Topics
international marketing, market entry, new market, new products
Review the activity below or download the PDF student worksheet
- Student Worksheet: Best International Market Entry Option
- Instructor Solutions (Members Only): Best International Market Entry Option = Solutions
Student Discussion Activity
After significant success in the local market, the company is looking to market to the more affluent markets in Asia markets. But the question is how they should do this? Which option would you recommend from the list below?
Their Choice of Market Entries
Full of Fun” fruit juices are a novel range of drinks primarily targeted at children aged 4 to 12 years of age. Their point of difference in this competitive market is the packaging they use – a mix of fun shapes and cartoon characters.
The parents like the products because its healthy for their kids and the kids like them because the bottle is essentially a toy.
The company believes that their product is fairly unique throughout the world and sees international expansion as a key part of their future. But they are uncertain about the best market entry approach. They have narrowed down their options to the following list:
| Market Entry Option |
For |
Against |
| Direct exporting with a local agent |
Full control over the product Marketing undertaken by agent |
Significant cost of exporting juice on a per unit basis |
| Direct exporting and setting up an international sales office |
Full control over product and marketing |
Fairly expensive |
| Licensing |
Low cost entry No exporting required |
Major loss of control |
Student Discussion Questions
- Which countries/regions in Asia do you think that this firm should initially target?
- Using the table above plus other ideas, how should the firm enter their first international markets? Why?
- Would you suggest that they target one country first, or should they look to enter several at one time? Which of the above options would allow them to enter multiple markets at once?