BMB Group Case Study: Market Expansion Strategy Analysis

This assignment analyzes the market expansion strategy of the BMB Group, a Dubai-based confectioner, focusing on the balance between own brands and private label brands. The analysis considers the benefits and challenges of entering markets in Turkey, the United States, and India. The assignment highlights the importance of understanding market dynamics, cultural preferences, and economic conditions when choosing between private label and national brands. It examines the competitive landscape, diabetes prevalence, and consumer behavior in each market to inform strategic decisions. The study references the success of private label brands in certain regions and suggests that BMB Group can leverage private label strategies for market entry. Overall, the assignment provides insights into how BMB Group can navigate the complexities of international market expansion and optimize its brand strategy for long-term success.

Running head: MARKET EXPANSION STRATEGY
MARKET EXPANSION STRATEGY
Name of Student
Name of the University
Author Note

1MARKET EXPANSION STRATEGY
Response to question 1: In terms of development of markets, what should be
the balance of own brands versus private label brands?
In order to understand the balance between the own brands versus private label brands,
first there is a need to understand benefits and challenges that each of the country offers for the
company under study or BMB Group (www.bmb-group.com., 2019). In Turkey, the major
benefits that BMB will enjoy are that of it offers a market of about 3million for its baklava
product. Another major benefit that the company will get in Turkey is that the majority
population in Turkey is Muslim and therefore they observe the Ramadan. However, there are
also certain challenges of the Turkey market such as, baklava is considered a common food so
there is no distinguishing feature or special feature about the same. There is much competition in
the market. The diabetes prevalence in the country is about 14.6%. The price of baklava is
$8.58per kg. In United States the major benefits that the company will be able to enjoy is that the
market is less competitive and the baklava id considered an exotic product as it is not so common
in US. Middle Eastern people are located in US in clusters in some location and the sales are
expected to be higher in those places. The main challenge is that it is not a common product
therefore sales may not be good, many people are health conscious and therefore may not prefer
the product. The population of the Middle Eastern people is small as compared to others.
Diabetes prevalence in the country is 10.9%. In India, the major benefits that the company can
enjoy is that Potential market is large, the number of existing competitors is smaller, there is
cultural preferences of the sweets and it has brand power of the middle eastern people.
The selection of private label versus the brand name depends upon the economic
conditions of the country (Rossi, Borges & Bakpayev, 2015). Many times companies find it

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profitable to use private label brands however they need to give condition to the national brands
also for the sake of national interest of people. Private label brands often pose a threat to the
national brand because it considered to be delivering better quality than the national brands. In
US private label brands are more successful than the national brand. In countries like India also
where the company is not so familiar with it is better to enter the market using private label
because it will become more successful using the same. The private label brands are often
considered as premium brands. Private labels offer many advantages such as creation of new
categories, with the emergence of new channels, mass merchandise is dime using private label
brands. However there are many advantages that are offered by the brand name of the products
also such as customers who want quality assurance prefer brands, the strength of an economy
often comes from its brands strengths; it provides better value to the retailers and others. There
are many advantages and disadvantages of both private label brands and national brands,
however in case when a company is entering new markets as in the case of BMB they can adopt
private label brands.

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References
Rossi, P., Borges, A., & Bakpayev, M. (2015). Private labels versus national brands: The effects
of branding on sensory perceptions and purchase intentions. Journal of retailing and
consumer services, 27, 74-79.
www.bmb-group.com. (2019). Mediterranean & Arabic Sweets in Dubai | BMB Group.
Retrieved from https://www.bmb-group.com/