Marketing - Candy Bars
Autor: ceceangelina1982 • December 2, 2015 • Term Paper • 381 Words (2 Pages) • 870 Views
There are basically five approaches for entering an international market; usually the choices and risks are very product dependent. Assume you are a consultant specializing in global logistics and distribution. There are four clients that are planning to enter an international market (China) with different products. Using the following factors for your choices, pick any two clients and complete their matrix below with your recommendations and briefly describe the rationale behind your choices.
Entry Approach | Exporting, Licensing, Management contracting, Joint Venture, and Direct Investment. |
Shipping Methods | Truck, Rail, Water, Air |
Level of Risk | High, Medium, Low |
Client #1 Product: Candy Bars
Decisions to consider: | Your recommendation: | Your rationale: |
Entry Approach | Licensing, Management Contracting | Have proof that it is a licensed Company and need consumers to help contribute the product out to sell to customers. So require a legal contract between both parties. |
Shipping Methods | Air, Truck | Would only use air because of Climate change. Candy could melt or freeze depending on weather and where you shipping the product. Truck for deliveries to store. |
Level of product or market risk | Medium | Use labels and marketing on wrapper to keep selling. |
Level of financial risk | Low | It is air product and USPS overnight. You using a tracker to make sure it gets delivered to the customer. |
Factors that could affect distribution service levels | Transportation, Customer Service | Transportation can run late and never get out in time. Customer can have a bad candy bar. |
Client #2 Product: Golf Clubs
Decisions to consider: | Your recommendation: | Your rationale: |
Entry Approach | Joint Venture, Exporting | Export to distribute products to consumers and have multiple investors |
Shipping Methods | Truck, Rail, Air | All these methods work wonderfully. Except water. It can rust the Golf Clubs. |
Level of product or market risk | High | Use a shipping method and package product correctly to not damage or scratch. |
Level of financial risk | High | Has a money back guaranteed |
Factors that could affect distribution service levels | Cost | Can loss more money then what you receive in this line of business. |
Client #3 Product: Golf Balls
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