Reporter the most appropriate market entry strategy for the company is and justify the rationale for this strategy.
In this case is not the necessary introduction and conclusion, just reporter regarding the market entry strategy for the company Chopped, Necessary just references. Show in grafics as well, put the strengths and challenges, key indicators, ratings, what kind of issues to consider, the market size and growth potential, regulatory and competitive environment, key demand drivers and possible future developments, tax, legal and labor aspects which could be critical in the evaluation of an industry
Market Entry Strategy: Indirect Exporting
Global marketing implies selling products globally. It comprises the complete procedure of planning, manufacturing, placing and endorsing products of a company in the international market. This paper defines the appropriate market entry strategy for the Chopped to open a small branch inside a convenience store in London. Chopped offers fresh, sparkling and nutritious food, served quickly. The mission of the company is to provide modest and delightful ways to add healthy food picks into the busy day (Al?Khatib, Al?Habib, Bogari and Salamah, 2016). The company believes in offering quality and fresh produce and provides the option of creating your own menu. Chopped believes in innovating methods to prepare and offer clean, healthy and fresh food. It is committed to informing and educating about clean and nutritious food choices.
There are several ways by which Chopped can enter in the international market. Out of various marketing strategies, the company can make indirect exporting to enter into the market of London. It is an economical and upfront way to enter into the new market. It is the most communal method which can be used by the company in order to conduct business internationally. Chopped does not have a need to build marketing infrastructure overseas to reduce the financial burden. It reduces the financial burden on the company. The indirect exporting is useful in improving foreign market sales significantly (Banerjee, Prabhu, and Chandy, 2015). The channel partners can make use of agents or distributors based on the target export market. It is the easiest way to provide products and services to the end users. Since Chopped will sell products through the existing network and the customer base of the convenience store. A good convenience store will have reputation, contacts and in-market experience which is going to be helpful for the Chopped. But the company is still going to requisite apposite provision for the overseas marketing and the sales of the product. The indirect exporting is effective as for market entry and sales progress can be fast due to the partner’s client base. It is almost risk-free for the company to begin. The convenience store will take care of all the formalities regarding documentation, shipping arrangements, attaining licenses from the government departments, financial, political, credit risks and more (Rao-Nicholson and Khan, 2017). It also demands the least involvement in the export process. The company is also going to have limited liability for the marketing problems as the store is there to finger at. Chopper even does not have a need to concern about the shipment and other logistics. The company can even field test the products for the export perspective. The convenience store can even provide the necessary support to the Chopper for the products. The indirect export equally allows focusing on the domestic business to the company. The local presence of the convenience store is reassuring for the company to attain buyers. The company does not have a need to suffer stock of unsold stock. The sales, marketing, and other costs can be shared between the channel partners. It is easier for the Chopper to follow up on forecasts and service existing partners (Vigani, et. al. 2015). Chopper will be advantageous in the London market as it will have accessibility to the more customers. The sales in London will lead to more sales as a result more profit can be generated and foreign exchange can also be earned. It can generate more employment in the host country as well. The disadvantages of entering the London market can be faced in the form of a different culture. It is not necessarily the culture to be the same in the home and host country. The rules of the government may not support the growth of the company in London. The company even need to adopt a totally different marketing mix in the market of London.
Strengths and Challenges
The strength of the Chopped can be identified by offering quality service and a memorable experience. The healthy food and the nutrition are provided by the company serving less on calories. The food safety is taken seriously by the company. The other strengths consist of the pricing structure like offering lower price menu (Manrai, Manrai, and DeLuca, 2017). It can make use of special promotions like buying two meals and getting one for free. Cooper can face threat from the local competitors of the London. The recession may also reduce the sales as the spending among the people has condensed due to the less disposable income.
The key indicators are measurable values which determine how effectively Chopped is attaining business objectives. The key indicators can be measured by options like food safety, stock and brand consideration. Chopped keeps track of the temperatures, ingredient shelf life, sterilization, and the must-haves. The exact procedures depend on the local regulation and laws but it is non-negotiable. The stock ties with the shelf life and the working capital. It affects production efficiency because product efficiency is a critical enabler to produce a product. Detailed information is required on the downtime and waste losses (Schlegelmilch, 2016). Chopped is already an established brand in Ireland. It can easily attain a market share in London due to its reputable image. These key indicators are helpful for the Chopped to take entry in the market of London.
Chopped has a good rating in the market overall. The brand provides prospects to grow and progress. It is easier to select the menu due to the option of creating own menu. It adds extra time and real value to the outputs. The ratings of the company even help in converting prospective customers into real customers (Leonidou, Katsikeas, Samiee and Aykol, 2018).
Chopped can face many issues in the local market of London. The issues required to be considered by the Chopped know the market, analyzing the local competition, deciding the best business model, choosing an appropriate partner, constructing permits and more. The company is required to conduct consumer research and get an idea of the target market (Kolk, 2014). The competition can be analyzed by adopting a cost-effective approach. The best business model is necessary to adapt to compete with local companies. A local partner is needed by the company to begin the venture in London. It is a great issue to get permits. The permission can be obtained by the relevant theories.
The market in London is growing faster than the previous years. The food companies continued to rise and represent 66.8% growth. The London market wrapped worth £1.4 billion in 2015 and it was the market size by value (Smith, 2016). The market size gives an idea of the sales potential in order to launch into the market of London. The market growth is a function of economic trends and consumer tastes. It boosts to the potential growth of the company.
The labeling of the genetically modified (GM) food has become significant as the new rules concerning to GM have come into power. The purpose behind it is to notify clients regarding buying products. The increased regulations in the food industry affect the marketer's decision. Chopped is required to adopt proper health and safety guidelines associated with the food. The competitive environment in London affects the price measures. The promotional activities are promoted in response to the local competition.
Key Indicators and Ratings
The key demand drivers’ influences the food market are enhanced foods, sustainability, augmented transparency and food packing design. Adding nutrition and proteins to the food has become trendy as people look for the food which is functional as well as enjoyable. Sustainability is one of the effective key demand drivers (De Mooij, 2018). It is based on the product and usage and is a significant concept to the average food consumer nowadays. The augmented transparency for the ingredients and the nutritional information creates an opportunity to build loyalty. The information can be attained through scanning QR codes and accessing information via social media. The food design is important as it reflects tastes and objectives. The packing is required to be bio gradeable and easy to recycle.
The London economy has witnessed a continuous change over the years. The food industry is the leading industry now. The country supports the establishment of new food companies and the development facilities. It detects and supports the development of food companies. The country supports e-businesses and the development for the future. London remains the best place to conduct business activities (Williams, Mummalaneni and Erramilli, 2015).
The food market is greatly influenced by the taxes like GST. It has resulted in the changes in the prices in the food outlets (Altshuler and Goodspeed, 2015). The government has familiarized strict guidelines for the food sellers to update customers about the ingredients contained. The fast-food companies are responsible for the health of the public linked to food in London. These companies have to follow the regulations imposed by the food standard agency. The food companies in London rely on migrant workers (Harris, 2015). These workers are supplied through the agencies. The food industry in London faces potentiality of the labor shortage.
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