International marketing - Admission/Application Essay Example

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International Marketing Company: Confectionary Manufacturers Introduction The Middle East was once operating with a small, divided retail sector, which made experts doubtful about its potential as a trade associate…
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Download file to see previous pages This progress is apparent in the statistics today, which show the Middle East as having one of the most profitable markets for confectionary in the world (Lymbersky, p. 83). There are several demographic reasons, which add to the increasing demand, which keeps this thriving industry alive, such as the number of young inhabitants of that place, the increasing immigrants to the area as well as the large disposable income per capita. Suppliers from all over the globe rush to meet this surging increase in demand, thus leading to immense competition. A large portion of these confectionary sales are made in the super markets and hypermarkets, which operate in the smaller countries in the Middle East, like Israel. Two such supermarket chains in Israel are major stakeholders and controllers of the retail sector for this industry. As a norm, convenience stores also hold an important part in the supply of confectionary goods. Although this does not apply for the self-regulating grocer, who is no longer a major supplier in this regard due to the other suppliers available (Sekkat, p. 29). Background This report explores the opportunities and barriers to entry that exists in the Middle East confectionary industry. ...
There are also several strategic issues that this report outlines, which are essential for the company to address before the product launch, in order to ensure maximum effectiveness and success, as well as a guaranteed future. A few of these issues are foundation for entering that specific market, the competitive advantages of the firm as well as the ways it plans to retain these advantages and finally, the types of promotions it plans to employ. Reasons for Selecting Middle East Region The Middle East confectionary market grows year by year, as the international producers develop an increasing awareness. The sales in this region have been experiencing a large, double-digit growth annually. This is apparent in the average of 15 percent growth it experienced each year, between 2006 and 2009. There are several reasons behind this large growth. Many of these reasons root from the demography in this situation. According to the dealers in the sweets market, two demographic factors are majorly responsible for the changes that their business experiences (Fleisher & Bensoussan, pp. 39-44). One of these is the way young customers increasingly affect the market. This may be because 23 percent of the population in these areas is made of young people between the ages of 15 to 23. In addition, the oil-based financial system, which has developed by 35 percent throughout the region since 2005, has led to these young people to be more than financially equipped to afford confectionary items on a regular basis (Sekkat, p. 56). Another major factor, which caused this growth, is the decline in tariffs in this region. This has led to a radical expansion in the business and investment in this region, which has had a positive effect on the growth of especially ...Download file to see next pagesRead More
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