Every organisation wants to expand its business in the overseas nations to have continuous growth and increased brand visibility. Expanding the roots in the foreign nations is one of the best ways to develop and grow the business. in present time, the demand for nutritional substances has been increased as both the athletes as well as the people who are health conscious and fitness freak are consuming increasing number of nutritional juices and liquids that are rich in nutrients, proteins and omega 3. Because of the increasing demand for such drinks and due to the changing life style of the people, there are companies who have started producing such nutrient drinks to gain the market share (Rasane, 2015). The report will present the expansion and marketing of such product only in some new markets for fetching the attention of the new customer bases and to have an effective global reach.
With the efforts of two sisters named Florence Van Dyke and Chloe Van Dyke, there were established CHIA drinks in the year 2012. The key region of operations of the company is Helson, New Zealand. The main purpose behind developing these CHIA drinks was to offer the athletes with some sustainable energy in the form of drinks to build up the level of nutrition. CHIA started by aiming towards the endurance drinks for the athletes but later on it offered drinks to the general public to boost their nutritional levels.
The company offers the adults as well as the children with high amount of vegetarian omega 3 with other nutrients including electrolytes, potassium, iron, calcium and magnesium. The drinks of CHIA are rich in both the insoluble as well as the soluble fibers which have been extracted from the juices and helps in regulating the blood sugar level and digestion. The CHIA drinks are considered as more like a food rather than a drink. The drinks are available in various flavors including New Zealand apples, tropical flavor with orange and passion fruit, New Zealand blackcurrants and anti-oxidant rich blueberries which make the drinks more delicious and tempting. There are also plans to introduce the Coconut Water & Mango and the Feijoa & Pink Guava flavors too in the coming time. These drinks are highly refreshing as well as for supplying the human bodies with required nutrients and proteins (CHIA, 2017).
The country selected for the expansion of the business and to have a new market for the CHIA drinks is Myanmar. Myanmar is recognized for its ancient civilization. The economy is primarily agricultural driven but is developing fast with reduced number of crimes. From the overall perspective and by analyzing through the lenses of PEST framework, it has been analyzed that there are favorable and supportive political factors as the relationship between Myanmar and New Zealand have grown with an increasing rate (Thi, Trang and Latt, 2017). Earlier there was very .less interaction but in 2011 there was a new military backed civilian government that passed a reform and the association between the countries developed. There is also a representative office in Myanmar because do which the political relation have been smoothened.
From the economic point of view, there has been analyzed increasing GDP as well as the trade between both the nation have also increased which support other companies and business organisations to have successful business opportunities in the regions of Myanmar. Thus, the economic factors also support the expansion of CHIA drinks in the regions of Myanmar. From the social factor analysis, it has been realized that there are increasing health issues and the people are lacking the required nutrients and proteins in their diet (Abonyi, 2016). The continuously increasing obesity issues as well as other health related issues support the marketing and offering of such healthy drinks in the regions of Myanmar. From the technological factor, it has been analyzed that the use of technology is increasing slowly and gradually and it is a supportive factor for the fast establishment and development of the business in the regions of Myanmar (Soe, 2015).
Market entry
To enter the market of Myanmar, the best suitable and appropriate strategy for CHIA drinks is foreign direct investment. It is regarded as one of the best ways to enter any global or overseas market through acquiring the business assets in the international market or by establishing of the business operation in the selected overseas nation (Cavusgil, et al., 2014). CHIA drinks can use joint venture as entry mode as there are vast differences in both the nations i.e. New Zealand and Myanmar, thus it is benefices to have merger with some domestic company so that there can be saved from the various legal consequences, cultural issuers and other challenges (Coeurdacier, De Santis and Aviat, 2009).
In the industry of nutrient and healthy beverages, there is an increasing competition as because fo the growing demand across the world, there are companies that are producing the drinks that are rich in omega, proteins and the nutrients. Therefore, it is essential to have high number of strengths and work over the weak nesses to attract the customers. Following are the strengths and weaknesses of the CHIA drinks.
There are various strengths of the CHIA drinks as it is a healthy and nutrient drink which has no kind of side effects on eth hae.th of its consumers. Thus it is its biggest strength. Another strength of the CHIA drinks is increasing interest of the people in healthy and nutrient substances for maintain their jaelthy life styled and the other key strengths includes the key target segment is athletes and thus kit is one for the recognized drinks in the sports and athlete industry (CHIA, 2017).
There are few weaknesses too which weakens the company and its expansion strategy such as in Myanmar people are very much dependent upon the use of rice in all their meals and it is difficult to develop taste for such healthy drinks. Secondly there is also an important fact that CHIA is not much globally recognized brand thus there will be put more efforts to attract the people of Myanmar as it is a different nation and to understand the needs and demands of the people is difficult for the company (CHIA, 2017).
Strategies for Design and Operations
To design the drinks there will be first perform the analysis of the market and understand the taste and preferences of the customers. There can be offered some new flavors of CHIA drinks which are appropriate for attracting the masses. There can be have association with some of the retailers of Myanmar who have an effective and string customer base so that there can be attained an understanding of the favored flavors liked by the people of Myanmar (Richey and Klein, 2014).
For having effective distribution and supply, there is a need to have appropriate strategy for the same. The company must take use of the intensive distribution and supply strategy as according to this strategy, there is covered the maximum possible market. It is considered as one of the best and suitable strategy of distribution for the FMCG products. With the help of this strategy there can be effective distribution and supply of the CHIA drinks at various places with easy accessibility. The customers can even buy these drinks from the retail stores too as they will be available on these retail stores as well (Rushton, Croucher and Baker, 2014).
Marketing of the product is one of the most vital and important t aspect while entering into a new market as the customers are not aware of the products and to increase the sales it is necessary to make the potential customers aware about the availability and develop attractiveness for the products offered by the organisation (Hollensen, 2015). CHIAA drinks are also required to take use of effective marketing strategies for increasing the sales of the drinks at various places of Myanmar. The marketing strategies which can be effectively used by the company is advertising on television, having promotion on various social media platforms, advertisements in eth newspaper, hoardings as well as by making it available at the local and retail shops. By marketing the CHIA drinks at all these sources, there can be realized a good sales as the people will get informed about the availability an attractiveness of the product (Armstrong, et al., 2015).
In every organisation and its marketing strategies and plan, the ley objective is to satisfy the customers with the product and services by focusing upon the customer services. There are few strategies which can be used by the company in offering adequate services to its customers such as the customers must be explained the benefits of consuming the CHIA drinks by the suppliers of the retailers so that people can understand about the product. There can also be asked about the feedbacks from the customers that are they satisfied with the products or not or there is any kind of change required (Jahanshani, et al., 2014).
There is also a need to have effective and efficient value chain assessment at CHIA drinks as the value chain assessment will help in driving supply chain excellence. If the processes to be conducted at Myanmar will be analysis through various lenses and multiple angels then it will help in achieving continuous improvements in the CHIA’s supply chain. There are majorly four key areas which can impact or influence the success of the supply chain that includes organisation, supply base and processes, customers and the financials (Gómez and Ricketts, 2013). By focusing upon all these four afctors, there will be attained an overall efficiency supply chain. First there will be mapping of the value chain of CHIA drinks and perform identification of the various risks and challenges, non-value adding processes, scalability and agility of the supply chain. Once these are identified, the company will take use of effective strategies to improve the processes and removed eradicate such factors from the value chain.
The next step will be measuring the value chain and a proper identification of the KPIs will be perform for analyzing the performance of CHIA drinks in Myanmar by comparing it with the already set benchmarks and then developing appropriate goals and targets. After performing the mapping and measuring of the value chain, there will be taken use of strategies for having improvements and designing solution to the issues identified (Hawkes, 2009).
At the time of entering into the market of Myanmar, it is essential that there must be given emphasis upon the ethical considerations as well the social responsibility in respect with the product as well as the market. It must be ensured by CHIA drinks that while entering into Myanmar it does not laid down pressure upon the local retailers or fetch their businesses as it is ethically incorrect (Tang-Lee, 2016). Therefore, CHIA drinks smut take use of ethical strategies for entering and sustaining into the market. Secondly, it is also required that there must be sustainable business operations which means that the production and manufacturing if these drinks must not affect the sustainability of the environment or does not cause any harm to the agricultural lands as it is the primary business of the people and the waste substances or overuse of water should not hamper the sustainable living of the people and sustainability of the environment and natural resources.
The next point if consideration regarding eth social responsibility is that the drinks must be offered at affordable prices so that the people do not restrict themselves from buying due to the price factor. As well as it is essential that like other companies there must be a percentage of money or capital investments to be made for the development and improvement of the societies as a part of the corporate social responsibility of CHIA drinks (Arai, 2015). It is also an ethical responsibility or consideration of the company is that these are the health based beverages so the manufacturing and production of such drinks must be ensured and the company must have high quality products as well as a safety assurance mark on the drinks so that no kind of risk can impact the health of the masses. It is also one of the social responsibility of the company that it must give employment opportunities to the people of Myanmar as it is about to start its venture in that region. Therefore all the people must get equal wages and chance to take benefit of the employment opportunities. Thus, it is essential that the CHIA drinks must out high emphasis on the ethicality and social responsibility of the business and the products while operating in the markets of Myanmar (Brooten and Metro, 2014).
There are number if challenges and issues take place when any organisation or company expands in any overseas nation because of the fact that there are differences in the cultural and social factors of both the countries. While operating in Myanmar, CHIA drinks will also encounter some of those issues such as cultural challenges, language challenges, etc. These issues not only act as the barricade in successful business operation but also laid down a number of negative impacts of the sustainability and growth of the business operations (Lee and Sermcheep, 2017). While entering and functioning in the markets of Myanmar, there can be a few issues faced by CHIA such as the religion followed at New Zealand is Christianity whereas the culture followed at Myanmar is Buddhism.
Both the countries have huge differences on the basis of their religion and culture which results in occurrence of issues while dealing with the customers as many a time it is not understand what is demanded by the customers or what they actually needs (Gelb, Calabrese and Tang, 2017). It has also been analyzed that while having business operations in Myanmar, the company can face a number of language based issues as the main language of Myanmar is Burmese and the main language of New Zealand is M?ori. There takes place issues when the company has to deal with the newly appointed domestic individuals as the staff of CHIA. The language barriers not only impact the internal functioning of the coma pony bout also impacts the relationship with the customers (Moran, Abramson and Moran, 2014). It is highly essential that to attract and retain a customer, there must be conveyed they message properly or there must be effective flow of communication.
Therefore, without offering adequate training regarding the language aspects as well as in respect with the cultural differences there can take place a number of cultural as well as communication issues while functioning in Myanmar (Abdullah, 2017). Because of these issues there is harsh and negative impact posed on the sustainability and growth of the business operations as the communication issue based on language differences may result in less team work and inadequate flow of communication among the employees and thus, it will affect the productivity and efficiency of the business operations. As well as the ineffective communication with the consumers will result in loss of potential customers which will decline the sales and also hampers the long term sustainability of the company in Myanmar (Verbiest and Naing, 2017).
While entering into business expansions in a diverse region or an overseas nation, the most severe challenges are posed because of the ineffective management of the human resources. The human resource are the most significant and important part of any organisation for having efficient business operations as they carry the business operations and other functions of the organisations. CHIA drinks are required to take use of effective strategies and initiatives to manage the human resources (Morschett, Schramm-Klein and Zentes, 2015). The first strategy used by CJIA drinks must be to appoint both the domestic individuals as well as the expatriate to undertake the business operations as if the company will only employees either of the two then it will result in in efficiency of business operations (Brewster, et al., 2016).
Secondly, it is essential that a fair and equable wages must be offered to the employees with adequate level of position without any unfair practices so that the brand image of CHIA can have a better visibility and recognition in the regions of Myanmar (Sparrow, Brewster and Chung, 2016). Another important aspect in managing eth human resources is to give adequate training to the employees to carry on the business operations such as the expatriates must be given cross cultural training as they have to deal with the distributors, suppliers, colleagues and the customers in a different language and at a different place which have diverse cultural afctors and norms.
Thus, there is an essential need of the cross-cultural training (Varma, 2013). Another major step for managing the human resource is to have an effective flow of communication as the communication channels are required to be straight and there can be open discussions so that the issues and the grievances do not take place in the organisation. Thus, to manage the human resource in Myanmar there must be appropriate strategize, initiatives and steps in respect with developing communication balance, cultural balance and use of fair practices (Deresky, 2017).
Conclusion
From this report, it can be concluded that to grow and develop further, it is necessary to have business expansion or to extend the roots of business operations in the overseas countries. CHIA drinks is one of the fastest growing company with its unique and healthy drinks. The report concludes that Myanmar is considered as a potential nation for CHIA to expand its business as there is less competitive as well as high business opportunities. From the internal analysis, it is analyzed that the strengths of the company can help it in having a successful business in the regions of Myanmar. From the overall insights, it is concluded that, with effective marketing strategies, value chain assessment, proper management of human resources, effective cross-cultural training and considering the ethical and social responsibility, the company can have successful business operation in Myanmar.
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