International Marketing Report: Old Chang Kee in the Taiwan Market

This report provides an in-depth analysis of Old Chang Kee's international marketing strategy, specifically focusing on its potential entry into the Taiwan market. The analysis begins with an overview of the current market situation, identifying the target market as consumers of snacks and drinks across various demographics. It then delves into a competitor analysis using Porter's Five Forces, evaluating the bargaining power of customers and suppliers, the threat of new entrants and substitutes, and competitive rivalry. The report also includes a Gantt chart outlining the timeline for key milestones, such as market analysis, segmentation, and competitor evaluation. Furthermore, the report references the food and beverage industry's growth in Taiwan, citing revenue statistics and the increasing number of businesses in the sector. The competitor analysis identifies key players like Formosa International and Senli Food Industrial & Manufacturing. Overall, the report offers a strategic marketing plan for Old Chang Kee's expansion, providing insights into market dynamics, competitive pressures, and strategic recommendations.

International marketing
Old Chang Kee
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Market current situation
The market current situation analysis includes the details related to the target market of
customers in the current market of the company.
Target market
The target market is the group of customers that is decided by the company to offer the products
and services. The target market is selected on the basis of segmentation and there are four major
segments which include demographic, behavioural, geographic and psychographic segmentation
(Kotler, 2015).
Old Chang Kee Company doesn’t believe in targeting any particular segment due to which it
makes use of a differentiated marketing strategy. The company target the customers who make
the consumption of snacks. In the Taiwan market, the customers from the range of young
children to old are targeted, includes both male and female without any race or religion. The
company offer the products which include snacks and drinks mainly. These products can be
consumed by any person who’s ever like to consume it. Old Chang Kee Company considers the
traits and lifestyle of the people in the market. This segment mainly shows the consumer
preference for the product that is offered by the company. In Taiwan, the company will offer the
products in both rural and urban market.
This strategy was adopted by the company after considering Taiwan’s food and beverage
industry. The food and beverage industry in the Taiwan market record the revenue of NT$111
billion (US$3.39 billion) in the first three months of 2016. According to the latest statistics of the
ministries of finance and labour, this is found that food and beverage sector comprises of

124,124 businesses in the year 2015 which was approximately 44.06% up from the previous
year. This leads to the rise in the revenue in the industry (Ministry of Foreign Affairs, 2018).
Competitor’s analysis
Competitor’s analysis in marketing and strategic management shows the evaluation of the
strengths and weaknesses of the competitors in the market of Taiwan. The framework that is
used by the Old Chang Kee for evaluating the competitors is Porter’s five forces.
Porter’s five forces
It is a tool that helps the company in analyzing the competitors of business (Hollensen, 2015).
The below given is the competitor's analysis of the Taiwan market for Old Chang Kee Company.
Bargaining power of the customers: - Old Chang Kee Company will face the high bargaining
power of the customers in the market of Taiwan due to the availability of the diverse range. OCK
Company found the high possibility of switching preference and taste. The food and beverage
industry is growing due to which the customers are able to find the diverse range of product
choices with the different prices.
Bargaining power of the suppliers: - Old Chang Kee Company makes the annual purchase
from the overseas market generally. Similarly, in the market of Taiwan, the company will get a
supply of products from the overseas market. The company depends on the supply of major
ingredients that is crops, food material and livestock. In the market of Taiwan, there is the
availability of many food providers which shows that a large number of suppliers are also
present. Though, these suppliers ask for the high amount of the new entrant in the market due to

which the company don't find the major difference in the cost (Frynas and Mellahi, 2015).
Therefore, it is a suitable option for the company to get the products from the overseas market.
The threat of New Entrants: - The food and beverage industry is growing in the market of
Taiwan due to which many overseas companies are willing to expand their business. This shows
that there is an opportunity for companies to expand the business. Though, these companies need
a high amount of capital which might be a huddle for expanding the business. The analysis
reflects that OCK Company has a moderate threat in the market of Taiwan.
The threat of substitutes: - The products that are offered by the company are highly savoury in
nature and are affordable for the customers. Still, there is the possibility of a moderate threat of
substitutes because of price sensitivity and the customer loyalty towards their existing companies
in Taiwan market (Frynas and Mellahi, 2015).
Competitive rivalry: - The competitive rivalry is highly intensive in the market of Taiwan
because of the presence of the numerous companies who offer the food and beverages products.
The major competitors of OCK in the market are Formosa International, Senli food industrial
and manufacturing and many others. Senli products are increasing in demand because the
company offers organic food material and snacks (List of companies worldwide, 2017). In
addition, Formosa Company offers the food and different spices that enhance the food. These
two companies will give tough competition to the OCK when they expand their business
operations (List of companies worldwide, 2017).
Gantt chart

Milestone Timeline Duration Responsible
person
Description
Market current situation
Analysing the
market
October 2018-
November 2018
2 months Research team The research will be
conducted for the
Taiwan market.
Segmenting the
target audience
December 2018 1 month Marketing team To select the target
audience it is
essential to segment
the audience.
Selection for
target market
January 2019 to
Februarys 2019
2 months Marketing team Once the
segmentation is done
by the company there
is need to selecting
the target market.
Competitor’s analysis
Analysing the
competitors
present in the
market
March 2019 to
May 2019
3 months Research team The competitor’s
analysis is done by
the research team for
identifying the market
intensity.

References
Frynas, J.G. and Mellahi, K. (2015). Global strategic management. USA: Oxford University
Press.
Hollensen, S. (2015). Marketing management: A relationship approach. India: Pearson
Education Limited.
Kotler, P. (2015). Framework for marketing management. India: Pearson Education.
List of companies worldwide. (2017). Formosa International Co. Retrieved from:
http://www.listofcompaniesin.com/Formosa_International_Co_Company_2830241.html
List of companies worldwide. (2017). Senli Food Industrial & Manufacturing Co., Ltd.
Retrieved from:
http://www.listofcompaniesin.com/Senli_Food_Industrial_Manufacturing_Co_Ltd_Com
pany_2744276.html
Ministry of Foreign Affairs. (2018). Food and beverage revenues hit a new high in Taiwan.
Retrieved from: https://taiwantoday.tw/news.php?unit=6,23,6,6&post=12513