Thai Food in Europe V
What challenges did the company face when expanding into other Eastern European countries? How should it deal with these challenges?
Sapanan General Food Co had some difficulties promotion the functionality of its products as there is a lack of clarity in regards to the European regulation of health and nutrition claims. It had to decipher what eastern Europeans wanted, whether they were conservative or open to new products, health or attribute conscious, etc. Furthermore, it had to be carefully when finding suppliers and buyers in Eastern Europe, as for example; one buyer requested product samples then came up with an imitation product. Moreover, other potential buyers were small entrepreneurs and had relatively little experience on an international stage- SGFC had to select its affiliates carefully so as to not plunge into the unknown, or to damage its brand. As a company, SGFC should intensify its research of the places it intends to release its product- of paramount importance and consumer tastes and preferences in the region- whether they are looking for the product which the company has to offer, or whether they will be uninterested in it.
Sappe was able to penetrate the E.E market relatively easily as its market was relatively open to new ideas, and eastern Europeans are time sparse, filled with disposable income, looking for products to make their lives easier- so naturally a well marketed health drink which is convenient to buy was always going to do well. Sappes’ success in the domestic market paved that way for entrance into the international market as its domestic market was not dissimilar to E.E’s market.
Sapanan’s process in searching for and selecting suitable partners seemed less than adequate- from out outside parties view it looked as if it were almost a free for all, first in best dressed approach. Sapanan should have done far more market research about suppliers and importers before