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European Food Trading

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* Background * Analysis * Marketing mix * Distribution * Financial plan * Conclusion * Recommendation

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* EFT
* Jamaica * Pros and Cons

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* Political
* Independent nation since 1962 * Realm of the Commonwealth * Democracy

* Economic
* Mixed economy * 65% depends on services industry * Macro-economic stabilization program

* Social
* Different ethnic groups * Majority of the people are 15-64 years old

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* Technological
* Half of the nation has access to internet * Behind in cutting-edge internet

* Environmental
* Tropical maritime climate, temp: 27-32 * Rainy season May October * Hurricane season June November

* Legal
* Common Law * Power divided over 3 groups

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Internal factors Opportunities Import Substitution Global recovery and increased markets Growing tourism 0.15 4 0.6 0.1 0.1 3 3 0.3 0.3 Jamaica depends on import for their food supplies Good place to start a new company Tourist are more likely to trust European food quality EU and Central America are 0.2 negotiating on a free trade agreement Threats Economically unstable Local competition High crime rates Politically unstable Total Score 0.1 0.15 0.1 0.1 1 3 1 4 2 0.3 0.15 0.4 0.2 3.25 Could make it harder to do business Similar product for a lower price, and produced local Have dropped over the years Makes the country instable 5 1 Makes it easier to trade with Jamaica Weight Rating Weighted score Comments

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Internal Factors Strengths Skilled employees 0.2 5.0 1 Staff members are qualified and have deep knowledge of their field Customer Relationship 0.2 4.0 0.8 The company has created a strong partnership with its customers Suppliers 0.1 3.2 0.32 Good established long-term partnerships with various suppliers Quality Products Up-to-date information systems Healthy Financial Position 0.1 0.05 0.05 4.0 3 4 0.4 0.15 0.2 High-quality products with attractive prices Recently upgraded information systems Still strong after the market slowdown due to recession Weaknesses No separate purchasing department 0.2 Lack about the knowledge about the specific market 0.1 2.0 3.0 0.4 0.3 Could lead to low efficiency The company has specified knowledge about the American and Canadian markets only Total Score 1 3.57 Weight Rating Weighted Comments Score

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Internal factors Strengths Customer Relationship Skilled employees Quality Products Weaknesses No separate purchasing department Lack of knowledge 0.05 3 0.15 The company has specified knowledge about the American and Canadian Intermediate 0.1 2 0.2 Could lead to low efficiency Short 0.1 0.15 5 4 0.5 Staff members are qualified and have deep knowledge of their field 0.6 High-quality products with attractive prices Short and Long Short 0.1 4 0.4 The company has created a strong partnership with its customers Short and Long Weight Ratin Weighted g score Comments Term

about the specific

market Opportunities Import Substitution Global recovery and increased markets Growing tourism Threats Economically unstable Local competition Politically unstable 0.05 0.15 0.05 3 1 2 0.1 4 0.1 0.05 3 3

markets only

0.3 Jamaica depends on import for their food supplies 0.15 Good place to start a new company 0.4 Tourist are more likely to trust European food quality

Intermediate Long Long

0.15 Could make it harder to do business 0.15 Similar product for a lower price, and produced local 0.1 Makes the country instable

Long Short and Long Long

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* Pestel * IFAS * EFAS * SFAS * TOWS

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* High margin High quality * Local agents

* Less costs same vision

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* 4Ps
* Product
* Frozen or tinned vegetables

* Price
* Value added pricing

* Place
* Port of Rotterdam/Schiphol airport

* Promotion
* Existing customers * Business fairs

* SMART target group

* Specific
* 4 to 5 star hotel tourist areas

* Measurable
Turnover and number of EFT customers per region in 2003(Roukens en Kooij) Country/Region Canada Hong Kong Singapore Rest of Asia Total Turnover in % 28 29 34 9 100 Number of customers 3 10 12 8 33

* Achievable * Relevant * Time

*Segmentation
* Demographic segmentation
* * * * * * * * * Income Behavior Social class Lifestyle age Located in Central-America Third largest Island Poor water quality Touristic cities/areas

* Geographic segmentation

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* Shipping is covered under INCOTERMS CIF * Shipped out of Rotterdam to Kingston * Warehouse in Kingston will hold goods * Final delivery can be done by third party companies

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* Past Trends * Summary of Projections * Pricing Strategy
* Price skimming

* Cost drivers * Break-Even * Forecast

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* Cost drivers
Variable Cost Category Original Purchase Cost Marketing Insurance Transportation Total Variable Costs Percentage of Total Sales Price 85% 2% 2% 11% 100% Cost per kilogram 0.64 0.02 0.02 0.14 0.81

Break-Even Analysis

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* Forecast: Next Three Years

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* A yes, with great prospect * Low break-even * Catering to high-end consumer market * Strong tourist presence * In short, move forward with expansion