Global strategy for Shin Shii mushrooms

Iced Tea Marketing in the United States Market

Market and Industry Opportunities of the United States

Logically, the number one market for Shin Shii tea outside Taiwan would be the United States. Commonsense indicates that the best place to sell any food or beverage product would be dictated by looking in the direction of the largest waistlines. Nothing indicates this better than the history of the U.S. food chain Wendy's. The success of this chain in an "oversaturated" market would argue this point well ("The History of Wendy's… 2010). Certainly, it can be argued that possibility is there. This would be the best indication that the company should definitely choose a global approach to marketing, rather than localization. The U.S. is also the safest market to start. In addition, due to globalization, markets are aping U.S. behavior to a great extent. The United States is a logical place to grow the product while waiting for the rest of the world market to "catch up."

Canned iced tea is no exception, especially in light of the popularity of energy drinks in recent years. This is due to what an article in what a Journal of Marketing Research article called the "convenience salient." Convenience is a huge factor at the point of consumption in the ability and desire of consumers to purchase and stockpile more of a product in an already saturated market (Chandon, P. & Wansink, B. 2002, 321). This is the driver of demand in the U.S. As is historically shown. For instance, in n 2005, the tea industry is expected to continue keep up this growth indefinitely (Mintel 2010). Market analysts continue believe the tea industry will continue to boom and is not expected to reach saturation level in the near future. The favorable movement in the tea industry can be attributed to two major factors including consumers need for convenience and time-saving services; and the positive press given to tea. The American lifestyles as well as the new work habits continue to mandate convenience a necessity. Employers also continue to demand more and more productivity from their employees so consumers are more pressed for time than ever before. Also, the shaky economy has made U.S. consumers fear for their jobs.

Logically, any products that will fill a consumer's need for convenience as well as speed are embraced enthusiastically into the American lifestyle (ibid). This combines with the health benefits of tea as portrayed widely in the media. Studies keep continuing to show the beneficial properties of teas including health benefits that range from lower cholesterol levels to improvement in arterial health as well a decrease in the chance of cancer. This positive press coverage continues has definitely to propel the demand for tea (ibid). Both these needs for convenience as well as the positive press have spurred an increase in sales of tea products. This is especially so with ready-to-drink (RTD) teas sold in a single-serve container (ibid). In recognition of this trend, companies in the tea industry continue to come up with innovative products to capitalize on this booming market for RTDs. In addition to consumption, this has driven competition elements such as entry and the bargaining power of suppliers-customers. It makes the business hugely profitable. Germany's Dohler and Plantextrakt have formed a partnership and revealed a new tea concept that they feel will open up the global premium quality tea drinks market (Edwards 2011). These may include innovative co-branding and partnerships with entertainment artists such as Brisk did for the 2011 Super Bowl (Casteel 2011).

II. Country Analysis

Strengths:

The United States is the largest and the most important market in the world. High value investments are placed on R&D and education. It has the world's largest economy, having GDP approximately $14.26 trillion. In other words, it is almost 3 times the size of Japan's economy (2nd largest economy). Around two-thirds of production is driven by personal consumption. The country has a population of approximately 310,232,863. The services sector has a major role, and makes up to almost 78% of the GDP, while Industry 20.5% and Agriculture that is less than 1% (World GDP 2010). It has the stature of being a big driver of the global economy. Strong decision-making in the government pertains to initiatives for growth and stability of the country (fiscal and monetary policy). The U.S. regulates private sectors in order to prevent monopolies. Renders direct services for national defense, monetary aid and development programs and also releases funds for infrastructure development. It is also enlisted as a high income OECD economy by the World Bank (U.S. Tops List 2009).

The major industries in the country that also hold a lot of influence globally are: chemicals, steel and iron, metal products, electronic equipment, machinery, petroleum products, fertilizers, and plastics. Agriculture sector holds products such as wheat, barley, rice, sugar, oats, cotton, tobacco and potato. The finance and insurance industries take the top priority in accordance to the income. An insignificant number of people are living below the poverty line. Every person living in the country has access to improved water resource. Literacy rate over the age of 15 is 100%. Market oriented economy, which makes the private sectors as the decision makers and providers of goods and services to the Government. The U.S. economy holds flexible grip on its resources, that is; expanding plants, laying off workers in surplus, developing new products, creating new jobs etc. Government. support and subsidies to some sectors that create an ever more powerful impact. Advanced in technological systems; computers, medical, aerospace, military equipment etc. Uses open trade as a strong influence over international relations. After the 9/11 attack, the U.S. economy showed remarkable flexibility by recovery in 2002 with the growth rate of GDP raised to 2.45%. The Economic Stimulus Act provides economic incentives are to tax payers. Also, Treasury bills accounted for being sold as a means to generating money for government reserves, in order to contribute to economic activities. Urban development stands at 100% (CIA 2010).

Weaknesses:

The country has a record low household saving rate. It has a large fiscal deficit that is increasing, external debt was $13.6 trillion (2008), making it the biggest debtor country. There are still a significant number of people who live in poverty under the country's rule, especially unmarried mothers along with their children. The failure regarding the credit market and housing sector has slowed down the U.S. economy with GDP that declining to a mere 0.4. Although being called a free market economy the government regulates certain sectors especially the energy and the agriculture sector intensely. Federal Debt is increasing at an alarming rate which concludes and equates to approximately $13.724 trillion (93.2% of GDP) and makes it $45,000 for each American taxpayer. The country has a two tier market for labor, that is many at the bottom line lack the education and professional skills that are regarded for top position managements, hence they fail to get comparable pay rises, health insurance and other benefits. Credit markets are weak and are lacking a sustainable amount supply of money to stabilize the economic conditions. The economy suffers from high energy prices and commodity shortages. Exchange rates are also being affected (ibid).

Opportunities:

The country can support different adjustments by strong national saving that would avoid the burden of falling on both investment and growth. Even in uncertainty, the workers can be contented with the reexamination of the whole organizing processes in their workplaces along with the role of the government. Financial relief can be chucked-out in the form of tax relief. Increased funding in sectors such as housing will have a drastic affect in times of crisis. Increased spending from the side of the consumers will also initiate great stability and growth in the economy. Financial encouragement to the consumers will result in great help to stabilizing the economic conditions of the country. The Federal Reserve has deducted rates of interest, to encourage investment. The Federal Reserve has introduced measures that would provide the opportunity to push liquidity to various financial markets. The government should fund situations that retrieve distraught properties. Inflation can be decreased due to the decreasing commodity prices and the decrease in demand in the domestic market. The merchandise trade deficit can be decreased in order to decrease the overall deficit. TARP (Troubled Asset Relief Program) shows promising results and it can be used to buckle up the economic conditions in hard times as usage of incentives (ibid).