Export Plan: Frozen Food Bangkok

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  • Topic: Bangkok, Thailand, Food industry
  • Pages : 30 (9591 words )
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  • Published : December 7, 2012
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Yana Lipcheva, 10004645
Alessandra Carrera, 12063460
Class:3D
Lecturer: mr. Meulens
GMM-5, 2012

The Hague University of Applied Science
International Business and Management Studies
The Hague University of Applied Science
International Business and Management Studies

11/15/2012

Contents
Executive Summary3
Introduction4
Background5
PESTEL Analysis6
Political Factors6
Economic factors6
Social Factors7
Technological factors7
Environmental factors8
Legal factors8
Internal Analysis10
External Analysis11
Market analysis for Bangkok, Thailand12
Industry Analysis13
SFAS and TOWS14
Entry Strategy and Distribution16
Export Marketing Mix17
Segmentation17
a.Demographic Segmentation17
b.Geographic segmentation17
c.Psychographic segmentation17
d.Behavioral Segmentation17
Products17
Target Group18
Positioning18
Financial Plan19
1-3 year forecast19
Price:19
Costs19
Sales19
Expats19
Pricing Strategy21
Conclusion23
Recommendations24
Bibliography25

Executive Summary
The following export plan revolves around the Dutch based company EFT, a frozen vegetables exporter whose biggest clients are Hong Kong, Canada and Singapore. Our objective is to expand to another Asiatic city which is Bangkok. This city in one of the biggest economically speaking, therefore harboring a very big attraction for the company. In our macro analysis of Bangkok we discovered that Political unrest in Thailand does not pose a threat to foreign companies as long as they stay clear of it, and the economic growth contra rests this setback. Bangkok is well known as the center of economic growth in Thailand but doesn’t have a very strong currency against the euro, which means a low exchange rate which is beneficial for the company. Also, the interest rate is being kept low as well as inflation, which are signs of welcome to foreign investment; another positive trait for us is that Thailand is part of the World Trade Organization (as is Holland) which gives us guaranty that our exports won’t suffer and that tariffs will be respected though either way Thailand is very lenient when it comes to tariffs. In the social factors we found that most people are Thai and the population is mostly Buddhist, which poses a great benefit since they don’t have specific dietary restrictions (Islam has many and therefore would need certificates for halaal food that in this case we won’t need). As far as technology goes, Bangkok has a reputation of a “poorly designed city” (IIED). The infrastructure is a major issue there, but since our distribution will be carried out directly by our retailers, this will not represent larger costs to us. A very important macro factor is the climate and environmental disasters, since Thailand is affected by the Asian Monsoon system floods are a definite threat to infrastructure and domestic agriculture. The company finds itself in a very good position financially, with very skilled employees (a very experienced managing director and 4 other employees), a very strong partnership with suppliers which will allow us to carry the new business proposition smoothly and high quality products. On the other hand, there is no separate purchase department which is one of our recommendations since not having one could create delays as we expand our markets. We think the structure of the company should change to be as follows: one commercial department to handle the accounts of the clients separately, one logistics and purchasing department and a finance and accounting department. An opportunity we have found is the growth of the middle class, which leads us to our target group consisting of expats and young middle class working people. They are both business people who dispose of little time to buy quality food or fresh food for that matter, since they don’t have time available to go to local markets. Therefore our product provides the...
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