Introduction To Tan Hiep Phat Trading-Service Limited Liability Company.pdf

Established in 1994, Tan Hiep Phat Trading-Service Limited Liability Company originated as the Ben Thanh Brewery and Beverage Factory, specializing in the production anddistribution of b

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INTRODUCTION TO TAN HIEP PHAT TRADING-SERVICE

LIMITED LIABILITY COMPANY

GLOBAL STRATEGIC DEVELOPMENT

SWOT MATRIX AND SWOT ANALYSIS

PART 7

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5

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In today's global business landscape, penetrating

foreign markets is pivotal for business success The

move not only broadens access to new customer

segments but also brings advantages in cultural

diversity and production costs This process enhances

competitive standing and streamlines business

operations, positioning companies favorably amidst

escalating competition

However, to further expand andcapitalize on global marketopportunities, we recommend TanHiep Phat extend its business footprint

to the United States, one of the mostpromising markets globally This essaywill outline Dr Thanh's plan to enter theU.S market, covering goals, targetcustomers, competitive analysis,product strategy, models, pricing,distribution, and marketing, along withrecommendations to ensure Dr

Thanh's success in the U.S market

Dr Thanh, a well-established

beverage brand in Vietnam with

over 20 years of experience,

has garnered trust through

high-quality products, reasonable

pricing, and effective

marketing Presently operating

in over 60 provinces nationwide,

Dr Thanh boasts an annual

revenue exceeding USD 2

billion

INTRODUCTION TO TAN HIEP PHAT TRADI SERVICE LIMITED LIABILITY COMPANY

01

on Tan Hiep Phat Corporation produces and markets products that

are beneficial to the health of Asian consumers, with suitable

flavors and international standards

io To become a leading conglomerate in Asia in the beverage and food

industry

Established in 1994, Tan Hiep Phat Trading-Service Limited Liability Company originated

as the Ben Thanh Brewery and Beverage Factory, specializing in the production anddistribution of beer and beverages The company is currently a member of the VietnamBeer - Alcohol - Beverage Association

Today, the company has evolved into one of the largest conglomerates in Vietnam,boasting an annual revenue in the billions of dong, consistently leading the domesticand global beverage market

With a professional workforce at the forefront of understanding the ever-changingneeds of consumers, the company has established a distribution system that caters toboth domestic and international demands

OVERVIEW

Customer satisfaction

International standard quality

Social and community responsibility

Uyen Phuong, Deputy General Director of Tan Hiep Phat Corporation, “Leaders must

be genuine role models, able to speak and act in accordance with core values This

is foundational for disseminating values to high-level, mid-level, and ultimately,frontline personnel”

The leadership team creates conditions for employees to take ownership of theirwork and maintain their livelihoods Employees can volunteer for "three on the spot"work arrangements if they manage their personal lives well Those with smallchildren or no one to look after them can work from home Whether working on-site

or remotely, there is no difference, and no leniency is shown Mutual support isfeatured, providing a sense: "if you're in difficulty, we've got your back."

TARGET CUSTOMERS

Target Customer Groups

- Consumer Group: This is Tan Hiep Phat's primary customer group, consisting ofindividual consumers, households, and groups purchasing Tan Hiep Phat's productsand services

- Distributor Group: This customer group aids Tan Hiep Phat in delivering products toend consumers It includes distributors, agents, and supermarkets nationwide

- International Customer Group: This group comprises customers who purchase TanHiep Phat's products in foreign markets It includes consumers, distributors, andinternational partners

To meet the needs of each customer group, Tan Hiep Phat has developed suitablemarketing and sales strategies For the consumer group, the focus is on brand andproduct promotion, enhancing product quality, and offering reasonable prices Forthe distributor group, Tan Hiep Phat provides incentive programs and sales support.Regarding the international customer group, Tan Hiep Phat concentrates on marketexpansion and brand-building in potential markets

Age range: 18-55

Above-average income

Concerned about health and product quality

Individuals who prefer an active lifestyle, regularly participate in sports orentertainment activities

Those who favor brands and recognize Tan Hiep Phat's products, possibly due tothe company's promotion and marketing strategies

Characteristics of Tan Hiep Phat's target customers:

Exporting involves goods leaving the Vietnamese territory or entering a special area

within Vietnam considered a separate customs area according to legal regulations

Therefore, domestic production and serving the domestic market remain crucial,

serving as the primary business activities for Tan Hiep Phat

With Tan Hiep Phat's beverage and bottled food products distributed in all 63

provinces of Vietnam and exported to 20 countries worldwide, such as Japan,

Australia, Canada, the Netherlands, South Korea, Singapore, Tan Hiep Phat has

surpassed the "Single-Country" strategy to operate with an "export" strategy

INTRODUCTION OF DR.THANH

NAMING

Dr Thanh officially entered the market with an interesting reason behind its name.Firstly, "Thanh" here signifies clarity and purity, aligning with the slogan "purifying thebody." Secondly, the name coincides with its owner, General Director Tran QuyThanh

- Green tea: Dr Thanh commands over 20% of the market

Some Dr Thanh products in the Vietnamese market:

- Herbal tea: Dr Thanh is the leading brand, holding over 50% of the marketshare

- Energy drinks: Dr Thanh dominates 30% of the market

POSITION IN THE VIETNAMESE MARKET

Dr Thanh is currently featured in various mass media, seminars, conferences,entertainment activities, and displayed items in stores

Specifically, a study by a group of students from Ho Chi Minh City University ofIndustry on the selection and use of Dr Thanh Herbal Tea by students showed that:

1 P E S T E L POLITICAL

ANALYSIS OF THE EXTERNAL ENVIRO

Before exporting beverages to

the U.S., FDA (Food and Drug

Administration) registration and

compliance with food safety

standards are mandatory

Adherence to QC/QA standards

for product quality assurance,

periodic testing, and reporting of

test results

Products will be subject to

various taxes such as excise tax,

income tax, advertising tax (in

some states), corporate tax, and

retail tax

Consumer protection policies

include regulations on

environmental protection and

warnings about potential health

risks from excessive consumption

of beverages

Environmental regulations:

regulations aimed at protecting

the environment to ensure

sustainability in production and

The inflation rate is relatively stable(4.1%)

The United States has experienced arelatively rapid recovery in the regionwith a stable pace after the Covid-19pandemic

=> This promotes the efforts of each individual to the highest level to achieveoptimal excellence in each stage.

Growing preference for non-carbonated, low-fat, and low-sugar beverages in the U.S.Increasing demand for products with natural ingredients and high nutritional value.Environmental awareness among U.S consumers poses challenges related to plasticwaste

Young population, a high labor force, and a high demand for beverages

HOFSTEDE CUTURAL DIMENSIONS

Masculinity and Femininity: Masculinity and Femininity vary across regions,communities, and ethnic groups in the diverse U.S culture Generally, the U.S leanstowards masculine values, valuing money, fame, and success Decisiveness indecision-making is prominent In their work, they are very unlikely to let emotionsinfluence their judgments and actions both within and outside the company

Power Distance: Power distance in the U.S is noticeable but not excessively high It

is gradually decreasing, and decisions from higher-ups may face challenges fromemployees Competence is valued over seniority

Long-term orientation: The United States typically has a short-term mindset,emphasizing immediate success and valuing flexibility and adaptability Thesavings interest rate in the U.S is very low (close to 0%), and they tend to investmore The low long-term orientation in the U.S suggests that its people have agenerally short-term and highly practical mindset They are willing to overlookeverything, including environmental damage and market disruptions, to achievemaximum profit and accomplishments, regardless of the future consequences

=> This drives strong development for U.S businesses, benefiting the economy, butthe consequences for future generations in the U.S could be extremely challenging.Americans need to shift their short-term mindset to a more long-term perspective.Risk avoidance: The U.S also exhibits a low level of risk aversion, indicating awillingness to familiarize themselves with and accept uncertainty Managers arequick and relatively comfortable with embracing risks They are also more open toinnovation despite the likelihood of making mistakes

Individualism, Collectivism: The high individualism in the United States indicates apreference for working independently Individuals are encouraged to makedecisions and challenge them to bring about positive changes for products,marketing methods, etc Therefore, Americans often favor decisive leaders, andnew ideas are usually welcomed When working individually, individuals bear fullresponsibility for their work, and the higher pressure leads them to strive to performtheir tasks to the best of their ability

Easy promotion of products

through online channels and digital

marketing

The United States has a

long-standing tradition of advanced

technology and has almost always

been at the forefront of the world

The technology in the production of

beverages is no exception There

are highly automated

technological processes in place

For example, the Coca-Cola

production line utilizes iso-pressure

pouring technology, an optical

detection system, and a PLC

control system from OMRON for

automatic process monitoring,

among many other advanced

technological devices

New manufacturing and

packaging technologies are

employed to maintain product

The United States has a rigorous, detailed,and complex legal system that ranksamong the top in the world The legalframework is considered a formidablecommercial weapon for the U.S Foreignpolicies and international cooperation areintegral to the United States Strict actionsare taken if businesses fail to comply withregulations, safety standards, taxes, etc.Regulatory bodies routinely monitor andinspect businesses The U.S legal systemoperates on a federal system, and thelegal sources include the supreme nature

of federal laws, the roles of each branch inthe legal system, legislation, judiciary,administration

Labour: The workforce in the Vietnamese beverage industry is young, dynamic,and the population within the working age is relatively high, providing anabundant source of labor.

Capital: In the beverage industry, capital plays a significant role To manufactureand distribute beverages, companies need to make substantial investments inprocessing and production machinery, packaging lines, and bottling Currently,only a few businesses have invested large amounts in the industry An example isthe project of SUNTORY PEPSICO Vietnam Beverage Company Limited, whichinvested 185 million USD (approximately 4.374 trillion VND) in the H ng Thư ạnhIDICO Industrial Park with a total land area of 200,000 m2 In 2019, Tan Hiep Phatsought a strategic partner willing to invest 3 billion USD At that time, Tan HiepPhat also turned down a 2.5 billion USD cooperation offer from Coca-Cola, citingdifferences in vision between the two parties In addition to this new plan, TanHiep Phat has invested 500 million USD in three factories and plans to invest anBasic factors:

FACTOR CONDITIONS

FACTOR CONDITIONS

Natural Resources: Vietnam is a country with considerable diversity andabundance of raw materials for the production of beverages The diverse terrain(plateaus, plains, mountains, etc.), various types of soil, and rich mineral resourcesprovide favorable conditions for the beverage industry, allowing the use ofprimarily domestic raw materials without the need for extensive imports However,

in the bottling process, Vietnam has not been able to produce pure plastic pelletsdomestically and has to import them from other countries to meet the domesticdemand and facilitate exports This is a limitation in our country's plasticproduction process

Basic factors:

Specialized skills of the workforce: The high-quality workforce is still weak andinsufficient, especially in the research and development sector To supplement theworkforce for this industry, Vietnam has developed programs in beverageproduction training at vocational colleges and universities (such as theVocational College of Italy Vietnam, Vocational College of Beverage Production,Dong A University of Technology, etc.) However, statistics and forecasts regardingthe workforce in the industry are still lacking

Scientific foundation, infrastructure: There are already production facilities withmodern equipment, machinery, and technology in Vietnam, such as Tan HiepPhat's factories (featuring the Aseptic ABF - Aseptic Blow Fill production line withdry sterilization technology), a plant with a capacity of 800 bottles/minute, HanoiBeverage Alcohol and Beer Joint Stock Corporation (HABECO), RED BULL LimitedLiability Company, etc However, Vietnam's scientific and infrastructural platformsstill lack competitiveness compared to major beverage producers abroad, such

as Coca-Cola and Pepsico

Advanced factors:

Bottled water: According to Masan, the bottled water market in Vietnam, with amarket scale of 17.5 trillion VND in 2021, is forecasted to grow by double digits inthe short and medium term This growth is attributed to the declining quality ofwater sources in some areas, leading to an increased demand for clean andsafe drinking water Additionally, a significant portion of the population still lacksaccess to clean water due to rapid population growth and urbanization Theseare seen as promising signals for the growth of the bottled water market.

Nutrient-rich product lines: Consumer preferences tend to favor products withhealth-beneficial ingredients, such as fruit-flavored water and nutrient-richbeverages (e.g., bird's nest drinks) With improved consumer incomes, thisproduct category is expected to grow in the medium and long term

Soft drinks: This product category is associated with the development of food chains and the growth of entertainment services (e.g., movie-watching).Nestle Vietnam, with its Milo product line, competes with Pepsi and Coca-Cola indistributing through these channels, demonstrating the diversification of theindustry

fast-Beverage Potential in Various Segments:

Forecast for Beverage Consumption in the Coming Years:

The forecast for the growth of beverage consumption during the 2022-2024 period

is expected to range between 4.3% and 4.8% as the economy returns to normal.Factors such as the reopening of dining establishments and the continued push fore-commerce are expected to drive this growth

DEMAND CONDITIONS

Currently, to meet domestic demand and facilitate export activities, the plasticindustry in Vietnam has to import raw materials from foreign countries Vietnamhas not been able to produce raw plastic granules domestically and relies onimports from other nations, presenting a limitation in the country's plasticproduction process.

The trend of reducing the import turnover of beverages in Vietnam is evident, with a14% decrease in 2022 compared to 2021 This decline indicates that Vietnam hasbecome more self-sufficient in supplying the beverage industry

Vietnam boasts diverse supply sources, allowing businesses to procure fromfarmers or even invest in establishing farms and plantations to independentlysupply raw materials

Rapidly developing logistics support the efficient distribution and delivery ofproducts to consumers There are numerous agents and stores nationwide

Diverse and popular online advertising platforms make reaching customers easierthan ever

RELATED AND SUPPORTING INDUSTRIES

FIRM STRATEGY, STRUCTURE, AND RIVALRY

Development strategy: The beverage industry in Vietnam until 2025, with a visiontowards 2035 (Decision No 3690/QD-BCT dated September 12, 2016), and theDevelopment Plan for the Beverage Industry in Vietnam until 2025, with a visiontowards 2035 The industry's development is based on balancing production andconsumption among regions nationwide, ensuring harmonized interests Theindustry will progress by applying advanced technology and equipment,emphasizing sustainability, and ensuring food safety and protecting the ecologicalenvironment Encouragement is given to economic entities to invest in large-scaleproduction of beverages, utilizing modern equipment, and technology, ensuringfood safety, and environmental protection Production of beverages from freshfruits and nutritious drinks is encouraged, utilizing domestic raw materials, andmanufacturing natural mineral water

FIRM STRATEGY, STRUCTURE, AND RIVALRY

Suntory PepsiCo Vietnam Beverage Company LimitedTan Hiep Phat Group

Red Bull Company Limited

Lavie Beverage Company Limited

Vinamilk Company Limited

Vinh Hao Mineral Water Joint Stock Company

Unilever Company Limited

Brand Equity: National brands strongly influence customers' willingness

to purchase and the price they are willing to pay for beverages.Regarding market share, it cannot be denied that internationalbeverage brands have a deep impact on the industry However,Vietnamese brands are increasingly gaining ground

Technology: Technology is a significant competitive advantage forbeverage manufacturers Leading international brands maintain theirpositions in the industry through state-of-the-art production, bottling,and preservation technologies For domestic manufacturers, thepressure to catch up with technology and invest in research anddevelopment is constant, given the increasing investment and rapiddevelopment by foreign beverage companies

Supply and Distribution System: Expanding and dominating the productdistribution market is a trend chosen by most companies to maintainmarket share in Vietnam Leading beverage businesses in Vietnamstrive to build an extensive distribution network As of 2015, Tan HiepPhat had more than 200 distributors across all 64 provinces and cities

New Products: Developing new products is crucial for customerretention However, beverage companies in Vietnam tend to focus onincreasing production volume and ensuring the quality of their coreproducts rather than extensively developing new products

Competitive Factors

FIRM STRATEGY, STRUCTURE, AND RIVALRY

Through the analysis of the beverage industry in Vietnam, given relativelyfavorable production conditions, mainly focused on leading corporations, andwith high demand conditions, supportive and related industries performing well,the industry can produce flavor materials domestically, with the main importbeing plastic from abroad The industry has a moderate level of competitivenesswith a reasonable strategy, structure, and competitive factors, presentingopportunities as a developing sector It receives strong support fromdevelopment policies and various favorable government tax policies However,the industry currently has only average competitive capacity and requiresinnovative breakthroughs to undergo significant transformation in the future

It is a matrix used to assess external factors, thereby helping businesses

evaluate the extent to which these factors pose opportunities or challenges

that impact the business positively or negatively

The total score was 3.08 (> 2.5), indicating that Tan Hiep Phat has a sufficiently well-prepared strategic

aspect The company has effectively leveraged most of the opportunity factors from the external

environment to develop in the country, with a focused effort on exploiting and mitigating challenges

Matrix Analysis Table:

Opportunities Weight Rating Weighted

Vietnam's Distinctive Climate

Convenient geographical location of Vietnam for

trade

Modern consumer preferences and trends

Global economic recovery trend

Multilateral integration, participation in trade

organizations

Abundance of suppliers, ensured raw materials

Rapidly developing technology

Large market size

4

44433220.080.060.090.050.06

0.050.06

0.11

0.320.120.18

0.180.15

0.20.240.44

Threats Weight Rating Weighted

Score

23

434

3

2

Pressure from competitors with alternative

high-quality products

Unhealthy competition in the market

Consumer sensitivity to pricing

Increasing inflation

High standards for food safety and quality

High consumer demands for quality and design

Pressure from competitive rivals

0.090.070.06

0.060.04

0.04

0.08

0.180.210.240.180.16

0.160.12

ANALYSIS OF THE INDUSTRY ENVIRON

1, MARKET SEGMENTATION ANALYSIS

a, Psychological criteria: Social classes

(lower and middle classes)

The first reason that makes Dr Thanh

suitable for this segment is the low cost,

aligning with Tan Hiep Phat's criterion:

"Developing affordable beverages suitable

for everyone" (Tran Quy Thanh - Former

Chairman of Tan Hiep Phat)

The second reason is that the upper class in

the U.S has a luxurious lifestyle, preferring

premium tea and tea from high-quality

sources Considering Dr Thanh's tea, priced

just over 2 dollars, with ingredients being

commonly used herbs, originating from

Vietnam (a country not highly regarded for

tea brands), it is challenging to penetrate

the upper-class market in the U.S

b, Demographic criteria: Age (35-55);

Gender (all genders)

In terms of product nature, Dr Thanh tea isknown as a Functional product (DietarySupplement) because it is extracted from 9types of herbs, aiding in refreshment andbody purification As this tea is beneficial forhealth, recognized and licensed by theVietnamese Ministry of Health, and hasbeen tested through customs in 20territories, the product is absolutely safeand suitable for all ages and genders(children from 4 years old and above canuse it)

ANALYSIS OF THE INDUSTRY ENVIRO

1, MARKET SEGMENTATION ANALYSIS

b, Demographic criteria: Age (35-55);

Gender (all genders)

However, in our assessment, although good

for health, most children (from 4-15 years

old) may not choose Dr Thanh because its

main ingredients are herbs, and the tea

product without sugar with a refreshing

taste may limit the appetite of many

customers Instead, at this age, they may

choose products that are easy to drink and

have a sweeter taste

According to the results of a 2016 study onConsumer Psychology and Behavior ofAmericans, people in the lower and middleclass in the working age range in the U.S

have a "Fast Food Culture," where fast foodand carbonated drinks are always the topchoice for this segment Therefore, the agegroup that Dr Thanh targets in the U.S

market is middle-aged customers (35-55years old) and is suitable for all genders Thiscustomer segment has entered a stablephase in life and is gradually paying moreattention to their health Moreover, the U.S

ranks second in the world for the prevalence

of diabetes, high blood sugar, and obesity, so

Dr Thanh, with its intended purpose, willbecome a favorite drink for many middle-aged Americans of both genders

This is the graph of the Strategic group analysis group in America:

Premium Segment Group

Low-cost and Fair Price Segment Group

a, Price-based Strategy group

For those who appreciate and seek premium teas with complex flavors, originauthenticity, and higher quality, they may be interested in special teas or teasfrom renowned regions worldwide such as Tazo Tea or Rishi Tea In this case, Dr.Thanh tea, with its value and composition, is not suitable for this targetaudience and cannot meet their expectations for premium tea

This is the main strategic group for Dr Thanh as the business has anadvantage in a cheap supply chain, allowing for a lower product cost Withprimarily common herbal ingredients and a relatively low value, Dr Thanh tea

is indeed suitable for consumers in the low-cost segment, those looking forcost-effective products while still aiming to improve their health

In this segment, Dr Thanh has to compete directly with major brands like Coca

or Pepsi, so a suitable strategy is needed to avoid direct competition

b, Quality-based Strategy GroupThe main components of Dr Thanhinclude 9 common and affordableherbs in Vietnam Although it servesdetoxification and body coolingpurposes, the ingredient list of Dr Thanh

is not outstanding Particularly, Vietnam

is not a strong tea-producing country,and the tea types in Vietnam are nothighly regarded, especially whenexported

In summary, price and quality

are the two main factors

shaping the strategic groups

Based on the assessments, Dr

Thanh belonged to low-cost

and medium quality group

Rivalry

Market Share and Number of Competitors

The beverage industry in the United States is large and diverse,

encompassing various products such as carbonated drinks,

non-carbonated drinks, fruit juices, tea, coffee, and many other

beverages Therefore, Dr Thanh needs to face intense

competition Major beverage corporations like The Coca-Cola

Company, PepsiCo, or Dr Pepper Snapple Group are key players in

this industry with numerous well-known brands They possess

strong financial capabilities, distribution power, and the ability to

invest significantly in marketing and product development

Moreover, the culture of fast food and carbonated drinks has a

long history in the United States, making it challenging for Dr

Thanh to compete for market share

Beverage Industry Development: Towards Healthier Drinks

Functional beverages have become a crucial part of the U.S

beverage market due to increased consumer focus on health

The U.S has strict regulations for food and beverages, especially

regarding food safety This is a competitive advantage for Dr

Thanh because its functionality promotes digestion, enhances

immunity, and provides various vitamins Additionally, Dr Thanh

has been recognized, licensed, and cleared for export by the

Vietnamese Ministry of Health to over 20 countries and territories,

ensuring safety

According to 2022 world bank data, 85% of Americans experience

premature skin aging compared to neighboring countries due to

the prevalence of fast food and carbonated drinks Dr Thanh

should highlight its antioxidant properties to combat oxidative

stress and promote skin rejuvenation, positioning itself

competitively against beverage industry giants like The

Coca-Cola Company and PepsiCo

02 Consumers have the option to choose alternativeproducts such as carbonated beverages, milk tea, or

mineral water, all serving the common purpose ofquenching thirst In the case of Dr Thanh, they will have

to compete with existing beverage brands in the U.S.,including Coca-Cola, Pepsi, Keurig Dr Pepper, and localbrands Price and market share competition is prevalent

in the U.S market Dr Thanh, positioned as an affordableproduct, is priced similarly to a can of Pepsi or Coca-Cola However, its market share is not as substantial.Moreover, the taste of Pepsi or Coca-Cola may better suitthe American palate, posing a high risk of substitution for

to other Asian countries Although Dr Thanh is a known beverage in Vietnam, its recognition in othercountries is limited, increasing the likelihood ofsubstitution

Dr Thanh's various herbs are grown in multiple locationsworldwide This creates a diverse supply source and helpsensure reliability in the supply chain The ability to sourcefrom diverse suppliers helps reduce the risk of critical raw

03

Bargaining power

of customers

Low Switching Costs

The United States is a culturally diverse nation with varying

tastes, lifestyles, and consumer preferences American

consumers have numerous choices when it comes to

beverages and can easily compare prices They often seek

savings and make product choices based on value and

quality This places pressure on Dr Thanh to provide

competitively priced and high-quality products Buyer

information is high as buyers can easily compare prices on

the Internet

American consumers can easily access product information

from media and online reviews These reviews can influence

their purchasing decisions, and Dr Thanh needs to effectively

manage brand image and customer reviews Reflecting on

the incident in 2015 when six bottles of Dr Thanh were found to

contain foreign objects such as flies, grass, and hair, despite

subsequent improvements in product quality and food safety

by Tan Hiep Phat, there may still be some impact on customer

reviews

Product Differentiation

Dr Thanh is a unique product with a traditional Vietnamese

flavor, one of the few Vietnamese beverage products eligible

for export to the United States The product carries a part of

Vietnamese and Asian culture, making it appealing to those

who appreciate beverages from Vietnam Most

health-focused beverages currently sold in the U.S are derived from

minerals and various fruits Dr Thanh stands out as one of the

few products on the market that uses herbs as its main

ingredient Thanks to this differentiation, the product may limit

the choices of customers who prefer the natural herbal taste

Threat of newentrants

Food Safety Certification

Entering the beverage market in the U.S is a challenging task

for international businesses The U.S market is strictly

regulated for food and beverages by the Food and Drug

Administration (FDA) The product registration process and

compliance with food safety regulations are crucial steps

that require concentration and significant financial

investment

Intense Competition and Capital Requirements

In addition to facing strict regulations, businesses also have

to deal with intense competition in the U.S beverage market

This market is diverse with many large and small brands,

and to emerge successfully, businesses need to develop

robust marketing strategies and create products with

distinctive features to compete Established beverage

brands have been in the market for a long time and have a

stable market, so entering the market may require significant

investment in marketing and advertising