|International Marketing |
|Gruma Report |
| |
| I have been asked to prepare a report for Gruma UK subsidiary to assess France as|
|a potential market for their flatbread products, hereare the findings. |
| | |

International Marketing Outcome 1

I have been asked to prepare a report for Gruma UK subsidiary to assess France as a potential market for their flatbread products, here are the findings.

There are a number of reasons why Gruma have expanded its operations internationally and these can be split into two broad categories: - Push Factors and Pull Factors.

Push Factors that Gruma may have to consider are that their own home market maybe saturated and that the company needs to increase growth by providing their products to an international market. Mexico is in economic recession and there is a lack of spending within the country. Another reason is there may be too many other companies supplying the same product in the home market. Economic recession maybe another factor that can be taken into consideration by Gruma, this would result in a lack of spending by the consumers. High cost of production i.e. land labour and capital is another factor to be taken into account by Gruma. Gruma wants to maintain profitability this is why expanding internationally would help to increase their market share. If the products are in the maturity stage of the product lifecycle this means that sales growth is slowing down,