International Marketing Report: Tally's Group Limited in Hong Kong

This report examines the international marketing strategies of Tally's Group Limited, a New Zealand-based agribusiness company, as it plans to expand into the Hong Kong market. The report identifies key marketing challenges such as language and cultural differences, legal issues, and customer preferences, particularly in the seafood sector. It analyzes product policy decisions, including product mix, line, and positioning, and discusses appropriate pricing strategies, such as premium pricing, given Hong Kong's economic conditions and consumer behavior. The report also addresses promotional challenges, including cultural barriers and technological limitations, and proposes solutions for these challenges. The report emphasizes the importance of adapting marketing approaches to the local context, considering both economic and cultural factors, to achieve success in the Hong Kong market.

EXECUTIVE SUMMARY
International marketing strategies are related to those set of groups which are helpful in
doing. The present report is based on Tally's Group Limited which is going to establish new
business in Hong Kong. To become successful in the market the company should follow certain
strategies that are related to pricing, positioning and promotion of the business. The main target
area of the company is people of high society and youngsters. Apart from this, solution of the
various issues of the business has been identified. For making effective promotion of their
products the company should take quality of their product as the base through which they can
attract people towards their products.

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION ..........................................................................................................................3
3. Expected marketing challenges................................................................................................3
4. Product policy decisions..........................................................................................................4
5. Pricing decision and issues......................................................................................................5
6. Promotional challenges and issues of target country...............................................................6
7. Solutions of the challenges faced by Tally's Group Limited ..................................................7
8. Outlining the development and distribution of the proposed product/services should be
staffed...........................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
International marketing strategy is related to application of marketing principles on more
than one country. It is also related to the marketing activities that coordinate and integrated
across the multiple countries (Kumar, 2015). The present report is based on Tally's Group
Limited which is a privately owned New Zealand based agribusiness company which provides
sea food, vegetables as well as dairy products (About us, 2016.). The report assess the expected
marketing challenges. Other than this, product policy decisions has also been taken. Furthermore,
pricing and decision making issues are also identified.
3. Expected marketing challenges
It is the fact if Tally's Group Limited need to expand their business in other countries,
they have to face some marketing challenges. This are related to language, cultural differences
and legal difference of the country that are related to packaging, advertising and marketing of the
products and services (Petersen, Kushwaha & Kumar, 2015). The major problems of doing
marketing in another country are explained as below: Language differences: As the company is expanding their business in Hong Kong they
have to face the issues relating to their languages. The official language of New Zealand
is Maori while the official language of Hong Kong is English and Chinese (Brouthers,
Nakos & Dimitratos, 2015). This will create a little hurdles for Tally's Group Limited to
make conversation with the local people of Hong Kong. Cultural difference: Other than language difference there is also some difference is there
in culture of Hong Kong and New Zealand. Hong Kong is formed by Cantonese,
Shanghainese, British, Indians and Jews mainly (Brush, 2015). Other than this, the are
mainly following the Chinese concept related to family solidarity, family glory, saving
face and modesty. legal issues: There is also some issues are there which are related to marketing,
advertising and legal differences. For doing marketing in the related country the
organization have to face the major issues on making their product introduced. As, Hong
Kong is mainly related to Chinese culture they are having different legal regulations
regarding advertising policies of the product (Kitchen, 2016). On contrary to this, New
Zealand is having different policies and regulations regarding advertisement policies.

 Customer preference: The biggest challenge is food habit of people. As Hong Kong is
the second largest consumer of sea food per capita in Asia. But consumption of sea food
is reduced during some previous years. It will create some type of chances of loss for
Tally's Group Limited.
 Packaging policies of Hong Kong:There is different polices are there related to
packaging of the products such as the people are allowed to make plastic packaging for
carrying the products. But last year, green groups applauded the government's move of
implementing 50% charge on packaging of food in plastic bags (Wu & Voss, 2015).
According to this, Tally's Group Limited have to make focus on packaging of their food
items.
4. Product policy decisions
Product policy decisions is related to the strategic rules and regulations which is
promoted to enhance customer preference. One of the important element of marking mix is
product. So it much important for Tally's Group Limited to take relevant decision regarding
extension, adaptation, invention of product in market. Product decision: Product decision is related to major attribute of the products such as
quality and taste of the food product they are introducing in the market. Other than this, it
is also related to branding and packaging of the food products. While considering the
issues like the above the organization should decide the policies of their products. This
will help them to manage branding and packaging of the product which can attract the
customer an also follows the regulations of government (Dinnie, 2015). Product mix decision: It is related to the total products which are produced ans sold by
Tally's Group Limited. It states that how the organization can build their image in he
market with the help of quality of their products. Tally's Group Limited should work on
offering a range of products to their customers so they will get attracted from availability
of a great range of food products (Gerschewski, Rose & Lindsay, 2015). Other than this,
the company should also work on making product differentiation in the market so it will
be easy to get competitive advantage in the market. Product line decisions: Product line means group of products that are related to each
other. In this decisions the organization need to take decision regarding product line

stretching and product line filling. Product line may be short that means Tally's Group
Limited can increase their profits through adding some new products in their product line.
This can be analyzed through making a deep research on demand of the customers.
 Product positioning decisions: It is also related to decision of product policy as it helps
Tally's Group Limited to make effective positioning of their products in the market.
Positioning of the product is the way through which it is easy for the company to market
their products in market (Bohnsack, Kolk & Pinkse, 2015). Tally's Group Limited can do
propositioning of their products on the basis of price, size and quality of product. This
will play an important role in enhancing profits of the organization in Hong Kong.
5. Pricing decision and issues
As Tally's Group Limited is going to establish their business in another country it is very
essential for the organization to take efficient decisions regarding pricing of the products. This
will help to attract the new customers in market. As the inflation rate of Hong Kong is3.6%
while the average rate of inflation in New Zealand is 2.4-2.7% (Manev, and et.al, 2015). so it
will be more profitable to set their prices more. According to this, the organization should make
their prices on the basis of premium pricing. In this strategy the prices of the product are kept
above the market prices.
For this, Tally's Group Limited should introduce new product which has some unique
features and taste in it. Premium pricing is generally used when an organization is generally
serving some extra services to the customers than other service providers in the same industry.
Issues with pricing decisions: A range of issues are there which are affecting pricing
decisions of the organization. The major issue that can affect pricing policies of Tally's group
Limited are described as follows: Economic conditions of the country: Economic conditions of the Hong Kong can impact
on the pricing decisions of Tally's Group Limited. It is much essential to know about the
economic condition of the country at the time of establishing business in that place
(Kumar, 2015). As economic condition of the country are quite good and healthy, it is
much easier for the company to set high prices for their products. Government laws and regulations: Apart from the economic conditions of Hong Kong,
Tally's Group Limited should also take care about the laws related to pricing of the

products. For example Robinson-Patman Act limits the seller's ability for charging
different prices for the same products (Petersen, Kushwaha & Kumar, 2015). So it will be
a great issue for the organization in deciding prices of the product. It they are charging
extra money of the same food from different people, the organization will have to face
some legal issues.
 Competitors: Competitors are also considers as the major issue while setting prices of
their products. If the competitors are charging lower prices of seafood in Hong Kong, it
will make a huge loss for Tally's Group Limited to charge more prices of the same
products.
6. Promotional challenges and issues of target country
Tally's Group Limited is going to establish their new venture in Hong Kong and in this
country seafood are demanded at high rate. For this aspect, the company is establishing its new
venture for seafood. In order to build the corporate image and to acquire high market share, the
firm has to conduct heavy promotional activities (Johanson & Mattsson, 2015). Further, the
promotional activities must be highly effective so that firm can achieve their goals and
objectives. However, the company might face challenges and issues for promotions.
Furthermore, some of the promotional challenge can be described as follows:
 Culture Barriers: This place is the tourist spot and diversed culture people travel here.
For this aspect, the firm has to design such promotional tactics which does not undermine
their culture, beliefs and values (Hollensen, 2015).
 Economic Environment: The economic condition of this country is not efficient. Thus,
the company may face the issues while promoting their products if they are high priced
(Rana & Sharma, 2015). For this aspect, company has to provide discounts and other
offers to attract large number of customers (INTERNATIONAL MARKETING
STRATEGIES, 2016).
 Technological Aspect: There is less development of technological aspect in this nation
so the organization faces the issues while promoting their venture in Hong Kong.
7. Solutions of the challenges faced by Tally's Group Limited
As Tally's Group Limited is setting their business in the new country, so it is the act that
the have to face some challenges. For overcoming through the various issues the company have

to take care about certain things, so they will be able to find solution of their problems. Different
issues are there such as governmental issues regulatory issues and other issues that are related to
promotion, pricing and advertising of the products in the market (Brouthers, Nakos &
Dimitratos, 2015). For this the organization have to follow certain strategies which are described
as follows:
Solution of issues regarding pricing of the product: As Tally's Group Limited is facing
the problems of setting prices for their products, they should work on identifying various policies
that are related to finalizing the prices of the products according to their quality. Different types
of policies arr there through which it can be possible for the company to select the best policy
among the. For overcoming form this issues, the organization should work on using premium
pricing methods for selecting prices of their products. As the economic condition of Hong Kong
is much healthy and growing than New Zealand so it can be possible for the company to sale
their products on high prices. The another reason of selecting this pricing strategy is, people of
Hong Kong loves to eat seafood and also the country is the second largest consumer of seafood
in world (Kitchen, 2016). This will help to make good earning from the new customers. Apart
from this, as the organization is offering a range of food products in the market, so people will
get more attracted to consume the seafood.
Other than this, they can also use penetration pricing strategy through which they will be
able to get more market share (Wu & Voss, 2015). In this strategy prices of the products are
settled relatively lower than other competitors so that the organization will be able to gain more
profit in market. As lower prices always helps the companies to attract people towards the
products. But on the other hand it can also create a loss for the organization.
On the basis of the both the suitable strategy it is much beneficial for Tally's Group
Limited to earn profit in the market. As the economic condition of Hong Kong is much healthier
so the people will be able to afford the prices of the products.
Solution of the problems regarding promotions of the products: As different rules and
regulations are there in Hong Kong this will be a major issue for the organization. For
overcoming from issues it is essential for Tally's Group Limited to now about all the legal factors
related to advertising and promotions of the products. They should make promotion of the
products on the basis of quality and taste of their products (Dinnie, 2015). This will help to

attract the customer who loves sea food and as Seafood is much popular eatable thing in Hong
Kong it will be a great strategy for Tally's Group Limited.
Solutions relating distribution of products: It is much essential to effectively make
distribution of the products in the market so people will be able to get the services of the
company. For overcoming from this issue, Tally's Group Limited should provide availability of
product through both online and offline mode. Online mode will help to save time and cost of
both customer and company (Gerschewski, Rose & Lindsay, 2015). Other than this, the
organization also will be able to get more attention of customers. Furthermore, customer also
will be able to get more services from the organization which is beneficial for the growth of the
company.
8. Outlining the development and distribution of the proposed product/services should be staffed
The company is going to establish the seafood venture at Hong Kong and for this aspect,
company has to develop the distribution channels so that product can be staffed in an appropriate
manner (Frow and et.al., 2015). Furthermore, it can be suggested to Tally Group Limited that
combination for new and existing personnel must be done. The organization is required to hire
new personnel who are basically belong to Hong Kong in order to follow the government policy
of providing employment to the natives and also transfer the people from the New Zealand to
Hong Kong. Furthermore, it is essential to hire expatriates as the people of Hong Kong does not
possess highly efficient and competent employees. Moreover, this will help the restaurant to
provide the seafood to the visitors at those place where they are accommodating. Furthermore,
the company can adopt the distribution of their product and services in an effective manner
(Demangeot, Broderick & Craig, 2015). For this aspect, the Tally group can provide the services
using the several channels such as online order system, mobile application for ordering, etc. This
will help in reaching the larger market in Hong Kong. For this aspect, company has to hire new
personnel so that they can reach their target market by providing quick services at their doorstep.
However, this will involve heavy cost but the return on investment is more in the long term
business (Brush, Edelman & Manolova, 2015). This at the end will help in achieving their goals
and objectives. Furthermore, the company can also hire the managers from overseas so that best
management style can be practices at this new venture. Although the organization has to spent
high amount of cost on this manager but this will help the company in managing the employees

and gaining their commitment for longer period of time (International Marketing Strategy,
2013).
CONCLUSION
The aforementioned report concludes that it is essential to make the international
marketing strategies. This helps the new venture to establish and get success in the international
market. Furthermore, the company achieves the target in the new country. To achieve success in
global market, the organization has to make marketing strategies in which product decisions are
taken, pricing decisions and issues in taking those decisions are identified. Along with that,
challenges faced while planning for promotional activities are recognized. After analyzing them,
the report states the solutions for them. Thus, it helps in achieving success in the international
market.

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