International Marketing: A Comparison between Chinese and New Zealand Market

Running head: INTERNATIONAL MARKETING
International marketing
Name of the student
Name of the university
Author note

1INTERNATIONAL MARKETING
Table of contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Comparison between Chinese and New Zealand market................................................................2
Cultural differences.........................................................................................................................2
Target market and segmentation......................................................................................................4
Identification of issues and measurable recommendations.............................................................5
Conclusion.......................................................................................................................................5
Reference list and bibliography.......................................................................................................6

2INTERNATIONAL MARKETING
Introduction
In the current competitive industry, international marketing has become an important
initiative in terms of expanding business (Keillor, Hult & Babakus, 2015). In other words, it can
be said that the international marketing is about extending the marketing strategy from the local
market to the global industry. In the words of Vellas (2016), depending on the target market,
segmentation and the legal consequences in the market, the international marketing is being
affected. In this study, the company named Craft Smoothie has been discussed, which was
introduced in the year 2016 in New Zealand. The company has tried to introduce a healthy
lifestyle in the industry. The aim of the company is to provide organic foods to the customers for
improving their living standard. By introducing the healthy diet planning, for providing its free
delivery services all over New Zealand, the company has taken various initiatives. Using the
fresh organic products the company has aimed to gain the competitive advantage in the market.
The purpose of this study to highlight the comparison between Chinese and New Zealand market
by highlighting the international marketing Practices. The major cultural differences, which have
influenced the growth rate of the organizations in both the positive and negative manner, have
been discussed in this study. After the situational analysis, opportunities and challenges of Craft
Smoothie have been mentioned in the international market. Different target market, segmentation
as well as the issues of Craft Smoothie in order to enter the foreign market has been pointed out.
After the identification of the issues, the study has provided the measurable recommendations
that may play an influential role in terms of dealing with the challenges.
Discussion
Comparison between Chinese and New Zealand market
China market
In the last few decades, China encountered tremendous economic growth, making it one of the
world's largest economy. Since the advent of the economic reforms, China has been considered
as one of the world's largest manufacturing hub. Secondary sector accumulates the largest GDP.
Modernization is reflected in the tertiary sector. In the era of 2013, China becomes one of the

3INTERNATIONAL MARKETING
largest countries in terms of GDP with a share of 46.1% (Gov.cn, 2018). The secondary sector
accounts for 45% of the total output. Primary sector has collapsed noticeable with the advent of
globalization.
According to (Nzherald.co.nz, 2018), New Zealand is considered the virtual economic
trade prisoner of China. The trade policies reflect activity, which increases the dependence on the
single commodity. This has increased the anxieties towards maximizing the trade advantage.
China encountered global economic crisis more than the other countries. In November 2008, the
State Council announced CNY of 4 trillion in terms of dealing with the crisis. Financial stability
was achieved with 9% growth in the GDP (Gov.cn, 2018). Along with this, a low level of
inflation was recorded. However, the fiscal position was strong. The policies implemented
during the crisis possessed flexibility in exacerbating the macroeconomic imbalances
(Papadopoulos & Heslop, 2014). The leadership of President Xi Jinping and Premier Li
Keqiang, promoted a balanced economic model, helping in the achievement of economic
growth.
Since the era of 1993, China has encountered trade surpluses. In 2013, China surpassed the
United States when the total trade multiplied by 100 to USD 4.2 trillion. Massive investment
programs made the country a manufacturing hub. Alliance with the World Trade Organization
triggered the trade growth. Bilateral and multilateral trade agreements opened new markets for
China. Mention can be made of the Closer Economic Partnership Agreement with Hong Kong
and Macau (Gov.cn, 2018). Electronics and machinery constitute about 55% of the total exports.
In the case of garments, the export is 13%, construction materials and equipment accounts for
7%. 40% of the exports are made to Asia. North America and Europe have a share of 23 and
24% of the exports. Africa and South America constitute 8% of the total exports (De Mooij,
2015).
New Zealand
New Zealand market operates on free-market principles with a mixed economy. The country
possesses sizeable manufacturing and service sectors. The staple activity is agriculture. Export
for the goods and services accounts for one third of the total GDP. The average GDP growth per
capita has encountered a noticeable decline in the last decades than the other OECD countries.