Executive summary

The Lucas’ Pawpaw Remedies Company was created from the ideas of the famous botanist, Dr. Thomas Lucas, who suggested that the pawpaw fruit had several aspects of being used as a cure for several illnesses. From these ideas the Lucas’ Pawpaw Ointment, which has always been used as a proven remedy to various diseases, was developed.

The socio-cultural, technological, environmental, economic, political, and legal factors found in the respective country seem to have a great positive influence on the production of the company. As such, reviewing these factors and setting up the company accordingly will be of great benefit to the company. For instance, t

Introduction

Objective

The objective of this Lucas’ Pawpaw market entry paper is to develop the means that the marketing department could use to enter the Canadian market and be able to sustain itself in the new market. As such, the paper discusses briefly the factors that influence the entry of the company into the new market.

Background

It is clear that the benefits that accrue the pawpaw fruit are much greater than the aspect of its sweet taste. For more than a century now, Dr. Thomas Lucas came up with the idea of using the pawpaw fruit as a source of antibacterial ointments (Lucas’ Papaw Remedies, 2014). Since then, the pawpaw, also known as the papaya, has been found to have several medicinal benefits on human beings. With the numerous pieces of research conducted, the pawpaw fruit has been discovered to reduce the risks associated with chronic illnesses as the heart disease, diabetes, as well as cancer. More also the exotic fruit can be used to reduce the levels of blood pressure, helping the process of digestion, protecting the skin through fighting skin rashes, and improving the healing process of wounds. Therefore, most of the ointment formulas developed by the famous botanist, Dr. Lucas, are still in play, as they have not yet been altered over the century. These ideas developed by Dr. Lucas also made it possible for professional make-up fashionistas to use the products of this fruit as highlighters or even be added as gloss lashes and eyebrows. This factor has made large numbers of people from various regions of the world to appreciate and demand the products by the Lucas Company. As such, this is an aspect that the Lucas Manufacturers focus on as it is the core objective of the company; to produce quality products that serve the purpose anticipated by the consumers.

The ingredients used to manufacture the final products include fermented pawpaw fruits as well as some pharmaceutical petroleum materials like those found Vaseline. The Lucas Pawpaw balm is quite natural and contains the petroleum products, which makes it safer to use as well as most preferred by several skin care experts. Lim (2013) asserts that the natural ointment does not contain artificial ingredients or harmful chemicals like sodium, and it is easily found in the health food stores.

This marketing strategy focuses on advancing the marketing segments in Canada by discussing the different ways that the Lucas’ Pawpaw Remedies Company (LPRC) could penetrate the Canadian market.

Research methodology

Several pieces of research have been conducted on various firms in the food industry and how they make their way into markets found in other countries. However, very little research has been conducted on the LPRC as well as the population statistics in Canada that would be interested in the products. As such, most of the information about on this paper was obtained from research journals that are mostly on business and the population statistics of Canada. Additionally, the information on the Gross Domestic Product (GDP) of Canada, and company information obtained from the Lucas’ Pawpaw Remedies Company will also be essential.

Scope

The area of this study will be quite general because it will involve the whole Canadian nation. Nevertheless, some of the targeted populations are mostly found in the large towns, which forms the basis of this study because the population there is huge. In addition, the process of entering the market in Canada will require enlightening obtained through the marketing environment analysis. Statistics on the populations demand good health oriented food products will also be essential as well as the strategies established by the marketing department.

Rationales of bringing the Lucas’ Pawpaw Remedies to Toronto, Canada

Rationale for choosing Canada

In Canada, the historical population growth rate seems to be escalating tremendously because the presence of some indigenous populations, as well as migration of people into the country (Kemp, 2008). According to the “Statistics Canada,” the country’s population is more than 35 million, which makes up about 0.5% of the total population in the world.

The country’s Gross Domestic Product (GDP), which is the value of all the final products produced by the country in a particular year, seems to be on the rise as from the year 2011 to date (“Central Intelligence Agency,” 2014). As of 2011, the GDP was estimated to be 1.469 trillion dollars, while that of 2013 was 1.518 trillion dollars, showing a positive shift in the country’s purchasing power parity. With the information, it will be easier to estimate the purchasing power of the population and know the best regions to target as for the marketing purposes.

Rationale for choosing Toronto

Toronto City is composed of more than 5% of the total Canadian population, making it the largest city in the country and the best place that Lucas’ Pawpaw Remedies Company could develop its clientele. Toronto also is made up people who are huge investors focusing on the health care issues and are ready to use the products to better their lives. Moreover, the availability of numerous pharmaceuticals in the city give the LPRC the opportunity to utilize the large numbers of health care professionals for the purpose of recruitment. These health care professionals could also be a source of information to further the basic research on the pawpaw products. Nonetheless, the target market will not be limited to Toronto alone but the Lucas’ Pawpaw Remedies Company will also seek to explore other cities like Montreal and Hamilton.

Toronto’s marketing environment analysis

Steep analysis

Socio-cultural factors

The population growth rate of Toronto between 2006 and 2011 has risen by 4.3% with teenagers making around 17.5% while the elderly (above 65 years old), making 13.6% of the population. As such, the biggest percentage of the population are the youths who make up more than 60% of the population with the number of females exceeding the males (Statistics Canada, 2011). Consequently, the Lucas’ Pawpaw Remedies Company will be able to make an easy target for the youths, especially the women who are much better consumers of the product.

Technological factors

There are several forms of transport systems in Toronto including the road, rail and air networks that connect the city to other regions in the country that are of great significance. These transport systems are a stepping-stone for the company as well as the aspect of industrial evolution and restructuring in the city. It is estimated that the government has secluded around 31.3 billion dollars for use in domestic research and development, which will make it easier for the company to enhance its research on producing products that are more efficient. Moreover, the city has massive communication networks like the Internet, newspapers, and televisions as well radios that could be used by the company to pass a message to the people regarding its products.

Environmental factors

Considering the physical environment in Toronto that would be beneficial to the Lucas’ Pawpaw Company, it can be noted that has a better business environment than other cities in the region. For instance, there are several grants given to the municipal governments to facilitate the construction of commercial buildings, thus reducing the tax rate of properties and construction taxes.

Economic factors

Recent reports categorize Canada as the eleventh country in the world with the largest economy with massive growth in the manufacturing and service sector. As for Toronto, it is classified as the seventh largest stock exchange city in the world with a declining unemployment rate as well as high costs of living. (Statistics Canada, 2011). Thereforebecause it will not only boost the company’s sales, but it will also ensure the longevity of the company’s life.

Political and legal environment factors

The state of Canada operates as a monarchy with a parliamentary system with the legislative powers divided between the federal and provincial governments. The government is divided into the three branches, the executive, legislature and the judiciary with the Sovereign being Queen Elizabeth II and the Mayor of Toronto serving as the head of the city. The city’s council is unicameral and delegates all matters concerning the local, routine as well as planning issues. As such,plan for the huge amounts of funds it receives from Ontario’s Government, making everything much easier for the business industry.

References

Central Intelligence Agency. (2014). The World Factbook. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/fields/2001.html

Lucas’ Papaw Remedies. (2014). Lucas’ Papaw Ointment 25g Tube | Beautylish. Retrieved from http://www.beautylish.com/s/lucas-papaw-remedies-lucas-papaw-ointment-25g-tube

Statistics Canada. (2011). Canada’s Population Estimates. Retrieved on May 29, 2015,     from http://www.statcan.gc.ca/daily-quotidien/110324/dq110324b-eng.htm

Lim, T. K. (2013). Edible medicinal and non-medicinal plants: Volume 5.

Kemp, A. (2008). The immigration invasion: How third world immigration is destroying the first world — and what must be done to stop it.