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New Food Market Opportunities

Essay by   •  August 9, 2011  •  Case Study  •  489 Words (2 Pages)  •  1,197 Views

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Asia Pacific Expansion Strategy

 Market - Nutritious, Protein based, affordable value added branded food products

 These products to not have to be meat based.

 Could be drinks, bars, snacks, etc.

Target Consumer

Children & Women

Where, what countries?

 Countries with annual family purchasing power parity of $3,000

 Average real GDP growth of greater 4 %

 At least one city of 1-million people

Products

 Cross Cultural - able to market to consumers from major religious groups in Asia, Muslim & Hindu

 For all day parts

 Full range of storage & distribution options - ambient, chilled, frozen, shelf stable, with shelf sable being the focus of branded processed products.

 Affordable

 30 % target contribution margins; 8% to 10 % Operating Profit/Income from Operations

 Decision Process

How do we get products to target markets?

 Export - from low cost production bases

 In country - direct investment in operations

 Licensees

 Co-packers

 Franchising

In Country Operations,

 Market entry -Export or In Country Operations

 Where do we set up operations?

 Low cost producing countries - abundant raw materials and natural resources, low cost labor, low cost energy, low political & corruption risk ease of doing business, few trade and import/export barriers, low animal deceases, cross cultural production capability and acceptance of production base by target countries (If production is targeted to Muslim or Hindu consumers.

 Vertical integration?

Execution

 Go it alone or with a Partner

 If partner, why? Resources we don't have, shared risk, not a competitor, common language and business culture, compatible with Americans, human resources that are familiar with working outside of their country, compatible Asia expansion strategy

 If Partner what geographic areas

 Financially sound

 One Partner?

...

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