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Free «Cherries with Charm» Essay Sample

Alara Agri is a cherry and fig producer/distributor company from Turkey that was started in 1986. Three years later, Kerim Taner joined his father and has been struggling to improve distribution channels as well as develop a better sales infrastructure. The company can only be classified under BCG question marks on the BCG matrix model due to the following reasons. First, the company is trying to repackage the cherries from loose boxes to grab packs and punnets. Grab packs and punnets are new entrants that the German and Belgian retailers do not understand their effect.

Secondly, despite having a ready market in the United Kingdom and other European countries, cherries are still regarded as "luxuries" as evident on exhibit 3 (p. 12). Compared to other seasonal fruits such as apricots and other luxury food products such as chocolates, they were outdone by them. In addition, the price of cherries was high above other fruit because of being seasonal as well as being perceived as a "special treat" (p. 3).

On the product life cycle (PLC), Alara Agri cherries lie under the growth stage. From exhibit 5 on revenue growths, it evident that the venture was becoming more profitable. Besides, Taner co-founded New Fruit Company and also formed an alliance with Utopia UK in an effort to increase the market share. Consequently, Alara Agri faced competition from smaller Turkish companies that were strategically placing themselves in the market.

Moreover, the "100-mile/kilometer" guideline posed a great threat to the company's market in the United Kingdom (p. 8). Taner also wanted to build a brand name for Alara Agri as a way of advertising the company in the U.K as well as for the company to be recognized as a global leader in the field.

   

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