Aptamil Toddler: Australian Baby Milk in Chinese Market
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Report
AI Summary
This report provides a comprehensive market analysis for Aptamil Toddler's planned expansion into the Chinese market with its baby milk products. It begins with an executive summary and introduction, outlining the report's objectives and scope. The market analysis section delves into the size and growth rates of the infant market in China, the population demographics, market barriers, and drivers. An organizational analysis of Aptamil Toddler, including its 7Ps of the marketing mix (Product, Price, Place, Promotion, Physical Evidence, People, Process), is presented. Competitor analysis identifies key players in the Chinese baby milk market, along with their competitive advantages. The macro environment is examined through PESTLE and Porter's Five Forces models, alongside SWOT analysis. The report concludes with a summary of findings and recommendations for Aptamil Toddler's successful market entry into China, supported by references and appendices.

Running head: GLOBAL MARKETING
GLOBAL MARKETING
Name of the Student
Name of the University
Author Note
GLOBAL MARKETING
Name of the Student
Name of the University
Author Note
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1GLOBAL MARKETING
Executive Summary
The main aim of this report will be to discuss about the market details in China, where the
organization of Aptamil Toddler is planning to expand their business operations as they are
planning to launch baby milk products from Australia. This report will include background
about the organization along with the opportunities identified for the market expansion of
Aptamil Toddler in the context of market expansion in China. The name of the product is
Aptamil Toddler.
Executive Summary
The main aim of this report will be to discuss about the market details in China, where the
organization of Aptamil Toddler is planning to expand their business operations as they are
planning to launch baby milk products from Australia. This report will include background
about the organization along with the opportunities identified for the market expansion of
Aptamil Toddler in the context of market expansion in China. The name of the product is
Aptamil Toddler.

2GLOBAL MARKETING
Table of Contents
Introduction................................................................................................................................3
Market Analysis.........................................................................................................................3
Size of the market and Growth Rates.....................................................................................3
Population..............................................................................................................................4
Market Barriers and Market Drivers......................................................................................4
Organizational Analysis.............................................................................................................5
7P’S........................................................................................................................................5
Competitor Analysis...............................................................................................................9
Competitive Advantage..........................................................................................................9
Macro Environment...................................................................................................................9
PESTLE..................................................................................................................................9
Porter Five Forces................................................................................................................10
Value Chain..........................................................................................................................12
SWOT..................................................................................................................................13
Conclusion................................................................................................................................15
References................................................................................................................................16
Appendix..................................................................................................................................17
Table of Contents
Introduction................................................................................................................................3
Market Analysis.........................................................................................................................3
Size of the market and Growth Rates.....................................................................................3
Population..............................................................................................................................4
Market Barriers and Market Drivers......................................................................................4
Organizational Analysis.............................................................................................................5
7P’S........................................................................................................................................5
Competitor Analysis...............................................................................................................9
Competitive Advantage..........................................................................................................9
Macro Environment...................................................................................................................9
PESTLE..................................................................................................................................9
Porter Five Forces................................................................................................................10
Value Chain..........................................................................................................................12
SWOT..................................................................................................................................13
Conclusion................................................................................................................................15
References................................................................................................................................16
Appendix..................................................................................................................................17
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3GLOBAL MARKETING
Introduction
The main aim of this report will be to discuss about the market details in China, where
the organization of Aptamil Toddler is planning to expand their business operations as they
are planning to launch their baby milk product. This report will include background about the
organization along with the opportunities identified for the market expansion of Aptamil
Toddler in the context of market expansion in China. The market analysis along with the size
and growth rates of the market will also be discussed. The population for the marketing of
this product will be analyzed, as well as the barriers and drivers present in the market. The
organizational analysis on Aptamil Toddler will also be included in this report, and the 7P’s
of marketing mix, as it is a service which is provided to China by the organization of Aptamil
Toddler. The major competitors present in the market place of China for baby milk and the
market share they possess will be discussed here in this report. The competitor advantage
along with analysis with the help of marketing tools like Porter Five Forces model, SWOT,
PESTLE, BCG Matrix and Value Chain will be discussed. A positioning map will be there,
which will show the place of the competitors and the market opportunities available for
Aptamil Toddler in China.
Market Analysis
Size of the market and Growth Rates
The size of the infant market in China is a large one. The sales of the foreign brand
milk powder take more than 70-75% of total national sales in the market place of China. The
market has increase after the country dropped the one-child policy and now the growth rate is
more than 11%. China is considered to be the largest market in the Asia-pacific region in
terms of selling of baby milk (Song & Liu, 2014).
Introduction
The main aim of this report will be to discuss about the market details in China, where
the organization of Aptamil Toddler is planning to expand their business operations as they
are planning to launch their baby milk product. This report will include background about the
organization along with the opportunities identified for the market expansion of Aptamil
Toddler in the context of market expansion in China. The market analysis along with the size
and growth rates of the market will also be discussed. The population for the marketing of
this product will be analyzed, as well as the barriers and drivers present in the market. The
organizational analysis on Aptamil Toddler will also be included in this report, and the 7P’s
of marketing mix, as it is a service which is provided to China by the organization of Aptamil
Toddler. The major competitors present in the market place of China for baby milk and the
market share they possess will be discussed here in this report. The competitor advantage
along with analysis with the help of marketing tools like Porter Five Forces model, SWOT,
PESTLE, BCG Matrix and Value Chain will be discussed. A positioning map will be there,
which will show the place of the competitors and the market opportunities available for
Aptamil Toddler in China.
Market Analysis
Size of the market and Growth Rates
The size of the infant market in China is a large one. The sales of the foreign brand
milk powder take more than 70-75% of total national sales in the market place of China. The
market has increase after the country dropped the one-child policy and now the growth rate is
more than 11%. China is considered to be the largest market in the Asia-pacific region in
terms of selling of baby milk (Song & Liu, 2014).
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4GLOBAL MARKETING
Population
The present population of China has reached almost 1.4 billion, whereas the infant
population is more than 83 million, which is very much attractive to attract new foreign
companies into the Chinese market place (Yao, Kinugasa & Hamori, 2013).
Fig. 1: Population of China
Source: Created by the Author
Market Barriers and Market Drivers
After the Unites States of America, the second largest producer of baby food is China
and this serves as one of the major market drivers for baby milk industry. It can be predicted
that the total new-borns each year will cross 17 million and the babies ageing 0-3-years will
be about 50 million in the upcoming few years. With this ever-increasing number of babies
and the exceptional buying momentum of Chinese people, the demand for imported baby
milk will always increase. On the other hand, the organization related with the import of baby
Population
The present population of China has reached almost 1.4 billion, whereas the infant
population is more than 83 million, which is very much attractive to attract new foreign
companies into the Chinese market place (Yao, Kinugasa & Hamori, 2013).
Fig. 1: Population of China
Source: Created by the Author
Market Barriers and Market Drivers
After the Unites States of America, the second largest producer of baby food is China
and this serves as one of the major market drivers for baby milk industry. It can be predicted
that the total new-borns each year will cross 17 million and the babies ageing 0-3-years will
be about 50 million in the upcoming few years. With this ever-increasing number of babies
and the exceptional buying momentum of Chinese people, the demand for imported baby
milk will always increase. On the other hand, the organization related with the import of baby

5GLOBAL MARKETING
milk to the market place of China, need to follow the administrative measures on Inspection,
Quarantine and Supervision of Import and Export Dairy Products after a series of milk
powder scandals. The imported baby milk powder must be found in compliance with Chinese
regulations as well as national food safety standards. In one sentence, it can be said that the
formula and label of baby milk powder should be designed specifically for the Chinese
market, so that no complications are faced by the organization of Aptamil Toddler (Wu, Yang
& Chen, 2017).
SN Market Barriers Market Drivers
1 Inspection Second Largest baby Food market
2 Quarantine Ever-increasing of infant population
3 Supervision Exceptional buying momentum
Organizational Analysis
Aptamil Toddler is an Australian organization who are engaged in producing and
selling of baby milk products in the market place of Australia. They lay stress on the science
and research in order to innovate their products to provide early life nutrition to as many
children as possible. The main aim of the organization is to provide high quality nutrition to
the children of Australia which will be based on research and science. The main targeted
children are those who are not able to get their mother’s milk. There are three research
centres who work in close partnership with institutions, universities and hospitals around the
world (Antràs & Chor, 2013).
7P’S
As it is a service, the 7 P’s for the import of the baby milk from Australia to China will be
as follows:
milk to the market place of China, need to follow the administrative measures on Inspection,
Quarantine and Supervision of Import and Export Dairy Products after a series of milk
powder scandals. The imported baby milk powder must be found in compliance with Chinese
regulations as well as national food safety standards. In one sentence, it can be said that the
formula and label of baby milk powder should be designed specifically for the Chinese
market, so that no complications are faced by the organization of Aptamil Toddler (Wu, Yang
& Chen, 2017).
SN Market Barriers Market Drivers
1 Inspection Second Largest baby Food market
2 Quarantine Ever-increasing of infant population
3 Supervision Exceptional buying momentum
Organizational Analysis
Aptamil Toddler is an Australian organization who are engaged in producing and
selling of baby milk products in the market place of Australia. They lay stress on the science
and research in order to innovate their products to provide early life nutrition to as many
children as possible. The main aim of the organization is to provide high quality nutrition to
the children of Australia which will be based on research and science. The main targeted
children are those who are not able to get their mother’s milk. There are three research
centres who work in close partnership with institutions, universities and hospitals around the
world (Antràs & Chor, 2013).
7P’S
As it is a service, the 7 P’s for the import of the baby milk from Australia to China will be
as follows:
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6GLOBAL MARKETING
1. Product – As discussed, the product which will be promoted to the marketplace of
China will be Aptamil Toddler, mainly due to capture the region of China, as it has
become the second largest baby food market after the Unites States of America. It will
be the market expansion for Aptamil Toddler in the most populous country of the
world. It will be available in tetra-packs as well as in packets of various other
denominations up to 5l. The product falls under the actual product, which will include
the design quantity, packaging and others.
Fig 2: Product Level
1. Product – As discussed, the product which will be promoted to the marketplace of
China will be Aptamil Toddler, mainly due to capture the region of China, as it has
become the second largest baby food market after the Unites States of America. It will
be the market expansion for Aptamil Toddler in the most populous country of the
world. It will be available in tetra-packs as well as in packets of various other
denominations up to 5l. The product falls under the actual product, which will include
the design quantity, packaging and others.
Fig 2: Product Level
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7GLOBAL MARKETING
2. Price – Initially, they have to maintain a low price as Aptamil Toddler have to fight
with the competitors who are already available in the market places of China. They
will offer the customers a lower price while at the same time will provide superior
quality of baby milk product to the people of China. Aptamil Toddler will always
focus to lower the cost of the product and as the cost of living in China is high, it will
be a competitive advantage for Aptamil Toddler, who is a cost leader organization in
the market place of Australia and the same thing they will maintain in the market
place of China also. The price of the product will be 20 Chinese Yuan for smallest
tetra packs to 1,000 Chinese Yuan for 5l pack.
3. Place – The baby milk product will be sold from all the main supermarkets and big
retail outlets of the main cities of China on initial stages, and according to the
acceptance of the product, Aptamil Toddler will open their own outlets in major
locations. They will tie-up with the big distribution network or channel and import the
product to China and will sell through them. It will be available in all big grocery
stores of the major locations, in order to reach out to the maximum number of people.
4. Promotion – In this modern tech-savvy world, the main promotional channel will be
the social media platforms. Aptamil Toddler will take the advantage of these and will
provide inaugural offers on their advertisements through the different social media
platforms which are available in China, like WeChat, Sina Weibo, Douban, Momo
and others. Apart from these, the organization will provide advertisements in leading
magazines and newspapers of where it will target to sell their baby milk product on
initial stages. They may also consider to provide digital hoarding advertisements in
major locations in some major cities in order to attract the attention of a greater
number of people.
2. Price – Initially, they have to maintain a low price as Aptamil Toddler have to fight
with the competitors who are already available in the market places of China. They
will offer the customers a lower price while at the same time will provide superior
quality of baby milk product to the people of China. Aptamil Toddler will always
focus to lower the cost of the product and as the cost of living in China is high, it will
be a competitive advantage for Aptamil Toddler, who is a cost leader organization in
the market place of Australia and the same thing they will maintain in the market
place of China also. The price of the product will be 20 Chinese Yuan for smallest
tetra packs to 1,000 Chinese Yuan for 5l pack.
3. Place – The baby milk product will be sold from all the main supermarkets and big
retail outlets of the main cities of China on initial stages, and according to the
acceptance of the product, Aptamil Toddler will open their own outlets in major
locations. They will tie-up with the big distribution network or channel and import the
product to China and will sell through them. It will be available in all big grocery
stores of the major locations, in order to reach out to the maximum number of people.
4. Promotion – In this modern tech-savvy world, the main promotional channel will be
the social media platforms. Aptamil Toddler will take the advantage of these and will
provide inaugural offers on their advertisements through the different social media
platforms which are available in China, like WeChat, Sina Weibo, Douban, Momo
and others. Apart from these, the organization will provide advertisements in leading
magazines and newspapers of where it will target to sell their baby milk product on
initial stages. They may also consider to provide digital hoarding advertisements in
major locations in some major cities in order to attract the attention of a greater
number of people.

8GLOBAL MARKETING
0.5; 50%
0.3; 30%
0.2; 20%
Chart Title
Social Media
Newspapers and Magazines
Hoardings
Fig 3: Promotional Channel Pei Chart
Source: Created by the Author
5. Physical Evidence – The grocery stores along with the supermarkets from where the
baby milk products will be sold will serve as the physical evidence of the organization
of Aptamil Toddler. According to the acceptance of the product in the market,
Aptamil Toddler will open their own outlets in major locations, which will be
considered as own physical evidences of the organization.
6. People – Aptamil Toddler believe that the relationship with the customer is very
important. They will hire some employees who will be trained to interact and enhance
customer service by selling the baby milk product in the market place of China. They
will provide market leading customer service to the people of China and will increase
the value to the customers, which will help them to compete in the market of China.
7. Process – Aptamil Toddler will improve its procedures in the supply chain to provide
better to the customers of China. Streamlining of procedures is used to cut cost which
add value to its customers. Aptamil Toddler has simplified the system of buying by
using online supermarket, which they will start in china also according to the
acceptance of their product (Dong & Li, 2016).
0.5; 50%
0.3; 30%
0.2; 20%
Chart Title
Social Media
Newspapers and Magazines
Hoardings
Fig 3: Promotional Channel Pei Chart
Source: Created by the Author
5. Physical Evidence – The grocery stores along with the supermarkets from where the
baby milk products will be sold will serve as the physical evidence of the organization
of Aptamil Toddler. According to the acceptance of the product in the market,
Aptamil Toddler will open their own outlets in major locations, which will be
considered as own physical evidences of the organization.
6. People – Aptamil Toddler believe that the relationship with the customer is very
important. They will hire some employees who will be trained to interact and enhance
customer service by selling the baby milk product in the market place of China. They
will provide market leading customer service to the people of China and will increase
the value to the customers, which will help them to compete in the market of China.
7. Process – Aptamil Toddler will improve its procedures in the supply chain to provide
better to the customers of China. Streamlining of procedures is used to cut cost which
add value to its customers. Aptamil Toddler has simplified the system of buying by
using online supermarket, which they will start in china also according to the
acceptance of their product (Dong & Li, 2016).
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9GLOBAL MARKETING
Competitor Analysis
The competitors who are already available in the market of China are Nestle, Danone,
Wahaha, Evergrande Group, Bosses and others. Eight of the top 10 brands related to baby
milk products in China are foreign. Nutricia from Danone leads the market share with 10 per
cent, followed by Illuma from Nestlé with 9 per cent (Wang, Chen & He, 2015). The main
strength of the competitors is that they are present in the market of Australia for a longer
period of time, and are successful to analyse the needs and wants of the people of China
towards the baby milk product of the organization. And the main weaknesses of those brands
are that there are lots of competitors present in China, most of the them are foreign brands.
Competitive Advantage
The competitive advantage or the unique selling proposition of Aptamil Toddler is
their sustainability, and the same thing will be used in marketing their baby milk product in
China as well. They are also recognized with the quality of their services and the same thing
will be maintained in China also, to target the untapped market (Wang, Chen & He, 2015).
As the organization already possess brand image and brand loyalty in the market place of
Australia, it will help them to use that in the market of China while launching their product.
Macro Environment
PESTLE
Political – Aptamil Toddler need to follow the political conditions of China and the
stability of the national as well as local government will help the organization to enter and
sustain in the market.
Competitor Analysis
The competitors who are already available in the market of China are Nestle, Danone,
Wahaha, Evergrande Group, Bosses and others. Eight of the top 10 brands related to baby
milk products in China are foreign. Nutricia from Danone leads the market share with 10 per
cent, followed by Illuma from Nestlé with 9 per cent (Wang, Chen & He, 2015). The main
strength of the competitors is that they are present in the market of Australia for a longer
period of time, and are successful to analyse the needs and wants of the people of China
towards the baby milk product of the organization. And the main weaknesses of those brands
are that there are lots of competitors present in China, most of the them are foreign brands.
Competitive Advantage
The competitive advantage or the unique selling proposition of Aptamil Toddler is
their sustainability, and the same thing will be used in marketing their baby milk product in
China as well. They are also recognized with the quality of their services and the same thing
will be maintained in China also, to target the untapped market (Wang, Chen & He, 2015).
As the organization already possess brand image and brand loyalty in the market place of
Australia, it will help them to use that in the market of China while launching their product.
Macro Environment
PESTLE
Political – Aptamil Toddler need to follow the political conditions of China and the
stability of the national as well as local government will help the organization to enter and
sustain in the market.
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10GLOBAL MARKETING
Economical – The income and spending capacity of the customers of China need to
be taken into consideration by Aptamil Toddler Group in order to enter the market of China
with their baby milk product.
Social – The needs and requirements of the people of China towards baby milk
products need to be assessed so that they can manufacture their product and sell them in
China accordingly.
Technological – The increase usage of internet will help Aptamil Toddler to attract
more people towards their product and payment facilities will become easier due to the
advancement of the modern technology towards innovation.
Legal – The legal factors like agreements with the local and national governments
need to be properly done so that marketing and selling of the baby milk product can be
performed ethically.
Environmental – Aptamil Toddler is renowned for their sustainable products and
packages and the same will be maintained for the market place of China as well (Ho, 2014).
Porter Five Forces
Description High Medium Low
Threat of New
Entrants
√√√
Threat of New
Entrants
√√√
Bargaining Power
of Buyers
√√√
Threat of
Substitute Products
√√√
Economical – The income and spending capacity of the customers of China need to
be taken into consideration by Aptamil Toddler Group in order to enter the market of China
with their baby milk product.
Social – The needs and requirements of the people of China towards baby milk
products need to be assessed so that they can manufacture their product and sell them in
China accordingly.
Technological – The increase usage of internet will help Aptamil Toddler to attract
more people towards their product and payment facilities will become easier due to the
advancement of the modern technology towards innovation.
Legal – The legal factors like agreements with the local and national governments
need to be properly done so that marketing and selling of the baby milk product can be
performed ethically.
Environmental – Aptamil Toddler is renowned for their sustainable products and
packages and the same will be maintained for the market place of China as well (Ho, 2014).
Porter Five Forces
Description High Medium Low
Threat of New
Entrants
√√√
Threat of New
Entrants
√√√
Bargaining Power
of Buyers
√√√
Threat of
Substitute Products
√√√

11GLOBAL MARKETING
or Services
Rivalry among
Existing Firms
√√√
Threat of New Entrants - The economies of balance are moderately hard to achieve
in the industry in which Aptamil Toddler performs. It helps the organizations to make it easy
for who are creating in huge quantities to enjoy a price advantage. In addition, it makes
production costlier for new entrants, and create a weaker power to the dangers of new
entrants.
Bargaining Power of Suppliers – In the industry, the quantity of suppliers in which
Aptamil Toddler performs is huge while comparing to the consumers. This proves that the
suppliers possess less command over costs and this makes a weak power of the bargaining
capability of suppliers.
Bargaining Power of Buyers - In the industry the quantity of suppliers in which
Aptamil Toddler performs is larger than the quantity of firms that produces products. This
proves that the consumers have less companies to select, and hence, do not possess much
command over the costings. In the sector it weakens the power of bargaining for the
customers.
Threat of Substitute Products or Services - The smaller number of substitutes
which are available are of high quality but expensive. On the other hand, companies
manufacturing within the sector in which Aptamil Toddler performs sell at a lesser cost than
alternatives, with sufficient quality. It proves that customers are less prone to switch to
alternative products, and proves that the threat is weak for substitute products in the sector.
or Services
Rivalry among
Existing Firms
√√√
Threat of New Entrants - The economies of balance are moderately hard to achieve
in the industry in which Aptamil Toddler performs. It helps the organizations to make it easy
for who are creating in huge quantities to enjoy a price advantage. In addition, it makes
production costlier for new entrants, and create a weaker power to the dangers of new
entrants.
Bargaining Power of Suppliers – In the industry, the quantity of suppliers in which
Aptamil Toddler performs is huge while comparing to the consumers. This proves that the
suppliers possess less command over costs and this makes a weak power of the bargaining
capability of suppliers.
Bargaining Power of Buyers - In the industry the quantity of suppliers in which
Aptamil Toddler performs is larger than the quantity of firms that produces products. This
proves that the consumers have less companies to select, and hence, do not possess much
command over the costings. In the sector it weakens the power of bargaining for the
customers.
Threat of Substitute Products or Services - The smaller number of substitutes
which are available are of high quality but expensive. On the other hand, companies
manufacturing within the sector in which Aptamil Toddler performs sell at a lesser cost than
alternatives, with sufficient quality. It proves that customers are less prone to switch to
alternative products, and proves that the threat is weak for substitute products in the sector.
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