Introduction ---------------------------------- 1

Market analysis --------------------------------- 1

Company analysis -------------------------------- 1

Competitor analysis ----------------------------- 2

SWOT Analysis ---------------------------------- 2

Strengths ------------------------------------ 3

Weakness ------------------------------------- 3

Opportunities ---------------------------------- 3

Threats -------------------------------------- 3

Recommendations --------------------------------- 4

Segmentation and Recommended Target Market ------ 4

Recommended Positioning ------------------------ 4

The marketing objective ------------------------- 5

Marketing strategies -------------------------- 5

Product strategy -------------------------------- 5

Pricing strategy -------------------------------- 6

Distribution strategy --------------------------- 6

References ------------------------------------ 6


Lexington limited is a twenty-year-old company. It is a specialist in contemporary product innovation. The company offers a unique and stylish product range to suit every day domestic lifestyle needs.

The purpose of this marketing plan is to address the current opportunity of offering Lexngo product line to XYZ supermarket. There is very intense competition in the Hong Kong market which is the freest economy in the world. Moreover, the retail sector is growing at over 12% annually whereas the economy is also growing at an above-average rate in the last six quarters. The paper will analyze the market, the company, and the competition and will assess the strengths, weaknesses, opportunities, and threats to the company and will suggest marketing strategies accordingly. Under marketing strategies, four Ps of marketing will be addressed.

Market analysis

Hong Kong is the freest economy in the world and it means the competition here is intense due to lack of government intervention. Hong Kong has a strong market with the economy grew rapidly in the last 6 quarters. The demand in the market is rising rapidly. The consumer prices are also rising in the market, making it a potentially profitable market for the companies, particularly for those that can control its costs. Particularly, the retail sector, where the Lexington products belong to is growing rapidly at over 12% year on year which bodes well for the company to launch its Lexington line expansion to become OEM for a new supermarket . (Economic and Trade Information on Hong Kong | HKTDC 2018)

The competition would also be impacted by the tax relief provided to the small and medium-sized enterprises and thus improving their competitive position through a reduction in costs. (Economic and Trade Information on Hong Kong | HKTDC 2018)

Company analysis

Lexington limited was founded 20 years ago. It is a specialist in contemporary product innovation. The company is committed to providing unique and stylish designs to suit every day domestic lifestyle needs. It offers three lines of products. Under “Lex living” it provided tabletop items, kitchen tools, fruit bowls, drink accessories, ice molds, gift accessories, trivet and gloves, cutting boards, pet bowls and pet accessories etc.

Under the “Lexington” it offers lunch boxes, meal boxes, snack boxes and other items which we need while going out. Under the “L'Enfant”, it offers collapsible bows, formula dispensers, drinking cups, feeding spoons and other similar items for babies and toddlers. It is available in not only in brick and mortar stores in Hongkong but also online. It is also an original equipment manufacturer for several companies in Hongkong like Wendy’s, Breville and many others. Its silicon and plastic manufacturing factory is located in China. It also has clients around the globe and took parts in exhibition throughout the world. It also operates its own retail shop in Hong Kong. (About Us - Lexington Limited 2018)

Competitor analysis

The competition is very tough in the market for children, home, gift, entertain, pet and travel products. Due to extensive competition, prices are very competitive of different companies. Major competitors include New Ocean Industrial, Genuine Plastic & Metal Factory Company Limited, Start Industrial, Supreme Plastic Manufacturing and many others. The source of advantage for Lexington limited in the market is its well-renowned brand name and its reasonable prices. The company name is associated with quality and that is what attracts the customers most.

SWOT Analysis

SWOT analysis is a great tool to analyze the micro environment of the company.

swot analysis


The most important strength of the company is that it has a well-established brand name and is well known among the local customers.

Then, the company is associated with quality because of the quality of its products. Moreover, the company is profitable to support its operations. (assumption in absence of financial statements. Considering the company is old enough and is expanding rapidly having own manufacturing facilities and stores).

The company has already exported around the globe. Securing this current contract would mean that the company’s sales will be boosted further. And it may end up in significant exports for the company.

Due to higher sales, the company has the significant economy of Scale. (Assumed because of a high number of companies for which it is acting as OEM and other sales.)

It has strong research and development capabilities.

It has own retail outlet that is not only contributing to sales but also enhancing its brand image.

It is also doing contract manufacturing for many large companies like Wendy’s which gives not only profit but also the economy of scale advantage to its operations.


The company is producing products in just three narrow product lines whereas, plastic products can have numerous product lines.

The company has a major reliance on the Hong Kong market with regard to retail sales.

It is operating in the freest market which resulted in stiff competition in the market.


The company can expand into retail store segment by offering more product lines like plastic furniture.

The company can expand its international operations through own retails stores in fast-growing markets.

There is significant growth in demand in the local market which means the company can expand its sales further through aggressive sales and marketing.


There is very Intense competition in the market.

It may be difficult to raise finances for the expansion of international operations because it is not a public company.


Lexington is a two-decade-old company with great products that have both quality and style. The economy is expanding rapidly and the demand in the market is also improving rapidly. All this bode well for the company. However, the company needs aggressive marketing and sales strategy because the competition in the market is intense due to lack of government intervention. The company has a strong brand name and quality product line. The XYZ supermarket is potentially a huge client which the company should not let go. The supermarket and contract manufacturing clients usually need the lowest price and appropriate quality. Therefore, the profit margin for the Lexington will be lower than the routine sales. However, as the company has access capacity (assumed) so it would not require any extra capital investment.

Segmentation and Recommended Target Market

The segment for the Lexengo line is very straightforward, it is products for the people on the go. However, the company should focus on its reusable ability and the contribution to the Green world and reduce plastic pollution and waste and thus protect both lives on land and the marine life. The Target market for the Lexengo line is definitely Hong Kong where it is particularly interested in becoming OEM for XYZ supermarket. XYZ supermarket wants to get own label products from a suitable manufacturer. For custom label products, the cost is the second most important criteria along with the quality. Private label products are on a rise in the supermarkets and they now account for a significant part of the supermarket sales (Mortimer and Grimmer 2018). The company can offer to make all of the products for the people on the go segment of the supermarket. This would ensure higher sales and decreased costs due to the economy of scales. Moreover, once successful in securing sales for the Hong Kong market, the contract can be secured for the around the global chain of the supermarkets for the same company. This is feasible particularly because the company already have sales around the globe. This would also help it become an international company.

Recommended Positioning

In light of the customer requirement, the product position is to place Lexengo in the supermarket as a reusable green product line for people going out for a picnic or for office purpose. Being a green product will give it an attraction for the customers.

The marketing objective

Marketing objectives are goals set by a business when promoting its products or services to potential consumers that should be achieved within a given time frame. In other words, marketing objectives are the marketing strategy set in order to achieve the overall organizational objectives. The marketing objectives should be SMART which stands for Specific, Measurable, Realistic and Time Specific. (What Are Marketing Objectives? - Examples & Overview - Video & Lesson Transcript | 2018)

In this regard, the objective of the company is to sell 10,000 units of its Lexengo Line per month to the XYZ supermarket. This goal is realistic because of the high level of sales and increasing demand in the market and because the XYZ Supermarket is having 4 stores in Hong Kong. However, a reasonable pricing strategy is necessary for this purpose. We’ll address this strategy in the below marketing strategies section.

Marketing strategies

The company is already selling its Lexengo product line successfully not only in Hong Kong but internationally. However, the purpose of this document is to identify marketing strategy for XYZ supermarket, which is a new client. This marketing strategy can be quite different from the general marketing strategy because of the potentially high level of business and because the relationship with XYZ supermarket could bring chances of increased international sales with it as well. For this purpose, the following is the suitable marketing strategy for the company.

Product strategy

The product line that is relevant here is the Lexengo under which company manufacture and sell products for the people on the go. The products are usable and are essential to make the world greener as they help protect human as well as marine life. Then the products are attractive and stylish as well. However, for the supermarket, the product designs should be little different from its own designs in order to differentiate Private Label products of the supermarket from its own product because its own products would also be sold in the supermarket and they may carry higher price as well. The company should ensure that the private label product is also of the same quality as its own brand as it is necessary for not only increased sales but also for the long-lasting relationship with the customer.

Pricing strategy

The supermarkets normally bought products at the lowest cost. This is because they too offer it at a lower price than the original brand or the prevailing market prices in order to attract sales. This is because most supermarkets position themselves as offering every day low prices across many product lines or temporary price reductions on several premium brands as well. (Ellickson and Misra 2006)

Therefore, the company should offer a 30% lower price to the supermarket for the private label products. Some of this cost would be covered because there would be no intermediary involved in selling to the supermarket. Then, because the company already have access capacity, so there would not be any additional capital costs for these supplies and so the company’s income will increase significantly if this relationship is established.

Distribution strategy

The distribution, in this case, is related to the distribution of Lexingo product line to the XYZ supermarket The XYZ supermarket is a direct client of the company for which company would act as OEM. So there would not be any intermediary involved in this case and the company would deliver products direct to the XYZ supermarket. Therefore, the distribution strategy is very simple in this case. The company would take orders from XYZ and deliver the products one week after the order is received. The company has enough capacity and flexibility in its production line to adjust and manufacture products for XYZ within a week.

Promotion strategy

As this marketing plan is related to a single customer, so there is no specific promotional strategy is required. The Super Market management already know Lexington very well and are convinced of its quality as many other companies and supermarkets are using Lexington for contract manufacturing or private label product manufacturing. The company needs to submit a proposal with the XYZ supermarket. However, in that proposal, the company needs to market and promote itself by explaining why the supermarket should select it as OEM instead of competitors.


Economic and Trade Information on Hong Kong | HKTDC. (2018). Retrieved 29 July 2018, from

About Us - Lexington Limited. (2018). Retrieved 29 July 2018, from

Mortimer, G. and Grimmer, L.(2018). Love them or loathe them, private label products are taking over supermarket shelves. The Conversation. Retrieved 29 July 2018, from

What Are Marketing Objectives? - Examples & Overview - Video & Lesson Transcript | (2018). Retrieved 29 July 2018, from

Ellickson, Paul &Misra, Sanjog. (2006). Supermarket Pricing Strategies. Marketing Science. 27. 811-828. 10.1287/mksc.1080.0398.

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