Beruflich Dokumente
Kultur Dokumente
Assessment
1
Introduction
Page Number
5-8
Market Opportunities
9-10
Recommendations
Discuss THREE (3) ideas each the company can make use of the
identified opportunities mentioned above to increase its profit.
11-12
Conclusion
To sum up the assignment and explain what you have learned from
the project.
13
Bibliography
14-18
References
19-57
(b) Pricing
Quality is one of the core values of Eu Yan Sang. Therefore, Eu Yan Sang set prestige
objective as their pricing objective which focuses on product quality. Pricing strategy that
Eu Yan Sang practice in this context is market skimming. For example, Eu Yan Sang has
products which have high image and high quality, like Pure Pearl Powder. There are only
few competitors in Traditional Chinese Medicine offering pearl powder in market. Price
policy that Eu Yan Sang implements is psychological pricing. This is because most
consumers would think of high price, high quality.
Next, Eu Yan Sang targets on sales maximization. In 2011, Eu Yan Sang
expanded 26 new TCM store and 4 new clinics to meet the volume objectives. The
penetration pricing strategy is taken by the Eu Yan Sang to meet the competitors. Its main
competitor, Brands uses the lower price to compete with Eu Yan Sang Essence of
Chicken. Brands Essence of Chicken is about RM48.80, but thanks to adoption of
economics of scales, price of Eu Yan Sang Essence of Chicken is only about RM36.80.
(c) Distribution
Eu Yan Sang has a wide distribution: Malaysia, Singapore, Hong Kong, China, and
Macau. Eu Yan Sang distributes their products through indirect channel, where they have
wholesalers and retailers acting as marketing intermediaries before selling products to
final customers. According to DMG Research from OSK, wholesales of Eu Yan Sang
majorly stems from Hong Kong (FY12 Results Review: Eu Yan Sang, 2012). Based on
the Standard & Poors Report in 2010, Mannings and Watsons are two examples of large
chain stores which Eu Yan Sang has chosen for selling their products with distribution
arrangement. In China, a major distributor has helped Eu Yan Sang to distribute products
like Bo Ying Compound and Bak Foong Pills to hospitals and pharmacies.
As for retailing, there are approximately 200 retail outlets of Eu Yan Sang in
Malaysia, Singapore, Hong Kong, China and Macau. In addition, there is Eu Yan Sang
Restaurant in Mid Valley Megamall, Kuala Lumpur. Eu Yan Sang has also acquired most
of the business and assets of Healthy Life Group Pty Ltd of Australia on 16 February
2012, according to The Edge Singapore. The organization has become the subsidiary of
Eu Yan Sang International Ltd, and directly, Eu Yan Sang has control over 125 stores
and a distribution centre for expanding its business to Australia.
Eu Yan Sang has used several types of transportation for distributing products.
Since Eu Yan Sang has its outlets majorly in five countries, air freight can help in
delivering the products of Eu Yan Sang to different countries fast. Motor carrier is
another option for Eu Yan Sang to deliver the products to retail outlets locally. There are
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(d) Promotion
Eu Yan Sang adopts sales promotion. The latest special promotion by Eu Yan Sang is
Moms Club Healthy Fun Fest. By getting 1 beautiful Bo Ying Cares Thermos Flask
Bowl with every purchase of 8 boxes of Eu Yan Sang Bo Ying Compound, it grants
consumers saving up to 15% on nutritional supplements for health care. It is a short-term
promotional activity organized by Eu Yan Sang to attract and stimulate consumers to buy
the company products. In addition, attach with bringing their child for height and weight
measurement to understand their nutritional needs for those who possess Eu Yan Sang
membership only. By using short-term incentives such as discounts coupons,
complimentary gift and membership entitled consumers to enjoy many advantages and
privileges.
Eu Yan Sang has launched much kind of advertisements in order to give
information to and persuade the members of the audience, such as media and paper. Eu
Yan Sang has created the Facebook page. Besides, Eu Yan Sang has also advertised
through television commercial, Astro. A blog named Malaysia Food Promotion has
advertised Eu Yan Sang during Chinese New Year. Besides, through celebrity
testimonials, Eu Yan Sang has invited Thomas Jack and two Malaysian singers to
promote their product, Essence of Chicken with Ginkgo Biloba Extract. With any single
purchase on the product, Eu Yan Sang will give Thomas Jack cups with three different
attractive designs.
In addition, public relation is another promotion of Eu Yan Sang. For example, Eu
Yan Sang have been organizing One Year One School Charity Campaign annually
since year 2005. The main purpose is to extent the support range in whole Malaysia that
let society participates in an education fundraising program. In order to support this
fundraising program, consumers only need to buy 3 boxes of Eu Yan Sang Essence of
Chicken with Ginkgo Biloba and the company will automatically allocate RM5 ringgit
into the One Year One School fund. Although it serves broader objectives, it will
indirectly establish a noble corporate image to promote the company products.
8
10
12
(2958 words)
13
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October
29,
2012,
from
Invest
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14
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Sang.
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Eu Yan Sang Chinese New Year Promotion. (2009, January 7). Retrieved October 29, 2012, from
Malaysia Food Promotion: http://www.foodpromotions.com.my/2009/01/eu-yan-sangchinese-new-year-promotion.html
Euromonitor International. (2012, May 4). Top 10 Consumer Trends for 2012: Smartphone
Universe.
Retrieved
October
30,
2012,
from
Euromonitor
International:
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Heng Hang Siong, T. C. (2011). Eu Yan Sang International LTD Annual Report 2011. Malaysia:
Eu Yan Sang Group.
History of Eu Yan Sang. (n.d.). Retrieved Obtober 12, 2012, from Eu Yan Sang Web site:
http://www.euyansang.com/index.php/eu-yan-sang/history
15
16
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21,
2012,
from
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investment:
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Sherwin (Director). (2011). Eu Yan Sang - Bak Foong Pills ( Pills At Work ) [Motion
Picture].
Teo, M. (2011, May 30). Eu Yan Sang Looks Beyond Retailing. Retrieved October 30, 2012,
from The Edge : http://www.theedgemalaysia.com/in-the-financial-daily/187343-eu-yansang-looks-beyond-retailing.html
The Eu Yan Sang Difference : Quality. (2012, October 29). Retrieved October 30, 2012, from Eu
Yan
Sang:
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The Edge Singapore. (2010, August 2). Eu Yan Sang to acquire 14.99% of ASX-listed
Healthzone for A$3.6m. Retrieved October 30, 2012, from The Edge Singapore:
http://www.theedgesingapore.com/component/content/article/18608.html
Tiang, A. (2012, April). Eu Yan Sang Rolls Out Health Magazine. Retrieved October 30, 2012,
from Marketing Interactive.com: http://www.marketing-interactive.com/news/32127
Tung, A. (2010, December 4). Chinese medicine increasingly recognized in US. Retrieved
October 30, 2012, from China Daily: http://www.chinadaily.com.cn/china/201012/04/content_11653206.htm
17
(n.d.).
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26,
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