Marketing Plan for Hong Kong Asia Food Supermarket - Case Study Example

Abstract Marketing plans lay foundation that aims to ensure businesses are successful, and these businesses can increase their market share. Hong Kong Asia Food Supermarket is such a business that supplies foodstuff from Southern Asia to their customers in Melbourne area. Hong Kong Asia Food Supermarket has been in operation since 1990 and they have ventured in supplying local products. From the marketing plan, it is evident that the internal and external factors favour the organisation. Additionally, the major competitors of Hong Kong Asia Food Supermarket include Cole and Woolworth Supermarkets. Customer analysis indicates that the supermarket has a better consumer market and they can improve their contributions and market share by analysing the SWOT analysis. Table of Contents Introduction 3 Internal Environment 4 Analysis of the Organisation 4 Scope of the marketing plan 4 Brand Details 5 Internal Capabilities/Resources 5 Marking Strategies (4Ps) 6 Price 6 Promotion 6 Place 7 Product 7 External Environment Analysis 8 Economic 8 Legal 9 Political 9 Technological 9 Social/cultural issues 10 Opportunities Analysis 10 Critical Issues 11 Customer Analysis 11 Target Market Segmentation 12 Competitor Analysis 13 SWOT Analysis 14 Strengths 14 Weakness 15 Opportunities 15 Threats 15 Conclusion 15 Introduction Marketing is an important factor that aides an organisation to succeed in its plans (Sheth & Parvatiyar, 1995). Marketing plan brings into consideration means in which an organisation can improve its market share. The importance of marketing plan is to lay down structures that may direct an organisation to success. An example of organisation that sees the importance of marketing plan is Hong Kong Asia Food Supermarket that is located in Clayton. The supermarket supplies Southern Asia based foods doubled up with local cuisines. Importance of Southern Asian food within Australia is growing because of global related issues such as globalisation and students coming to Australia. These diverse cultures associated to globalisation means that their national requirements should be met, and thus, illustrates the importance of Hong Kong Asia Food Supermarket. Therefore, the aim of this report is to analyse Hong Kong Asia Food Supermarket in terms of internal and external environment, bring into consideration consumer and competitor factors, and SWOT Analysis. Internal Environment Analysis of the Organisation Hong Kong Asia Food Supermarket is an organisation that has established its roots within Australian market specialising in providing different varieties of foodstuffs to its market segment. The supermarket is located in Clayton, initially it specialised in serving Chinese foods but later incorporated foodstuffs from Southern Asian countries. The mission statement “To serve with smiling to make you feel like home” embraces their services and products. Moreover, their corporate responsibility is to ensure that they serve their consumer satisfactory, ensuring all requirements of consumers are met. Scope of the marketing plan A rise of competition is evident in many organisations because of factors that are associated with international changes in business that includes globalisation (Linda, Jule and Wesley, 2009). Hong Kong Asia Food Supermarket clearly understands threats and benefits associated to globalisation and thus it has decided to expand their business activities ensuring they reach the same class as Woolworths. To achieve this, the organisation should strategise and differentiate their products relative to their components, at the same time, ensuring all others factors such as marketing mix is improved (Sandhusen, 2000). Brand Details The supermarket has an array of products portfolio that provides drinks, frozen food, cigarettes and canned food all of which are obtained from Southern Asian countries including Korea, Japan, Indonesia, Malaysia, Singapore and Thailand (Sheth & Parvatiyar, 1995). These products were decided because the supermarket saw that most of their consumers wanted to prepare their national foods but they could not access appropriate ingredients. Thus, the array of products has ensured that such issues are solved. Internal Capabilities/Resources Hong Kong Asia Food Supermarket has been in the service/product industry since 1990, where they began with Chinese foods (Sandhusen, 2000). However and after realisation of chances in consumer preferences and test, the organisation has expanded its product offering through introducing foodstuffs from Southern Asia region. This means that the company has the capacity and capability to ensure that what they offer is optimal and beneficial to the society (Linda, Jule and Wesley, 2009). Thus, the long period in the market plus the resources that the organisation has accumulated over time presents enough bases to ensure they succeed in their operations. Additionally, human resource is another aspect that Hong Kong Asia Food Supermarket has placed into consideration, and their internal capacities have ensured they survive a competitive environment because the staffs themselves understands what the organisation offers and they can easily address queries from their consumers. Marking Strategies (4Ps) The marketing strategies bring into consideration the 4Ps, which includes prices, product, place and promotion. This section analyses marketing strategies that are employed by Hong Kong Asia Food Supermarket in ensuring they fulfil the requirements of their consumers. Price Price is the only component within the marking mix that brings revenue to an organisation. Price is an important aspect to any organisation and determines whether an organisation could appeal to consumers or not (Joep and Andrew, 2005). The products of Hong Kong Asia Food Supermarket are valued cheaply meaning that consumers can easily access and sample the products offered. Moreover, the products that are offered are specific e.g. from specified regions, the consumers do not have means in which they can measure and determine how expensive a product is (Steuernagel, 1998). This means that the Asian products the organisation supplies create a monopolistic kind of business, and this, resulted in the organisation expanding its products offering. Promotion Promotion is the act in which an organisation ensures that consumers understand the products and services offered by an organisation. Promotion is a communication tool that is used by consumers to inform consumes what is available (Favaretto & Viscolani, 2010). In the case of Hong Kong Asia Food Supermarket, their promotional approach is unique and they do not promote their products extensively. Unique product offering means that word of mouth is mostly utilised, meaning that when a consumer knows that a certain product is in the supermarket, they introduce the product to their consumers (Sheth & Parvatiyar, 1995). In addition, the culture and traditions of Asian consumers is completely different from western culture in that Asian consumer’s belief in collectivism while western cultures belief in individualism (Linda, Jule and Wesley, 2009). Thus, the idea of collectivism provides an opportunity to Hong Kong Asia Food Supermarket to reach a wider market. Place The location of the Hong Kong Asia Food Supermarket is convenient in that it is somehow located in the city centre meaning that they can access easily numerous consumers (Wedel & Kamakura, 1999). Moreover, the leading roads to the supermarket provides an easier means in which consumers can drive through and easily access the products that they are been offered. Product Hong Kong Asia Food Supermarket offers products from Asian countries especially Southern Asian. Moreover, the business has expanded providing foodstuff from Australia ensuring that they can access a larger market segment. Their products ranging from food to cigarettes enables them to access a larger market and hence leads to profitability of an organisation (Joep and Andrew, 2005). External Environment Analysis Economic Melbourne is one of the regions in Australia with vast resources. The policies for business operations in this region are flexible and Hong Kong Supermarket is bound to benefit from this economic impetus. Given the business structures and business policies embraced by both the federal government of Australia and the Melbourne government, Hong Kong Supermarket will be able to establish itself in Melbourne and beyond with little difficulties. In addition, the policies will enable Hong Kong Supermarket to reap from minimal taxation, foreign exchange controls and duty. Thus, the company will have minimal operating costs that will help it offer goods at competitive prices (Favaretto, & Viscolani, 2010). Hong Kong Supermarket expects to provide products, which are of high value and therefore value-based products are expected to attract many Australians to shop from this supermarkets since most of them value quality products over cheap low quality products. The company intends to ensure that all products it deals in meet high quality standards (Sandhusen, 2000). The supermarket will be involved in auditing contract manufacturers that will be supplying it with different products to ensure that the quality of products meets the needs of its customers. It will also be involved in inspection of all products before they are packaged in addition to carrying out process testing during packaging of various products. Furthermore, Hong Kong Supermarket intends to have process and systems in place, which maintain, monitor and improve the quality of all products that the company intends to trade in. all these mechanisms are aimed at providing its customers with high quality products that the customer will appreciate buying at any cost (Steuernagel, 1998). Legal Like other places in Australia, Melbourne is a low crime area. In addition, even business environment is provided through continuous up dating of regulations and policies governing business operations. To this end, foreign investors have been and continue being attracted to Melbourne (Joep and Andrew, 2005). Most of these foreign firms have enjoyed the diversity found in Melbourne and the legal structures in place have been instrumental to their success. Hong Kong Supermarket being a foreign firm in Melbourne is expected to benefit from the legal structures, policies and regulations governing business operations in Melbourne. Since Hong Kong Supermarket will be trading in food related products, it will be legally obligated to ensure that packaging, labelling, shelf life and microbiological requirements for various food products are met (Weinstein, 2004). The company intends to seek regulatory approvals from TGA, which sets standards before releasing any food product to its target market. Political The political environment in the whole of Australia is very stable. This implies that Melbourne also has a stable political environment and Hong Kong Supermarket is expected to benefit from this since most foreign firms like investing in areas with stable political atmosphere. Technological Smooth operation of any business is greatly dependent on technology. Hong Kong Supermarket will be rolling out e-business, which requires advanced telecommunication and internet facilities. Melbourne like other areas in Australia has invested many resources in the development of infrastructure, telecommunication and internet facilities. This ensures that businesses operate smoothly throughout Australia. Hong Kong Supermarket will benefit from this state of art technology facilities. The availability of internet facilities is an advantage to Hong Kong Supermarket, which intends to carry out e-business in food industry in addition to other transactions (Favaretto, & Viscolani, 2010). This will allow Hong Kong Supermarket to carry out online sales. On its part Hong Kong Supermarket, intends to be involved in research and development activities aimed at developing products, which are competitive in the market in conjunction with contract manufacturers (Kerin, Hartley & Rudelius, 2003). It also intends to invest in the development of its labour force in terms of technology to assist it in positioning itself strategically in the Melbourne business environment that is known to be highly competitive. The investment in technology is expected to be a competitive tool for Hong Kong Supermarket. Social/cultural issues Australia is made up of a population with diverse origin. Hong Kong Supermarket intends to hire its employees based on their capabilities and not their cultural or racial affiliation. This is expected to appeal to most of Australians. The company also intends to establish common values for its people, which will dictate the culture to be followed by all employees (Joep and Andrew, 2005). There is an increased demand for Chinese food in Australia and it forms one of the favourite cuisines in Australia. In addition, Melbourne has in recent past experienced an influx of Asians who enjoy the Chinese food. Furthermore, the population of students of Asian origin in Melbourne is very high and the Hong Kong Supermarket targets this population. In spite the increased demand for these foods, no supermarket in Melbourne has come out to address the needs of this population (Linda, Jule and Wesley, 2009). The commissioning of Hong Kong Supermarket in Melbourne is expected to reap from these cultural and social factors. Opportunities Analysis Even though the supermarket industry in Australia has been dominated by two supermarkets, Cole supermarket and Woolworths supermarkets, the needs of Asian population has not been addressed appropriately. In addition, the increasing demand for Asian foods presents an opportunity to Hong Kong Supermarket which is least addressed by existing companies (Favaretto, & Viscolani, 2010). Most Australians have been found to spend much cash on takeaway foods and dining. The commissioning of this supermarket will enable the consumers to order their meals online from the comfort of their houses in Melbourne. Critical Issues One of the critical issues to Hong Kong Supermarket will be competition from the two well-established supermarkets in Australia, that is, Cole’s supermarket and Woolworth’s supermarket. In addition, competition, the supermarket faces an up hill task of establishing itself strategically in Melbourne. Furthermore, exchange rates presents problem to Hong Kong Supermarket (Joep and Andrew, 2005). This is because the floating exchange rate environment has resulted in increased imports, which have resulted in low consumer purchasing power for local products. The prices of products to be offered Hong Kong Supermarket are bound to be affected by this low spending on domestic products (Steuernagel, 1998). Customer Analysis In Australia, many customers buy brands and are least concerned with price. In addition, they value quality so much that they are willing to pay anything for quality products or services (Sandra, 2007). There are also preferences, which are age specific, gender specific or pricing. Hong Kong Supermarket aims at providing quality products to meet the needs of the Australian population. The supply of products will also consider product differentiation to ensure that the needs of different age groups, genders and pricing needs are met. The company also intends to invest much in customer service to ensure that the customers are satisfied. Target Market Segmentation Market segmentation is a concept found in marketing and economics. Market segmentation may be age, gender, price or interest related. An organization develops its own market segments and usually is involved in creation of product differentiation strategies, which enable it to exploit these segments (Favaretto, & Viscolani, 2010). This market segmentation and related product differentiation often gives a company a temporary commercial advantage. Market segmentation aims at identification of groups of customers and potential customers with similar distinct needs and responding to these needs to improve revenues of the company (Sandra, 2007). This can also result in marketing effectiveness of an organization. Hong Kong Supermarket will segment its markets based on age, gender, price and interests. The company intends to differentiate its products to meet the needs of different age groups (Tice, 1993). It targets the infants, young children, teenage and adults. Product differentiation will take into consideration the needs of these different age groups and in conjunction with manufacturers tailor the products to address their specific needs (Joep and Andrew, 2005). The company also intends to differentiate its products on gender basis to meet special needs for different genders. Furthermore, the pricing of products will vary in accordance to the quality to ensure that those who value quality over price gets what they desire and those who value low prices over quality also gets what they want (Munib and Gary, 2005). The supermarket also intends to serve the special interests of the Asian population, which has in recent past seen an increase in Melbourne. This market will be divided into student population and non-student population to address their special needs. Competitor Analysis The following table shows the competitor analysis of Hong Kong Supermarket’s two major competitors in Melbourne. Category Hong Kong Supermarket Woolworths supermarket Cole supermarket Products Food and hotel machine operation General merchandise group, consumer electronics group, hotels group and wholesale group. The supermarket group encompasses supermarkets, retail liquor outlets and petrol outlets The supermarket group encompasses supermarkets, retail liquor outlets and petrol outlets Quality Emphasis will be placed on quality Quality highly valued Also values quality Branding It will be involved in branding Involved in branding of its products Carry out branding of products Market capitalization Has potential to be one of the top performing supermarket in food industry Largest market share Second largest holder of market share Marketing strategies It intends to employ 4Ps. Rebranding strategy, market segmentation, 4Ps (products, price, place and promotion), and offer discount vouchers for petrol from Caltex Market segmentation, 4Ps (products, price, place and promotion) and offer discount vouchers for petrol from Shell SWOT Analysis SWOT analysis is a tool used to determine an organization’s position in relation to policies in palace and competitors by auditing the organization and its environmental factors (Favaretto, & Viscolani, 2010). It specifies the aims of an organization in relation to its activities and environmental activities which are favourable and unfavourable to the organization as it strives to achieve its aims. Strengths These are attributes that enable a firm to achieve its aims. In the case of Hong Kong Supermarket, the following are strengths that will enable it establish itself strategically in Melbourne (Linda, Jule and Wesley, 2009): It will specialize in food industry which will enable it reap the advantages of specialization Intends to emphasise quality of its products through approval by TGA and auditing of contract manufacturers in addition to process testing prior to packaging Its market segmentation involves provision of Chinese food which have seen a recent increase in demand in spite there being no supermarket that supplies these food stuffs Intends to offer online shopping Weakness These factors may impact negatively on the performance of the firm. The following are some of the weaknesses of Hong Kong Supermarket: The company will face fierce competition from Woolworths and Coles supermarkets Being a start up company it will take time to win customers’ trust Opportunities These external factors may help the firm to achieve its objectives There is a growing demand for Chinese foods in Melbourne The legal structures in Melbourne are likely to protect the interests of Hong Kong Supermarket. Threats These external factors can damage the performance of an organization. They include: Instability of Australian exchange rates has seen increase in imports, which have decreased the demand for local products. Conclusion Marketing plan is an important component that lays way for an organisation either to increase its market share or improve on its product offerings. Consumer satisfaction increases chances of loyalty and retention meaning that the market share can be increased easily. Hong Kong Asia Food Supermarket began its operation in 1990 specialising initially in Chinese food but of late they have expanded in supplying products from Southern Asia. Their mission statement and internal resources has ensured that the company has been successful, and they can easily introduce new strategies into ensuring they continually succeed in their endeavours. In addition, the external environment is favourable to the organisation and hence they can easily introduce new plans. Competitor analysis shows that the major competitors include Cole and Woolworths who have been in supermarket business for a long time. Generally, Hong Kong Asia Food Supermarket is in a better position to succeed in its plan, and they have a good position to introduce new measures that improves their market share. References Favaretto, D. & Viscolani, B. 2010. Advertising and production of a seasonal good for a heterogeneous market. A Quarterly Journal of Operations Research, 8(2), pp. 141-153 Joep P. and Andrew R. 2005. The uses of marketing theory: Constructs, research propositions, and managerial implications Marketing Theory, 5(2), pp. 165-184. Kerin, R., Hartley, S. & Rudelius, W. (2003) Marketing: The Core. New York: McGraw Hill Professional. Linda D., Jule B. G. and Wesley J. 2009. Marketing and the structuration of organizational learning Marketing Theory, 9(3), pp. 341-368. Munib, K. and Gary, G. 2005. Integrating e-commerce into existing export marketing theories: A contingency model. Marketing Theory, 5(1) pp. 75-104. Sandhusen, R. (2000). Marketing, 2nd Ed. London: Barron’s Educational Series. Sandra C. J. 2007. Implications of behavioural decision theory for health marketing. Marketing Theory, 7(1), pp. 75-91. Sheth, J. & Parvatiyar, A. 1995. Relationship marketing in consumer markets: antecedents and consequences. Journal of the Academy of Marketing Science, 23(4), pp. 255-271. Steuernagel, R., (1998). Cellular Marketing, New York: John Wiley and Sons Publishers. Tice, D. M. 1993. Self-concept change and self-presentation: The looking glass self is also a magnifying glass. Journal of Personality and Social Psychology, 63, 435-451. Wedel, M. & Kamakura, W. (1999). Market Segmentation: Conceptual and Methodological Foundation, 2nd Ed. New York: Springer Publishers. Weinstein, A. (2004). Handbook of Market Segmentation: Strategic Targeting for Business and Technology Firms, 3rd Ed. London: Haworth Publishers. Read More