Kowloon Dairy’s Chocolate Butter Marketing Plan


Kowloon Dairy has provided excellent taste fresh milk products to Hong Kong families generations. The Kowloon Corporation is contemplating releasing a new product, chocolate butter, which will demand a comprehensive industry analysis and the firm’s capabilities and a long-term tactic to ensure profitability. This paper aims to determine the goals and marketing techniques that will facilitate the launching of the product. SWOT summary of situation analysis, objectives, Segmentation, Targeting, and Positioning (STP), campaign idea and tactics, and action plan are examined to produce an effective and innovative marketing plan for the new product. The company will meet its goal of selling 1000 pounds of chocolate butter by connecting more clients through promotions. Customer feedback, an emphasis on targeted sales, revenue growth, planning, and expenditures tracking will all be used to keep the approach under control. Amid severe competition from Hong Kong dairy farmers, Kowloon Creamery can protect itself from competitors because its product is unique.

SWOT Summary of Situation Analysis

The first element is its personnel, which provides significant value to the customer and therefore is not uncommon; it can be viewed as a competitive parity source and a difficulty. The company has long-term competitive advantage sources such as Hi-Calcium Slimilk, which is unique and valuable, non-replicable, and has a well-organized production process (Our story | Kowloon Dairy, 2022, para. 1). Because Kowloon Dairy is immensely popular in The Region and has been in operation for eight decades, its strong brand is a source of continuous competitive edge (Eigler and Azarpour, 2020, p. 270). Furthermore, the firm’s 40-truck courier service gives it an edge for the time being. If Kowloon Dairy chooses to copyright the chocolate butter formula, it will have a long-term competitive edge. Furthermore, comparable to Hi-Calcium Slimilk, the company lacks a distinctive brand for its chocolate butter, such as Choco Butter.

The first opportunity is political, and research shows that the Chinese government encourages dairy usage throughout the country, especially in Hong Kong, which benefits businesses like Kowloon Dairy. The second consideration is economics, and research, which indicates that dairy farmers benefit from the low taxes maintained by Hong Kong and China (Wei, Wang, and Wang, 2021, p. 170). In the context of a society, there is a possibility of difficulty with customers’ shifting preferences, who may discover the new item to be suitable for their meals. Environmentally, the operations have a possible problem: dairy farming contributes to harmful carbon emissions, perhaps costing the organization some customers (Silva and Brito, 2020, p. 5280). One major issue could be linked to the legalities of dairy products, such as government-imposed food safety requirements; clients may question the Kowloon Dairy’s goods quality. From a technological standpoint, the milk industry may view the introduction of new apparatus as an invention that will increase the efficiency of butter production.

Hong Kong’s dairy and egg sector are worth more and may expand in the forthcoming decades. According to studies, milk-based goods are in short supply in Hong Kong (Dairy Products & Eggs – Hong Kong | Statista Market Forecast, 2022, para. 1). Furthermore, statistics on butter sales show that Hong Kong buys more than $50 million value of foodstuff (Butter in Hong Kong | OEC, 2022, para. 1). As a result, butter is a standard pick among Citizens. Another intriguing fact is that the confectionery business is expected to grow by more than 6% between 2022 and 2027 (Confectionery – Hong Kong | Statista Market Forecast, 2022, para, 1). Chocolate butter combines dairy with candy, two of Hong Kong’s fastest-growing sectors. The new commodity’s target market would be middle-class consumers looking for a quick breakfast choice for their bread. By utilizing chocolate butter, people will enjoy their breakfast while still receiving the good elements included in all milk products.


As a result of the preceding facts, the collective goal for Kowloon Dairy’s product can be established. The SMART method entails setting specified, measurable, realistic, time-bound, and relevant goals (Kononova, Shpatakova, and Holovchenko, 2019, para. 1). The chocolate butter’s business goal will involve running a two-week promotion in Hong Kong retailers where customers will be urged to sample the item and evaluate it. The first sample of chocolate butter will be dispatched to sale points if the promotion’s results are good and the corporation sees an apparent demand for the product. The commercial goal entails selling the entire initial batch of 100 weekly units. The product’s sociological goal will be to transform the dietary patterns of a portion of Hong Kong’s inhabitants per year and get them to eat chocolate butter during breakfast. In 24 months, the corporation must achieve its goal of producing 1000 chocolate butter products every week.

Segmentation, Targeting, and Positioning Marketing Strategy


Market segmentation represents the division of markets into distinct subgroups depending on the nature of their clients. The basis of this technique is the market segmentation concept, which views markets as heterogeneous, and various consumer segments require different marketing tactics and requirements for a given product. Demographic segmentation emphasizes distinguishing consumer segments depending on age, income, gender, education, and more demographic data, which the organization will use (Gajanova, Nadanyiova, and Moravcikova, 2019, p. 70). Market segmentation can be carried out in various ways, each with its uses, strengths, and drawbacks.


The second phase of STP is targeting, which is used to establish a specific market group that the organization is prepared to serve. Targeting denotes a marketing approach that divides a massive market into distinct segments to focus on a particular audience segment. It develops a customer niche depending on their distinct features and caters primarily to them. Rather than approaching the whole market, a company employs the strategy to focus its efforts on a specific market segment. Targeting helps businesses select a market sector that appears to be the most potential in terms of sales while also ensuring that they do not target a segment that is too vast, demanding, or challenging to reach. Firms might focus on a single segment, a few segments, or the entire market based on these two characteristics. Before moving further, the organization will select to focus on a specific market segment. A company that influences its target customer segments can significantly reduce marketing disappointment. Women represent the most voracious chocolate consumers. They represent a different customer base; all enjoy chocolate, and the company will target individuals between 18 and 35.

Positioning Strategy

In branding, positioning describes a tactical procedure that includes building an individuality of a particular product in potential purchasers. The method identifies how a product differs from competitors and then selects the market niche for the targeted audience. An organization’s marketing plan is impacted by various factors such as shopper needs and purposes and competitive dynamics. The business will position itself as a speedy and high-quality Chocolate Butter source.

Campaign Idea

A marketing campaign is a brand’s promotional push or initiative, usually related to a larger commercial aim. It is a deliberate marketing campaign to promote a specific objective or goal on behalf of the firm, brand, or individual. A promotional campaign’s ultimate purpose is to raise an organization’s reputation and attract new clients (Khan et al., 2022, p. 10). Ads, videos, photographs, blog entries, and copywriting promote information and creatives throughout multiple marketing platforms such as email and social media. Boosting brand recognition, introducing new products or services, enhancing customer satisfaction and engagement, and generating sales revenue are the specific aims that lead firms to create campaigns. The critical marketing campaign kinds are conventional media campaigns, seasonality push campaigns, commodity launch campaigns, brand recognition campaigns, repositioning campaigns, brand relaunch campaigns, and contest and email advertising (Santiago and Castelo, 2020, p. 34). The product release campaign will be crucial because the company is launching a new product. When new products are released, marketing activities are typically utilized to increase their awareness and explain why customers need them. In partnership with any distributors, the manufacturer conducts an extensive launch campaign.

Campaign Tactics

Organizing pre-launch freebies, generating awareness, preparing FAQs before introducing the product, taking care of customer service, and establishing connections with people are essential techniques the company will use during launch campaigns. Other tactics include website speed optimization, referral programs, retargeting, shareable content creation, and marketing automation. If an item is to be established quickly, the corporation must develop a feeling of hype and excitement about its coming in advance. One of the most common methods to do this is through pre-launch gifts and contests. The business will distribute its goods to a chosen group of people in return for their help getting the message (Santiago and Castelo, 2020, p. 34). Instagram competitions, social media tag contests, freebies, and other options are all accessible. Whatever path the business takes, it will establish materials or concepts that can assist its product in becoming global. The company will promote user engagement on social networks, or the firm should create a fun TikTok challenge. A search-engine-optimized website will generate steady traffic the firm may promote the new product.

The company will provide users with helpful information for the search engine optimization plan to work. It will consider how a new user would search for a product. Meta descriptions shall be succinct and enticing because they will describe the company website’s visibility. The aim is for the user to follow and grasp the item in the shortest amount of time feasible. Consistent content creation is among the most trustworthy digital marketing tactics, particularly in the medium and long term. The company will devote resources to producing a solid site that addresses the company or relevant issues that clients will expect to engage. The goal is to get customers to spread the information on their own, leading to constant website visits. Buyers are at different phases of the purchase decision and may not agree on purchasing from the company when they hear about the Chocolate Butter products. However, as the company will utilize various remarketing strategies to nourish them over the period, this does not eliminate the prospect of purchase.

The company will Keep in touch with its most loyal clients. Word of mouth remains a highly effective method of disseminating knowledge about new offerings. Users typically talk about the products they utilize and recommend to their friends. The firm will give clients a slight poke by creating a referral incentive program to get traffic rolling. Everyone appreciates freebies; the business will offer them discount vouchers or free deliveries in return for telling their friends about the business. Uber and Airbnb are two firms that have implemented this method. The business will check to see if the website is loading quickly. It is an approach that is as simple as it is effective. A fast and fluid site enhances the customer experience and corporate reputation. The company will conduct numerous activities to speed the website’s running, but several involve coding knowledge, but the business will consider consulting a professional.

The corporation will ensure its pictures are high-quality and not too large to prevent its website from displaying slower if the file size is large. Influencers are experts in specific subjects or industries; they seem to have devoted audiences that follow their advice. Influencer marketing can be thought of as the digital counterpart of word-of-mouth marketing. Accommodating events and distributing free samples are the famous methods the firm will use n attract bloggers and celebrities to the new product. The firm cannot purchase their opinion or advice, hence will spend time determining which influencers are most probably interested in the products. Customers want businesses to respond on time; the company will ensure it has a reliable mechanism in place for clients to contact the business.

It is natural for users to have several questions about how a new product or service works and what they can do with it when it is first released. The firm will have to explain it more the more innovative it is. Our advice is to get as much done and prepared on time by building a comprehensive and readily available “Frequently Asked Questions” section. The corporation will encourage users to go there first before contacting. The company may incorporate FAQs into its social media material to anticipate new customer queries and demonstrate how the product operates. The first stage in implementing an effective email marketing campaign is to create a customer database, which is preferable if a business knows everything about the marketing campaigns. The business will consider the client’s age, where they live if they have dependents, and any past purchases of a similar commodity. Using this information, the firm will create a highly personalized messaging strategy and ensure the receiver feels the emails were written primarily for them by the company. Email marketing will assist the business in better managing client data and interests.

Action Plan

An action plan refers to a detailed plan that outlines the steps necessary to achieve particular objectives. A “series of actions that businesses must perform or take effect for a plan to work” can also be described as the phases that firms must take or actions they may perform effectively. The Kowloon Corporation dealing with dairy, one of Hong Kong’s biggest milk manufacturers, is considering launching a new item, chocolate butter, which necessitates a thorough examination of the industry and the company’s abilities and a long-term strategy to ensure success.


Activity Timeline
Segmentation, Targeting, and Positioning. Three weeks
Product marketing Two weeks
Controlling and monitoring One Week

The company will budget $20000 to attain the objectives and conduct a two-week campaign to promote the new commodity and motivate people to taste the product sample and review it. The campaign will help the company vend the whole first batch, containing 100 items, within a week. The customer reviews will help the company change the dietary habits of a share of the Hong Kong population and consume chocolate butter for breakfast. By reaching more customers through promotions, the firm will attain its objective of retailing 1000 chocolate butter in a week.


To keep the strategy under control, client input, a focus on targeting sales, sales growth milestones, planning, and spending tracking will be used. Marketing is encouraging people to buy something or start a business. Customer feedback is tracked through forums and questionnaires, which are among the factors incorporated in any marketing strategy. The firm can indirectly involve clients by running polls that answer particular questions about the most recent marketing strategy. Individual phone or in-person discussions can be conducted as part of a marketing campaign or a single survey. The business will make changes to its marketing strategy based on its research findings. If a current company mascot is used in a marketing campaign and user feedback reveals that the mascot is hated, the character should be removed from the plan. Sales can be measured in unit sales, revenue generated, and profit.

Every marketing strategy tries to determine how the plan will affect the target market, which is accomplished through market research or with the help of retail partners at the store level. Actual revenue from the client base is compared to the advertising plan’s forecasts to see whether any adjustments are required. For example, if the target audience for a marketing campaign is guys aged 15 to 21, the company will compile sales data for that demographic. If sales are not up, more study is needed to determine why the target population is not responding to the ads. Analyzing the demographic mix of sales numbers may reveal that the initial target audience was incorrect in some circumstances. A new target audience may develop as a result of the data. To save costs and increase profits, the company will keep a close eye on these expenses.

Examining expenses aids the organization in adhering to the budget and identifying areas where spending is increasing. A product’s market share is the percentage of sales volume that it controls. For example, the company might have a product that indicates higher market sales. A marketing plan depicts the product’s market share before implementation and forecasts how the marketplace will change if the strategy is adopted. Various metrics will help the business measure its progress towards attaining its goals; productivity, return on investment (ROI), cost performance, gross profit, and employee and customer satisfaction. These metrics are an efficient approach to assessing a project’s performance. Assessing the project progress with particular criteria aids in the strategic plan.


Among the largest dairy producers in Hong Kong, Kowloon Dairy can achieve a competitive edge by launching a new product, chocolate butter. According to the findings, the market has a favorable external environment, defined by low taxation and government assistance for dairy farming. Despite fierce rivalry among Hong Kong milk producers, the product is distinctive that Kowloon Creamery can safeguard itself from rivals. Kowloon Dairy might launch a sample sampling promotion in Hong Kong outlets to gauge consumer reactions to the product.

Reference List

Brito, A.F. and Silva, L.H.P. (2020) Symposium review: Comparisons of feed and milk nitrogen efficiency and carbon emissions in organic versus conventional dairy production systems. Journal of Dairy Science, 103(6), pp.5726-5739. Web.

Eigler, J. and Azarpour, S. (2020) Reputation management for creative workers in the media industry. Journal of Media Business Studies, 17(3-4), pp.261-275. Web.

Gajanova, L., Nadanyiova, M. and Moravcikova, D. (2019) The use of demographic and psychographic segmentation to creating marketing strategy of brand loyalty. Scientific Annals of Economics and Business, 66(1), pp.65-84. Web.

Khan, R.U., Salamzadeh, Y., Iqbal, Q. and Yang, S. (2022) The impact of customer relationship management and company reputation on customer loyalty: The mediating role of customer satisfaction. Journal of Relationship Marketing, 21(1), pp.1-26. Web.

Kononova, O., Shpatakova, O. and Holovchenko, Y. (2019) Use of the smart goals as one of effective approach for the corporate strategic planning. In Colloquium-journal (No. 2-5, pp. 67-68). Web.

Kowloon Dairy. (n.d.) Our story | Kowloon Dairy. Web.

OEC – The Observatory of Economic Complexity. (2022) Butter in Hong Kong | OEC. Web.

Santiago, J.K. and Castelo, I.M. (2020) Digital influencers: An exploratory study of influencer marketing campaign process on instagram. Online Journal of Applied Knowledge Management (OJAKM), 8(2), pp.31-52.

Statista. (2022) Confectionery – Hong Kong | Statista Market Forecast.

Statista. (2022) Dairy Products & Eggs – Hong Kong | Statista Market Forecast.

Wang, Q., Wei, L., and Wang, W. (2021) Challenges and prospects for milk production in China after the 2008 milk scandal, Applied Animal Science, 37(2), pp. 166–175. Web.

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