RATIONALE FOR SELECTION OF GERMANY’S MARKET
Germany is known as largest market of Europe. We must decide to export our product in Germany because when we sale our Sunny Boy Cereal Product there then it would be profitable for our business and reputation of our country also growing by selling product in target market. We will start doing business with Germany because it is already a big country and deemed to be Canada’s Treading Partner. Another reason behind selecting it is:
Minimum Language barrier in Germany.
The impact of culture on business also very less in this country, which is positive point for us to start business in Germany.
We are investing large amount of money to establish our business in Germany because it provides the following services to their investors.
In Germany market investigations is more convenient as compare to other countries so we can easy collect the industry reports.
Business set-up help administrations
The government provides the incentives and financing data to help the new business partner. Germany is an open market; therefore, foreign investors can easily invest their money to start their business. Moreover, there are approximately 7 million foreigners living so it is easy to explore Sunny Boy Cereal internationally. Another is, it offers an expert, well- educated, motivated and reliable workforce, who are well known how to do latest research on our product in target market so that sale can increase against competitors.
Germany has highly developed infrastructure whit the help of clean and wide road and well prepare transportation our company can easily supply Sunny Boy Cereal to the target market. At last, Germany has fourth rank in legal security and legal system of it served as a model for other countries. Government of Germany implies very lenient rules for exporter and importer to doing business here.
Germany is the biggest nation inside the Europe and has the biggest market of potential purchasers, because it has more than 38 million families and 82 million occupants. The most concentrated global breakfast cereal market is now determined by changing nourishment propensities and put impact of western culture on dietary purchasers in many creating economics. The worldwide breakfast cereal advertise was assessed at USD 47.10 billion out of 2016 and it is ready to develop at a CAGR of 4.5% during the estimated time frame, to achieve USD 58.73 billion by 2020.
Segmentation of this Market
Hot CerealSocio- Economic Data:
Included with this previous is socio- economic data for Germany is Population, Consumer Price, Index (CPI), Gross Domestic Product (GDP), Exchange Rates.
Market Trends and Opportunity Trends
Germany is known as second largest destination for Canadian market in the European Union and ninth in the World. However, in case of importing it is fourth largest country after the US, China and Mexico. As we know that it is biggest economy in European countries at over 4 trillion dollars, its Gross Domestic Product (GDP) shows the 21% of total EU GDP. Canada comes on 7th position in EU destination for direct investment and Germany is fourth largest for direct investment into Canada. Germany is relied upon to hold its solid impact inside the Euro territory and remains an anchor of regional stability.
Canada has a market position in grains and oilseeds and marking and advancement work have supported handled fares. CETA will likewise cultivate more fares of Canadian items, for example, fish and fish, meat, and pork. It Shows the Trend of Trade and Investment Between Germany and Canada (C$, Million).
Moreover, it provides various Opportunities to their business partner to export and import services, which is very beneficial for Sunny Boy Cereal Industry to gain profit in foreign trade market. It provides open market, high developed infrastructure and legal services and well-educated workforce to their foreign business investors. Population are capable to buy this product. Mostly middle age people like sunny boy cereals. Because this are most demandable product of youngster. Sunny boy cereals are exercising a stronger will in purchase decisions regarding purchase points, shopping behaviour and frequency. Digital point of sale strategies consumers is becoming increasingly demanding. Cereals are very important to combine different sales and marketing channels to be able to cater to a wider client.
Target Customer Profile
Germany is most developed economic nation. In this country most of the people are health conscious. Germany is fourth largest economic of Europe. In Germany mostly, young generation likes the hot cereals because as it typically appeals tohealth conscious young adults who increasingly option for a healthy lifestyle and diet. About30% of German people are cereals eater between the age of 25 and 34. Moreover, German customer appetite for healthy breakfast cereals, 36% of customer claim that is good product of our health and 33% that it is important to check the nutritional content of breakfast cereals. On the other hand, 17% customers claim that the fewer ingredients in a breakfast cereal the better. Due to above reason sale of our product is increasing day by day and Sunny Boy Cereal Company can achieve their goal in very short period of time.