Bombay Sweets going global PDF

Preview

Summary

global...

Description

Contents Company..........................................................................................................................................3 Ranges of Products..........................................................................................................................3 i. Chips........................................................................................................................................3 ii. Confectionary.........................................................................................................................3 iii. Ethnic Snakcs/ Namkeens....................................................................................................3 iv. Frozen food............................................................................................................................3 v. Powder drinks........................................................................................................................3 Product:............................................................................................................................................3 Changes of the product in terms of Packaging, Color and name.....................................................4 ‘Alooz’ chips component model......................................................................................................4 a) b)

Core component:.............................................................................................................5 Packaging component:....................................................................................................5

History of Turkey.............................................................................................................................6 Diplomatic and Trade relationships between Bangladesh and Turkey............................................6 Turkey- Through the lens of Hofstede.............................................................................................6 Marketing implication of Hofstede Model......................................................................................8 SWOT Analysis...............................................................................................................................9 PEST Analysis...............................................................................................................................10 Target customer:.............................................................................................................................11 Eating Habits:................................................................................................................................11 Why Turkish People?.....................................................................................................................12 Porter’s Five Forces.......................................................................................................................12 Bargaining power of suppliers....................................................................................................13 Bargaining power of Buyers.......................................................................................................14 Threat of substitutes....................................................................................................................15 Threat of new entrants................................................................................................................16 Rivalry among existing firms......................................................................................................16 Why Still Chips Market?...............................................................................................................18 Strategies that Alooz Chips will Adopt..........................................................................................18 References......................................................................................................................................20

Company The product that we are taking is from the company Bombay Sweets & Co., Ltd. (BSCL).It's a name associated with consumers for snack food for more than 5 decades in Bangladesh and abroad. It made its modest start in the beginning of way back in 1948. Gradually it increased its popularity amongst the consumers in meeting their demands.

Ranges of Products The full line of quality snacks currently consists of more than twenty different items including potato, corn and cereal based products. All are available in a variety of shapes, sizes and flavors. Range of products the company has: The ranges of products Bombay Sweets & co. ltd. has are:

i. Chips a. Alooz, b.Potato Crackers, c. Mr. Twist, d. Cheese Ball, e. Slanty, f. Bombay Sticks,

e. Ring

Chips, f. Potato Sticks and g. Korntos

ii. Confectionary a. LachchaSewai

iii. Ethnic Snakcs/ Namkeens a. Bombay mix, b. Hot-spicy chanachur, c. Dalmoth

iv. Frozen food a. Spring roll and samosa pastry, b. vegetable samosa, c. Frozen roti chapati, d. Frozen aloo puri, e. Frozen dal puri. v. Powder drinks. a. Bombay Faluda

Product: Alooz Chips

2

Type: Potato chips Halal: 100% Ingredients: Potato, Edible vegetable oil, Spices and condiments. Nutrition: Energy: Kcl 554, Protein: g 7, Carbohydrate: g 52.7, Fat: g 350 (per 100 gm). Net weight: 25 Gm MRP: 15 BDT BSTI: BDS 1556:2004

Changes of the product in terms of Packaging, Color and name Currently we are taking only the Alooz Spanish Tomato Flavored chips to Istanbul. After seeing how it does in the Turkish market, we will gradually take other flavors. However, in order to adapt with the Turkish tastes and preferences, we will modify the product a little bit.We are basically following a multidomestic strategy. Initally, we will export the chips from Bangladesh to Turkey.

The name of “Alooz Spanish Tomato Flavor” chips will be changed to “Alooz BBQ IskenderDomates” chips. Since the Turkish people have a liking towards grilled meats and barbecued kebabs, so we have decided to modify the “Spanish Tomato’ flavor to “BBQ Tomato.” IskenderKebap is a very popular meat dish in Turkey and “domates” means tomato. So, to the Turkish consumers, we would present barbeque tomato flavored chips which has a combination of the tastes of IskenderKebap and tomatoes. We would change the color of packaging to brownish red which will complement the newly created flavor. The colors brown for the BBQ and red for the tomato.

There will also be some packaging modifications. The name “Alooz BBQ IskenderDomates” will be printed in the Turkish language. Also the nutritional information and ingredients would also be typed in both Turkish and English for the Turkish consumers.

3

‘Alooz’ chips component model By using the Product Component model, we are analyzing the impact of cultural, physical and mandatory factors that affect a market acceptance of a product. This model focuses on three components: a) Core component b) Packaging component c) Support service component

a) Core component: The Physical product will be altered according to Turkish society and their preferences. The newly added Barbeque tomato flavored chips will be consumed as a light to medium meal for the Turkish people. The chips containing heavy flavor will lead it towards a slightly heavy snack unlike that of in Bangladesh. We will add extra cheese and tomato ketchup inside the packet of the chips.

b) Packaging component: a. Brand Name: Alooz BBQ IskenderDomates. b. Price: 10 Turkish Lira. c. Quality: No breakage of chips and each will be cut into uniform pieces. Nitrogen filled packets/cans for keeping the salt, seasoning, moisture, color, and overall flavor consistent. d. Package: Both packed and canned form. The packets and cans will contain 30 grams of chips. e. Styling: Styling consists of the characteristics given below: i. Nutritional info will be given clearly both in Turkish and English language. 4

ii. Green circle will be visible properly symbolizing the chips is 100% Halal. iii. The flags of both Bangladesh and Turkey will be noticeable in the back of the packet and can. iv. The color of the packets and cans will be Brownish Red resembling the flavors (Barbeque and tomato flavors).

History of Turkey Turkey was created in 1923 from the Turkish remnants of the Ottoman Empire. Soon after the country instituted secular laws to replace traditional religious fiats. In 1945 Turkey joined the UN and in 1952 it became a member of NATO.

Diplomatic and Trade relationships between Bangladesh and Turkey The diplomatic relationship between the two countries became complex when Bangladesh denounced Turkey's consecutive requests to free several Bangladeshi Jamaat-e-Islami leaders in 2016. Due to execution of the Jamaat leader Motiur Rahman Nizami, Turkey withdrew its ambassador to Bangladesh. Before this incident the relation among the countries was normal. However later Turkey reinstated its ambassador to Dhaka. The trade and commerce relations and people to people relations between the two countries largely remain unaffected. They are as before and also improving. In trade and investment Bangladesh and Turkey are very good partners. The main trades take place in the RMG industry and the Shipping industry. 1.

The bilateral trade between the two countries is worth more than $1 billion.

2.

Bangladesh and Turkey have signed a joint protocol on trade and investment in 2012.

Turkey- Through the lens of Hofstede If we explore Turkey’s culture through Hofstede’s four dimensions, we can get a good overview of the deep drivers of Turkish culture related to other world culture.

5

4 Dimensions 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

85% 66% 45% 37%

Power Distance

Individualism

Masculinity Uncertainty Avoidance

4 Dimensions

1. Power Distance: The dimension deals with the fact that all individuals in the society are not equal- it expresses the attitude of the culture towards these inequalities amongst us. Turkey scores high on this dimension (score of 66) which means that the following characterizes the Turkish style: Dependent, hierarchical, superiors often inaccessible and the ideal boss is a father figure. Power is centralized and managers rely on their bosses and on rules. Same structure is observed in the family unit where the father is a kind of patriarch to whom other submit. 2. Individualism: The fundamental issues addressed by this dimension is the degree of interdependence a society maintains among its members. It has to do with whether peoples’ self-image is defined in terms of “ME” or “WE”. Turkey with a score of 37 is a collectivistic society. This means that “WE” is important, people belong to in-groups (families, clan or organizations) who look after each other in exchange for loyalty. Communication is indirect and the harmony of the group has to be maintained, open conflicts are avoided. The relationships have a moral base and always have priority over a task fulfillment. Time must be invested initially to establish a relationship of trust. Nepotism may be found more often. Feedback is always indirect, also in the business environment.

3. Masculinity: A high score (Masculine) on this dimension indicates that the society will be driven by competition, achievement and success, with success being defined by the winner/best in the field- a value system that starts in school and continues throughout organizational behavior.

6

A low score (Feminine) on the dimension means that the dominant value in the society are caring for others and quality of life. A feminine society is one where quality of life is the sign of success and standing out from the crowd is not admirable. The fundamental issues here in what motivates people wanting to be the best (Masculine) or, liking what you do (Feminine) Turkey scores 45 and on the feminine side of the scale. This means that the softer aspects of culture such as leveling with others, consensus, sympathy for the underdog are valued and encouraged. Conflicts are avoided Turkey scores 45 and is on the feminine side of the scale. This means that the softer aspects of culture such as leveling with others, consensus, sympathy for the underdog are valued and encouraged. Conflicts are avoided in private and work life and consensus at the end is important. Leisure time is important for Turks, it is the time when the whole family, clan and friends come together to enjoy life 4. Uncertainty avoidance:The dimension Uncertainty Avoidance has to do with the way

that a society deals with the fact that the future can never be known. This ambiguity brings with it anxiety and different cultures have learnt to deal with this anxiety in different ways. Turkey scores 85 on this dimension and thus there is a huge need for laws and rules. In order to minimize anxiety, people make use of a lot of rituals. For foreigners they might seem religious, with the many references to “Allah”, but often they are just traditional social patterns, used in specific situations to ease tension.

Marketing implication of Hofstede Model As we are doing market development of a product, so our analysis will reflect the possible aspects of benefits from the market. Observing the Hofstede model it is clear that Turkish people are collectivistic and like to highly avoid uncertainty. They would therefore want a high quality product that comes from a known brand. So it would be a bit difficult to gain the trust of consumers that Alooz is a quality brand from Bangladesh. However, we believe our product Alooz chips will get a favorable market place in Turkey. We will be able to convince our Turkish customers through effective communication that ours is a quality brand and to give us a chance. Our target market will relate to our communication that would appeal to their sense of community and brotherhood.

7

Hofstede model presents the internal cultural view of Turkey (in the diagram). It is represents the ratio of Turkish people under each dimension and forecasts the potential change of life style in Turkey.

What will be the packaging size, price, taste, flavor, all can be decided by the Hofstede’s model. This cultural dimension analysis model reflects the primary condition of the Turkish market for our launching of Alooz chips.

SWOT Analysis Strengths 

Presence of barbeque tomato flavor increases its acceptability as barbeque tomato flavor is more popular among Turkish people.



Reasonable pricing ensures spontaneous purchase.



High quality product and attractive long-lasting packaging makes it more attractive for target customers.

Weaknesses 

Limited global presence and availability compared to leading snack brands.



Health conscious people may avoid due to fat and cholesterol in potato chips.

Opportunities 

High percentage of young population in Turkey provides high market opportunity for Alooz chips because young people like to spend more in snacks items.

8



Recent trend to eat flavored potato crisps and a strong preference of international chips brands among Turkish people create opportunities for Alooz chips.

Threats 

Current political scenario of Turkey can be a great threat for alooz chips.



Increasing competition (from both local and global brands) creates threat for alooz chips.



Changing snack food preferences of customers also a threat for it.

PEST Analysis

In the PEST analysis, Political & Social aspects of Turkish market are the most important part for our product Alooz chips. Due to the break out of Arab Spring in 2011, the political scenario of Turkey was not that much favorable for new trade. However, since 2014 the Govt. of Turkey is trying to make the situation normal. They have focused on the tourism, trade and marketing. The capital Istanbul is the new attraction of the foreign tourists. However, in 2016 Turkey’s political situation deteriorated with a failed military coup and mass arrests after that. However, the economic situation and the business community of Turkey has not been greatly affected by this. From Hofstede’s cultural dimension analysis, it is clear that the social criteria is favorable for the multidomestic market of our national product, Alooz chips. Turkish are fond of European

9

lifestyle, which influence them to add snack items in food habit. Young people are our target segments for our product. Moreover there are few local chips brands which are doing business with less variety for customers. So entry with different taste, attractive packaging, comparatively less price, hopefully will lead Alooz chips to a success in the Turkish market.

Target customer: Turkish people like having readymade snacks. To be more specific, the adolescent and the people who have crossed their adolescence are more into this snacks culture. However, the older generations also like snacking occasionally. In Turkey, the total population is 78,741,053 (Jan 2016). Turkey is one of the countries where the number of young population is dramatically high. 25.9% ranging from (0-14) years of age, 17% which cover age between (15-24) and age group between (25-54) constitute around 42.7% of the total population. This data shows the number of young population is at its peak. Alooz will be launched in Istanbul which covers 18% of the total population of Turkey. Since the nutritional value is high and the price will be reasonably set, so, young population’s demand will be met through this chips to a great extent.

Eating Habits: Turkish cuisine varies across the country. The cooking of Istanbul, Bursa, Izmir, and rest of the Aegean region inherits many elements of Ottoman court cuisine, with a lighter use of spices, a preference for rice over bulgur, koftes and a wider availability of vegetables stew (türlü), eggplant, stuffed dolmas and fish. The cuisine of the Black Sea Region uses fish extensively, especially the Black Sea anchovy (hamsi), has been influenced by Balkan and Slavic cuisine, and includes maize dishes. The cuisine of the southeast -Urfa, Gaziantep and Adana- is famous for its variety of kebabs, mezes and dough-based desserts such as baklava, kadayıf and künefe. Turkish people love eating kababs, pilaf and many other meat based dishes. For snacking, they usually prefer cooked dishes. However, the youth, especially in and around Istanbul like snacking on readymade snacks like potato crisps, packaged sweets and nuts. The older generations are skeptical about the nutritional value of these packaged snacks; however the youth are much more accepting of them.

10

Nuts are the most popular snacks in Turkey. Whenever people feel the desire to munch on something they chew nuts. However, there is a recent trend among the youth to eat flavored potato crisps. A few local brands are favorites; however there is also a strong preference of international chips brands. This can be utilized to our advantage when marketing Alooz chips in Istanbul.

Why Turkish People? According to the income level, economic development and Maslow’s hierarchy, Turkish people don’t fall under the upper-class economy level. They are mostly in the middle-income level. They love to be in groups and don’t like to stay in uncertainty. They are somewhat like the people of south Asian region, although they like to imitate Europeans. We believe Turkish consumers would like our potato chips. And as Turkish income group consumers are mostly young and fall under our target group of Alooz, so they have a high probability to buy snacks products l...