Ginseng

Asia’s most valued Herb

 Agenda
Case Study Background

Aim of Research

Marketing Construct

Product

Price

Place

Promotion

Conclusion
Case study background
Ginseng is among the most widely used ingredients for dietary supplements,
pharmaceuticals and cosmetics in Asia.
Used in traditional Chinese medicine for centuries, it is found to be rich in
antioxidants and brings various health benefits such as: reducing
inflammation, improving brain function, boosting immunity, and lowering
blood sugar (Rd, 2022).
The global market for ginseng is valued at a whopping US$ 8 billion in 2022 and
is predicted to reach US$17.7 Billion by 2030 (Global Industry Analysts, 2023).
Asia-Pacific is the largest market for ginseng, followed by North America and
Europe (Global Industry Analysts, 2023).
South Korea consumes 16.4 thousand tons of red ginseng in 2021 and is
the largest consumer of ginseng in Asia (Statista, 2022).
China produces about $2,870 million worth of ginseng in 2018 and is the
largest producer of ginseng in the world (Baeg & So, 2013).
Venturing into these markets offers customer familiarity of the product and can ease initial market entry,
but creating product uniqueness in comparison to competitors could become a challenge.
Aim of Research Research questions
What benefits of ginseng may
This research aims to investigate the market
potential and consumer preferences for ginseng
show effectiveness in attracting
products in Asian countries. Although it has had pre- customers?
existing success in many asian nations it is important
to explore not only the best practices and strategies Are there any competitors to
for developing, pricing, distributing, and promoting
consider when entering the
ginseng products or services in the market, but also
analyze the evolving market trends and potential ginseng market in Asia?
substitutes of the product. This way, we can gain
insights into how to create and deliver value to our What are the consumer
target consumers and achieve a competitive expectations and perceptions of
advantage in the ginseng industry. By considering
ginseng products?
both traditional competitors and emerging market
dynamics, we aim to develop a more comprehensive
understanding of the challenges and opportunities What are the best ways to
within the Asian ginseng market. position and differentiate ginseng
products Asian countries?
Target Market
The target consumers of ginseng are are mainly health-conscious and
wellness-oriented individuals who have experienced and enjoyed
northern asian traditional medicine.
In addition they must be willing to spend a costly amount of 17 USD
per ounce of the herb.
Thus, the target customers for ginseng is heavily influenced by their
income levels to ensure they are able to afford the price and because
of their lifestyle with better health and more choice of healthy options.
Another important factor is their cultural beliefs that varies depending
on country of origin.
(Mishra et al., n.d.)
For example, in South Korea, ginseng is considered a national
treasure and is used in dietary supplements, cosmetics, and
medicines. And in Japan, ginseng is valued for its benefits to the
immune system, cardiovascular health, and nervous system
Therefore, target consumers would likely be Northern Asians and the specific age group would lie within the range of
60 and above including pensioners and the elderly, which is backed by statistical evidence that states the mean age of
consumers was 70.2 years (Lho et al., 2018).
 Marketing Construct

Price Promote

Product Place
 Product
One possible product that can be marketed well in Asian countries is a ginseng-infused
energy drink that can provide a natural boost of energy, immunity, and brain function.
Although the ginseng target market is aimed towards seniors, introducing an easy to
access and simple product may appeal to younger consumers as well.
In addition, the product or service can be differentiated from other energy drinks by
highlighting its health benefits, quality and safety.
Another advantage it offers is its ability to be customized to suit different tastes and
preferences of consumers in different countries.
However, it is important to earn health and quality certifications when introducing an
unfamiliar product to build customer trust.
Certifications like the ISO 9001 which is the standard for quality management systems,
Good Manufacturing Practice, which are guidelines that ensures the quality and safety of
food, pharmaceutical, and cosmetic products, and Hazard Analysis and Critical Control
Point, which is a preventive approach to food safety that identifies and controls
potential hazards
Other certifications might include Halal and Organic for consumers with certain religious
beliefs and health consciousness.
(Canva, n.d.)
 Price
For quality-oriented products such as ginseng, it is important to
maintain a premium price and offer a high quality experience with each
sale.
A possible pricing strategy to employ is value-based pricing.
Value-based pricing means setting the price according to the perceived
value of the product to the consumers
The set price can reflect the premium quality and benefits of the
(Canva, n.d.)
product, as well as the costs of production and distribution.
Therefore, a reasonable selling price for a 1lb packet of whole, aged
ginseng roots should be set to USD 49.99.
However, the strategy of competitive pricing could also prove useful
upon first entry of a challenging market with many rivaling businesses.
Using competitive pricing for smaller packaging sizes or bundle pricing
for larger quantities ensures ginseng remains an attractive option for a
wider customer base.

(Canva, n.d.)
 (Xu et al., 2017)
Place
The two largest producers and markets for ginseng in
Asia are currently China and Korea (Baeg & So, 2013).
Therefore, although filled with marketing opportunity,
entering these markets could pose a challenge due to
the number of competitors that have already gained
loyal customers and built up brand image.
As a result, it would prove beneficial to begin a venture
in a nation such as Singapore due to the following
reasons:
(Baeg & So, 2013)
Large and diverse population of potential consumers
who might be interested in traditional medicine and
herbal supplements.
High level of economic development and purchasing
power, which can enable consumers to afford
premium quality ginseng products.
A favorable business environment and trade policy,
which can facilitate the entry and expansion of the
businesses in the country: Singapore ranks 2nd in
the ease of doing business index in 2020, with a
score of 86.2 (Statista, 2023).
 Place
How to deliver ginseng in Singapore
Local Partnerships: Establish partnerships with local distributors, wholesalers, or
retailers who have a strong presence in the Singaporean market. Collaborating with
established partners can help tap into their existing distribution networks.
E-commerce Platforms: Leverage popular e-commerce platforms in Singapore, such as
Lazada, Shopee, and Amazon.sg. These platforms offer a convenient way to reach a wide
range of consumers.
Pharmacies and Health Stores: Partner with local pharmacies and health stores that
specialize in wellness and herbal products. These businesses often have a dedicated
customer base interested in ginseng.
Traditional Chinese Medicine (TCM) Clinics: In Singapore, Traditional Chinese Medicine
is widely practiced. Therefore a collaboration with TCM clinics to offer ginseng products
can help reach regular patients who may place better trust in the herb than new
customers.
Health and Wellness Retailers: Approaching health and wellness retail chains operating
in Singapore, such as Guardian and Watsons, to ginseng products is also a viable
strategy.
Direct-to-Consumer (DTC) Sales: Establishing a direct-to-consumer sales channel
through a dedicated e-commerce website or mobile app allows for better control over
the product presentation and pricing.
 Promotion
Considering the target age group of senior citizens, it is crucial to use promotional strategies
which may have a larger probability of reaching the consumers by mediums such as:

Repetitive Among social medias, Reaching out to Fliers and point of In Singapore
Television Facebook is well-used social media sale displays at the particularly,
commercials by seniors to to influencers (mostly supermarket can adverts on MRT
between regular communicate with health and be a convenient displays are an
dramas could be a their friends and wellness bloggers) and cost-effective effective method
power strategy to family. is a viable strategy way to reach senior which can be seen
appeal to seniors, Ads on the platform to reach larg and citizens who shop by commuters of
who may watch TV gives access to loyal fanbases as regularly for all demographics
more frequently valuable tools to content-creators groceries and other for the length of
than other media. target and segment have been on the essentials their journey.
potential customers. rise of popularity
among seniors
 Promotion
An additional strategy that could increase purchase urgency is the
promotion of ginseng on special occasions such as Christmas,
Thanksgiving and Fathers/Mothers day when younger buyers might
consider buying ginseng products as gifts for their parents and family
members. A possible method is by selling gift-baskets and bundles filled
with health essentials for the elderly including milk powder,
multivitamins, mineral supplements together with l ginseng products.

An important aspect to consider when promoting a product is the slogan. A good slogan to
advertise ginseng’s health benefits and anti-aging properties (which is often desired by Asian
seniors) could be :

"Ginseng: Your Secret to Ageless Vitality"

 Review Conclusion
Market Research and Potential:
Ginseng's historical significance in Asia.
Growing global market worth $8 billion (2022). In conclusion, while introducing ginseng
Predicted $17.7 billion market by 2030. products to Asian markets presents its set of
Target Market:
Health-conscious consumers. challenges, such as adapting to diverse
Age group: 60+. consumer preferences and ensuring market
Willingness to spend $17/ounce.
Product Strategy:
trust, ginseng's cultural significance, coupled
Ginseng-infused energy drink. with its well-documented health benefits,
Appeals to seniors and younger consumers.. serves as a solid foundation for our business.
Pricing Strategy:
Value-based pricing.
With a commitment to quality, adaptability,
1lb ginseng price at $49.99. and an innovation, we are on track to see
Place: ginseng's success in the dynamic and thriving
Expansion in Singapore.
Promotion
Asian marketplace.
By TV commercials, Supermarket fliers, Billboards, Social
media (e.g., Facebook).
Gift strategy
 Timeline

Market research Target Market I.D Product Strategy Pricing Strategy

Conduct market research Segment the target Begin product Implement pricing
on trends, worth and future market further based on development, including strategy and monitor
projections lifestyle, income levels, taste testing and quality initial sales.
and cultural backgrounds. assurance.

Expansion into Promotion Launch Gift Strategy Review and

Singapore Develop a comprehensive Implement and measure Adjustment
Initiate the process of promotional strategy using the effectiveness of the Conduct a thorough
market entry into TV commercials, gift strategy through review of the entire
Singapore, including supermarket fliers, customer feedback and implementation process.
regulatory compliance billboards, and social increased sales.
and partner selection. media
 References
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