Eggfree Cake Box Ltd: Expansion Strategy Analysis and Report

This report analyzes the market expansion strategy for Eggfree Cake Box Ltd, a UK-based company specializing in egg-free cakes. The report explores potential markets in Croatia and Germany, evaluating market size, financial stability, and cultural factors to determine the most suitable expansion location. It examines market entry strategies like franchising and joint ventures, recommending franchising for brand consistency. The marketing mix, including product, price, place, and promotion, is discussed, with a focus on Germany as a favorable market due to its non-EU status and potential for higher profitability. The report concludes by emphasizing the importance of thorough market analysis for successful expansion and sustainable business growth. References from various journals and publications are included to support the analysis.

Managing a
Successful Business
Project

Content
 Introduction
 Products and Services
 Appropriate markets
 Countries/regions
 Critical analysis and evaluation
 Market entry strategies
 Strategy that can be used
 Marketing Mix
 Reasoning and Justification
 Conclusion
 References

In order to grow and expand in market so that more number of
customers can be attracted and the opportunities that are
present in market can be captured Eggfree Cake Box Ltd
which is a UK based company that makes delicious cakes
without eggs can expand in markets like Croatia and
Germany. In this report the analysis of its expansion in an EU
and a non-EU country is discussed.
Introduction

Products/services
Eggfree cake Box Ltd was established in 2008 in London,
UK and it makes delicious fresh cream based cakes
without using eggs and also without compromising on the
taste and texture of the cakes.

Appropriate Markets
It is important that before expansion of the company the markets
are researched based on the following features:
• Market size: The market size for Eggfree cake in Croatia is
more as the country is famous for its tourism which means
that it can target more number of customers. In Germany as
the people mostly belong to old group it means that the
market size in Germany for the company is less.

Countries/regions
The ease of doing business in the countries chosen for expansion
can be analysed through following factors:
• Finance: The financial position of people in both the
countries is stable which can help Eggfree in establishing its
business successfully.
• Culture: Croatia has a culture of eating out in restaurants
while in Germany people like healthy food.
• Ease: As Croatia is a part of EU and after Brexit Eggfree can
face difficulties in doping business in Croatia while there will
be ease of doing business in Germany.

Critical analysis and evaluation
From the above analysis of the markets of Croatia and Germany it
can be said that the market of Germany is better for the
expansion of Eggfree Ltd as it is a non-EU nation and will not
pose restrictions on its trade.

Market entry strategies
There are various strategies that can be used by Eggfree cake
like:
• Franchising: In this the franchisor company gives the
franchisee company right to use the trademark, processes etc.
so that similar goods and services can be offered in target
market.
• Joint venture: In this two or more companies come together
so that they can together work in the target market and help
the company in it expansion by selling its goods and services.

Market entry strategy that can be used
Franchising can be used by Eggfree cake to expand its business
as it will help the company in delivering the exact same
products to customers as are manufactured at Eggfree which
will help it in building a strong brand image in the market.

Marketing mix
• Product: Eggless cakes made of delicious and freshly
prepared cream.
• Price: The cakes can be priced profitable as the people in
Germany have high purchasing power.
• Place: Market of Germany can be targeted by Eggfree for its
expansion.
• Promotion: Through social media advertising, personal
selling, exhibition etc.

Reasoning & justification
From the above discussion it can be said that Eggfree can expand its
business in Germany as it is a non-EU nation that can help it in
trading freely and will help in its expansion. Germany will also
help in providing a large market for the company so that it can
expand and earn more profits by offering eggless cakes to the
people in Germany. As the living standards of people are high
cakes can be priced profitably that can help the company in
earning huge profits.

Conclusion
From this report it can be said that in order to successfully
expand in market it is important that the target market is analysed
based on various factors like products, customers, competitors,
culture etc. so that the sustainability of company can be analysed.
This help the company in expanding successfully in market and
also help in deciding best options so that large profits can be
earned.