Australian Agricultural Sector Analysis

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This assignment requires an in-depth analysis of the Australian agricultural sector, covering various aspects such as risk management strategies, implications of foreign policy on agricultural interests, and the competitive landscape within the sector. It involves evaluating scholarly articles and reports to provide a comprehensive understanding of current trends, challenges, and future prospects for the Australian agricultural industry.
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Marketing and Management 1
MARKETING AND MANAGEMENT
Name
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Professor’s Name
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Marketing and Management 2
MARKETING MANAGEMENT
Abstract
Marketing is basically the activities, form of institutions, and processes of forming,
exchanging data and information, attractive packaging, and exchanging goodies that are user
friendly and buy one always come back for more goodies for customers, clients, partners, and
society at large. Marketing management is the actualization of the marketing orientation and
forms of institutions using the available economics to manage marketing strategies (IFLR,
February 2014).
Companies use marketing management to show to the world that what they have is
actually what is best for them and they should always buy from them and always come back for
more from their stores and their affiliate stores. Marketing management also help companies
improve the quality of their produce so that as they are going to show to the world what they
have to offer, the high or standard quality of the ‘mere stories’ they are giving about the quality
of their product is actually confirmed by the quality and appearance of the product itself.
Companies will use marketing management to enhance the appearance of their product
to make sure that it attracts the targeted group from a distance and it actually distinguishes itself
from the other related products or the products serving the same purpose but not from the same
company. Marketing management is what actually makes some companies top five on the
performance list and other companies bottom five on the performance list (Bachev, 2013).
I will use GrainCorp to cover marketing management. GrainCorp is an Australian
company on The Eastward side of Australia with headquarters in Sydney South dealing with
receiving of grains and storing the grains to later reselling them. GrainCorp also has a transport
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Marketing and Management 3
network of the grains from the farmers to their warehouses and to their customers. GrainCorp is
a global exporter of their products to over thirty countries. GrainCorp also has seven bulk Grain
Ports evenly distributed to help in the transport network coverage. It’s also the largest producer
of edible oil; it’s among the top five producers of malt in Australia and top edible flour producer.
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Marketing and Management 4
Table of contents
Executive summary…………………………………………………..2
Table of contents……………………………………………………...4
Background information………………………………………………5
Discussion……………………………………………………………...5
Conclusions…………………………………………………………….14
Recommendation………………………………………………………..14
References………………………………………………………………15
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Marketing and Management 5
Background information
Introduction
It’s with the help of marketing management that has seen GrainCorp grow, develop, rise,
and survive for the last one hundred and one years. As Dr. Anh says, marketing also begins and
ends with customers. Last year 2016, GrainCorp was celebrating it’s a hundredth birthday.
Started in the year 1916 as New South Wales bulk grain to being a global Grain handler: both
producing and supplying and being a supplier of Malt even to The United States as Great
Western Malting, to Canada as Canada Malting Limited and The United Kingdom as Bairds
Malt Limited, their drive all through has been the customer is always right and whatever we do,
we do it for the customer (Beeson, 2014).
Discussion
What GrainCorp is a bout
GrainCorp does accumulation, storage, marketing, transport, shipping and processing
their products whether raw or finished. GrainCorp is in the Agribusiness industry basically
dealing with grains as their product. GrainCorp has a mission of being the leading international
agribusiness, as our clients most trusted and preferred partner. GrainCorp Strategy is to focus on
and strengthen their main business including pursuing of development chances with worthiness
fruit leaping from their investments, growing their grain original source and standardizing their
efficiency and proficiency of their services (Bosworth & Cutbush, 2014).
GrainCorp is valued for its commitment to the safety of their employees, contractors,
their site visitors and the surrounding community. This company proactively makes sure that the
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Marketing and Management 6
individuals, the colleagues are solemnly responsible for their safety as much as they are
concerned with the safety of others. As Dr. Anh, GrainCorp too believes that the heart of every
business is the clients or the customers. GrainCorp puts the customers either selfish or dies needs
first before everything else.
This is supposed to mean that GrainCorp ensures a great product with standard or high-
quality products of value. GrainCorp believes that the product should not only be of standard
quality but also be fulfilling the needs of the customers. They achieved this by basically listening
and eventually implementing the well-mannered and honest suggestions of their customers (Woś
& Gawlik, 2015).
Market orientation of GrainCorp
According to GrainCorp, there are two main orientations of marketing; product
orientation, and market Orientation. Product orientation is viewed as an approach of the
company to concentrate on the acquiring of the seeds, growth of the grains, storage of the grains
and other necessary processes required to be of high standards in order to produce a standard
quality grain. Market orientation is about how the product will sell, how get customers, maintain
the existing customers and get more and more customers while maintaining a certain level of
profits on their side, satisfy customers and fuel the business and keep it up and running.
GrainCorp Company Slogan
GrainCorp has had several slogans all operating at the different nonspecific and different
intervals. Some of the health and safety slogans are as listed below to help employees work in
the best interest of the company.
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Marketing and Management 7
Zero Harm
Safe at home
Safe at work
Safe for life
The five c’s of grain corp
Company
The New South Wales Grain Elevators Board later in 1992 privatized and renamed
GrainCorp was established by the New South Wales Department of Agriculture in 1916 to use
modern strategies to handle the grains in Australia. By then, the grains were still being produced
and stored manually in hessian sacks which made the process expensive in a then growing
economy that did not need old expensive strategies for its growth and development. The actual
grains dealt with are wheat, barley, and canola. The company has four reporting segments as
follows
Storage & Logistics
Malt
Marketing
Oils
They had to find better and efficient ways of handling the grains. Today, GrainCorp operates
one hundred and eighty elevators in over three thousand kilometers from Queensland, through
New South Wales to Portland holding over twenty million tones. In 1996, GrainCorp became the
first bulk dealer to sell and buy grains in Australia.
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Marketing and Management 8
Today, GrainCorp Marketing is known in all regions of Australia growing grains while
international trade is done via global offices in North America, China, the UK, Singapore and
Europe.
GrainCorp world’s top position as one of the four maltsters began when they acquired United
Malt Holdings back in 2009.This Company continued to grow and opening up of GrainCorp Oils
in 2012. GrainCorp has basically been focusing on partnerships and expansion, key resources
being customers and the grains. However, they were limited by the infrastructure.
Customers
Customers remain at the heart of every strategy and any plan for this company. So every
laid out strategy is for the good of the customer. GrainCorp started serving Australians with
Grains for their farms and from the farms of their fellow Eastern Australians. GrainCorp has
operations in Australia, U.SA, Canada and the U.K for grains and malt we can simply note that
GrainCorp is a global supplier.
The business is good for them as their service delivery and expertise is sought by craft
distiller sectors and global beer brewers. GrainCorp simply serves the whole world they
customers being of diversified backgrounds and from different countries with different tastes and
expectations of the grains and malt. It’s therefore evident how GrainCorp has built a strong
relationship with its customers [GrainCorp webpage]. It’s not easy to satisfy a diversified culture
with diversified products.
Collaborators
GrainCorp has several subsidiaries as listed below
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Marketing and Management 9
GrainCorp malt
GrainCorp Holdings USA
Norton organic Grain Limited
Midley Australia
Ridley Grain Limited
Allied Mills Pty Limited
Brewers Select Limited
Grain Corp services Limited
GrainCorp commodity management
Heinrich Merchandise Pty Limited
National grower Registry Pty Limited
GrainCorp Oils Holding Limited
Hunter Grain Pty Limited
GrainCorp management Limited
Grainco Australia Pty Limited
GrainCorp Malt
GrainCorp Malt is known for producing and supplying malt useful in the brewing,
distillation, and with food industries in the United States, Asia, Canada, South America, and
globally. Formerly known as United Malt Holdings it changed its name to GrainCorp Malt in the
year 2009 in the Month of November after it was bought by GrainCorp Ltd, GrainCorp Malt was
founded in 2006 and is based in Vancouver, Washington and is operating in Australia, the United
States, Canada, the United Kingdom, and Germany. As of November 13, 2009, GrainCorp Malt
operates as a subsidiary of GrainCorp. Ltd.
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Marketing and Management 10
Graincorp Holdings USA
GrainCorp Holdings U.SA was formed in 2009 and deals withholding and/ or owning
securities of organizations but not banks.
Grainco Australia Pty Limited
Grainco Australia Pty Limited functions to store and distribute wheat and barley. The
company was bought in 1995 and is based in Brisbane, Australia. As of October 8, 2003,
Grainco Australia Pty Limited operates as a subsidiary of GrainCorp. Ltd.
Allied Mills Pty Limited
Allied Mills is known for distributing food ingredients products like flour, cereals, bran,
frozen products, batters, culinary mixes and provision for product development, supply chain
management, ingredient cleaning and media support services.
Hunter Grain Pty Ltd
Hunter Grain Pty Ltd. is known for distributing imported protein materials and provision
of transportation and trading services. Hunter Grain also provides bulk imports for both grain
and protein meal imports, exports and third country trade with bulk custom storage and the
associated bulk handling services, including bagging, fumigation, palliating, grading, weigh
bridging and container loading/unloading. Also, it offers logistics services. Hunter Grain Pty Ltd.
was founded in 1975 and is based in Lane Cove, Australia. As of November 30, 2007, Hunter
Grain Pty Ltd. operates as a subsidiary of GrainCorp (Venkatesh, 2008).
Heinrich Merchandise Pty Ltd
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Marketing and Management 11
Heinrich Merchandise Pty Ltd. offers storage and handling of commodities,
merchandising, and logistics services mainly to the grain industry. Heinrich Merchandise Pty
Ltd. is found in Horsham, Australia. From January 16, 2007, Heinrich Merchandise Pty Ltd. is a
subsidiary of GrainCorp. Ltd.
The rest of the companies are just subsidiaries of GrainCorp
Competition
Competition is vital for the growth of an industry. GrainCorp is an Australian Giant
operating and handling sixty percent of the region’s wheat canola and barley, chickpea, and
sorghum crops. The close competitor; The Archer Daniels Midland Company is an American
international food processing and commodities trading corporation with headquarters in Chicago,
Illinois (Swilley, 2014).
Context
GrainCorp Company being a worldwide producer makes it have other factors that affect
its operations as it is situated in different countries altogether. The various factors that affect the
company are political factors, technological factors, and much more factors.
Political factors
This then examines the current and likely influence from the available influence of the
political scene. The governments of various countries in which GrainCorp Company operates
can have a role in influencing its operations. The government has the powers to put fines to
companies that do not meet their required standards. The government also has the power to affect
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Marketing and Management 12
the pricing of commodities in the particular country. This can either make it cheaper for the
people or even more expensive (Jones, 2017).
Technological factors
When it comes to the agribusiness industry, technology has a very big role to play in this.
It is true to say that actually, the art of producing and distributing grains on its own is actually a
low technology business. According to GrainCorp company technology has played an important
role in its widespread activities. Technology has made the company to be able to introduce
online buying and ordering across the world. This then makes it possible for the company to
introduce new products like malt and oil (O'Keeffe, 2017).
Information collected by the GrainCorp Company
The company collects information from the feedback from the customers mostly. This
shows what the customers want. It also shows the company’s competitor as customers will name
their immediate preferences. The other way in which the company obtains information is through
conducting research on the sales in different parts of the world (Negi & Anand, 2017).
The company collects information from the feedback from the customers mostly. This
shows what the customers want. It also shows the company’s competitor as customers will name
their immediate preferences. The other way in which the company obtains information is through
conducting research on the sales in different parts of the world.
Market strategy of the GrainCorp Company
GrainCorp Company has intelligently kept itself in the worldwide grain market
(Faisal, 2016). Based on the fact that they operate in thirty different countries around the world
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Marketing and Management 13
means that they have to choose on whether to standardize their product for global advantages.
The market strategies include:-
Going global- this the company goes through the fact that it standardizes its products and
ensures that integration of its many services.
GrainCorp takes accountability for their decisions and actions and they own the
consequences of their decisions and accept results.
Constantly changing the product design- This is basically a move to target the youth. The
new design makes it look like they produce a new thing daily and the youth really love
such things.
GrainCorp has the courage to embrace change.
GrainCorp actively engages customers in decision-making and they keep their
commitments.
GrainCorp aims high, achieves results, celebrates success and they learn from their
mistakes and do the necessary corrections
The company has done a lot in terms of marketing and this has really helped it become
popular in the market.
Marketing tactics
The GrainCorp Company has plans of how to market as required by each and every
Company. The company has a marketing plan that outlines the various ways in which the
company does its marketing activities (Hannigan, 2012). The plan is made to cover a period of
one year. The plan has all the set of marketing activities of the organization. It covers the current
position of the company and where it wants to be in future
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Marketing and Management 14
Conclusions
The type of marketing strategy and the marketing plan that GrainCorp applies has made it
be on the frontline in the production and supply of grains. With the world, there is constant
advice on consumption of grains. As much as a lot of consumption of wheat is discouraged small
amounts of consumption are good for your health, this is not the case with consumption of other
grains. Customers love consumption of grains and since almost all grains are sweet and one
would like to consume more and more units of the products of grains. This is however
discouraged by nutritionists as it may lead to obesity. This may decrease the sales of the grains
and would negatively impact the income of the company, it's, therefore, better if the company
provides fat-free grains which are actually good for the customer's health
Recommendations
The GrainCorp Company should always and has always strived to produce their products
of quality standards and according to the market demand. GrainCorp should always strive to
produce fat-free grains that doctors and nutritionists do not discourage frequent consumption of
the products. GrainCorp should also strive to pay the grain owners in time, pay them what the
seeds are worth and make follow-ups for the growing of the grains to ensure the quality of the
growth and development of the grains is met.
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Marketing and Management 15
References
"ADM/GrainCorp: Australia's FDI rules in operation." International Financial Law Review
(February 2014): 6. Business Source Complete, EBSCOhost (accessed September 28,
2017).
Bachev, H 2013, 'Risk management in the agri-food sector', Contemporary Economics, 1, p. 45,
Business Insights: Essentials, EBSCOhost, viewed 28 September 2017.
Beeson, M 2014, 'Issues in Australian Foreign Policy', Australian Journal Of Politics & History,
60, 2, pp. 265-278, Academic Search Premier, EBSCOhost, viewed 28 September 2017.
Bosworth, M, & Cutbush, G 2014, 'Trading Nation: Advancing Australia's Interests in World
Markets', Economic Record, 90, 290, pp. 409-414, Business Source Complete,
EBSCOhost, viewed 28 September 2017.
Faisal, A. (2016). Marketing Strategies in Online/Digital Marketing. Account and Financial
Management Journal. doi:10.18535/afmj/v1i8.01
Hannigan, B. (2012). Company voluntary arrangements. Company Law, 561-576.
doi:10.1093/he/9780199608027.003.0022
Jones, L. (2017). 17. Company Law II Company Officers and Liabilities. Law Trove.
doi:10.1093/he/9780198766261.003.0017
Negi, S, & Anand, N 2017, 'Post-Harvest Losses and Wastage in Indian Fresh Agro Supply
Chain Industry: A Challenge', IUP Journal Of Supply Chain Management, 14, 2, p. 7,
Complementary Index, EBSCOhost, viewed 28 September 2017.
O'Keeffe, P 2017, 'contestability in the Australian wheat export industry', Journal of Australian
Political Economy, 79, pp. 65-86, Academic Search Premier, EBSCOhost, viewed 28
September 2017. Potter, M 2015, 'Takeover: Foreign Investment and the Australian
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Marketing and Management 16
Psyche', Policy, 31, 3, pp. 47-52, Academic Search Premier, EBSCOhost, viewed 28
September 2017.
Swilley, E. (2014). Upper Echelons Theory and Market Orientation: TMT Characteristics as
Antecedents to a Market Orientation. Revolution in Marketing: Market Driving Changes,
189-189. doi:10.1007/978-3-319-11761-4_92
Venkatesh, U 2008, 'The case for organized agri-retail--the Indian imperative', Journal of
Services Research, 1, p. 91, Business Insights: Essentials, EBSCOhost, viewed 28
September 2017.
Woś, B, & Gawlik, A 2015, 'The Development of Agri-tourism in Opole Province, Poland. From
Inexpensive Holidays in the Countryside to Experiential Marketing', JETA: Journal Of
Environmental & Tourism Analyses, 3, 1, pp. 80-89, Hospitality & Tourism Complete,
EBSCOhost, viewed 28 September 2017.
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