International Marketing Report: Hong Kong Market Entry of Prune Drink

This report provides a comprehensive international marketing plan for Stapleton's California prune health drink, focusing on its potential entry into the Hong Kong market. The report begins with an introduction to the brand, highlighting its health benefits and the rationale for targeting Hong Kong, where increasing health consciousness among consumers creates a favorable environment. It then delves into the justification and evaluation of the target market, detailing market segmentation based on geographic, demographic, psychographic, and behavioral factors. The report analyzes the criteria for selecting market segments, followed by a discussion of targeting strategies, including undifferentiated, differentiated, concentrated, and micro-marketing approaches. Positioning strategies are also examined to help the brand establish a strong presence in the competitive market. Furthermore, the report recommends suitable market entry methods, considering various criteria, and outlines marketing objectives and marketing mix strategies. Finally, the report discusses the reasons for the potential success of the product in the Hong Kong market, considering the health benefits and the growing consumer demand for healthier alternatives.

International Marketing

Table of Contents
1. INTRODUCTION.......................................................................................................................1
1.1 About the Brand.................................................................................................................1
(Source: - Stapleton's California Prune Health Drink, 2017)..................................................2
1.2 Reasons for entering Hong Kong Market..........................................................................2
1.3 Aim and Objectives............................................................................................................3
2. JUSTIFICATION AND EVALUATION OF THE SELECTED TARGET MARKET.............3
2.1 Segmentation......................................................................................................................4
2.1.1 Criteria for selecting Market Segments..................................................................4
2.1.2 Segmenting Consumer Markets..............................................................................4
2.2 Targeting ...........................................................................................................................6
2.2.1 Target Market Strategies.........................................................................................6
2.3 Positioning ........................................................................................................................6
2.3.1 Choosing a Differentiation and Positioning Strategy.............................................7
2.3.2 Differentiation and Positioning...............................................................................7
3. Market Entry Recommendation...................................................................................................8
3.1 Criteria for selecting Appropriate Market Entry Method..................................................8
3.2 Market Entry Recommendation.........................................................................................9
4. Marketing Objectives and Marketing Mix Strategies................................................................10
Reasons for success and failure of products entering into Hong Kong market :-..........................12

1. INTRODUCTION
1.1 About the Brand
Stapleton's Prune health drink is a natural, refreshing and a very tasty natural drink that is
designed to provide several health benefits and prevent the consumers from various health
diseases. It is a product of MA&J Vitalife company. It satisfies the thirst and also provides a
burst of goodness every time the customers drink it. It is made with natural minerals and is
highly effective for people who are suffering with anti-ageing problems (Akaka, Vargo and
Lusch, 2013).
It is a 100% pure drink with no conservatives, nasties , unnecessary salts. It is a natural
drink which uses only bright Californian sunshine and rich , fertile soil. The sole mission of this
food and beverage product is to promote a healthier and fitter lifestyle.
Since people now-a-days are becoming more health conscious, therefore, they are
consuming more juices. But these fruit juices contain high level of conservatives and sugar
which is very unhealthy for a person. So, this juice was developed by Californian Company. It is
consumed in small quantity and thus it’s over consumption is not possible. It is considered as a
source of Fibre, potassium and sorbitol as well as fat-free.
This California Prune Health Drink is having the following benefits:-
 Strengthens the heart
 Balances cholesterol and sugar level
 Prevents diabetes
 Relieves constipation
 Packed with minerals and vitamins A & C, etc.
The best way to drink this prune juice is before bedtime or 1 hour before leaving for work
in the morning (Berthon and et. al., 2012). It is not advised to be drunk at social events as it is
not a social drink but a healthy drink.
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(Source: - Stapleton's California Prune Health Drink, 2017)
1.2 Reasons for entering Hong Kong Market
From a survey conducted, it has been evaluated that people of Hong Kong are becoming
more health conscious and realising the importance of sports and physical activities (Cadogan,
2012). It has been realised that the Hong Kong consumers are thinking about their health more
now and more than 50% of Hong Kong people consider themselves to be overweight and another
56% are trying every possible way to lose their weight. They are using all means through which
their weight could be reduced like cutting down fats and chocolates, sugars, etc.
The manufacturers who are supplying food items there are now producing products by
reducing the sugar level become otherwise their products will not be sold in the market. Since
Stapleton's California prune health drink is promoting healthier lifestyle and are having various
health benefits into it so, it will be a perfect product that could be launched in Hong Kong. It will
be easily accepted by the customers and will be a success due to the following reasons:-
 It is a healthy drink which is currently unavailable in the markets of Hong Kong.
Therefore, they are not having any of their competition there (Cavusgil and Cavusgil,
2012).
 As the people of Hong Kong are moving towards a healthy life style so, it will be a
perfect product for them to consume. Stapleton's California prune health drink contains
lots of health benefits which will benefit the consumers of Hong Kong.
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 The product's price will not be an issue as the customers now-a-days are paying any
amount so as to become healthy and fit. So, Stapleton’s California prune health drink can
put any price so as to earn the profits (Chung, Lu Wang and Huang, 2012).
 These health drinks should be available at all the supermarkets and departmental stores in
Hong Kong like Tesco, Waitrose, etc. Chinese grocery stores can also keep the same.
1.3 Aim and Objectives
The main aim of this report is to discuss about Stapleton’s California prune health drink.
It is to be launched in the markets of Hong Kong. So, a marketing plan will be prepared by
company and proper planning will be done so as to become successful in the markets of Hong
Kong.
The objectives that are set for this report are as follows:-
 To show the main circumstance in developing market strategies for entering in Hong
Kong market (Covered in section 2)
 To justify and evaluate the target market of Hong Kong for Stapleton's California prune
health drinks (Covered in section 3)
 Recommending suitable marketing strategies in different product life cycle stages
(Covered in section 4)
 To recommend the suitable market entry way (Covered in section 5)
2. JUSTIFICATION AND EVALUATION OF THE SELECTED TARGET
MARKET
In order to select an appropriate target market for the product, company needs to apply
good marketing strategies so that they can become successful in market. A marketing strategy
can be defined as those types of strategies that help in identifying the target consumers for
product. It is included in Market Segmentation (Czinkota and Ronkainen, 2013). Once it is done
then company aims at market targeting. In this, the most appropriate market segment for the
product is selected. After this, the last step is positioning. In this, company promotes their
product in the market so that it can be seen and bought by customers.
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2.1 Segmentation
It is a process that is used by companies for dividing the big markets into small segments
so that the product will reach to customers in an effective and efficient manner. It is very helpful
for the companies as they are able to find their required market easily (Douglas and Samuel
Craig, 2011). Stapleton's California prune health drink is also launching themselves in the Hong
Kong market and they need to select a market segment that will be perfect for them to launch
their drink. Various marketing strategies are applied by companies so as to select a perfect
market segment and thus, MA & J Vitalife Company is also using marketing strategies to select
their market segment in Hong Kong.
2.1.1 Criteria for selecting Market Segments
According to..., the criteria for selecting the target market is as follows :-
Table 1: Criteria for selecting Market Segments
Criteria Justification and Evaluation
Measurable For products like Stapleton's California prune health drink, the market
segment which will be selected by MA & J Vitalife company should be
measurable so that they can tell who are their expected customers.
Accessible For Stapleton's California prune health drink, the segment they choose
should be easily assessed by the customers so that they are able to
purchase them.
Durable The market segment for prune health drinks should be durable so that
they are able to keep the drinks for a longer time in the market.
Substantial It is important for Stapleton's California prune health drink to have a
substantial market segment so that they are able sell their products to
more and customers of Hong Kong.
Unique The market segment of Stapleton's California prune health drink will
be unique as they are not having any other similar type of health drink
in the markets of Hong Kong.
2.1.2 Segmenting Consumer Markets
It can be explained from the following table :-
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Criteria Justification and Evaluation
Geographic segmentation It is not a useful criteria for Stapleton's California prune health
drink as they have already chosen Hong Kong as their target
country.
Demographic In this, Stapleton's California prune health drink will do
segmentation as:-
 Age – It will target teenage group to old age group.
 Income – Middle to high
 Education – They will target all as education doesn't
matter in this.
 Social class – Their focus will be on health conscious
groups, old age groups .
 Family size – It will be distributed in a small bottle to the
individuals but in a big bottle for a complete family.
Psycho graphic In case of Stapleton's California prune health drink, the factors
are stated as :-
 Interests – people of HK are becoming health conscious
so, they will definitely have interest in this healthy drink.
 Self Image – Everyone likes to be seen fit and healthy so
that their appearance is good. So, they will definitely go
this product.
 Values – people value their health very much so they will
not mind buying a healthy drink at any price.
 Attitudes – Customers of Hong Kong are now accepting a
healthier lifestyle so they will go for this drink.
Behavioural Factors segmented here are :-
 Product benefits – it is very healthy
 Brand loyalty – since it is 100% pure and natural
product , so they will build brand loyalty easily.
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 User Status – it should be consumed in small quantity
daily
2.2 Targeting
Since Stapleton's California prune health drink has already selected their market segment
in Hong Kong, so now their main aim is to select the target market where they will select their
target customers whom they will sell their product (Malhotra, 2011). There are several target
market strategies that will be used by MA & J Vitalife company.
2.2.1 Target Market Strategies
A target market can be defined as a place where there are set of buyers who are having
similar needs and demands which the company will provide to its customers. In a general way, it
can be noted that the target market which will be selected should be large and in its growth stage
so that the product grows in that market.
The target market strategies are as follows :-
Target market strategies Justification and Evaluation
Undifferentiated Marketing This market will not be suitable for Stapleton's California
prune health drink as in this whole market is targetted but it
will not be correct for the marketing of Prune Drinks.
Differentiated Marketing This market is also not suitable for Stapleton's California
prune health drink as here, all the market segments is
targetted and it is not required for this product.
Concentrated Marketing It is the perfect market for Stapleton's California prune
health drink as here only a small segment is targetted which
will be perfect for this health drink.
Micro Marketing It is also suitable for this product as it is not tailored as per
the demands of customers.
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2.3 Positioning
Positioning of product is very important for companies so that it is remembered by the
customers for a longer time (Evers, Andersson and Hannibal, 2012). In this , they try to occupy
the minds of consumer as after that they will only think of only that product.
2.3.1 Choosing a Differentiation and Positioning Strategy
For Stapleton's California prune health drink, the company should be able to gain
competitive advantage in the market so as to make their space permanent. In this , since the
company is has chosen their market segment and target market as well, so now it is the time for
them to develop their positioning strategy. The basis on which the product will be differentiated
in marker are as follows :-
Target market strategies Justification and Evaluation
Product Differentiation Stapleton's California prune health drink is a completely
different product as the company has made this product
after doing much survey. In Hong Kong market, there is no
such health drink as of now. So, this revolutionary health
drink can be very beneficial for people of Hong Kong and
they will feel it themselves after drinking it.
Service Differentiation In this , Stapleton's California prune health drink can do
positioning by giving good services to its customers like
providing the juice bottle at consumer's home itself or by
providing after sale services so that customer can give their
feedback. They can also introduce health classes where
people will be guided about how to be healthy.
People Differentiation It can be used by referred company as they need good and
knowledgable people who can extract variety of healthy
juices. Also, these juices can be made in different flavours
for people of different age group like bitter gourd juice for
elders and tomato flavour for young ones.
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All the three strategies can be applied by Stapleton's California prune health drink as it
will provide benefits to the company by increasing its customer base.
2.3.2 Differentiation and Positioning
In a positioning map, company will compare the views of customers towards their
respective product and with their competitors as well.
Quality and Health
High
Less
3. Market Entry Recommendation
3.1 Criteria for selecting Appropriate Market Entry Method
The criteria for selecting appropriate market entry strategies are :-
 It is very important to see the objectives of company and how much size they expect of
the market in which they are entering.
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 Its very important to check the financial resources MA & J Vitalife is having.
 In how many other markets company is operating
 the nature and power of competition present in market
In order to enter into Hong Kong market, Stapleton's California prune health drink will
make use of expansion strategy so as to enter into market (Fletcher and Crawford, 2013). It can
be done in following manner :-
 Exporting
 Licensing
 Joint Venture
 Foreign Direct Investment
If Stapleton's California prune health drink will enter into HK market then they are
recommended to use Direct Exporting method.
3.2 Market Entry Recommendation
It is a very important decision that needs to be taken by the company as their mode of
entry into market will only make their image in the minds of the customers and place in market
as well (Griffin and Pustay, 2012). If Stapleton's California prune health drink is entering into
Hong Kong market as an expansion then direct exporting will be the best method which can be
used by them.
The benefits that Stapleton's California prune health drink will get by choosing direct
exporting as a mode of entry are :-
 This method is having a high degree of control on all the factors associated like pricing,
labelling etc.
 They give companies benefit of high profit margin by swiping out all intermediaries
 This helps in making close relationships with the customers as they are able to directly
consult with the company (Meissner, 2012).
 People of Hong Kong are becoming health conscious so this method will help the
company to make a control in the market.
 Stapleton's California prune health drink company will be able to take feedbacks and
suggestions directly from the customers which will be very useful for the company.
Stapleton's California prune health drink is still at its growth stage so making use of
foreign direct investment will not be appropriate for the company. While entering into HK
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market, the company needs to do detailed research so that they have enough knowledge about the
market.
4. Marketing Objectives and Marketing Mix Strategies
The marketing plan prepared by company should be effective so that they give good
results to the company. They can also make use of Product life cycle so as to know the sales and
profits associated with the company.
(Source:- Product life cycle, 2017)
SHORT TERM LONGER
TERM
Time January-
September 2017
October- June
2018
From July 2018 Unknown
Characteristics Introduction Growth Maturity Decline
Sales The sale of
company is low as
the company will
have to establish
themselves in the
market and do
promotions as
well.
Since Stapleton's
California prune
health drink is
already having a
strong place in
the market so the
company can
enjoy its profits
margins from
other states.
The sales will
increase day by
day as their
products will be
readily accepted
in market by the
customers. They
only have to
introduce their
product in new
If the market will
become saturated
and customers
will chose other
products, the sales
will be declining.
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