Contents
“BORJOMI” in ISRAEL
Abstract
After getting theoretical knowledge we decided to put it into practice and export “Borjomi Spring Waters” in Israel. The reason we chose Israel is the shortage of water in the country. Despite the fact that there are a lot of water producer companies in this country, most of them are exporters. That’s why we decided to add our product to the current market of Israel and challenge existing competitors or at least gain the loyalty of customers.
Our project consists of several parts:
Company review
History of company
Market strategies
The review of competitors
PESTLE analysis
Cultural overview
Action plan
Our product is “Borjomi” and “Borjomi Spring”. Our destination market is Israel. The reason we chose this country is the shortage of water which faces the population.
Market Strategies
Direct Exporting
For “Borjomi” it will be better to enter into Israel’s market via Direct Exporting. Direct Exporting is the way to sell your products to your customers without any intermediaries, be in touch with them all the time and get feedback directly from them. Direct Exporting will help “Borjomi” to eliminate fixed costs, such as rent for offices, utility payments, etc.
Direct Exporting helps to the firm boost sales and increase market shares. Through direct exporting activities” Borjomi” will gain the valuable experience and expertise about working internationally.
The disadvantages for direct exporting should be the complexity of logistics and distribution channels. “Borjomi” will need to build up some export organization which solves all these problems on its behalf. This organization will have to communicate with these parties to thrive sales.
Joint Venture
To find partner in Israel is will be difficult, since there are not many companies with the same production lines and have the same aims. In addition, while using this market entry mode there is a possibility to have