International market strategy for Organeat

Résumé du document

The consumption of organic products is primarily to engage in a process conducive towards farming, which is humane, sustainable and inclusive. It is a way to rule in favor of the emergence of a new society, respecting the man, his environment and the fate of future generations.

These are some words that reflect the policy of Organeat, a small retailer established five years ago by a couple who took advantage of a niche opportunity to develop the organic food market. Thus, today, the company lay on a large range of fresh, refrigerated, sweet and savory high quality organic food and also a range of merchandise including handy kitchen-accessories. Organeat is adapting to consumer demand and offers affordable products. Biology market has been booming for several years. Europe is the most active continent and is at the heart of the organic market with almost half of the world market, about 45%.

Organeat is located in Northern Ireland with three retail store. It wants to take advantage of the emerging organic market to grow internationally. After 5 years in the UK organic food market, the owners believe that the company has built a stable enough reputation and strong brand to reach health-conscious consumers overseas. However, they are not sure of the viability of a long-term project, and the appropriate strategy to get a place abroad among the competition.

Extraits

[...] Many controls to reduce the risk of fraud. A product with an ethical (environmental, revitalization of rural areas . Threats Poor consumer's knowledge about what an organic product is diet or slimming . only half French consider themselves well informed about the farming products. Increased competition with the arrival of MDD and major groups (Danone). Supplying costs higher than for conventional agriculture Strengths Weaknesses Higher price. (between 30% and 60% more expensive depending on the product) The advertising budgets for organic are still too low. [...]

[...] Indeed, they are both related to health, well-being of the body. Then, they may happen to equate organic products and local products. In this case, it is the level of quality of taste sensory products that misled Internal competition: there are many organic producers, almost 25,000. They all must be as diversified as possible. In addition, there is now the arrival of big brands on the market who would like a "piece of the pie". Not to mention the strong foreign competition, this represents 20% of the French import organic market in. [...]

[...] This observation is based mainly on political, economic, social, technological and environmental factors. The ultimate goal of this analysis is to create a strategy that will benefit as many of these external factors as possible in favour of the company Headings Socio-cultural Opportunities People are looking for a good price quality ratio. People need healthy products Campaign to encourage people to eat more fruit and vegetables 5 fruits et legumes par jours : French slogan Frische ist Leben» : German slogan Threats/ constraints Economic Growing market Economic decreases. [...]

[...] It has been chosen to enter France because this country shows that people are more and more interested in organic products, as a result demand is growing and is now more important than what is being produced. This is also why supermarkets and hypermarkets are increasingly established in this very promising market. Franchising is the entry mode selected for the International Development of Organeat in France. This process will help Organeat to grow quickly whilst increasing benefits and becoming well known without spending a lot of money. Franchising seems to be a realistic entry mode for this small to medium enterprise as it requires as little risk as possible. [...]

[...] I'm going to explain these three methods with their benefits and their disadvantages for a small SME retailer 2.2 Joint venture Firstly, Joint ventures have become an important aspect of international retail activity. It involves one local and one incoming partner to enter a new market (Alexander & Doherty, 2007). This formula allows exporters to access the target market, technology, know-how and capital to business partners. Each added value that enables all to benefit from the joint venture. Joint venture is a common practice when market access is difficult politically, culturally or technically. Indeed, some retailers may consider joint ventures preferable in markets where they have fewer cultural reference points. [...]