Hung Fook Tong: From Hong Kong to China
(7 pages of text)
In 2014, the general manager of the established and successful Hong Kong-based company Hung Fook Tong, which produced and sold herbal teas, wondered how his company could profitably expand to mainland China. After Hung Fook Tong’s recent initial public offering on the Hong Kong Stock Exchange, its shareholders’ equity had tripled. The initial public offering committed Hung Fook Tong to expanding its business in mainland China; however, that market posed many challenges, in part because it represented a far larger market. The general manager knew it was critical to determine a suitable and successful expansion strategy.
This case is suitable for courses in marketing or in an introductory service leadership at the undergraduate or graduate level. It can be used to meet the following teaching objectives:
- To introduce the analysis underlying marketing strategy formation: customer, company, collaborator, competitor, and context (including culture);
- To explore the aspiration decision: segmenting, targeting, and positioning;
- To initiate an action plan: developing the marketing mix with product, promotion, place, and pricing; and,
- To better understand the role of leadership and how can it influence the success of a retail service organization.
Hong Kong, Large, 2015
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