Mix and the changes it has done on the Hong Kong market

Mix and the changes it has done on the Hong Kong market

 

From time immemorial, people have been concerned, collectively as well as individually, about avoiding health impairment and prolonging life. In society they have developed two increasingly specialized arms for advancing their health interests and this include sets of healers, now long dominated by physicians, for dealing with individuals’ problems, and  community health protection, to which public health personnel are devoted. The first set focuses on people one at a time and the second on the population as a whole (Grew 1999). Physicians have tended to emphasize cures, whereas public health has focused attention on prevention, though considerable overlap in these emphases has occurred. Both are supported by society to varying degrees in different times and situations, generally corresponding to the value that society places on them for safeguarding health. Most health problems arise in societal context activities (Jamner & Stokols 2000). Due to lingering health concerns people have desired for products that are healthy and enjoyable. The need for better health products pushed MIX to put up the first and only healthy-lifestyle Juice & Smoothee Café. Such café offered healthy drinks that people will enjoy. MIX has nutritionally-balanced nourishment and refreshments that are available anywhere. The company’s products reach various sectors whether they are office workers, shoppers, travelers or local residents. Mix targets all available market and segments. It doesn’t choose its clients; instead Mix desires to reach all markets. Mix makes sure that it offers products in attractive and comfortable stores. The use of such product creates people with a passion for life.

 

PEST Analysis

Political

MIX made sure that they were aware of the political situation of Hong Kong and the Asian Region they have operated in and the company has made sure that it has a reasonable position with regards to political issues. MIXis continuously prepared for any problems concerning the political sector. Any political noise is irrelevant to the company. Unless the political environment will change rules that relate to their operations MIX prefers to stay away from such subject. The political environment has allowed the liberation of the market, liberation of the market paved the way for improvement of services. The laws of Hong Kong and other markets for MIX are not a hindrance to the growth of the company.  The laws of the Hong Kong and other markets for MIX  provides the much needed help in making sure that the company will achieve its goals. The laws of MIX’s markets tend to give guidance to the organization so that the company can achieve its goals without major issues from the government.

 

Economic

MIX and its various branches can be said to be economically successful for the past years. MIX and its branches introduced some changes that benefited the economic stature of the firm. It is not only the internal economic situation of the company should be taken note of but also the economy of the country. Mix checks first the economic status of the country they are operating in before making decisions if they will expand in that area and since Hong Kong recently has been doing well economically then there is no reason for MIX Company to abort growth in Hong Kong. The economic forces can dictate the actions of MIX. if the economy is doing well then MIX can offer new services but if the economy is in a worse state then MIX and its branches have to reduce unnecessary expenditures and un important actions.  The economy of MIX’s markets has given opportunities to health refreshments and nourishments. The status of the economy has paved the way for various makes of healthy products to prosper in the region and help in proving that MIX is one premier company in the healthy refreshments industry.

 

Social

The socio cultural force especially Hong Kong’s society serves as the conscience to MIX and its branches. This force ensures MIX and its branches will not do things they know can ruin MIX’s reputation with the society. This force ensures that MIX and its branches will consider first its environment before making any decisions.  Hong Kong has a very diverse and complicated culture and society; it serves as a challenge for MIX to satisfy the needs and requirements of that region. MIX makes sure that the products and services they offer will be accepted by the general public and the health conscious public. MIX does not authorize the delivery of some products they know will cause outbursts or complains from different groups in the society. Mix also engages in social activities that tend to develop a better relationship between them, the clients and the society they are operating in.

Technological

MIX offered new innovations in its technological aspect and introduced new concepts with regards to its industry. MIX introduced better manufacturing systems that ensured that they create the best products.  It also makes use of commendable safety and security systems to the branches, supply warehouses and other important facilities.  Since technology rapidly MIX makes sure they are updated to what is happening and they can adjust to these changes. The technological forces dictate the trends in the food industry, these forces is the one that determine what should be used to create a product. MIX relies on the products created by the technological forces.

 

Marketing Mix

From http://alex.edfac.usyd.edu.au

The 4ps meant that marketers sought to produce products that were desired by consumers at a price that would be attractive, the marketers want to use promotion to indicate the advantages they offered over the competition, and make them available at a place of the customers’ choosing (Yudelson 1999). Marketers have to understand cultural values in all aspects of implementing the marketing concept and managing the marketing mix (Proctor 2000). The marketing mix uses the 4P’s to describe the marketing position of a product in a certain marketplace. The P’s of marketing is a way to conceptualize the business, define strategy, format competitive analysis and benchmarking (Collier 1991). Marketing mix helps the company to analyze itself and determine how to market its product to the clients at a limited time and limited cost. The marketing mix categorizes different aspects of the company. Through the marketing mix each aspect of the company can be checked and given consideration with regards to its ability to attract clients. The next part will use the marketing mix to further analyze the company and its products.

 

Product

Introducing new products is a very good way of achieving differentiation and enhancing a retail identity in an over-subscribed retail market, but without corporate support new products may fail or go unnoticed (Gillooley & Varley 2001).  Although most of the buying decisions are centered on the ability of a product to satisfy a customer need at a price the customer is willing to pay, a business has to ensure that it meets its legal obligations with regard to the products it sells. It also has to consider its long term image in the eyes of the public. It is therefore necessary to ensure that a product conforms to legal standards and provides value for money (Gillooley & Varley 2001). Product innovation is becoming increasingly necessary for businesses to keep customers interested in their product range (Gillooley & Varley 2001). MIX products include whole meal bakery and pastries with added vitamins, minerals and fiber. MIX makes sure that every one of their Healing Juices, Smoothees, Wrapps and Rainforest Salads is as pure as can be. The company assures its clients that their product has no artificial preservatives, flavorings or sweeteners. The materials and components used for production of products came from reliable and trustworthy suppliers.  The company also has consumer response team that can be contacted anytime. This response team provides assistance to clients who have issues with some of the products.  The company’s products are one of the main reasons for the company’s success and it contributes to the rise of the company’s profits.  The company’s products sets them self apart from the competitors in the region.

 

Price

The market pricing approach is used when the environmental improvement under consideration causes an increase or decrease in real outputs and/or inputs (Hussen 2000). A variety of motivations explain the adoption of a new customer approach by global companies. A major reason is the cost of conducting personal visits or customer sales call continues to increase. Firms cannot afford to allow their sales force to make unproductive sales calls. Firms have come to believe that a more efficient method of marketing is to establish and maintain long-term relationships with their customers. When a long-term relationship is established and nurtured, it is less necessary to spend significant amounts of money advertising to make customers aware of the product offering and then employing a sales force to stimulate demand for unwanted products/services to potential customers (Ford Honeycutt & Simintiras 2003).  Global customers expect low manufacturing costs, excellent design, and having their needs met (Ford Honeycutt & Simintiras 2003). The company’s pricing is valued according to the quality of the products. For the clients of the company, the pricing approach for them concentrates on providing them the best product for the equivalent amount of price they pay. The company makes sure that it maintains well made products that will have the same value as what the client pays for it.  The price of the product is considered through determining the cost of making the product, the salaries of people producing the product, the cost of operation and the other expenses made in the creation of the product. With such price the company maintains the product to be of high quality and durability.

 

Place

The factors which determine choice of a channel, or channels, of distribution are both external and internal to the organization. These factors show how the options open to organizations are restricted. For example, small companies may not have the resource or expertise to become involved in foreign direct investment; markets with low break-even sales volumes favor low-cost channels such as licensing or exporting. Traditional decision-making techniques can be applied to such decisions. Market size is a primary consideration, together with trends in the market like segmentation and the estimated share of the market that can be achieved in view of the competition. The existing distribution methods will determine whether single or multiple channels are developed. Host country policies are important since any special standards, import quotas or duties will increase the cost to the consumer and disadvantage foreign suppliers in relation to domestic ones (Mccall & Stone2000).

 

Place elements of the marketing mix have been changing rapidly over recent decades, and these changes impact in many ways on the marketing operations of the Business (Dennis & Harris 2002).To attain sales, profitability, and customer-satisfaction goals, the products must be available for customers to purchase. The portion of a firm’s marketing strategy that assures customers have access to the firm’s products is known as distribution strategy, and the institutions that take part in product distribution comprise the marketing or distribution channels for those products (Reddy 1997).  The different channels of distribution help in strengthening the relationship of the company with the clients. It also establishes some relationship with non competitors. The main channel of distribution for the company is its branches. The company has eleven branches in strategic locations in Hong Kong.   The company has branches in its Airport, malls, roads, and other business districts.  Mix also has a delivery system wherein clients or companies who want to have products be catered to them can make formal requests.  MIX’s website features a printable menu that can be used to select the product that a company or an individual would like to have. The individual or a company can then call a certain number wherein they can place their order and discuss some details about the delivery.

 

Promotion

Effective marketing communications with the customers are essential for business success. Advertising forms the central plan of most communications programs. The information conveyed in advertisements may be in the form of words or symbols. It can work to educate, persuade or simply to inform. An image can be supported or created, enquiries can be elicited and the functions of a product can be demonstrated. Advertising is far more likely to reinforce rather than create a good image (Ruskin-Brown 1999). A strong image is a function of the positive experiences which people have with a product or company. Attempts to create a positive image, while providing poor products or services, are likely to make customers cynical. A common mistake made in advertising is the tendency to over promise. While a creative advertisement may make a consumer buy a product once to try it, it cannot force them to repurchase. Thus, if a product does not deliver on the promise made in the advertisement this too will create resentment and negative feelings (Ruskin-Brown 1999). The company promotes their products through various means. One is through the internet wherein the website helps in promoting the products. The website gives different kinds of information about the products and its composition. The website provides a description of the products. Another advertisement is through TV commercials wherein the product is given a visual presentation for clients to see the features of the company’s products and its benefits; other promotion techniques used by the company includes print advertisements. The different promotional techniques used by the company helps in increasing the number of clients of the company.

 

SWOT Analysis

 

Strength

The main strength of Mix is its innovativeness. The company was able to innovate healthy products that normally people would not buy into products that would attract and encourage people to buy. Mix was able to make unpopular products to ones that are popular in Hong Kong.  A strength for MIX and its branches is its well established values. The values help the company achieve its goal and maintain its stature in the food industry. A strength for the MIX is its high regard for its community wherein the company provides products that ensures that the clients will have good health. This ensures that the company has a good relationship with its environment. Moreover a strength for MIX is its high regard for the safety of the workers. The company has acquired certification for its health and safety practices, this shows that the company uses strategies that have high standards towards the personnel. Lastly a strength of MIX is its website that is informative and attractive.  The website provides information about the company and information on products of the company and how such product benefits clients.

 

Weakness

MIX main weakness is still lacking advertisements. The company doesn’t use many advertisements that can help it be known to more people from other regions.  A weakness of MIX is the limited area that has been reached by the company. The company has a small market; this makes it hard for the company to reach newer clients. The company can only offer its product to those in Hong Kong. This prevents the company from offering products to diverse clients and clients of all ages and gender. It also hampers the chance for the company to show that its products are better than products in other regions. 

 

Opportunities

 An opportunity for MIX is to find out more ways to give a distinctive look and features to their products. The company can continue to make sure that their products are uniquely packaged. The company can create attractive and trendy packages that will attract more market.  By doing this the company will have competitive advantage over other firms. An opportunity for the company is to improve the features of their website. The website can be improved by adding online communication systems that will help the company communicate with perspective and regular clients. By doing this it can attract more clients and retailers from various parts of the region. An opportunity for the MIX is to continue to make use of newer technologies that will provide better service to clients. Mix can use the advancements in manufacturing facilities and technologies to make sure that the clients will achieve satisfaction. The company can make use of newer technologies to create the best product possible. An opportunity for the MIX is to continue to reach newer markets where it can offer its products.  The company should consider reaching other regions and countries. Lastly an opportunity for MIX is to increase public knowledge about the company and the product it provides. This could be done through the use of internet and other media.

Threats

Globalization affected greatly almost all the industries of the world. It brought about the need for change. The changes created a new competitive environment in this industry. Globalization is one of the threats to MIX. Globalization can be a threat to the company because Globalization can produce alternative health products with a better composition. A threat to MIX is the competitors. The competitors will try everything they can to gain a better standing against MIX and its branches. The competitors might discover products that are better than MIX’s product line. MIX needs to be always prepared for the threats brought by other food businesses. The threat to the company includes the laws in the country they are operating in. There may be some future laws that will hinder the creation of products. The laws may be used against some components of their products. There maybe laws that can change the allowed component for the product.  Another threat to the company is the tariffs and taxes that the company has in the region. The taxes and tariff constantly change and that may or may not give additional expenses for the company. A threat to MIX is the environmental issues that might be raised by certain groups. The environmental concerns on the creation of food products can be used as propaganda against the company.  Lastly a threat to the company is the global financial crisis. The financial crisis may not be felt by Hong Kong right now but after some  time its effects will be felt by Hong Kong and business in that region.  The global financial crisis will reduce the client of MIX and might force it to close some of its branches. The company needs to be prepared for this crisis and its probable effects.

 

References

Collier, DA 1991, ‘New marketing mix stresses service’, The

Journal of business strategy, pp. 42-45.

 

Dennis, C & Harris, L 2002, Marketing the E-business,

Routledge, London.

 

Ford, JB, Honeycutt, D & Simintiras, AC 2003, Sales

management: a global perspective, Routledge, London.

 

Gillooley, D & Varley, R 2001, Retail product management,

buying and merchandising, Routledge, London.

 

Grew, R (ed.) 1999, Food in global history, Westview Press,

Boulder, CO.

 

Jamner, M. & Stokols, D (eds.) 2000, Promoting human

wellness: New frontiers for research, practice, and policy,

University of California Press, Berkeley, CA.

 

Hussen, AM 2000, Principles of environmental economics:

economics, ecology and public policy, Routledge, London.

 

Mccall, JB & Stone, MA 2004, International strategic

marketing: A European perspective, Routledge, New York.

 

Proctor, T 2000, Strategic marketing: an introduction,

Routledge, London.

 

Reddy, AC (ed.) 1997, The emerging high-tech consumer: a

market profile and marketing strategy implications, Quorum

Books, Westport, CT.

 

Ruskin-Brown, I 1999, Mastering marketing: a comprehensive

introduction to the skills of developing and defending your company’s revenue, Thorogood, London.

 

Yudelson, J 1999, ‘Adapting McCarthy’s Four P’s for the

twenty-first century’, Journal of Marketing Education,

vol. 21, no. 60, pp. 60-67.

 

 

 

 

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