Market Entry

As we call know , the types of market-entry used by a firm in international operations can be classified into four main categories:

• Indirect and direct exporting ( Indirect exporting using export management companies, agents and distributors).
• Contractual modes including franchising, licensing, contract manufacturing and turnkey operations,
• Foreign direct investment ( wholly- owned sales or production subsidiaries )
• Cooperative ventures including joint ventures and alliance.these modes are also used by international firms for mutual development of technological capabilities and knowledge in conjunction with offshore partners.

which marketing entry can be used by OCHO , I hope it will be a low risk one . If I choose a higher-risk mode, like investing equity in a foreign firm in Berlin , Germany . It will be in a risk. so I prefer to start with a lower-risk entry mode, such as exporting and maybe over time move to higher-risk entry mode.

Why I choose exporting as the international marketing mode just because it is a lower-risk and lower-cost mode of entry ( no equity involved ). It can be used as an experimental mode, to test out a new market in Berlin .

OCHO is made in New Zealand and I plan to sell the chocolate to Berlin either by sales branches using their own sales force, or through agents or distributors.

I think three things have to be pay more attention to export chocolate to Berlin , Germany.

• The EU requires that food products must contain only E-approved coloring additives and preservatives. This is a mandatory require OCHO must follow .

• Cultural/market conditions requiring adaption . if we export chocolate to Berlin we have to investigate what are the favorite flavor for the local people.