International Marketing Analysis and Plan for Sunsweet Dried Fruit

This report provides a comprehensive analysis of Sunsweet's international marketing strategy, focusing on its potential entry into the Hong Kong market. It begins with an introduction to Sunsweet Dried Fruit, its product features, and the objectives of the marketing plan, including the use of Foreign Direct Investment as an entry mode. A detailed SWOT analysis assesses Sunsweet's strengths, weaknesses, opportunities, and threats. The macro-environment is examined using PESTLE analysis, considering political, economic, social, technological, legal, and environmental factors in Hong Kong. Competitive environment analysis, based on Porter's Five Forces, evaluates the bargaining power of customers and suppliers, competitive rivalry, and threats from new entrants and substitutes. The report further explores creating customer value through Porter's value chain model, covering primary and support activities. Finally, it discusses segmentation, targeting, and positioning strategies, along with marketing objectives and the marketing mix across different stages of the product life cycle.

Running head: INTERNATIONAL MARKETING
INTERNATIONAL MARKETING
Name of the student
Name of the University
Author Note

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Contents
1. Introduction............................................................................................................................2
1.1 About Sunsweet Dried Fruit.............................................................................................2
1.2 Features of Sunsweet Dried Fruits...................................................................................2
1.3 Objective of the marketing plan.......................................................................................2
1.4 Foreign Direct Investment as Entry Mode to Hong Kong market...................................3
1.5 Distribution strategies......................................................................................................3
2. SWOT analysis of Sunsweet..................................................................................................3
2.1 Strength of Sunsweet’s Dried Fruit..................................................................................3
2.2 Weaknesses of Sunsweet’s Dried Fruits..........................................................................5
2.3 Opportunities of Sunsweet’s Dried Fruit.........................................................................6
2.4 Threats of Sunsweet’s Dried Fruits..................................................................................7
3. Macro-environment analysis..................................................................................................8
3.1 Political factor:.................................................................................................................8
3.2 Economic Factor:.............................................................................................................9
3.3 Social factor:....................................................................................................................9
3.4 Technological factor.......................................................................................................10
3.5 Legal Factor...................................................................................................................10
3.6 Environmental factors:...................................................................................................11
4. Competitive Environment Analysis.....................................................................................11
4.1 Bargaining power of customers.....................................................................................11
4.2 Bargaining power of suppliers.......................................................................................12

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4.3 Competitive rivalry........................................................................................................13
4.4 Threats of new Entrants.................................................................................................14
4.5 Threats of Substitute products........................................................................................15
5. Creating customer values via porter’s value chain model...................................................15
5.1 Primary activities...........................................................................................................15
5.1.1 Inbound Logistics....................................................................................................15
5.1.2 Operation.................................................................................................................16
5.1.3 Outbound logistics..................................................................................................16
5.2.2 Human Resource Management...................................................................................16
5.2.3 Technology advances..............................................................................................17
5.2.4 Infrastructure...........................................................................................................17
6. Segmentation, Targeting and Positioning Strategies...........................................................18
6.1 Segmentation of the market...........................................................................................18
6.2 Targeting the best customers..........................................................................................18
6.3 Product Positioning........................................................................................................19
7. Marketing Objectives and Marketing Mix Strategies in different stage of product cycle...20
7.1 Product life cycle of the brand.......................................................................................20
7.2 Marketing objectives in different stages of PLC............................................................20
7.3 Marketing mix in different stages of PLC......................................................................20
References................................................................................................................................22

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1. Introduction
This research report provides a detailed analysis of market entry strategies of the brand
called Sunsweet. It has been identified that Sunsweet is world’s largest as well as most
famous brand of died tree fruits which includes prune, apricots, mangos and more. The brand
gained a popularity due to its different categories of dried fruit. This report analyses how
Sunsweet enters the Hong Kong market with its ‘Dried Fruit’ product item. Sunsweet
particularly represents almost 25% of the prune market across the globe and the brand
produces over 60,000 tons of famous Sunsweet Prune annually.
1.1 About Sunsweet Dried Fruit
Dried Fruit items at Sunsweet is significantly processed with its patented pitting
techniques that effectively tastiest part of prune near the pit; thereby the chance of
manufacturing sweet nutritious flavour is relatively high. The major dried fruits of Sunsweet
includes Speciality Fruit, Bulk packs and Prunes. The subcategories may include Amazing
Berry Blend, Premium Mango, Apricots International, Mediterranean Dried Apricots, etc,
1.2 Features of Sunsweet Dried Fruits
It has been identified that all Sunsweet’s delectable dried fruits include gluten free, fat
free and it is significantly an effective source of vitamin A, C Potassium as well as the Fiber.
It has been identified that sweet and delicious Apricots make for perfect snack which includes
almost 50 calories and this is made from 100% real fruit without any sort of added sugar.
This is significantly necessary for a healthy life style (Sunsweet.com 2020).
1.3 Objective of the marketing plan
Major objective of the marketing plan is to establish a strong and effective market
presence in Hong Kong FMCG market through direct selling and supermarket chains.

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Another significant market objective is to increase the profit margin in the foreign market by
developing a large customer base.
1.4 Foreign Direct Investment as Entry Mode to Hong Kong market
Sunsweet would use the strategy of Foreign Direct Investment as the entry mode to
Hong Kong market. According to Dikova and Van Witteloostuijn (2007), a foreign direct
investment is kind of an investment in the form of controlling the ownership in the business
in one nation through an entity based in another nation. Sunsweet’s headquarter originally
located in California and with FDI, it is supposed to enter Hong Kong market.
1.5 Distribution strategies
Sunsweet’s purpose of entering the Hong Kong market will be fulfilled by placing the
products or selling through the super-market chains. According to Batzer (2019)
supermarkets in Hong Kong are significantly accessed by people for grocery items. Thus, for
a fast selling expectation, supermarket is one of the significant choice. In addition to this, the
brand can also go with the choice of online marketing because due to technology advances,
brands or businesses find it easy to access and reach the audiences.
2. SWOT analysis of Sunsweet
As Sunsweet is most likely to create its emerging presence in an emerging market, thereby, it
is essential to analyse brand’s marketing strength and weaknesses which would help to
protect the brand in the new market. To identify and evaluate the brand’s strengths and
weaknesses, SWOT analysis has been performed in the following.
2.1 Strength of Sunsweet’s Dried Fruit
Strength Explanation

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Strong brand presence Sunsweet has a growing brand popularity
due to its quality and large variety of
products in the home market (Speciality
Dried Fruits: Apricot Fruit Packs, Date Fruit
Packs, Premium Mango, Philippine Green
Mango)
Health Awareness Program through
products
Sunsweet promotes its healthy living plan
through as the health awareness initiative:
such as the benefits and necessity of Dried
Fruits). The brand spreads the information
of eating prunes that support bone health
especially the postmenopausal women.
Thereby, the brand increased the market by
helping people to stay healthy
Longstanding commitment to Green
Future
Sunsweet is significantly committed to a
green future. For example, it reduces waste
to find innovative ways to utilize
manufacture by products, their commitment
to quality that goes beyond trusted products.
In addition, the brand is recycling as much
plastic, cardboard. Particularly, in 2013, the
brand recycled over 100 tons over plastic.
Such initiative enabled the brand to gain
market support from local and central
governments of the nation.

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Relatively wide variety of brands in the
dried fruit category stands as the
uniqueness
It is found that the Dried Fruit category of
Sunsweet, comes with three major
cateogory such as Speciality Dried Fruit,
Bulks Packs and Prunes. These are unique
categories in the dried fruit section that
hardly a brand has ever been able to produce
in the US market
Strong Online presence It is noted that Sunsweet’s online Gift
Outlet are relatively famous in the home
market as delicious fruits as well as juices
are just click away.
2.2 Weaknesses of Sunsweet’s Dried Fruits
Weaknesses Explanation
Limited Global awareness despite
increasing product categories and
longstanding record of operation.
It has been identified that even though
Sunsweet has large operational record in the
home market with its vast categories of
products, global presence of the brand is
limited. The emerging markets like China
and other Asian nations would have been a
significant market place for Sunsweet but
sticking to home market is drawback to its
global growth.
Lack of digital presence Undoubtedly, technology makes it easy for
businesses to gain more support, acquire

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large customer base, speedy reach due to
fast reach, easy monitoring, financial
feasibility of technology but the absence of
digital marketing delays the pace of
spreading awareness of its brand and
products.
Lack of proper sustainability initiatives It is true that agricultural brand/businesses
must contribute back to environment for
using the resources; so that sustainability of
natural resource is questionable.
Lack of distributional channels Despite the longstanding operation of
Sunsweet’s dried fruit manufacturing in the
home market, distributional channels of the
brand is relatively limited. Dried fruits are
usually sold through its own outlet, while
supermarkets are prominent locations for
selling such packet items of dried fruits.
Consequently, sales margin despite vast
categories of products is low.
2.3 Opportunities of Sunsweet’s Dried Fruit
Opportunities Explanation
Globalisation trends It is true that people across the world have
increasingly been health conscious, as
people across the globe have started

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maintaining a healthy diet instructed by
health experts. This trend is spreading
across all developing nations. Thus, dried
fruits gain the popularity through such
globalised trends. Accessing the right and
potentially demanding market is always an
effective marketing opportunity for the large
old brands like Sunsweet.
Favourable Hong Kong Fruits’ market According to Rabushka and Kress (2019),
growth of Hong Kong fruit market size
increased from 63.7 thousand metric tons in
2013 to 735.4 metric ton in 2017 thereby, it
can be mentioned that this volume is most
likely to go beyond 800 metric tons in 2020.
This is certainly a significant market
opportunity for the brand Sunsweet. It can
be mentioned that the growth is most likely
to remain consistent with the customer life
style of enhanced health awareness and this
trend has driven the demand particularly for
natural and healthy food.
2.4 Threats of Sunsweet’s Dried Fruits
Threats Explanation
Easy access to Hong Kong’s fruit market Due to emerging economy, and increasing

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rate of tourists in the nation, Hong Kong’s
government has been favourable towards
the foreign brands. Thus, market entry of
new brands is relatively easy. Particularly,
small and medium size businesses are most
likely to influence the local market of Hong
Kong
E-commerce threat Due to technology advances and
establishment of global ecommerce
platforms, foreign brands are targeting the
emerging markets. This trend is most likely
to affect the physically established brands in
the market.
Supermarkets selling international
brands
Supermarkets due to easy access to
international brands are selling the dried
fruits. This means that the supermarkets
make the most out of the fruit market.
3. Macro-environment analysis
In order to derive the favourable market insight for Sunsweet’s Dried Fruit, macro
environment analysis has been performed with the strategic tool called PESTLE.
3.1 Political factor:
It has been identified that political environment of Hong Kong is favourable enough
for foreign direct investment. Hong Kong received USD 115 billion in FDI in 2018, which is

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4% higher than in 2017 (Cheung 2013). According to Hsia and Chau (2018), rate of FDI has
increased by 2.7% particularly between 2017 and 2018 reach and this reaches nearly $2
billion. Thus, it can be mentioned that as the foreign investors are welcome to Hong Kong, it
is certain that organization Sunsweet would gain favourable support from Hong Kong’s
government when stepping the footprint in Hong Kong.
3.2 Economic Factor:
It has been identified that Hong Kong has been the largest trading power as well as
third largest centre in the world. Cheung (2013) mentioned that Hong Kong is often cited as
the most significant of model of liberal economics. It is noted that growth of GDP is around
3.8% in last quarter of 2.3% and it is most likely to increase by 2.3% in the coming 2020.
Cheung (2013) mentioned that such slowdown includes the shadow of China’s slow pace
economy, trade war across the globe. Nonetheless, it is noted that Hong Kong is most
continues to have solid public finance and possibility of change in the coming days is
relatively less Raco and Street (2012) Thus, it can be mentioned that new businesses like
Sunsweet’s Dried Fruit is most likely to gain tremendous financial outcome in the coming
days.
3.3 Social factor:
Due to emerging economies in Hong Kong, cultural and social life is leaning towards
the westernisation. It has been identified that as the rate of education in the nation is
increasing, people gather knowledge about every social context. However, Carter and Li
(2017) mentioned the fact that Hong Kong’s aging society as well as shrinking labour force
tend to pose significant challenges to growth as well as fiscal sustainability. Cheung (2013)
argued that Hong Kong’s social economy is particularly characterized by the foundations
along with the foundation with the sizeable philanthropy and the legacy of pronounced
government support and financing for the social enterprise. It has also been identified that

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recent development in green finance and venture philanthropy demonstrate a significant level
of engagement along with the social investment. Thus, it can be mentioned that the new
business like Sunsweet needs to focus on the social challenges to gain support from local and
state government in Hong Kong.
3.4 Technological factor
It has been identified that technology environment in Hong Kong is always favourable
towards trade. According to Carter and Li (2017) Hong Kong’s innovation as well as
technology industry along with Shenzhen ranked world’s second largest as per Global
Innovation index 2019. Due to technology advances and penetration, small business and start-
ups in Hong Kong increased by 18% along with the overall employment expanded by 51%.
Thus, the e-commerce platform in Hong Kong tremendously popular and the major e-
commerce channel is Alibaba, JD.com, Amazon and eBay (Trocki 2012). Thus, the emerging
businesses that step into Hong Kong’s food sector has the possibility of accessing consumers
through online selling portal. In addition, Sunsweet can significantly promote and market its
products and services through digital marketing. This would help the brand to reach the
quicker than the traditional marketing procedures.
3.5 Legal Factor
The legal environment for trade in Hong Kong is relatively favourable because Hong
Kong has freest economy with world free trade, limited taxation as well as minimal
intervention of the government. Harris, Chow and Symons (2012) mentioned that Hong
Kong does have an open door policy on trade and the nation does not charge tariffs on
exporting or importing goods. Such legal favouritism enables the foreign brand to enter the
market. However, this can also be challenging for the coming business because other
businesses are also exempted from tariff and taxation.