Marketing Plan - Export to Hong Kong

Plan Marketing Hong Kong

Lorena Gaete

IG 105

Jason Evans

December 14, 2016

        The objective of following marketing plan is to show, analyze the viability of the Hong Kong market, looking business opportunities of growth in the expansion of a new product. For which are analyzed important factors considering the export from Canada.

1. What product or service will you offer? Explain the rationale. Consider:

Market strategies

Business Opportunity

Business opportunity does exist in this market, because of wine industry in Hong Kong has increased since, the Hong Kong government removed all duty-related customs and administrative controls for wine in February 2008.  Wine Industry in Hong Kong (2016)

Target Market        

According to Wine Industry in Hong-Kong (2016), In general wine market in Hong Kong has become in more sophisticated and there is increasing needs and opportunities for segmentation in this market. Targets will be those middle class wine drinkers, who are more concerned about the social aspects of wine drinking and have the desire to appreciate the quality and style of wine.

Product

Wine

Price

At this stage of business introduction which is focus is laid on building market share, to take a competitive stance in pricing, especially to the lower end products. Price of beverage wine has to be in line with the current offers in supermarkets and department stores, in particular.

Promotion

Various wine promotional activities, including seminars, wine tastings, receptions and food pairings, also take place in Hong Kong. The advertising will be as a major communications channel for establishing the image of the new product.

Place

The products will be distributed to companies related to wine shops, and wholesalers.

Entry method

Indirect exporting among wholesalers and agents.

2. Details of any modifications from the domestic product/service that are required to meet this new target market.

Hong Kong’s wine imports have expanded fast since the elimination of import duties in February 2008. This product does not have modifications to enter the market in Hong Kong. Only, the legal regulatory factors that will be mentioned in item number five.

3. Provide a description of the country. Consider factors within the country that will have an impact on a company’s ability to do business there.

Environmental Profile

Demographic

Situated at the south-eastern tip of China, Hong Kong is ideally positioned at the centre of rapidly developing East Asia. With a total area of 1 104 square kilometers, the territory comprises Hong Kong Island, Kowloon Peninsula, and the New Territories. Hong Kong’s population is about 7,3 million.(Focus Economic, 2016)

Small Government

Hong Kong has a small and efficient government structure. Corporate and personal taxes are low and simple to calculate. The HKSAR Government is well known for its efficiency, transparency and fairness. It readily lends a helping hand to business people and companies under the guiding principle of ‘market leads, government facilitates’.  (CIA, 2016).

Global Services Centre

Hong Kong was the world’s 12th largest exporter of services in 2007. Travel and tourism, trade-related services, transportation services, financial and banking services and professional services are the main components of the city’s trade in services. (CIA, 2016).

Business Climate

Free Trade and Free Market Hong Kong advocates and practices free trade a free and liberal investment regime with no trade barriers, no discrimination against overseas investors, freedom of capital movement, well-established rule of law, transparent regulations, low and predictable taxation. (CIA, 2016).

Control of Corruption

The index for Control of Corruption in Hong Kong captures perceptions of the extent to which public power in Hong Kong is exercised for private gain, including both petty and grand forms of corruption, as well as capture of the state by elites and private interests. (The Global Economy).

Economic Information

According to Focus Economic (2016) the following are the major economic indicators:

• Hong Kong’s economy expanded by 1.4% year-on-year in real terms in the first three quarters of 2016, after growing by 2.4% in 2015. For 2016, the economy is forecast to grow by 1.5%. (Focus Economic, 2016).
• Amid the visible decline in tourist arrivals, the value of retail sales, in nominal terms, dropped by 9.6% year-on-year for January-September 2016, after the decline of 3.7% for 2015.
• The labour market conditions remain tight. The seasonally adjusted unemployment rate was 3.4% for the three-month period ending October 2016, compared with 3.3% for 2015.
• Consumer prices increased 2.7% year-on-year in the first ten months of 2016, after increasing by 3% for 2015. Inflationary pressure should be contained in the near term.
• Hong Kong’s merchandise exports dropped 2.5% year-on-year in January-October 2016, after falling by 1.8% in 2015 (electrical machinery and appliances, textiles, apparel, footwear, watches and clocks, toys, plastics, precious stones, printed material). Imports were 523 USD billion in 2015  (raw materials and semi-manufactures, consumer goods, capital goods, foodstuffs, fuel (most is re-exported).
• GDP: 310, Inflation Rate: 3%

Current Economic Situation

• The world's freest economy
• The world's most services-oriented economy, with services sectors accounting for more than 90% of GDP
• Asia’s largest recipient of foreign direct investment (FDI)
• Asia’s third largest source of FDI, after Japan and Chinese mainland

4. Describe political and cultural factors that could influence the conduct of international marketing. Characteristics should include:

Government

Under the Basic Law, the HKSAR enjoys a high degree of autonomy except in foreign affairs and defense. The HKSAR exercises executive, legislative and independent judicial power, including that of final adjudication. (CIA, 2016).