Market Entry Strategy for 'Grants'

This presentation discusses the market entry strategy for 'Grants', an organic toothpaste made of Xylitol. It explores the competitive advantages of the product, reasons to enter the Malaysian market, and proposes a mode of entry. The presentation also highlights the major risks in the Malaysian market and provides solutions to mitigate them.

Market Entry
Strategy for
‘Grants’

About the Company
It is an organic toothpaste, it is
made of Xylitol, which is extracted
from back trees and known for
preventing cavity. Moreover it uses
natural flavours

Through its competitive strategy
Grants can:
 Generate
greater value for
itself and
shareholders
 Increase sales
 Earn superior
margins as
compared to the
existing rivals in
the target
market

Competitive Advantage for
Grants
Xylitol is used to prevent cavity
Calcium and sodium are used to
keep teeth strong
Natural flavour is created using
mint oil
100% safe for children
Available at low prices

Other Competitive Advantage
Easily available at online stores
as well as supermarkets
No other organic toothpaste
provide so many features within a
reasonably lower price
Free from baking soda and
fluoride
Beneficial to a wide range of
customers- from new born babies
to adults

Country chosen
Malays
iaMalaysia’ herbal product market
has a good Absorption capacity,
it is a growing market.

Reasons to Enter
Malaysian market
Reasons
 There is a huge demand for fluoride
free toothpaste that in Malaysia
There is a huge demand for
toothpaste that makes teeth white but
does not contain harmful whitening
agents or chemical
There is a huge demand in Malaysia
for toothpaste which are safe for babies
Health conscious people Middle
income group uses organic products

Market Entry Strategy

Market Entry Strategy
Market entry strategies:
Environmental factors

Market Entry Strategy
Market entry strategies:
Political factors

Major risks identified in
Malaysian Market
 Suppliers’
power
 Buyers’
power
 Threat of
substitution
 Threats of
new entry
 Competitive
Rivalry

Solutions:
 Huge
investment
 Effective
promotion
 Prudent
competitive
strategy
 Prudent
CSR
strategy

The proposed mode
of entry
Exporting, joint venture, minority
shareholder Licensing are the
entry modes, most preferable-joint
venture

Reasons for this
mode choice
The company
alone can not
meet the high
requirements for
investment
hence
collaboration
with other firms
are
Required (Martin
2013). .

The top 5 steps
 Online sales can be increased by enhancing
the features of the website and making the
website more attractive
 The brand can also be promoted depending
on the features like- their concern for children
 Low price strategy should be adopted
 promotion through interesting social media
posts on oral care in a natural way.
 Promote healthy living as a CSR strategy
 Distribution through online store and fast
home delivery(Laufs and Schwens 2014)

References
Laufs, K. and Schwens, C., 2014. Foreign market entry mode choice of
small and medium-sized enterprises: A systematic review and future
research agenda. International Business Review, 23(6), pp.1109-1126.
grantsofaustralia.com.au (2019). Grants of Australia | Australia's original
natural toothpaste. [online] Grants of Australia. Available at:
https://www.grantsofaustralia.com.au/ [Accessed 26 May 2019].
Laufs, K. and Schwens, C., 2014. Foreign market entry mode choice of
small and medium-sized enterprises: A systematic review and future
research agenda. International Business Review, 23(6), pp.1109-1126.
Holtbrügge, D. and Baron, A., 2013. Market entry strategies in emerging
markets: An institutional study in the BRIC countries. Thunderbird
International Business Review, 55(3), pp.237-252.
Musso, F. and Francioni, B., 2014. International strategy for SMEs: criteria
for foreign markets and entry modes selection. Journal of Small Business
and Enterprise Development, 21(2), pp.301-312.
Martin, X., 2013. Solving theoretical and empirical conundrums in
international strategy research: Linking foreign entry mode choices and
performance. Journal of International Business Studies, 44(1), pp.28-41.
De Villa, M.A., Rajwani, T. and Lawton, T., 2015. Market entry modes in a
multipolar world: Untangling the moderating effect of the political
environment. International Business Review, 24(3), pp.419-429.