Market Strategy for Frucor
COUNTRY BASED PROJECT
INT BUS 721
KUNAL HARIDASANI
1700105
Table of Contents
1. Executive Summary: 3
2. Introduction: 3
3. Company Background: 3
4. Internal Analysis 4
4.1. Porter’s Generic Business Strategies 4
4.2. Value Chain Analysis: 4
4.3.3 PRODUCT LIFE CYCLE: 5
5. EXTERNAL ANALYSIS 6
5.1Initial Country Screening: 6
5.2 THE ECONOMIST MODEL OF COUNTRY ANALYSIS: 7
5.3. Porter’s Five Force: 8
6. Recommendation 8
7. APPENDICES 10
8.REFERENCES: 16
1. Executive Summary:
This study explores expansion opportunities for FrucorBeverages ,Energy Drink“V” ,a New Zealand based company .The study focuses on possible problems faced by competitors, trade barriers, logistics, currency instability and preferable entry mode in potential target economies. Country screening technique shows two possible markets: India and Brazil. The macro-environment analysis, economist model, porters five force models, industry analysis trend identifies India as the better option to invest considering rapid growth of energy drink segment. Factors such as abundant source of raw materials, rapidly increasing consumer market, economic sustainability, constant market growth and limited entry barriers makes India as the best risk-return option.(Srinivasan, 2009).Based on the SWOT analysis of competitors, it was found that joint venture with Pepsi co India would be the preferred mode of entry for Frucor to introduce “V” in Indian market.
2. Introduction:
The purpose of this analysis is to look for possible expansion of” V” in rapidly growing non-alcoholic sector in developing economies. Indian market was found favourable to invest, the study looks at industry and economist model analysis of Indian and Brazilian market. It looks at opportunities of introducing V in the Indian market and looks at whether expanding in India would be a profitable decision or not. Study identifies and analyses the
INT BUS 721
KUNAL HARIDASANI
1700105
Table of Contents
1. Executive Summary: 3
2. Introduction: 3
3. Company Background: 3
4. Internal Analysis 4
4.1. Porter’s Generic Business Strategies 4
4.2. Value Chain Analysis: 4
4.3.3 PRODUCT LIFE CYCLE: 5
5. EXTERNAL ANALYSIS 6
5.1Initial Country Screening: 6
5.2 THE ECONOMIST MODEL OF COUNTRY ANALYSIS: 7
5.3. Porter’s Five Force: 8
6. Recommendation 8
7. APPENDICES 10
8.REFERENCES: 16
1. Executive Summary:
This study explores expansion opportunities for FrucorBeverages ,Energy Drink“V” ,a New Zealand based company .The study focuses on possible problems faced by competitors, trade barriers, logistics, currency instability and preferable entry mode in potential target economies. Country screening technique shows two possible markets: India and Brazil. The macro-environment analysis, economist model, porters five force models, industry analysis trend identifies India as the better option to invest considering rapid growth of energy drink segment. Factors such as abundant source of raw materials, rapidly increasing consumer market, economic sustainability, constant market growth and limited entry barriers makes India as the best risk-return option.(Srinivasan, 2009).Based on the SWOT analysis of competitors, it was found that joint venture with Pepsi co India would be the preferred mode of entry for Frucor to introduce “V” in Indian market.
2. Introduction:
The purpose of this analysis is to look for possible expansion of” V” in rapidly growing non-alcoholic sector in developing economies. Indian market was found favourable to invest, the study looks at industry and economist model analysis of Indian and Brazilian market. It looks at opportunities of introducing V in the Indian market and looks at whether expanding in India would be a profitable decision or not. Study identifies and analyses the
References: Business Monitor International. (2011). India Food & Drink Report Q2 2011 [ISSN 1749-2742]. London: Business Monitor International. Central Board of Excise and Customs Danone. (2008). DANONE sells Frucor to Suntory. Paris: Danone. Retrieved from http://media.corporate-ir.net/media_files/irol/95/95168/press/CP_Frucor_GB_oct_2008.pdf Euromonitor International Euromonitor International. (2011). Frucor Beverages Ltd - Soft Drinks – New Zealand. London: Euromonitor International. Euromonitor International Euromonitor International. (2011). Sports and Energy Drinks - India. London: Euromonitor International. EximGuru. (2011). Indian Customs Duty, Import Duty. Retrieved from http://www.eximguru.com/indian-customs-duty/2202-waters-including-mineral-waters-and.aspx Frucor Beverages Ltd Frucor vs goliath. (2010, January 1). Retrieved from http://marketingmag.co.nz/magazine/2009/11/frucor-vs-goliat Frucor set to build on annual reports of $250 million Global Impact Consulting. (2011). Foreign Investment >> India. Retrieved from http://globalimpact.com/21/3/1/hot_markets/india/foreign_investment.html Red Bull Two brics: India vs. brazil. (2010, January 7). Retrieved from http://www.newsneconomics.com/2010/01/brics-not-equal-and-not-necessarily.html Malviya, S Making sense of cross cultural communication: Power Distance Index. (2010). Retrieved from http://www.clearlycultural.com/geert-hofstede-cultural-dimensions/power-distance-index/ Srinivasan, L