Exporting Meat Products to China: A Marketing Plan for McPhee Bros Pty Ltd

Running head: INTERNATIONAL MARKETING
International Marketing
Student’s name:
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1INTERNATIONAL MARKETING
1.0 EXECUTIVE SUMMARY
The purpose of this paper is to show the expansion of the organisation McPhee Bros Pty
Ltd to China. McPhee Bros is famous for exporting the meat and live stocking to more than 50
countries. McPhee Bros is going to export the products to China as China will provide more than
1.3 billion internal potential customers. The target country China will be potential market for the
beef exporting and exporting of the products will liable for taxes; hence, the products of McPhee
Bros can be expensive. Economy of the china is flourishing as it has been observing 6.7% steady
growth and the middle class people seek the better quality and healthier products. Therefore,
China-Australia Free Trade Agreement will provide opportunities to the Australian businesses to
get the economic growth. In China; the corruption and scandals are large and confidence level of
customers are decreasing. However; beef consumption in China has been dramatically increased
and disposable income of the people in China has been significantly grown. Therefore, external
environment of China is appropriate to export the products and competitors in the market are
large. Due to the high demand from the customers; many of the companies are emerging to target
the meat production. McPhee Bros will face the competition from the WH Group, YurunFood
and ANZCO. The target market of McPhee Bros will be large supermarkets and these must be
located in the capital city of China. McPhee can send the products to four to five star hotels.
Other target market can be fine dining restaurants, bar and clubs and wet markets.
After the situational analysis, SWOT analysis of McPhee Bros has been done to show the
factors of strengths and weaknesses. In this paper, GAP analysis has been evaluated through
current and required capabilities and experience. Business objectives of McPhee Bros in
exporting the products to China have been segregated into three segments, financial, marketing
and operational. In addition, financial analysis based on profit and loss over 3 years has been

2INTERNATIONAL MARKETING
projected along with fixed cost, variable costs and revenue escalations. Marketing entry mode of
McPhee will be exporting in which the company will sell its products directly to the customers in
another country without using another organisation of arrangements. The marketing strategy of
McPhee will be promoting to local restaurants and the organisation is trying to build trust
between the businesses. McPhee can track the potential buyers' customers through Facebook and
email. In the final section of the study, marketing mix analysis has been given with different
products, price, place and promotions strategies. The export venture to China needs to the
personnel to review and monitor the tasks on each stage as it will allow the corrective actions.
China will be an excellent choice for McPhee Bros as it is rapidly growing market and internal
potential customers are high in China.
2.0 INTRODUCTION
2.1 The Company: McPhee Bros Pty Ltd
McPhee Bros Pty Ltd is a wholly Australian owned and operated company and this
company has more than forty years of experience in exporting of meat products. McPhee Bros is
located on the Murray River at Wodonga in North East Victoria, Australia. This place is famous
for the premier cattle and sheep growing area with good rainfall throughout the world. Most
importantly, McPhee Bros is a family owned company and it exports high quality veal, beef,
mutton and goat meats to the more than 50 countries (Mcpheebros.com, 2018). McPhee Bros has
the license by the Australia Quarantine and Inspection Service (License Number 925) and it
supplies high quality meat along with edible offal, hides and skin. McPhee Bros Pty Ltd has the
prime objective to satisfy the customers and to create confidence among the customers about the
products of McPhee Bros Pty Ltd. This organisation is the leader in the meat industry and it