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Mahalo Hawaii Deep-Sea Marketing Case Study

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De La Salle University

Ramon V. del Rosario College of Business

In partial fulfillment of requirements in

MKT535M

Marketing Management

Midterm Exam – Case Study Analysis

Mahalo Hawaii Deep-Sea desalinated drinking water

Submitted by:

Jill Noreen R. Legaspi

ID# 11498536

February 23, 2017

Submitted to:

Regina C. Dy, PhD.

Statement of the Problem

  • What marketing strategy should Ocean-Blue adopt to penetrate the Philippine market?

Objectives

  • To assess and maximize growth potential of the identified market to penetrate
  • To develop and propose a marketing plan suitable for the Philippine market
  • To recommend action items in the field of 1) product, 2) place, 3) pricing and 4) promotional strategies for MaHaLo Deep-Sea desalinated drinking water.


Areas of Consideration/Major Assumptions

Background

MaHaLo Hawaii Deep-Sea desalinated drinking water is a product of imported and distributed by Ocean-Blue Element International Trading. The company is a subsidiary of Koyo USA Corp of Kona, Hawaii. Parent firm, Koyo-Sha Corp. of Japan teamed up with the NELHA (Natural Energy Laboratory of Hawaii Authority) to develop the technology for harvesting and processing deep-sea water.

MaHaLo positions itself as a health product, targeting mainly the health-conscious market. In Japan, the product is marketed as a dietary supplement that improves weight, stress levels, skin tone and digestion. The Philippines is the third market Ocean-Blue intends to penetrate. Ocean-Blue president, Mitsunobu Iwai plans to distribute the product in hotels, big supermarkets and department stores. Ocean-Blue is aims to distribute globally after the Philippines as part of their expansion plans.

Other Case Facts:

  • Desalinated deep-sea water had been in the market for many years now
  • In the US, consumers pay $2.00 for .5 liter and $4.50 for 1.5 liters
  • Desalinated deep-sea water was commercially available late 2005
  • Company is looking into expanding to China, Thailand and other markets in the region
  • Considering smaller bottles for wider market reach

Major Assumption

For this case, this year’s current Philippine market will be assumed.

Point of View

The point-of-view of Ocean-Blue’s president, Mitsunobu  Iwai will be considered for this case.

SWOT Analysis

Value Chain Component

Strengths

Weaknesses

Outbound Logistics

  • The product can be made available in supermarkets and department stores

Marketing and Sales

  • The product has proven itself to be healthy for the body
  • Technology used for processing water is unique
  • The product positions itself as high quality

  • The price of the product is expensive

Service

  • Because the product is imported, customer feedback or after sales may be slow

Procurement

  • The product is imported/sourced from abroad
  • Raw material of the product can only be sourced from Hawaii (Kona waters)

Technology Department

  • Technology used for processing water is unique
  • Technology is supported by a state agency (NELHA)
  • Technology is only available abroad

Firm Infrastructure

  • President of the firm is Japanese and may not know much about the culture of the country

Segmentation, Targeting, Positioning (STP)

Segmentation

MaHaLo is a product that can serve different segments. It can serve both consumer and businesses – supermarkets, hotels, hospitals, department stores, fitness centers

Geographic

Domestic and International

Demographic

Income level: middle class to upper class

Behavioral

Benefit sought: health benefits

Psychographic

Purpose of buying the product: health reasons

Targeting

MaHaLo Hawaii Deep-sea desalinated drinking water’s main consumers are the health buffs or health conscious people. The product can also be targeted to those with medical condition that requires a specialized kind of water.

Positioning

        MaHaLo Hawaii Deep-sea desalinated drinking water positions itself as a healthy drink and can be a dietary supplement to keep you healthy.

Theoretical Framework

Grand Strategy Matrix

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The Grand Strategy Matrix is a powerful tool in devising alternative strategies. This matrix is basically based on four important elements namely, Rapid Market Growth, Slow Market Growth, Strong Competitive Position and Weak Competitive Position. This matrix helps in adopting the best strategy based on the current growth and competitive state of the organization. A large scale firm segregated into many divisions can also plot its divisions in this four quadrant Grand Strategy Matrix for formulating the best strategy for each division.

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