Tiger Balm: Internalization and Product Extension

TIGER BALM: INTERNALIZATION AND PRODUCT EXTENSION

CASE TEST

PROBLEM STATEMENT

Satiation of the Tiger Balm brands with hefty resources and exceptional profitability in the Asian and Middle Eastern markets has compelled Han Ah Kuan, Executive Director of Haw Par Corporation to consider a new strategy of either altering the attributes of the Tiger Balm products in the existing markets or considering internalization of the Tiger Balm brands in Australian market for company’s impending advancement.

SITUATION ANALYSIS

Through the process of situation analysis, the Haw Par Corporation will develop a clear understanding of the market situation and evaluate its significance for the company and for other markets (Australia) in which the business could operate.

Internal Factors

Haw Par Corporation concentrated its interest in healthcare sector and efficiently managed the portfolios of investments in properties and securities for considerable returns. Boon Haw’s steady commitment to take the business on a par, yield fruits for him and made him the richest Chinese man in Rangoon. His aggressive diversification ideas and sales tactics helped him shape his business into foreign markets.

After the year 1992; the downfall phase, the traditional tiger brand had lost its reputation in the market and was recognized as a grandfather’s product. Haw Par Corporation started preparing for the long-term goals. New strategies were built from scratch, be it advertising campaigns, distribution strategies, or new joint venture agreements. Haw Par Corporation reworked its strategies and concentrated on innovations, research, and developments of the products in order to meet the consumer demands.

New product range offered a whole set of different features targeting a diverse population. The basic use of balm was to soothe aches and pains, whereas the new products offered to ease joint-aches, headaches, to decongest stuffy nose, reduce nausea and so on. Further, the firm launched Tiger Balm neck and shoulder rub with the concern to address the office workers who spend considerable amount of their time in front of computers. Therefore, Haw Par Corporation was successful to emotionally connect with the consumers and launched a variety of new products to suffice their needs.

Tiger Balm brand was readily available at giant retail stores and pharmacies across 70 countries and had completely served the Asian and Middle Eastern markets. United States followed by Hong Kong and Europe accounted to be the biggest market of the brand in the year 2008. Haw Par Corporation thus displayed an excellent record of profitability with access to substantial resources.

External Factors

Haw Par Corporation timely confronted with global players in the disintegrated pain relief industry. Thus, this international competitive landscape made it immensely challenging for Haw Par Corporation to establish a steady competitive advantage in the industry and maintain it, subjected to the local and global competition.