Running Head: BUSINESS

International marketing strategies for Zooter Company

[Name of Institute]
[Name of Writer]
Table of Contents
Introduction.................................................................................................................................................3
Company’s overview...............................................................................................................................3
Report objective......................................................................................................................................3
SWOT Analysis.............................................................................................................................................3
Strength...................................................................................................................................................3
Weakness................................................................................................................................................4
Opportunity.............................................................................................................................................4
Threat......................................................................................................................................................4
Internal Analysis..........................................................................................................................................5
Porter’s value chain Analysis...................................................................................................................5
Primary Activities.................................................................................................................................5
Secondary Activities.............................................................................................................................6
External Analysis..........................................................................................................................................7
PESTLE Analysis........................................................................................................................................7
Political................................................................................................................................................7
Economic.............................................................................................................................................7
Social...................................................................................................................................................7
Technology..........................................................................................................................................7
Porter’s five forces Analysis.....................................................................................................................8
New Entrants threat............................................................................................................................8
Substitutes Threat...............................................................................................................................8
Customers’ Bargaining Power..............................................................................................................8
Suppliers’ Bargaining Power................................................................................................................9
Competitive Rivalry..............................................................................................................................9
International positioning, targeting and segmentation Analysis...............................................................10
Segmentation........................................................................................................................................10
Target Market........................................................................................................................................11
Positioning.............................................................................................................................................11
Analysis of marketing entry mode.............................................................................................................12
Marketing Mix Analysis.............................................................................................................................12
Product Strategies.................................................................................................................................12
 Place......................................................................................................................................................13
Pricing strategy......................................................................................................................................13
Promotional strategies..........................................................................................................................13
Marketing Control Recommendations......................................................................................................14
Introduction

Company’s overview

Zotter Company is among the best producer of chocolate in the globe and it is among the

sustainable business of Austria. Up to five hundred distinct chocolate flavors, pure origin single

Labooko chocolates, hand-scooped chocolate products with seductive fillings, individual

chocolates, handmade bonbons, beautiful couverture and decorations for baking and much more.

Report objective

The main aim of this assessment is to give international marketing plan for Zotter

Company’s entry into the chocolate market of Hong Kong. This report will provide international

marketing strategies for Zooter Company along with the environment analysis of Hong Kong’s

chocolate industry.

SWOT Analysis

Strength

In Hong Kong food industry some of most famous trends have started several years ago

however, are going strong still and in increasing demand. GMO-free, soy-free, vegan, dairy-free,

and Gluten-free are common things that customers are demanding in their food increasingly. The

more brands that can integrate a product, the greater the number of its potential buyers.

Chocolate production, of course, satisfies a large number of these needs. The specially crafted

seventy % dark chocolate bar is mostly dairy, gluten, soy, vegan free and easily non-GMO.

While many companies must adapt their products to these well-known patterns, the chocolate

industry is already poised to take off (Hartatri, 2022).

Weakness

The hurdles for a section to become a specialty chocolate maker are incredibly low.

These days, anyone can buy online a pack of cocoa beans, a small machine of conche, and start

selling and making chocolate. This is where the top brands in the specialty chocolate industry

really got their start. This motivated many to start a life in chocolate and helped fill the market

with the options we know today. Be that as it may, it also allowed traditional people to become

chocolate makers without having to follow specific expectations of learning and adaptation (and

without waiting for a certain degree of proficiency before they start selling). The result is that the

offer has evolved beyond what interest could actually swallow. Most consumers have found no

valid justification for spending money on high quality chocolate.

Opportunity

While many brands across businesses are now taking full advantage of web

entertainment, chocolate makers are still unable to maximize opportunities for consistent,

targeted use of virtual entertainment. If they presented a more predictable online presence, their

transactions and overall business image would benefit from it. Engagement can start with

incremental steps, from taking better photos, creating more meaningful gifts and remembering

calls to action, to sticking to a virtual entertainment program and consistently attending trade

shows (Frolova, 2019).

Threat
 Speaking of the power of advertising, the big manufacturers are doing everything they

can to bridge the gap between their products and the high-end products. They do this by using

words like "Single Beginning," "Bean To Bar," and "Art/Craftsman." They also include stories

from the farm and feature boxes of cocoa in their packaging. Their products don't really get

better (although they do get better from time to time), but the way they communicate with

customers is changing. Plus, it looks a lot like the signature chocolate shape.

Thus, they make modern chocolate (designed on a grand scale with ordinary cocoa) look

like artificial chocolate (delivered by small artisans with the most delicious cocoa on the planet).

With comparative jargon and narrative, there will be very little difference between the two items

prior to tasting, and buyers will see no reason to pay anything more for an "equivalent" item

(Frolova, 2019).

Internal Analysis

Porter’s value chain Analysis

Primary Activities

Zooter’s primary activities of value chain are involved directly in selling and producing

the chocolates to targeted audience.

Inbound Logistics: The examples of Zooter’s inbound logistics are internally distributing

components and raw materials to start production, storing the inputs, and retrieving raw

materials.

Operations: Zooter is ready for raw materials’ process into end product and then launch it in

Hong Kong market. Some examples of Zooter’s operational activities are testing, assembling,

packing, and machining.

Outbound Logistics: The Zooter’s outbound logistics activities involve delivering and

transporting to the destination, order processing, scheduling, warehousing, and material

handling.

Sales and Marketing: the sales and marketing activities of Zooter are building and quoting

relations with the channel members, channel selection, pricing, promotional activities,

advertising, and sales force.

Services: The post-sales and pre-sales services provided by Zooter play a significant role in

making customer loyalty (Ramli, 2017).

Secondary Activities

Firm infrastructure: the infrastructure of company denotes a series of activities, like strategic and

planning management, financing, accounting, legal matters handling, and quality management.

Human resource management: Zooter manage human resource by evaluating distinct HR factors,

like performance management, rewarding, training, selecting, recruiting, and other activities of

personnel management.

Technology: The example of Zooter’s technologic aspects are data analytics, product design

research, technology-supported customer service, and automation software.

Procurement: the procurement of Zooter denotes the procedure involved in input’s purchasing

that might range from raw material, supplies, machinery, equipment, and other products

important for making the finished product (Ramli, 2017).

External Analysis

PESTLE Analysis

Political

Zooter can be influenced by the political problems of Hong Kong if tax increases and this

will influence the customer’s proportion along with fall in stock’s sales. Today the main

government’s concern is increasing obesity in people. As an outcome of the survey per year

major heart issues are caused mainly because of chocolate products.

Economic

The interest rate could influence the Zooter’s production as if high interest rate is being

charged from Zooter then the firm will not prefer to itself to borrow high amount of money to

expand.

Social

People in Hong Kong are being conscious more about their eating habits and health.

Today as the consumer are well aware of their benefits and rights they have made the habit of

reading content of ingredient to ensure that chocolate product is according to their need

(Doherty, 2006).

Technology

To fulfil the increasing consumer demand and to endure in the competitive market Zooter

has to take important steps to fulfil the everyday requirements like survey of Hong Kong market

and etc.
Porter’s five forces Analysis

New Entrants threat

In Hong Kong for any new company, it is hard to endure competitive costs because of

“economies of scale”, that is why it would be difficult for Zotter but not impossible. Once Zotter

will enter in the HK market it will enjoy well-established distribution and supply chain channels

and well-maintained brand image. New entrants would have to compete for spaces of shelf and

other resources that will add up to form a high entry barrier. Thus on local level the new

entrant’s threat is low.

Substitutes Threat

In Hong Kong confectionary and sweets items are made by large restaurants and

companies and also by local shops and eateries at distinct varieties and price points. Though, the

substitute’s proportion is limited, users don’t face switching prices in changing to any substitute

item. Thus, the substitute’s threat is basically moderate force in Hong Kong industry, in which

Zotter wants to enter (Doherty, 2006).

Customers’ Bargaining Power

For confectionary industry the numbers of customers is very high. Furthermore, the size

of industry is up to 200 billion dollars with few leading players like Hershey’s and Mars with

sales in “tens of billions of dollars”. Per customer sales value with respect to whole sales is small

that means the customer’s bargaining power is low relatively in Hong Kong. Moreover, the

industry’s offered products are differentiated with respect to the composition and taste of the

products. Few of the chocolate items are exclusive to firms and are highly famous among the

users that indicates further the low customer’s bargaining power. The segment of customer is
also very wide and though the middle- and low-income customer segments could be sensitive to

price, the overall volume of customers dilutes the force. But there is no changing prices to

customers and also there are several users available, in that context there could be some ability of

bargaining for customers. However it is weak to moderate force overall to the industry of

confectionary in Hong Kong (Camacho-Gomez, 2016).

Suppliers’ Bargaining Power

The bargaining power of Suppliers in Hong Kong industry is low because of supplier’s

low concentration and large number of suppliers. Moreover, any largely differentiated or

exclusive product is provided by none of suppliers that means they could not influence

production by withholding product’s supplies. The firms could switch to other suppliers easily

without incurring major switching costs. Moreover, the suppliers could not pose a risk of

advance integration to the firms through developing competing items, since industry offers

differentiated products and poses high barriers to the entry. The supplier’s bargaining power

overall in chocolate’s Hong Kong industry is the weak force. However since Zotter globally

operates, suppliers in some regions could be limited and eat into company’s overall profitability

(Camacho-Gomez, 2016).

Competitive Rivalry

The HK’s chocolate industry with the low growth rate is in early maturity phase and thus

there is intense competition between rival companies to capture the share of market. In the

industry there are some but big players. There is competition by local confectionaries and

bakeries that operate on lower scale. This all adds to the rivalry in competition. Moreover, for

entering in such costly industries, there are high exit barriers of paying off debts and wrapping

up infrastructure. Even low profitability players continue to work in this market. Moreover the
competition of price is high and though, it is subset of food market, there is no switching costs to

a competitor (Camacho-Gomez, 2016).

International positioning, targeting and segmentation Analysis

Segmentation

As proved by extensive product’s variety on shelves of the markets, distinct customers

have distinct desires and interests. In desires the variation stems out of diverse needs and benefits

of the consumers. This fact must be known by Zotter Company. Segmentation is among the

marketing approach that the firm should utilize to serve the targeted consumer’s needs in Hong

Kong market. According to den Poel, Junker (2004), “Segmentation is procedure of categorizing

the market into different groups of consumers who have same needs and behave in similar way”.

The procedure is based on specific-product aspect where the customer needs are showed by their

responsiveness and differences to the marketing variables, like purchase behavior, preference, or

loyalty (Hartatri, 2022). In Zooter case, young people and schoolchildren are the main target

customers. The organization must offer greater value to these customer meetings by creating a

promotional mix that serves their interests, such as the flavor of chocolate. The main

segmentation problem of an organization must be segmentation by segments. The market

division is completed based on segment factors such as daily life cycle, wages, and age. There

are changes in the needs and requirements depending on the age rates. Chocolate is an extremely

attractive product for young people over the age of four and adolescents between fifteen and

twenty five years of age. Kamakura and Wedel (2012) argued that advertisers would have more

confidence in their target market by segmenting the market by age, thereby promoting skill and

efficiency (Shariff, 2014).

Target Market

After evaluating the recognized segments, it will be important for the company to use an

appropriate targeting methodology. There are three targeted promotion systems that a context

analysis organization can use in Hong Kong market: concentrated advertising, split display, and

undifferentiated promotion. From a closer perspective, a concentrated demo would be better for

an organization in Italy, where there are big contenders. Such a system of targeted promotion is

based on special advertising. This allows the organization to compete with existing large

organizations by focusing its limited assets on meeting specialist requirements. Zooter can adjust

its chocolate products and costs to serve the interests of a carefully distinguished segment.

Chalasani and Shani (2013) found that the benefits of concentrated demo are high for small

organizations wanting to venture into unfamiliar business areas (Jovanov, 2016).

Positioning

Kotler et al. (2015) referred to demonstrating a situation as “where many traits come

together to form an idea intended to capture the embodiment of what the target audience is

looking for in a class of items”as such, it is the most common way of matching an item to fill an

attractive, specific, and unmistakable space, in light of the existing competition, in the target

buyer's brain. Zooter may decide to coordinate its placement methods in new business sectors by

coordinating an advertising mix consisting of four factors: distribution, value, promotion, and

product. Product placement suggests that an organization can isolate its chocolate product from

its competitors in light of benefits, functions, or features (Jovanov, 2016). For example, Zooter

Chocolate produces flavored chocolate that reduces the risk of diabetes. Cost/quality positioning
implies that an organization can set an exorbitant price for its product to characterize its quality.

This ensures that the company is on par with various applicants.

Analysis of marketing entry mode

According to Grogaard (2019) collaborative efforts, permitting, leasing, shipping, and

outright speculation are some of the options to penetrate global business sectors. It's smarter to

approach neighboring chocolate merchants to infiltrate Hong Kong and essentially insulate

yourself from the political vulnerability that neutralizes outsiders. Since the provider seems to be

popular in the area, this is an effective way to gain access to a larger market and scheduled

customers. Due to the language barrier, the nearest merchant will be extremely helpful in getting

your message across to people on the ground. To follow the excellent image of Zooter, the store

belonging to the production line will be located in a very good quality shopping center (Shariff,

2014).

Marketing Mix Analysis

Product Strategies

The approaches developed for the entry of an organization in the market are called

position systems. Commodity procedures depend on quality, quantity, cost, etc. from products

like Zooter, who need to build systems out of their chocolate, and to do that, they need to think

about the quality, quantity, and value of the product that will sell to the Hong Kong market. Item

methodologies also take into account the difference between the items in the item to be sent and

the existing item being searched for (Lobova, 2010).

Place

Before entering the market, the choice of location is also important for Zooter. Choosing

where to send their chocolate will also help them reduce the risk of disappointment. It also

includes a merchandise circulation methodology. The distribution of products like chocolate

requires so much attention and complex work from the suppliers, since the suppliers complete

most of the work of getting the products to the customer. Choosing the best suppliers will help

Zooter enter the Hong Kong market (Shariff, 2014).

Pricing strategy

The interest in the goods usually depends on the quality and cost of the desired product.

Thus, each organization must develop methodologies to evaluate its product, and this evaluation

depends on the total cost, quality and, in addition, the value of the applicant's result. Zooter will

create systems to price their chocolate by calculating the absolute value in addition to the profit

they need, however before declaring the value the organization must remember the value of the

applicants chocolate as there are countless brands of chocolate out there currently on the market

(Bakri, 2021).

Promotional strategies

Nowadays, development plays an important role in the dispatch of a new product, and it

also helps the search result of that product. The promotion must be possible through television

promotions, banners, magazines, newspapers, etc. to make the product known to the majority of

the population. One way Zooter could use to get its chocolate known to the Hong Kong market is

by selling a small quantity of free chocolates to teenagers and children. This can help them get
your product known in searches. The system that the organization will probably use is promotion

through banners, newspaper, magazines, television, etc. to start your business in the Hong Kong

market in an amazing way (Bakri, 2021).

Marketing Control Recommendations

Zooter Chocolate is required to guarantee an open door by choosing the right serious

technique. In the system, the company must figure out what it brings to the table for the two

business sectors. A company must focus on the four important coordinating factors of an

advertising mix: promotion, location, product, and cost.

The chocolate produced by Zooter Chocolate has many textures, including that of a bar.

The tile is covered with cream and covered with a smooth chocolate glaze. The association's

merchandise also features a flowing structure that is served in the company's bistros and shops.

What will make the chocolate produced by the organization more exceptional in two business

sectors is that it contains higher amounts of cocoa flavanols, which reduce risk factors for

diabetes and dementia. The pulse also decreased. In addition, the company can control its

product to serve the interests of customers. For example, one organization designed its chocolate

in the shape of rugby balls compared to buyers in Hong Kong (Evianah, 2022).

It will be important for the organization to supply its candies in standardized sizes and

batches. These are the factors that will deeply characterize the value of a pip. The Zooter

Chocolate product must be presented in the largest confectionery segment. This will expand the

choice of buyers. Finally, the company needs to elevate its product to increase interest in

unknown business sectors. Businesses must use virtually every type of broad media available in

the country, including newspapers, magazines, the Internet, television, and radio. Since the vast
majority of the target buyers are well-informed, the business must make extensive use of the web

scene to connect with them. The convincing execution of the above mentioned aggressive

methodologies including PESTEL validation, STP model, proper business sector approval modes

and coordinated demo mix will bring outstanding achievements for the development of Zooter

Chocolate worldwide.
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