Strategic Management Group ProjectTopic: Hoe Hin Pak Fah Yeow

Group member: Huen Pui Wan 201023020E Leung Yuk Ting 201023022EWong Kwok Chung 201023024ECheng Man Chung 201026011E

Lau Chi Wa 201023028ELam Ming Kwong 201023031E Lau Wing Sum 201026013E

Introduction of Pak Fah Yeowset up by Mr. Gan Geok Eng for 80 years since

1927 in Singaporedeveloped the medicated oil of White Flower

Embrocationused to be a merchant operating confectionary,

bakery and provision storesinitially developed for private usedecided to produce it on a commercial basis and offer for general saledecided 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 expertisemade a lot of changes in the product and the

innovation promotionaim 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 publicTeenagers 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 Strategiesdevelop different new products

E.gWhite Flower Embrocation- Floral, White Flower Embrocation

improve its image community services by sponsoring activities

make the brand more youngsegmenting 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 Sale Income donated to "PE Link" Charity Fund

Hoe Hin Pak Fah Yeow 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 Fah Yeow 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 Strategy2011 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 Fah Yeow 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

promotionAdvertising

Extensive outdoor advertising-ChinaSale promotion

Public relation charitable and social organizations as

philanthropic eventsPersonal selling

joined the “Hong Kong Brands and Products Expo

ImplementationTotal turnover representing a decreaseProfit from operations before fair value changes of financialProfit attributable to shareholders was increase largely attributable to the increase in fair value changes of our investment

properties and securities investmentsRevenue from sales for this year less than previous year attributable to less contribution from Hong Kong and Mainland

marketmaintained market penetration strategies with more marketing

effort on Hoe Hin Strain Relief and Fúzăi 239 expand distribution network

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.

Recommendationsthe family conflict may appear in the companywhether bringing professional outside into the

company would help to solve this problemwhat would be the problem that would bring to

the company how to solve the problem between old staff and

the new CEO is neededthe unpopularity of the new productanalyzing 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