1. Introduction and Background
Tak Thai Company is a manufacturer of Thai fruit juice products. The company was established in 2009 in Thailand. Since then, Tak Thai became well –known by people in Thailand due to the good creative advertisements and the standard of products. As a result, the company’s profit has risen significantly. The company uses indirect distribution channel to sell the products that is selling through convenient stores and supermarkets. Tak Thai fruit juice not only launches the product into the domestic market, but it also expands into the foreign market. It has already expanded to China as the first foreign market, and it gets good feedback from Chinese customers. Therefore, the company would like to continue into the next new foreign market. In this case, Tak Thai has decided to choose South Korea.
2. Market Profile
2.1. Food and beverage consumption Trend in South Korea
According to Euromonitor International (2016) as cited in Agriculture and Agri - food Canada, in the year 2011, the average sales of naturally healthy food is around 1.9 million. In 2016, this average increased to 2.4 …show more content…
We have already considered that this form of market penetration is suitable with our company, and it would bring many advantages that make our company grow faster and make a greater profit in this new market. Joint venture offers access to existing distribution network, the knowledge of local market, and experiences from a local partner that is used for developing the product (Infoentrepreneurs, 2009). Furthermore, joint venture would also reduce the barrier in strict policy of foreign trade in South Korea. However, Tak Thai fruit juice has to create and draw up a legal document and other essential agreements with care by get some advice from expert to protect the interests, commercial secrets, and avoid any misunderstanding in the
Tak Thai Company is a manufacturer of Thai fruit juice products. The company was established in 2009 in Thailand. Since then, Tak Thai became well –known by people in Thailand due to the good creative advertisements and the standard of products. As a result, the company’s profit has risen significantly. The company uses indirect distribution channel to sell the products that is selling through convenient stores and supermarkets. Tak Thai fruit juice not only launches the product into the domestic market, but it also expands into the foreign market. It has already expanded to China as the first foreign market, and it gets good feedback from Chinese customers. Therefore, the company would like to continue into the next new foreign market. In this case, Tak Thai has decided to choose South Korea.
2. Market Profile
2.1. Food and beverage consumption Trend in South Korea
According to Euromonitor International (2016) as cited in Agriculture and Agri - food Canada, in the year 2011, the average sales of naturally healthy food is around 1.9 million. In 2016, this average increased to 2.4 …show more content…
We have already considered that this form of market penetration is suitable with our company, and it would bring many advantages that make our company grow faster and make a greater profit in this new market. Joint venture offers access to existing distribution network, the knowledge of local market, and experiences from a local partner that is used for developing the product (Infoentrepreneurs, 2009). Furthermore, joint venture would also reduce the barrier in strict policy of foreign trade in South Korea. However, Tak Thai fruit juice has to create and draw up a legal document and other essential agreements with care by get some advice from expert to protect the interests, commercial secrets, and avoid any misunderstanding in the