The Japanese Market for Yukon Berry Farms

Outline

Selling Haskap Berries to Japanese distributor

• Foreign markets

1. Indirect approach to foreign markets
2. Risk reduction
3. Growth opportunity
4. Japanese culture
5. Low foreign investment
6. Japanese distributors

• Pre-visits before making a business deal

1. Distributors visit
2. Understanding the product
3. Face to face discussion on the deal
4. Yukon Farm’s president visit
5. Clarity on expectations
6. Identifying with the food processing process

 

 

 

 

Page 4 assignment questions

1. When companies have made decisions to enter an international market, they are faced with different options or approaches, which they are to choose from in carrying out their options. However, it is important to note that most of the agricultural farms that deal with raw products, they often use agents or rather distributors in an indirect approach. Though there is less control while using an indirect approach, it has one advantage as it reduces on risks and hence the Yukon berry Farm will have an opportunity to explore on the growth options should they decide to make a deal with the Japanese investor (Blenkhorn, et al, 2005).
2. It is important for the Yukon Berry Farm’s president to understand that there are only a few foreign companies those start-up businesses in Japan since they are afraid of the Japanese business culture. However, most of the foreign companies only enter the Japanese market through a distributor. Therefore, it is very inherent for Yukon Berry farm to consider entering a business deal with the distributor rather than selling their goods directly to the consumers (Blenkhorn, et al, 2005).
3. The Japanese distributor will have to consult some of the other stakeholders in his company as this will help the entire team to work together in identifying values, priorities, and objectives of the distribution plan initiative.
4. It is quite important for the distributor to visit the farm so that he can be able to actually see the berries before he can enter into a deal. This will allow the distributor to see the berries and if it is fitting to his expectation then it means that he will agree to the business deal. Mid-June is the best season to invite the distributor as this is the season for early ripening of the berries.
5. However, the president ought to stick to the agenda of the visit only to the farm and thus should not organize tourist activities for the distributor.
6. Similarly, it is important for Yukon Berry Farm’s president to make an appointment with the Japan distributor so as to visit the food processing company so as to be able to see how the berries are packaged and handled. This will of great importance as it will enhance the president to identify with how they are required to present their berries to the distributor so as to have a smooth business working relation.
7. The president should organize for an interpreter just in case there is a language barrier between the distributor and the president.
8. The farm should plan on making their first sale after four months from the signing of the business deal since the berries will be ready by mid June.
9. After the visit, the two parties will be in a position to be clear about their expectations and hence Mr. Haskap should expect a sale after the first visit.
10. The company should diversify their sales to varying customers as this will reduce the risks and increase on sales.

 

 

 

 

 

 

 

Business reply

Mr. Yoshimoto

Company Representative,

Shokuhin Corporation,

474 Miyagoka,

Japan,

12/02/2018.

It is with great pleasure; we would like to inform you that we have received your letter in relation to an interest on distributing our berries. Having gone through the business deal that you had put forth, we are ready to enter into a business relationship with you. We are inviting you for a pre-visit at our farm as from mid-June so as to further discussion on the business deal. Please let us know a suitable time for having this visit.

Sincerely,

Haskap

President  

 

 

Appendix

Haskap nutritional value and Yukon’s tourist attractions

Yukon farm is the largest organic berry producers.  Yukon Berry Farm’s were launched in the year 2004. The company’s mission is to offer healthy, sustainable and organic berries in Yukon. The farm comprises of forty acres that support the growth of 4000 berry plants which produce at least 400,000 pounds of haskap berries per season. Haskap berry is produced early in the summer and thus they are readily available at the end of the summer. Haskap berries for processing are sold at a price of $1.5 per kilogram (Wohlgemuth, 2012). We offer the Haskap berries in three forms, jam, fresh or frozen berries but there are still other forms that are underway. The farm became a certified organic farm in April 2016 and there are certificates in support of this. Apart from farming, the farm offers education to farmers on sustainable farming (Wohlgemuth, 2012).

            Haskap berries have more antioxidants than the blueberries and thus are regarded as very nutritious. Their nutritional value has resulted to their high demands from people across the globe and more so in Canada. They have a high level of potassium that amounts to 190mg, calcium that amounts to about 38mg, phosphorous that amounts to 25mg, 0.6mg of iron. It also contains some other nutrition such as vitamin A (130mg), vitamin C (44mg), vitamin E (1.1 mg) and energy of about 53kcal (Wohlgemuth, 2012).

Yukon has numerous tourists’ attractions and numerous tourist activities within the Yukon Territory. There are wilderness parks where tourists can hike, bicycle ride or even horse ride as they enjoy the beautiful scenery of the land. The land offers unique sightseeing lands with a range of amazing wildlife and mostly during spring. It has an excellent highway that offers stunning views of the undulating and rugged terrain. Yukon River offers tourists a superb opportunity to canoe and to whitewater raft. The environment in Yukon is just like none other. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

Blenkhorn, D. L., & Fleisher, C. S. (2005). Competitive Intelligence and Global Business. Westport, CT: Praeger.

Wohlgemuth, D. (2012). Stimulating Commercial Berry Production in the NWT Capital Region.