Session 7: Bos Brand: challenges in

Internationalization
By Nilanjan Mukherjee (PGP13156)

Situation
BOS is a mid-sized South African firm that specializes in the supply of ready-to-drink healthy
and natural drinks. It is the fastest-growing soft drink company in SA. Mr Dave Evans, the CEO had
plans for expanding abroad and wanted a global presence. The company has a unique selling point
that the products that it made were healthier alternatives and they had natural ingredients. As the
share of other carbonated drinks was decreasing due to changing consumer preferences the market
for such healthier alternatives was increasing. Evans had envisioned to start penetrating the market
with their healthier and natural iced tea, but he lacked the proper knowledge and resource to do a
market penetration.

Problem
The company has its roots in South Africa which produces beverages in parts of Europe and
in Africa. Dave is now faced with the dilemma of whether he should expand to the rest of Europe or
stretch out to US markets. If he remains in the western part of Europe, then it is the largest brand
after Lipton and Nestea. Alternatively, it can expand to France, Spain, the UK, and Germany before
spreading to the rest of Europe. Another decision would be to directly target Canada and US.

Solution
1. Growing in Europe is not only easier due to the lack of language barrier and familiarity of
suppliers and investors but would also give BOS an opportunity to consolidate into a
market leader.
2. Due to regional markets, it will be easy to first penetrate smaller European countries
before expanding into France, Spain, the UK, and Germany.
3. They should simultaneously reinforce their hold on the existing market to eventually
become a market leader.
4. Delivering products to the US will be costlier and since people in the existing market
regard BOS as a local brand, it can easily penetrate this Europe market tapping on their
reluctance to buy foreign brand