Kff Channel and Pricing Strategies

KFF Channel and Pricing Strategies

Brittani Chewe, Igor Vaisman, Shannon Cocilova, Terra Walker

MKT571

May 16, 2011

Heidi Kelley

KFF International Channels and Pricing

In order for companies to increase their profit share it is often necessary to enter the international market. Kudler Fine Foods (KFF) home market in Sweden has seen continual rise in profits. However, in order for KFF to capture advantages that are not afforded their competitors they will need to tap into the international market. With 27 countries and 500 million consumers, Sweden is part of the world’s largest free-trade-market the European Union (EU) (Embassy of Sweden, 2011). Sweden is in a prime central location for markets in Northern Europe and offers 24-hour distribution to all major destinations in the region (Embassy of Sweden, 2011). Outlined below is channel and pricing strategies to introduce KFF’s organic energy drink to the UK market.

Justification

The UK offers a stable regulatory and political environment, with transparency ratings higher than France, Germany, USA and Japan, so there are no surprises for businesses (UK Trade & Investment, 2011). The UK is a member of the EU which ensures the free movement of people, goods, services, and capital with Sweden. According to the UK Trade & Investment (2011), the UK is committed to providing the best environment to attract companies and help them expand. The UK ranks as the first in Europe in ease of doing business including, ease of set-up and to running a business. This is enhanced by the UK offering tax incentives to businesses and the least limitations to doing business in the world, a flexible labor market and the third least barriers to trade.

Sustainability

With the 6th largest economy based on GDP (current prices) and the 8th largest GDP (PPP) the UK offers opportunities for businesses to thrive (Economy Watch, 2011). According to the Economist Intelligence Unit (2011), The UK overall...