International Marketing Strategy: Slimming World in Hong Kong

This report provides a comprehensive analysis of Slimming World's international marketing strategy, specifically focusing on its potential entry into the Hong Kong market. The introduction highlights Slimming World's background, its Free Foods concept, and the rising obesity issue in Hong Kong. The report justifies the entry into the Hong Kong market by emphasizing the increasing demand for slimming products, good profitability, availability of distribution channels, and low competition. It outlines Slimming World's aims and objectives for the Hong Kong market, including weight management and promoting physical activity. The report then delves into market segmentation, targeting, and positioning, covering criteria for selecting market segments, segmenting consumer markets geographically, demographically, psychographically, and behaviorally. Different target marketing strategies are evaluated, including undifferentiated, differentiated, concentrated, and micromarketing. Furthermore, the report discusses differentiation and positioning strategies, exploring product, service, channel, people, and image differentiation. A positioning map is included to visualize the brand's position. Finally, the report recommends potential market entry methods, such as mergers and acquisitions, franchising, and joint ventures, and provides criteria for selecting the most appropriate method. The report concludes with a detailed examination of how Slimming World can successfully position itself in the Hong Kong market.

RUNNING HEAD: International Marketing strategy 0
[Type the company name]
International Marketing strategy

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1. Introduction
Slimming World is UK based weight management organisation. The company was
established in 1969. There are more than 4500 slimming world trained consultants.
The company received the Investors in People Award in 1997. Slimming World Free
Foods is the revolutionary research of Slimming World. Free Foods are low in fat
and energy density ((Souchon, et. al. 2016). A person feels satisfied with relatively
few calories. The company focuses on the health conscious consumers.
1.1. Reasons for Entry Hong Kong Market
1.2. About the Brand
According to the report of World Health Organisation, obesity is a major problem of
the population of Hong Kong. The western fast food culture is the main reason
behind overweight. In this scenario, the awareness of health is increasing and the
entry of Slimming World free food will gain importance. As slimming food would
help to fight with obesity.

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1. New and high market demand: The demand for slimming products is
continuously increasing in Hong Kong (Papadopoulos & Heslop, 2014). As, it
has contributed 9% growth rate in 2011.
2. Good profitability: The slimming products are meal replacement products and it
has recorded highest value growth 17% in 2011. The meal replacement
products are more expensive which is helpful to the company in gaining more
profits.
3. Availability of existing distribution channels to sell the selected food and drink:
The Marks and Sparks have availability of British food. It is easy for the
company to launch products at such platform (Amine, 2015).
4. Low existing competition: There is low existing competition in the market
because there are very few firms of slimming foods in Hong Kong. With the
low competition there is no price pressure.
1.3. Aim and Objectives
The aim of Slimming World Free Foods is to enter in market of Hong KONG.
Mainly, the objectives of the company are:
1. Maintain weight of women during pregnancy.
2. Regulate and control weight by free foods.
3. To introduce physical activity through Body Magic programme.
2. Justification and Evaluation of the Selected Target Market
The modern strategic marketing includes segmentation, targeting and positioning.
2.1. Segmentation
Market segmentation is used by the companies to subdivide market into segments having
similar needs, interest, tastes and characteristics. It helps in reaching customers with products

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that match their needs more efficiently and effectively (Clark, et. al. 2016). The chosen
market depends on the following aspects:
2.1.1. Criteria for Selecting Market Segments
The market segmentation identifies customers who more like to purchase product that is
suitable for them. It minimises excess of resources as well as time spent on marketing
inappropriate products to the customers.
The following factors are selected for market segments.
Table 1: Criteria for Selecting Market Segments
Criteria Definitions Justification and Evaluation
Measurable The market segments can be
measured in terms of sales
volume.
Kowloon is the urban city and
has the largest population in
Hong Kong. The market research
can be conducted to measure
willingness of people to consume
slimming food.
Accessible It is important to consider
channel of access before
segmenting a market, such as
outdoor advertising, television
commercials, , transportation,
telecom, social media campaign
and more.
Apart from grocery stores and
UK supermarkets, the slimming
foods can be accessed by social
media like Facebook, instagram
and mobile applications
(Armstrong, et. al. 2015).
Durable Longevity is important in a
segment. It should be durable
with clearly defined
characteristics.
People are health conscious and
Slimming food is healthier than
any other food. The prospective
consumers are going to consume
it daily.
Substantial A viable market segment is a Due to health consciousness, the

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standardised group with defined
characteristics such as age group,
brand perception etc.
demand for slimming food is
going to rise.
Unique A perfect market segment should
have internally similar
preferences and differentiable
and unique externally.
The Slimming food can be
cooked, the guidance is provided
for that. It also has ready to eat
option. The company also
provides week plans to reduce
weight.
2.1.2. Segmenting Consumer Markets
Table 2: Criteria to Segment Consumer Markets
Criteria Definitions Justification and Evaluation
Geographic
segmentation
Geographic segmentation splits
the market based on different
geographical units, such as
i. Nations
ii. Regions
iii. States
iv. Counties
v. Cities
The selling in Hong Kong
suggests that there is large
number of white collar customers.
They are highly educated and
health conscious. The people of
the country are familiar to the
brand.
Demographic
segmentation
Demographic segmentation
focuses on people and segments
market on the basis of
customer’s age, need, gender,
size of family and more. The
The demographic segmentation is
identified on the basis of:
(i) Age: Teenagers to
mid age customers,
as they are more

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market segmentation is done on
the basis of demographic
variables like:
i. Age
ii. Gender
iii. Income
iv. Education
v. Social Class
vi. Nationality
conscious for
health.
(ii) Gender: Both male
and female.
(iii) Income: Middle to
high.
(iv) Education: Middle
to highly educate.
(v) Social class:
Health conscious
class or groups.
(vi) Nationality:
Chinese

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Psychographic
segmentation
The marketer takes time to know
current and past customers
before doing psychographic
segmentation. It is difficult to do
segmentation psychographic
because the characteristics used
to segment are less real such as
social class, values and
personality.
Psychographic variables include:
i. Interests
ii. Opinions
iii. Personality
iv. Self-Image
v. Activities
vi. Values
vii. Attitudes
The psychographic segmentation
is done on the basis of:
(i) Interests: People
who are suffering
from obesity.
(ii) Opinions: The
people believe in
maintaining weight
(Kraus, et. al.
2016).
(iii) Personality: The
people who want
to see themselves
fit.
(iv) Self-image: People
like to do workout
and having healthy
slimming food.
(v) Activities: People
consume slimming
food to improve
their health.
(vi) Values: People
value slimming
food to achive
good health. So,
they do not mind
buying such food.
(vii) Attitudes: People
are looking to
exchange for
western food.
Behavioral The behavioral The behavioural segment can be

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segmentation segmentation segments market
on the basis of knowledge,
attitude and response to a
specific product.
It includes:
i. Usage Rate
ii. Benefits from manufactured
goods
iii. Brand Perception
iv. Price Awareness
v. Incidents and holidays
vi. User Status (First time and
regular)
evaluated as:
(i) Usage rate:
Unlimited use as
enrich in proteins.
(ii) Benefits from
manufactured
goods: The food
benefitted in
toning and
slimming.
(iii) Brand perception:
The people are
going to have
loyalty for the
brand as it is a
established UK
brand and has
achieved many
awards.
(iv) Price awareness:
The price is higher
because of good
fats and high
quality.
(v) Incidents: People
make it a part of
routine and have it
regularly.
(vi) User status: It is a
part of routine diet.

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2.2. Targeting
The consumers are conscious in Kowloon for health as their obesity percentage is
continuously increasing. The slimming World Free Food is enrich in proteins and
less in carbs. The slimming food contains less fat and contains high level of energy.
The features of slimming food are:
(i) The food contains no preservatives.
(ii) It contains high quality and enrich in vitamins
(iii) The food is ready to eat.
2.2.1. Target Marketing Strategies
A target market is a group who most like to buy products and services of a company. There is
different type of marketing strategies which focuses on the entire market. The company
makes choice of one or more segments at the time of targeting market.
Table 3: Target Marketing Strategies
Target
Marketing
Strategies
Definitions Justification and Evaluation
Undifferentiat
ed marketing
The
undifferentiate
d marketing
strategy
segments the
The company focuses on the mass market
philosophy because it considers common type of
product than the different products for all
(Skarmeas, Zeriti & Baltas, 2016).

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market like
just one big
market and
considers no
individual
segments. The
expectation of
all consumers
is covered in
one type of
product. The
company
focuses on
Mass market
philosophy.
Differentiated
marketing
The
Differentiated
marketing
strategy
considers
several
prospective
markets and
designs
specific
marketing
mixes for
different
segments.
– It’s goal
is to
achieve
The differentiated marketing strategy has helped
company to produce products to understand need
of different segments. It has helped in generating
profits and increasing sales volume.

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10
higher
sales
volume
and
profits.
– This
strategy
is
expensiv
e than
undiffere
ntiated
marketin
g
Concentrated
marketing
– The
company
identifies
various
segments
but
targets
just one
segment.
– It targets
single
market
which
captures
small
share of a
market.
– Suitable
for the
– The company focuses on the particular
segment of market.
– The company could target single market
sucha s food industry. It has choosen diet
food from food industry (Samaha, Beck &
Palmatier, 2014).
– The company has done expenditure on
research and development to focus more on
customers.
– But this strategy is less attractive and results
in low profits.

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11
companie
s with
limited
resources
– Focuses
on
research
and
developm
ent to
meet
need of
customer
s.
– More real
and
efficient
Micromarketi
ng
Micromarketi
ng strategy
segments on
individual
level. It tailors
products and
services
according to
the taste and
need of
specific
individuals.
– Local
marketin
g
– Advertisi
The company make use of strategy to focus on
the individual specifications.
- Marketing research
- Advertisement

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ng

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13
2.3. Positioning
Positioning is the last stage of segmentation. The company tries to create image of
products in the market through positioning. Slimming World Free Food targets the
middle and higher income group. It involves implementation of targets.
2.3.1. Choosing a Differentiation and Positioning Strategy
Differentiation and positioning both are last steps of marketing strategy. It helps to know
which customers company want to serve. Positioning is the process of arranging a product to
occupy a place in comparison to competitor products. Differentiation is the process of
differentiating products in terms of specifications to create value in the mind of consumers.
Slimming World free food practices differentiation strategy (Elrod, et. al. 2015). The
company has quite different food in quality which differentiates it’s products. It has helped
company to gain competitive advantage. The company justifies prices by providing quality of
food.

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Table 4: Target Marketing Strategies
Target Marketing
Strategies
Definitions Justification and Evaluation
Product
differentiation
The product differentiation is
the practice of differentiating
products or services from
others. It makes products eye-
catching to specific target
market by fulfilling basic,
expected and desired needs of
customers.
Slimming World Free foods
evaluates product
differentiation strategy to
make products different from
the competitors. I
Service
differentiation
The companies use service
differentiation for speedy,
convenient and careful
delivery.
Service differentiation is used
by the company to deliver
products carefully in Hong
Kong. It focuses on quality
differentiation.
Channel
differentiation
The companies practice
channel differentiation to gain
competitive advantage by
designing channel’s coverage,
and performance.
Slimming World has
distinguished itself by
high quality direct
channel. It helps in
building competitive
advantage (Wu, et. al.
2016).
People
differentiation
People differentiation helps in
gaining competitive advantage
by hiring and training in a
better way than competitors.
The company employs a good
reputation because of the
recipes of dieticians in
experimenting free foods.
Image
differentiation
Image differentiation helps in
value proposition of products.
This way the company can
differentiate products than
competitors.
The image differentiation has
helped company in creating
value. As, Margaret Miles-
Bramwell is enough to build
image of company.

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2.3.2. Differentiation and Positioning
The positioning map shows awareness of consumers for brands versus products of
competitors on buying proportions.
For example:
Figure 1: Source: by author
Positioning Map of Slimming World Free Food and other Foods

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3. Market Entry Recommendation
Slimming World Free Foods can enter in the Hong Kong market by three ways:
 Merger and acquisition: The Company can enter in the market by merger and
acquisition. It helps companies to expand market easily. Such way the
company can become part of the acquiring company.
 Franchise: The company can itself setup it’s franchisee in HongKong. The
country does not have much weight management companies. So, Slimming
World can easily get popularity by setting franchisee.
 Joint venture: Slimming World can joint venture with other companies in
Hong Kong. The established company of the country can help in promoting
products of the company (Samiee, Chabowski & Hult, 2015).
3.1. Criteria for Selecting Appropriate Market Entry Method
i. The company’s objectives are to manage weight of the population of Hong Kong and
reduce percentage of obesity (Zeriti, et. al. 2014).
ii. The company has 4500 consultants and 16,000 groups in UK.
iii. Slimming World is a UK based company and provides slimming food in many countries
already.
iv. The company understands the obesity issue and knows skills to deal with it.
v. There are few weight management companies in Hong Kong, so there is less competition
in the country (Keillor, Hult & Babakus, 2015).
3.2. Market Entry Recommendation

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The way of entering in a foreign market can have a significant influence on the results.
Expansion of the company into foreign markets can be achieved by following methods.
Table 5: Alternative market entry methods
Alternative
market
entry
methods
Definitions
Exporting The products can be exported in Hong Kong. It is the method of direct selling. The
products can be produced in the domestic country and can be exported to Hong Kong.
The company does not require making investment in the target country. The export
involves only marketing expenses.
Licensing Licensing is permission for the company to use property in the target market. It is
usually intangible such as patents, royalty, trademarks and manufacturing techniques.
The licensor charges fees for using the rights of intangible property (Leonidou, et.
al.2017).
Joint
Venture
In a joint venture two or more companies invests with the intention of working
together and earning profits. The access to distribution channel is also benefit of joint
venture.
Foreign
Direct
Investment
Foreign direct investment is investment made by a company in other country with the
interest of expanding business. It transfers resources like technology, workforce and
capital to the target country. FDI can be made through acquisition or by establishing a
new enterprise.

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Exporting
Licensing
Level of involvement
Joint venture
Foreign Direct Investment
(Source: by author)
Market entry methods and involvement in international market
4. Marketing Objectives and Marketing Mix Strategies
There are four stage of products in it’s life cycle, Introduction, Growth, Maturity and Decline.
The lifecycle of Slimming World Free Foods is explained in sales and profit relationship (Di
Maria & Ganau, 2014). The company’s short term and long term aspects are explained
through various stage of product.
Figure 2: Application of Concept of Product Life Cycle in Slimming World Free Foods

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Table 6: Product Life-Cycle and Marketing Mix Strategies
Short Term Longer-term
Time January – June
2018
July –
December
2018
From
December
2018
Unknown
Characteristic
s
Introduction Growth Maturity Decline
Sales Sales are low
and brand
needs to
establish image
by promotions.
Rapid increase
in sales as
Slimming
world Free
Foods name is
well-known so
the company
enjoys increase
in production
of sales.
Peak in the
sales of the
company it is
well
established.
The company
needs to
modify
products in
packaging and
quality to gain
competitive
advantage.
The sales will
be declining at
the time of
saturation in
market. The
customers
switch to other
products and
sale declines.
Costs High cost per
customer as
Slimming
World Free
foods need to
invest more
capital in the
market of
Kowloon to
develop.
Average cost
per customer
as sales are
increasing
rapidly
(Johanson &
Mattsson,
2015).
Low cost per
customer as the
company
enjoys
advantage over
competitiors.
Very low cost
per customer
Profits Negative Rising profits Increase in Profits are

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because of
huge
investment in
research and
development,
promotional
activities,
property for
setting up.
because of
increase in
sales.
sales and lower
production cost
results in
higher profits.
Now the
company has
also gain brand
loyalty by it’s
customers.
declined due to
decline in sales
and switching
of customers to
other products.
Customers Customers
who like to try
innovative
products.
The customers
like to buy
products as the
product is
already
popular in the
market.
Due to brand
loyalty,
Slimming
World Free
Food has
majority of
customers.
The customers
are less
interested in
buying
products.
Competitors Few as as no
one easily want
to enter into
Kowloon
market.
The number of
customers is
growing as
they realised
the profit of
Slimming
foods. The
competitors
also want to
launch
products and
gain market
share.
The company
has already
huge market
share. No
competitor
would like to
join the market
when there is
not much profit
to make
(Baker, 2014).
The number of
customers is
declining due
to saturation.
Marketing
Objectives
Create product
awareness like
Margaret
The increasing
sales penetrate
in
The company
can make
changes in
The
expenditure is
reduced when

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21
Miles-
Bramwell is
chairman of
the company
and famous in
the fitness
industry. The
samples of
slimming food
can be
distributed in
the croeded
area of Hong
Kong.
supermarkets
and grocery
stores. It has
resulted in
maximising
market share.
products time
to time such as
differentiation
to maximise
profits.
the product is
not that
popular. When
a product is
popular the
company
changes
packing and
size.
Marketing
Mix Strategies
Product Offer a basic
product with
amazing taste.
Offer product
extensions by
making
available many
options in diet
food. The
tutorials can
also be
providing to
use products in
a proper
manner.
Because of
maturity stage,
the company
can diversify
by making
available more
variety of
products.
The company
discontinue
products which
are less
demanded. It
helps in
keeping
product cost
low.
Price Higher prices
to cover
development
Price is
retained to
penetrate
Match prices
with
competitors to
It causes price
cut to
Slimming

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22
and
promotional
expenses.
market avoid price
war.
World Free
Foods when
the sales are
declining.
Distribution Build selective
distribution in
the UK grocery
stores and
supermarkets.
Build intensive
distribution
such as stores
in crowded are
and
departmental
stores.
Build more
intensive
distribution to
observe sales
force in the
market of
Kowloon
(Nagle, Hogan
& Zale, 2016).
The company
Focuses on
popular
supermarkets
to phrase out
unsuccessful
outlets.
Advertising Build product
consciousness
among
adopters and
dealers by
social media
and by
slimming week
plans of
Margaret
Miles-
Bramwell.
Build
awareness and
interest in the
mass market
by
advertisement.
The company
can use it’s tag
line such as
“because you
are amazing”
to gain loyalty
Stress brand
differences to
competitors by
making
available ready
to eat food. It
is the
necessities of
consumers to
have healthy
food with
enrich protein.
Reduces
promotional
campaign and
tries to retain
customers by
offering
delivery
service and
discounts.
Sales
Promotion
Use heavy
sales
promotion to
enrich trial.
For example
by providing
coupon to get
Reduce to The
sales
promotion can
be reduced
after increasing
demand of
customers.
Increase to
encourage
brand
switching such
as offering
discount on
bulk purchases.
Slimming
World Free
Foods reduce
promotion
campaign to
minimal level

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23
free samples
and diet plans.
Source: Adapted by Kotler, (2003)

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24
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