Market Entry Methods

When taking into consideration the size and scale of Chennai compared to the rest of New Zealand we need to think of the best option for New Zealand Clams. Clams would be a very specific market, as we would have high costs getting them to India, thus meaning we would need to find a niche market. Doing this would require entering either via an In Market Distributor or finding a Strategic Alliance.

 

In Market Distributor 

An in-market distributor is responsible for buying NZ clams and selling them to their clients, this could be rtestuarnts or supermarkets. But this would mean that NZ clams just had to fill the prder of the distributor, as they dont have to sell them on after.

The pros of In-market Distibuting are:

  • Relatively inexpensive.
  • A quick way to access a new market.
  • Existing understanding of chosen market.
  • Goods are purchased by the distributor, which limits your liability and exposure.
  • You can incentivise ongoing commitment by setting targets over specified time periods, and selling your product at a lower cost if targets are met (eg offering rebates).

 

While the Cons of In-market Distibuting are:

  • Not everyone is scrupulous – get everything in writing and draw up watertight contracts.
  • They may expect heavy discounts and a long period of exclusivity for listing.
  • Loss of interest is a real risk.
  • You lose control over the marketing and pricing of your goods and after-sales service because you ship the goods and your distributor will market them as they choose.
  • It can be difficult to learn more about end-users ie who is buying your goods, how are they using them and how often, and how your goods compare with alternatives.

 

Stategic Alliance/Partnership

If NZ clams were to partner with a Indian company i would reccomend they find a resturant chain that sells seafood / super market that has several stores in weathy neighbourhoods. Doing this would ensure that costs would be able to be met, alowing for the market to be profitable.

The pros of a Stategic Alliance/Partnership are:

  • Your partner may have a strong presence already, allowing you to ‘piggy back’ on their reputatio.n
  • You can use their existing relationships and infrastructure to your advantage.
  • You can maintain a relatively high level of control over your business.

 

The cons of a Stategic Alliance/Partnership are:

  • Conflicts of interest may mean your partner deliberately holds your business back to further their own.
  • Their true commitment may be towards their own products and services, which can sometimes lead to slower sales for yours.
  • Your partner may be in the relationship for a ‘quick fix’ upgrade to their own skills and knowledge, not to grow your business.

 

 

 

Image Source

 

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

WordPress.com.

Up ↑

%d bloggers like this: