Marketing Strategy Hwa Tai

Topics: Cookie, Chocolate chip cookie, Marketing Pages: 3 (645 words) Published: March 30, 2011
Marketing strategy

The level of Hwa Tai industry sophistication varies from production of unbranded local-style biscuits targeted at the low end market to export quality branded products. The majority of businesses are mainly involved in the production of plain unbranded biscuits with much localized distribution. Only a few companies like Hwa Tai are involved in the branded high end market. Hwa Tai biscuits produced include plain cream crackers, sugar cracker, wheat meal cracker, cheese crackers, oatmeal biscuits, digestive, egg rolls, wafers, chocolate chip cookies, chocolate coated biscuits, cream sandwich biscuits, assorted biscuits, butter cookies, Danish cookies, American cookies, sesame cookies, coconut cookies, peanut cookies, almond butter cookies, cashew nut butter cookies, pineapple jam cookies, pandan flavored butter cookies and alike. Hwa Tai registered its highest revenue for FY07 in the fourth quarter (4Q). Its revenue increased by 21.2% from RM28.7mil in 3Q to RM34.9mil in 4Q. Meanwhile, its profit margin decreased significantly due to higher operation costs, heavy advertising and promotions (A&P) expenditure and increased finance costs. The higher operation costs were due to the increase in the cost of raw materials while the heavy A&P expenditure was due to re-branding exercise.


Hwa Tai industries had advertised its main products through press ads. The communication spoke about the basic benefits of energy and nutrition. The next level of communication associated the brand with the positive value of life such as honesty, sharing and caring. Hwa Tai products established the quality benchmark which resulted in the wholesale upgrading of the image and quality of Malaysian biscuits. All major biscuit manufacturers have upgraded their product image in the local market. The "Hwa Tai" products of smaller businesses have become quite prominent over the past 10 years. For many years, Hwa Tai used sales promotion and holds day fairs...
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