International Trade Conference Oral Presentation

International Trade Conference Oral Presentation

The Chinese market is one of the largest markets in the world, hosting over 1.435 billion consumers. Candy and confectionery market is booming with a 20.1% growth per year since 2013. The growth forecast still shows an increasing trend in the consumption of confectionery products as the population increases. Youths are the major consumers of candy and confectionery products, and they form 64% of the total population. With these statistics, there is no doubt that China has a good market for Goodies company products. Opening the Goodies branch in China will present consumers with a variety of confectionery products to choose from, and their consumption rate will increase. The internal and external business environment is favorable for the success of the business.

Further, China has political goodwill for both local and foreign investors, and this means that the government creates a safe and secure business environment. After a comprehensive market search, a market niche was identified. The confectionary opportunity noted was based on the high prices of products above the prevailing market price. This means that Goodies Company can reduce its production cost and lower its prices slightly below the usual market price, then it will attract many customers. Consequently, Goodies’ Company market share will increase drastically a few months after launch..

With the right market entry strategies and marketing plan, a high rate of return is forecast in the next two years. If Goodies implements the 4Ps, 2Cs then and competition strategies, then a 98% success can be guaranteed. Goodies should apply a penetration pricing strategy to entice new customers. Prices offered should be slightly below the market price, considering the cost of production. The new firm should be located in Beijing due to its strategic location and high population. In the long-run other startup, branches should be located in different cities to increase accessibility. Further, handling of cultural differences through diversity and cultural adaption would boost the success level to 99% after two years.

Given the nature of the Chinese market and consumers’ tastes and preferences, Goodies need to consider producing the following confectionery products in a branded form.

• Chewing gum, Chewy lollies, Chocolate, Chocolate bars, Chocolate chips, bits and buttons, Chocolate coatings, Chocolate compound, Chocolate/nut spreads, Chocolate-coated nuts and fruit, Cotton candy/fairy floss, Crystallised or glazed fruit and ginger, Eucalyptus, and honey.

Three years after stabilizing and forming a strong customer base, then the company can expand to the following products;

• Sherbet and sour lollies, Small compressed drink powder, lollies such as choc malt treats, Small containers/tubes of jelly, Sugar-coated choc bits, Sugar-coated nuts, Sweetmeats, Toffee, Yoghurt compound, Yoghurt compound toppings and coatings, Yoghurt flavored lollies, yogurt shakes, yogurt sticks/straps