BOS Brands: Challenges of internationalisation

Epgdsm03 Group 6
Roll nos. 06,12,18,24,30
PRIMARY ISSUE
• To seek additional investment for US opportunity that appeared to be
developing, or they could invest same capital into accelerating their
internationalisation in Europe – perhaps in Germany first and the UK
– a popular exit point for Canada and the USA.
• They could even leverage their brand exposure and distribution
relationships to build the brand elsewhere on the African continent.
SECONDARY ISSUES
• Awareness of Rooibos :They feared whether people will be able to understand it's health
benefits and also if this ingredient could help them replace the other beverages in the market.
• Cultural and origin: BOS team was also not sure whether the product’s South African origin
will be easily accepted in some countries. As far as the Western European nations were
concerned, they were well educated and well travelled population and international awareness
and sensitivity was in-built in their psyche. However the same might not be the case with the
US market if their consumers form a negative impression about emerging countries like South
Africa. Many European consumers were favourably aware of the Rooibos advantages over
conventional tea, but the same cannot be assumed about other western markets. The BOS team
hence had never flaunted their South African roots on the front of the product packing.
• Legal Hurdles: Lobbying, New regulations in EU were always going to be a challenge. They
had to re-brand / rename BOS Iced Tea as Iced Rooibos. But in a way that helped Rooibos to
stand apart from Iced Tea or RTD Tea.
Decision Alternatives for Consideration of BOS
1.Consolidate its foothold within 5-6 countries of Western Europe.
2.Expansion: Expand in EU market and give advantage and build
network and create market. Put the investment in European market and
capture bigger market share and become no 3. Germany, Spain, France.
3.Grab the opportunity from US client Rick Greene don’t wait for
expansion in Europe market.
4. Use home advantage and build brand in African countries to compete
from Lipton and Nestea.
Alternative we would pursue:
• Expansion: Expand in EU market and give advantage and build network
and create market. Put the investment in European market and capture
bigger market share and become no 3. Germany, Spain, France

1. Easier to expansion into rest of Europe EU. Less trade barriers and less
travel across Europe.
2. The channel partners and networking in Europe will help in expansion.
3. Culturally Europe is more aware about SA than Americans because
they were colonisers.
4. European market is consolidated, it becomes stepping stone for more
balanced entry into US and Canadian market.
Sports to promote BOS brand globally

1. Football.
2. Most popular sport in world specially in Europe.
3. Promotions in Packed stadium should be impactful in various
European leagues like UEFA, La liga etc.
4. Sir Alex Ferguson is one of the investor in BOS. He will bring
THANK YOU