Strategic Management Group Project Topic: Hoe Hin Pak Fah Yeow

Strategic Management Group ProjectTopic: Hoe Hin Pak FahYeow Group member: Huen Pui Wan 201023020E Leung Yuk Ting 201023022E Wong Kwok Chung 201023024E Cheng Man Chung 201026011E Lau Chi Wa 201023028E Lam Ming Kwong 201023031E Lau Wing Sum 201026013E

Introduction of Pak Fah Yeow • set up by Mr. GanGeok Eng for 80 years since 1927 in Singapore • developed the medicated oil of White Flower Embrocation • used to be a merchant operating confectionary, bakery and provision stores • initially developed for private use • decided to produce it on a commercial basis and offer for general sale • decided to enter into the Hong Kong market in 1951

Introduction of Pak Fah Yeow(Con’t) • has been passing its management to the new generation • providing appropriate professional accounting experience and expertise • made a lot of changes in the product and the innovation promotion • aim at reinforcing the “Hoe Hin” brand by focusing on different marketing initiatives

Mission to Society • active in community services by sponsoring activities • maintained the tradition of donating White Flower Embrocation to charitable and social organisations

Strengths • “Hoe Hin” is enjoying a long history company that has been set up for 80 years • Has an image of good quality as all of its products are made with natural components • Also has a lot of things to improve the quality of the process to manufacture the product . it’s got the certificate of GMP (良好藥品生產規範) • As “Hoe Hin” is a famous brand that can use its unique brand image to promote their new product

Weakness • “Hoe Hin” has got an image of old fashion that is only used by the elderly • The function of the product is linked with the “sickness” by the public • Teenagers will avoid using this product

Opportunities • People is concerned about the health is increasing, they prefer to use natural products • Hong Kong has been facing a lot of infection epidemics in recent years • Using of Lavender Oil becomes popular • Thus it promotes Lavender Oil and a Romantic Spray with disinfection function

Threats • There are many competitors which produce similar product. For example, Zihua Embrocation(紫花油) Po Sum On Medicated Oil(保心安油) • The existence of fake products using “Hoe Hin” brand name in China market affects negatively the brand image and profitability

Internal Strategies • develop different new products • E.gWhite Flower Embrocation- Floral, White Flower Embrocation • improve its image • community services by sponsoring activities • make the brand more young • segmenting to geographic and demographic feature customer makert • core value while developing new products • E.g Fruity and White Flower Strain

External Strategy Hoe Hin Pak Fah Victoria Park Lunar New Year SaleIncome donated to "PE Link" Charity Fund Hoe Hin Pak FahYeow Manufactory Limited on 2009 held at the Victoria Park Lunar New Year Sale, the sale of oil and white Fu Fu Tsai Tsai 239 million words patterns folder will be a total raised HK-based $118, 772.60. All funds raised will not be net of any costs, donated to support the "PE Link" charitable fund to help the helpless elderly and elderly in need free of charge for life enjoy the "PE Link" and other comprehensive care services.

External Strategy Yushu in Qinghai Province on April 14 a 7.1 earthquake, according to official figures, as at 17:00 on the 22nd, the earthquake caused a total of 2,187 dead and 12,135 people injured and 80 reported missing, so severe. Hoe Hin Pak FahYeow Manufactory Limited doing what limited power, and now appeal to all walks of life to support relief and reconstruction work in Qinghai. By the April 21 until May 14, the Company in Hong Kong and Macau every bottle sold, "Hoe Hin Pak Fah - Fu Tsai 239"product, then donated HK $ 10 at the Hong Kong Red Cross to support relief in Qinghai Use, offer to Yushu in Qinghai Province to make an effort compatriots ...

External Strategy 2011 Lunar New Year Festival Fair We cordially invite you to visit our booth (No. 143 Dry Goods) for our fundraising event during 28th January to 2nd February in Victoria Park Causeway Bay. This year, the beneficiary organization is “Society for Abandoned Animals Ltd. (SAA)” in that works whole-heartedly on animal’s welfare. Sales of our “Hoe Hin” products will be wholly contributed without deduction of the administrative and production costs to SAA for its “Animal Emergency Medical Fund”.

External Strategy Brand Hong Kong Products Expo at the same time the first was held in Beijing 「第十三屆北京．香港經濟合作研討洽談會」 This year's Beijing and Hong Kong will extend their communication and bridge the same time, Beijing and Hong Kong economic and trade cooperation and actively explore new models, new ideas, to promote to promote the implementation of CEPA

External Strategy More than 80 years of history and Hoe Hin Pak FahYeow Manufactory Co., Ltd., from the uninterrupted expansion, to ensure the quality of the "Hoe Hin Pak Fah" Referral to the world, including mainland China, Macau, Australia, Singapore, Malaysia , Thailand, the Philippines, the United States and Canada. At present, the "Hoe Hin Pak Fah" in South China, East China is more familiar to people, by this exhibition will further expand the business scope to other provinces, through into the consumer base, narrowing the distance to each other.

External Strategy

Promotion Strategy • Advertising • Extensive outdoor advertising-China • Sale promotion • Public relation • charitable and social organizations as philanthropic events • Personal selling • joined the “Hong Kong Brands and Products Expo

Evaluation of Hoe Hin • full of creativity and is active in responding to change • keep its company core value (long history, traditional and high quality) while developing new products • make the brand more young, to solve the traditional image of “Old fashion”

Evaluation of Hoe Hin(con’t) • the new product does not affect the core image of the company • develop a good image and open a new target market for the company • invest resources to promote Hoe Hin Strain Relief and Fu Tsai 239 series (white oil - quiet)

Evaluation of Hoe Hin(con’t) • managed by the new generation is successful because of the growing of the profit. • Revenue from sales of Hoe Hin brand of products increased • remained the major market of the Hoe Hin brand of products • Mainland China accounts for about 28.3% (2009: 28.0%) • Both contributions from Hong Kong and Mainland China had been more than last year • contributions from other regions had been improved.

Recommendations • the family conflict may appear in the company • whether bringing professional outside into the company would help to solve this problem • what would be the problem that would bring to the company • how to solve the problem between old staff and the new CEO is needed • the unpopularity of the new product • analyzing what types of new product “Hoe Hin” should develop in the future to match for the public need

Conclusion • the effort of the company to change the image, from product to promotion, in order to capture more target market • how the new generation of the company responding to the need of the environment • has an innovation in developing product and promotion • not have the complete plan in the process of developing product • has innovation of thinking and enlightening management style to keep its old staff loyalty and listen to both sides of opinions

Strategic Management Group Project Topic: Hoe Hin Pak Fah Yeow