Why Sappe was Able to Penetrate the Eastern Europe Market 
Why Sappe was able to penetrate the Eastern Europe market
“Consumers in Europe face the same daily situations as those in other parts of the world in terms of… and having more disposable income to spend on leisure activities…looking for products that can help them have a better quality life.” (Czinkota et al., 2014) The foregoing is a clear indication that the Eastern Europe market was open to any new idea that suited the consumers’ needs and tastes. In addition, unlike their Western
Europe counterparts that were more conservative and had reservations about trying new products, Eastern Europe consumers were more liberal. Sappes was a phenomenal success and the leading functional drink in Thailand; the brand’s success and good reputation in the local market paved way for its entrance into Eastern Europe’s market. The Eastern Europe market for functional drinks was relatively small; however, it was projected to grow fast. The fact that the functional drinks market was still small and growing implies that no functional drink had already established itself and occupied the largest share of the market; this gave
Sappe a chance to penetrate the market, compete with others, and make a name for itself.
The penetration of international markets can establish new ways for success, however, companies need to strategise and plan carefully. Many companies use trade shows to seek alliances. It is imperative to penetrate accessible international markets without making huge investments; the underlying principle behind this approach is the fact that it will help a company to avert big risks and uncertainties in the event things do not go as planned. The company first penetrated the Eastern Europe market through indirect exporting. Buyers from
Eastern Europe were the ones that introduced Sappe to the region. Sapanan penetrated
Hungary by forming an alliance during a trade show with a local engineer that wanted to own a business. In addition, sappe entered Slovakia by forming an
“Consumers in Europe face the same daily situations as those in other parts of the world in terms of… and having more disposable income to spend on leisure activities…looking for products that can help them have a better quality life.” (Czinkota et al., 2014) The foregoing is a clear indication that the Eastern Europe market was open to any new idea that suited the consumers’ needs and tastes. In addition, unlike their Western
Europe counterparts that were more conservative and had reservations about trying new products, Eastern Europe consumers were more liberal. Sappes was a phenomenal success and the leading functional drink in Thailand; the brand’s success and good reputation in the local market paved way for its entrance into Eastern Europe’s market. The Eastern Europe market for functional drinks was relatively small; however, it was projected to grow fast. The fact that the functional drinks market was still small and growing implies that no functional drink had already established itself and occupied the largest share of the market; this gave
Sappe a chance to penetrate the market, compete with others, and make a name for itself.
The penetration of international markets can establish new ways for success, however, companies need to strategise and plan carefully. Many companies use trade shows to seek alliances. It is imperative to penetrate accessible international markets without making huge investments; the underlying principle behind this approach is the fact that it will help a company to avert big risks and uncertainties in the event things do not go as planned. The company first penetrated the Eastern Europe market through indirect exporting. Buyers from
Eastern Europe were the ones that introduced Sappe to the region. Sapanan penetrated
Hungary by forming an alliance during a trade show with a local engineer that wanted to own a business. In addition, sappe entered Slovakia by forming an
References: Czinkota, M., Ronkainen, I., Sutton-Brady, C., Beal, T. & Stegemann, N. (2014). International marketing : “Thai food in Europe” (3rd ed.) (pp. 197-201). Cengage. Gonzalez-Hernando, S., Iglesias Arguelles, V., & Trespalacios Gutierrez, J. A. (2003). Exclusivity and relationalism in marketing channels. Journal of Business & Industrial Marketing, 181(1), 22-39. Katsikeas, C. S., Samiee, S., & Theodosiou, M. (2006). Strategy fit and performance consequences of international marketing standardization. Strategic management journal, 27(9), 867-890.