Market Entry Methods

Most Australian food products on the international market thrive because of their quality. But that’s not the only reason. Considered market entry methods are also imperative. There are many options to consider, from retailer, to e-commerce, to consolidators, to distributors.

Laurence Fazzari, General Manager of International Markets at Snackbrands Australia says there’s not one specific route to success because each market is unique. ‘You’ve got to study each market individually,’ he says.

It may be beneficial to use a distributor who will represent your product exclusively, but in Fazzari’s view, employing a hybrid model is preferable. This may involve working with two or three retailers to ensure a more extensive reach, or employing someone on the ground in the importing country of your choice, so you can manage the supply yourself.

How do you select your method? ‘You really have to look at the market and the way it’s structured on the ground in each of those countries,’ he said. In a market where retail is highly centralised and highly sophisticated, for example, you may choose to team up with one of the major retailers and cover 60% of the market. An exclusive agreement with a major retailer will ensure a higher level of support. It may be that one distributor could give you access to every retailer and every channel, however, you may need two or three distributors; for example, one for supermarkets, one for hypermarkets, and one for convenience.

How do you select which channels to use? For Fazzari, it is never cut-and-dried. ‘It really comes down to the country, the sophistication of the channel structure and the products that you’re offering.’

‘There is no model. It really comes down to a case-by-case analysis.’