New Food Market Opportunities
Essay by Stella • August 9, 2011 • Case Study • 489 Words (2 Pages) • 1,752 Views
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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