Partnership:
My muesli can also enter in the markets without having capital investments. This can be done through partnering with local retailers or stores to sell its products. This way company can penetrate in the market at low cost and also bear low profitability considering the volatility in prices of raw material.
Recommended strategy (with justification):
It is feasible for My muesli to go for niche marketing strategy because it will allow company to penetrate in the market at low investment cost and with steady speed. It will allow company to have interactions with customers and also help promoting its product, whereas in partnership strategy, the retailer might not be interested in promoting My muesli products. Overall it is important to keep the product aligned with the preferred localities. As per my observation, Norway seems to be an ideal location to enter first as it has the highest GDP per capita, disposable income and ranking of 6.
Resource implications of adopting the recommended strategy:
According to case study, companies such as Muesli Muehle and Cereal Club offering niche product were able to enter in the market in which My muesli was stronger. If these two can be successful, then My muesli can also use such strategy to enter in new markets and play safe financially. The reason to choose Denmark, Finland and Norway is higher disposable income and that their urban population comprise of 80% of the total population. As urban people are more health conscious, this provides additional benefit to My muesli to go for such markets.
Expected outcome:
My muesli has well positioned itself in its existing markets but now its unique strategy will not be customization, instead it would be meeting the taste of different nations, quality products and customer services and also to indulge in promotional activities. In this way, the expected outcome will be strong brand loyalty for My muesli and decent profitability due to low priced private labelled products. Although competition cannot be avoided, there can be innovation in tastes and quality of the products offered..........
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