I’m studying for my Business class and don’t understand how to answer this. Can you help me study?
Project : Ceylon Cinnamon Tea and Chewing Gum Business
In the modern world, there is a considerable demand for cinnamon powder, cinnamon oil, and cinnamon tea due to their various benefits. Out of these various cinnamon products, I start a business for cinnamon tea due to its demand in the Canadian market. Why people are used to drinking cinnamon is because it carries out many benefits such it controls the sugar level which contributes to appetite control, natural compounds in cinnamon can cut down the fat tissues and fat cells in the blood, it addresses obesity-related diabetes and it helps digestion. In Canada, obesity is a rising threat to the health and wellbeing of people. So, it would be easy to capture the market through the sale of cinnamon tea highlighting the fact that it reduces obesity. This will tempt people to consume cinnamon more often and thereby demand for cinnamon would rise which will finally result in creating a larger market for my product.
There are only a few countries in the world that having cinnamon in their countries. But Cinnamon is a traditional exporting spice in Sri Lanka since a long time due to its unique quality, color, flavor, and aroma. Ceylon cinnamon is originated in the central hills where presently concentrated along the coastal belt now it has a trend of spreading inroads to the inland of the country.
There are quite a high number of cinnamon tea suppliers in this market. But being a Sri Lankan company, I will have a competitive edge over others as Ceylon cinnamon is considered as the finest, pure cinnamon in the world. The international demand is therefore high for the Ceylon Cinnamon. Due to this reason, I can charge a premium price as well. Moreover, there are very few companies that make use of the medicinal value of cinnamon to address burning health problems in the world. So it is suggested that I can address the obesity problem via my product. In most of the internationally available products, they add only Cinnamon flavor and not the 100% natural ingredient. So I can increase the percentage of real cinnamon extract in their product in order to directly help people to reduce obesity levels.
For a business to sustain and grow further I can use one out of four models shown in Ansoff’s model of growth strategies (Ansoff,1965). Therefore, I think it would be ideal for me to release a new product category to the market. If Cinnamon could be used instantly without putting any effort into consumption, it would be a better competitor beating technique in the market. Therefore, I plan to introduce “Cinnamon Chewing Gum” once Cinnamon Tea is established in the Market. I can initially give that Chewing Gum for free with a Cinnamon Tea packet as a promotional strategy. Then once the consumer got the awareness about that product, I can put that also into the market for separate sales.
Further, I plan to get entered into the Canadian market on a medium-scale joint venture otherwise it will be difficult to cater to the whole large market in the beginning after preparing all the export-related legal documents such as Certificate of origin, GSP certificate, and Quality assurance certificate. After establishing proper communication with an existing tea company regarding the joint venture, I can enter the Canadian market. Because when I consider population, health consciousness, and lifestyles for my new business according to the information, I have gathered Canada has a growing market, with an average steady population growth rate of .84% per year and healthy lifestyle trends such as organic and healthy food consumption.
Question:Take at least two competitors and make a comparative analysis of the main features your product/service has (you can use a table). For example, if your product has three main features – you compare these features with those of your competitors (in case you have multiple products/services, focus on the most valuable product in this case). Please, include a short conclusion.
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