Evaluation of Marketing Opportunities

This paper explores the various policies and standards affecting marketing opportunities in both Australia and globally. It identifies different legislation and their effect on business, conducts a market analysis for a company, and identifies various marketing opportunities. Learn about e-commerce, legislations affecting business operations, and international trade policies and agreements.

Evaluation of Marketing Opportunities 1
EVALUATION OF MARKETING OPPORTUNITIES
By (Student Name)
(Name of the Class) - Course
Tutor: Insert Name of tutor here
University
Department of
1/4/2018

Evaluation of Marketing Opportunities 2
TABLE OF CONTENTS
Executive Summary....................................................................................................................................3
1.0 Introduction.........................................................................................................................................4
1.1 Relevant Australian international standards, policies, and guidelines affecting marketing...............4
1.2 Relevant International Policies, Guidelines, and Standards affecting marketing...............................5
2.1 The meaning of e-commerce...............................................................................................................5
2.2 The differences between B2B, B2C, C2C, C2B, and B2G......................................................................5
2.3 Differences between ‘brick and mortar’ and ‘click and mortar’.........................................................6
2.4 Three global e-commerce companies that provide service to Australians.........................................6
2.5 Three technologies that are used when conducting international electronic commerce..................6
3.0 Legislations that may affect aspects of business operations in marketing.........................................6
4. The role of OECD in the context of global trading.................................................................................7
Task 1. International Market Evaluation Report for A&A..........................................................................8
Task 2: Assessment of International Business and Electronic Commerce Market Factors.....................10
Task 3: Risk factors for international marketing opportunities...............................................................13
Task 4: International business and e-commerce.....................................................................................15
Conclusion................................................................................................................................................21
References...............................................................................................................................................22

Evaluation of Marketing Opportunities 3
Executive Summary
This Paper explores the various policies and standards affecting marketing opportunities in both Australia
and globally. The Paper has identified the different legislation and their effect on business. Moreover, the
paper proceeds systematically to conduct a market analysis for a company and came up with different
market trends that may affect its operations in the Asia Pacific region. Finally, the paper identifies various
marketing opportunities and how a business can exploit them while at the same time estimating its cost-
benefit and Return on Investment.

Evaluation of Marketing Opportunities 4
1.0 Introduction
This paper seeks to find out the relevant policy, standards, and guidelines that affect business and marketing
opportunities in Australia and abroad. It looks at the legislation affecting marketing and how trade agreements
have enhanced global trade. Lastly, the paper looks at key Asia Pacific markets and explores ways in which a
business can take advantage of the market opportunities available.
1.1 Relevant Australian international standards, policies, and guidelines affecting marketing
Australian Example Description
Environmental matters The Environmental Sustainability
Policy
This policy guides on efficient energy
utilization, waste management, pollution
control, efficient water use, and
minimization of greenhouse gas emissions
(Australian Department of Human Services
2018).
Human rights Australia’s Anti-discrimination Law
The law states that it is illegal to
discriminate workers based on sex, race,
their disability, or religious affiliation
(Australian Government. Attorney-
General's Department 2018).
Labour relations Industrial Relations Policy
The policy protects the employees by
advocating for fair work, safe and modern
workplaces that enhance productivity
(Australian Department of Jobs and Small
Business 2018).
Packaging The Australian Packaging Covenant
The covenant encourages business
members to use recyclable materials that
prevent environmental pollution
(Australian Department of Environment
and Energy (2017).
Risk management The Australia and New Zealand Risk
Management Standard
This policy establishes that businesses face
risks in every opportunity pursue and
should, therefore, develop mechanisms to
address those risks (Australian Council for
the Arts [ACA] 2014).

Evaluation of Marketing Opportunities 5
1.2 Relevant International Policies, Guidelines, and Standards affecting marketing
International Example Description
Environmental matters The ISO 14000 Environmental
Management Standards
These are series of environmental
management guidelines developed to
standardize all environmental activities in
organizations across the world (Rouse
2012).
Human rights
The United Nations Guiding
Principles on Business and Human
Rights
Established in 2011, these principles
underpin three activities; the state to
protect, to respect and lastly, to ensure a
remedy for those working in businesses
(United Nations Commission on Human
Rights 2011).
Labour relations International Labour Standards
These are labour agreements developed by
the international labour organization to
safeguard the rights of workers and
enhance their job security internationally
(Heintz, 2011).
Packaging International Standard Organization
Global Packaging Standards
These are internationally harmonized
procedures to ensure packaging material is
recyclable, minimal, reusable, and
environmentally friendly (Timm 2013).
Risk management The ISO 31000 Series
These are global standards developed by
the International standard organization
detailing procedures for identifying risks in
businesses and ways of mitigating those
risks (ACA 2014).
2.1 The meaning of E-commerce
E-commerce is short for electronic commerce. It entails transactions carried out electronically particularly the
internet. Transactions involve credit cards, money transfer and email order requests (Rouse 2012).
2.2 The differences between B2B, B2C, C2C, C2B, and B2G
B2B or business to business involves businesses transacting with each other for instance a
manufacturer selling to a wholesaler. On the other hand, B2C or a business to the consumer means a business
conducting transactions directly with a consumer, for example, a retailer selling goods to a customer.

Evaluation of Marketing Opportunities 6
C2C or Consumer to Consumer business implies customers transacting business with each other mainly
through an enabling environment like online auctioning sites. C2B or Consumer to Business means customers
trading with companies. An example is where a client posts an order online with a tentative budget and
companies review the order and bid. The customer picks the most suitable offer. Lastly, B2G or Business to
Government is where private companies do business with governments for instance when the government
tenders for a project and private companies bid for that tender (Watson 2008).
2.3 Differences between ‘brick and mortar’ and ‘click and mortar’
Brick and mortar are businesses which only maintain traditional physical stores where customers have to visit
to conduct a transaction whereas click and mortar businesses combine both the traditional physical store and
also an e-commerce option for online transactions (Rouse 2012)
2.4 Three global e-commerce companies that provide service to Australians
According to Nielsen (2015) among the global e-commerce companies that provide services to Australia
include:
 Amazon
 eBay and
 Alibaba Group of Companies.
2.5 Three technologies that are used when conducting international electronic commerce
a) According to Watson (2008), there are numerous technologies that are used to conduct electronic
commerce, among which include:
 Internet Technology
 Data Encryption Technology
 Money Transfer Technology.
3.0 Legislations that may affect aspects of business operations in marketing
Legislation Explanation
1. Country of Origin Food Labelling
Law
Stricter labelling requirement means that businesses will incur more
packaging cost for verification and adherence to requirements.
2. Anti-discrimination legislation Businesses will be forced to realign their products to meet
requirements of anti-discrimination which will also affect market
segmentation.
3. Australian Consumer Law Penalties from unfair trade practices, unlawful contracts, and
agreements imply that businesses will incur more costs than before

Evaluation of Marketing Opportunities 7
to operate legally.
4. The Competition Laws Businesses will benefit from better protection against unfair trade
practices such false advertisement as well as consumer protection
from the state.
5. Migration Laws Stringent immigration laws imply that fewer people will be getting
into the country which will lead to a reduced market in the future.
6. National Privacy Legislation Updates to the National Privacy Act means that businesses will have
lesser freedom with information for market intelligence lest they
breach data privacy laws.
7. Environmental Legislation The ban on plastics will lead to increased expenses for alternative
packaging materials. Companies manufacturing plastic packages will
lose business.
8. Product Liability Regulation Requirements to provide full information to consumers on product
safety and the stringent regulation by the state will benefit
consumers but may lead to high Marketing costs to comply.
9. Legal aspects of bilateral and
multilateral trade agreements
The Free Trade Agreement which seeks to level the field of
international trade may disadvantage Australian businesses dealing
with large United States Multinationals marketing of biotechnology
products.
10.Employment Laws; Fair Work Act Labour costs are most likely to go up which means that the cost of
production will lead to higher cost of marketing and commodity
prices.
Source: (DFAT 2018)
4. The role of OECD in the context of global trading
The primary role of OECD is to ensure that there is a level playing field for all organizations doing
business globally. With this regard, OECD provides information on global trade which not only indicates
opportunities but also highlights trade deficits. To the member countries, OECD is committed to highlighting
global trading opportunities to increase their economy and the standards of living. Moreover, the organization
highlights on global indices such as market performance, cost of doing businesses and, ease of doing business
across the world which serves to ensure equity in the conduct of global business (Organisation for Economic
Co-operation and Development [OECD] 2018).

Evaluation of Marketing Opportunities 8
Task 1. International Market Evaluation Report for A&A
1.1 Trade patterns that may have a major impact on A & A’s market expansion
To begin with, the market for instant coffee has grown remarkably whereby in Vietnam and China the
market has grown by 15.1% and15% respectively while in India and Indonesia, it grew by 19.6% compared to
marginal global growth of 2% globally (Forsyth 2017).
Following market liberalization, there has been a shift of inflow of Foreign Direct Investments from
manufacturing to the service sector. This has seen the growth of opportunities in the food service industry
(WTO 2011).
Growth in the coffee market in Asia has in part been as a result of innovation of coffee products. New
product launches for instance between the year 2011 and 2016 grew by 95% (Forsyth 2017).
An increase in bilateral trade agreements between governments in Asia particularly the Free trade
agreement has seen an expanded market where the private sector has ventured to fulfill the demand for goods
and services (WTO 2011).
Lastly, there has been an evolution of tariff policies whereby in Asia for instance, there have been low applied
tariffs and from the market trends those tariffs and barriers are decreasing considerably (OECD 2018).
1.2 Five international business and electronic commerce factors that affect e-commerce diffusion in the
Asia-Pacific market
An expansion strategy by multinationals in the Asia-Pacific region brings a culture of e-commerce with
them which has then filtrated the region. This has led to the adoption of e-commerce practices (Desjardins
2014).
Firms in the transport sector aided by rapid infrastructure growth in the Asia-Pacific region are getting
exposed particularly in the United States of America and Australia where e-commerce has been successful and
they want to adopt the system (Sato 2009).
The growth of trade and bilateral relations such as Free trade agreement has seen businesses in Asia-
Pacific partnering with multinationals that already use e-commerce encourage adoption of the same to foster
similar standards in business operations(Watson 2008).
The growth of international money transfer systems such as PayPal, Master Card, UnionPay has
increased an appetite for conducting online transactions which in turn has created a market for e-commerce
(Parnham 2017).
Availability of high skilled personnel due to increased movement of people and outsourcing of services
particularly in India, China and Malaysia has seen transfer people with IT skills who establish the e-commerce
system in the region (WTO 2011).

Evaluation of Marketing Opportunities 9
1.3 Three Asia-Pacific countries that Australia has free trade or protectionist agreement with
a) According to Australian Government. Department of Foreign Affairs and Trade [DFAT ] 2018 Australia has a
Free trade or protectionist agreement with among others the following countries;
 Singapore
 China
 Thailand
The ranking of the countries according to ease of doing business would be;
1. Singapore
2. Thailand
3. China
The justification for the ranking is because Australia has a long working relationship with Singapore as the
first choice. This relationship goes beyond the year 2003. Both countries have hence been trading for close to
two decades especially in e-commerce, education the service sector which A & A has interest in.
On the other hand, Australia also has a free trade agreement with Thailand dating to over 20 years.
However, because, Thailand has a stricter protectionist policy, it would be relatively difficult to establish a
business there (Export Council of Australia [ECA] 2018).
Lastly, China comes last because their trading agreement came into force in 2010 along with a number of
other ASEAN countries. Besides China would be a difficult market for A & A because the preference for tea as
opposed to coffee (ASEAN 2018).
1.4 International trade policies and agreements
Singapore and Australia have a cohesive bilateral agreement dubbed Singapore-Australia Free Trade
Agreement (SAFTA) which was established in 2003. Singapore is also the largest South East Asia trading partner
to Australia. Moreover, according to this agreement, Australia has access to professional services market,
education services, customs procedures, and business travel market which would benefit A&A (DFAT 2018).
Thailand-Australia Free trade Agreement (TAFTA) was established in 2005 significantly reducing the
tariffs Thailand had placed to Australia. The agreement gave rise to business opportunities in food processing,
beverages, mining, automotive and agricultural trade (Bane 2018).
The China Australia Free Trade Agreement (ChAFTA) is a bilateral agreement between the 2 countries. Australia
has access to a huge market of over 1.4 billion people for marketing professional services, food and beverages,
goods and services and FDI (WTO 2011).
1.5 The most promising Market
From the analysis, the most promising market is China for the following reasons. Firstly, it offers a
market of over 1.4 billion customers which by all accounts is huge. The Gross Domestic Product is 11.2 Trillion

Evaluation of Marketing Opportunities 10
US dollars. Moreover, the market tariffs for food and beverages have been decreased considerably (Sherwood
2018).
In comparison, Singapore has a population of only 5.6 million people and GDP of 52.9 Billion US Dollars.
Though this is impressive for a country with such a low population it simply cannot compare to China. The
same case applies to Thailand which has a potential market of 68.9 million and a GDPA of 58.9 billion US
Dollars. From the analysis, China is the most promising market by far (WTO 2015).
Task 2: Assessment of International Business and Electronic Commerce Market Factors
2.1 China’s economic, political, social and cultural situation
2.1.1 Economic Factors
China has grown tremendously from the year 2000 with a foreign direct investment of 3.2 trillion to 7.3 trillion
US Dollars in 2015 (WTO 2015). The country has a GDP of 11.2 trillion US dollars and an income per capita of
15, 500 USD which denotes a moderate to high purchasing parity of goods and services.
2.1.2 Political factors
Although China offers a huge market for goods and services, its’ governance system, though stabilizing
lately, places huge political risks to the business. China’s history of human rights abuses is well documented.
The national government under the leading party Communist Party of China CPC is often jostling with the
provincial administration. The government has of late supported e-commerce operations and cross-border
business (Desjardins 2014).
2.1.3 Social Factors
China’s demography makes it an interesting market for international trade. The population is currently
at 1.4 Billion people. For this reason cost of labour is cheap and production costs low. The literacy levels are
over 90% and internet users are over 430 million. The leading e-commerce sites are Taobao and Alibaba group
companies. The population has high purchasing parity (WTO 2015).
2.1.4 Cultural Factors
The Chinese like to make collective decisions as a group which affects the speed decisions are made. The
language barrier is also a minor drawback. To overcome this, it’s essential to have a translator and build
relationships as the Chinese prefer close contact. The banking system faces challenges as people still prefer
traditional ways of handling money. The Chinese love to take beverages and prefer to present gifts to their
loved ones (Sherwood 2018).
2.2 How each of these factors can affect the potential opportunities identified in 1.4
The growing economy of China will lead to an increase in purchasing parity which in turn will lead to
growth prospects for investments, food and beverages, business travel and education and professional
services. The political factors are stabilizing and will allow more cross-border businesses as well as reduce trade

Evaluation of Marketing Opportunities 11
tariffs hence leading to better business prospects for food and beverage business. This will also increase the
prospect for foreign investments.
The social factors like growth in population will increase the market for the food and beverages,
education and professional services whereas the political factors will pose threat to foreign investments.
Cultural aspects of gifting should increase business for beverages, products, and services as well as grow
education prospects (Bane 2018).
2.2 Three trends and developments that are a ‘market gap’ in China
2.2.1 The trends include:
 There is a surge in the innovation of coffee products by 95%
 Ready to drink coffee market has grown by 29%
 Reduction in agricultural trade tariffs
2.2.2 Justification on ‘market gap’ in China
An increase in the market for the instant coffee band ready to drink coffee by over 29 % implies that
the people’s tastes and preferences in other beverages such as tea and cocoa are changing. As a result, this is a
market gap that requires full exploitation by A&A. On the other hand, there is a huge market potential for
innovated coffee products. This implies that people may prefer the convenience of taking their coffee without
necessarily visiting any coffee houses. Lastly, a reduction in agricultural tariffs in China means that the cost of
production will go down and the profit margins will rise.
Table1: Australia’s exports of coffee and substitutes to China
AUSTRALIA'S
MERCHANDISE
EXPORTS AND
IMPORTS
Trade type
Total
exports
Sector (All)
Country China
Sum of A$'000
Column
Labels
Row Labels FY2006
FY20
07
FY20
08
FY20
09
FY20
10
FY20
11
FY20
12
FY20
13
FY20
14
FY20
15
071 Coffee &
substitutes 705 457 582 393 971 798 1,107 858 753 1,278
Grand Total 705 457 582 393 971 798 1,107 858 753 1,278

Evaluation of Marketing Opportunities 12
2.2.3 Interpretation
The coffee and substitute exports from Australia to China are on an upward growth trajectory
beginning with 705 metric tonnes in 2006 and ending with 1278 metric tonnes in 2015. From the year 2010
when the ChAFTA took full effect, there was a very sharp increase in coffee export compared to other
preceding years. The table shows there is potential to grow the market further particularly given China’s
growing economy (DFAT 2018).
2.3 New and emerging business and electronic commerce markets
2.3.1 Two new emerging businesses
 Innovation to create new products
 Automation of business processes
The Innovation of new products in the coffee industry for, instance, is accounting for over 26% of new
coffee products and the market resonates with this new business. A&A should consider this new business
before the market is crowded and they are pushed out completely.
Automation of business processes is another emerging opportunity. This not only enables seamless
delivery of products to customers, it keeps them loyal to the business by cultivating a rewarding business
relationship. This business is expensive to put up and returns on investment uncertain in the short term. A&A
may want to consider opting out of this.
2.3.2 Two emerging E-commerce markets
 India
 Singapore
India has a population of 1.32 billion people and a GDP of 2.264 trillion USD. It is one of the fastest growing
countries in terms of outsourcing businesses. The country continues to see an increase of e-commerce as
businesses move online (Desjardins 2014).
Singapore has a population of only 5.6 million and a GDP of297 billion USD. It is experiencing
unprecedented growth terms of e-commerce and A&A should consider moving to Singapore and Benefit from
the Opportunities before the Market Saturates (Watson 2008).

Evaluation of Marketing Opportunities 13
Task 3: Risk factors for international marketing opportunities
3.1 Political Stability and Corruption
Political stability in China is guaranteed. There may, however, be some upheaval is the opposition
responds to internet restrictions. The biggest hardship facing the businesses is restrictions on internet use
which may lead to communication and e-commerce challenges and profit taxes imposed on foreign companies.
Corruption though low is threatening 3% of the Economy (ASEAN 2018).
3.2 Financial Stability
The Chinese market continues to grow steadily at 7%. The foreign direct investments have grown from
3.2 trillion US Dollars to 7.3 US Dollars between 2002 and 2015. The Income per capita is at 15,500 dollars
which signify potential purchasing parity. However global shocks from trade restrictions and tariffs particularly
in the USA on steel and other export products may affect the economic growth trajectory (WTO 2015).
3.3 Available ICT and telecommunications infrastructure for the e-commerce market
ICT and enabling e-commerce technology is present in China. The biggest e-commerce companies,
Taobao and Alibaba have benefited from this infrastructure. The ChAFTA trade agreement facilitated for e-
commerce opportunities in China which present enormous business potential. However internet restrictions
and strict regulation may jeopardize e-commerce (DFAT 2018).
3.4 Legal risks in selling goods and services online to the international market
In the past, the legal statutes applying to e-commerce were unclear and non-invasive. However, as of
2017, China introduced an e-commerce legislation to promote growth inside the country. Over one-third of
China bought goods outside the country through e-commerce. The internet regulation will definitely restrict
the space e-commerce had before.
3.5 Legal and regulatory requirements
As opposed to other Countries in the west, Chinese Government owns over 76% of the country assets
and controls over 21% of GDP through trade. The major challenge of establishing a business in China is,
therefore, negotiating with the government. Trade tariffs exist for foreign companies exporting agricultural
products such as those for A&A.
3.6 Trade barriers including logistics
Since China joined WTO in 2001, it has significantly reduced trade barriers and opened the business to
the World. However, there exist tariff and nontariff barriers on exports from other countries. Logistics differ
from province to province and have not been harmonized outside the economic zones.
3.7 Cultural factors including language barriers
Companies willing to work in China have to build links with existing networks. This is because language
barrier is a big problem. The language spoken is Chinese and Mandarin with few English speakers. Cultural
events like Chinese New year restrict business growth as people retreat to celebrate.

Evaluation of Marketing Opportunities 14
Table 2: Risk acceptability scale
Rating Criteria
1. Remote likelihood of risk (Very Acceptable)
2. Risk unlikely to happen (Acceptable)
3. Average Likelihood of risk (Mildly acceptable)
4. Risk Likely to Happen (Mildly unacceptable)
5. Risk extremely likely to happen(Highly Unacceptable)
Table 3: Rating
Risk Factor Rating Explanation
Political Stability and Corruption 1 China is politically stable and instances of
corruption are very few. The CPC ruling party has
the support of the majority. For this reason, this
risk is remotely likely to happen.
Financial Stability 4 China’s growing debt is a major concern which
means that the accelerated growth will be hard to
sustain without readily available credit. There is
therefore, a good chance that this risk is likely to
happen and is mildly unacceptable.
Available ICT and telecommunications
infrastructure for the e-commerce
market
2 Availability of ICT and Telecommunication
infrastructure is guaranteed particularly in the
economic zones. The infrastructure is, however, a
bit limited in the provinces. E-commerce is vibrant
with China ranked number 3. This risk is unlikely to
happen.
Legal risks in selling goods and services
online to the international market
2 Over a third of China buy goods and services
internationally through e-commerce. Legal cases
involving online buying of goods and services are
rare. This may, however, change in future with the
internet restrictions but for now, the risk is
unlikely to happen.
Legal and regulatory requirements 4 China is very strict on legal and regulatory
requirement though it has relaxed these after
joining the WTO. Many multinationals still
complain of tedious legal and regulatory
requirements hence this risk is likely to happen.
Trade barriers including logistics 3 There are moderate trade barriers involving tariffs
on imports and restrictions on select trade items.

Evaluation of Marketing Opportunities 15
Tariffs are high on agricultural products and low on
industrial products. The government controls
76percent of the country assets hence excessive
negotiations. This risk is average and therefore
mildly acceptable.
Cultural factors including language
barriers
4 Cultural events such as the moon festival and the
Chinese new year festival impact on businesses.
Also most Chinese speak mandarin making this risk
likely to happen and therefore mildly
unacceptable.
3.8 How current global economic conditions can impact the proposed country’s market development
The economy of China which has been growing at a steady 7% is expected to decline in coming years
owing to among other factors, high debt to GDP ratio and currency fluctuations which will affect the Yuan now
that it is not being undervalued in China at the expense of other currencies (WTO 2015).
In effect, the current trade tariffs being sanctioned by the United States, China’s biggest trading partner
particularly in steel products and non-food products. The economic stagnation of major European states such
as Greece and market maturity in these countries for food products which has stagnated at 2% means that
China will experience lesser demand for her products.
Task 4: International business and e-commerce
4.1 Marketing opportunities according to their likely fit with the organization’s goals and capabilities
Marketing Opportunity How it fits with A & A strategic direction
 Nontariffs on Trade in food and beverage
products
 A & A is seeking to expand outside the country and
sell coffee directly to customers in the Asia-Pacific
region and this is a viable market.
 Trade in Professionals is part of ChAFTA
agreement
 A&A Can leverage their highly trained coffee
professionals to fully exploit the Chinese Market
 Warehousing and Foreign Direct
Investments
 A&A can take advantage of this marketing
opportunity to stock their coffee in their warehouse
when prices are low to overcome price fluctuations in
the market and have a ready supply in the market

Evaluation of Marketing Opportunities 16
4.2 Marketing opportunity and its impact on the current business and customer base
Marketing Opportunity Impact on Current Business Customer base
 Trade in food and beverage products
(Coffee)
 This will expand A&A current business and customer
base since their market in Australia solely depends on
coffee vending machines and coffee makers. Direct
trade in coffee products will definitely lock in more
customers as they will also be dependent on their
coffee when they buy their machines.
 Trade in Professionals is part of ChAFTA
agreement(Human Resource)
 The current business will most likely suffer as A&A
Trains and moves their human resource professionals
to China to cater to a new market. However, their
customers will not be affected as A&A will maintain a
presence in Australia undertaking their present
business.
 Warehousing and Foreign Direct
Investments (Storage and Manufacturing)
 Once A&A move their products from their current
warehouse to China, there will be fewer products in
their Australia Holding facility. This may lead to loss
of business. If the current customer base keeps
demanding for products they are not supplied with,
they may switch to another supplier.
4.3 Assessment of costs, benefits, risks, and opportunities to determine the financial viability of each
marketing opportunity
Marketing Opportunity Cost Details Estimated Cost in First Year $
 Trade in food and
beverage products
(Coffee)
 Total profits from 2010-2014= 5.5$M
AUD
 Plough back the Profit becomes initial
cost=5.5$m AUD
 From the A&A reports estimated
cost average 80% of the initial
cost(5.5m$ AUD)
 Estimated Cost will be 4.4$m
AUD
 Trade in
Professionals is part
of ChAFTA
agreement(Human
Resource)
 Cost of HR will be Approximately
0.045$m AUD
 HR Cost per Year will be
approximately 0.50$m AUD
 Warehousing and
Foreign Direct
Investments
(Storage and
Cost of hiring a warehouse facility will be
0.05$m AUD
Cost per Year will be approximately
0.60$m AUD

Evaluation of Marketing Opportunities 17
Manufacturing)
Total 5.5$m AUD
Marketing Opportunity Benefit details Estimated Benefit within 12 Months
$
Trade in food and
beverage products
(Coffee)
 25% increase in the annual sale of
coffee
 25/100 *4.4
 Estimated annual profits will be
1.1$m AUD
Trade in Professionals is
part of ChAFTA
agreement(Human
Resource)
Human resource will make savings worth
0.25$m Per Year  Cost savings of 0.25$m annually
Warehousing and
Foreign Direct
Investments (Storage
and Manufacturing)
Rental income from warehouse 0.75$m  Rental income of 0.75$m
Total -  2.1$m AUD
Payback period = Initial Outlay/Returns
= 5.5/2.1=2.6 Years

Evaluation of Marketing Opportunities 18
4.4 Determination of probable return on investment and potential competitors
Year Estimated Costs Cumulative Costs Estimated Benefits Cumulative Benefits
0 4.4 $m AUD 4.4$m AUD 2.1$m AUD 2.1$m AUD
1 1.0$m AUD 1.0$m AUD 2.1$M AUD 2.1$M AUD
2 1.0$m AUD 1.0$m AUD 2.1$M AUD 2.1$M AUD
3 1.0$m AUD 1.0$m AUD 2.1$M AUD 2.1$M AUD
Total: 7.4$m AUD 8.4$M AUD
Return on Investment = ( TotalCumulative Benefits−TotalCumulative Cost )
( TotalCumulative Cost ) ×100
= 8 . 4−7 . 4
8 . 4 ×100
= 1
8 . 4 ×100=11 . 9 %

Evaluation of Marketing Opportunities 19
4.5 Competitor analysis
Competitor Established
Date and Size
Market Share
(%)
Value to
Customers Strengths Weaknesses
 Starbucks 1999 31.5%
Offers quality
coffee in
upscale
locations
 International
presence
 Famous
brand
 Strong
financial
backing
 Relatively
new to the
market
 Lacks
Cultural
integration
 Covers only
urban areas.
Source:
(Parnham
2017)
 UBC Coffee 1997 22.5%
Charges lower
price than
competition
 Wide
coverage in
China
 Low-cost
strategy
 Well
integrated
into the
Chinese
culture
 Only
operates in
China
 Deals in only
one product
 Lacks strong
financial
backing.
Source:
(Parnham
2017)
 Straits Cafe 1997 7.7%
Offers a variety
of coffee
products
 Dedicated
human
resources
 Quick
delivery
services
 Well
connected
 Lacks
financial
might of
competition
 Lacks
exposure
outside
China
 Operates
few stores
Source:
(Parnham
2017)
 Costa Cafe 1978 5.5% Long History  Strong  Smallest

Evaluation of Marketing Opportunities 20
with customers
marketing
team
 Strong
online
presence
 Strong
brand
presence
compared to
the
competition
 Only
operates on
the fringes of
cities
 Weak
financial
backing
Source:
(Parnham
2017)
 Macdonald 1992 6.5% Diversity of
products
 Popular
among
tourist
 Strong
internation
al presence
 A
Dedicated
website for
taking
orders
 Product
diversity
leads to poor
quality
services
 Orders take
long to be
served
 Lack of
cultural
integration
in the
market
Source:
(Parnham
2017)

Evaluation of Marketing Opportunities 21
Conclusion
In conclusion, this study observes that trade in food and beverage product (coffee) is the highest
ranked marketing opportunity. This is because it commands the lowest risk factors that may threaten the
trade. The Chinese market for coffee is growing at 15% with over 1.4 billion customers. Trading in coffee also
offers far better benefits than the cost incurred. It is observed that one can recoup investments in just over two
years. The return on investments is also very promising at 11.9%.
Investment in warehousing comes in the second place. The ChAFTA bilateral trade agreement
encourages foreign direct investments. The risk factors are considerably low and acceptable. There are
numerous opportunities for growth in FDI since China Joined the WTO in 2015. Warehousing investment can
offset the initial cost by providing rental income and other benefits like easy access to raw materials stored. It
also has good prospects for return on investments.
Lastly, professional human resource services come at the third place. It is crucial to note that
companies can benefit immensely from trained human resources who can lower the cost of production and
attract new customers. There has been an increase in cross-border movement into China from just under 150
million people in 2000 to over 350million in the year 2014(WTO 2015). This marketing opportunity also
provides attractive cost-benefits and a good return on investments.

Evaluation of Marketing Opportunities 22
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