International Marketing Plan: Dan Murphy's Entry into Hong Kong Market

This report presents an international marketing plan for Dan Murphy's, a supermarket liquor chain, aiming to introduce a new product in Hong Kong. The analysis includes a SWOT analysis highlighting strengths like Woolworths' retail focus and efficient supply chain, and weaknesses such as reliance on the Australian market. It also incorporates a PESTEL analysis of Hong Kong, emphasizing favorable political and economic conditions like reduced alcohol taxes and a rising GDP. Porter's Five Forces model assesses the competitive landscape, considering supplier and consumer power, and the threat of substitutes. The report also covers customer value creation, STP, and marketing mix strategies across product life cycle stages, concluding with recommendations for successful market entry. The assignment is contributed by a student to be published on the website Desklib. Desklib is a platform which provides all the necessary AI based study tools for students.

Running head: INTERNATIONAL MARKETING
International Marketing
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction................................................................................................................................3
SWOT analysis of Dan Murphy.................................................................................................4
Strength..................................................................................................................................4
Weakness................................................................................................................................4
Opportunity............................................................................................................................4
Threats....................................................................................................................................4
PESTEL analysis of Hong Kong................................................................................................5
Political..................................................................................................................................5
Economical.............................................................................................................................5
Social......................................................................................................................................5
Technological.........................................................................................................................6
Environmental........................................................................................................................6
Legal.......................................................................................................................................6
Porter’s five force model............................................................................................................7
Power of Suppliers.................................................................................................................7
Power of consumers...............................................................................................................7
Threat of substitute products..................................................................................................8
Potential of the new entrants in the country...........................................................................8
Competition in the industry....................................................................................................8
Creation of the customer value through Porter’s value chain:...................................................9
STP:..........................................................................................................................................10

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Marketing mix at the product life cycle stages:.......................................................................11
Conclusion:..............................................................................................................................12
References:...............................................................................................................................13

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Introduction
Dan Murphy’s is a supermarket liquor chain stores which is owned by Woolworths
Limited. The company intends to introduce a new product in Hong Kong. Being one of the
most reputed brand in Australia the company can easily expand its business in different
countries. The company has a total of 226 stores all around Australia (Livingston 2014). The
company is best known for its good quality products at lower price than its competitors. Dan
Murphy was the first person to open a wine club in Australia and he learned the trade from
his father’s liquor store. Murphy was greatly associated with the liquor companies and the
various wine industries of Australia. In 1988 Murphy sold his company to Woolworths
(Livingston 2014). Since then the name of Dan murphy’s has been very familiar across the
country and people were aware of the existence of the company. The company is so well
established in the country that small liquor stores around the country rarely get the chance to
compete with the company.
In addition to the retailing stores the company also has an online site which has a lot
of sale every year. The online site contributes to fifty percent of the liquor sale in the country
which is huge in numbers. In 2016 Woolworths opened Dan Murphy’s Cellar in which the
company sells premium quality liquors to its customers (Livingston 2014). There are a lot of
reasons which favors the growth of the company in Hong Kong which will be explained in
the following report. The various products of the company are liked by the customers of
Australia and there are a lot of good reviews for the company. This ensures that the company
will be very successful in establishing itself in Hong Kong and introduce products like
Maverick Twins Barossa Barrel Select GSM 2018 in the market.

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SWOT analysis of Dan Murphy
Strength – Woolworths has a very strong focus on the retail and liquor industry and works
towards improving its business. The top-line growth of the company in the past has shown
that the company can easily become a global brand. The company possess multiple retail
formats and different banners by the help of which the company is able to attract more and
more customers and also retain its old customers (Livingston 2014). The company also
possesses an efficient supply chain management which ensures that the company is able to
provide good quality products to its customers in a short time.
Weakness - The main weakness of Dan Murphy and Woolworths is that the company relies
most of its revenues from only Australia as the company have not extended in the foreign
market by a huge margin. Keeping this mind the company needs to extend its business in the
foreign market like Hong Kong where the company easily sustain its business and grow in
the future. Depending for most of its business in Australia the company is tending to become
a country specific company rather than being a global brand (Livingston 2014).
Opportunity – By assessing the various needs of the customers in the country and the
various markets in which the company operates on will be giving the company an idea about
the various steps which can be taken by the company to improve their products and introduce
new products to the company. Dan Murphy has been taking reviews from the customers and
will be applying them in the future. This shows that the company knows the needs and the
market scope in China which is why they are introducing a new kind of whiskey in the
country.
Threats – The main threat which is faced by Dan murphy is from the tough competition
from Coles which is a subsidiary of Wesfarmers (Livingston 2014). The differentiation of the
various liquor products which is being provided by the company is very less as compared to

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the products which are provided by Coles. It becomes very hard for the company to sustain in
the competition which is provided by the company since the customers are able to get the
same products from either of the company. Both Dan Murphy and Coles has been in a tug of
war in the pricing segment from a long time which makes it very difficult for the company to
experiment more on their products.
PESTEL analysis of Hong Kong
Political – In various countries the taxation of alcohol is becoming more and more
prominent but in Hong Kong this thing is quiet different. The country has reduced its taxes on
Alcohols which is a huge opportunity for Dan Murphy to introduce the new product in the
liquor industry of Hong Kong. The country aims to introduce different kinds of alcohol in the
country by the help of their lobbying practices (Ting et al., 2014).
Economical – The GDP of Hong Kong is at a very good position right now and it has signs
of improving in the future. This gives the scope to Dan Murphy to think that they can sustain
very well in the country and if they introduce new product in the market then it will sustain.
The Per Capita income of the country is also on the rise which gives the company a scope to
enter into the market (Tang Tchetchik and Cohen 2015).
Social – The Gini coefficient of the country is high at the moment with 53.9 which might
have lowered from the past results but still is very high. This shows that the people of the
country are economically stable and are able to buy products which are moderately priced.
This also shows the literacy level of the country which is very high (Zhang Qiu, Yuan,
Haobin Ye and Hung 2013). The company will be very profitable if they introduce the
product to the country and there are very less chances of getting loss from the introduction of
the product in the market. The Human Development Index of the country is also very high at
the moment which is howling that the people of the country live longer and are very much

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educated (Zhang Qiu, Yuan, Haobin Ye and Hung 2013). This factor might be very helpful
for the company since the target customers of the company will be vast and they will be able
to make more sale if they advertise their product in a proper way.
Technological – It has been found that most of the liquor firms in the country is are making
investments and are gradually progressing in the technological aspect (Galbreath 2014). One
of the main reason this has been taking place in the country is because the country is building
on its various indigenous technical skills. The R&D capabilities of the country is also
improving by a huge margin which is the main reason they are improving in the technological
aspect. Dan Murphy will be able to produce its product in a very easy way in the country so
this will be a huge bonus point for the company (Bouzdine-Chameeva, Zhang and Pesme
2013). These various technological factors will be helping the company to establish its
business in the Hong Kong in a good manner and introduction of a new product in the
country will be very easy (Bouzdine-Chameeva, Zhang and Pesme 2013).
Environmental – The various environment al laws in the country states that the country
does not allow the heavy use of smoking but the country do not have any laws which might
be affecting the business of Dan Murphy (Anderson and Wittwer 2015). The main aspect
which can be seen in this context is that the company will be able to provide its product in the
market in a very smooth way and the various NGOs of the company will not be posing any
king of problem for the product of the company (Anderson and Harada 2018). The policies of
Hong Kong has removed the various laws which allows the products with less than 30
percent alcohol to be tax free (Anderson and Harada 2018). This opens up major possibilities
for the company since they will be able to sell a lot of products in the country and people will
be readily accepting it.

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Legal – The various alcohol laws of the country is consistent with the various laws which are
prominent in different countries. Although the laws of Hong Kong are liberal than many
other countries but is also strict from the laws of China (Leenders and Chandra 2013). These
laws will be very helpful for the company to introduce alcohol in the country and they will be
not be facing any kind of legal problems from the government of the country. There will be
no legal barriers for the company to introduce new products in the country and they will be
not be facing any problem from establishing itself in the country and will be able to gain
customers form the country (Leenders and Chandra 2013).
Porter’s five force model
Power of Suppliers (moderate) - There are a presence of a lot of suppliers in the countries
so that company might be facing some problems from the suppliers in the country (Tinti et
al., 2014). Since the company will be introducing a new product in the country the company
might be facing some issues regarding the cooperation from the existing suppliers (Tinti et
al., 2014). Since the suppliers are already in closer relation with the existing liquor
companies of the company so Murphy needs to introduce better offer for the country which
will be making it irresistible for the suppliers to deny the offer. The problem from the
suppliers in the country is moderate form the company.
Power of consumers (high) - The power of the consumers in the country will be very high
since a lot of companies are already present in the country so the consumers have the habit of
going for the products which are moderately priced (Felzensztein 2014). The company needs
to be aggressive in its pricing strategy so that it can sustain from the various competition from
the existing companies in the country. The pricing of the various liquors in the country is
seemingly low which shows that the company will have to introduce some moderate pricing

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products in the country so that they can attract more customers and increase its sale in the
country.
Threat of substitute products (moderate) - A lot of campaigns have been done in the
country regarding the health issues of the people. So there might be slight challenge for the
company to cope with the certain products which the people of the country are using instead
of whiskey. Health drinks, fruit beer or other products which contain les amount of alcohol
are used by the people more in the present time which might be major problem for the
company. People might not be interested in the new product which is being introduced by the
company (Morrison and Rabellotti 2017).
Potential of the new entrants in the country (low) – The liquor industry of Hong Kong
is huge and so it is already hard for new companies to enter into the country. Owing to the
reputation of Dan Murphy it can be said that people will be readily accept the new product
which will be introduced by the company. New entrants in the liquor industry in Hong Kong
needs to come up with some unique way to sustain in the company and also held their
position in the market.
Competition in the industry (high) – The Company will be facing major competition
from the companies like East West Spirits Limited, Altaya Wines, and Chateau Cru Wine
Shop (Cohen, Corsi and Lockshin 2015). These are the major and the most renowned
distributors of liquor in the country which will pose major problems for the company. These
are giants in the liquor and people are more used to the products which are delivered by the
companies. The competition from the existing heads in the country will be very high. The
Company needs to promote their products in a very sophisticated way so that they can attract
more and more customers. The company will also need to make better relation with the
suppliers do that they can deliver their products to major shops all around the country.

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Creation of the customer value through Porter’s value chain:
Considering the concept of Porter’s value chain, it is understandable that the company
has the objective of the managing their primary activities in a professional manner and that is
evident with the efficiency of the company in managing the inbound and outbound logistics.
The company requires to improve their ability in developing the distribution network which
will be significant in the Hong Kong market for the management of the inbound and
outbound logistics inside the company. Along with that, the company is observed to have a
diversified presence in the social media platforms. The company uses the service of Facebook
and Twitter for interacting with the customers regarding the products and services that they
offer to their customers. Along with that, the services of Instagram is professionally managed
by the marketing team of the company for showcasing the products that the company offers
to their customers. Other than this, the usage of the promotional videos for educating the
customers regarding the features and quality of the products is seen to be well achieved with
the utilization of the infrastructure of YouTube.
Hence, it is understandable that the company is portraying greater values for their
customers through establishing the desired transparency in their business activities for their
customers. Other than this, the company is observed to be efficient in developing a strong
firm infrastructure which is prominent with the availability of the modern infrastructure and
utilities inside the company. Along with that, the success of the company in developing an
efficient training and developmental activities is observed to play an important role in
enhancing the ability of the company in delivering the desired quality in their services and
products. In addition to this, the efficient incorporation of the technology in the design and

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manufacturing of the products is considered to be substantial in increasing the quality and
production. Hence, it is evident that the company, with the incorporation of the technology in
the design and manufacturing of the products will place in a comfortable position in creating
good customer values through meeting the continuously increasing demands of the
customers.
STP:
Considering the concept of the segmentation, it is understandable that the company
will operate as a departmental store and retailer in the Hong Kong market for their products
and services.
With a precise look at the vision and mission statement of the company, it is
understandable that the company is dedicated in being one of the best beverage companies
operating in the Hong Kong beverage industry on the basis of the quality of the beverage
products and the ability of applying the competitive prices for their products
(Danmurphys.com.au 2020).
Criteria Target
Age With a look at the consumption
characteristics of the Hong Kong customers,
it is evident that the participation of the
customers belonging to the youth generation
is notably high (Lai 2015). With such a
consideration, the company is required to
target the customers belonging to the age
group of 20 to 45 years.
Gender The consumption characteristics of the

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beverage industry is pretty significant in
stating the participation of both male and
female customers and that is expected to
influence the company in targeting the
customers of both the genders.
Income As the company is dedicated in applying the
low prices for their products for the
development of the cost leadership in the
beverage industry, the company is expected
to target the customers belonging to the
income group of 160000 Hong Kong
Dollars or above.
Others Other than this, the company is expected to
target the customers with higher preference
towards the social media platforms. As the
company utilizes the social media for their
marketing and promotional activities, it
increases the ease of the company in
attracting their customers in a professional
manner.
Marketing mix at the product life cycle stages:
Considering the introduction of the selected product in the Hong Kong beverage
industry, it visible that the company requires to apply low pricing for their products, At the
same time, one of the main responsibility of the company at the introduction stage, will be to

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efficiently use their social media and online presence for effectively interacting with the
probable customers of the company (Stark 2015). During the growth stage, the company
requires to increase the number of distribution networks and the physical store outlets that
they are expected to use in the Hong Kong market as that will be crucial for the company in
reaching out to the customers with their products and services. Along with this, the company
is expected to put strong emphasis on effectively marketing and promoting their products and
services as that is substantial for the success of the company in this stage in managing the
business activities that lead the organizations towards the achievement of the desired growth
(Tao et al. 2018). The business activities of the company at the maturity stage will be to
continuously increase the number of the store outlets that the company is using for their
products and services and at the same time, the organization is required to provide the scope
to their employees in continuously improving their skills for enhancing the quality of their
products and services. Other than this, the company requires to enhance their ability in
developing the modern infrastructure for the manufacturing of their products which will
certainly contribute to the effective management of the sustainability of their business
activities.
Conclusion:
On a concluding note, the company has the capability of conducting an efficient
business in the Hong Kong beverage industry. However, the company is expected to face
tough competition in the beverage industry from the part of Altaya Wines, East West Sprits
Limited and Chateau Cru Wine Shop. The capability of the company in strengthening their
training and developmental activities, their capability in applying the low prices or
continuously improving the quality of the products, will be substantial for the company in
enhancing the sustainability of their business activities.

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Anderson, K. and Harada, K., 2018. How Much Wine Is Really Produced and Consumed in
China, Hong Kong, and Japan?. Journal of Wine Economics, 13(2), pp.199-220.
Anderson, K. and Wittwer, G., 2015. Asia's evolving role in global wine markets. China
Economic Review, 35, pp.1-14.
Bouzdine-Chameeva, T., Zhang, W. and Pesme, J.O., 2013, June. Chinese wine industry:
current and future market trends. AAWE Conference, Stellenbosch.
Cohen, J., Corsi, A.M. and Lockshin, L., 2015. China: A'show system'approach for better
marketing of Australian wine in China. Wine & Viticulture Journal, 30(4), p.62.
Danmurphys.com.au 2020. Danmurphys.Com.Au. https://www.danmurphys.com.au.
Felzensztein, C., 2014. The Chilean wine industry: New international strategies for 2020.
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Galbreath, J., 2014. Climate change response: Evidence from the Margaret River wine region
of Australia. Business Strategy and the Environment, 23(2), pp.89-104.
Lai, Ivan KW. "The roles of value, satisfaction, and commitment in the effect of service
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Livingston, M., 2014. Liquor regulation: beyond the night-time economy. In Stemming the
tide of alcohol: Liquor licensing and the public interest (pp. 97-102). Foundation for Alcohol
Research and Education, Canberra.
Morrison, A. and Rabellotti, R., 2017. Gradual catch up and enduring leadership in the global
wine industry. Research Policy, 46(2), pp.417-430.
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Tang, V.C.M., Tchetchik, A. and Cohen, E., 2015. Perception of wine labels by Hong Kong
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