Strengths:We offer a high-quality product ranked among the top 5 matcha brands in Asia, our brand proposition intended to mix the taste of traditional Asian ingredients in the Nicaraguan cuisine, introducing a virtually unknown flavor for the Nicaraguan population to prepare as many delicious dishes as they can think of. Our brand will enter Nicaraguan Market as a first mover and will have direct contact with the producers and manufacturers in the island, ensuring total control in the production process.Weaknesses:Since our company is a first mover in the Nicaraguan market we will have to build our brand, reputation and client base from the ground up, and entering the market with an Asian product might encounter many challenges, for instance our product is made out of green tea leaves and in Nicaragua green tea is perceive as a dietary supply and has never been used as a cooking ingredient.
On the other hand, aversion to trying new things is part of the Nicaraguan culture, our target customer has to first be convinced of the worth of our product and be enticed to try it. Furthermore, the typical flavors of Nicaraguan cuisine are fruit base, seeds, and spices and are commonly found all over the country at relatively low prices, so it’s important to consider this when pricing our product to enter the market. Lastly, since our product will be imported from Taiwan, transportation cost and handling will most likely raise our retail price.
Opportunities:Nicaragua is a developing country and has one of the most promising economic developments of the region, according to The Economic Survey of Latin America and the Caribbean in 2015 Nicaraguan economy has expanded by 4.7% in 2014 compared with 4.5% in 2013, driven by consumption and external demand. The country aims to improve the business environment by participating in multilateral, regional and bilateral trade negotiations taking advantage of its geographical position as the heart of the Americas. Especially good for our business is the fact that Nicaragua and Taiwan signed an FTA in June 2006, and since both countries have benefited from the exchange of products and services with lower tariff and fewer regulations. Since the treaty came into effect in 2008, the bilateral trade has increased by more than 103%, according to Focus Taiwan.
Since the FTA was signed Nicaragua has experienced a growth of Asian immigrants, most of the businessman and investors looking for opportunities or delegates of companies managing their business operations remotely, in addition , Nicaragua has signed contracts for the construction of an interoceanic canal with Chinese private investors which has also attracted a lot of people to the region, all of these newcomers are part of our target audience because there are likely to enjoy the taste of Asian flavors and purchase our product. Our product is not only new to the Nicaraguan market but also has many health benefits ( weight loss, detox effect, rich in fiber and vitamins, enhance moods and aids concentration, lowers cholesterol and blood sugar, etc), which makes it easier to promote and even more appealing to the public, likewise our advertisement strategy includes the endorsement of Nicaraguan celebrities which is expected to create a momentum for introduction and evolved into a trend among young people and culinary entrepreneurs. Threats:Nicaragua as a Latin American country has a high level of risk aversion and an even higher level of uncertainty avoidance. The introduction of a new flavor into the market might not have a welcoming response at the beginning, people in this country don’t like to try new things due to fear and tend to reject the unknown without experience it first, as we can see in the picture below Nicaragua has one of the highest index of uncertainty avoidance in the hemisphere, with roughly 86%.