Operating in International Markets Simulation Summary

Essay by sbperlUniversity, Bachelor'sA, December 2006

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Introduction

Expanding products into international markets can be a challenging task for any company. Conserra, an international consumer packaged goods company, faces issues for three product lines--foods and beverages, personal care, and household care. With a hefty competitor like Florida-based Leray brands, Conserra needs to make sure that they are on point and detail-oriented when it comes to introducing their products into foreign markets or Leray will be. Conserra will take into consideration the cultural, political and legal environment of the intended countries they will market to when promoting their products.

What will confuse the consumers more--if Conserra adopts the same packaging as the local fruit juice concentrate brands, or if they introduce a different packaging?

Conserra successfully introduced a combination of the 1.5-liter glass jar and 2-liter carton, the latter serving as a refill pack. This option will not confuse consumers and creates an immediate association with the current local product, as long as they use the same logo and colors on their packaging.

This option was the optimal choice for Conserra, as it creates an immediate product association while minimizing costs.

Will the use of a local celebrity dilute JusFruitz's brand equity, since it is a global brand? How does this work for other global brands?

Conserra chose to use a local soap opera celebrity, Nadia Neli, to endorse JusFruitz in Abanovia. Consumers, typically the homemaker, who makes the buying decisions, can identify with this celebrity and feel they can trust her. Although JusFruitz is a global brand, using local endorsements for local advertising will personalize the product for each area the product is sold in.

By shifting its best performing brands to a joint venture, will Conserra jeopardize their future success? Justify your answer.

At a minimum, the country of Sirasan law stipulates that foreign companies must...