Read the article, The Snack-Food Fontier ; Chinese to Get a Taste Of Cheese-less

Question

Read the article, The Snack-Food Fontier ; Chinese to Get a Taste Of Cheese-less cheetos. From reading the barticle, explain 2-reason(2points) why China would be an attractive foreingn market for a U.S. snack food company ?

please help me the 2 pictures that you see above are the article. thank you

COMPANY NEWS: The Snack-Food Frontier; Chinese to Get a Taste Of Cheese- Less Cheetos By GLENN COLLINS Published: September 02, 1994 At last, Cheetos, the snack, has come to China, the country. The catch? They don't taste like Cheetos. The maker of Cheetos, Pepsico, announced a $1 million joint venture yesterday to produce the little crispy-tasting cheese puffs in Guangdong province, where the per-capita income is among the highest in China. It marks the first time a major snack-food brand will be produced in China for Chinese tastes, Pepsico said. But these Cheetos don't taste like cheese, which is hardly a mainstay of the Chinese diet. "We are offering two flavors, Savory American Cream and Zesty Japanese Steak," Jeffrey Goh, general manager of Pepsico Foods International, said in a telephone interview from the city of Guangzhou In focus groups for more than 1,000 people in Guangzhou, Shanghai and Beijing, the cheese-ish taste of American Cheetos did not, as they say, test well. Pepsico had to try more than 600 flavors, ranging from Roasted Cuttlefish to Sweet Carmel, before settling on Savory American Cream ('a buttered popcom flavor, "Mr. Goh said) and Zesty Japanese Steak ("a teriyaki-type taste"). But is a Cheeto a Cheeto if it doesn't taste like cheese? "It's still crispy, it has a Cheeto shape and it's fun to eat, so it's a Cheeto," Mr. Goh said.

Explanation / Answer

The two reasons why China would be an attractive foreign market for a US snack food company is due to:-

1. A huge population with high per capita income: this would mean that the business could have great returns as well as the lesser risk of entering a new market due to the reason that even if the products are priced considerably low, the increase in sales will make up for the fact.

2. Steadily growing economy: the Chinese economy is slowly but steadily growing to a point where it would rival that of the best countries in the world and therefore, for this reason, presents an opportunity for any company to set up base there and introduce their product in the market.

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