Wetzel’s Pretzels announced that it will soon be offering its iconic and special scratch-made pretzels, Bitz, Wetzel Dogs, and lemonade in China. Wetzel’s Pretzels will be focusing on its growth mostly in Shanghai, Beijing, and then South China.
Due to China having high-traffic venues and a growing middle class with passion and interest for foreign brands, Wetzel’s Pretzels seems to believe China is in need for this new fresh product. “Wetzel’s Pretzels provides a fresh product that I believe will be appreciated and embraced by the local community,” said Will Zhu, Wetzel’s Pretzels expansion leader. “Additionally, the brand’s operations are simple and streamlined, enabling our team to provide the fantastic experience to our guests which Wetzel’s has become synonymous with.”
Is this a good idea? Well it could be good if it works, but very bad if it fails. There are many things to consider in the strategy of the company. Things to be considered include the reasons to go global and homework needed to be done before deciding to officially go global. Why go global? What should be looked at when considering going global?
Reasons to go global:
- Diversify your consumer base and your market
- Prolong the sales life of the products currently being sold
- Reduce the dependence the company has in its current market if taking globalization in a large level
- Consider the fluctuations between seasons
- Learn to compete the business and grow the business
When considering going global, homework needs to be done. Questions needed to be asked are questions such as:
- Are people interested in your product?
- Do people want to buy your product?
- Are there cultural differences between your current market and future market?
- Are you targeting the right crowd?
- Will this new adventure lead to increasing sales?
One of the things that Wetzel’s Pretzels did to take a look at their target market was do surveys of their consumer types. They surveyed to see their gender, ethnicity, age, and reason for buying from Wetzel’s Pretzels. When this was done, Wetzel’s Pretzels looked at this data and made their decision from there. Along with this, Wetzel’s Pretzels plans to keep its signature offerings while adding custom offerings in order to satisfy the local flavor of consumers in that area. They have chosen to do some research and development and see what types of tastes the Chinese like, in China overall and in each specific city in China as well.
Is this enough? Due to sales being high by the end of 2017, does that make it a good idea to expand globally?