Case Study on the Alara Agai Cherry Business & Marketing Case Study

Case Study on the Alara Agai Cherry
International Marketing Case Study
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1. The cherry market seems to have two major product offerings; the loose (bulk) cherries and carry bags.a. Identify the ideal positioning of these two offerings and compare their pros and cons considering the market conditions in Germany and Belgium (feel free to use a two column table here). – 30 points
Loose (bulk) cherries
Loose (bulk) cherries account for the largest share of cherry production, but Alara Agri gets lower margins from this option than smaller packaging. Consumers in Germany prefer low price and fresh farm produce, and are less willing to pay higher prices simply because of improved packaging n smaller packs. Selling in the German market then would still focus on bulk cherries.
The consumers are also price sensitive in Belgium, but it is a smaller market and the company cannot differentiate itself as brand does not influence Belgium as much as in Germany. The consumers choose the fruits based on size, color and quality when here is the bulk cherries option. However, there are lower margins for the company and no brand loyalty.
Carry bags
The carry bags would be preferred for convenience where there is high price and high quality products packaged, but differences in the German and Belgian market needs o be considered to improve competitiveness. Branding the product would likely influence sales of Alara Agri‘s cherries to improve revenue in the German market.
Focus on the brand strength is necessary in the German market unlike the Belgian market where the consumers want value for money and better quality.
The carry bags offer convenience and there is packaging quality with the best quality fruits likely to be packaged. Branding may improve brand loyalty in Germany when the carrying bags are used.
b. Does your analysis support the idea of investing $2 million into a new production line? –
As there is increased volume of production, a new machine would increase performance and reduce waiting times and the return on investments depends on improving sales and reducing waste. The two automatic packing machines were bought for a total of $ 200,000 are expected to pay off in the next two years, but there has been increasing volume in packaging (Pearce & Mitchell, 2009). There is greater risk of bootlicks, if the company is unable to handle increased demand for the company’s products.
2. The case states that Alara Agri would like to brand its cherry products with its name rather than supplying a blank packaging for the retailers to put their sticker on it.a. Is it a good idea in the long run? Please explain why. – 30 points
Yes, it is a good idea for Alara Agri’s to brand its products where the brand differentiates the company products from its competitors and make it unique. Taking into consideration the customer needs and preferences will make it easier to target different target markets. Branding will also likely crate and help to maintain customer loyalty as customers associate brands with certain features, and while effective branding and marketing can change gather customer’ purchasing decisions. While branding is potent...