BRANDING2.docx

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EXECUTIVE SUMMARY

The most notable impact of globalization and international trade can be seen in the way business firms

operate in the modern world. Corporations seek to penetrate other national territories in the hope of boosting profit

and reputation. One of the growing markets in the global business arena is the snacks and foods market. This study

attempts to analyze if a United Kingdom-based crisps and snacks manufacturer can facilitate a successful business

operation in Hong Kong. The first part of the report tackles the benefits of a global operation factors that a firm

has to consider before going global as well as presents the three research !uestions. The remaining discussions

focus on information regarding the general characteristics of Hong Kong consumers that make them recepti"e to

foreign products including snacks and crisps specific crisps and snacks products that gained the appreciation of

Hong Kong consumers and the kind of entry strategies that are encouraged in the Hong Kong market. The paper

also e#plains the design and approach in conducting the research. The primary data collection method is through

a"ailable literature on the topic. The primary sources of information for the study include a report from the U.$.

%epartment of &griculture and three published magazine articles. The researcher opts to use the e#ploratory

approach to sa"e time and money. The paper also discusses how the e#isting literature can answer the concern of

the company by helping it to gain access to statistics and reports published by respecti"e agencies and writers.

'inally the research report elaborates on the scope of the report and its weaknesses for guidance to future

researchers.

INTRODUCTION AND BACKGROUND TO THE PROBLEM

The continued interest in and growth of international trade has dri"en numerous business organizations to

embark on a global operation. The ()**+, cites that global markets ha"e rendered e#tensi"e opportunities for

business firms to increase sales boost capacity for in"estment and market share gain access to a wide array of raw

materials and technology and e#ploit manpower skills from other locations. Hence going global/ has become the

key ob0ecti"e of most business organizations. Howe"er the pursuit of a share in the global market entails e#tensi"e

research preparation and capacity building across all le"els of the business firm. &ccording to ()**1, cultural

differences go"ernment laws and regulations local business practices and distinct needs and preferences of the

consumers in a particular market are some of the issues that ha"e to be taken into consideration before penetrating a

global market.

The pursuit of a global business operation is presently a concern of $cenarios Crisps and $nacks a United

Kingdom-based manufacturer of chips crisps and snacks such as potato chips tortillas packaged fries snacks and

others. The company aims to penetrate the Hong Kong market following a massi"e success with the 2ritish

consumers. The immediate concern of the company is to determine if the Hong Kong consumers would welcome

crisps and snacks in their daily lifestyles. This report is an attempt to pro"ide information regarding the status and


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opportunities of the crisps and snacks market in Hong Kong by considering three areas 3 general characteristics of

the consumers dominant snacks and crisps products in the Hong Kong market and entry strategy. $pecifically the

report tries to answer the following research !uestions4

u 5hat are the characteristics of the Hong Kong consumers that would make them appreciate crisp and snack

food products6

u 5hat specific crisp and snack items are highly accepted and patronized by Hong Kong consumers6

u 5hat are some of the effecti"e entry strategies that a business firm can utilize when it decides to enter the

Hong Kong crisp and snack market6

7n order to answer the research !uestions the report first discusses the general characteristics of Hong Kong

consumers as well as the type of consumers who are more appreciati"e of crisps and snacks food products. $econd

the report e#plains the specific preferences of Hong Kong consumers relati"e to snacks and also presents some

statistics on Hong Kong8s consumption of certain food products. 'inally the report identifies some forms of entry

strategy that would work in Hong Kong by presenting specific e#amples.

The United $tates (U.$., %epartment of &griculture ()**9, reports that as societies modernize people are

forced to adopt hectic lifestyles that make them indulge in snacks between meals. Thus the global world gi"es birth

to a breed of global consumers who ha"e two similar characteristics 3 changing and busy lifestyles that dri"e

increase in demand and consumption of snacks and preference for new tastes and brands from other locations in the

world (,. Hong Kong is a typical e#ample of an urbanized society where people struggle to stay economically stable.

Hong Kong has one of the most de"eloped economies and highest standards of li"ing in &sia. 7n )**: the country8s

per capita gross domestic product (;%*. The continuous economic prosperity of the country

is supplemented by many people who are increasingly adopting 5estern lifestyles (Hong Kong )**+,. $cott

?eynolds former United $tates &ssistant &gricultural Officer in Hong Kong once said that Hong Kong is generally a

"ery recepti"e market for e#ports from other de"eloped countries like the United $tates. He further elaborates by

saying that Hong Kong is a fast-paced society marked by aggressi"e economic acti"ities which makes it "ery similar

to many cities in the United $tates. &ccordingly the progressi"e economy and busy lifestyles of the Hong Kong

populace make fast foods and snack foods desirable as these products ser"e as !uick meals for people who are

always on the go ( @AA@,. Hong Kong has a population that is one of the most urbanized affluent and recepti"e to

new food products in the entire world.


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ha"e started to adapt the 5estern styles of li"ing in the last ten to twenty years. This influence is e"idenced by the

spread of many 5estern-based con"enience stores like +-Dle"en operating on a ):E+ basis and gi"ing unlimited

access to snacks and crisps products to young professionals and teenagers ( @AA@,. & report published by the

'oreign &gricultural $er"ice in @AAA showed the attitudes of some Hong Kong inhabitants regarding salty snacks. The

study concluded that snack foods and salty snacks ha"e generally been a highly lucrati"e business in Hong Kong due

to increasing customer demands especially from young adults ()**@,.

Attribute Salty Sa!"#

as re"ealed by the

'oreign &gricultural $er"ice (,. %ried meat and seafood snacks are also gaining popularity but local manufacturers fail

to suffice the growing consumer demand for these products ( )**9,. %ried seafood and meat products established a

growth rate of around @B to )* percent growth in @AAA and are continuously gaining a large market share ()**@,.

Sa!" $%% Hi#t%ri!al De'el%()et


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inherent attribute of the people to welcome new products ha"e gi"en rise to a call for contemporary healthy snacks.

Today Hong Kong consumers demand for high-!uality healthy snacks such as dried fruits fat-free potato chips low-

fat crackers protein and energy bars low-fat cookies low-fat tortillas low-fat ice cream frozen yogurt dairy-free

cheese healthy be"erages sauces and salad dressings (@AA+,.

Hong Kong has a consumer-based economy that is an acti"e participant in international trade. The

go"ernment does not implement strict !uotas tariffs and other restrictions on food products and be"erages e#cept

alcohol soft drinks and tobacco. This attribute makes Hong Kong an attracti"e destination for multi-national

corporations and global e#porters (@AA@,. & study conducted by the 'oreign &gricultural $er"ice in @AAA found out

that twenty-one percent of Hong Kong8s population becomes oriented with food products through ad"ertising and

se"enty percent thinks that attracti"e packaging and brand are important for a foreign or local food product to sell

()**@,. One of the most successful strategies for gaining entry into the Hong Kong crisps and snack foods market is

through aggressi"e promotional acti"ities that highlight the brand and attracti"e physical appeal of the products.


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$ince the manufacturers of the product does not know if the certain crisp snacks which are based in United

Kingdom will ha"e positi"e impact in Hong Kong and be successful within their market it is 0ust appropriate for the

crisp snacks manufacturers to undergo research in"estigation and find out assumptions pointing towards global

market communication of the product and be able to look further on such management within brand "alue and its

identity respecti"ely. The research approach proper for the market research is basically to gather first hand as well as

secondary information through such techni!ues such as case study and its useful analysis the case pointing towards

the determination of characteristics of the Hong Kong consumers in terms of appreciating certain crisp and snack

food product probably the sur"ey !uestionnaire is essential for the study particularly The Consumer $atisfaction

$ur"ey as it will help assess as to what specific crisp and snack items are to be accepted by the Hong Kong

consumers. &side there can be the utilization of effecti"e entry strategies such as considering the related market in

lieu to location of business and mostly knowing the reality that competition is tough in the HK markets in such goods

and ser"ices. The manufacturers need to identify areas in which it outshines competitors and take ad"antage of those

strengths. The key principle will depend in selecting appropriate brand communication measures and its process hatcan contribute to the HK society as a whole rather than benefiting within a single area and or ser"ice units.

The first step is to conduct marketing and branding e"aluation cycle enabling the organization to realize the

decisions made upon allocation of resources intended to generate branding stability to reach organization success.

(@AA), The members of the strategic planning team can de"elop forecasts to determine whether a brand unit will

basically support promotions and market entrance in support to strategic brand management plan as the proper

information integrates "alue for analysis in terms of de"eloping a strategic brand communication direction and

pursuing specific brand ser"ices. This will help the business to identify which markets will produce the strongest

brand communication impact to its partners and catered group respecti"ely. (@AA),

T*e Stu&y +%r HK Mar"et De)a&

There will determine brand lines offering potential growth and will then look into the demand for certain

ser"ices like for instance information on health status through the ser"ices being offered in finding opportunities and

challenges ()***, and e#plores the possibility of adding a patient ser"ice through e#amining its database to

determine the number of procedures it has performed or the number of patients admitted in a gi"en brand

communication line. Thus marketing information can be used to create a psychographic profile of consumers and

define such consumer concerns and needs identify rele"ant traffic patterns and shopping habits of area consumers

and determine the media methods and referral networks that can be used to reach a target market and de"elop a

strategy for promoting appropriate brand communication ser"ices. ()***, The business marketing staff may gather


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some !ualitati"e information on the selected group to find out their opinions on crisp and snacks foods from UK

facilities and brand "alue image and how they make healthcare choices.

Mea#uri, Pr%&u!t Mar"et Pr%+itability

There is cost system within the organization that enables financial managers to determine whether certain

brand communication ha"e better margins than others and recei"e better ser"ice de"elopment that will help 5alters

for e#ample to e"aluate whether a marginal ser"ice could become profitable if the "olume increased &side there

should analyze the ser"ice mi# profile and come up with a profit and loss for growth upon upgrading brand processes

(@AA>,. The manufacturers may choose to pro"ide how to imply its branding power e"en if its not profitable through

strategic brand management plan as non-profitability could be a ser"ices contribution to positi"e reser"es and yet

help enhance organization8s brand image for future growth.

The de"elopment of a new communication channel for instance may impro"e the flow of customer

satisfaction and gi"e referrals for using the products. There should e"aluate the strategic fit between the ser"ice and

the organizations mission. 7t then must de"elop better re"enue and contribution forecasts as the management must

asses what brand communication affects the ser"ice and determine whether such pro0ect meets the brand

management ob0ecti"es. ( @AA> ,

Mar"et a& Bra& I'e#t)et

To be successful with its brand management plan 5alters for instance if entering to the HK market for their

crisp snacks needs to apply marketing skills to attract and retain customers as well as patients public relations efforts

should be formulated and targeted to identify markets. Unduly restricted or limited marketing efforts can hinder the

success of brand communication management and its role in useful strategic brand planning (@AA@,. Foreo"er

despite the risk of stifling their marketing programs effecti"eness many hospitals cut marketing budgets because

they do not see the area as a re"enue generator in order to counter this perception is to treat marketing as an

in"estment that should be tracked measured and e"aluated for reasonable returns as well as the need to pare down

their approaches to audience segments for the usage of specific brand and communication ser"ices. ( @AA@,


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The process in"ol"es identifying the concerns of a target group by customer ser"ice and or brand identity and

de"elop useful message to reach those indi"iduals through appropriate media. 'or e#ample 5alters firm can

de"elop a marketing campaign for creati"e product brand message that has connection to the HK consumers

probably touching a bit of the countrys culture. ( @AA@, 'urthermore consistent marketing campaign tied to the

strategic plan should moti"ate potential consumers of the product as it increases in "olume as cost effecti"eness of

marketing strategies need ha"e to undergo analysis. (@AA*, &n integrated program of marketing and strategic

planning balances !ualitati"e and !uantitati"e analyses with sound use of reliable analytical techni!ues and careful

planning are markers of brand planning success. Thus building strength of brand there can de"elop global campaign

to coordinate efforts among "arious business partners collection techni!ues and marketing strategies. ( @AA* p. :*,

2usinesses with strong brands ha"e much to lose as well as gain as the stakes rise as the donors must decide when

and where to contribute and establish a reputation for competence in the minds of HK consumers. 'urthermore to

identify the issues it must deal with to ensure growth and de"elopment and then adopt a strong brand communication

system as there is a significant difference between brand strategy and mid to long-term management planning4 thebrand strategy is drawn up based on future goals while brand management planning is carried out based on the

current situation of the organization. (@AA9,

Henceforth the brand strategy pro"ides future image for crisp snacks business

to ha"e better plan of action and criteria against which to 0udge actions while mid to

long-term management planning co"ers better communication management indices

(@AA: , 5hen ser"ices consist of sol"ing different problems in different ways one earns

a good reputation. 5hen ser"ices consist of sol"ing the same problems in predictable

ways one has the makings of a brand. 7n many areas where nonprofits are acti"e there

are no widely accepted ways of deli"ering ser"ices ()***,. This is e#citing and

personally rewarding for those in"ol"ed it 0ust doesnt necessarily lead to good

conditions for a brand name only when there is a well-established framework for

pro"iding ser"ices can a true brand name e"en ha"e a chance to emerge. (@AA:, &

growing number of nonprofits ha"e a different problem4 multiple brands. 7t is alwayseasier when there is one brand and it resides in the operating organization but forces

such as the fragmentation of funders and the needs of different populations can make it

essential to ha"e multiple brands. ( )***, Fultiple brands are ine"itable as long as the

scale of the programs remains small and the programs distinct enough the situation is


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manageable snacks business in HK will !uickly de"elop an o"erload of brand names.

(@AA: ,

Foreo"er such commercial relationships increase the likelihood that a charitys

independence from outside influences will be compromised and there will de"elop

strong perception among potential HK consumers (@A>:,. Then the commercial

endorsements will increase potential market growth and stability in achie"ing the

presented discussion Consumer $atisfaction $ur"ey can be one factor for gaining "alid

and reliable research study. 7n competiti"e markets the profit moti"e generates

incalculable human benefits by moti"ating businesses to outdo each other in pro"iding

the public with higher !uality goods and ser"ices at competiti"e prices.

&side brand identity is important in establishing a link between a customer and

the product the understanding of brand marketing strategy and determining role played

by the database. (@A>:, 7n addition brand communication should establish results of

the marketing strategies. The creati"e e#pression of the brand should pro"ide

personality across market mi# and achie"e consumer loyalty and adapt to the changing

en"ironment (@AA9,. ?ethinking brand management and how it relates to its business

strategy. They must regain focus on differentiating the fundamental brand proposition

and must build a much stronger set of marketing and management capabilities and takea much broader "iew of the goals for their products and businesses (@AA>,. 2rands

guaranteed !uality and premier brands went beyond !uality to deli"er "alue and image

propositions. HK people no longer li"e in a world where great brand marketing make

successful organizations and e"en with a sound brand communication proposition

there are significant challenges such as the following4 (@AA> ,

u Competing with ones own channel for control of the consumer relationship

u D#ploiting niche and data base marketing

u Faintaining brand e!uity

u Iowering product and marketing cost

u Fanaging across supply chain

u Creating customer and supplier information linkage


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Foreo"er the information technology will play a crucial role in de"eloping brand

management communication as the organization may spend on technology information

and "alue analysis in order to understand the underlying economics of intangible

products and make better decisions measuring media and promotional effecti"eness

and achie"ing greater "alue for brand and its communication ( @AA+,. 'urthermore

brand management has pro"ided a useful set of tools to draw on and adapt to enable

them to be more focused to create a stronger sense of brand "alue and direction to

understand the e#ternal en"ironment better and manage effecti"ely the de"elopment of

snacks production ways. (@AA+ , 7n reality there is a wide range of perspecti"es models

and tools which can be described under the heading of brand management plan and

some are in conflict with other brand communication approaches as it pro"ides useful

work en"ironment essence (@AA+, ha"ing brand-dri"en management results. (@AA+ ,

RESEARCH DESIGN

I#tru)et &e'el%()et

The sub0ects represented "arious demographic characteristics in terms of age and background. The

!uestionnaire can be designed to elicit an understanding of situational factors that affect snacking beha"ior and

products that HK consumers chose to satisfy their snack needs. Three situational factors are to identified such as4

whether snacks are consumed at home or away from home

whether snacks are consumed in the morning or afternoon

whether the snacker will eat alone or with others.

I&eti+i!ati% %+ #a!" +%%

The research consultants felt that the list was an efficient representation of the results of the focus group

inter"iews and captured a broadly defined snack market. 'urthermore since this was the first empirical in"estigation


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of situational influence in the HK snack market a broadly defined market pro"ided a more useful baseline for future

situational research that may in"estigate more narrowly defined sectors of the HK snack market.

-ue#ti%aire C%#tru!ti%

The !uestionnaire re!uired respondents to rate the appropriateness of the ten snacks in each of the eight situational

scenarios using a fi"e-point scale (@ - inappropriate B - appropriate,. The usage preference and usage likelihood

scales were not chosen because they tend to reflect current usage patterns that are not the focus of this study. The

!uestionnaire will include demographic !uestions to assess sample ade!uacy. The data are to be collected to pro"ide

an opportunity to assess the nature of the sample.

The focus of research methodology will emphasize on Hong Kong consumer

perception of the crisp snack foods as the method of application in"ol"es the process of

sur"ey !uestionnaires to be answered by certain respondents as the consumers areadapting to the presence of fast mo"ing consumer goods such as pastas noodles and

personal supplies that are easily sold under the stores counter. Foreo"er designing

organizing and conducting a .ue#ti%aire #ur'ey is like running a business as it

re!uires good knowledge and skill and specific training although some people assume

that starting a business re!uires no special skills beyond a willingness to try.

The .ue#ti%aire is more than a list of !uestions. ?ather it is a scientific

instrument for measuring and collecting particular kinds of data and must be designed in

accordance with particular specifications and tailored to the specific aims of thesur"eyor and by keeping potential consumers in mind the sur"eyor is more likely to

determine those !uestions that will be most meaningful and useful.

Obtaii, i+%r)ati%

Once the problem has been defined and the decision to conduct

a #ur'ey finalized the sur"eyor should ne#t decide what #ur'ey method should be

used to obtain the desired information from the respondents. &lthough it is sometimes

possible to #ur'ey an entire population generally this techni!ue would result in an

unwieldy amount of data. To limit the population sur"eyed a sample is drawn to reflect

the characteristics of the total population.

Re#ear!* Sa)(le


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?esearch sampling assures the elements in the population the same chance of

being chosen for inclusion in the #ur'ey/ 7f the sample is chosen at random and is

sufficiently large it will represent all the groups in the population in appro#imately the

correct proportions. One ad"antage of random sampling is no ad"ance knowledge of

the characteristics of the population is necessary. & disad"antage of the techni!ue is

that a low percentage of returns could result in an accidental sample. There has to be

@** HK consumers in total that was selected randomly in "arious malls and stores in

wherein se"eral of the crisp snack foods are present. The procedure calls for di"iding

the population into two or more strata and then drawing a random sample from each

stratum that will depend on the number of samples selected to relate to the consumer

preferences data as they occur in the population random sampling is applied in the

study as for the fact that achie"ing an e!ual number of samples is "ery difficult to reach

in the actual practice. $elect the sample so its a"erages ages from ages )B-:B yearsold for the known characteristics belie"ed rele"ant to the research findings as it

resembles the populations fre!uency distribution. 7f the sample will be used to make a

percentage estimate of the population a preliminary estimate of the appro#imate size of

this percentage is needed.

DATA ANALYSIS

The analysis of the procedure should be included at pJ*.*B ad0usted

?) measures that will indicate strong relationship between the situation and snack

appropriateness ratings. The HK market with se"eral competitors are attracti"e since

there e#ists ample opportunity for additional product or brand alternati"es. &lthough

markets with many competitors are generally not attracti"e opportunities the

methodology utilized by the study allows the marketer as well as the manufacturer to

assess the !uality as well as the !uantity of competition. The open-end !uestions gi"e

respondents free latitude in making their responses. &n e#ample of such a !uestion is5hat is the principal reason for your dislike of product &6 & drawback to their use is

that open-end !uestions may yield such a "ariety of responses that the task of

condensing and analyzing them is both time consuming and difficult to handle

statistically. Fultiple choice !uestions allow respondents to choose from among se"eral

possible answers and that the !uestion outcome can be tabulated easily and interpreted


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grade each statement in the sur"ey !uestionnaire using the Iikert scaling wherein respondents will be gi"en such

response choices. The results will then be tabulated and a"eraged to get the strengths and weaknesses of each

!uestion in the sur"ey.

LIMITATIONS

The research study relies solely on a"ailable information about the "iability of the Hong Kong crisps and

snacks market to foreign companies. The data yielded by this study are entirely condensed from e#isting information

and does not include any opinion of people who are proficient with the topic. The researcher only wishes to present

rele"ant and published information about characteristics of Hong Kong consumers that make them en0oy snacks and

crisps products dominant snacks in Hong Kong and kinds of entry strategies that would entice the consumers. The

researcher attempts to minimize time and money in this research by utilizing the e#ploratory approach.

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