Académique Documents
Professionnel Documents
Culture Documents
Royal Medic established in 2002 (Royal Medic, n.d.). It is a brand under Wisdom
Come Medical Group Limited (Royal Medic, n.d.). Mission of Royal Medical is “Genuine
health is due to sincerity and genuine material” (Royal Medic, n.d., para. 4).
Wisdom Come Medical Group Limited is “consultant of Association of Hong Kong &
Kowloon Practitioners of Chinese Medicine Limited” (Royal Medic, n.d., para. 3). This
gives good reputation and confident to customers to purchase the company products.
Royal Medic cooperates with Mannings (Royal Medic, n.d.), which is a well-known
chain store in Hong Kong. Mannings has 300 stores in Hong Kong (Mannings, n.d.) which
provides dense marketing network and buying point to Royal Medic products.
Hong Kong ageing population is increasing and public is more aware to health issues
which increase demand of health products in Hong Kong. Number of traveler from
mainland increased every year and Hong Kong citizen income was increasing which backed
“Royalmedic Cardio Health” contains Papaya Powder, Coenzyme Q-10, Soluble Fiber,
Magnesium Stearate and Silicon Dioxide. The product claims that it can keep heart healthy,
promote smooth blood circulation, help body excrete waste, against oxidation stress and keep
the guarantee label and adding ingredients’ pictures onto the package.
The price strategy is suggested that the price should remain unchanged for the mass
market.
The place strategy is suggested that Royalmedic continuous cooperates with Mannings
Cardio Health” on the existing advertisement. We set 3 strategic opportunities that are
Chinese Lunar New Year, Labor Day Golden Week and National Day Golden Week. We
suggest that posting advertisement in MTR station, using HK$210,600, purchasing MTR
adventising package together with production and installation advertising every day in month
In ethical market strategies, we divide it into 4 parts that are without high pressure
Customers are free to make the decision about they need the product or not. Customers
Informed consent is to expose full information to customer for informed buying decision.
Together with real possible benefits and disadvantages, our customers can make their buying
Strict Product liability is indicating to the liability of all the parties among the procession
of manufacturing a product for damages caused by the product (Ezine articles, 2008).
Royalmedic takes notice on strict product liability and places importance on the safety of the
products.
The price of “Royalmedic Cardio Health” is comparative low, unchanged and clear
labeled. This not only maintains the competitiveness in mass market, but also provides
3
Content:
4. Budget P.15
6. Reference P.19
4
1. Situation Analysis:
A. Company Profile:
Royal Medic established in 2002 (Royal Medic, n.d.). It is a brand under Wisdom
Come Medical Group Limited (Royal Medic, n.d.). Wisdom Come Medical Group Limited
is registered in Hong Kong providing products includes traditional Chinese medicine, Western
Mission of Royal Medical is “Genuine health is due to sincerity and genuine material”
B. Marketing Environment:
A. Micro Environment:
Consumer Evaluation:
We mainly divide our customer into two categories. One is the people who have obvious
concern on cardiovascular health. Other is the tourists who have strong consumption power
In fact, since the flow of the information is more rapidly and globally, people are easier to
obtain the data, such as the prevalence or mortality rate of cardiovascular health. Therefore,
the awareness of preventing disease is raising, hence, those people are willing to spend more
On the other hands, tourists from China Mainland have huge spending power and they are our
main target consumer too. Actually, people in China tend to buy health care products from
Hong Kong rather than China because the monitoring system in China is not credible.
Competitor Analysis:
Cardio Pro as a health care product is also for cardiovascular health too.
one health care product for cardiovascular health using double-effect dissolved suppression
technology. They claimed that their product can dissolve the waste of blood vessels and
5
promote the inhibition of cholesterol synthesis. Therefore, it is work for maintaining healthy
As the main competitor, the strength of Cardio Pro is that they have online shopping and
much more Internet promotion than “Royalmedic Cardio Health” (BonBon Tong.com, 2013).
Cardio Pro offers online shopping service through BonBonTong which is a health and
beauty e-shop. People can buy the products of Herbs from Taiwan directly through that
convenient service from Internet. Furthermore, Cardio Pro promotes itself in Internet, such
as facebook fans page so that people can find out the information of their products or the
Public:
Finance public:
Honk Kong play a fundamental role in development in China. Hong Kong put the
emphasis on developing finance and international trade instead of heavy industry nowadays
(Hong Kong Economy HKSAR, 2012). A lot of banks provide finance service to Hong
Kong companies. Therefore, companies can collect and lend easily in Hong Kong.
Media public:
According to the basic law, Hong Kong media can show their opinions without any
political restriction. With the mass media development and freedom of media, our media
can co-operate with international media with easy. There are 47 daily newspapers and 652
magazines in Hong Kong (香港電台網站, n.d.). Therefore, our media publics can allow us
Government public:
The Hong Kong government insists the low tax rate, which can encourage trade and
production. The tax rate in Hong Kong is 17.5% (全球台商服務網, 2012). On the other
hand, our government does not affect the system of finance and bank in Hong Kong (全球台
商服務網, 2012). Also, ICAC put much efforts on Hong Kong for the favorable the trade
6
environment (全球台商服務網, 2012). It can provide the customers with a fair chance to
trade. Moreover, the high transportation rate of airport can attract oversea customers too (全
球台商服務網, 2012). Therefore, our financial public can provide us with a chance for
international trade.
General public:
Hong Kong citizens are more and more aware to body health. Under high frequency of
life, Hong Kong citizen normally without time to take care their body. Therefore, fast and
efficient way to maintain healthy body is in demand which create opportunity to health
products.
B. Macro Environment:
Demography:
In the end of 2012, Hong Kong population was more than 7 million, more than 90% are
Chinese (Census and Statistics Department, HKSAR, 2013), and expected it will continuous
to increase. Ratio of male to female in Hon Kong was around 370:427 which showed that
more female than male (Census and Statistics Department, HKSAR, 2013). One third of
population in Hong Kong was in middle age (Census and Statistics Department, HKSAR,
2011). Population density in Hong Kong was around 55 thousand/km2 (Census and
About occupation, around one fifth of Hong Kong citizen works in “import/export,
wholesale and retail trades” industry (Census and Statistics Department, HKSAR, 2011).
In the end of 2012, it was expected that population in China will more than
increase. Ratio of male to female in Hon Kong was around 4873:5127 which showed that
more male than female but it is needed to notice that population of female was increased
China has much higher population density than north west China.
About occupation, In China, population works in primary, secondary and tertiary industry
Economic Environment:
Kong Citizen income was increasing. Under the condition of devaluation, price of goods
Median of monthly income of Hong Kong citizen was continuously increasing from 10
thousand to 11 thousand from the year of 2001 to 2011 (Census and Statistics Department,
HKSAR, 2011).
Figure1.13 shows that total GDP of China was increasing from 2007 to 2011 and
9
Natural Environment:
Figure 1.14 shows that open space in Hong Kong only has 4% only. As land resource
Cultural Environment:
Language of Hong Kong official language includes English and Chinese (Kwintessential.
n.d.). Cantonese is common spoken language among Hong Kong citizen (Kwintessential.
n.d.) and more and more Hong Kong citizens speak Mandarin. Mandarin is official and
others among Chinese and it is important in business section (Frans, 2009; Kwintessential.
behaviors and ethics that stress the obligations of people towards one another based upon their
relationship. Confucianism stresses duty, loyalty, honor, filial piety, respect for age and
(Frans, 2009). They are more affected by the brand effect during making the buying
decision (Frans, 2009). As China economy is well, Chinese people basic needs is satisfied
and seeks for high level of needs such as being healthy (Frans, 2009). New generation of
China has much better education level that previous, so they are more familiar to technology
(Frans, 2009).
C. SWOT Analysis:
Strength:
Wisdom Come Medical Group Limited is “consultant of Association of Hong Kong &
Kowloon Practitioners of Chinese Medicine Limited” (Royal Medic, n.d., para. 3). This
gives good reputation and confident to customers to purchase the company products.
Royal Medic cooperates with Mannings (Royal Medic, n.d.), which is a well-known
chain store in Hong Kong. Mannings has 300 stores in Hong Kong (Mannings, n.d.) which
provides dense marketing network and buying point to Royal Medic products.
Opportunity:
Hong Kong ageing population is increasing and public is more aware to health issues
which increase demand of health products in Hong Kong. Number of traveler from
mainland increased every year and Hong Kong citizen income was increasing which backed
Weakness:
Royal Medic did not develop now product recently and relied on existed series of
products.
In general, new generation, such as teenage and young adult, is not so familiar to theory
of traditional Chinese Medicine. This may become an abstraction when promoting Royal
Health products are normally needed to be taken for few weeks or even months which
11
may loss royalty from customers due to slow action of products.
Threats:
More and more health product retail shops are established, competition in Hong Kong is
increasing.
Western health products commonly have well presented mechanism of action which
cause customer with high confident to purchase Western health products than Chinese health
products.
D. Product Evaluation:
“Royalmedic Cardio Health” contains Papaya Powder, Coenzyme Q-10, Soluble Fiber,
Coenzyme Q10 with reliable evidences that it can used to lower the blood pressure, thus
Papaya powder is one of the selling points of “Royalmedic Cardio Health”. Main
The product claims that it can keep heart healthy, promote smooth blood circulation, help
body excrete waste, against oxidation stress and keep blood vessel healthy(御藥堂, n.d.).
2. Marketing Objective:
3. Marketing Strategies
A. Target Market:
Based on demographic perspective, the market segmentation of this product is aged over
45.
According to figure 3.11, the percentage of total population in Hong Kong who are over
45 years old has been rising dramatically. In 2008, there were only 42.3% citizens in this
12
group. However, the percentage was increased rapidly by 3.4% to 45.7% in 2012.
Since there is a serious aging population in Hong Kong society, more middle ages would
On the other hand, some late ages would probably have to face those problems caused by
a decline of body function. Additionally, they might generally have other geriatric disease
such as diabetes, arthritis and osteoporosis which enhance their awareness to pay attention to
B. Product Strategy:
Improving the package is one of the most important actions in product strategy since it
provides a first impression to those customers. For health product, the most significant
Firstly, it should include the guarantee label on package. For instance, the product
should include the label of A-Mark Quality Chinese Medicine Authentication Scheme which
is proved by Hong Kong Chinese Medicines Authentication Centre. All products with
‘A-Mark’ must be tested through three significant procedures and taken at least eight samples
under the annual safety inspection (Hong Kong Chinese Medicine Authentication Centre,
13
2012). Therefore, it would be a great advantage for “Royalmedic Cardio Health” with an
‘A-Mark’ comparing with other competitors for providing senses of profession, safety and
stability.
Secondly, adding ingredients’ pictures onto the package. It could greatly help those
elderly people to understand clearly what ingredients are involved in the particular product
C. Price Strategy:
The price strategy is suggested that the price should remain unchanged for the mass
market. Since there are lots of competitors in the market, keep selling at a lower price could
Health” is only sold at $299 per 60 pills while Cardio Pro and Heart Support Factor are sold at
$660 and $570 per 60 pills respectively Concord Alliance Lt, 2012).
Cardio Health” is the cheapest which gives a strong motivation to the targeted customers.
D. Place Strategy:
Wide-coverage is one of the most crucial elements of distribution in order to reach those
The “Royalmedic Cardio Health” is mainly sold in Mannings recently. The place
strategy is that continuing to sell this product in Mannings in Hong Kong. Since there are
14
300 Mannings chain store in Hong Kong, customers could easily buy the products in a
convenient and effective way. Furthermore, Mannings Health Advisors in there would also
provide some information and explain the dosage of “Royalmedic Cardio Health” to
E. Promotion Strategy:
Since Royal Medic used to emphasize the promotion of Chinese Caterpillar Fungus such
as CS4 and CS5 which are very famous in Hong Kong, we should use this brand name and
reputation to attach the product of “Royalmedic Cardio Health”. It will then satisfy the
Cardio Health” should consist of promoting safety guarantee, cheap price and the
As one of our target customers is traveler from mainland China, we set our strategic
opportunity to 3 annual 7-day national holidays of China. They are Chinese Lunar New
Year, Labor Day Golden Week and National Day Golden Week. During that 3 strategic
4. Budget:
Using HK$210,600, purchasing MTR adventising package together with production and
installation, posted in Admiralty, Wan Chai, Causeway Bay, Tin Hau, Fortress Hill, Tsim Sha
Tsui, Jordan, Mong Kok, Prince Edward, Tsuen Wan, Kowloon Tong Station (JCDecaux
Transport, 2012) everyday in month of Chinese Lunar New Year, Labor Day Golden Week
15
5. Ethical Marketing Strategies:
We divide ethical marketing strategies into 4 parts that are without high pressure selling,
“Royalmedic Cardio Health” does not exaggerate its benefit, as most of its benefits are
The style of Royalmedic advertisements is user feedback to the product, which is not
someone wearing a lab coat acting like a doctor or professional, so Royalmedic is not using
the image of professional to mislead people having a sense of feeling about it is a powerful,
godlike medication.
Customers are free to make the decision about they need the product or not. Customers
Informed consent:
Informed consent is to expose full information to customer for informed buying decision.
Therefore, not only improve package of “Royalmedic Cardio Health” including the
guarantee label and adding ingredients’ pictures onto the package, but also the package need
Together with real possible benefits and disadvantages, our customers can make their
Strict Product liability is indicating to the liability of all the parties among the procession
of manufacturing a product for damages caused by the product (Ezine articles, 2008).
Under strict product liability, every small pieces of manufacturer or assemblers of the
product owning by the wholesaler or any retail store should be ensure that no defect of the
product will lead to harm to the consumer or anyone using that product (Ezine articles, 2008).
In fact, Royalmedic has putting lots of effort on providing safe and reliable products to
16
the consumer. The business philosophy of it is to orientate their products as professional and
rigorous. Besides, it also uses updated technology and newly scientific research to promote
Royalmedic have been appraised by many experts in order to make sure that the products will
not cause any side effect or damage to the consumer (御藥堂, n.d.).
Therefore, Royalmedic has many guarantee labels, such as the label of A-Mark Quality
Chinese Medicine Authentication Scheme. This label is proved by Hong Kong Chinese
Medicines Authentication Centre. After three significant procedures testing and taking of at
least eight samples for the annual safety inspection, products which pass can get an “A-Mark”
Furthermore, the products of Royalmedic have sent to IACM, Institute for the
advancement of Chinese medicine LTD, for quality inspection services. It is to make sure
that the content of heavy metals, pesticide residues and microscopic organisms is in
Hence, we can see that Royalmedic takes notice on strict product liability and places
Fair Price:
There are three values about fair pricing ethics. Firstly, respect for consumer’s
autonomy. Secondly, the actual benefits bring to consumers through pricing. Third, the
fairness and equal opportunity related to third parties such as competitors, potential
consumers.
In respecting the consumer’s autonomy, the Mannings Health Advisors will not give any
suggestion based on the price to consumer actively. They will only telling them the recent
favorable price when the consumers inquire for any promotion. Since the advertising will
create wants and the desire to buy must be independently accepted by individual, it may
violate consumer autonomy ethically if the promotion were advertised intensely by the
17
advisors.
Moreover, the price must be authentic as the authenticity will affect the consumer’s
autonomy. Therefore, the price of “Royalmedic Cardio Health” always been unchanged and
clear labeled.
comparing the similar products which sold at Mannings, “Royalmedic Cardio Health” is only
sold at $299 per 60 pills while Cardio Pro and Heart Support Factor are sold at $660 and $570
There are lots of similar products sold at Mannings, they are all in different price and the
range is wide. However, comparing with the brands which are not famous in Hong Kong,
“Royalmedic Cardio Health” sold at the similar price which also between $250 and $350
generally. On the other hand, comparing with the well-known brands, it provides more
reasonable price.
Therefore, the price not only maintains the competitiveness in mass market, but also
18
6. Reference:
Census and Statistics Department, HKSAR. (2011). Summary results. Retrieved from
http://www.statistics.gov.hk/pub/B11200552011XXXXB0100.pdf
Census and Statistic Department. (2012a). Monthly report on the consumer price index
http://www.statistics.gov.hk/pub/B10300012012QQ03B0100.pdf
Census and Statistic Department. (2012b). Table 002: Population by Age Group and Sex.
Retrieved from
http://www.censtatd.gov.hk/hkstat/sub/sp150.jsp?tableID=002&ID=0&productType=8.
http://www.censtatd.gov.hk/hkstat/sub/so20.jsp
http://www.meiriki-jp.com.hk/index.php/ctr-product/tid-13/pid-5/weblan-3/
http://ezinearticles.com/?What-is-Strict-Product-Liability?&id=1492833
http://www.fransgiele.be/freematerial/2009chineseconsumerbehaviour.pdf
Hong Kong Chinese Medicine Authentication Centre. (2012). A-Mark Quality Chinese
http://www.hkcmac.org/hkcmac/page/amark?lang=en
http://www.hkeconomy.gov.hk/en/home/index.htm
http://www.kwintessential.co.uk/resources/global-etiquette/hongkong-country-profile.ht
ml
http://naturaldatabase.therapeuticresearch.com/%28X%281%29S%28qlstga45qqvdre55o
bzl3w45%29%29/nd/Search.aspx?cs=&s=ND&pt=100&id=938&fs=ND&searchid=399
80678
http://www.pland.gov.hk/pland_en/info_serv/statistic/landu.html
http://www.royalmedic.com.hk/index.php?option=com_content&view=article&id=10&It
emid=4&lang=en
http://www.umm.edu/altmed/articles/coenzyme-q10-000295.htm
supplements/ingredientmono-69-PAPAIN.aspx?activeIngredientId=69&activeIngredient
Name=PAPAIN
BonBon Tong.com。(2013)。《草姬活心丸(三七強效版)》。檢自
http://www.bonbontong.com/ItemDet.aspx?CateId=6e797a85-d156-4f6d-9fd9-7253be24
6c5a&ItemID=0309143f-8ab8-4f45-a04e-0fac70853e0d
http://www.stats.gov.cn/tjsj/ndsj/2011/indexch.htm
告》。檢自 http://www.gov.cn/gzdt/2009-12/25/content_1496443.htm
(GDP)資料修訂的公告》。檢自
http://www.gov.cn/gzdt/2010-07/02/content_1644101.htm
http://www.gov.cn/zwgk/2012-09/05/content_2217342.htm
(GDP)情況》。檢自
http://www.gov.cn/gzdt/2012-10/23/content_2249478.htm011/2713/68/64/7_1.html
全球台商服務網。(2012)。《經濟環境》。檢自
http://twbusiness.nat.gov.tw/countryPage.do?id=10&country=HK
香港電台網站。(n.d.)。《大氣候轉變下的香港傳媒》。檢自
http://www.rthk.org.hk/mediadigest/20020415_76_21455.html
草姬 HERBS。(2010)。《草姬洋方系列》。檢自
http://www.newimmax.com/herbs_product_b1.html
御藥堂。(n.d.)。《公司簡介》。檢自
http://www.royalmedic.com.hk/index.php?option=com_content&view=article&id=10&It
emid=4&lang=zh
御藥堂。(n.d.)。《心血通(輔木瓜精華膠囊保健食品)》。檢自
http://www.royalmedic.com.hk/index.php?option=com_content&view=article&id=55&It
emid=7&lang=en
21