Table of Contents Contents

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1 Table of Contents Contents Executive Summary... 2 Introduction... 2 Current Business Situation... 3 Financial Analysis... 4 Strategic Analysis... 7 Summary Strategic Plan Implementation Plan (New product strategies) Financial Forecasts Review of Corporate Governance Practices References Appendices Samlple Questionnaire Summary of questionnaire

2 Executive Summary Having been awarded the Hong Kong Top Ten Brand Name Awards in 1999, Hoe Hin Pak Fah Yeow Manufactory Limited is recognized as a reputable and traditional pharmaceutical manufacturing company originated in Hong Kong. In this report, we investigate and analyze the performance of the company in the past three years and its current situation. For the financial analysis, the ratios reveals that the company performed the worst performance in 2011 compared with 2010 and 2012 because of the sharp increase in operation expense. It alerts the need for the company to enhance the efficiency of its sale and profitability. We analyze its internal and external factors that affect the company by using SWOT analysis. Furthermore, we have conducted the questionnaire to investigate the market position of the company and the consumers view on the company. It shows that some of the Hoe Hin s products are lack of awareness. Suggested strategic and implementation plans with financial forecasts are provided in the last section. It is recommended to improve its sustainability and profitability by using 4Ps marketing strategy including introduction of new product and new promotion strategy. We are confident that these recommendations are helpful in achieving the company s goals. Introduction Established with a history of more than 85 years, Pak Fah Yeow International Limited was a company based in Hong Kong producing and marketing over the counter traditional analgesic medicine. Hoe Hin incorporates a list of different products; White Flower Embrocation, in particular, is the principal multi-purpose household product of Hoe Hin marked with great success throughout the years. The quality of Hoe Hin Brand products was proved through various health and medicine councils as well as the award received. Facing the dynamic change of the environment, the company is continuing to expand into new international market in order to enhance its competitiveness. 2

3 Current Business Situation In order to analysis the customers' impression towards Pak Fah Yeow Limited, we have designed a questionnaire and collected 89 out of 100 questionnaires from participant in different generation. According to the statistics, Pak Fah Yeow has largest market shares. It has loyal customers. They would not shift even more competitors join the market. Many participants confident to it mainly as it is the oldest brand and the certificates issued by professional institution or government such as Q mark and certificate of manufacturing facilities issued by TGA. From our observation, the most market consumptions are contributed from the generation of Baby Boomer. The market size is relatively lower than the Zihua Embrocation. Also, only Pak Fah Yeow was well known by respondents, only 19% of respondents know the product item of Hoe Hin Strain Relief. Even the company has the largest market shares, recently, part of its market shares may have flown to other brands especially for Zhihua Embrocation, which is a newly established brand promoting a refreshing image. Only maintaining the loyal customer is not enough to keep the position in the industry. Expand the market is the only way out to resurgence the business. 3

4 Financial Analysis Profitability Ratio Formula Gross margin Profit margin Return on total assets Return on equity Gross Pro it Sales Net Pro it Sales Net income Average Total Assets Net Income Average Shareholders Equity 57.02% 45.08% 56.24% 50.99% 39.88% 50.06% 11.29% 8.91% 9.90% 15.30% 11.92% 13.48% According to the ratio analysis, Pak Fah Yeow International Limited had poor performance in Gross margin and profit margin in 2011 are obviously worse than 2010 and It shows that the operating expense especially the raw material and consumables increased sharply by $9.294M. Also, the dividend income was lower and did not have any gain on disposal of financial assets in that year. Therefore, there is sharp decline in profitability. The efficiency of using assets and equity in generating revenue of the company is fair. In 2011, it had lower percentages of return on fixed assets and equity because of high operating expense which lower the net income. Nevertheless, the percentages raised and were similar to 2010 in Although the ratios decreased in 2011, there was an outstanding improvement and caused 39.19% profit growth in the next year ie Obviously, the company changes the strategy and pulls the profitability back in a stable level. 4

5 Liquidity Ratio Formula Current ratio Quick ratio Current assets Current liabilities Current assets inventory Current liability Based on the ratio analysis, it provides us information that Pak Fah Yeow International Limited is facing the short-term obligations problem. The healthy sign of current ratio and quick ratio is generally 1.5 and 1 respectively. The company s current ratio was below 1 and its quick ratio was drop below standard in But now, the company starts improving their strategy in managing funds and their short-term financial strength. It still needs to put a lot of afford to manage its capital in a more flexible way. Activity Ratio Formula Inventory turnover Sales Inventory Inventory turnover measure of the number of times inventory is sold or used. Pak Fah Yeow International Limited had a significant decrease in inventory turnover in 2011 and It suggests that there may be a problem in the marketing plan. If the company does not turn its inventory over rapidly, there will be too much money is being tied up in un-saleable inventory. It is necessary for the company to improve its marketing plan in order to increase its efficiency of sale. 5

6 Solvency Ratio Formula Debit ratio Long-term debt to equity Interest coverage ratio Total liabilities Total assets Long term debt Total assets Pro it before interest Annual interest expense The company had stable and low debit ratio and long-term debt to equity. Also, the company has high interest coverage ratio which shows its ability to honor its debt payments. These indicate that the company has high borrowing capacity which higher its financial flexibility. The company has the ability to borrow for the new development. Market Value Ratio Formula Earnings per share Price earnings ratio Net income Number of shares Market price per share Earning per share Price earnings ratio indicates the value and the expectation of the security in the future. High P/E ratio indicates that the market is more willing to pay for the earnings of the company. It means the market has high expectation for the future of security. For P/E ratio is between 10 and 17, it is considered as acceptable level with moderate expectation of the security in the future. Therefore, Pak Fah Yeow International Limited has been predicted and expected still at fair value and stick with the trend. 6

7 Strategic Analysis Strength 1. Good reputation: Pak Fah Yeow International Limited obtained a lot of certificates. For example, it awarded Good Manufacturing Practice certificate by Therapeutic Goods Administration, Department of Health, Australia (1996), Hong Kong Top Ten Brand Names Awards (1999), Q-mark Licence for White Flower Embrocation (2000) and the certificate ISO9001:2000 (2003). These certificates are evidence that Pak Fah Yeow International Limited can produce high quality traditional analgesic medicine. Besides, this company established more than 85 years, all products are manufacturing in Hong Kong. It gains a lot of trust from consumers and builds a long-term relationship with them. It is because Pak Fah Yeow can effectively bring relief to discomforts. 2. Steady supply of raw material As Pak Fah Yeow Limited established for 85 years, it had built up a long term relationship with reliable suppliers which ensure the quality of the raw material. It helps to maintain customer loyalty. Also, the price of raw material is relatively stable except inflation factor, which helps the company to make cost control easier and set the product price at reasonable level. Weaknesses 1. Risen in Production Cost From the 2011 Annual Financial Report, the production expense especially for raw materials and consumables (Used for the production of white oil and related products) increased from HK$21,437,000 in 2010 to HK$30,731,000 in 2011 due to inflation. This shows a total of HK$9,294,000 material costs were recorded, neglecting the other operating expense such as staff costs and electricity fee. However, the turnover showed a mere growth of HK$8,042,000 only. Despite that this cost had been cut to around HK$750,000 in the next year, the production cost was remained large and indeed a factor leading to the decrease in company s revenue or retained earnings. Thus, the money used for other new development plans will become less flexible. 7

8 2. Instability of profit ratio According to our financial analysis to Pak Fah Yeow International Ltd., the profit margins had a great fluctuation during the period form 2010 to The profit margin was 50.99% in 2010, then followed by a sharp drop and reached a bottom point of just 39.88% in In 2012, the ratio bounced back to a high level of 50.06%. Although the Company had some other business like stock and property investments, the reduction in sales maid not have a tremendous effect on the Company s daily operation. Although the profit margin rose back, it still has its uncertainty in the future. Thus, this unstable trend was actually unhealthy for the Corporation. Opportunity 1. The Aging Era Referring to the Hong Kong Population Projections , it is foreseen that the proportion of seniors aged 65 and over would have an exponential growth from 13% in 2011 to 30% in 2041; compared with the decrease of proportion of the people aged under 15 from 12% in 2011 to 9% in The former proportion continues to rise. As out target customers are elderlies, this coming aging era will bring about a large group of customers as well as high profit to the Company. 2. New Market in Southeast Asia The revenues gained from the sales of Hoe Hin Brand products and related assets for both property and treasury investments in Southeast Asia market have been increasing throughout these 3 years ( ), especially increase by $1M from 2011 to This positive sign reflects that Southeast Asia will absolutely be the potential market for the Company to expand. Therefore, it is a great opportunity to market Hoe Hin Brand products extensively and increase the market share of these products in Southeast Asia. 3. Advanced technology Nowadays, the improvement of technology improves the efficiency of production and promotion. The Company has started using technology to carry out measuring and filling process. The widespread of e-commerce gives the 8

9 opportunity to Pak Fah Peow International Limited to spread its business around the world easier. It helps to enlarge the market instead of just mainly focusing in Hong Kong. It provides a convenient way to have transactions with overseas customers. Also, Smartphone becomes more prevalent among people. There are various promotions methods which are cheaper and better access to different customer groups such as Apps or Quick Response code (QR code). Threat 1. Competitors Pak Fah Yeow International Limited must watch closely toward substitutions, such as AXE Brand Universal Oil and Zihua Embrocation. The former is the main competitor in Southeast Asia and the latter is new competitor in Hong Kong in recent years. AXE has a strong customer base in different market. Pak Fah Yeow needs to put more effort into promotion in order to increase the market sharing. Also, it should improve the flavor of Pak Fah Yeow since there are lots of people explain that Zihua Embrocation is more acceptable. This new competitor is willing to put resources in promotion activities and advertisement. It will possibly attract some consumers to buy and try Zihua Embrocation. 2. Difficult to capture the market of teenager According to our survey, 74% of teenagers (10-21 years old) explain that they would not use Pak Fah Yeow even they are uncomfortable. Most of that think that the flavor of Pak Fah Yeow is unpleasant. It is a serious threat. It is because teenagers are potential customers in the future. 3. Additional stamp duty Hong Kong and Singapore Government introduced additional stamp duty in order to cool off speculative elements in commercial or industrial properties in the past few years. Rental is one of operating income of Pak Fah Yeow International Limited. It owes a lot of properties. The measure may affect the amount of rental or the value of the properties in the future, and may affect the financial performance of corporate. 9

10 Summary Analyzing the current business situation, Hoe Hin White Flower Embrocation still stands firm with the largest proportions of market share in the Chinese Medicine Oil industry due to good reputation. To maintain its competitiveness and position, Hoe Hin requires expanding their international market. Furthermore, Hoe Hin Brand Products is actually situated in a Maturity Stage of the Product Life Cycle. Not only does the sales growth decline, the Chinese Medicine Oil market in Hong Kong also becomes saturated. Therefore, Hoe Hin should take the advantages of its strengths and opportunities to improve its weaknesses but avoid those threats which may worsen their situation. For the Financial situation, Hoe Hin mainly engaged in two parts: sales of Hoe Hin products and some treasury and property investments. Although the financial situation of Hoe Hin is not with high profitability and liquidity, it has stable and high solvency. Part of the capital can still be used to implement new plans and modify its products or promotion strategies. Strategic Plan Assumptions 1. Assume there is no financial difficulty in recent 5 years of the company 2. Assume Pak Fah Yeow Limited has good reputation in general public and business. 3. Assume the inflation will keep in a stable rate. 4. Assume Pak Fah Yeow Limited has enough human and financial resources to support the establishing of the new product and marketing strategies. Distribution Strategies Vending machine In order to increase the efficiency of sale, Pak Fah Yeow International Limited can use vending machine to sale the company products such as Hoe Hin White Flower Embrocation, Hoe Hin Strain Relief and new product. As we all know, the purchasing channel of medicine for the consumers is mainly retailer. Using Vending machine to sell Hoe Hin products provides an advertising effect which is a fashion way to sell medicine to attract more customers. It is also a more cheaply and efficiently way 10

11 because it minimizes the order process cost from the wholesalers or retailers, storage-space charges from retailers and some of the promotion cost. As it is directly sell to the ultimate consumer, the products can be charged at higher prices and increased its profit. In addition, it can be placed in a variety of high-traffic locations and provides 24 hours available for sales that makes the products more convenient for the customers. The distribution coverage of vending machine is on a selective base where mainly placed at busy area and piers. Establish shops on online marketplace Hoe Hin Pak Fah Yeow International Limited (the company) is always looking to expand into new international markets. As the development of the Internet, many people like shopping on the online shopping platform like ebay, taobao. If the company establishes accounts on these online platforms, it can increase the company exposure to new potential customers especially overseas customers who are looking for Chinese medicine oil. It can increase the popularity of the company in overseas which can expand its markets. Promotion Strategies Booths In order to increase the reputation of Pak Fah Yeow International Limited and its products, we decide to setup booths in downtown areas, for example, Mongkok and Causeway Bay pedestrianisation. There are a lot of tourists and local people. We can distribute Pak Fah Yeow (sample) to them and introduce the application of it. This activity can promote Pak Fah Yeow to the foreigners, thus they will notice the product and its effectiveness. It could be the first step to introduce Pak Fah Yeow into international market. Apps advertising According to our financial report, the operation cost of Pak Fah Yeow International Limited is high. We need to economize on expenditure. We find that most of people think that they are little notice the advertisement about Pak Fah Yeow and Hoe Hin Strain Relief on radio and newspaper. Thus, we decide to cancel the advertisement on these promotion channels. On the other hand, we will allocate resource on online 11

12 advertising and apps advertising. These methods should be less costly than traditional advertising. Price strategies Odd even pricing it means pricing at odd-numbered prices to connote a bargain and pricing at evennumbered prices to imply quality. Such as set the price of Pak Fah Yeow (10ml) which sell at online shop and retail shop at $29.9. It make customer feel that they are paying a lower price for the product. Price bundling it is marketing two or more products in single package for a special price. For example, put Hoe Hin White Flower Embrocation and Fuzai 239 together into one package. Also, it is useful for promote the new product. Sell the new product in a package allows customer to try the new product with lower cost. Product Strategy New Product (Hoe Hin Strain Relief Patch) According to our survey, we found that some of the products especially Hoe Hin Strain Relief are seldom recognized by people. It is important for Pak Fah Yeow International Ltd. to modify and introduce a new product in order to recall customers awareness and increase the inventory turnover of those less popular Hoe Hin brand products. The new product will be designed in a convenient way for customers to use and carry (Details shown in Appendix) instead of a bottle of Chinese Medicine Oil. 12

13 Implementation Plan (New product strategies) Stage Period Description Objective Budget Idea generation Generate as many as ideas and ensure Recognizing that all new product idea available to the available source company. of new product idea for 1. Hoe Hin Strain Relief Patch screening Application: relieve pain associated with and Nov strain of muscle White Flower Embrocation (roller - design) N/A Jan Application: Relieve headache 3. Pak Fah Yeow Anti Mosquito Patch (Done) Application: mosquito repellent 4. Hoe Hin Sun Cream Application: sunburn protection 5. White Flower Candy Application: relieve of Motion sickness Screening the idea that generate in the Expand the first stage. It eliminates the ideas that are market inconsistent to the company situation. Improve the Idea Screening Jan (Done) Having considered the available resource and technology, we think that producing Hoe Hin Strain Relief Patch is more suitable. As the production of other products required more advanced efficiency of using company s assets Increase its profit N/A technology and facilities which will incur high cost, they are not suitable under the limited liquidity. 13

14 1. According to the survey, XX% people Indicated the willing to try Hoe Hin Strain Relief feasibility of the Patch. Most urbanite has the problem idea in term of of pain associated with sprain and demand, cost, strain of joint and muscle because of sales and long duration of using computer and profitability lifting heavy objects. Thus, these show this product has its potential market. 1.Expand size of 2. Although there are some competitors the market have already existed in the market, 2. Enhance its Business analysis Jan (Done) Hoe Hin still has its own strength which is its good reputation that attracts the customers to try the new product. 3. From the survey, it is found that some competitiveness 3. Build up a new company image N/A of the Hoe Hin s product is not well known. As the promotion of new product can increase the awareness of Hoe Hin s product, it is believed the overall sales will increase. 4. As the new product is designed in a new package instead of the traditional bottle design, it gives a new fresh image to the public to have more favorable impression. Feb - May develop a prototype To test the feasibility and efficacy of the new product. 30,000 Development May Conduct laboratory tests To ensure users safety by hiring ,000 14

15 - Jun Jun Jun - July July - July 2017 people to keep using the new product. To test the efficacy of the new product. installment of machine Installment 2 manufacturing at the first year. government approval To apply for the government approval to registered pharmaceutical product. Establish Promote the new Marketing strategies product with the most efficient and effective way. For Price: set it at lower level when it at the promotion stage and make a package set with hot sell product item. For promotion: setup booths in downtown areas. For place: Using Vending machine to sell Hoe Hin products 400, , ,000 15

16 1 st : Release Evaluate the sales 600,000 We will produce limited Hoe Hin Strain Relief Testing Aug - Oct Patch (100,000 units) and it will be available in specific distribute points with the aim of determining the reaction of potential customers. Hoe Hin Strain Relief Patch will be available in Central, Admiralty, Wai Chai and Causeway Bay etc. There are lots of offices and those people working in office, who are our target customers. Nov 2 nd : Modify Determine the 700,000 We collect feedback from target customers reaction of this new - Thus, we can consider introduce Hoe Hin product Jun Strain Relief Patch in whole market or not In this stage, we need to: To determine order production materials and equipment whether we need to start production increase the Commercialization From July 2015 build inventories ship the product to field distribution points train the sales team announce the new product to the trade promote to potential customers production when the reaction of Hoe Hin Strain Relief Patch is positive 16

17 Financial Forecasts Pak Fah Yeow International Limited Statement of Comprehensive Income HK$ 000 HK$ 000 HK$ 000 HK$ 000 Turnover 128, , , ,541 Other revenue Other net income Changes in inventories of finished goods 2,262 2,262 2,262 2,262 Raw materials and consumables used (29,989) (30,888) (30,708) (30,828) Staff costs (24,606) (25,590) (25344) (25393) Depreciation expenses (2,056) (2117) (2117) (2117) Net exchange gain (loss) Other operating expenses (32,392) (35,135) (34,836) (34,535) Profit from operations before profit or Loss of investment properties 42,952 44,692 46,703 48,120 Net gain(loss) on financial assets at fair value through profit or loss 4,198 4,198 4,198 4,198 Revaluation surplus in respect of investment property 25,147 25,147 25,147 25,147 Profit from operations 72,297 74,037 76,048 77,465 Finance costs (1,034) (1,106) (1,086) (1,086) Profit before taxation 71,263 72,931 74,962 76,370 Taxation (6,919) (7,074) (7,271) (7,407) Profit for the year, attributable to owners of the Company 64,344 65,857 67,691 68, Rate of increasing of sales revenue 5% 6% 7% Rate of increasing of material used 3% 2.4% 2.8% Staff cost 4% 3% 3.2% Depreciation 20% 3% 3% 3% Other operation expense: Promotion cost increased 800, , ,000 Others (Rent, electronic) 6% 6% 6% Financial cost 7% 5% 5% Taxation 155, , ,000 17

18 Review of Corporate Governance Practices 1. There are two directors, Mr. Gan Wee Sean and Mr. Gan Fock Wai, in this company. As one of the directors is in his age of retirement, it is necessary for the company to plan well in the form of boards as well as the handover. Therefore, the company can maintain its stability. 2. All boards have already had orientation programs and professional development. These ongoing actions can be kept. Those who are in managerial positions may have the opportunity for ongoing professional development such that they are able to precise decisions in different aspects. 3. Having considered in terms of entity s size, complexity, risk of operations and the needs of the board, Board has been developed in an appropriate structure. Evaluations should be conducted periodically in order to ensure the broads can execute their duties. Reference A study of corporate governance practices in leading corporates in india. (2007). Retrieved from Aastocks.com ltd. (, January 15). Retrieved from ymbol=00239 Anonymous. (2013, April). Inventory turnover. Retrieved from _id= Bloomberg markets. (, January 15). Retrieved from Inverstors chronicle. (, January 15). Retrieved from Ou-Yang, L. Hong Kong, Census and Statistics Department, (2012). Hong kong population projections Retrieved from website: Uhrig, J. Australia, Department of Finance, (2003). Review of the corporate governance of statutory authorities and office holders. Retrieved from Canprint Communications website: 18

19 Appendices Samlple Vending machine Hoe Hin Strain Relief Patch 和興活絡貼 Application Active Ingredients Dispel wind Remove obstruction of the meridians and collaterals Analgesic Simple backache Bruises Ease swelling Temporarily relieve minor ache and pain associated with sprain and strain of joint and muscle Camphor 10% Menthol 15% Methyl salicylate 48% 19

20 Questionnaire Questionnaire on Pak Fah Yeow International Limited 問卷調查 We are students from Hong Kong Community College. We would like to investigate on the operation of Pak Fah Yeow International Limited. A questionnaire has been prepared for you to share your opinions and thoughts with us. Please take 10 to 15 minutes to complete the questionnaire below. 我們是香港專上學院的學生 我們正希望在進行一項有關白花油國際有限公司的調查 希望您能分享您的意見和想法 請花 10 到 15 分鐘完成以下問卷 Please put a where appropriate. 請在 內加 1. Which brand you have used before? 您曾經用過下列哪個品牌? Hoe Hin Pak Fah Yeow 和興白花油 Wah Sing Zihua Embrocation 華星紫花油 Axe Brand 斧標 2. Which of the following would you use as the preferred brand in the future? 將來 你會以下列哪一個品牌作為首選? Hoe Hin Pak Fah Yeow 和興白花油 Wah Sing Zihua Embrocation 華星紫花油 Axe Brand 斧標 3. What are the criteria of choosing Chinese medical oil? 以下哪幾項為你購買藥油 的準則? Brand s history 品牌歷史 Wide applications 功效多 Other certificates 其他證書 Production place 製造地 Package 包裝 Q-mark license Q 保證 Price 價錢 others 其他 (please specific 請註明 ): 20

21 4. Which one is your favourite brand? 您最喜愛用哪個品牌? Hoe Hin Pak Fah Yeow 和興白花油 Wah Sing Zihua Embrocation 華星紫花油 Axe Brand 斧標 5. Do you like using Hoe Hin Pak Fah Yeow? 您喜愛用和興白花油嗎? Yes 喜愛 (Skip question7 略過第 7 題 ) No 不喜愛 (Skip question6 略過第 6 題 ) 6. Why do you like using Hoe Hin Pak Fah Yeow? 您喜愛使用和興白花油的原因 Long brand s history 品牌歷史 Well applications 功效佳 Good flavor 氣味好 With Q-mark 有 Q 保證 Hong Kong Production 製造地 Nice package 包裝好 Low or acceptable price 平或價錢合理 With other certificate 有其他證書 others 其他 (please specific 請註明 ): 7. Why do not you like using Hoe Hin Pak Fah Yeow? 您不喜愛使用和興白花油的 原因 Strong smell 氣味太濃 Poor package 包裝欠佳 Expensive 貴 Poor applications 功效欠佳 Difficult to use 難以控制倒出的份量 inconvenient to buy 可以購買的地方不多 others 其他 (please specific 請註明 ): 8. Do you know the following product of Hoe Hin? 您知道和興有什麼產品? Hoe Hin White Flower Embrocation 和興白花油 Fuzai 239 福仔 239 Hoe Hin Strain Relief 和興活絡油 White Flower Ointment 和興白花膏 21

22 9. Where do you purchase Chinese medical oil? 哪一項是您購買藥油的主要途徑? Pharmacy 藥房 Convenience Store 便利店 Personal Care Products store 個人護理產品 Health care products store 保健產品商店 Online Shop 網上商店 10. Which promotion channels do you like the most? 您最喜歡哪一個推廣渠道? TV Commercial 電視廣告 Newspaper 報紙 Magazine 雜誌 Radio 電台 Billboards 廣告牌 Painted vehicle 彩繪車 Online Promotion 網上推廣 Public Relations 公關活動 others 其他 (please specific 請註明 ): 11. Which of the following products do you like to try? 若果現在和興白花油推出下列 產品, 您會想嘗試哪一項? Hoe Hin Strain Relief Patch 和興活絡貼 (Application: relieve pain associated with and strain of muscle 用途 : 舒緩肌肉酸痛 ) Pak Fah Yeow Anti Mosquito Patch 白花油驅蚊貼 (Application: mosquito repellent 用途 : 驅蚊 ) Hoe Hin Sun Cream 和興太陽油 (Application: sunburn protection 用途 : 防曬 ) White Flower Candy 白花糖 (Application: relieve of Motion sickness 用途 : 舒緩暈動病症 ) others 其他 (please specific 請註明 ): 12. What is your impression toward Pak Fah Yeow? 您對和興白花油有什麼印象? Personal information 個人資料 Age 年齡 : below above 60 Gender 性別 : Male 男 Female 女 22

23 Summary of questionnaire Q1. Which brand you have used before? Axe Brand 24% Axe Brand 19% Q2. Which of the following would you use as the preferred brand in the future? Wah Sing Zihua Embroca tion 9% Hoe Hin Pak Fah Yeow 67% Wah Sing Zihua Embroc ation 6% Hoe Hin Pak Fah Yeow 75% Q3. What are the criteria of choosing Chinese medical oil? Brand s history Production place Wide applications Package Certificates Q-mark licensee Price Axe Brand 19% Wah Sing Zihua Embroca tion 4% Q4. Which one is your favourite brand? Hoe Hin Pak Fah Yeow 77% Q5. Do you like using Hoe Hin Pak Fah Yeow? No 45% Yes 55% 23

24 Q6. Why do you like using Hoe Hin Pak Fah Yeow? Brand s history Production place Wide applications Package Certificates Q-mark licensee Price Q7. Why do not you like using Hoe Hin Pak Fah Yeow? Strong smell Expensive Poor package Poor applications Difficult to use inconvenient to buy Q8. Do you know the following product of Hoe Hin? Hoe Hin White Flower Embrocation Fuzai 239 Hoe Hin Strain Relief White Flower Ointment 24

25 Health Online Q9. Where do you care Shoppurchase Chinese medical oil? products 0% store 8% Convenience Store 22% Pharmacy 59% Personal Care Products store 11% 10. Which promotion channels do you like the most? Public Relations 19% TV Commercial 29% Online Promotion 22% Newspaper 4% Billboards 14% Painted vehicle 3% Magazine 7% Radio 2% Q11. Which of the following products do you like to try? White Flower Candy 19% Hoe Hin Sun Cream 7% Hoe Hin Strain Relief Patch 62% Pak Fah Yeow Anti Mosquito Patch 12% 25