Product Used: Almond Butter Market Analysis Size of host market Estimate the tot
ID: 386986 • Letter: P
Question
Product Used: Almond Butter
Market Analysis
Size of host market
Estimate the total potential market
Competitive factors
Market access and entry
Distribution channels
Infrastructure
Financial Analysis
Pricing structure for your good, service, technology
Projected sales for three years out
Give projections in both U.S. dollars and in the local currency, based on the current exchange rates. (There are free currency converters available on the internet.)
Recommendation: Insert a chart for projected sales.
Entry Modes
Consider the following list of entry modes for introducing your product in the selected country. For each possible option, identify the advantages and disadvantages. Recommend the most appropriate entry mode and explain your reasons for your recommendation.
Exporting
Management contract
Licensing
Franchising
Contract manufacturing
Joint venture
Explanation / Answer
Product = Almond Butter, Host Market = India
Market Analysis:
Financial Analysis:
Pricing Structure: India is a very price sensitive country. The prices of goodwill depend upon the target market segment as well as the existing competition. Some of the factors that will affect the pricing of goods are as follows:
If the company acquires even 10,000,000 people who buy their product repeatedly for 150INR then the monthly revenue will be 1,500,000,000 INR which in USD will be equal to 20,830,440.
3 years projection will be 74,98,95,840USD given everything runs smoothly and excluding minor losses. It is to be noted that this is the sale amount and not the net profit for three years.
Modes of entry:
Exporting: Exporting to India will be very difficult because the shipping cost will be very high and the customer satisfaction will nt be in the hand of company directlty. Moreover, India has very strict regulations regarding import of food products.
Management Contract: This is a good way to enter India but the company will not be able to directly oversee the operations of the host country.
Licensing: It is also a good option but the company will have very less control over the quality of goods manufactured and this option is also an expensive option.
Franchising: Indians are very less likely to take a franchise of brand which is not very popular. Franchising in India depends upon a lot of factors like brand value, the area of operations, type of products served etc.
Joint venture: This is the most prefered way to enter into Indian Market because a company will get the expertise of a local management while retaining most of the control in the company. The Indian government also support this mode of entry as it helps them to create jobs for its citizens.
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