Marketing Report: Fox's Biscuits Market Entry Strategy for Hong Kong

This report examines the international marketing strategy for Fox's Biscuits' entry into the Hong Kong market. It begins with an introduction to the brand, highlighting its history and reasons for expansion into Hong Kong, including the high demand for biscuits and favorable market conditions. The report then delves into market segmentation, evaluating criteria such as measurability, accessibility, durability, substantiality, and uniqueness, alongside segmenting consumer markets geographically, demographically, psychographically, and behaviorally. Targeting strategies, including undifferentiated, differentiated, concentrated, and micro-marketing approaches, are assessed. The report also discusses product positioning and differentiation strategies, such as product, service, channel, people, and image differentiation, to achieve competitive advantage. Finally, the report provides recommendations for market entry and marketing mix strategies to successfully launch Fox's Biscuits in Hong Kong.

International Marketing

Table of Contents
1. INTRODUCTION.......................................................................................................................3
1.1 About The Brand...................................................................................................................3
1.2 Reasons for Entry in Hong Kong Market.............................................................................3
1.3 Aims and Objectives.............................................................................................................4
2. Justification and Evaluation of the Selected Target Market........................................................4
2.1 Segmentation.........................................................................................................................4
2.1.1 Criteria for selecting Market Segments.........................................................................5
2.1.2 Segmenting Consumer Markets ...................................................................................5
2.2 Targeting...............................................................................................................................6
2.2.1 Target Market Strategies .............................................................................................6
2.3 Positioning.............................................................................................................................7
2.3.1 Choosing Differentiation and Positioning Strategy.......................................................7
2.3.2 Differentiation and Positioning.....................................................................................9
3. Market Entry Recommendations ..............................................................................................10
3.1 Criteria for selecting Appropriate Market Entry Method...................................................10
3.2 Market Entry Recommendations.........................................................................................10
4. Marketing Objectives and Marketing Mix Strategies................................................................12
REFERENCES .............................................................................................................................15

1. INTRODUCTION
1.1 About The Brand
Fox's Biscuits company was established around 160 years ago and started from a tiny
Victorian Bakery in Northern England. With time, they grew and became one of the leading
biscuit brands in UK market. In the current scenario, they have three manufacturing sites and
they are Batley in West Yorkshire, Kirkham near Blackpool and Uttoxeter in Staffordshire. They
are considered as one of the finest and deliciousness in unique way of baking. They have an
approach “More Yum per Crumb”. The vision of company is to make the customers happy by
providing them quality products with unique taste and remarkable experience (Yang and Fam,
2012).
(Source: Homepage of Company, 2017)
1.2 Reasons for Entry in Hong Kong Market
There is a common aim of every business that is expansion of it in other countries and
making the business global in nature. Same goes for Fox Company and they are the leading
bakers in the UK market (Akaka, Vargo and Lusch, 2013). They want to introduce their brand in
Hong Kong market and there are various reasons behind the same which are described as below:
Illustration 1: Homepage of Company

 There is high demand of biscuit products and taste which is provided by cited company
has high chances of acquiring market.
 In Hong Kong market, there is low price sensitivity which means that products can be
sold at monopoly rate like in higher price and thus, profit can be gained in an effectual
manner.
 There are various number of distribution channels which are present in the market of
Hong Kong and thus, Fox can select certain funnels by which their biscuits can be sold.
This element can be acquired by establishing and maintaining healthy relationships with
supermarket and other departmental stores in Hong Kong (Berthon and et. al., 2012).
 Another reasons which can be considered in style of packaging which can be done so that
customers can utilise while tea breaks. This can be done in various forms like 24 pieces
in single box pack. Apart from that, stocks can be delivered to the supermarkets in bulk.
1.3 Aims and Objectives
Main cause behind conducting this report is to formulate a plan for marketing of a foreign
food so that it can enter into Hong Kong Market. The main objectives of this assignment are:
 Determining and evaluating the target market (Section 2)
 Recommending ways of getting entry into the market (Section 3)
 Suggesting appropriate objectives of marketing and strategies of marketing mix (Section
4)
2. Justification and Evaluation of the Selected Target Market
2.1 Segmentation
In order to reach every element and customer of market, market segmentation is utilised
by the companies. In this process, they divide the large market into smaller parts and thus, it
enables them to analyse the market as well as actual needs and wants that can be justified with
products and services so that satisfaction level can be maximised (Zhou and Barnes, 2012). As
per Kotler and Armstrong, there are certain factors which have impact on choosing the target
market and those are:

2.1.1 Criteria for selecting Market Segments
Following criteria is for market segment selection:
Base Justification
Measurable Approx. in the mid of 2016, people residing in Hong Kong have increased
up-to 0.9%. As per the reports, estimate of Hong Kong population is around
7.34 million. So, Fox can focus on the people in Hong Kong market as some
of them may be allergic to the ingredients which cited company use to
manufacture product (Cadogan, 2012).
Accessible There are certain approaches which can be adopted like holiday markets can
be targeted which are near to public. Awareness of product can be done
through advertisement like leaflets, posters and TV ads. Apart from that, free
samples can also be distributed at the supermarket counters. Moreover,
online marketing can be done so that people can easily access the products.
Durable This is a product which can be consumed on daily purpose like with tea or
can be as snacks. This can be consumed by any age group as it comes as
family pack as well. The main focus of company is making customers
addicted to the taste of biscuits they provide (Cavusgil and Cavusgil, 2012).
Substantial Fox's Biscuits have over 30 years of experience in manufacturing and this
creates loyalty among customers and they have perception of safe products.
Their sales is approx. 100 million annually and products are generally
available in the home town.
Unique This company has unique taste as compared to other countries as the biscuits
are completely hand made with genuine ingredients. They even have made
some experiments which are successful like some of the biscuits have
surprise taste in it as well which are liked by customers.
2.1.2 Segmenting Consumer Markets
Grounds Evaluation

Geographic They started their business in England and
mainly expanded in the UK firstly. Their first
store was established around late 90's and in
that, they manufactured and sold at same place.
They are able to deliver high quality products
which can be new for the Hong Kong
population.
Demographic Production of food items is being done for
almost every kind of age group like for
children, teenager and for all genders (Chung,
Lu Wang and Huang, 2012).
Psycho-graphic This product is mainly for the people who love
handmade biscuits and want new taste in it.
These are made much more special as per
season like in summer, they can be freeze to
make it crunchier and they can be consumed as
snacks along with tea or coffee.
Behavioural The vision of Fox's Biscuits is to provide
unique and remarkable experience which can
create relationships for long run with
customers (Czinkota and Ronkainen, 2013).
Biscuits are being provided with high quality
and good taste so that it can reduce the mental
stress of consumer while eating it.
2.2 Targeting
Targeting can be said as process in which company target certain approaches which can
be implemented for achieving aims and objectives of firm.

2.2.1 Target Market Strategies
This is considered as process in which sharing is being done among set of buyers. The
sharing is being done on the basis of needs and features that company serves.
Target Marketing Strategies Evaluation
Undifferentiated Marketing In this kind of approach, Fox's biscuits will target the market as
one and same offers will be provided to everyone in the Hong
Kong market. The main focus will be on common wants and
needs instead of focusing on different needs.
Differentiated Marketing This can be adopted by cited organisation as the market of
Hong Kong is not small in nature and thus it can be divided into
small parts and focus can be drawn into every element (Douglas
and Samuel Craig, 2011).
Concentrated Marketing Fox's Biscuits have limited resources and thus it is highly
important for them to utilise those in optimum manner. In initial
stage they can try on targeting small part of market and can
determine the elements which will be required for capturing
whole market.
Micro-marketing This is said to be process in which practise is being done in
modifying products so that specific taste of certain locations
can be determined.
2.3 Positioning
Product positioning can be considered as techniques which is highly used to present the
various products and services in front of customers so that highlight can be given to products and
consumer attention can be drawn (Evers, Andersson and Hannibal, 2012). The main motive of
utilising this kind of technique is to change the perception of consumers in positive manner
regarding the products and services which are being given to the consumers.

2.3.1 Choosing Differentiation and Positioning Strategy
Competitive advantage is kind of benefits which are taken when the leading position in
market has been acquired. This can be done with the help of adopting various tools and
techniques like low pricing offers or providing attractive features. Determining a set of possible
competitive advantages for formulating stages by giving values from:
Target Marketing Strategies Evaluation
Product differentiation This is said to be a process in which the
product is being differentiated from the another
products which are being provided by
competitors (Fletcher and Crawford, 2013).
This kind of approach is being used to
highlight product and that can be done by
making product more attractive. This can be
applied by Fox's biscuits in Hong Kong Market
so that their biscuits taste can be identified and
perception can be made of people in positive
manner.
Service differentiation This kind of approach is being also used by
cited organisation in Hong Kong Market like
they can apply. The ways in which it can be
applied is like products can be delivered to
supermarkets in bulk amount and that too fast
and even carefully so that chances of damage
can be low as compared to other companies.
Channel differentiation There are certain channels which are being
adopted in order to gain competitive
advantages. These channels decides the
effectiveness of an organisation. So this should
be kept in mind by Fox's biscuits while
entering in Hong Kong Market.

People differentiation Fox's Biscuits is trying to enter into Hong
Kong Market and thus to make effective
footsteps and high brand image. This can only
be done if the recruitment process is effectual,
that means highly skilled workers should be
hired so that same taste and uniqueness can be
provided to attract customers (Griffin and
Pustay, 2012).
Image differentiation Focus of Fox's Biscuits should be on creating
unique and different brand image in
marketplace. The main cause behind this is that
even after the same prices of competitor,
customer will opt for your product due to the
unique perception set in his mind.
2.3.2 Differentiation and Positioning
Positioning maps reflects the perception of consumer regarding brands against competitor
products on essential purchasing attributes.

3. Market Entry Recommendations
In order to enter in-to market of Hong Kong, it Is highly required by the company to
adopt certain strategies which can be used to gain a position in the marketplace. This can lead to
attain aims and objectives of firm into new market (Malhotra, 2011).
3.1 Criteria for selecting Appropriate Market Entry Method
There are various number of methods which can be adopted by firm in order to select the
most appropriate methods which can be adopted for market entry and criteria is described below:
 Company has certain objectives and expectations as well which are related to the size
and scope of business which is being anticipated.
Illustration 2: Position Map of Fox's Biscuits

 Another criteria which is observed is the size of firm and the funds which are required to
support the production and conduction of other operations.
 It is highly required to evaluate the involvement of current investment in foreign market.
 While selecting the appropriate way for entry in target market, it is required to observe
the attitude of management of company as per the skills and abilities towards the
international marketing.
 It becomes important for the company to look out to the competition which is present in
market,so according to that product can be modified into innovative ways and have
potential to attract number of customers (Meissner, 2012).
Above mentioned are the essential criteria which should be analysed by company to form the
strategies which are being formed in order to gain entry in new target market. Apart from that,
there are number of things which plays vital role in deciding the criteria like Intermediaries
which can be used in marketplace. Moreover, another factor can be time which plays crucial role
like time which is available in acquiring and setting up in new target market. Apart from that
there are certain level of risk which company faces and bear it for gaining high amount of profits.
3.2 Market Entry Recommendations
Results are directly impacted by the decisions which are taken for fetching entry into
foreign market. While entering into new marketplace, every company has mission to expand
their process and thus that can be achieved by following methods and they are described below:
 Joint Venture: There are five common objectives in a joint venture and they are market
entry, risk reward sharing, sharing of technology and joint product development and
regulations of Govt. There are various other benefits which are being provided and they
are like political connections and funnel of distribution which is dependent of the
relationships which are being maintained by company to other. Joint venture is
considered similar to partnership because in a partnership it is required to have two
members just like in joint venture (Papadopoulos and Heslop, 2014).
 Foreign Direct Investment: Common abbreviate is FDI which is stated as process in
which facilities are provided of direct ownership in the country which is being targeted.
Direct investment can be made by the acquisition of an existing company or the
establishing of new firm in marketplace (Paliwoda and Thomas, 2013).

Above mentioned are the factors or can be said as ways by which the company can gain track
through which it can enter into new market of new country. Fox's Biscuits which want to enter
and establish in market of Hong Kong can opt for the best way and that is Exporting. This is the
best way in which Fox's Biscuits can expand its business without investing high fund into market
place and also can attain competitive advantage (Ringle, Sarstedt and Straub, 2012). There are
two ways by which company can apply exporting tactics for entering into new market and they
are described below:
Indirect Exporting Direct Exporting
 Traders in Hong Kong market that are
online stores, supermarket and local
company.
 Can be exported in bulk amount like in
wholesale.
 Offers can be provided to whole-sellers
so that they can be attracted towards the
purchasing of products. For example:
discounts can be provided to whole-
sellers like up-to 7 percent (Terpstra,
Foley and Sarathy, 2012).
 Orders can be placed online and there
are many methods through which it can
be done like emailing, website or
Facebook.
 There are certain other methods like
Facebook, Whatsapp, Skype, telegram
and many others.
 Agents, Sub-Contractor, Govt.
 Subsidiary which are Overseas.
 Another way it can be cooperating with
retailers. More the orders are more will
the discount will be provided.
Minimum discount should be provided
on 1000 boxes of single order.
So from the above report, it can be stated that Fox's biscuits can adopt the export methodology
while entering into new market that is Hong Kong and thus can attain the objectives of firm in
effectual manner.

4. Marketing Objectives and Marketing Mix Strategies
(Source: Product Life Cycle, 2017)
Table of Product life Cycle and Marketing Mix Strategies is described below:
Short Term Longer Term
Time January-June
2018
July-December
2018
From December
2018
Unknown
Characteristics Introduction Growth Maturity Decline
Sales Low in sales Sales Rising in
rapid nature
Per Customer low
cost
Sales Declining
Costs High cost per
customer
Average cost per
customer
Low cost per
customer
Low cost per
customer
Profits Negative Profit Rising Huge Profits Profits Declining
Customers Innovators Early Adopters Middle majority Laggards
Competencies Couple of Number growing Declining in
Stable Numbers
Numbers are
declining
Objectives of Establishing Market share is While saving Expenditure

Marketing awareness about
product and trials
(Turnbull and
Paliwoda, 2012).
being maximised market share,
maximising the
profit
reduction and
milking the brand
Mix Strategies of
Marketing
Product Offering of
normal products
Offering the
extensions of
product, services
and warranty.
Brand
diversification
Weak items are
being Phased out
Price Utilisation of
Cost Plus
Market
penetration via
Price
Best competitors Price Cutting
Distribution Establishing
selective
distribution
Establishing
Intensive
Distribution
Establishing
Intensive
Distribution
Creating
Unprofitable
Outlets
Advertising Establishing
awareness among
the dealers
Establishing
awareness among
the mass market
Brand
Differences and
advantages
Level is being
reduced for
retaining hard-
core loyal
Sales Promotion In order to enrich
trials by utilising
heavy sales
Reducing taking
benefits of heavy
demands of
consumers
Enhancing
switching up of
brand
Reducing to
minimum level.
Mix Strategies of Fox's Biscuits: Product: It is a recognisable brand of biscuits. There are various kind of products which
are being manufactured by this company even in biscuit industry. They mainly believe in
providing high quality products so that customers can get addict of their taste of biscuits

which can be consumed at any time, any place and any where. They majorly target the
middle and upper class people who have taste developed in biscuits. Price: They have been following low cost strategy in order to make leading position at
market place. Fox's Biscuits have been following this kind of strategy in order to attract
large amount of customers specially while entering into new market of Hong Kong. They
have analysed deeply about competitor and after that they formulate the pricing
strategies. Fox's Biscuits focuses on a volume strategy and hence keeping its prices
slightly lower helps it to reach out to a huge audience. Place: In this kind of element, Fox's biscuits have targeted the market share of Hong
Kong and thus they are looking out for places which is high populated and thus can
launch their outlets at those places so that their distribution network can get more
effective in nature.
 Promotion: There are various number of tools and techniques which can be used by Fox's
Biscuits like they can provide advertisement and various campaigns in different places in
Hong Kong. They are compiling up with different agencies who are promoting the
products and services.
Product Life Cycle:
Marketing Mix in the starting stage:
 Product: In this kind of stage, there are few products involved and that is done
with same product line or relatively de-differentiated.
 Price: There are certain stages where one of these three pricing strategies strike in
and those are penetration pricing, price skimming and competition pricing.
 Place: It mainly depends on company size. Basically distributive is kept selective
and disordered and it needs to be learnt regarding likes and dislikes of market.
 Promotion: The main focus should be on brand awareness. Huge amount of fund
is being involved in marketing activities like promotion campaigns and
advertisement.
Marketing Mix in the growth stage:
 Product: Increment may be seen within different variants of same kind of
product and along with that quality is being improved.

 Price: Revision of policies and plans and modification as compared to starting
stages and those stages are penetration pricing, price skimming and competition
pricing.
 Place: More intensive nature of distribution. More trading funnels are being
introduced in order to improve the supply in marketplace.
 Promotion: In this stage, main focus will be on enhancing the brand equity and
thus set up is being done for promoting and advertisement of products.
Marketing Mix in the maturity stage:
 Product: In this kind of stage, innovation is being utilised and thus due to that
new features are being involved and new products lines as well. Product mix
width increases.
 Price: Price is kept usually competitive and sometimes customers are being
attracted through low prices.
 Place: there are various channels which are being utilised and they even more
margins to the sellers for increasing the sales.
 Promotion: more focus is being done on brand loyalty and brand preference and
along with that sales promotion and direct selling is also highlighted.
Marketing Mix in the decline stage:
 Product: Some products in the goods line may be out of print, while others
modified.
 Price: Prices may be reduced to sell off the remaining stock of discontinued
products
 Place: distribution is Selective and it is done only in places with sure shot
demand
 Promotion: Primary focus is on goodwill as new products are planned to be
present
Failures and Success of Business Entering into Hong Kong Market
The failure and success of business if they are taking entry into Hong Kong market are related
with achieving success in their operations if they are developing products according to needs and
wants of customers (Wilson and et. al., 2012). There should be proper research and development

activities organised by which firms can easily analyse trends at market places before taking entry
into new markets. There success can be linked with achieving higher growth and profitability
from their overall business operations and they will expand their overall operations around the
globe. The weakness can be analysed if they are not able to establish strong images at market
areas and products are not developed according to needs and wants of customers thus they are
not able to achieve customers satisfaction.

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