Pssst… we can write an original essay just for you.
Any subject. Any type of essay.
We’ll even meet a 3-hour deadline.
121 writers online
Mondelez, one of the biggest snack brands of the world is present in more than 160 countries in the world. In the month of August they made the official announcement of opening its first site in the country, as it celebrated 70 years of operations in India. Tang, the imported powdered beverage brand, has been present in the country since 1995 which actually motivated the company to come with the products which have been admired by consumers worldwide. A corporate office was inaugurated in Dhaka, rolling out new billing systems and warehouses across the country. The reasons for the selection of this specific company and country are:
More than 98% of the people in the country speak the official language Bengali and the percent of people speaking or understanding Hindi or English in the country is very less. Warm treatment and relationship building is inherent to everyone in the country. The country is predominantly a Muslim nation with more than 90% people practicing Islam. Hence a localized approach is very important for a new entrant.
Population of MAC (Middle and affluent customers) is increasing at a good pace around 10% or 11% per year, and at a pace that outstrips many other Asian markets. (Appendix A). At this pace, Bangladesh will grow its MAC population by 65% in next 5 years says BCG. By 2025, it is expected to nearly triple, to about 34 million. The GDP growth and poverty decline is also a testimony of it being a favored nation. (Appendix B ).
The population of the country is fairly spread across the eight administrative divisions and close to 10% population is concentrated in the cities of Dhaka, Chittagong and Khulna (Appendix C). But 80% of MAC population is concentrated in two cities: Dhaka and the eastern port city of Chittagong.
As per a BCG reports (mentioned in References) the consumers have a strong brand affiliation, and a willingness to spend more for quality. But affinity for a brand is followed by the preference basis the price of a product. Around 60% people in a survey of 2000 Bangladeshi’s identified both brand and quality as factors in packaged food segment. Hence product education and winning the consumer initially is very important.
The food consumption patterns are highlighted in Appendix D. also, the average daily consumption of calories per person is 2318 Kcal which is in favor of introducing a snack brand like Mondelez. But about one fifth of the population of 160 million is unable to afford an adequate diet.
In 2017, Sheik Hasina invited companies from India to invest in Bangladesh and a promise of offering SEZs. Food industry was one of the prime focuses for the government offering the advantage of high demographic dividend and cheap labor costs. Federation of Bangladesh Chambers of Commerce & Industry president Abdul Matlub Ahmad said that there is also a possibility of supplying back to nations like India in future, leveraging the advantage of reduced costs. Besides, very strong labor laws were brought into effect after the collapse of a garment factory which killed 1132 workers in 2013.
Major usage of Bengali as written and oral language needs to have people who know Bengali as a part of the establishing team. The condition of the road infrastructure as well as the electricity is in a very bad shape in the country. Hence production as well logistics of transportation remains a matter of concern.
60% of the 2000 Bangladeshi consumers surveyed by the BCG said that their income is expected to rise in subsequent 12 months, showing that willingness to spend will also go up. This sentiment was strongest among MAC consumers, 71 percent of whom believe that their incomes will rise.
More than 66% percent of the 2000 people surveyed by BCG used internet to search for products online and amongst them 82% said that they trust the source but 70% also said that information obtained from a friend/known is important (Appendix E). Though E-commerce is in its nascent stage, but with only 15% MAC customers buying online, main focus should be on OOH advertising, TVC, newspaper etc and digital should be a futuristic approach.
The country has strong forex reserves worth of $33 billion against a normal requirement of $20 billion. The taka is not expected to depreciate sharply against the US dollar during 2018. Bangladesh’s only concern is its weak export position compared to neighboring countries and imports being cheaper. It will force the country to depreciate take to 84 to 84.50 during future time which should be the short term focus for a new company.
Ensuring the quality levels and establishing strong brand equity during the initial years will hold the key for a company like Mondelez. Innovative advertisements and even BTL activation can help create the required awareness and desire for the products on the offering. Besides, a method to cope up with the infrastructural challenges will help them produce better.
Replication of what a company has been doing successfully in an Asian country like India can ensure success in Bangladesh. Strong presence across the geography can help the cause in a big way.
We provide you with original essay samples, perfect formatting and styling
To export a reference to this article please select a referencing style below:
Sorry, copying is not allowed on our website. If you’d like this or any other sample, we’ll happily email it to you.
Attention! this essay is not unique. You can get 100% plagiarism FREE essay in 30sec
Sorry, we cannot unicalize this essay. You can order Unique paper and our professionals Rewrite it for you
Your essay sample has been sent.
Want us to write one just for you? We can custom edit this essay into an original, 100% plagiarism free essay.Order now
Are you interested in getting a customized paper?Check it out!