Lean Cuisine The Product’s Entry into the Turkish Market Place By: Rosemary Soto

Lean CuisineThe Product’s Entry into the Turkish Market Place

By: Rosemary Soto

What is lean cuisine?• Low-fat, Low-Calorie

• Originated in 1981

• Product of Nestlé

• Healthier alternative

• Meets FDA requirements

Business in Turkey• Turkey is a high context culture

• They are more group oriented than individual

• They are very bonded to religion

• Family and rules are really strict

Business in turkey

• We plan to start business in Western Turkey, more specifically Istanbul

• Our target market is working men and women

• We will sell Lean Cuisine in supermarkets such as: CarreFourSA Food and Migros

Pricing• One Turkish Lira (TRY) = $.56

• In Turkey, a meal in an inexpensive restaurant is about 10 TRY ($5.57). A combo meal at McDonalds is about 11 TRY ($6.13)

• In America, we sell Lean Cuisine anywhere between $2.69 - $3.49.

• Therefore, we can sell Lean Cuisine for anywhere between 6 to 9 TRY ($3.34 - $5.01)

Competitors• Superfresh

• frozen vegetables, fruits, pizza and dough

• EasyFood

• ready meals, desserts and ready to eat products such as: cooked dried beans, meat barley, etc.

Turkish economy

• The IMF, International Monetary Fund, defines the Turkish economy as an emerging free-market economy that is becoming largely developed.

TURKEY’S AGRICULTURAL SECTOR

Turkish retail sector• Organized retailers/Unorganized Retailers

• Different types of food retailers

• 168 local chains - 3303 stores

• 21 national/international chains - 8735 stores

WHY INTRODUCE LEAN CUISINE NOW?

• Large variety of choices offered in Turkey’s grocery stores

• Increase in Turkish female citizens conducting full-time jobs

• Increase in family’s disposable income

• Food and beverage industry has highest share in household consumption.

Lean Cuisine Cultural in Turkey

Obesity• 1 out of 3 people are considered obese.

• Makes up 35% of the entire country of Turkey.

• Obesity is found mostly in women.

• With Lean Cuisine, we can help obesity from becoming a bigger issue.

• This makes our product more desirable throughout the Turkish market.

A Muslim country• 74,724,269 population & 99.8% are Muslim.

• No pork in any of our meals.

• We can only provide poultry, beef & lamb.

• Our meals must be stated halal.

• To do this, our manufacturers will take the necessary steps that will make our meals halal.

Nationwide holidays

• 1. Ramazan Bayram - All Muslims refrain from eating throughout sun up until sun down for an entire month.

• Disadvantage for Lean Cuisine because our target market won’t be eating throughout the entire day.

• Sales and discounts can be enforced on Lean Cuisine products throughout the entire month.

nationwide Holidays• 2. Kurban Bayram - Families sacrifice sheep and other animals and feast for 4 days.

• If they’re feasting, they won’t be eating Lean Cuisine.

• Much shorter than Ramazan, however it can still slow sales down.

* Lean Cuisine needs to go into the Turkish market knowing both our strongest AND weakest points so we know what to expect of sales and profits.

Food preferences• Bread is eaten with almost every meali. whole wheat & no added salt.ii. miniature loaves enough for 1 person.

• Soups, stews & sautéi. full with vegetables and choice of meat.ii. lentil, chicken, broccoli, tomato soup.iii. loaves of bread will be added

Food preferences• Brown rice

• Pastas with choices of sauces and chicken

• Pizza

• spinach, mushroom, three-cheese, etc.

* Turkish people aren’t too into flavorful spices and aren’t too big of fans of Mexican & Chinese food choices.

Political structure• Executive

• Legislative

• Judicial

• Officially, all religiously affiliated political parties are banned

• Musaid Association

division of east & west• West: Istanbul, Izmir and Bursa

• Most populated cities

• Istanbul largest city and principal seaport and the cultural and financial center of Turkey. It is the only city in the world situated on two continents.

• East: conflict

• Kurdish - Turkish conflict

• Borders between Syria, Iraq and Iran

Basic Information

• The Republic of Turkey Prime Ministry “Turkish Food and Beverage Industry Report”

• global food and beverage market reached $3,840 billion+ in 2011

• General Directoire of Protection Control (GDPC)

• agriculture - related regulations, laws, communiqués, and notifications

European union• Proactively trying to become member since 1987

• Turkish gov’t. has established laws that follow many of the EU’s regulations for its members

• European Union’s acquis communitaire

MINFAL & tariffs• MINFAL

• different regulations require more documentation from MINFAL in order to get pass customs

• Ex. Turkish law 5996 (also complies with EU harmonization regulation, 1935/2004/EC)

• Tariffs

• most tariffs in fall in the range of 40-50%

• Turkey has vast flexibility in raising and lowering tariffs

documentation• Turkey requires any importer of food to be prepared to present customs with the approved control certificate, as well as other import documentation.

• The documentation includes the bill of lading, original invoice, and certificate of origin.

• The importer should have a completed import license and a pro forma invoice.

• Importers are advised to provide customs with the exporting company’s analysis report for physical, chemical, microbiological, and heavy metal content, and a certificate from the official food inspection agency of the country of origin.

Failed inspection

• If anything goes wrong during inspection in Turkey, Turkish Customs regulates that the demurrage time for imported goods is within 45 days for marine transportation and 20 days for air transport.

- Auctioned as abandoned

Laws & regulations

• Food labeling restrictions

• Veterinary Serivices, Plant Health, Food and Feed Law (NO. 5996)

• labeled clearly, completely and accurately in the Turkish language or

• Lean Cuisine can come into the country in its original packaging but a permanent sticker or label in Turkish must be attached to it before it is cleared in customs

Laws & regulations

• Regulations that directly affect the importing of frozen foods to Turkey:

• Communiqué Food 2002/7

• Communiqué Food 2001/45

• Communiqué Food 2004/46