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Rallysport International

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Rallysport International is a builder and promoter of racquetball courts in the United States and is hoping to capitalize on that experience in a move to Japan. The company had originally intended to move to the international market from a position of considerable strength as the premier provider of racquetball services in the United States, but moved up its international expansion when the competition within the United States became heated. This analysis considers the move to Japan and whether the company should modify its current Japanese marketing strategy.

Rallysport has decided to target working men in their mid-20s and 30s, with a secondary market of working women. The emphasis in the promotion will be on celebrity tie-ins and on promoting the idea that racquetball is fun. The company will also focus on the health benefits and the idea that the benefits of racquetball can be realized without a significant investment on the participants' parts. The company is considering using popular Japanese baseball players as some of its celebrities to build a following, and will emphasize the fact that racquetball has become very popular in the United States.

The company has recognized that many Japanese companies provide recreational and fitness outlets for their employees, and has decided that locating in industrial areas may not prove profitable as there will be direct competition with these alternatives. However, the company has sele

. . .
aste. Domestic milk producers are reluctant to take on the additional cost of the specialized containers, which adds to the price that consumers pay, and the infrastructure in the United States is such that milk can typically be delivered without a break in refrigeration. While the Freshtaste sterilization process would be a boon to consumers, it is not clear that the consumer is willing to pay for the longer-lasting product. This is what has caused Freshtaste to look to Japan. Resistance Factors Resistance in Japan comes from a variety of sources. There is resistance from the dairy industry, which fears that sterilized milk will reduce demand for fresh milk as a whole as less milk is thrown out. Consumers are reluctant to embrace sterilized milk since the production date and the date of consumption can be weeks or months different. Japanese regulations also require that all milk, including sterilized milk, be refrigerated to 10 degrees C so that the savings associated with nonrefrigeration would be lost. Another source of resistance is the small dairy farmer. Since sterilization requires some capital investment, there is concern that only wealthy organizations would be able to participate. This would reduce the number
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Approximate Word count = 3524
Approximate Pages = 14 (250 words per page)

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