Analyzing Kushies' Market Entry Strategy for India (MGT 2228 Project)

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Added on  2023/01/11

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AI Summary
This project report analyzes Kushies, a Canadian baby care product manufacturer, and its potential for expansion into the Indian market. The report begins with an executive summary outlining the company's background, established in 1953, and its current product range. The study then delves into the Indian market, highlighting its significant growth potential, driven by factors like a large population of young children, increasing literacy, rising disposable incomes, and growing awareness of baby care products. The report includes a SWOT (Strengths, Weaknesses, Opportunities, and Threats) and PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) analysis to assess the market landscape. Kushies plans to introduce its full product line, adapting to local preferences and conducting market surveys. The report acknowledges the competitive landscape, including established brands like Johnson & Johnson, and addresses pricing challenges. It also considers the impact of digital platforms in India. The report concludes with strategic recommendations for a successful market entry. This project was created to fulfill the requirements of the MGT 2228 Global Entrepreneurship course.
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Executive Summary
In this presentation, our aim will be to discuss about Kushies, a Canadian-based baby care
product and accessories manufacturer brand, who wants to expand its business in India. Here,
all the strengths, weaknesses, opportunities and threats will be analyzed and a proper
structured presentation will be delivered. Kushies was established in the year 1953 as Diana
Dolls Wear Ltd., by Mary Malinowski in Stoney Creek, Ontario, Canada. Founded as a small
“Cottage-style” industry, the company became the one and only Canadian manufacturer of
doll clothing and accessories. Customer list includes all the major Canadian department
stores. In 1988, the Company’s washable cloth diaper was launched, along with multiple
products ranging from bedding, bath, feeding, layette and outerwear and many more. More
than half of the products are manufactured in Canada. The company values the Customer, the
highest possible quality, artistry and commitments to unparalleled customer services. Kushies
are preparing to tap the Indian market, which has a tremendous potential for growth for this
untapped market. More than 127 million children under 4 years and 20% of total number of
child population in the world of this group. There is 20% of total number of live births in the
world. India, nowadays, is a very attractive market for the baby care industry and it is
expected to grow at an annual rate of over 17% to reach over $31 billion from $14 billion in
terms of revenue. Factors like growing rate of literacy among the people of India, per capita
increase in disposable income among consumers, increase in urbanization will also increase
to capture the untapped baby care market in India. Growing awareness about usage of baby
care products complements the growth in this market. The bi-lateral agreements between the
governments of India and Canada will help to introduce their product more efficiently. Thrust
on focusing towards a more greener Earth will encourage the company to expand in this
region. Inflation rate of India will be around 4.10% in the coming years, which will help the
market to grow rapidly. India currently ranks 3rd in PPP, which again will boost the morale of
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the company to grow in the market. Kushies will launch their entire range of products in
Indian market, which will feature on Nursing, Bath, SiliFeeding and Feeding. The company
will modify their products according to the taste and preferences of the people on region
specific and culture specific and will perform a market survey in the capitals and main cities
in and around India, which will assess the competitive products and will strategize their plan
accordingly, like SWOT as well as PESTLE analysis before launching their products. The
company have to face stiff competition from already established brands like Johnson &
Johnson, Unilever, Procter & Gamble, and others players. The products are relatively higher
priced, so will be difficult to penetrate the middle class society, which comprises most of the
market. The company will face competition on online platform also, as India is one of the
social media active users platform globally.
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