Free Essay Example - Selecting a Product

Published: 2023-08-21
Free Essay Example - Selecting a Product
Essay type:  Critical analysis essays
Categories:  Globalization Branding Food Nutrition
Pages: 7
Wordcount: 1907 words
16 min read

Globalization can get described as the process through which companies develop an impact internationally such that they not only cater to the local market but also the international markets. To practically achieve a setup where a company gets recognized and functions internationally, it requires analyzing the global market and formulating various strategies to enable them to operate in an international environment. The write-up below gets to constitute product selection and multiple strategies that can get formulated to achieve the sustainable competitive advantage of the producing organization in an international environment.

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The product selected is a baby formula from Happy Family Organics Food Company. The company is currently located in the United States of America, precisely New-york City. The company got started to enable mothers to have an easy time finding healthy and natural baby food options in the market. At that time, baby foods were not easily accessible, and in case the available products were more of inorganic foodstuffs—the products set to do well in a community where people often prefer to live an organic lifestyle (Hitt, & Xu, 2016). The mission of the company is to change the trajectory of children’s health through nutrition.

Product Decisions

The baby formula gets designed to be an alternative to a mother's breastfeeding option. The product packages include happy baby organics formula designed for stage one and stage two. Stage one captures children within zero to twelve months, whereas stage two captures children from six to twelve months (Hitt, & Xu, 2016). One formula is modeled directly after breast milk, whereas the other formula is the sensitive formula.

A mother should consider purchasing the formula as it gets made with ingredients aimed at helping the baby eat nutritiously. The contents include essential vitamins that are available in breast milk, lactose, non-GMO ingredients, prebiotics, sustainable palm oil, and folic acid. The products help the baby in digestion and the building of healthy cells. The ingredients are certified by organizations such as RSPO, which proves that they are approved to be beneficial and not harmful to children. Furthermore, it entails a sensitive formula package designed to accommodate children with sensitive bellies. It gets accomplished by reducing the lactose content in the formula (Hitt, & Xu, 2016). Mothers all over the globe should also consider purchasing our products as they are approved by the Women, Infants, and Children Organization to be affordable to even low-income households.

The country I seek to invest in is Indonesia, an Asian country. The country is respective to foreign products, especially baby formula. It follows the reason that its population keeps increasing exponentially, and the mothers prefer formula feeding to breastfeeding. The strategy that will be adopted is an extension where franchises will be set up, offering the same type of product designed by Happy Family Organics food company (Hitt, & Xu, 2016). I expect to sell approximately seventy thousand goods by the end of the first year. The number stated in realistic seeing that the population demands a high supply of the products and are willing to purchase those that are tested and proven to be suitable for a child's growth and development.

Pricing Decisions

The pricing will be majorly wholesale prices. For the stage one formula, the price will be set at $145 for 595 grams, while the stage two formula will be priced at $119 for an equal 595 grams. The sensitive formula pack will be priced at $129 for 595 grams. Household income influences the decision to set the prices as above in Indonesia. The record shows that there is an increase in the availability of disposable income over the years. The channels, as adapted from the research, are also likely to accept the price offer. I expect to sell goods worth $10 million in revenue by the end of the first year.

Place Decisions

The targeted distribution channel includes; hypermarkets, supermarkets, pharmacies, E-commerce, hard discounter stores, and specialty stores. I aim to provide wholesale goods so that the retailers can select the retail price they prefer to sell the commodity. My priority may be markets and stores as they are easily accessible by consumers. The number of goods channeled to pharmacies will not lag as consumers tend to trust baby products that are approved and sold by pharmacies (Hitt, & Xu, 2016).

Promotion Objectives

My target audience will mainly be mothers and the youth; hence the target age is set from twenty-two to thirty-five years. My objectives for promotion will be increasing the demand for the product and informing the customers about the product. Informing the customers about the products aims at helping them understand clearly the product and its benefits. It will be done even before the product gets to be supplied in large bunches to the country (Hitt, & Xu, 2016). The first objective will be set into motion once the goods are in the community. It will help in increasing the sales of the new product.

Various modes of promotion techniques will be used. They include traditional and online advertising, personal selling, sales promotions, and direct marketing. Traditional advertising will involve the use of magazines and billboards. Magazines and Billboards as compared to radio and television as the rates required for radio and television advertising are high. Online advertising will include social media marketing. A team will get created to facilitate the proper marketing of the goods online. The team will get required to come up with practical ideas for implementation after vigorous sessions of brainstorming.

Another method that will be adopted will be the personal selling of the products. Its primary focus will be to cultivate good relationships with the store owners. As I have decided that the goods will be sold to wholesale buyers, I may not have the privilege of getting direct contact with the actual consumers. Alternatively, I will seek to build strong business bonds with the stores and supermarkets, saying that they will always try to buy goods from my store. With this, I create I'll have a chance to develop long-lasting partnerships.

Direct marketing will get done by targeting my audience with a message that they can well relate to. It is a small form of advertising that aims to reach small groups rather than a large number of people. Speaking at small forums aimed at educating the communities about the benefits of formula can be the best way of accomplishing this form of marketing. Another approach could be using platforms such as emails, postal mails, and social media messages.

Lastly, the use of sales promotion. Sales promotions will be beneficial in the accomplishment of the first objective of development. It will then be taken up as the company continues to grow so that the sales do not remain stagnant. I will involve the offering of discounts, coupons, loyalty programs. Incentives get aimed at capturing the minds of the customers, so they are influenced to purchase the formula immediately. It will act as a reminder to the customers about the goods I offer while informing new customers about my products.

My main message in the advertising of this product will be "The introduction of baby-friendly formula near all mothers that seeks to supply all the required nutrition needs of a child. It has been stated as very helpful by close to 30,000 mothers all over. They termed as an organically prepared product." This message will be available on every social media platform. Approximately the budget expenditure to facilitate the advertising process will be set at $ 10,000 (Hitt, & Xu, 2016).

Market Entry Strategy Analysis

My type of baby formula seeks to fill a market niche. Indonesia requires surplus baby formula owing to an increase in the number of mothers having babies. The mothers prefer using the formula as compared to breastfeeding. My product is organically prepared with every ingredient tailored towards offering nutrients acquired from breast milk. This option is also readily available to low-income households as it is cheap. It does not contain harmful substances such as mercury that may lead to the death of children when used (Hitt, & Xu, 2016). Many mothers have also tested this product, and all offer nothing but good testimonials.

The differentiation technique used in the marketing of the product will be its difference in both quality and price as compared to the competitors. The quality of the product will be high. The formula has no metals or materials that are likely to harm the baby. This will pick up as some formula products in the country are said to be containing high levels of mercury. On the issue of pricing, the price will be relatable to households with either low or high income.

The entry speed likely to be adopted is the gradual implementation. Gradual implementation caters to the assumption that the market for the product will rise gradually. Avoiding quick entry will enable me not to overproduce the goods since I will not be overestimating the demand for the product (Hitt, & Xu, 2016). Production of the right amount of assets will reduce the cost incurred in the capital. I will ensure that the process will be gradual but not slow to avoid losing my market to my competitors. Since my product is not highly perishable, a gradual entry into the market will be a good strategy.

The method of entry into the market that I prefer is exporting and licensing. Researchers have considered this approach to have lower risks than a joint venture or direct investment. The chances are considered low as the investments are also found to be small. The profits at the start may be considered to be less, but gradually they will rise. Exporting involves the marketing of the goods that are manufactured in one country into another country. Raw materials for producing the product are readily available in the United States; hence it would be easier to make in the states and export to Indonesia.

The advantage of considering this method's application is that it reduces the risks incurred by operating in a new country. It also will allow me to study the Indonesian market keenly before deciding to invest many resources into the project. On the other hand, licensing gets characterized by the process by which a firm in one country permits a company in another country to use its manufacturing, trademark, or skill. My company is set to be a franchise of the well-known and established Happy Family Organic Company; hence licensing will be beneficial.

The advantages of licensing include the fact that my capital will not end up being tied up in foreign operations. This substantially reduces my investment costs. The link to the parent company will also offer me a lowered marketing effort. As the parent company is already known out there applying their already existing marketing strategies will help e in saving fees needed for marketing. Also, I can either buy into a partnership or that the parent company collects a specific amount of royalties as we will agree to.

Concerning marketing, every resource will be utilized to ensure that the information reaches every single mother in Indonesia. Every store outlet will also have adequate information such that they prefer to stock my product over my competitors. All social media platforms in Indonesia will have the message of promotion widely spread before the onset of the operation. If the marketing strategies are well adopted and accomplished, the chances of good returns are highly feasible.

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