The paper “ Why Is Lebanon a Risky Country to Expand for the Australian Jelly Beans? ” is an impressive version case study on marketing. This paper aims to develop an international marketing strategy for the jelly beans brand of an Australian manufacturer that is planning to expand in a new market, Lebanon. While the company has a major market share in Australia, the Lebanese market is new for the company. Besides, the product, which is typically western candy, is a novelty in the Middle Eastern market, especially in Lebanon that has a heritage in ethnic food and cuisine.
The sugar and corn candy will need to be promoted in Lebanon, keeping in view the specialty of the market as well as the brand. In this paper, I will discuss the brand, analyze the external environment and the competitive scenario in the new market, develop a market segmentation and target marketing plan as well as market entry and expansion strategies and marketing mix that could be used in the new market. Description of the BrandJelly beans are a type of candy made by molding cooked sugar and corn syrup in the center with an outer shell added in a rotating drum or engrossing pan.
Jelly beans are manufactured in various flavors and attractive colors. While jelly beans have traditionally been sweetened by corn syrup, the availability of corn is going down as it is one of the most genetically altered crops. Instead, many manufacturers including the one under consideration are using tapioca syrup for manufacturing jelly beans for overseas production. These are typically American Easter gift products, with annual sales of 16 billion units (Philadelphia Daily News, 2009) but are as popular in all western countries.
Of late, jelly beans are getting increasingly popular in India, China, and other southeast Asian countries as well as in the Middle East and Eastern Europe. This throws open the possibility for the manufacture of jelly beans in exotic tropical flavors like those of passion fruit, star fruit, mango, and lychee nut. In Australia, the most popular flavor for jelly beans is that of the kiwi fruit. The jelly bean product, however, has become popular globally because of its popularity in America, particularly after it came to be known that President Ronald Reagan was a lover of jelly beans. External Environment AnalysisEntering a new consumer goods market is a complex process.
It requires a thorough analysis of the economic background as well as the social, cultural and political scenario. The external environment for a business may be analyzed through the PESTLE (political, economic, social, technological and legal) model. Political: Lebanon is a small country on a 1000km wide land between Israel and Syria along the eastern coast of the Mediterranean. The country, the capital of which is Beirut, has had a tumultuous political history in recent times.
The civil war from 1975 to 1990 seriously damaged the economy. It was only in 2005 that the Syrian army withdrew from Lebanon but even in 2006, the Israeli-Hizbullah conflict devastated the national infrastructure once again. Since then, the country has had to depend on donor countries, mostly Saudi Arabia and Kuwait, for aid to reconstruct the economy and tide over crippling debt. The new government was formed in 2008 but sporadic violence in the country has marred attempts to restructure the economy and push forward reforms (CIA).
Hence, the political situation in Lebanon is not very stable and it would be a risky proposition to set up a manufacturing unit here.