netrashetty
Netra Shetty
The Kohler Company is a manufacturing company in Kohler, Wisconsin best known for its plumbing products. Kohler also manufactures furniture, cabinetry, tile, engines, and generators.
The continued interest in and growth of international trade has driven numerous business organizations to embark on a global operation. The (2007) cites that global markets have rendered extensive opportunities for business firms to increase sales; boost capacity for investment and market share; gain access to a wide array of raw materials and technology; and exploit manpower skills from other locations. Hence, “going global” has become the key objective of most business organizations. However, the pursuit of a share in the global market entails extensive research, preparation and capacity building across all levels of the business firm. According to (2006) cultural differences, government laws and regulations, local business practices, and distinct needs and preferences of the consumers in a particular market are some of the issues that have to be taken into consideration before penetrating a global market.
The pursuit of a global business operation is presently a concern of Scenarios Crisps and Snacks, 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 massive success with the British 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 provide information regarding the status and opportunities of the crisps and snacks market in Hong Kong by considering three areas – general characteristics of the consumers, dominant snacks and crisps products in the Hong Kong market, and entry strategy. Specifically, the report tries to answer the following research questions:
u What are the characteristics of the Hong Kong consumers that would make them appreciate crisp and snack food products?
u What specific crisp and snack items are highly accepted and patronized by Hong Kong consumers?
u What are some of the effective entry strategies that a business firm can utilize when it decides to enter the Hong Kong crisp and snack market?
In order to answer the research questions, the report first discusses the general characteristics of Hong Kong consumers as well as the type of consumers who are more appreciative of crisps and snacks food products. Second, the report explains the specific preferences of Hong Kong consumers relative to snacks and also presents some statistics on Hong Kong’s consumption of certain food products. Finally, the report identifies some forms of entry strategy that would work in Hong Kong by presenting specific examples.
The United States (U.S.) Department of Agriculture (2003) reports that as societies modernize, people are forced to adopt hectic lifestyles that make them indulge in snacks between meals. Thus, the global world gives birth to a breed of global consumers who have two similar characteristics – changing and busy lifestyles that drive 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 example of an urbanized society where people struggle to stay economically stable. Hong Kong has one of the most developed economies and highest standards of living in Asia. In 2004 the country’s per capita gross domestic product (GDP) was pegged at $23,680. The continuous economic prosperity of the country is supplemented by many people who are increasingly adopting Western lifestyles (Hong Kong 2007). Scott Reynolds, former United States Assistant Agricultural Officer in Hong Kong, once said that Hong Kong is generally a very receptive market for exports from other developed countries like the United States. He further elaborates by saying that Hong Kong is a fast-paced society marked by aggressive economic activities which makes it very similar to many cities in the United States. Accordingly, the progressive economy and busy lifestyles of the Hong Kong populace make fast foods and snack foods desirable as these products serve as quick meals for people who are always on the go ( 1991). Hong Kong has a population that is one of the most urbanized, affluent and receptive to new food products in the entire world. People in Hong Kong have diverse tastes and are willing to try new tastes and various brands. In 2001, the country obtained snacks imports worth US$ 234 million (US$ 50 million from China, US$ 33 million from Japan, US$ 21 million from South Korea and US$ 19 million from the United States (2003). Furthermore, (2001) states that salty snacks such as potato chips and pretzels are very popular among young people aged fifteen to twenty-four in Hong Kong. This is mainly due to the growing influence of Western countries to the Hong Kong population (). Reynolds explains that most people in Hong Kong, particularly the younger generation, have started to adapt the Western styles of living in the last ten to twenty years. This influence is evidenced by the spread of many Western-based convenience stores like 7-Eleven operating on a 24/7 basis and giving unlimited access to snacks and crisps products to young professionals and teenagers ( 1991). A report published by the Foreign Agricultural Service in 1999 showed the attitudes of some Hong Kong inhabitants regarding salty snacks. The study concluded that snack foods and salty snacks have generally been a highly lucrative business in Hong Kong due to increasing customer demands, especially from young adults
The continued interest in and growth of international trade has driven numerous business organizations to embark on a global operation. The (2007) cites that global markets have rendered extensive opportunities for business firms to increase sales; boost capacity for investment and market share; gain access to a wide array of raw materials and technology; and exploit manpower skills from other locations. Hence, “going global” has become the key objective of most business organizations. However, the pursuit of a share in the global market entails extensive research, preparation and capacity building across all levels of the business firm. According to (2006) cultural differences, government laws and regulations, local business practices, and distinct needs and preferences of the consumers in a particular market are some of the issues that have to be taken into consideration before penetrating a global market.
The pursuit of a global business operation is presently a concern of Scenarios Crisps and Snacks, 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 massive success with the British 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 provide information regarding the status and opportunities of the crisps and snacks market in Hong Kong by considering three areas – general characteristics of the consumers, dominant snacks and crisps products in the Hong Kong market, and entry strategy. Specifically, the report tries to answer the following research questions:
u What are the characteristics of the Hong Kong consumers that would make them appreciate crisp and snack food products?
u What specific crisp and snack items are highly accepted and patronized by Hong Kong consumers?
u What are some of the effective entry strategies that a business firm can utilize when it decides to enter the Hong Kong crisp and snack market?
In order to answer the research questions, the report first discusses the general characteristics of Hong Kong consumers as well as the type of consumers who are more appreciative of crisps and snacks food products. Second, the report explains the specific preferences of Hong Kong consumers relative to snacks and also presents some statistics on Hong Kong’s consumption of certain food products. Finally, the report identifies some forms of entry strategy that would work in Hong Kong by presenting specific examples.
The United States (U.S.) Department of Agriculture (2003) reports that as societies modernize, people are forced to adopt hectic lifestyles that make them indulge in snacks between meals. Thus, the global world gives birth to a breed of global consumers who have two similar characteristics – changing and busy lifestyles that drive 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 example of an urbanized society where people struggle to stay economically stable. Hong Kong has one of the most developed economies and highest standards of living in Asia. In 2004 the country’s per capita gross domestic product (GDP) was pegged at $23,680. The continuous economic prosperity of the country is supplemented by many people who are increasingly adopting Western lifestyles (Hong Kong 2007). Scott Reynolds, former United States Assistant Agricultural Officer in Hong Kong, once said that Hong Kong is generally a very receptive market for exports from other developed countries like the United States. He further elaborates by saying that Hong Kong is a fast-paced society marked by aggressive economic activities which makes it very similar to many cities in the United States. Accordingly, the progressive economy and busy lifestyles of the Hong Kong populace make fast foods and snack foods desirable as these products serve as quick meals for people who are always on the go ( 1991). Hong Kong has a population that is one of the most urbanized, affluent and receptive to new food products in the entire world. People in Hong Kong have diverse tastes and are willing to try new tastes and various brands. In 2001, the country obtained snacks imports worth US$ 234 million (US$ 50 million from China, US$ 33 million from Japan, US$ 21 million from South Korea and US$ 19 million from the United States (2003). Furthermore, (2001) states that salty snacks such as potato chips and pretzels are very popular among young people aged fifteen to twenty-four in Hong Kong. This is mainly due to the growing influence of Western countries to the Hong Kong population (). Reynolds explains that most people in Hong Kong, particularly the younger generation, have started to adapt the Western styles of living in the last ten to twenty years. This influence is evidenced by the spread of many Western-based convenience stores like 7-Eleven operating on a 24/7 basis and giving unlimited access to snacks and crisps products to young professionals and teenagers ( 1991). A report published by the Foreign Agricultural Service in 1999 showed the attitudes of some Hong Kong inhabitants regarding salty snacks. The study concluded that snack foods and salty snacks have generally been a highly lucrative business in Hong Kong due to increasing customer demands, especially from young adults
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