Competitive Product Analysis
When starting a new business or expanding a business into a new environment, it is important to understand the competitive environment. The level of competition in a given market will directly influence the performance potential of the proposed business. The following is a competitive analysis of the Turkish market for herbal weight-loss pills. This analysis will help determine the market position of the proposed business and determine the best market entry strategy.
Present Market Situation
The market for weight loss products in Turkey is highly saturated by both local and international companies. Most of the businesses in this market are relatively small businesses selling different types of weight loss solutions to Turkish customers. Two of the main competitors in the market include Turk Attar and Mecitefendi. Both of these are companies that specialize in the development of weight loss and health promotion products such as weight-loss teas, pills, and supplements.
Turk Attar is a health supplements retailer. The company sells a variety of products, such as nutritional supplements, herbal teas, and weight loss pills. On the other hand, Mecitefendi is a cosmetics company. The business sells several beauty products aiming at improving customers’ external appearance. Weight loss pills are one of the products sold by the business.
The performance of these two businesses in the market is hard to understand. The market share of businesses in the weight loss market is not understood. This is because the market is saturated by many informal sellers and very small businesses selling different types of weight loss products. The two competitors above probably have a very small share of the market because of this high level of saturation.
Proposed Product Launch and Market Position
It is proposed that this product be launched as an organic wellness product that guarantees consumers of the protection of their health and wellbeing. The Turkish market for weight loss products is saturated by very small businesses, whose products may not be very trustworthy. This product will try to show customers that they can achieve their weight loss goals without compromising their wellbeing.
Market position refers to the manner in which a business presents its products to consumers. A brand must position itself in a way that presents the type of value that the customers are looking for in a product. The business will be positioned as a wellness company. In addition to the natural weight loss pills, the business will offer an extra service, such as weight loss consultation. The customers will likely be attracted to the products of the company because of its wellness aspect.
Sales Potential
Given the assessment of Turk Attar and Mecitefendi, it is clear that this business has great sales potential. The biggest businesses in the weight loss industry in Turkey have not been able to dominate the market. This gives new companies entering the market a fair chance of competing. The two main competitors in the market have no significant source of competitive advantage. There is a chance for a new business to enter the market and convince the customers of the value it offers. If this business manages to do this, it will have great potential to get high sales in Turkey, where weight loss products are bought at a high rate.
Potential Barriers to Entry
One of the main barriers to entry is regulatory barriers. This business is selling health-related products, whose sales are highly regulated. It is likely that there are many tests that will need to be done before the product can be sold in Turkey. Too many regulatory barriers can complicate the business and make it more costly to operate in a foreign country (Hamilton & Webster, 2018). Therefore, this business will need to consider the country’s regulatory standards when implementing the business. Another likely barrier to entry is a lack of customer trust. The market in Turkey is too saturated with businesses that sell different forms of weight loss products (Agency, 2016). Most of these products have not been effective in helping customers to lose weight. As a result, many people have lost their trust in such products. It will be hard for the business to gain the consumers’ trust and get them to its weight loss pills.
Summary and Conclusion
In summary, this business needs to be prepared for the high level of competition that it will face in Turkey. There are many competitors in the market, but none of them has been established as the leading brand. The business will need to position itself as a wellness company to gain the trust of consumers in the market, who want to lose weight while protecting their health and wellbeing. This positioning will help the company to gain an advantage over the existing businesses.
References
Agency, A. (2016). Dieticians warn of increasing weight-loss pill usage in Turkey. Retrieved from: https://www.dailysabah.com/health/2016/04/15/dieticians-warn-of-increasing-weight-loss-pill-usage-in-turkey
Hamilton, L., & Webster, P. (2018). The international business environment. Oxford University Press.
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Question 
Determine the attractiveness of expanding your selected product market to the country you have chosen by identifying 2 to 3 competitors that may already be doing business there.
Competitive Product Analysis
Prior to analyzing the market and competitive factors below, what is the currency of the country you have chosen for your project, and what are the currency risks of establishing a business presence there?
Summarize the present market situation for 2–3 competitors of the selected product, and indicate why these specific competitors were chosen.
Provide evidence that supports claims of success or lack of success for the 2–3 competitors.
Evaluate the proposed product launch in comparison to the competitors’ market situations.
Establish the selected product’s position in the market, including if the selected product would be the first in the region, or if the market is saturated with competitors.
Establish a sales potential that is based on assessments of 2–3 competitors.
Identify a price for the product that is based on assessments of 2–3 competitors.
Summarize any potential barriers to entry in the selected country’s market based on an analysis of the country and the competition.
Summarize your assessment of the situation at this point. Conclude whether successfully launching the proposed product in the selected country is feasible, and indicate why.
Support your position with one additional resource from either globalEDGE or the Capella University Library.
Your submission should be well-organized and written in clear, succinct language. Follow APA rules for attributing sources that support your analysis and conclusions.
As a reminder related to using APA rules to ensure academic honesty:
When using a direct quote (using exact or nearly exact wording), you must enclose the quoted wording in quotation marks, immediately followed by an in-text citation. The source must then be listed on your references page.
When paraphrasing (using your own words to describe a non-original idea), the paraphrased idea must be immediately followed by an in-text citation, and the source must be listed on your references page.