Market Entry Strategy: Capilano Honey's Marketing Plan for Thailand

This report outlines a comprehensive marketing plan for Capilano Honey's entry into the Thailand market. It begins with a value analysis, emphasizing the company's commitment to quality and competitive pricing. The report then details market segmentation strategies, using macro and micro segmentation tools to identify target demographics. It addresses potential challenges, including competition from private label brands and concerns about sourcing. The plan includes positioning strategies focusing on pricing and quality, a positioning map, and a clear positioning statement. It also covers product adaptation, differentiation from competitors, and branding and communication strategies, including promotional activities and a proposed advertising tagline. The report concludes with expected outcomes and a summary of the key elements for successful market entry. Desklib provides access to similar marketing reports and solved assignments for students.

Capilano Honey
4/29/2018
International Marketing

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Table of Contents
Introduction................................................................................................................................2
Value Analysis.......................................................................................................................2
Market Segmentation and its Tools........................................................................................3
Macro segmentation...........................................................................................................4
Micro-Segmentation...........................................................................................................4
Challenges for Capilano Honey...........................................................................................6
Consumer profile................................................................................................................7
Positioning..............................................................................................................................7
Core Values of Capilano Honey........................................................................................7
Brand Image.......................................................................................................................7
Positioning Strategy in Thailand........................................................................................8
Positioning Map of Capilano honey...................................................................................8
Positioning Statement.........................................................................................................9
Product...................................................................................................................................9
Adaptations........................................................................................................................9
Differentiation of Product................................................................................................10
Comparison between Capilano and Big Bee....................................................................10
Price......................................................................................................................................10
The potential risk that impacts the Pricing for Market Penetration Strategy...................11
Branding and Communication.............................................................................................11
Promotion.........................................................................................................................11
Communication Strategy..................................................................................................11
Risk of Advertisement......................................................................................................11
The tagline of Advertising Campaign..............................................................................11
Making Strong Brand.......................................................................................................12
Expected Outcomes..............................................................................................................12
Conclusion................................................................................................................................12
References................................................................................................................................14

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Introduction
This report is being presented to create a marketing plan for Capilano Honey in the market of
Thailand. A marketing plan is a complete design that explains marketing advertising efforts
of a company for the upcoming time period. It elaborates the business activities engaged in
attaining a particular aim of marketing in a set time period (Luther, 2011). The marketing
plan of Capilano honey will give a brief of numerous activities of the business in the Thailand
market and will assist in attaining desired goals. Some of the important activities of business
that will be explained are Value Analysis, Market segmentation, Positioning of Capilano in
Thailand, Product, Price, Branding, and Communication.
The management of Capilano Honey are putting their efforts and hard work from last 60
years in order to reach from the lowest recognized brand to one of the top honey suppliers,
they have enjoyed a product innovation position, best practices procedures, and offering
honey with the best quality. The company is capable enough to manufacture honey products
of approx. 45,000 tonnes each year, and offering honey to around 30 countries in the world.
The company has achieved all this just due to the management and supplier’s team efforts
and hard work which comprises around 500 families of Australia of Beekeeping (Capilano
Honey, 2018). Besides having such amazing team, the company needs to deal with strong
competitors in the Thailand market like KCG Corporation Co. Ltd, Big Bee, and Fora Bee.
Value Analysis
In terms of Value Proposition Company ensures that it delivers honey of best quality to its
customers while considering their fitness and health (Capilano, 2018). The company is
concerned about attracting customers towards it.

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The company has made efforts in order be unique as compared to other companies in the
Australian market and will do the same in the Thailand market by offering products at low
cost. In order to get a position in the Thailand market company will offer high quality of
honey at less cost.
The prices of Capilano honey are low which will support it in getting the position in the
market. The company might provide honey at ฿ 377.62 to 555.42 according to the type of
honey as Capilano Honey offer a different range of honey such as Capilano Australian Forest
Honey, Capilano Australian Mountain Honey, and Capilano Natural Australian Honey.
Considering the competitor's prices, they offer products at a high rate because they claim that
their honey is of good quality.
In ancient period people use to consume honey just because of its delicious taste. In place of
sugar, people use to consume honey as the sweeter ingredient because at that time people
didn't know about sugar. Today, honey is said to be the treasure of goodness, and fitness, it
has various benefits so as Capilano Honey. It is a blend of concentrated carbohydrate
encompassing a mix of simple and composite sugars. The Capilano involve three main sugars
like Glucose, Fructose, and Sucrose. The honey is comprised of 28-36% of glucose, 36-50%
of fructose, and 0.8-15% of sucrose depending on the floral source (Capilano Honey, 2018).
Glucose – It supplies most of the effective energy to the cells of human body, as well as brain
Fructose – It is the type of sugar which is commonly found in fruits.
Sucrose – It is a normal white sugar which is extracted from sugar cane (Ancira, 2018)
Market Segmentation and its Tools
Market Segmentation is said to be a procedure of dividing a market of potential customers
into various divisions or groups centered on different features. The segments are made of

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customers who respond to the marketing strategies and share similar traits such as needs,
locations, and similar interests. It is divided into two parts that are a Macro segmentation and
Micro-segmentation (Wedel & Kamakura, 2012).
Macro segmentation – In this, the market is divided on the basis of variables with wider
range like organizational and industry variables. It can also comprise variables like location,
which is considered as a most important variable to study the communication necessities and
the culture (Havaldar, 2010).
Micro-Segmentation – It is a practice used to divide the customers of a company into small
groups related to a specific business (Optimove, 2018). It is an advanced method of
segmentation which makes groups of small numbers of clients into very detailed segments,
depending on different factors, such as demographical, geographical, behavior, and lifestyle.
Demographic segmentation – In this type of segmentation market is divided depending on
family size, ethnicity, race, gender, age, religion, and income (Bhasin, 2018). A tool is used
which is helpful in dividing the market i.e. Segmentation Tree.
Segmentation tree is a tool in which marketer convert a scrape into the database. It can be
called as a difference of a decision tree, which shows the market is segmented into small
divisions. It looks like a family tree, which begins with the product name. This product is
then segmented into various branches made of potential markets (My Bizz Marketer, 2017).
Capilano Honey can make use of this tree to segment its market. The target market of honey
will involve teens, adults, and old people in the Thailand market. Teens and adults will be the
primary segment of Capilano.

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Geographic Segmentation- Geographic segmentation is a common strategy which is used at
the time when a business unit offers its products in a specific area. Geographic/ZIP Code
Research is a tool which is used by various business organizations. In order to get the
demographic information, this tool is used, especially by those who are in the search of
normal household and business in some areas.
There are various companies in the market who provide these type of information for free.
Information that is provided by these tools is income and median age information and people
living in that ZIP code.
Behaviour Segmentation – This type of segmentation divide a population based on their
behavior, reaction, and product use. Here, the company can make use of cluster analysis tool.
Capilano
Honey
Teens
Adult
Old
Taste Diet
Taste Diet
Taste Diet

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It is a tool utilized to divide substances into pre-definite groups, in which each group will be
comparatively similar depending on selected attributes. Thus, it allows marketers to have a
look at the information they have gathered and made use of it in identified sections.
Lifestyle Segmentation – This type of segmentation assist in understanding the needs of the
customers effectively, on the basis of which marketers can take proper decisions of placing
the product in right segment. Customer lifecycle segmentation tool can be selected to make
small divisions from the data collected as per the customer's dislikes, needs, and choices.
Challenges for Capilano Honey
Capilano Honey is one of the top producers of honey in Australia but still, it can face
challenges from the private labels honey brand. There are various brands in the
Thailand market which can give strong competition to it such as Barkman Honey,
MNP Intertrade Co.Ltd, etc. (Barkman Honey, 2018). It is being said because for
Capilano Honey the private label companies are the biggest challenge in the market of
Australia. Coles and Woolworths are the examples of these companies. Both the
companies have good stake in the market besides this they are trying to cover the
honey market through their private labels. As per some analysis, it has been identified
that there is a 25% increase of private labels in the Australian market and due to this
the behavior of the customers have also changed as they have started believing that
private labels are better or equal to national brands.
Along with this, another challenge for Capilano Honey is the leak of information
about the presence of toxic ingredients in the Capilano Honey. It has been identified
that maximum of the Capilano honey is imported from China, Mexico, and Argentine
(Kangaroo Court of Australia, 2016). This information can affect the sales of the
company in the Thailand market. Therefore, in order to avoid this company has
decided to place the product on the market at low cost. Further, the company can

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make use of effective promotional strategies that can help in changing the mind of
customers.
Consumer profile
Market Segmentation Primary Segment Secondary Segment
Demographic Teens – 13-19
Adults – 20-40
Old – 45-60
Positioning
Core Values of Capilano Honey
Capilano Honey is putting its efforts towards doing some innovations and
improvements in their offering so that it can attract new customers (Capilano, 2018).
The company is trying to satisfy its customers through various promotional activities
such as discounts, and easy to use a bottle.
Increasing sustainability practice to increase the popularity of the brand and
awareness of the customers about the company's products
Brand Image
In the Australian market, the brand value of Capilano honey is very high because it is one of
the top producers of honey. Around 96% of the population is familiar with this brand and it is
the most trusted brand. Capilano Honey is well-known in the market due to its different
flavors, advanced delivery mechanism, reliability, and quality.

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Positioning Strategy in Thailand
Pricing Strategy - Pricing strategy can be used by Capilano Honey in the market of Thailand
to get a stable position. The company can attract customers by comparing their prices with its
competitors in the market (Bhasin, 2017).
Quality Strategy – Various companies make use of quality strategy in which they give more
importance to the quality of their products in order to differentiate themselves from the
rivalries (Smartling, 2018).
Positioning Map of Capilano honey
This positioning map is showing the Capilano Honey’s position which will be in the Thailand
Market.
High
Price
High
Quality
Low
Price
Low
Quality
Capilano
Honey
Big Bee
Fora Bee

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Justification
The strategies that are used for the positioning in the Thailand market are Price Strategy and
Quality Strategy. These strategies are very effective and useful in achieving the
organizational goals i.e. of providing a high quality of honey at a very low price. The Price
strategy is effective in appealing customers because the existing companies in the Thailand
market such as Big Bee and Fora bee are offering their honey at a high price because of
which every consumer is not able to afford it. Along with this quality, the strategy has also
been suggested because the company is majorly focused towards the quality of honey and
making itself different from its competitors.
Positioning Statement
Teens, adults and old people who are concerned about their taste and health can buy Capilano
Honey. This is because it is a treasure of health and made of nectar which is gathered from
the flower and is collected by honey bees.
Product
Adaptations
Capilano Honey has planned a broad Research and development for checking the
qualities of honey, and this has been proved by the clinical testing which was
performed by Medihoney Pty Ltd.
Various cosmetic and medical products are created by the company for the infections
like eczema, burns, wounds, nappy rash, and ulcers. The verified antibacterial medical
honey is an opportunity for the honey manufacturing industry.

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Differentiation of Product
The Capilano Honey is very different from other companies in the Thailand market as it will
be focused towards the quality of honey and offering it at low cost. Along with this company
has planned to provide honey made up of organic ingredients.
Comparison between Capilano and Big Bee
The Fora Bee is very famous in Thailand and provides a variety of natural bee products such
as royal jelly, bee pollen, cosmetic items, propolis, and honey vinegar (Fora Bee, 2015).
Besides this, Big Bee is also very famous and offers a variety of products in the market. On
the other hand, Capilano only focuses on the quality and price of the product with less
product range i.se diversification.
Price
Price is the amount of compensation offered by one business or person to another person in
return for a service. The Strategy that Capilano honey will use in Thailand market is pricing
for Market Penetration. This strategy is used for appealing the customers by providing service
or products at a low rate. Many companies use this strategy to grab the customers of the
competitor. This strategy may result in a loss in the initial stage but will provide profit in the
future. The price at which Capilano Honey will be sold in Thailand is ฿ 377.62 to 555.42. On
the other hand, the prices of Big Bee and Fora Bee are estimated to be ฿ 566.43. (Thai
Honey, 2013)
Capilano Honey Prices Big Bee and Fora Bee
฿ 377.62 to 555.42 ฿ 566.43

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The potential risk that impacts the Pricing for Market Penetration Strategy
If the business manufacture luxury products many times miss the opportunity as they
have to do cheap marketing of their offerings and due to this mostly customers ignore
these type of products
If the ingredient and raw material became expensive, then delivering products at low
cost can result in huge losses and it will not be able to make any profit.
Branding and Communication
Promotion
Advertisement – A type of audio or visual marketing communication that use openly
sponsored, and non-personal message in order to vend a service or product in the market is
known as Advertisement (Einstein, 2017). This promotion technique can be used by Capilano
Honey for promoting its healthy and high-quality honey.
Communication Strategy
In order to promote in Thailand Capilano Honey will make use of television, newspaper. The
company can promote its honey with the help of famous athlete or film celebrity in the
advertisement to attract the customers. Besides this company can advertise its product on
national television channels that are mostly watched by teens, adults, and old people.
Risk of Advertisement
Risk of Overstatement and Caricature
Most of the influence of the Scarecrow advertisement comes from the productive way that it
depicts the food industry. Whereas this policy can efficiently distinguish the brand, there’s
also a key risk that it can backfire (Villing & Co, 2018).
The tagline of Advertising Campaign
“Capilano honey is a treasure as once you have it you need more”