Introduction
The roots of western herbal medicine are ancient, yet at the start of the twenty-first century the modality finds itself vying for a place in mainstream healthcare in industrialized countries. At the same time, herbal medicine is becoming increasingly science based and as a result the theoretical foundations of the discipline are to some extent in a state o flux. Today’s practitioners of western herbal medicine occupy a broad spectrum as far as theoretical foundations are concerned. In this context it may be worth pointing out that it is entirely possible to use herbal medicines in a non-holistic, reductionist manner ( 2003).Doing so, herbal practitioners would argue, does not amount to true herbal medicine but rather to allopathic medicine practiced with plant-based medicines. In a holistic framework, the emphasis is on treating the patient rather than their disease. The patient is viewed as comprising a physical body, with mental, emotional and spiritual aspects, all of which potentially influence the individual’s state of health ( 2003).
In addition, the patient is viewed in the wider context of personal relationships, community and environment, and it is recognized that each of these could play a role in the person’s health. During the latter part of the twentieth century science played an increasing role in the development of the major herbal traditions, including western herbal medicine. Although this has led to concerns about the future of herbal medicine in some sections of the herbal profession, it also promises to make the practice of herbal medicine increasingly evidence-based in terms of both safety and efficacy. This, combined with the persistent demand for a range of natural healthcare options by a large section of the community, has seen herbal medicine move towards becoming an accepted part of mainstream healthcare in many western countries in recent years ( 2003).
This move towards the mainstream brings with it new challenges. Preserving a holistic approach to health and disease is paramount if herbal medicine is to survive as a distinct medical system. The increasingly scientific approach must be employed in a way that prevents the herbal medicine of the future from becoming conventional medicine practiced with plant-based pharmaceuticals. Science has immense potential to further the use and acceptance of herbal medicine, but it must be applied in a manner that respects the holistic philosophy so crucial to the successful practice of herbal medicine. Quality control is an area that presents itself as a challenge for the future. Complex natural products such as herbal medicines pose inherent problems in terms of quality and safety, and the herbal medicine industry must successfully address these problems if herbal medicine is to become a viable part of mainstream healthcare in the future ( 2003). The herbal medicine industry is becoming a newer trend that people want to invest it. It provides alternative healthcare service to different people. The paper will discuss about the company Long Far Pharmaceutical holdings Ltd. The paper will also discuss about the marketing mix and why does it matter to the company.
The HK business industry and the company
When attempting to analyze the present situation and predict the future of the business environment in Hong Kong, it must be remembered that they are still broadly in the post-handover transition period. What is certain from the outset is that it would be both wrong and irresponsible to lay the blame for the hostile challenges facing the Hong Kong business environment solely at the feet of the new SAR government. Indeed, many of the problems emerging are the function of a historical legacy handed down from the colonial period or are the consequence of external forces over which Hong Kong has little, if any, control (. 2000).A sober assessment of the Hong Kong business environment seems to point towards difficult times ahead. Internally, there are many structural economic problems to be addressed, in such areas as the over reliance of re-exports, the cataclysmic decline in manufacturing, the growing unemployment problem and the falling property market. Add to that the decline in tourism, retail sales and the stock market; factor in increased bankruptcies, high interest rates, and an overvalued dollar, and it is clear that business confidence cannot be high (. 2000).
The majority of the business conglomerates in Hong Kong have established joint ventures with various levels of government, party, or even military authorities and enterprises in the mainland. Many mainland enterprises, including direct subsidiary companies of central and provincial governments, are also operating and co-operating with local businesses in Hong Kong. There have been discussions about the problem of corruption with these ventures. The question, however, hinges not only on whether the HKSAR government is able to combat unlawful corruption, but also whether it can prevent rent seeking of the powerful who want preferential treatment in exchange for political support (. 2000). The Hong Kong business environment is doing well because of the different changes they have implemented. One company that is doing well is Long Far Pharmaceutical holdings Ltd. The company was founded in 1998. It brought about the trend of health by detoxification by launching beauty and healthy in the market. Through the breakthrough of combining traditional health care practices added with newer techniques in giving health service the company was able to provide a better consciousness for health by families and individuals.
The company’s presence was lifted by the hot sales of Long Far products. After a few years after its inception the company transformed into a brightening star in the health supplement industry. The success of the company can be attributed to the well researched and tested products and the ability of the employees to relate to clients needs. The company is still continuously introducing and applying modernized research and development and manufacturing technologies. This will ensure that their products will be the best one in the market. It also ensures that the products will greatly satisfy customer needs. The effort and tenacity of the company created a reason for it to have an well established brand name in Hong Kong. The company can double this feat through its other markets in Asia, Europe, North America and the Caribbean.
The marketing mix
Success in the market place depends not only on an ability to identify customer wants and needs but also upon an ability to be able to satisfy those wants and needs better than competitors are able to do. This implies that organizations need to look for ways of achieving a differential advantage in the eyes of the customer. The differential advantage is often achieved through the product or service itself but sometimes it may be achieved through other elements of the marketing mix. Marketers have to understand cultural values in all aspects of implementing the marketing concept and managing the marketing mix ( 2000). The whole of the marketing mix is important in developing effective positioning, as attributes of the offering must be closely in line with the targeted customers’ expectations and needs, as must the associated price points and channels of distribution. However, promotional activity is one of the fundamental elements of creating an effective positioning, as it is through promotion that the positioning is communicated to the target audience ( 2000).
The organization has to communicate with the customer through the strategic window. This can be achieved in a variety of ways ranging from spoken and written communications to more symbolic forms of communication. This is the function of the marketing mix. The point is that the elements of the marketing mix should not be seen as individual entities, but as a set of interrelated entities which have to be set in conjunction with one another and in the context of the strategic window presented ( 2000). Positioning products in people’s minds and making them attractive to market segments requires careful formulation of the marketing mix. Getting the right blend of the product, promotion price and distribution is essential to put the carefully carried out analysis into operation. The aim is to portray an image for the product or service that will match with how one wants the product to be visualized in people’s minds. Image is not only reflected in the promotional messages which are directed towards the market target but also in the pricing strategy, the mode of distribution and in the appearance of the product or service itself ( 2000).
The marketing mix uses the 4P’s to describe the marketing position of a product in a certain marketplace. Marketing mix should be used well by a management team. With the proper use and strategization of the marketing mix it produces positive results for the organization and creates marketing effectiveness. Large and small changes can be made to the marketing mix. When large change is made then it is considered to be strategic change. When small change is made then it is considered to be a tactical kind of change. Marketing mix helps the Long Far Pharmaceutical holdings Ltd to analyze itself and determine how to market its product to the clients at a limited time and limited cost. The marketing mix categorizes different aspects of the company and how the company can provide satisfaction of the needs of the customers. Through the marketing mix each aspect of the company can be checked and given consideration with regards to its ability to attract clients.
Product
Product ranges offered by businesses have to be managed within the context of an ever-changing business environment. Consumers’ product preferences change according to their life-stage, lifestyle and personal wealth. One business’s product offer is subject to scrutiny by consumers alongside those offered by many other companies, which also are likely to change over time; therefore product management is part of an on-going strategic management process which ultimately bears on the ability of a business to meet its long term objectives. Product management is a strategic process, supported, in the case of a large retailer, by a complex array of operational practices and organizational structures ( & 2001). Strategic product management shapes the direction of growth taken by a business in response to changing consumer requirements. Its strategic contribution is augmented by the role that product management takes in keeping operational costs as low as possible whilst generating sales volumes to maximize profitability ( & 2001).
Introducing new products is a very good way of achieving differentiation and enhancing a retail identity in an over-subscribed retail market, but without corporate support new products may fail or go unnoticed. Although most of the buying decisions are centered on the ability of a product to satisfy a customer need at a price the customer is willing to pay, a business has to ensure that it meets its legal obligations with regard to the products it sells. It also has to consider its long term image in the eyes of the public. It is therefore necessary to ensure that a product conforms to legal standards and provides value for money ( & 2001). Selecting the right product requires an understanding of the complexity of the modern shopper and an ability to blend product detail in a way that satisfies both the physical and the psychological needs of that shopper .Product innovation is becoming increasingly necessary for businesses to keep customers interested in their product range. In a market that is saturated and competitive it is especially important to provide customers with the interest and excitement that newness engenders. It is therefore important for businesses to be able to use product development and innovation to their best ability ( & 2001).
The influences on the life-cycle of a product category are many and varied. If buyers are to use the life-cycle as a predictive tool, they must appreciate the underlying consumer trends that affect the rate of growth of the associated product market. Consumer trends include demographic trends, consumer economic trends, technological trends and societal trends, including lifestyle and fashion ( & 2001). The product of the company is various supplemental health care products such as detoxification products, slimming products, products for men, products for women, body protection products and tea products. These products are one of the main reasons for the company’s success and it is the company’s main source of profit. Without these products the company might not survive until this day. The different product the company has makes it unique when compared to other companies.
Price
The market pricing approach is used when the environmental improvement under consideration causes an increase or decrease in real outputs and/or inputs. Examples may include a decrease in timber harvest and/or extraction of minerals from a legislative enactment that effectively expands the acreage set aside as a wilderness area; the expected increase in fish harvest due to the implementation of a new water pollution control technology; or an increase in crop yield arising from a legislative mandate of a higher air quality standard. In the above examples, benefits from environmental improvement are identified in terms of changes in outputs or inputs; more specifically, timber, minerals, fish and crops ( 2000). These outputs or inputs are expected to have market prices that accurately reflect their scarcity values or, where this is not the case, shadow prices can be easily imputed. Thus, where environmental improvement is directly associated with changes in the quantity or price of marketed outputs or inputs, the benefit directly attributable to the environmental improvement in question can be measured by changes in the consumers’ and producers’ surpluses ( 2000).
A variety of motivations explain the adoption of a new customer approach by global companies. A major reason is the cost of conducting personal visits or customer sales call continues to increase. Firms cannot afford to allow their sales force to make unproductive sales calls. Firms have come to believe that a more efficient method of marketing is to establish and maintain long-term relationships with their customers. When a long-term relationship is established and nurtured, it is less necessary to spend significant amounts of money advertising to make customers aware of the product offering and then employing a sales force to stimulate demand for unwanted products/services to potential customers ( & 2003).Global customers expect low manufacturing costs, excellent design, and having their needs met. The firm wants to form a relationship with its best customers because this orientation appears to generate lower-cost customers. The firm expects the sales force to work the marketplace to reach new customers or to find outlets for products that have been overproduced or under-engineered. While a firm’s orientation may change slightly, depending upon the market situation, the firm normally adheres to a single orientation more than the rest ( & 2003).
For the established clients, the pricing approach for them should concentrate on providing them the best product for the equivalent amount of price they pay. The company should maintain well made products for appropriate prices. The prices for established clients should not be too high nor too low. Rather it should be priced according to the quality of product made for them. For customers the price of the product should be lower since the company is trying to convince the client that it has the best product. The products of Long Far Pharmaceutical holdings Ltd have a price range of HK to HK8. Various products of the company are priced in accordance with its benefit and the materials used to create the product.
Place
The factors which determine choice of a channel, or channels, of distribution are both external and internal to the organization. These factors show how the options open to organizations are restricted. For example, small companies may not have the resource or expertise to become involved in foreign direct investment; markets with low break-even sales volumes favor
low-cost channels such as licensing or exporting. If a new market is found to have a high sensitivity to price, e.g. by removal of inhibiting regulations or tariffs, volumes may increase spectacularly, making a chosen channel, which was appropriate at an early stage in the development of the market, unsuitable at a later stage. This underscores the need for accurate information to identify an appropriate channel from the outset. Traditional decision-making techniques can be applied to such decisions. Market size is a primary consideration, together with trends in the market like segmentation and the estimated share of the market that can be achieved in view of the competition ( & 2000).
The existing distribution methods will determine whether single or multiple channels are developed. Host country policies are important since any special standards, import quotas or duties will increase the cost to the consumer and disadvantage foreign suppliers in relation to domestic ones. If a company wants to hold on to its technology, there is little point in trying to enter a market by means of a foreign direct investment (FDI) where there is insistence on its transfer. Market structure is important in that the number of competing intermediaries may contain organizations with affiliations to competitors either locally or from outside the market. The economic infrastructure becomes critical when specialized expertise is required or the services are needed for the competent financing, manufacture and distribution of a company’s output. Production costs are critical where these constitute a high proportion of the total costs of a product ( & 2000) Place elements of the marketing mix have been changing rapidly over recent decades, and these changes impact in many ways on the marketing operations of the Business ( & 2002).
To attain sales, profitability, and customer-satisfaction goals, the products must be available for customers to purchase. The portion of a firm’s marketing strategy that assures customers have access to the firm’s products is known as distribution strategy, and the institutions that take part in product distribution comprise the marketing or distribution channels for those products. Traditional channels may not always work ( 1997). There are different places of selling for the product. Long Far Pharmaceutical holdings Ltd has different branches that can be found in Hong Kong and in places like in Asia, Europe, North America and the Caribbean. The company’s website has an online transaction function wherein transactions can be made without the buyer being physically present in the company’s store. The different branches help in making sure that the company is able to sell to various clients in different places. The different channels of distribution help in strengthening the relationship of the company with the clients.
Promotion
Effective marketing communications with the customers are essential for business success. Advertising forms the central plan of most communications programs. The information conveyed in advertisements may be in the form of words or symbols. It can work to educate, persuade or simply to inform. An image can be supported or created, enquiries can be elicited and the functions of a product can be demonstrated. Advertising is far more likely to reinforce rather than create a good image ( 1999). A strong image is a function of the positive experiences which people have with a product or company. Attempts to create a positive image, while providing poor products or services, are likely to make customers cynical. A common mistake made in advertising is the tendency to over promise. While a creative advertisement may make a consumer buy a product once to try it, it cannot force them to repurchase. Thus, if a product does not deliver on the promise made in the advertisement this too will create resentment and negative feelings ( 1999).
Long Far Pharmaceutical holdings Ltd promote their products through various means. One is through the internet wherein the website helps in promoting the products; another is through TV commercials wherein the product is given a visual presentation for clients to see its benefits; other promotion techniques used by the company includes print advertisements. The different promotional techniques used by the company helps in increasing the number of clients of the company.
Criticisms of the marketing mix
There are some people that believe that the marketing mix does not necessarily leads into making profitable decisions. Some people believe that the marketing mix is not grounded on certain financial objectives thus it does not lead into profitable decisions. They believe that the marketing mix’s goal to generate solutions to clients for lower cost will not generate enough income. When it comes to the four P’s some people believe that the 4P are strongly oriented on the customer markets and this causes no appropriate models for industrial product marketing. There are still some who believes that the 4P’s have a tendency to have too strong product marketing perspective which makes it applicable more to products than services. The criticism on the marketing mix proves that the marketing mix creates a huge impact not only on the business but with the society. The problem in marketing does not happen to some companies thus it cannot be entirely said that the marketing mix should not be used by companies.
Conclusion
The herbal medicine industry is becoming a newer trend that people want to invest it. It provides alternative healthcare service to different people. Marketing mix helps the Long Far Pharmaceutical holdings Ltd to analyze itself and determine how to market its product to the clients at a limited time and limited cost. The marketing mix categorizes different aspects of the company and how the company can provide satisfaction of the needs of the customers.
References
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