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Abstract
The introduction of a product in a new market requires comprehensive research on its suitability, sustainability, and competitive advantage. Reflectively, the process is intrinsic of market demand, uniqueness of the production, and its value addition above rival competitors. This paper researches the suitability of Ayran yogurt products in the new Scandinavian markets. Scandinavian markets are very complex and structured towards stiff competition, the need for healthy products, and quality. Thus, Ayrans product is reviewed based on its components, preparation, demand, and saleability.
Systematically, this research review and synthesize the design, methods, and findings of both qualitative and quantitative inquiries on nutrition and market penetration by Ayran product. Specifically, the research design adopts a quantitative-qualitative approach of investigations into the models to establish practices and themes that recur especially on the nutrition market and their effectiveness. The main goal is to inform policy and practice based on existing studies. The research actively embraces comparative study involving different nutrition studies and the process is based on literature support on the same. Besides, the research paper pinpoints key factors and best practices of food introduction into a fresh market. Thus, this analytical treatise attempts to explicitly analyze the century-old Ayran soft drink on the parameter of its production and saleability in the Scandinavian markets to ensure its sustainability and optimal returns on investments.
Introduction
Nutrition Transition
Globalization which causes rapid socioeconomic, demographic, and technological changes has also led to shifting dietary, activity, and body composition patterns around the world. Urbanization, increasing incomes, market liberalization, and foreign direct investment result in changes in food systems which result in greater availability and diversity of food. (Kennedy, Nantel, and Shetty 2004) These changes have got an important effect on the health and nutritious situation of the population especially in developing countries and in the countries in transition. The availability of food and the accessibility to these services create a negative impact on dietary patterns.
Nowadays, most of the household prefers energy-dense diets high in fat, particularly saturated fat, and low in unrefined carbohydrates. In other words, the traditional micronutrient-rich foods are replaced by heavily marketed, sugar-sweetened beverages such as soft drinks and energy-dense fatty salty, and sugary food. These unhealthy dietary patterns fortified with decreased physical activities and increased use of tobacco trigger diet-related chronic diseases such as obesity, diabetes mellitus, cardiovascular disease (CVD), hypertension and stroke, dental problems, osteoporosis, and some types of cancer(Joint FAOWHO Expert Consultation, 2003).
Soft drinks are one of the major reasons that cause especially obesity and dental erosion (Menzel et al., 2004; Joint FAOWHO Expert Consultation, 2003). The consumption of soft drinks is also increasing because of the introduction of different fragrances every once in a while and innovative packaging. In the report (Joint FAOWHO Expert Consultation,2003); the consultation team talked about a study that the consumption of soft drinks rich in free sugar raises higher energy intake, reduces appetite control, and increases the body weight when it is compared to energy-free drinks that are artificially sweetened. The study shows that children who drink high level of soft drinks are being overweight and has got a tendency to gain excess weight (Joint FAOWHO Expert Consultation, 2003). Although the side effects of soft drinks, many consumers are drinking soft drinks which is also because of the introduction of different fragrances every once in a while and innovative packaging. A healthy diet can be a major solution for preventing and treating these health problems. That is why; the food market needs to focus more on products that support a healthy diet than profitability. Companies should offer healthier options than just taste and product appearance.
This research tends to review and synthesize the theories, methods, and findings of both qualitative and quantitative inquiries on nutrition systematically. Specifically, the research design adopts a quantitative-qualitative approach of investigations into the theories to establish practices and themes that recur especially on the nutrition market and their effectiveness. The main goal is to inform policy and practice based on existing studies. The research actively embraces comparative study involving different nutrition studies and the process is based on literature support on the same. Also, the research paper pinpoints key factors and best practices of food introduction into a fresh market.
A healthier alternative to Soft Drinks: Ayran
One of the healthy options which can replace soft drinks can be Ayran which has been a famous and healthy drink in many Middle Eastern countries from ancient times that is simply milk fermented by a bacterial or fungi starter (the same process as in making yogurt) and adding salt and aromatic herbs. It has no additives and contains at least 50% of the ingredients existing in yogurt. From the ancient medicine point of view, it is the best suspension to cure gastritis and indigestion, especially with added mint. Thanks to yogurt as an ingredient, there are many nutritional benefits that Ayran provides to its consumers. One glass of Ayran contains calcium, riboflavin, protein, vitamins (B6-B12) potassium, and magnesium which help to strengthen bones and teeth, to enhance the immune system. The calcium inside the drink will prevent consumers from osteoporosis. The usage of law-fat yogurt during the preparation of Ayran will also endorse weight loss. Moreover, calcium also helps to keep cholesterol at acceptable levels (Baysal 2012). The Ayran drink can also be consumed by lactose-intolerant people (which are high in Scandinavian countries) who cannot drink milk (Gem, 2010).
The Scandinavians health status shows that cardiovascular disease (coronary heart disease, stroke, and hypertension) is common mainly because of the high intake of saturated fats, cholesterol, and sodium. Stomach cancer can be seen due to the high intake of salt and salt-cured foods, especially salted fish. Recent studies show that obesity is increasing (Delores and Misra, 2012). We aim to introduce Ayran as a healthy alternative to soft drinks in the Scandinavian market to support reducing the possibility of diseases mentioned above. We believe that Ayran can be an alternative because there is a heavy consumption of dairy products by the Scandinavian population (Delores and Misra, 2012). (The components, the production line, and the production method of Ayran can be found in Appendix 1.)
Purpose of the Study
The main purpose of our study is to examine how to introduce Ayran as a healthy alternative to soft drinks in the Scandinavian market. To understand if Ayran is a suitable option, we should analyze the Scandinavian Market preferences for drinks. Since there are many different taste options of Ayran, the sensory analysis should be done to understand which one of the flavors is more appealing to our target. If it is needed, the new taste should be created to enter the market.
All the marketing aspects (product, price, promotion, and place) should be analyzed and be considered in detail for the successful launch of Ayran in the Scandinavian Market. Besides, external factors such as demographic, technological, economic, environmental, and government segments affecting the general business environment of this product in Scandinavian Nations are reviewed besides internal factors such as planning, diversification, and competition which are essential in brand management of this product. Specifically, the paper reviews the aspects of brand architecture, brand hierarchy, brand strategy design, global brand strategy, and building global customer-based brand equity in brand management of Ayran yogurt within the complex Scandinavian market. To achieve all the purposes above, we need a dairy company who can help us to reach accurate information about Scandinavian market preferences.
Since marketing strategy is essential before actualizing projections of a blueprint, this plan functions on the margins of informed decision making after comprehensive research on the viability and sustainability of a new product or a modified product (Richard 2004). To achieve desired margins in sales and total revenues generated, a proper marketing plan should integrate entry strategy, comparative advantage, and market segmentation since in most cases, there is always a strong competitor or competitors that passing might prove challenging due to the existence of consumer perceptions and household names (Robert 2005). This analytical research paper explores the best bundle of marketing techniques the Ayran yogurt brand intends to employ in a bid to successfully introduce a new product in the unique market niche of the Scandinavian territory.
Background of the Research
Companies must be able to move away from a more fragmented and defensive attitude to a more integrating and affirmative strategy when introducing a new product in a fresh market. Therefore, the focus should be to ensure that the systems move away from images that require emphasis to those that are substantive and consider the end-user interests outside the sell-buy relationship to successfully cut a niche in a market. Strategy as a way of making appropriate choices and the successes made in business research bears no difference. It encompasses the art of considering which type of choice from the business point of view will have a greater impact and that with minimal impact (Forsman 2008). To achieve desired margins in sales and total revenues generated, a proper product entry plan should integrate entry strategy, comparative advantage, and market segmentation since in most cases, there is always a strong competitor or competitors that passing might prove challenging due to the existence of consumer perceptions and household names (Borg 2009).
Often, emerging businesses demand information flow and dimensional communication systems that are globally accessible. Irrespective of the size and geographical area of operations, brand equity has become an essential part of business operations on the facets and the need for optimal operation. Brand equity has an essential tool for marketing, customer services, and communication from within and without an industry setting, relationship with clients, and market segmentation. Across the globe, small, medium, and large business organizations have embraced the essence of designing brand equity from which all its activities are centralized and managed either by a single administrative system or variant systems depending on the sustainability and the cost factor.
Different models of brand exist from simple to complex models for larger international companies which aim to cut a niche in the competitive market. This has been made possible by technological revolution and inventions aimed at remodeling efficiency, reducing redundancy, and embracing systematic orientations in a product. Also, brand equity is an essential aspect of a business organization. Environmental analysis is essential in projecting the sustainability and forecasting the success of a marketing plan. In this segment, the market is a review of the facets of social, economical, technological, and other factors that influence the business environment (Chaston, 1997, p.820). Thus, the above factors inform the rationale for this business research analysis of the Scandinavian market for the Ayran yogurt brand. Therefore, this paper will explicitly establish a clear business entry plan for the Ayran yogurt brand and its sustainability in the complex Scandinavian market.
Research Aim and Objectives
Research Aim
This research aims to examine the aspects of business sustainability analysis before the introduction of a fresh yogurt product brand called Ayran in the expansive and structured market of Scandinavia.
Research Objectives
The main objective of this proposed research is to a better understanding of the importance of business research before the market entry of a product with competitors in a fresh market.
The objectives of this study are as follows:
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To understand the market structure of the Scandinavian Nations before the introduction of the Ayran product
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To examine the demographic, health, and social factors that will determine the success of the Ayran product in Scandinavia
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To determine the extent of competition, preference, and demand for similar products in the Scandinavian market
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To examine several policy proposals to manage the entry process, sustainability, and market expansion based on the competitive advantage of the Ayran yogurt brand.
Literature Review
Ayran components, production method, packaging, flavors, costs, logistic solutions, regulations
Components
Ayran is made of yogurt, water or whey, salt, and sometimes fragrant herbs. Since Ayran is a dairy product, dairy companies can launch its line without any need for purchasing yogurt which is the most important raw material. All kinds of drink water can be used including wale or mineral water which is tested and approved microbiologically and qualitatively (Tamime & Robinson 1999). Thus, there wont be any cost for mediators to purchase yogurt and water. The cost for ingredients of 1 liter of Ayran would be:
0.5-liter yogurt ~ 4-6 SEK
0.5-liter water ~ 3-4 SEK
Salt and herbals ~1 SEK
~ 8-11 SEK
These are the costs if an end-user is going to make Ayran. But if the dairy company itself makes Ayran from its yogurt, it will be much less and the packing cost of yogurt goes for packing Ayran. The cost will be then estimated for end-user like other dairy products adding the percent of profit to it. The cost for line extension will not put financial pressure on the company and since the company needs a simple machine for mixing the ingredients and packing machine if needed.
Production Methods
Ayran is made in several ways. In some factories, it is made from the whey remaining after taking out butter from yogurt. However, in some other factories, it is done by dilatation slim yogurt. Sometimes they use a kind of fungi named Kefir as a starter which makes a watery product out of milk. It was previously a by-product of making butter, but due to the massive use of this drink in many countries, the industrial ways of making it was born. Ayran is the most used fermented drink in Iran, Iraq, Turkey, Syria, and many other countries. Ayran is divided into 2 general types, that is, bubbled and natural.
In preparation of the Plain Ayran/ Kefir Ayran: A type of fungi named Kefir which releases very healthy ingredients into Ayran when fermenting the milk is used. This product is then heated after production to increase preservation and avoid gas production. This heating process is after fermentation and should not be mistaken for the heating process of milk used for making yogurt. After this, Fermentative carbonated heat treatment is applied to the Ayran. After fermentation, harmless microorganisms are added to it to make gas (bubbles). Under the Fermentative carbonated/ un-heated treatment, Ayran is not heated after fermentation. However, harmless microorganisms are added to make it bubbled. The result is passed through microbiological, sensory, and quality tests before going into the market and can be made with different fat content (Koksoy & Kilic 2003).
Production line
Yogurt is mixed well in a steel tank for all flocculation to break down. In another steel tank, water is mixed with salt. The two tanks are then mixed with little heating to make a homogenous liquid. After heating up to the appropriate temperature, it is cooled down as quickly as possible. Then herbs are added before bottling and labeling. Generally, the product should be kept in cool inventories. In some types of Ayran, probiotics are added after fermentation/ heat treatment is done to make it bubble. The diagram below summarises the entire process.
According to Koksoy and Kilic (2003), in their article, Effects of water and salt level on rheological properties of Ayran, a Turkish yogurt drink, Ayran is a yogurt drink traditionally manufactured by mixing yogurt with water and salt (p.835). During Ayran preparation, yogurt, water, and salt are mixed in a ratio of 50:100:1. However, salt may be more for flavor. The modern means of preparing Ayran is by pasteurization and homogenization of milk in the culture of ropy lactic acids. The product is mature at a pH of 4.5 (Tamime & Robinson 1999). The product is packed in different weights. However, the quality is affected by way of storage and period before consumption (Koksoy and Kilic 2003). The authors further present an interesting performance of this product in Turkey and demonstrate quality variances with different quantities of water and other substances. Reflectively, salt, and water levels affect the final quality of the Ayran product. In fact, Increasing the level of added water reduced the consistency index and increased the serum separation in Ayran during storage. Added salt had similar effects on the rheological properties and serum separation, as added water (Koksoy and Kilic 839).
Besides, the results of a research on the quality of Escherichia coli in Ayran after a specific period of storage by Sadic, Ozcelik, and Simsek (2007), suggest that spices influence the period Ayran may take before expiry. The authors found out that some spices make the yogurt spoil faster than others. However, the process depends on a balance of ingredients that form the final product (Sadic, Ozcelik, and Simsek 2007). Ayran has existed as a healthy drink especially in its ability to minimize the damages on the colon cells of human beings. For instance, the report Antigenotoxic Effect of Kefir and Ayran Supernatants on Fecal Water-Induced DNA Damage in Human Colon Cells by Grishina, Kulikova, and Alieva (2010) found out that fermented milk contains probiotics which are live microorganisms which beneficially affect the host by improving the intestinal microbial balance when ingested in sufficient quantities (p.73). The results of this study are represented in the figure below.
From the above figure, it is apparent that Ayran has substantial benefits on the health of its consumer, especially in the protection of the colon cells. This makes the product a healthy supplement for balancing the DNA functioning in the body (Betts 2000).
The additive components of Ayran products include herbs such as herby cacik, nemorosa, prangos, and mentha which have medicinal value on its user (Steffe 1996). These herbs are rich in calcium, magnesium, and sodium. Thus, Ayran is an ideal health drink product for its users. Ayran can be packed in plastic mugs of different sizes with flavors such as vanilla, strawberry, cinnamon, and mint (Tamucay-Ozunlu & Kocak 2010). On average, a mug costs $2.
The benefits of Ayran
According to Gem (2010), the benefits of drinking Ayran includes getting calcium, protein, riboflavin, vitamins B6 and B12, potassium, and magnesium. These healthy nutrients help build strong bones and teeth as well as healthy gums due to the probiotic effect of lactic acids present in them. Yogurt drinks also help treat certain gastrointestinal conditions such as diarrhea, constipation, and other inflammatory bowel diseases as well as enhancing the bodys immune system. It also helps in promoting weight loss by using a low-fat yogurt to make a refreshingly healthy Ayran (Gem 2010, par. 15). Besides, the drink is safe for persons with moderate intolerance to lactose. Since this group doesnt drink milk, their calcium needs can be found in this healthy drink. Reflectively, calcium assists in bone strengthening and facilitates the prevention of osteoporosis. Therefore, by drinking this refreshingly delicious yogurt beverage more often, youll get not just its flavor and taste but also a powerfully packed nutritional and healthy benefit for your body as well (Gem 2010, par. 19).
The Competitive Analysis of the Scandinavian Market
Due to its fair pricing mechanism, competition factors positively skew to the advantage positioning of Ayran in the Scandinavian market. With competitive prices for its products and uncompromised quality of services, this strategy has the capability of making the manufacturers operations in Scandinavia economically feasible and sustainable, while at the same time winning a greater percentage of the market share. To enhance the achievement of the same, the Ayran manufacturer needs to introduce different price policies which in return will attract various types of clients thus creating new market segments in the Scandinavian market characterized by the existence of affordable competitors such as filmjolk. Consequently, marketers will be required to maintain the sale and success of the entry procedures and endeavors of the product (Fuller 1994).
In line with the marketing principles, this recommends the proper scrutiny of various factors creating a direct or indirect impact on the economic trends and changes in the economy of Scandinavia. The prices of a commodity influence the determination of the buyers buying decisions. The Ayran product needs to be integrated into the achievement of various organizational goals through the distribution processes to ensure that the products reach all designated customers (Jones and Parry 2011). Besides, the physical distribution patterns are with no doubt a critical area of focus. This will make use of the companys brand logos that are highly recognized to build other distribution channels in the Scandinavia market. Different distribution channels of the product will expand the sales thus increasing the eventual profitability. Also, the use of sales of agent enhances the distribution of a product in the macro and micro-regions of the culturally integrated northern Scandinavia market (Massey & Kyriazis 2007).
The other aspect of the marketing mix is that of promotion. The business should be carrying out public awareness programs through advertising and frequently diversifying some of the products from its new customers that have worn out. The success of this marketing initiate is measured by evaluating the effectiveness of marketing strategies by the quantity in terms of figures of customers in the Scandinavia consumption market. The product may receive relevant responses along with any consequent increase of its net profit margins. As indicated by the market segmentation in Scandinavia, this may take 2-5 years from the actual time when the marketing plan is put in place (Owens 2007).
Scandinavian market requirements, needs, and wants
The essential political requirements of Ayran yogurt towards the entry planning and development phases are those that impact directly on the stability of the Scandinavian culture. The market is projected to face cultural and religious opposition from the majority who are often attached to their household product of this category. This has been a factor that has discouraged the engagement of foreigners in economic focusing and predictions. The overall development levels exhibited by the Scandinavian market are relatively stable and high though still fragile, thus, discouraging prospective investors. Reflectively, this could be seen to include the potentiality of the region for such business ventures such as food products development.
The rate at which the economy of Scandinavia is growing is incredibly rapid and this has led to the diversification of the economy. Notwithstanding, this diversification of the economy has led to the definition of the interdependence of sectoral components of the economy that translate to the realization of a restricted business operation. Besides, the finance departments operating in Scandinavia and foreign trade play a great role in the market operations. Further, this interaction has a direct impact on the economic currency value of the country. Consequently, this could be the reason why the Scandinavian authorities insist on promoting the available opportunities for the food products investors (especially foreign) in an outlook of luring them to invest in the economy (Dagnino and Rocco, 2009). However, in the long run, this will make it easier for Ayran yogurt to penetrate the Scandinavian economy (Dagnino and Rocco, 2009).
An ideal penetration strategy should be that which causes minimum disturbances to the company both in terms of financial resources and the daily organizational activities of the company. Potential target markets have been established in some ways and means. The two general ways of differentiating and segmenting the Scandinavia market would be through using the basic consumer-based market segmentation procedures and the enterprises opinion of the same (Dagnino and Rocco, 2009). For the consumer-based segmentation technique, the company will be involved in the evaluation of the different groups in the given market and their specific and respective consumption needs. To a great extent, this particular criterion lays strategic regards to the issue of consumer involvement in the designing of the product. This type of consumer segmentation will be further categorized into several other processes of consideration.
In the demographic segmentation stage, the marketer will have to focus on areas such as peer groups and age which is a pre-determined of the kind and quantity of the product and that which the individual is willing and ready to spend on (Alder 2008). The gender of the prospective buyer will contribute to the shape, attractiveness, and sizes of the product at stake. For instance, the general population of Scandinavia prefers healthy eating habits and among the leading population in the consumption of natural products.
The nationality and political background of the customer will be a factor that will determine because different countries have varied legislations as about internet service industries. The occupation of the greater population in the region will form a basis for determining the level of economic activities. Similarly, it goes without saying that in the events of unemployment results of lesser disposable incomes are registered hence low product sales. For the demographic determinants of market target determination, it is necessary to comprehend the population patterns that will come in handy in establishing the kind of marketing strategies to be applied in penetrating the Scandinavian market (Dagnino and Rocco, 2009).
The second broad area of focus would be the suitability of the political arena for business. This will include the evaluation of the countrys history and present status of the political environment and its influences on the business cycles of a region. Stable and peaceful political environments create room for the healthy interactions of the trade activities while unstable political situations would mean the inverse of that. It is for this reason that Ayran should be introduced in Scandinavia. To begin with, the ideological orientation of the persons of that region in terms of awareness through the freedom of communication or otherwise forms of personal rights administration may influence the performance of different products in an economy (Dagnino and Rocco, 2009). For instance, in a country that freedom of expression is allowed and is independent for that matter there is the possibility of the general public getting to hear detailed information on products. In Scandinavia, the freedom of speech is exercised without controlled boundaries enabling Ayran products to enjoy media advertisement without boundaries.
Also, the political environment is the governments involvement in the business activities of a country. The extent to which the government is seen to intervene in the economic environments could deter the development capacities of the businesses involved (Adler 2008). This could be through unfair hiking of tax rates, unreasonable maximum price controls, and the rights issues of the office-bearers. All of the above is certainly going to impact negatively on the urge to economically associate with a given country (Alder 2008). In this case study, at present, Scandinavia being a democratic country does not depict any of the above economic vices. This could be a substantial reason as to why Ayran yogurt is likely to perform well in this market (Richard, 2004).
The attitude and treatment shown to foreign investors could be a reason enough to bar investors from ever investing in a given region if poor. A good government seeking to establish a good working partnership with potential investors will seek to market its relationship-building techniques in the best way possible. However, if the contrary is done, the number of investors interested in associating with such a system will significantly reduce. In this meticulous case, the investors at hand have established that the Scandinavian government is supportive in the development of not only its economy but also that of the foreign investors. Thus, Ayran manufacturers would have to exercise restraint in their interaction within the administration and available market (Richard, 2004).
The laws and regulations set of elements such as trade restrictions could be a turn-off to potential investors in they are unreasonably high of stress. In a way, no one will ever want to venture into an economy whose host country has rigid rules and regulations. Also if the legal requirements of putting up a business structure are excessively many and unrealizable, it becomes economical to let go. In marketing, this situation is best defines a scenario in which a potential opportunity translates into a challenge. Scandinavia has a reputation for setting fair legal expectations of a business which is a pull factor to investors. Thus, fewer legal hurdles are to be experienced by the marketer at hand (Richard 2004).
From the social dimension of the evaluation of the Scandinavian market for the Ayran yogurt product, the company must tailor this product to suit the acceptable cultural norms. This way, it is necessary for the marketer who is researching to evaluate the literacy levels of the Scandinavian people. By doing this, the marketer will establish the level of awareness of the people of Scandinavia and especially now that the product at stake deal with food technological advancement. Several questions may pop up during this feasibility study. Comprehensively, it would be necessary to establish how conversant the people of Scandinavia are to technological advancements constantly changing across the global arena. The answers to this question could be relative as it depends on the countrys technological advancement.
Research has it that Scandinavia though very populous has a high percentage of the literate
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