International Marketing of Frosty Boy Australia

This report analyses the target market and marketing mix of Frosty Boy Australia, along with market analysis of South Africa and Turkey. It also discusses ethical considerations and recommends Turkey for market entry.

Running head: INTERNATIONAL MARKETING OF FROSTY BOY AUSTRALIA
International Marketing of Frosty Boy Australia
Name of the student
Name of the University
Author note

1INTERNATIONAL MARKETING OF FROSTY BOY AUSTRALIA
Executive Summary
The primary purpose of this report is to elucidate on the target market and the marketing mix
of Frosty Boy Australia. It analyses the strength, weakness, opportunities along with threats
in relation to the company. It discusses about the market analysis of the two countries- South
Africa and Turkey. It elaborates on the ethical considerations of the company and states about
the country that is suitable for the market entry of Frosty Boy Australia.

2INTERNATIONAL MARKETING OF FROSTY BOY AUSTRALIA
Table of Contents
Company Background................................................................................................................2
Situation Analysis......................................................................................................................2
Market Analysis.........................................................................................................................3
Ethical Considerations...............................................................................................................7
Recommendations......................................................................................................................8
References:.................................................................................................................................9

3INTERNATIONAL MARKETING OF FROSTY BOY AUSTRALIA
Company Background
Frosty Boy Australia was established in the year 1970 and it produces a large variety
of frozen dessert base along with beverage product of high quality (Frostyboy.com.au.,
2018). Frosty Boy has been able to create long-term relationship with client with the help of
its innovative research facilities. The target market of Frosty Boy includes the retail business
like café, quick service restaurants and convenience stores. Frosty Boy also serves to the
service stations and there are many products that are distributed to the international clients.
The products of Frosty Boy are vanilla soft serve along with frozen yoghurt base. They are
also instrumental in producing beverage powder that includes Velvet Dairy frappe, white
chocolate and yoghurt smoothie base. The products of Frosty Boy are of low cost but they are
high quality products that has made it popular in the market. The promotion of the products
of Frosty Boy Australia are carried out with the help of trade event along with distribution
network. The company is also promoted by taking recourse to word-of-mouth with the help
of client network (Labonté et al., 2017).The promotion of the products of Frosty Boy
Australia is carried out with the help of internal communications that helps in engaging the
stakeholders with the help of e-mail newsletter. Frosty Boy possesses distribution network
that spreads throughout Australia and they have highly trained distributors that helps in
providing local support to the stores in Australia. The Research & Development facilities of
Frosty Boy Australia provides it with competitive advantage over other frozen dessert and
beverage companies in Australia.
Situation Analysis
The strength of Frosty Boy Australia is provided by the fact that they have highly
skilled food technologist and their research and development facility has provided them a
distinct position in Australia. They are instrumental in the launching of innovative products

4INTERNATIONAL MARKETING OF FROSTY BOY AUSTRALIA
that are of high quality. The weakness of Frosty Boy Australia is due to the fact that rainy
weather or the occurrence of cold winter can have a negative impact on the sale of the
products of Frosty Boy Australia. They depend on specific vendor for supplying the
ingredients and in the event of the vendor raising the price the business of Frosty Boy
Australia can suffer. The opportunities of Frosty Boy are created due to the fact that they
have made use of various restructuring process that has helped them in maintaining the
position of the leader within the international frozen dessert market (Goworek, McGoldrick
& McGoldrick, 2015). It is being estimated that the frozen dessert market will grow in the
period of 2018-2023 that can help the company in establishing itself successfully in the
global market. The demand for low calorie dessert will increase in the coming years and
Frosty Boy Australia takes care of the fact that its products cater to the needs of modern day
customer. The innovative flavour of the frozen desserts and beverage has opened
opportunities for the company that can enable it to spread its operations in the international
sphere (Armstrong et al., 2015). The threats for the company arise due to the fact that there
other companies in the international sphere dealing with frozen dessert products that are
popular that can prove to be a threat for the international expansion of Frosty Boy Australia.
Market Analysis
The language of Australia is English whereas the language spoken in South Africa is
Africaans and of Turkey is Turkish. Christianity is the dominant religion in both Australia
and South Africa. Islam is the primary religion of the Turkish people. The social norms in
Australia place a great amount of emphasis on the aspect of modesty, sincerity and
authenticity (Allen, 2015).) The South Africans have a warm and accommodating nature and
the people of Turkey lay stress on the aspect of courtesy and they spend a large amount of
time in establishing a personal relationship.
Cultural Australia South Africa Turkey

5INTERNATIONAL MARKETING OF FROSTY BOY AUSTRALIA
Language English Africaans Turkish
Religion Christianity Christianity Islam
Social norms Modesty and
sincerity is stressed
Warm and
accommodating
nature
Courteous
Figure: Cultural Distance
Source: Created by the Author
Australia has a high ranking for its political stability and this makes it easier for
conducting business in the country. South Africa and Turkey are emerging economy that
faces a lot of political turmoil and internal tension that can hamper the market entry of a
business into that country. The Australian Intellectual Property Law encourages innovation
and protect the business so that they can have competitive advantage. The legal system of
Australia is well-developed that helps in protecting the intellectual property of the business
(Chetty, Ojala & Leppäaho, 2015). South Africa possesses a ‘hybrid’ legal system and the
law system has been inherited from the Dutch. The foreign investors within Turkey do not
have to get the consent of the government authority in the event of incorporation of a
company within Turkey that proves to be helpful for the market entry of a foreign country.
Australia has free trade agreements that helps in supporting of global trade liberalisation. The
trade relations of South Africa are governed with the help of Trade, Development and Co-
operation Agreement (Liu, 2017). Turkey has signed an agreement with that of the European
Free Trade Association that helps in enlarging the free trade agreement of the country.
Administrative Australia South Africa Turkey

6INTERNATIONAL MARKETING OF FROSTY BOY AUSTRALIA
Political Stability Politically very
stable
Political turmoil
exists
Internal tensions are
present
Laws and
Regulations
The legal system of
Australia is well-
developed
South Africa
possesses a ‘hybrid’
legal system
The foreign
investors within
Turkey do not have
to get the consent of
the government
authority
Commercial and
Trade Agreements
Free trade
agreements
The trade relations
of South Africa are
governed with the
help of Trade,
Development and
Co-operation
Agreement.
Turkey has signed
an agreement with
that of the European
Free Trade
Association
Figure: Administrative Distance
Source: Created by the Author
Australia can be said to be an island continent and almost all the states in Australia are
surrounded by the ocean waters. To the north of Turkey is located the Black Sea and it has
Mediterranean Sea in the south. The oceans that lie around South Africa are the Atlantic and
the Indian Ocean. There are a large number of highways in Australia that facilitates trade and
there are a large number of national route within South Africa and Turkey that helps in
connecting the main cities (Mathews et al., 2016). The weather in Australia is pleasant and

7INTERNATIONAL MARKETING OF FROSTY BOY AUSTRALIA
there is not great amount of contrast between summer and winter. The climate of South
Africa is a bit extreme and they days are warm whereas the nights are cold (Fine, 2018).The
weather condition of Turkey is moderate and the cold is not unbearable.
Geographical Australia South Africa Turkey
Access to oceans Island continent Surrounded by
Atlantic and Indian
Ocean
Surrounded by
Black Sea and
Mediterranean Sea
Highway Large number of
highways
Many national
routes that connects
main cities
Many national
routes that connects
main cities
Weather Pleasant Extreme Moderate
Figure: Geographical Distance
Source: Created by the Author
It has been found with the help of data that the median weekly household income
amounts to $1438 that illustrates that the Australians have high income. The net adjusted
disposable income of South Africa is USD 10872 that is much lower as compared to the
OECD average. The net adjusted disposable income of Turkey is lower when compared to
the OECD average (Yildiz, Ide & Malik, 2016). Australia provides diverse range pertaining
to the study options and the Australians are highly educated (Gerschewski & Xiao, 2015).The
education system that exists in South Africa is the worst within the world and the regional
instability that prevails hinders the system of education within Turkey (Uddin, 2018). The
cost of labour in low in Australia and the labour costs in South Africa and Turkey have risen
in the recent times.

8INTERNATIONAL MARKETING OF FROSTY BOY AUSTRALIA
Economic Australia South Africa Turkey
Income High income Low income Low when compared
to the OECD
average
Education Highly educated
people
Worst education
system
System of education
is not that good
Cost of Labour Low cost of Labour High labour Cost High Labour Cost
Figure: Economic Distance
Source: Created by the Author
Ethical Considerations
All the Australian business plays a part in the arena of environment management and
the federal and the local governments present in Australia helps in administering the
environmental protection laws within Australia. Department of Environment helps in
administering specific Acts that helps in covering activities related to sea, importing and the
heritage issues. International Compliance Landscape is changing in South Africa that has
been catalysed by robust laws. Anti-corruption legislative framework has evolved in South
Africa and the prosecution against the corporate entities has risen in the recent times in South
Africa. The Turkish culture is associated with the aspect of harmony and the business present
in Turkey are environmentally aware (Hollender, Zapkau & Schwens, 2017). The Turkish
business culture maintains a pluralistic approach in relation to nature. The financial reports
have brought out the fact that progress in relation to corporate social responsibility in
Australia is slow and has been insufficient in the last decade. The corporations in South
Africa have realised that they cannot stay isolated to the community and good governance is

9INTERNATIONAL MARKETING OF FROSTY BOY AUSTRALIA
crucial for the success of their business (Rogerson, 2018).They lay emphasis on the aspect of
serving the stakeholder. Stakeholder engagement is a concern of the business present in
Turkey and the business in Turkey maintain partnership with the NGOs that helps in the
growth of their business (Jack, As-Saber & Edwards, 2015).
Recommendations
The country that is appropriate for the market entry of Frosty Boy Australia is Turkey
owing to the courteous culture present within Turkey. It can prove to be favourable for the
market entry of Frosty Boy Australia. The government does not intervene in relation to
business alliances and partnerships and this can greatly help Frosty Boy in expanding its
business operations in the region of Turkey (Chetty, Ojala & Leppäaho, 2015).The businesses
present in Turkey are open to the signing of agreements and this can help Frosty Boy
Australia in expanding within the Turkish market. Turkey enjoys a moderate climate that is
not extreme and this can greatly be of advantage for Frosty Boy Australia. There are national
routes in Turkey that helps in connecting the main cities and this can help Frosty Boy
Australia in propagating its business within Turkey and maintain its hold in the market
(Gerschewski & Xiao, 2015). The system of education in Turkey is better as compared to
South Africa that can facilitate the entry of Frosty Boy Australia.

10INTERNATIONAL MARKETING OF FROSTY BOY AUSTRALIA
References:
Allen, D. (2015). The sharing economy. Institute of Public Affairs Review: A Quarterly
Review of Politics and Public Affairs, The, 67(3), 24.
Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction.
Chetty, S., Ojala, A., & Leppäaho, T. (2015). Effectuation and foreign market entry of
entrepreneurial firms. European Journal of Marketing, 49(9/10), 1436-1459.
Fine, B. (2018). The political economy of South Africa: From minerals-energy complex to
industrialisation. Routledge.
Frostyboy.com.au. (2018). Frosty Boy – A leading manufacturer of frozen dessert bases.
Retrieved from http://www.frostyboy.com.au/
Gerschewski, S., & Xiao, S. S. (2015). Beyond financial indicators: An assessment of the
measurement of performance for international new ventures. International Business
Review, 24(4), 615-629.
Goworek, H., McGoldrick, P. J., & McGoldrick, P. J. (2015). Retail marketing management:
Principles and practice. Harlow, UK: Pearson.
Hollender, L., Zapkau, F. B., & Schwens, C. (2017). SME foreign market entry mode choice
and foreign venture performance: The moderating effect of international experience
and product adaptation. International Business Review, 26(2), 250-263.
Jack, R., As-Saber, S., & Edwards, R. (2015). Service embeddedness and its role in a firm’s
internationalisation process: an Australian perspective. International Journal of
Operations & Production Management, 35(3), 346-369.

11INTERNATIONAL MARKETING OF FROSTY BOY AUSTRALIA
Labonté, M. È., Poon, T., Mulligan, C., Bernstein, J. T., Franco-Arellano, B., & L'Abbé, M.
R. (2017). Comparison of global nutrient profiling systems for restricting the
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Mathews, S., Bianchi, C., Perks, K. J., Healy, M., & Wickramasekera, R. (2016). Internet
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Rogerson, C. (2018). Local Economic Development in the Changing World: The Experience
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Yildiz, H., Ide, G., & Malik, S. (2016). The Relationship between Exchange Rate Volatility
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