CASE STUDY

Case Study

Case Study

Task 1

Identify the initial THREE countries in the world that you believe Chunkies Cornflake Company should enter first, and fully justify in detail, your reason for selecting these countries.

Entering a new market is a complex decision which must be given focus and attention. With the goal of establishing a business that would be recognized and patronized by consumers, more and more entrepreneurs are trying to enter the market swiftly. There are different motivations for market entry. One of the motivational factors to enter an international market is the chance given by this investment to make the company become more competitive among its rivals. It can be said that one's an industry becomes a multinational company, there is an implication that such company has been able to establish a competitive position in the marketplace not only in the local but most especially to the global arena. Marketing entry is also capable in making a certain business enhance and expand its business portfolio. In line with Chunkies Cornflake Company, the company enters an international market in order to establish a company that would be powerful not only in Europe but in different continents as well.

The Euro will exist alongside the old national currencies during a transition period from 1 January 1999 to 1 January 2002. This transition to the Euro currency will involve changing budgetary, accounting, pricing, costing, and fiscal systems in companies, as well as the simultaneous handling of parallel currencies and conversion of legacy data. During the first quarter of 1999, the Euro currency has demonstrated stability. However, this early stability needs to be observed over a longer period before conclusions can be drawn on the currency's long-term viability.

This change required business strategies, marketing strategies, systems, and process changes within the Company's European region; such are under way with certain markets already Euro compliant.

Management expects to complete financial, operational, and manufacturing system conversions during 2001. Although Management currently believes that Chunkies Cornflake Company will be able to accommodate any required changes in its operations, there can be no assurance that CCC, its customers, suppliers, financial service providers, or government agencies will meet all the Euro currency requirements on a timely basis. Such failure to complete the necessary work could result in material financial risk.

Task 2

Define, and critically evaluate, the specific Market Entry strategy that you would advise Chunkies Cornflake Company to use and apply individually, to gain entry, into each of the three selected countries.

The pricing of goods performs a strategic role in Chunkies Cornflake Company business functions as a consequence of deregulation, intense global competition, slow growth, and the opportunity to strengthen market position. Price impacts upon financial performance and has an important influence on buyers' perceptions and positioning of the brand.

The role of price in Chunkies Cornflake Company marketing strategy (Figure 3) depends mainly on the target market, the product and the distribution strategies. Strategic choices about products and distribution often set important guidelines for both price and promotion ...