Nutrasweet in China
Professor Sethi Anju
11/04/10
NUTRASTWEET IN CHINA CASE
By: Andres Jimenez (Session1)
Raymond Nicolai (Session 3)
Fernando Medina (Session 1)
To come up with a decision to the whether enter the Greater China Market or not we decided to approach the case with a SWOT analysis.
Strengths
NutraSweet is an artificial sweetener that is one of the most recognized brand names in the United States and in the world. NutraSweet’s earnings per share is $ 6.36 and with huge capitalization and investments in diverse products. Stacey has the approved budget of $ 500,000 to market NutraSweet in China. NutraSweet has the flexibility on how to position their product in terms of functionality, or either as sugar substitute or health product for diabetics.
Weaknesses
The research conducted towards the Chinese consumers may not truly reflect the real sentiments of the consumers towards NutraSweet. NutraSweet has not decided on building its own distribution system and may rely on foreign agents for distribution. NutraSweet is more expensive than ordinary white sugar.
Opportunities
China is a big market and can provide higher profitability to the company. China is the second or eighth largest economy in the world; depending on how it was gauged. There is a perceived consumers’ infatuation with Western brands. Chinese maintain healthful lifestyle so the potential for NutraSweet to launch their product in China is strong.
Threats
Sugar is a common household purchase as a sweetener and has been part of Chinese households for decades. Culture dictates that there might be difficulty in replacing traditional use of sugar with NutraSweet. The Chinese market is so diverse and it is difficult to come up with a general characteristic to define them. Artificial sweeteners are known by history of skepticism for saccharin and potential health hazards. There is difficulty in attracting and retaining local employees and as such, NutraSweet is having doubts in investing into
11/04/10
NUTRASTWEET IN CHINA CASE
By: Andres Jimenez (Session1)
Raymond Nicolai (Session 3)
Fernando Medina (Session 1)
To come up with a decision to the whether enter the Greater China Market or not we decided to approach the case with a SWOT analysis.
Strengths
NutraSweet is an artificial sweetener that is one of the most recognized brand names in the United States and in the world. NutraSweet’s earnings per share is $ 6.36 and with huge capitalization and investments in diverse products. Stacey has the approved budget of $ 500,000 to market NutraSweet in China. NutraSweet has the flexibility on how to position their product in terms of functionality, or either as sugar substitute or health product for diabetics.
Weaknesses
The research conducted towards the Chinese consumers may not truly reflect the real sentiments of the consumers towards NutraSweet. NutraSweet has not decided on building its own distribution system and may rely on foreign agents for distribution. NutraSweet is more expensive than ordinary white sugar.
Opportunities
China is a big market and can provide higher profitability to the company. China is the second or eighth largest economy in the world; depending on how it was gauged. There is a perceived consumers’ infatuation with Western brands. Chinese maintain healthful lifestyle so the potential for NutraSweet to launch their product in China is strong.
Threats
Sugar is a common household purchase as a sweetener and has been part of Chinese households for decades. Culture dictates that there might be difficulty in replacing traditional use of sugar with NutraSweet. The Chinese market is so diverse and it is difficult to come up with a general characteristic to define them. Artificial sweeteners are known by history of skepticism for saccharin and potential health hazards. There is difficulty in attracting and retaining local employees and as such, NutraSweet is having doubts in investing into