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Lean Cuisine

Lean Cuisine. The 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

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Lean Cuisine

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

  2. What is lean cuisine? • Low-fat, Low-Calorie • Originated in 1981 • Product of Nestlé • Healthier alternative • Meets FDA requirements

  3. 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

  4. 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

  5. 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)

  6. 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.

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

  8. TURKEY’S AGRICULTURAL SECTOR

  9. Turkish retail sector • Organized retailers/Unorganized Retailers • Different types of food retailers • 168 local chains - 3303 stores • 21 national/international chains - 8735 stores

  10. 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.

  11. Lean Cuisine Cultural in Turkey

  12. 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.

  13. 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.

  14. 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.

  15. 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.

  16. Food preferences • Bread is eaten with almost every meal i. whole wheat & no added salt. ii. miniature loaves enough for 1 person. • Soups, stews & sauté i. full with vegetables and choice of meat. ii. lentil, chicken, broccoli, tomato soup. iii. loaves of bread will be added

  17. 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.

  18. Political structure • Executive • Legislative • Judicial • Officially, all religiously affiliated political parties are banned • Musaid Association

  19. 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

  20. 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

  21. 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

  22. 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

  23. 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.

  24. 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

  25. 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

  26. 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

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