Mexico appears as an appropriate choice to entry a new international market in the longer term, because of the followingaspects: a favorable demographics, a huge potential for count line sales, a quick adoption of the American tastes, and finally the presence of few competitors.
We shall now consider the advantages and thedrawbacks of each distributor to decide on the option that provides the optimum market entry approach for Neilson in Mexico.
However, the limited access to few retail stores, and consequently itslimited network are two important obstacles to become an attractive distributor for Neilson International. Furthermore, the Mexican peso known as a volatile currency and the lack of experience of GrupoHajj in the confectionary industry are also major drawbacks for becoming an appropriate distributor.
Grupo Corvi is a different case to take into account.
On the one hand, both its knowledge ofthe market and its experience on the food segment could have been considered as great advantages to become a potential distributor. We should keep in mind that Grupo Corvi has an important access to adeep infrastructure that makes it one of the first successful representatives of the Mexican confectionary market (it represents actually nearly 70 percent of that market). Finally, we think that itslack of knowledge of the American and European style countline products can be seen as an advantage because it can lead to a differentiation strategy based on a diversification perspective. To put itin a nutshell, the competences of Neilson International mixed to those of Grupo Corvi that appear totally different ones from the others, could lead in the longer term to diversification and thesatisfaction of different customers and new targets.
On the other hand, Grupo Corvi’s case shows some obstacles to be considered as an appropriate distributor for Neilson International. First of all,...