Strategic Marketing Plan for Amul's Australian Market Entry

This report outlines Amul's international marketing plan for entering the Australian market. It identifies key marketing objectives, including launching a new product line and achieving market penetration, targeting younger and older generations with milk-based chocolates. The report includes a SWOT analysis, a detailed marketing mix strategy encompassing product, price, place, and promotion, and an implementation plan with a timeline, budget, and evaluation process. The direct exporting strategy is recommended as the initial market entry mode. The plan aims to leverage the growing Australian chocolate market and Amul's brand equity to establish a viable presence, focusing on organic and chemical-free offerings to differentiate from competitors.

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

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Executive summary
The aim of this report is to discuss about the marketing objectives of Amul in doing business in
Australia. This report identified two major objectives for the business viability in the Australian
market and identified the targeted segments accordingly. It is identified that younger generation
of customers are the primary targeted customers for them while the older generation is their
secondary target segments. In addition, this report also discussed the different segmentation
variables for their target segments. It is concluded that direct exporting strategy will be the most
ideal entry mode strategy for Amul in entering in Australia. A marketing mix strategy is
discussed in accordance to the identified objectives including all the four elements. The
implementation plan discussed in this report included the budget and evaluation process for
Amul in measuring the success of their marketing plan.

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Table of Contents
1. Introduction..................................................................................................................................3
2. Assumptions................................................................................................................................4
2.1 SWOT analysis......................................................................................................................4
3. Marketing objectives...................................................................................................................6
3.1 Launching a new product.......................................................................................................6
3.2 New market penetration (Australia)......................................................................................7
4. Target markets.............................................................................................................................7
4.1 Target customers....................................................................................................................8
4.2 Target geography...................................................................................................................9
4.2.1 Market entry strategy....................................................................................................10
5. Marketing mix...........................................................................................................................10
5.1 Product.................................................................................................................................11
5.2 Price.....................................................................................................................................11
5.3. Place....................................................................................................................................12
5.4 Promotion............................................................................................................................13
6. Market positioning.....................................................................................................................13
7. Implementation plan..................................................................................................................14
7.1 Timeline...............................................................................................................................14
7.2 Budget..................................................................................................................................15

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7.3 Evaluation process...............................................................................................................19
8. Conclusion.................................................................................................................................20
Reference.......................................................................................................................................22

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1. Introduction
In the current business scenario, it is important for the contemporary business
organizations in having the flexibility of operating in the foreign locations also. This is due to the
reason that it is unviable for the contemporary business organizations to only depend on the
domestic market in the current competitive scenario. Thus, more organizations are searching for
potential markets in the foreign locations for their products and trying to enhance their global
positions (Akaka, Vargo & Lusch, 2013). This is helping them in increasing their brand value in
the global market as well as increasing the sales volume. However, it is also important to have
the proper understanding of the local market trends and patterns prior to the entry in the
particular market. This will ensure that the international marketing strategy of a particular
organization will be well aligned to that of the target market characteristics (Samiee, Chabowski
& Hult, 2015).
In the recent time, a major trend being identified of maximum number of global business
from the emerging economies. This is mainly due to the rapid development of economy of the
developing countries. Amul is the leading milk and milk products manufacturers from India and
having their presence across the world. They are founded in 1948 as a milk cooperative and
currently they are having more than 3.6 million dairy producers as their suppliers (Amul.com,
2018). In addition, they are having wide varieties of dairy products such as different chocolate
variants, ice cream and cheeses. However, they are proposing their chocolate brands for foreign
market operations due to the reason profit ratio from the chocolates is more compared to other
products (Palsule-Desai, Tirupati & Chandra, 2013). Hence, for their foreign market operations,
it is important to identify a potential country for investment.

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Australia is one of the major countries where Amul is still not having their presence.
However, they will have huge market potentiality there due to the reason that it is identified that
chocolate market in Australia will grow at the rate of 7 percent till 2023
(confectionerynews.com, 2018). This growth is mainly driven by the high demand for dairy
based products. It is also identified that milk chocolate is the largest revenue generator in the
Australian scenario and Amul is having wide variety of milk chocolates. Australia is having huge
number of immigrants from South Asian regions, which will be an added advantage for Amul in
operating in Australia (confectionerynews.com, 2018). This report will discuss about the
marketing approach of Amul in doing business in Australia on basis of a few assumptions. In
addition, this report will also discuss about the target market strategy in Australia along with the
marketing mix strategies. The implementation plan for the marketing strategy will also be
discussed and evaluated in this report.
2. Assumptions
This international marketing plan will be based on a few assumptions, which will include:
 Amul is having their business objective for global expansion.
 Amul is having the flexibility and market adaptation strategy to tap the foreign markets.
 Amul is having the expertise in terms of capital and infrastructural support for the foreign
market operations.
 Analysis and evaluation to be done in this report will provide only the overall view and
not exact estimates.
2.1 SWOT analysis
Strengths  Amul is having favorable brand equity in their existing markets. This will

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help them to push their sales in the new markets (Jhunjhunwala, 2014).
 Amul is a billion dollar brand and this is having the access to larger
financial sources (Prasad & Satsangi, 2013).
 High diversity of products will help them to tap different customer
segments in the further stage.
 They are already having presence in different foreign markets. Thus, they
will not find difficult to operate in Australia.
Weaknesses  Amul is not having manufacturing facilities in any foreign locations.
Thus, they are entirely depended on exporting (Gandhi, 2014).
 Having lower brand value compared to global chocolate brands such as
Mars in the international market.
 Sourcing milk in cooperative basis will be difficult to implement in
foreign locations (Nisa, 2015).
Opportunities  Chocolate market of Australia is estimated to increase in the next few
years.
 Diversified product portfolio of Amul will also ensure to tap the growing
opportunities in different other markets (Deepak, 2014).
 Amul is having the opportunity of position itself as a social media by
uplifting the social economy by means of cooperation (Khare, 2014).
Threats  Emergence of new Australia based competitors will pose threat to Amul
(Llamas & Jomo, 2018).
 Emergence of economic recession will further create challenge for Amul
in their foreign business.

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 Rapid change in the taste and preference pattern of the customers will
pose threat for Amul to change their product strategy.
3. Marketing objectives
The two major marketing objectives for Amul being identified are the launching a new
product line in the new market and penetrating in the new market further. Both these marketing
objectives are being designed in accordance to the goal of effective market presence in Australia
(Chang, Hu & Hong, 2013). The following sections will discuss about both these objectives
using the SMART concept.
3.1 Launching a new product
Launching a new product is the most critical in developing the foreign business. This is
due to the reason that market oriented products should be introduced for the particular foreign
market to meet the local taste and preference pattern (Gruner, Homburg & Lukas, 2014). In this
case, Amul should launch new brand of milk chocolates including some chocolates with fruit
blends and flavor. This is due to the reason that fruit blended chocolates are popular in the
Australian market.
 Specific: It is estimated that the new product line to be launched in Australia will
contribute 5 percent of the total revenue of Amul in the first year.
 Measurable: It will be measured by the determination of market coverage of the new
products in the Australian market.
 Attainable: Demand for chocolates is on rise in the Australian market.

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 Realistic: Amul is having their presence in India for more than 50 years and have few
years of experience of operating in the foreign markets.
 Timeframe: It is targeted that this objective will be achieved in the next 1 year.
3.2 New market penetration (Australia)
Market penetration is also important for the foreign business operations for Amul. This is
due to the reason that the more will be the extent of market penetration for them, the more will
be the market potentiality for the new products (Grilli & Murtinu, 2014). It is targeted that 10
percent of the Australian market will be covered in the first year.
 Specific: The target market will be covered by about 10 percent. This portion will ensure
the viability for Amul in the initial stage.
 Measurable: The performance will be measured by calculating brand visibility and
distribution in different locations of Australia.
 Attainable: Australian market is having enough business scope for the new brands in the
chocolate and confectionary sector.
 Realistic: Amul is having the experience of initiating foreign business in different
countries already.
 Timeframe: It is targeted that 10 percent of the Australian market will be achieved within
the 1 year.
4. Target markets
Identification of target market is important in the international marketing plan. This is
due to the reason that Amul will target a particular customer segment and will cater to their
respective expectations. Thus, effective identification of the target market will help Amul in

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having the proper understanding of the taste and preference pattern of the target customers. This
will help Amul to design their product strategy accordingly (Aghdaie & Alimardani, 2015). The
major value proposition of Amul in targeting the customers will be the wholly milk based
chocolates without the use of any chemicals and artificial agents. This will help in positioning
themselves as a more organic alternative to the conventional substitutes. However, it is also
important for them to segregate the target customers in the basis of different traits, which will be
discussed in the following sections.
4.1 Target customers
Variables Characteristics
Demographic  Age groups between 7 and 20 will be targeted. This is due to the
facts that younger aged customers will be more preferable towards
the chocolate products. In addition, the elderly age groups will be
targeted as the secondary target group for further market
penetration (Azar, 2014).
 Customers across different price levels will be targeted by diverse
offerings of Amul.
 Both male and female will be targeted.
Behavioral  Customers searching for quality and chemical free chocolates at
affordable price will be targeted.
 Expecting sweeter taste from the chocolates compared to the dark
ones.
 Frequent customers will be more targeted over the single time users

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(Bunduchi, 2013).
Psychographic  Preferences for chocolate products without having health issues.
 More preferable for the milk chocolates.
 Value for money seeking customers.
Geographic  In the initial stage, Tier I cities of Australia will be targeted for
gaining the infrastructural advantages (Chakrabarti & Mitchell,
2013).
 Areas with having major South Asian immigrants.
 Urban settings for the customers.
4.2 Target geography
Determination of the target geography is also important as the target customers due to the
reason that it helps in identifying the trends and patterns of the target markets. In this report
target geography analysis of Australia is being done on the basis of secondary research.
However, it is preferable that primary research will help more effectively in determining the
local market trend (Clark, Li & Shepherd, 2018). It is identified that Australia is one of most
populous countries in the world and it is rapidly increasing in the recent time. This denotes that
Amul is having favorable market opportunities in doing business in Australia. This coupled with
the above identification of increasing opportunities for the chocolate industry is further proving
the viability of doing business in Australia. However, it should also be noted that Australia is
already having a good number of global and national chocolate brands operating. Thus, it may
get difficult for Amul to get the desired foothold in the new market (Shipley et al., 2013).

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4.2.1 Market entry strategy
Based on the above analysis of the business potentiality in Australia and competencies of
Amul, it is recommended that they should initiate direct exporting strategy in the initial stage and
licensing technique in the following period. This is due to the reason that Amul is already having
experience of direct exporting to different countries (Gubik & Karajz, 2014). Thus, it will be
beneficial for them if they follow the known route in the initial stage of operation in the
Australian market. In addition, initiation of the direct exporting model in the initial stage will
help Amul to have lower level of risk of investment and they will be able to determine the
market opportunity for their products In the Australian market prior to further investment. Direct
exporting will also enable Amul to reduce the cost of intermediaries in the entire process and can
offer their products at most competitive prices (Bernard, Grazzi & Tomasi, 2015).
It is also suggested that in the further stage of Australian operation of Amul, licensing
strategy should be initiated. This refers to the strategy of appointing a local partner for the
manufacturing purposes. This will help Amul to have the local manufacturing facility in
Australia without having the requirement of huge investments (Laufs & Schwens, 2014).
Furthermore, Amul will be able to reduce their product cost by localizing the manufacturing
components and offering more customized products according to the local market trend and
preference pattern. Thus, Amul will have their physical presence and manufacturing facilities in
the Australian region.
5. Marketing mix
Determination of the marketing mix strategies is important for Amul due to the reason
that the effective implementation of the elements of marketing mix will help them to have