a short trunk and open crown. Usually grows 12 to 22 metres high with a diameter up to one metre. It grows in the drier western areas of New South Wales and Queensland, and also in the Northern Territory and Western Australia. The name is also spelt 'Coolabah', as in the world-wide known song "Waltzing Matilda" with the words, ". . . under the shade of a Coolabah tree". The Coolibah flowers for a short period mid December through January, our summer peak and in a climate that is considered arid. Glenugie Peak Organics are proud of their Coolibah honey as it is light in colour with excellent density and delightful flavour.
- Natural Bush;
Natural Bush is a honey sourced from a number of Eucalypts although mainly from Blackbutt (Eucalyptus pilularis). This tree is a tall forest tree of Eastern Australia (New South Wales) growing to a height of between 30 to 60 metres with a 2 metre diameter trunk. Its name is derived from the normally bushfire blackened lower trunk of the tree. Natural Bush is a darker stronger flavoured honey. It is well suited to the tastes of people who prefer a honey with some bite and it is one of our best selling varieties
- Creamed Honey.
Glenugie Peak Organics creamed honey has achieved a well deserved reputation of excellence. It is the result of the most careful blending of honeys which candy readily, have the correct crystalline structure and are endowed with excellent flavour and colour. Utilising Glenugie Peak Organics many years of experience, the making of creamed honey commences with the aeration of 100% pure honey followed by the selective addition of crystallized honey. When bottled, this honey is refrigerated until it sets. Please note that temperatures of 30ÃÂºC (86ÃÂºF) and higher will tend to melt the honey back to its liquid state. If high temperatures are likely during long periods of transit, such as surface mail, the texture of this product can be changed by prolonged heat. We recommend air freight under these circumstances and also into countries where the seasonal temperature may reach 30ÃÂºC (86ÃÂºF). Although refrigeration is not necessary, storage in a cool place is recommended to maintain its creamed texture. Glenugie Peak Organics Creamed Honey is a first class honey as evidenced by the fact that we constantly receive direct praise from our customers. Even our competitors are so impressed by our product that they contract us to manufacture for them.
In which we has the most wide in the product length of the product mix.
When compare with the order brand.
We found that the Honey in market is packed in plastic bottle, while our honey is normally packed in Glass bottle with metal cap, which is expressing the high class and premium quality and crystallized finishing in the honey.
In additional to the Glass bottle, we packed our honey in a plastic bottle with squeeze function, which is more convenience to the user.
Furthermore, we are developing a new packing call "Honey straw" which is used as a portable honey with single pack for 25g per pack.
4.3 Distribution Channel:
Local Honey product selling at Wet Market, supermarket
Mainland China Honey selling at Wet market, Supermarket
New Zealand Honey selling at supermarket, department store and counter.
The positioning of Glenugie Peak Organics Pure Natural Honey is Premium, High Class Honey in the market, thus, we cannot place our honey at market or convenience store, therefore, we should place our product at Supermarket and department store, Organics food shop, Health food shop, Pharmacy and some unions such as Hong Kong Professional Teacher Union (www.hkptu.org)
5. Strength & Weakness
When compare with the product, we firstly understanding our competitors in different source:
Local Produce Honey (example: Po Sang Garden Bee Farm)
It is a fresh made honey which is the best in the geographic in terms of logistic of delivery and storage. Thus, the cost is relatively lower.
Since this is a local product honey, thus, the investment is lower, which still using the traditional method to product the honey.
Thus the productivity is relatively lower.
Honey import from China (Eample: Bee Brand Honey)
It also gain in geographic location because it is most closest country which is next to Hong Kong. In which the productivity is high and the cost still cheap because of it's low labor cost.
Due to the negative news of pollution and flak product, most of Hong Kong people is no longer believe it's production, thus even the price is lower, but the market share still low.
Honey import from New Zealand (Example: Comvita)
It's promotion and variety of selection of Honey and Honey related product, which is wide in the width of a product mix and it used as a well-known brand in the Honey market.
Price is relatively high in the market, and it is not an organics product, even the price is in high level.
(Refer to web-site: www.comvita.com)
Analysis when compare the strength and weakness with our competitors.
When compare with Strength and Weakness between different source of Honey found in Hong Kong, we will focus on:
Strength, Weakness, Opportunities and Threats (SWOT analysis.)
5.1.2 SWOT Analysis:
- TUPO is direct import the honey from the honey farms in Austria, which do not involve the additional cost for distributor or wholesaler, thus it's cost is relatively lower when compare with the New Zealand one.
- Comparative price - Our product is certified Organics Product, while the cost is similar to the normal honey from New Zealand
- Carrying longer product length in terms of produce line.
- Certified Organics product by Austria Certified parties.
- All importation and exportation is handle under Tupo's subsidiary, thus, follow-up and tracing reorder is convenience.
- Since all handing parties are the subsidiary of Tupo, thus, we can save the expenses from the import and export parties.
- Later enter the market which means we have to put more effort in promoting our product to switch the other loyalty customer to try our product.
- We carry only Honey, which our competitor carried a serious of honey related product.
- Put relatively heavy effort in promotion in a brand new Honey.
- In terms of Geographic local, the delivery and logistic lead-time is
longer than local bee farm and import honey from China.
- When compare with the product line, some brand carrying a full
series of Honey relate product which is wider in product width.
- Due to the health atmosphere around the world, the needs of Healthy product and organics product is needed.
- By means of geographic location which near China, many negative news regarding the fake product (even food), polluted food is packed and exported to HK, thus, import food from overseas is need.
- Due to the trend of on-line shopping, some user can order the honey directly from the bee farm, thus, the cost is nearly open to public, which means the profit margent can not be set too high.
In order to obtain the effective strategy, to increase our sales and brand awareness in the market, we are divided the strategy into 2 stages:
Marketing research and Market Intelligence.
In the first stage - Marketing research, we have already discussed the primary and secondary sources from the SWOT analysis.
Then we will go into the 2nd stage in market intelligence which included: Strategy implementation, Entrepreneurial Insight and Opportunistic Decisions.
6.1.1 Pricing Strategy:
Price is an important variable because it has a direct impact on a company's profitability. However, there is limited evidence to support the effectiveness of competing strategies of fixed pricing and discounted pricing. As a result, both strategies are practiced extensively in the industry.
From the research analysis by ACNielsen, there is a general sense among consumers who wouldn't buy organic products is that they were usually more costly. "There is an opportunity for marketers to find a positioning for foods claiming health benefits to be credible and not prohibitively expensive",
Refer to the appendix II What is the main reason for not purchasing organic alternatives?
Despite the relatively higher awareness of the benefits of organic foods, the high prices tagged along are regarded the biggest barrier to a wider acceptance among one third of Internet-users in Asia Pacific
In order to target these groups of target market, we have to set a reasonable price at a High -value strategy that means we will sell high quality product with Medium Price strategy.
From the market price, we note that the price range for a imported honey from New Zealand is from HK$60 - HK$ 120 per 500g.
Thus, we will set our marked price at HK$ 75 - 80/bottle of 500g, because the cost on organic product can marked at higher price when compare with the normal honey (that mean non-organic honey).
In order to generate higher sales volume, we will offer 10% discount during purchase immediately from the sale promotion counter, which can stimulate the immediate buying behavior.
6.1.2 Promotion strategy:
Promotion can be classified into Marketing communications Mix which include:
Advertising; Sales Promotion, Direct and Interactive marketing.
- Advertising, we will apply the Print Advertising, Packaging-outer and Packaging-insert.
Because we would learn the product information from the Printed material to awareness of our product.
- Sales Promotion,
Sales promotion is a set of stimuli that are offered sporadically, and it reinforces publicity actions to promote the purchasing of a certain product. Sales promotion techniques are intended to have a direct impact on buying behavior. The objectives of sales promotion will be reached to a greater extent when it is done sporadically, when the consumer does not expect it. If the consumer is capable of anticipating when a sales promotion action will take place, the results obtained will decrease. It is therefore necessary for the consumer not to be able to anticipate sales promotions, and thus not to incorporate these incentives into the product's characteristics.
Refer to :Consumer evaluations of sales promotion: the effect on brand choice. By Begona Alvarez Alvarez, Rodolfo Vazquez Casielles.
Thus, we will prepare sample, gifts and Premium and trade Shows for our product. Because Tupo is a Gift and Premium company, thus we have comparative advantage on the MOQ, variety of product and lower product cost. Besides, we will prepare the samples on the trade show, in the trade show, our promoter will offer different taste of honey to costumer to test the feedback on the favor of the honey which is fit-for the Hong Kong People's taste.
- Direct & Interactive Marketing:
Refer to the Direct Marketing, we will prepare Catalogs, leaflet for different channel. And we will create our web-site to provide informative details for our product. For the interactive marketing, we will record the feedback and the sales record from the promoter, which can help us to identify the favorite favors suitable for Hong Kong People.
6.1.3 Branding Strategy:
"Given the brand change agenda , it would seem that a more holistic approach to brand management is needed than hitherto. This is easier said than done, but we suggest one way to approach this is through 'brand chartering' "(Macrae, 1996a; Mitchell, 1996; Rubinstein, 1995). This process encourages managers to think about different aspects of brand management, helps them isolate major problems, and indicates where action needs to be taken.
Refer to :Rethinking brand management: the role of "brand chartering"
By Chris Macrae, Mark David Uncles.
Since Glenugie Peak is a newly brand in Hong Kong, therefore, we need to offer a Chinese name "Ã¥Â³Â°Ã© ÂÃ¨ÂÂ" for the Glenugie Peak Organics Pure Natural Honey with the meaning "Honey from the Top of Mountain"
Besides, we created a new trade mark "Bee2 Austrian Honey Products" as the icon of the distributor of the Glenugie Peak Organics Pure Natural Honey, instead of Tupo, because Tupo is carrying the smoking accessories, i,e lighter, which may makes consumer to have a negative image of the product carried. While Bee2 can be imaginative to product related to Bee which is directly thinking to Honey.
6.2 Entrepreneurial Insight
Refer to the environmental trend, Tupo is taking this opportunity to introduce the Healthy food in this timing, because the economic is slightly growing up, and people is affordable to pay more to buy the food which is better quality and healthier to their body.
6.3 Opportunistic Decisions.
In this environment, we have to take the fast decision, in order to get the market share with fewer competitors in the existing market.
Meanwhile, in the PLC, which showing that the honey is already in the 2nd phase of mature stage But the Organic Honey is form the 1st phase of Mature stage. Thus, we have takes is opportunities to enter the market.
7. Recommendation and Action:
Base on the above discussed strategies, we will consider the implementation of the strategy.
For the branding strategy, we need to register the trade mark "Bee2" and apply the trade mark on our product, which included packaging material, advertising and leaflet. And tupo will not be shown on those material because of it's negative image on the distribution on the smoking related product.
For the promotion strategy, we will select and confirm the distribution channel and select the outlet locations, which we can prepare the schedule of sale promotion schedule, then employ the promoter as well as the free gift and promotion material.
Regarding the Pricing strategy, we are comparing the price with our competitor (that is the imported Honey from New Zealand), and marked the selling price.
Base on the above discussed strategies, we recommend to set the priority of the implementation of the promotion and distribution business with the time frame by means of Gantt Chart.
Price-Quality Relationships of Nondurable Consumer products:
A European and United States Prespective
By David J.Faulds & Subhash C.Lonial
Rethinking brand management: the role of "brand chartering"
By Chris Macrae, Mark David Uncles.
Consumer evaluations of sales promotion: the effect on brand choice.
By Begona Alvarez Alvarez, Rodolfo Vazquez Casielles.
Expected Profit approach used in discount pricing decisions for perishable products
By Bulent Sezen
Managing Market intelligence: an Asian Marketing research perspective.
By Thomas Tse Wee Tan, Zafar U. Ahmed
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