Introduction Innocent is a well-established smoothie and health food company in its home market of the UK and has had success in moving into various markets in the European Union. With the added partnership with global brand Coca-Cola, it could be said that Innocent is in prime position to begin its expansion into new markets globally. This report will note the benefits and potential risks of entering the chosen market of Japan based on research and theoretical analysis. Japan was first chosen due to initial research showing that it was one of the most health conscious countries in the world, with the lowest obesity rates. Further investigation showed their links with Coca Cola, and a gap in the market for ‘off the shelf smoothies’, despite the existing popularity of health drinks and demand for commuter friendly food. However entering into a market as different as Japan is not without its risks, and must be ensured to be successful, with the help of market research, marketing, and operational theories, lest the new venture become a very costly mistake. Target Consumer Market When moving to a market with a consumer culture so different from the home market, a company must be careful to analyse its target audience in detail, to avoid and costly cultural faux pas. To get a good feel for the Japanese culture, a good place to start would be the experts in the cultural studies field. Hofstede’s cultural dimensions, created during his in depth GLOBE study of the cultures of the world, gives a good comparison between the priority differences between Japanese and English culture. A detailed analysis of the cultural differences will be given in the ‘Marketing Issues’ section of the report. As for specific cultural information, the most... ... middle of paper ... ...n with many signs written like this (Annual of Display & Commercial Space Designs in Japan 1984., 1983). A direct translation of ‘Innocent’ to Japanese means ‘pure hearted’ (Junsui). As this has no negative connotations, it is the best translation of the word Innocent and therefore would good to use as the Japanese name. This will retain brand image, and work toward creating globally recognised brand, with the change in name not having a detrimental effect, to use the example of Lays/Walkers in the UK and abroad. English is the language of business in Japan and therefore it should be easy to get correct translation using cultural experts. Assuming success in the original market entry, there is much potential for development, including bringing in more of Innocent’s product range, and expansion to the rest of Japan, which could be the gateway to the rest of Asia.
Very few fast food chains have the distinct choice of selling something with a health promotion while on the other hand, being visited by countless thousands of people is a clear sign that society has become more conscious about their health and well-being. Smoothie King promotes in making living a healthier more active lifestyle, delicious and nutritious. Whether trying to lose a few pounds, have energy at the end of the day or simply feel better about your diet, each and every smoothie made is blended for a specific purpose. Tropical Smoothie Cafe’s menu boasts bold, flavorful food and smoothies with a healthy appeal, all made to order from the freshest ingredients. Smoothie King and Tropical Smoothie cater to heathy lifestyles and eating better; however, both have various views based on franchise image, the menu, and customer appeal. I happen to love fresh smoothies and I have become very familiar with the “giants” in the smoothie industry, Smoothie King and Tropical Smoothie.
As stated in the case, “the market for energy drinks was growing; between 2010 and 2012, the market for energy drinks had grown by 40%. It was estimated to be $8.5 billion in the United States in 2013 [and] forecasts projected that figure to reach $13.5 billion by 2018” (pg 5). However, much of this market’s revenue -- 85% in fact -- is dominated by five major brands, while the remaining 15% is split between approximately 30 regional and national companies. (pg. 5). With this saturated market, it might not be best for Crescent Pure to enter as a completely new product to the industry, as there is the possibility that it will be squeezed out of the profit shares by more established brands -- especially if it is not properly secure in its identity. In addition, while the market for energy drinks appeared to be growing at an exponential rate compared to the market for sports drinks -- which increased only 9% in five years and would be at approximately 60% of the rate for energy drinks in 2017 (pg 6) -- the consumers appeared to be wary of partaking in the market for several reasons, which would potentially harm the reach of Crescent Pure. These concerns included rising news reports discussing the safety of energy drinks (pg. 5). Taking into consideration the data provided in the case that concerns reasonings of why consumers choose specific drinks over others, there
From the animated mega city of Tokyo, to the serene zen gardens with rustic ponds home to the koi fish, Japan has a unique past, present, and future. The alcove ornament samurai houses called, shoin-zukuri are a symbol of the struggling past that Japan escaped. These samurai houses were training centers long ago of judo, sumo, and other martial arts. Lush trees envelope houses, and the religion Shintoism was developed back in 500 A.D. Paintings and drawings capture the grace and beauty the landscape portrays. The Japanese dragons reveal the legends held within themselves, many are associated with rainfall and the ability to reach peace. Seeking farther inland you witness the largest city in the world, Tokyo. Cars, buses, subway systems, taxis, and bicycles are buzzing through every street, going to and from work, quickly advancing technology.
Japan has historically taken ideas from the United States on its business, merchandise, or other corporate sectors to improve within its political borders. These practices have become massive cultural and economic movements in Japan. Interestingly, Japan takes ideas and molds them into Japanese culture and style; therefore, these products are “Japanized.” To further elaborate on this statement, Japan has succeeded in its businesses and corporations such as the automobile industries around the world (for example, the NUMMI plant production transcended those of American automobile productions due to an enhanced Japanese corporate culture). Albeit many Japanese industries have roots in the United States, they have expanded globally. The music
The combined factors surrounding both the Japanese diet and the typical American diet are reflected in the percentage of overweight people in each country; approximately 65% of people are overweight in the United States, while only 25% of Japan’s population is overweightii. These percentages are compiled from Body Mass Index (BMI) data, which is a scientifically formulated relation between a person’s weight and height that helps to determine a healthy weight range for a person to maintain. A person is classified as overweigh...
To confirm their belief, the authors collected data by means of free listing, interviews, or simply practicing naturalistic observations in several Japanese cities including Mizusawa, Morioka, and Tokyo. The authors found that Japan had long had its own fast food culture as long ago as 1899, when a Japanese food chain, Yosh...
There are three main subcultures in Japan. These are the Cuties, the Gothic Lolitas and the Ganguro girls. The cuties are young adults dressed in childish, cute clothing in light pastel colours with lace. They tend to act in a very innocent and childlike manner which is encouraged as Japan is a consumer driven society and the products on sale; whether it be toys or magazines are mostly targeted towards the cute sector. Paraphrasing author...
Sakarya, S., Eckman, M. & Hyllegard, K. H. (2007). Market Selection for International Expansion - Assessing Opportunities in Emerging Markets. International Marketing Review, 24(2), 208-238.
Firms exist with the purpose of create and deliver economic value (Bensaco et al 2010, p. 365); therefore, business that create better economic value than its competitors will attain an advantage position in market place. Companies might try to improve its sales (profit) through domestic expansion, product diversification or by internationalisation; this report will focus on the reasons of espressamente Illy to expand internationally; additionally, its sources of competitive advantage and, the analysis of three markets in which company want to participate.
Investing or venturing into the international market involves critical analysis of the internal and external environment in which the company operates. Usually, a company will decide to venture internationally due to a saturated market or fierce competition in the current country of operation. The demand for a company’s products may have diminished as a result of an economic crisis thus the company will target a foreign market to sustain its sales. In other words, the firms expand internationally to seek new customers for its products. For example, the current Euro zone crisis led to low demand in Europe and many companies extended their businesses to emerging markets where demand was high. A company may also venture in the international market to enhance the cost-effectiveness of its operations especially for manufacturing companies that will benefit from low costs of production in developing world. Global expansion is a long term project as it involves demanding logistics to be successful. Thorough research must be undertaken to ensure that the expansion will create value for share...
...enture into overseas market comes with expectations as well as uncertainties due to unfamiliarity. Charles and Keith, the fashion retailer, has to understand clearly that what appeals in one market might not be accepted in the others and this is almost the same for all industries. Thus, a thorough research on cultural background has to be done before entering an unfamiliar ground.
Lee, M. S., Roberts, R. R., & Kraynak, J. (2008). Cross-cultural selling for dummies. Hoboken: For Dummies.
An examination of Japanese culture, and where it stands on Kluckholn and Strodbeck’s Value Orientation, Hall’s cultural dimensions, and what America needs to know in order to communicate properly with Japan.
Japan is a fascinating multifaceted culture, on one hand it is filled with many traditions dating back thousands of years and yet is a society with continually changing fads,