Asian Food Importers

ASIAN FOOD IMPORTERS

CASE ANALYSIS

1. Problems

1. Consumers attitude toward honey is hard to change due to their tradition.

2. Exporting honey to Korea will not be that easy because Korean importers might consider several countries, and they are more favorably to Canadian honey.

3. Major competitors threats - where they are domestic honey producers who often sold honey directly to consumers.

II. Causes

1. Changing the Korean tradition of using honey will have undergone a cultural change and consider honey as a food, rather than medicine.

2. Canadian honey to Korea market - Canadian honey is superior to Korean honey because their government imposed higher quality specifications than of Korean.

3. Major competitors threats - In addition to foreign competitors, there are also several local honey companies. The competitors will see, and go after, the same opportunity.

4. Regulatory Changes - Honey could be imported only by firms approved by Ministry of Agriculture. Due to restrictions of Korean government, honey imports were allowed but for hotel use only and requires sugar content of at least 78%.

5. Prices - Korean consumers group are complaining that the price for honey was too high. In order to compete, they would charge lowest price as possible in order to get more customers but might take as a signal of low quality.

III. Systems Affected

1. Structural - Asian Food Imports is offering high quality liquid honey for foreigner's preference. The distribution process of the company is to set up their own office in Seoul to open direct channels to hotels in other main cities.

2. Psychological -

3. Technical - Asian Food had a choice of number of suppliers of Canadian honey. A supplier has agreed to give Asian Foods an exclusive license for Korea.

4. Managerial - With legal restrictions in Korean government, the company are expecting this to change and done it step-by-step because of pressure from Korean honey producers.

5. Goals - Their goals is to take 50% of hotel restaurant market in the four major cities by the end of three years, to open the market as soon as possible, and to accumulate experiences.

IV. Alternatives

1. Asian Food Importers of America will enter Korean honey market assuring the supply of Canadian honey.

2. Build sales in the medicine market because the honey-as-medicine sales would remain stronger than honey-as-food because of Korean tradition.

V.