1. Welcome
1.1 For Sunfoods
1.2 For the Academic Reader
2. The Abstract
3. Thesis Introduction
3.1. The Aim
3.2. Research Background
3.3. The Research Topics
3.4. The Targeted Audience
3.5. Disposition
4. Research Method
4.1. The Constructive Research Method
4.2. The Research Process
4.3. Information Gathering
4.4. Export Guide and Questionnaire Construction
4.5. Analysis Method, Conclusions and Thesis Presentation
4.6. The Broad Scope of the Thesis
5. The Export Guide
5.1. Export Guide Presentation
5.2. Export Readiness
5.3. Trade Condition
5.4. Foreign Market Analysis
6. Questionnaire
6.1. Questionnaire Presentation
6.2. Export Readiness
6.3. Trade Condition
6.4. Foreign Market Analysis
7. Research Results
7.1. Export Readiness
7.2. Trade Condition
7.3. Foreign Market Analysis
8. Discussion
8.1. Export Readiness
8.2. Trade Condition
8.3. Foreign Market Analysis
9. Conclusions
9.1. Export Readiness
9.2. Trade Condition
9.3. Foreign Market Analysis
9.4. The Next Step
10. Supplements
10.1. Site Map
10.2. Glossary
10.3. The Complete Interview
10.4. Acknowledgements
10.5 Sources
10.3 The Complete Interview
The interview was conducted in order to give a picture of Sunfoods' Export Readiness.
a) Does Sunfoods presently export?
Yes, to the USA and Singapore. Sunfoods has exported to Singapore since six years back and to USA since last year. To the USA we export only Konnyaku-Chip and to Singapore we export a number of konnyaku based products, including Konnyaku-Chip
b) Is exports given high priority within the company?
We prioritize exporting even higher than domestic sales and we hope to increase our export sales in the future. We would like to target USA, Canada, Europe or Australia. In Asia there are price level problems and therefore USA, Canada and Europe appears to be the most suitable markets.
c) Does the company have personnel with knowledge of foreign cultures and languages?
No, but we have a consultant stationed in Tokyo and his daughter studies at San Francisco University in the USA. She has supported us with interpretation during our visits to the USA.
d) Does the company have personnel with export experience?
As it is now, only I, and the president of the company have export experience. As it is now the company president is considering starting up production in China. He is mainly concerned with production and I am more involved with sales.
e) Is the company financially sound?
When we export, we do not export directly. We use a trading company. Direct exports involve higher risks than we can afford to take.
f) To which extent would the company be able to meet an increased demand, coming from export sales?
Sunfoods have excess production capacity. Presently Sunfoods produces 20 tons of Konnyaku Chip per month. With the production capacity that we have now it is possible to produce up to 100 tons per month, with the support of subcontractors. The Konnyaku-Chip ingredients are produced by subcontractors and they can meet orders for a production of up to 100 tons per month. 100 tons of Konnyaku-Chip per month is thereby Sunfoods highest possible production level. Each package of Konnyaku-Chip contains 20 grams of Chips, which means that we can produce 5000,000 packages of Konnyaku-Chip each month.
g) Does the company's product have a distinct competitive advantage?
Konnyaku-Chip is only produced by Sunfoods and so it is a unique product. We have a patent for the Konnyau-Chip recipe in USA. We mostly sell the product as a diet-sweet for women. The product is popular and has gotten top rankings in national TV research programs. Konnyaku-Chips strong points are mainly the fact that it is healthy, has few calories, contains no cholesterol or lipid, has plenty of dietary fibers and tastes sweet. In addition to this it contains no artificial additives such as preservatives.
People on diets eat Konnyaku-Chip and the customers who purchase Konnyaku-Chip through Sunfoods homepage may buy 30-40 packages at a time. These are the so-called 'heavy-users' and they may buy Konnyaku-Chip for 50,000 yen per month. Rather than selling through supermarkets and convenient stores we have chosen do distribute Konnyaku-Chip through health related shops, drug stores, fashion shops and by mail and Internet. We may start selling through supermarkets in a later stage. However, by avoiding supermarkets initially we are able to set a higher price.
Some customers buy Konnyaku-Chip as a substitute for gum or snacks. Many customers bring Konnyaku-Chip with them in their bags. If one drinks something as one eats konnyaku-Chip one will feel full as the chips expands in the stomach when it comes in contact with liquids.
h) Can the product and packaging be adapted to the host market?
It is quite easy to produce Konnyaku-Chip in different flavours. We are for instance considering producing caramel flavored chips and it is possible to produce chips with flavors adapted to a specific market. The packaging can also be adapted, however the films which are used to make the Konnyaku-Chip bags lasts for 54,000 packages. The question is weather it is possible to sell 54,000 packages with the special prints etc. In the USA we have used seals which cover the original Japanese text. The information on the seal can easily be adapted and specialized to the specific market.
i) Can the product easily be transported to the host market?
Konnyaku-Chips weigh little and generally it is easy and cheap to transport. The chips are not especially temperature sensitive, sometimes we send the chips through refrigerated transportation in summer, but that is certainly not the usual case. To transport the chips to the USA we use container shipment. The trading company has a container in which they transport different products to the USA. It costs us about \3000 to send 4 kg of Konnyaku-Chips to the USA. It is probably more expensive to send items to Sweden. However it might be easier to use the postal services in that case.
The products stay fresh for a year but it tastes best within 8 months of production.
j) Is the product selling well in the home market?
The product is selling well in Japan and the products market share is stable. Recently we have made agreements with a number of mail order companies and television-sales companies. We do not market the product at all.
k) What is the existing customer profile?
Our main target group is women between 14-40. We are about to start marketing a new product called 'Fire Pepper' which is hot and flavored with chicken extracts and Arabic pepper. This product is targeted at men.
Konnyaku-Chip is mainly sold in drug stores, at the Loft-chain etc. However Konnyaku-Chip was initially sold in fashion clothes shops. In the USA Konnyaku-Chip is sold through Japanese-food stores and the chips are mainly bought by second-generation Japanese living in the USA. We get orders from the USA every month. We still do not know whether the white people will like the product. We are performing tests right now. If they do not like the taste, they will certainly not buy the chips.
l) What are the company's expectations of the export venture?
Well, as the economic situation in Japan is so difficult right now it appears like a good idea to try to enter foreign markets. I hope to sell Japanese food all over the world. There are little overweight problems in Japan, but in foreign countries people gain weight dramatically as they get older. If we have the opportunity we would like to enter Europe after USA.
