OENOBIOL

Nutritional supplements in Hong Kong

Introduction- Oenobiol

Created in 1981

Launched an innovatory concept: a sun capsule

Core competencies: provide beauty & nutritive supplements

Implemented in 20 countries: Canada, Spain, Germany…

Project presentation

Hair & Nail care

Nourishes hair and nails Revitalizes hair

brightness Repairs damaged hair

Strenghthens brittle, split and streaked nails

Digestive care Balances the intestinal flora Helps digestion Avoids swelling stomach feelings

Skin care

Lightens complexion Reduces stress and weary

features Purifies skin pores

Specific pills for HK: whitens skin

Introduce nutritional supplements on the Hong Kong marketExpand Oenobiol brand image in one of the most attractive cities in the world

PESTEL

POLITICAL Stable political environment Guanxi

ECONOMICAL The most liberal economical city in the world Risk of counterfeiting Save our knowledges

SOCIO CULTURAL

• Strong cult of beauty & health• Important upper-class population with high

purchasing power• Exhibition of wealth culture• Cultural gap

TECHNOLOGICAL • High-level of R&D and innovation technologies

ENVIRONMENTAL

• Respect of global environmental agreement

LEGAL• Build joint venture• Chinese partnership• Special relation between Hong Kong and China

PORTER

RIVALRY: High

• Development costs for a drugs are high

• Other drugs competing for a market share of a given specific area

SUPPLIERS: High

• The main suppliers to the pharmaceutical industry provide Active Pharmaceutical Ingredients(API)

• API’s are needed by pharmaceutical companies in their development of drugs

BUYERS:Moderate

To succeed, players must ensure a high level of customer service, meet pricing and regulatory pressures

SUBSTITUTES:Moderate

Substitute products intensify competition further

NEW ENTRANTS: Weak

• Costly to players• Require a high level of intellectual

knowledge and an expensive marketing strategies

STAKEHOLDERSSTAKEHOLDERS

Reason for inclusion

Level of engagement

Support

CUSTOMERS Interest in productDefine need, quality feedback, purchase

LOW NEUTRAL

DIRECTORS Objectives, quality control,Team management, strategic decision, brand management

HIGH POSITIVIE

EMPLOYEES Commitment, knowledge and technical skills on the project

HIGH POSITIVE

GOVERNMENT Quality controls, market integration, taxes & regulations

LOW (can not help running the project)

NEUTRAL (financial support)

SHAREHOLDERS Expect ROI, dividends MEDIUM (have decision power)

POSITIVE

SUPPLIERS Raw materials, quality influence, delay respect and prices

LOW HIGH

DISTRIBUTORS Distribution channels knowledge, turnover, merchandising, brand image

LOW LOW

COMPETITORS Stimulate innovation and improvement

LOW LOW

MARKET & CONSUMER ANALYSIS

The GDP per capita (PPP) $42,700 Higher than in Europe.

Purchasing power is very high 2003: Hong Kong people are caring more about personal

hygiene and healthy lifestyle products within vitamins and dietary supplements were in high demand in 2005.

Vitamine and dietary supplement, sales rose by over 200% to US$129 million in 2003 compared to 1998

The more they are stressful, the more they are consuming this type of product

PRODUCT ENRICHED IN CALCIUM??

LEGAL IMPLEMENTATION1st Step: Indirect implantation in HK through

local distribution. Through exportation Relevant to gain expertize & knowledge of the

nutritional supplement market in HK The distributor is holding all financial risks in case of

failure

2nd Step: production in China Products designed for Chinese people Form a joint-venture with Chinese company Beneficial to learn about informal rules in China Share & creation of knowledge

INTELLECTUAL PROPERTY& Made In france

LABEL « Made in France »

To stamp a marking of origin

“Made in” , the firm has to follow the criteria fixed by the community customs code

The criterion of added value:

Components native of the considered country, represents at least 45 % of their price ex works.

The criterion of the specific opening:

All the components must be imported from France.

Hong Kong : Special status• Autonomous region of PRC• Own legislations• Very engaged in the

protection of Intellectual Property

Intellectual Property Department IPD

• Role of registration HK$1300 for trade Mark

HK$650 for news goods and services

• Role of Advisor Implementation of

new brands and patterns

IMPORTATION : REGULATIONS & TAXES

Hong Kong as Special Administrative Region has

specific importation rules: Free trade policy : no barriers on trade Common standards for international trade Not charge tariffs on importation of goods Import license kept to a minimum Legal documents for importation are mandatory Import declarations must be done within 14 days Products must fit public health, safety or internal security

needs.

DISTRIBUTION CHANNELSPharmacies e.g. Mannings & WatsonsPara – pharmaceutical networkSupermarkets with cosmetic department e.g. China

Resouces Vanguard Shop, City Super, Great, Jusco …

Pharmacies online : www.thepharmacyexpress.com ; www.4rx.com

Beauty and health care shops e.g. Sasa

STRATEGY & conclusion

Import all the products from France, (Including all the whitening products) in order to keep the « Made In France » mention > strong added value in Asia- provide all the compulsory documents (agreement with Maersk)

Distribution channel : - pharmacies & parapharmacies (Mannings,Watsons) supermarkets in cosmetics department (Vanguard)- online pharmacies (www.4rx.com)

Marketing strategy : adaptation to this particular markets, new brand embassadors, new visuals (ie.Yang Gong Ru)

Communication strategy: based on tests of hongkonguese panels in order to communicate on the efficiency of the whitening products

Pricing strategy: wealthy population, health oriented population = higher prices than in France