Market Entry Strategy Of The Cervena Venison Product
5.1 Strategic Planning
The international strategy is going to be used to export the Cervena Venison product. This is the most suitable choice because according to Hill et. al (2007) this strategy is about taking products from the domestic market and selling them in the international market with little customisation. This strategy suits because there will be minimal change, the core product stays the, but the, packaging, language and advertising has to change to meet Argentina’s standards and culture. This leads to a low cost structure because of the low pressure for local responsiveness.
• Export Cervena venison product to Argentina, using and agent to distribute the products to the retailers …show more content…
• Get involved in aspects of the community to help promote the product and give back to the community.
5.2 Entry modes
Exporting Cervena is the best entry mode to start with, using the indirect method. This involves using an agent located within the Argentina. This minimises the need to manage export documentation and procedures. The indirect method is the best option because Cervena has little too no experience in South America, thus the knowledge and experience of the agent to do with the, market, government and culture will be very helpful.
The benefit of using exporting over other entry modes are, exporting often avoids substantial cost of seating up operations in the destinations country and help achieve experience and location economies (Hill et. al, 2007). By producing and processing the Cervena products in the centralised location of NZ means that economies of scale can be realises and quality and production standards can be kept with a greater level of ease. Exporting can also be seen as a less risky option in an unproven …show more content…
Agents may not place as much importance on creating a high brand value as you would like them to. This can result in not attracting the desired target market and the premium for the high end product. Tariffs and taxed may also cause problems and lead to the product becoming to expensive for the desired market. Even with these disadvantages exporting with the indirect method is the best option.
5.3 Strategic Alliances
Cervena will have to look for an agent that is able to get the product into the market place. Coto is a possible agent/ retailer that could be used, it is a supermarket chain that has 95 stores in Argentina and has 17% market share and reaches 28% of the metro Buenos Aires area. They also have a large distribution centre and logistics units of 183 trucks. This would make an ideal business to work with as they could provide storage and distribution of the product to their stores, improving the reach of the product.
There may be potential to work with beef processors and distributers that already exist. This is a possible opportunity because theses companies already have established distribution systems that can easily be used for the venison products. An example of one of these companies is IBA group who are an importer, distributer and