Entry Strategy for a canned food brand in UAE
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Entry Strategy for a canned food brand in UAE

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The presentation suggests how a Canned food brand can enter in UAE market

The presentation suggests how a Canned food brand can enter in UAE market

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Entry Strategy for a canned food brand in UAE Entry Strategy for a canned food brand in UAE Presentation Transcript

  • Executive Summary
    Asian food factory, a leading trading and distribution hub based out of Singapore is looking to expand their flagship brand , Sonnamera by entering the UAE market. Some of the factors that go into building a good entry strategy would be selecting the best Emirate to start with, choice of distributors and retailers, Market positioning and the product portfolio to start with.
    Recommendations
    • The best emirate to start operations would be Dubai.
    • Target two major hypermarkets like Lulu, Carrefour and one supermarket Spinneys.
    • A big distributor with a large product portfolio and catering to the above mentioned retailers.
    • Product portfolio to have pineapples, corn , mushrooms and green peas.
    • Market positioning as a premium brand.
    • Based in Singapore
    • Amajor trading and distribution hub
    • The Asian Food Factory is within easy access to the food processing and production facilities in Asia
    • Leading supplier of canned fruits and vegetables, under the Brand Sonnamera
    • Private label solutions company to both Retail and wholesale trade
    • Product Portfolio -Tomatoes and Gherkins from India, Pineapples and Sweet corn from Thailand, mushrooms from France and Olives from Spain.
  • UAE as a market for Canned Food
    • Estimated annual value of the canned food market is $2.5 billion.
    • Estimated average annual growth in canned food market is 5-10 percent.
    • Percent of imported consumer-ready products is 75-80
    • Percent of locally processed foods is 20-25
    • In UAE - Abu Dhabi, Dubai and Sharjah are home for nearly 75 percent of the population and retail development
    • All major chains except Carrefour import most
    products stocked.
  • Porter’s 5 Forces
  • Top 3 Entry Barriers
  • Factors important For A New brand
  • Evaluation of Options
  • Emirate to Start With
    Take a license from a smaller emirate and operate from Dubai
    Setting up a facility in Dubai
    Pros:
    • Biggest consumer market for canned food
    • Majority of the corporate offices of distributors and retailers are based out of Dubai
    • Reduces the replenishment time
    • Avoids inter emirate tax
    Cons:
    • High cost of renting
    • High cost of living for employees
    • License cost would be high
    Pros:
    • License fee of smaller emirate is less
    • Cost of operating also reduces
    Cons:
    • Transportation cost increases
    • More coordination needed between the 2 emirates
  • Distributor
    Small Distributor
    Big Distributor
    Pros:
    • Higher bargaining power with retailers
    • Faster penetration into the market
    • Get better visibility in shelves
    • Strong Distribution network
    Cons:
    • High Cost
    • Demand its terms and conditions in the contract
    Pros:
    • Smaller distribution network
    • Less Cost
    • May have a good hold in the market for canned food products
    Cons:
    • Slower penetration in the market
    • Buying power to retailers
  • Retailer
    Convenience Stores
    Big Retailer
    Pros:
    • Large Customer base
    • Better market penetration
    Cons:
    • High listing fee
    • Upfront marketing cost
    • Buying power of retailers
    Pros:
    • Lowerlisting fee
    • No upfront marketing and advertising cost
    Cons:
    • Small customer base
    • Too many to enter together
  • Product Portfolio
    All products existing in UAE
    Products having the highest market share
    Pros:
    • Top 20% of the products would be responsible for 80 % of the sales
    • Less cost of listing
    Cons:
    • Unavailability of brand for certain products
    Pros:
    • Availability for all products
    • Build brand loyalty
    Cons:
    • High initial cost
    • Large inventory
  • Market Positioning
    Super Premium Segment
    Premium Segment
    Pros:
    • Continue with previous brand image
    • Higher margins
    Cons:
    • Difficult to get innovators for the product
    • Narrows the customer base
    Pros:
    • Wide customer base
    • More sales
    • Faster penetration in market
    Cons:
    • Difficult to move to super premium later
    • Lower margins
  • Costs Involved
  • Best
    Recommendations
  • The
    Way Ahead
  • Sarthy Vadnerkar
    Shriti Chhajed