Marketing Strategy for Honey Expansion
Added on 2020-02-18
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Running head: GLOBAL MARKETINGGlobal MarketingName of the StudentName of the UniversityAuthor’s note
1GLOBAL MARKETINGQuestion 1 - What aspects of the Korean honey market are favorable for Korean Food? Whataspects of the Korean honey market are unfavorable for Korean Food?Honey is regarded as a wholesome natural food that is nutritious, has several goodness ofa super food and is also tasty. Honey is used as a substitute of sugar and is considered a muchmore healthy option as well glucose and fructose are the main contents of honey, where as thereis also some traces of proteins and vitamins. During the 1980s with the increase of Asianimmigrants to the US, the food market of the Asian decent got a boost also the 1965 immigrationlaw helped a lot of immigrants to set up business and livelihood in the US and since then theKorean food has established their business to a multimillion dollar turnover. The management ofKorean Food has been looking for opportunities to expand their business in exporting NorthAmerican products banking on the business contacts the management has made over the years.There are many sellers in the Asian market who have showed their interest in moving to theAmerican market. Michael Fong is the cousin of the founder and president of Korean FoodImporters of Canada Benny Fong. Michael Fong is young and has a fresh outlook to anybusiness opportunity; he also has been a graduate of the Harvard which also gives him skills andexpertise in business management. He suggested the export of Canadian honey and themanagement decided to export honey as the frits product of export (Foxall 2014).There are clearly some favorable aspects of Korean honey market for Korean food. Firstof all, the company has financial stability as it has been operating for a long time the earnings areestimated to be several million dollars. Second and one of the most important plus point in favorof the company is that it has established a goodwill and business contacts in the Asian foodmarket and have got good reciprocation form the contacts as well. Lastly, to smooth the day today operations of an import and export business that are certain establishments and infrastructure
2GLOBAL MARKETINGthat are required, as food products are perishable items they have to be loaded and stored with alot more care and security for example: shipping, customs brokerage, and telecommunicationsnetworks. The company already has this infrastructure in place. Along with the advantages there are some challenges and some unfavorablecircumstances as well. Firstly,, this is the companies new venture and it is a new place to beginform exporting to Korea is a new market uncharted territory by the company. Korean food hadexported first to Japan as the market there was better known but research had found that theKorean Honey market was a better opportunity. The company also recognized the fact that theKorean culture and business market was different from that of Japan. The Second challenge thatthe company is going to face is that the nature of business of the company is that of a middlemanthat is it has not been in the manufacturing or production department it has been in the tradingsector. Hence the control and the power over the suppliers were relatively lower especially interms of quality, quantity and the technology available. The reliability on the new suppliers, inthis case is Canadian Honey suppliers who were new clients and were unknown to the company(Baker 2014).
3GLOBAL MARKETINGQuestion 2 - What are the key uncertainties in the strategy suggested in the marketing plan? Howcan these uncertainties be reduced? Is it worth doing so? A strategic marketing plan is well organized choked out plan to promote the product orservice the business has to offer to the target market. Both the companies involved in thebusiness that is the Korean food importers Canada and Canadian honey have together recognizedthe Korean market as an appropriate environment to begin their venture (Hollensen 2015). Inorder to do so Michel Fong, of the Korean food importers Canada was put in charge to set up ateam to look after the marketing plan of the venture. It would be a plan of four phases and theinvestment that was settled was of $500,000 and not more than that. In the first phase, pertaining to the present import regulation of the country deals will becracked only with the hotel industry in Korea, the focus of this stage is to give is to gain afoothold in the Korean market and to establish a good name for the company in order topenetrate the market further. The main challenge of this phase if that the prices will be too loweven uncertainty to break even. The low price strategy might give make the people perceive thatthe quality of the product is low. The second phase will be initiated when the government restrictions are a little relaxedand along with the hotels the medicinal aspect of honey will be brought forwards. The productwill not be marketed as a wholesome food item in this phase; rather it is going to take up themantel of the medicinal aspect. The main strategy is to create and develop sales in the medicinemarket and thereby gain control in this market segment (West, Ford and Ibrahim 2015). By theend of this phase a little effort will also be made into the food sector as well. Even at this stagethe honey market will not receive full confidence from the government and hence there will be
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