Quetion1: Its 2015 and you are the International Marketing Manager for Cape Cod
ID: 357988 • Letter: Q
Question
Quetion1: Its 2015 and you are the International Marketing Manager for Cape Cod Potato Chips, which is a local potato chip and popcorn producer located in Massachusetts. You see a tremendous opportunity to sell snacks to 1.3 billion Chines people, if only 1% of the population spends $10 per year on Cape Cod Chips, you will generate $130 million dollars of additional annual revenue. What international strategy or strategies (export, direct investment, etc) will you utilize to supply and sell snacks to the Chinese Markets? (3 Points? Give 3-detailed answers why you chose this strategy Question 2: Read the article, The Snack-Food Frontier, Chinese to Get a Toste Of Cheese-Less Cheetos. From reading the article, explain 2-reasons (2 points) why China would be an attractive foreign market for a U.S snack food company? China GeExplanation / Answer
1.
As an International marketing manager, I will opt to go with foreign direct investment as strategy to enter the country of China and set-up wholly owned subsidiary in the country. My decision is based upon three specific reasons that are as follows.
A.
The market size of China is huge and the product falls under the food category of the FMCG requirements. So, it requires complete control of the business operations so that the company can highlight the key specific of the product and attract consumers. Hence, the control offered by the FDI, will give flexibility to the company to bring expansion strategies into the market.
B.
There is a need to build a dedicated distribution channels and network with attractive incentives to the channel partners. It can be done effectively when the company can do it as per their own business principles and strategic vision. Here, the company can take some time to develop the network where the company can reach out to the consumers, but it will give long lasting benefits and learning curve to the company. In a hugely profitable market with such a large size of the target audience, the company should go with is mode of entry in China.
C.
The market offers a potential to get annual revenue of $130 million every year. All these revenues and subsequent profit can be owned by the company if it enters the Chinese market using the wholly owned subsidiary. Besides, there are other market in the vicinity such as India that can also be catered from the setup established in China.
Though this strategy will attract risk associated with the capital investment, but it will also pay the reward, control and market share in this overseas market.
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