International Marketing: Evaluating the Compatibility of Domestic and International Market

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This paper evaluates the compatibility of the domestic and international market for The Australian Super Foods Company and the profiles of the consumers in accordance with the view of sustainability.

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Running head: INTERNATIONAL MARKETING
International Marketing
Name of the Student
Name of the University
Author Notes:

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1INTERNATIONAL MARKETING
Executive summary
The Australian Super Foods Company was established in 2012. Ever since their inauguration,
they have been recognised as a company who have been supplying the market of Australia
with indigenous and organic food. The aim of the paper is to evaluate the compatibility of the
domestic and international market and the profiles of the consumers of the country in
accordance with the view of sustainability of the initiative of the company. It has been found
out that there are zero to no threats and absence of competition that the company can face in
the international market. The changing taste of the customers of the community show
alignment with the mission of the company.
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2INTERNATIONAL MARKETING
Table of Contents
Introduction................................................................................................................................3
Company profile.........................................................................................................................3
Industry profile...........................................................................................................................4
Domestic purview..................................................................................................................4
International purview.............................................................................................................5
Porter 5 forces Model: Comparison.......................................................................................6
Consumer profile........................................................................................................................6
Shift to healthy lifestyles........................................................................................................7
Enthusiasm for fitness............................................................................................................7
Health consciousness.............................................................................................................7
Conclusion..................................................................................................................................8
REFERENCES...........................................................................................................................9
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3INTERNATIONAL MARKETING
Introduction
It can be said that international marketing is the gateway to success on a global level.
Once a company achieves an international stature, they are well and truly on the way of
attainment of corporate governance. The latter is the goal of every company and the
international business gives them opportunities to elevate and propel their performance to
international levels of competence. The small and medium sized enterprises or SMEs are
gaining popularity in Australia (Chan, 2013). The SMEs offer various solutions at lower
prices than the bigger and highly recognised players of the market, thus the rational
consumers of the country choose to stick with the products and services provided by such
companies and the same has been recognised as the rationale behind the success of the SMEs
in the country (Brunswicker and Vanhaverbeke 2015). The aim of the paper is to critically
evaluate the scope of international growth of The Australian Super Food Company. The
scope of the company in international and domestic market will be evaluated using Porter’s
Five Forces model and the customer profiles will be enumerated.
Company profile
The Australian Super Food Co is a company that offers wild fruits, vegetables to the
Australian community (Austsuperfoods.com.au 2019). The products that are offered by the
company are native to the Australia and there lies the USP of the company. The company
was founded in the year 2012 and have been accredited several times for their sustainable
initiatives aimed towards the conservation of the indigenous communities of Australia.
(Austsuperfoods.com.au 2019). The company has identified that the behaviour of the
consumers are changing. Thus, they have devised a mission that incorporates the idea of
supplying a varied range of products that have nutritional value and that would enrich the
health and living standards of the people of the community while informing the consumers

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4INTERNATIONAL MARKETING
about the indigenous fruits and vegetables and herbs found in the country. The products that
are offered by the company are healthy substitutes to the unhealthy snacks and synthetic
flavours that people love. The products of the company are marketed as super foods and
range from products that incorporate healthy ingredients such as KAKADU plum,
DAVIDSON plum, QUANDONG, RIBERRY, FINGER Lime and others. All the products
are wild fruits and herbs that are available in Australia. Thus, the rarity contributes to their
Unique Selling proposition (Quintana 2013). It can be opined that the company are one the
right track to achieve success in the international markets as a result of the nature of products
that are offered by the company.
Industry profile
The company supplies the market with products that fall in the category of Fast
Moving Consumer Goods, thus the scope and opportunity for the operations of the company
is huge. The efficacy of the industry in accordance with the operations of the company in
international and domestic terms can be critically evaluated and determined using the 5 forces
model that was propounded my Michel Porter.
Domestic purview
Company rivalry (LOW)
The products that are offered by the company are appealing to the health conscious
section of the country. The number of companies that can rival the products of the company
are zero to none (Minifie 2017). Hence, the company rivalry is deemed to be LOW with
existence of no rival companies.
Power of the Suppliers (LOW)
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5INTERNATIONAL MARKETING
The products offered by the company are rare. Thus the number of suppliers
supplying the same is negligible. Accordingly the power of the suppliers is LOW.
Power of the buyers (MODERATE)
The power of the buyers of in the country is MODERATE since they cannot
completely influence the prices of the products that are offered by the company. The
customer base is not high, however, it is on rising verge. Additionally, it has been discovered
that the customers are not sensitive to price that is the buyers of the products income inelastic
in nature (Divisekera and Nguyen 2014).
Threat of Substitution (LOW)
As mentioned above, no other companies are offering similar products in the market.
Thus there are no close substitutes. Hence, the threat of substitutes is LOW.
Threat of new entrant (MODERATE)
The sector in which the company is operating can be termed as blooming. Thus, it is
assumed that various companies have identified the opportunity to gain profitability.
However the products are rare. Hence, the threat of new entrants is MODERATE.
International purview
Company rivalry (LOW)
Once the company enter the Chinese market, it is expected that there will be existence
of no competitors in the market. Furthermore, the products are native to Australia and can
come across no competitors (Neubert 2013). Thus, company rivalry is LOW.
Power of the Suppliers (LOW)
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6INTERNATIONAL MARKETING
If the company intends to operate in international levels, they would have to ensure
that they rely on more than one supplier for the raw materials that are needed for the
operations of the company (Buckley 2014). Australia boast supply of huge number of wild
herbs and flowers. However, it is not available in China. Thus, power of the suppliers is
LOW
Power of the buyers (LOW)
There are large number of companies that the buyers can choose from. However, they
do not have the power to influence the prices and strategies of the company. That is why, the
power of the buyers in international markets is deemed to be LOW.
Threat of Substitution (LOW)
On gaining international stature, a company develops an USP which determines the
position of the company on the minds of the consumers. Even if there are high number of
customers in the market, exact substitution or close substitution cannot take place.
Accordingly threat of Substitution is LOW.
Threat of new entrant (LOW)
Entrance is in the Chinese market is subject to various regulations (Crescimanno and
Galati 2014). Furthermore, no other companies supply similar products to the community.
This is the reason behind LOW threat of entrant in the market.
Porter 5 forces Model: Comparison
Domestic International
Company Rivalry LOW LOW
Power of Suppliers LOW LOW
Power of Buyers MODERATE LOW
Threats of substitution LOW LOW
Threat of new entrant MODERATE LOW

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7INTERNATIONAL MARKETING
Figure 1. (Source: As created by the author)
Consumer profile
The consumers both in the Chinese markets and the domestic market of Australia
have been subject to changing tastes and preferences in the modern time (Pulker et al 2018).
When it comes to consumption of food, the consumers have been on the receiving end of
awareness about the negative implications of junk food and appreciation for organic food and
food supplements. Various companies across the world have spread initiative regarding
awareness that preach about awareness of conservation of indigenous communities by
consumption of organic and indigenously grown food (Millar et al 2013). Furthermore, as a
result of consumption of the synthetic and processed food, there has been an increase in
unfavourable health effects such as diabetes and obesity. Thus, the mission of The Australian
Super Foods Company to supply varied products that offer nutritional value to the users has
been categorised as a sustainable view from the part of the company. Following are some of
the bases or segmentations and trends in the Australian and the international market;
Shift to healthy lifestyles
The appreciation of unhealthy processed food has been the characteristic of people
over the years. However, with awareness campaigns that enumerate the ill effects of such
food and snacks, there have been a decrease in consumption of such items (Davila and Dyball
2015). People across countries are showing favourable acceptance to the organic foods that
are also contributing to the sustainability of the Country flora.
Enthusiasm for fitness
There has been an increase in the number of people who are associated with fitness
and healthy lifestyles. Thus, the products that are offered by the company are supposedly
appropriate for the consumers of the community. People, both in Australia and China are
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opting for healthy alternatives and thus the products are expected to perform well in the
market.
Health consciousness
There have been outburst of various ill effects to health. There has been rise in
diabetes, obesity and strokes. Thus, the rational consumer of the country are continuously
looking for better alternatives. As a result the demand for organic products have increased.
Hence, the changing tastes and preference of the consumers that is characterised by
shift to healthier alternatives of the processed, increased consciousness about health and rise
in enthusiasm for fitness and healthy activities pose opportunities to the company.
Consequentially, it has been assumed that the product that are offered by the company are
deemed to perform well in the domestic and Chinese market, provided the marketing
expertise the company already incorporates in their activities.
Conclusion
In conclusion, it can be said that the company aims to expand to international markets.
With the help of the 5 forces model, it has been found that out that the operations of the
company can face low levels of competition, with low power of the suppliers, low power of
the buyers, low threat of substitute and low chance of new entrants. Along with the above, the
changing tastes and preferences of the consumers would boost the performance of the
company as there has been a witnessed increase in acceptance of products of similar nature.
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REFERENCES
Austsuperfoods.com.au, 2019. Home - The Australian Superfood Co. [online] The Australian
Superfood Co. Available at: https://austsuperfoods.com.au/ [Accessed 30 Mar. 2019].
Austsuperfoods.com.au, 2019. Superfoods - The Australian Superfood Co. [online] The
Australian Superfood Co. Available at: https://austsuperfoods.com.au/superfoods/ [Accessed
30 Mar. 2019].
Brunswicker, S. and Vanhaverbeke, W., 2015. Open innovation in small and mediumsized
enterprises (SMEs): External knowledge sourcing strategies and internal organizational
facilitators. Journal of Small Business Management, 53(4), pp.1241-1263.
Buckley, P.J., 2014. International integration and coordination in the global factory. In The
multinational enterprise and the emergence of the global factory (pp. 3-19). Palgrave
Macmillan, London.
Chan, E., 2013. When Australian construction SME implementing TQM. World Review of
Business Research, 3, pp.167-178.
Crescimanno, M. and Galati, A., 2014. Competitiveness of Italian wines in the international
market. Bulgarian Journal of Agricultural Science, 20(1), pp.12-22.
Davila, F. and Dyball, R., 2015. Transforming food systems through food sovereignty: An
Australian urban context. Australian Journal of Environmental Education, 31(1), pp.34-45.
Divisekera, S. and Nguyen, V., 2014, November. Regional variations in tourist consumption
patterns: a model of demand for domestic tourism in Australia. In The Nara Tourism
Statistics Week: 13th Global Forum on Tourism Statistics, Nara, Japan (pp. 17-21).

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10INTERNATIONAL MARKETING
Millar, L., Robertson, N., Allender, S., Nichols, M., Bennett, C. and Swinburn, B., 2013.
Increasing community capacity and decreasing prevalence of overweight and obesity in a
community based intervention among Australian adolescents. Preventive medicine, 56(6),
pp.379-384.
Minifie, J., 2017. Competition in Australia.
Neubert, M., 2013. Global market strategies: How to turn your company into a successful
international enterprise. Campus Verlag.
Pulker, C.E., Trapp, G.S.A., Scott, J.A. and Pollard, C.M., 2018. What are the position and
power of supermarkets in the Australian food system, and the implications for public health?
A systematic scoping review. Obesity reviews, 19(2), pp.198-218.
Quintana, L.B., 2013 Special collection of artist's books from the library of the Museum of
Contemporary Art of the University of São Paulo MAC USP Special Collection of Artists'
books of the Art Contemporary Art Museum at Sao Paulo University MAC USP.
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