International Business Milk Based Healthy Breakfast Essay

Question:

Discuss about the International Business Milk Based Healthy Breakfast.

Answer:

Overview of Product and Customer Base

Symply Too Good milkshakes, an Australian healthy food company has a separate segment of milk-based healthy breakfast shakes in the following delicious flavors: Creamy Vanilla, Chocolate and Coffee (Symply Too Good To Be True 2017). The product is targeting modern women who fall into the age category of 25 years to 45 years. These are working women who are interested in maintaining a good health and keen to lose weight. The shakes are made, keeping in mind the short time these women have for investing in preparing something (Trapp et al. 2014). The shakes have already received 5 star health ratings and are exclusively nut free, gluten free with no artificial sweeteners. As the shakes are milk based, only water need to be added to the powders and then they are good to go for consumption. These shake powders are formulated supplementary food and rounds up to 158 calories per serving. It contains 7g of fibre and 15g of protein, which are very effective in keeping people feeling fuller for a longer period. The milk shakes are 99% fat free and completely packed with vitamins and minerals. The products are completely Australian made and are of premium quality with 3 year of shelf life (Symply Too Good To Be True 2017).

Target Market Analysis by STP

Segmentation

Segmentation bases used by Symply Too Good are as follows:

Geographical Segmentation – This divides the market geographically (Kotler et al. 2015). China is chosen because of the preference towards Australian dairy products and the dense population.

Demographical Segmentation – It divides market by gender, age, income or ethnicity (Kotler 2012). Symply Too Good would target the 64% working women between the ages of 25 to 45 in China.

Psychographic Segmentation – this divides the target market according to the lifestyles, interests and activities of people (Wedel and Kamakura 2012). Symply Too Good would target health conscious working women, who look for convenient, premium products to lose weight. They are a healthy substitute to non-healthy and sugary beverages.

Targeting

Symply Too Good would target a single segment, marketing the products to working women between the ages of 25-45 with the help of market penetration pricing. Symply Too Good would use emotive marketing strategy for attracting potential buyers. Symply Too Good has created this product to target the health conscious population, especially the working women. Good marketing and the opportunity to use healthy premium Australian dairy products that are convenient to use on long working days would attract more buyers. Symply Too Good would target a single segment, working women between the ages of 25-45 (Hollensen 2015).

Positioning

Symply Too Good would be positioned as a very versatile, premium and convenient health drink for health conscious working women in China. It is a value added product for the women who are between the age of 25 to 45 and specifically in four cities of China: Hong Kong, Shanghai, Beijing and Shenzhen. The marketing activities would be focusing on promoting the best features of the drink: sugar free, less calorie, milk-based, gluten and nut free, great taste and three different flavors to choose from. It is intended to give an edge over it competitors in the location (Kiel 2014).

Table: STP Analysis

Source: Created by author

PESTLE Analysis

Hong Kong

Political

· Special Administrative Region (SAR) of China

· “One country, two systems" principle

· Government answers to the selected Chief Executive

· Not independent from Chinese politics

· No major political parties

Economic

· Tenth largest trading power

· Third largest financial centre in the world

· Resisted the financial crisis well

· Aided by internal consumption

· Suffered from Chinese economic crisis

· Solid financial situation and current account surplus

Social

· National language is Cantonese

· Bilingual society

· A well-integrated society

· Two key systems of social stratification, one Chinese and the other European

· Dual-income families

· Existence of female gender discrimination

Technological

· Likes technology in principle, not in practice

· Low degree of technological talent

· Cyberport is developing

Legal

· No Governmental intervention in economic matters

· Separate legal system from China

· Legal environment offers a strong base for its free market and for competitive economy

· Minimal legal procedures for registration

Environmental

· Air pollution is a chronic problem

· Increase in respiratory diseases

· Tap water is drinkable

· Food safety standards are high

· Poor state of old pipes

Source: (Barnes et al. 2015)

Shanghai

Political

· First city of China to accept Western culture

· Dual party-government system

· Home to many of the country’s eventual senior leaders

· Direct-controlled municipality of China

· Mayor is equal to provincial governors

Economic

· Commercial and financial centre of China

· Lowest urban to rural income gap

· Leader in the quality of its growth

· Highest average wage and disposable income

· High cost of living

Social

· Increased gross enrollment rate for higher education

· All-around development in social endeavors

· Growing living standards and income level

· Increased average disposable income

· Ease in the employment tension in the local job market

Technological

· Top technological innovation hub globally

· Attracts foreign companies to invest in sole proprietorship

· Increased levels of industrial technologies

· Decrease in GDP energy consumption due to improved technological equipment

Legal

· Fear of commitment levels

· Fear of demise of Chinese traditions

· Officials believe forcing people to care would work

· Implementation of good Samaritan law

Environmental

· Housing is a major problem

· High population density

· Huangpu River is the source of water

· Water quality is high

· Air quality is very poor

· Produces a huge amount of solid waste daily

Source: (Zhang and Li 2014)

Beijing

Political

· Cultural and political center of China

· Rule of Chinese Communist Party

· People’s Congress of Beijing is the local government

· Authority consists of People’s Congress of Beijing and the Standing committee

Economic

· Home to over 100 of China's largest companies

· Home to high-end manufacturing and service sectors

· Highly prospering tourism, media and IT industries

· Attracts multinational companies to base their headquarters

Social

· Owns plenty of royal elements in its social system

· Beijing people are elegant and proud

· Seldom look down upon foreign people

· Shows a patient and considerate attitude for other people

Technological

· Fear of foreign technology

· Security concerns of the government

Legal

· Legal means are used to strengthen the authority

· Establishing of legal precedents

Environmental

· No direction for sustainable solutions

· Rising water pollution and sewage issues

Source: (Zhang and Zhang 2014)

Shenzhen

Political

· Trying to develop into a socialist system

· Allowing citizens to work wherever they want

· Supports creation of modern technology

· City itself has its own mayor

Economic

· A regional manufacturing and financial hub

· One of china's top four first-tier cities

· One of the richest cities

· City's GDP grew 10% to rmb1.3 trillion in 2012

· Special economic zone

· A vibrant and booming metropolis

Social

· Host to a series of social ills

· Vast majority of urban dwellers are of ordinary households

· Success is based on and reliant upon the mistreatment of low-wage migrant workers

Technological

· Plays an important role in the economy

· latest new pieces of technology is the usb pen drive

· Open to modern and new technology

· Technology has to do with saving the environment

· Technology looks to reduce the amount of pollution and non-green products used

Legal

· Legal environment based on justice, fairness, credibility and kindness

· Support from the national people’s congress

Environmental

· Raising CO2 emissions

· Increasing population and urban sprawl

· Once green landscape is now covered with skyscrapers

Source: (Zhang and Li 2014)

From analyzing the macro-environment of these four cities it has been found that Beijing would be the perfect market to penetrate for Symply Too Good. The reaon being, the city is home to most of the companies of China, thereby increasing the number of working women, the target customers.

References

Barnes, B.R., Leonidou, L.C., Siu, N.Y. and Leonidou, C.N., 2015. Interpersonal Factors as Drivers of Quality and Performance in Western–Hong Kong Interorganizational Business Relationships. Journal of International Marketing, 23(1), pp.23-49.

Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.

Kiel, I.H., 2014. Entrepreneurial marketing.

Kotler, P., 2012. Kotler on marketing. Simon and Schuster.

Kotler, P., Keller, K.L., Manceau, D. and H?monnet-Goujot, A., 2015. Marketing management (Vol. 14). Englewood Cliffs, NJ: Prentice Hall.

Symply Too Good To Be True. 2017. Symply Too Good To Be True with Annette Sym | Weight loss, healthy recipes, tips, products and articles. [online] Available at: [Accessed 3 May 2017].

Trapp, G.S., Allen, K.L., O'Sullivan, T., Robinson, M., Jacoby, P. and Oddy, W.H., 2014. Energy drink consumption among young Australian adults: associations with alcohol and illicit drug use. Drug and alcohol dependence, 134, pp.30-37.

Wedel, M. and Kamakura, W.A., 2012. Market segmentation: Conceptual and methodological foundations (Vol. 8). Springer Science & Business Media.

Zhang, H. and Li, Z.F., 2014. Residential properties, resources of basic education and willingness price of buyers: Based on the data of districts and counties in Beijing, Shanghai, Guangzhou and Shenzhen. China Finance Review International, 4(3), pp.227-242.

Zhang, Z.X. and Zhang, J. eds., 2014. Understanding Chinese firms from multiple perspectives. Springer.

How to cite this essay: