Monday, September 28, 2009

Ch. 4

96% of the companies that export in the U.S. are small companies, and Amy’s is one of them. Since Amy’s products are domestically produced, they avoid licensing and contract manufacturing yet they must still adhere to the principles of the marketing mix. Research must be done to gather information in order to create a global marketing strategy. In terms of marketing, “marketing managers” (in Amy’s case, Rachel Berliner), must evaluate the four P’s: product, place (distribution), promotion, and price. These include such things as product adaptation (cooking instructions may vary), transportation, advertising, and exchange rates.

Amy’s has successfully reached global markets most likely on the strength of their competitive advantage. They are still considered “a big fish in a little pond”. The market for packaged health foods is growing yet has considerably small competition. They can still be considered a niche market in that they (obviously) have good growth potential but aren’t crucial to the success of an abundance of major competitors.

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