Arnott Biscuits: Global Marketing Management Report - China Market

This report provides a detailed analysis of Arnott Biscuits' global marketing strategy, specifically focusing on its potential expansion into the Chinese market. It begins with an introduction outlining the company's focus on delivering high-quality biscuits and its global expansion goals. A situational analysis follows, examining the business environment in China, including political, economic, social, technological, and environmental factors, and their impact on the company. The market analysis section assesses market size, characteristics, and target market behavior. Competitor and organizational analyses are also conducted, evaluating key competitors like Danone and Kraft, and the company's technical capabilities, skills, and relationships. A SWOT analysis is performed to identify strengths, weaknesses, opportunities, and threats. The report concludes with a summary of findings and recommendations for Arnott Biscuits' strategic approach to the Chinese market, supported by references.

qwertyuiopasdfghjklzxcvbnmqwe
rtyuiopasdfghjklzxcvbnmqwertyu
iopasdfghjklzxcvbnmqwertyuiopa
sdfghjklzxcvbnmqwertyuiopasdfg
hjklzxcvbnmqwertyuiopasdfghjkl
zxcvbnmqwertyuiopasdfghjklzxcv
bnmqwertyuiopasdfghjklzxcvbnm
qwertyuiopasdfghjklzxcvbnmqwe
rtyuiopasdfghjklzxcvbnmqwertyu
iopasdfghjklzxcvbnmqwertyuiopa
sdfghjklzxcvbnmqwertyuiopasdfg
hjklzxcvbnmqwertyuiopasdfghjkl
zxcvbnmqwertyuiopasdfghjklzxcv
bnmqwertyuiopasdfghjklzxcvbnm
qwertyuiopasdfghjklzxcvbnmqwe
rtyuiopasdfghjklzxcvbnmrtyuiopa
Global Marketing Management
8/19/2019
(Student Name)

GLOBAL MARKETING MANAGEMENT 1
Table of Contents
1. Introduction..................................................................................................................................2
2. Situational Analysis.....................................................................................................................2
2.1. Business Environment...........................................................................................................2
2.1.1. Political and Legal Factor...............................................................................................2
2.1.2. Economic Factor.............................................................................................................2
2.1.3. Social Factor...................................................................................................................3
2.1.4. Technological Factor......................................................................................................4
2.1.5. Environmental Factor.....................................................................................................4
2.3. Market Analysis........................................................................................................................4
2.3.1. Market Size and Outlook...................................................................................................4
2.3.2 Market Characteristics.....................................................................................................4
2.3.3. Target Market Behavior.................................................................................................4
2.4 Competitor Analysis...........................................................................................................5
2.5 Organizational Analysis.........................................................................................................5
2.5.1 Previous and Current Experience....................................................................................5
2.5.2 Technical Capabilities.....................................................................................................5
2.5.3 Skills and Knowledge of Technological.........................................................................6
2.5.4 Relationship with the Market..........................................................................................6
2.5.5 Company profile and Financial Capabilities...................................................................6

GLOBAL MARKETING MANAGEMENT 2
2.5.6 Business Philosophy and Culture....................................................................................6
3.0 SWOT Analysis.........................................................................................................................6
3.1 Strengths and Weaknesses.....................................................................................................6
3.1.1 Strengths..........................................................................................................................6
3.1.2 Weaknesses.....................................................................................................................6
3.2 Opportunities and Threats......................................................................................................7
3.2.1 Opportunities...................................................................................................................7
3.2.2 Threats.............................................................................................................................7
4.0 Conclusion.................................................................................................................................7
5.0 References..................................................................................................................................8

GLOBAL MARKETING MANAGEMENT 3
1. Introduction
Due to increasing complexities and changing business trends, it becomes imperative for
the organization to analyse the product opportunity and make significant improvements for the
further satisfaction of the customers (Fletcher & Crawford, 2017). Identification of the product
opportunity gap will help the company in making improvements in the products and sustain the
brand image in the competitive market (Bai, Johanson & Martín, 2019).
Arnott Biscuit is considered as the largest producer of biscuit in Australia. It is a
subordinate company of Campbell Soup Company of United States. The corporation focuses
upon delivering real food to the millions of Australians. It delivers biscuits, snacks, and crackers
of finest quality by using the best ingredients. The company is focusing on global operations and
has expanded its business to almost 40 countries (Artnotts.com, 2019).
The further paragraphs of report will reflect upon the expansion of Arnott Biscuits in
China. It will include the market analysis and analysis of the business environment in which the
company will operate. It will also cover the analysis of organization and competition.
2. Situational Analysis
2.1. Business Environment
It will cover the analysis of the macro-environment of China that will affect the
performance of the company.
2.1.1. Political and Legal Factor
China is considered as a foremost market performer in the worldwide economy as well as
has turned into open market system which in turn provides the opportunity to foreign MNE’S
and has removed the trade barriers for the foreign investors. The country focuses upon expansion
of supermarket chains which will provide the opportunity to Arnott Biscuit to expand its
positioning in Chinese market (Park et al, 2017). The legislations of government also directly
affect the functioning of the company. It is analyzed that the government in China imposes
monopoly control and restricts the entry through licensing agreements which in turn limits the

GLOBAL MARKETING MANAGEMENT 4
access of raw material. However, the legislation leaves the direct impact on functioning of
company (Du & Luo, 2016).
2.1.2. Economic Factor
It is analyzed that the growth rate of China in the year 2018 has advanced from 6.4% and
the domestic demand of the country is high which brings the opportunity of revenue growth for
the company (Clemes, Hu & Li, 2016). The tax rate for foreign investors is 25% and also
includes special taxes based upon the industry. It is analyzed that the country will see expansion
in the wage growth which will increase the profitability of the company (Lu, Du, & Huang,
2017).
(Source: Lu, Du, & Huang, 2017)
2.1.3. Social Factor
The current population in China is 1.418 billion which is largest than any other country.
The average life expectancy rate in China is 73.18 years. It is analyzed that the consumers in
China focus on healthy and safe products so the company can enjoy strong brand positioning by
delivering finest quality products. The cultural norms create threat for the company because

GLOBAL MARKETING MANAGEMENT 5
implementing foreign format may create the threat of rejection of supermarket chain (Park et al,
2017).
(Source: Park et al, 2017).
2.1.4. Technological Factor
It is analyzed that the problem of poor infrastructure facilities and vast landmass creates
the problems of finding appropriate warehouses and the lack of authentic suppliers creates
complexity in operation of the business. However, the advancements in technology provide the
opportunity of growth to business (Yao, Zhou, Zhang & Li, 2015).
2.1.5. Environmental Factor
The environmental crisis in China is most sensitive ones and for which the government
has imposed policies to control pollution and has abolished the use of plastics. The control of
government on the environmental concerns restricts the production of the company and can
create threat to the expansion of business (Yao, Zhou, Zhang & Li, 2015).

GLOBAL MARKETING MANAGEMENT 6
2.3. Market Analysis
2.3.1. Market Size and Outlook
It is analyzed that the Chinese retail biscuit market will reach to 78.9bn RMB ($12.5 bn)
by the year 2021. The growing rate of CAGR will be 4.2% which in turn will increase the
demand of the imported biscuits. The market share for cookies biscuit will be largest and will
help the company in expanding market share.
2.3.2 Market Characteristics
The biscuit sales in China has been enhanced by 20.1 % in the past five years that make
the country third largest market for the product after the country India as well as China. It surge
in sales is the part of the general boo that has also led to an enhancement in the demand for the
numerous products. The Biscuits observer 5% total capacity development while the marketing
significance deals also grow by 9% to influence 60.8 billion RAM in the year 2015
(Takeungwongtrakul & Benjakul, 2017)
2.3.3. Target Market Behavior
The customer has also grown-up since 2000 for the biscuits as well as the young
generation prefer biscuits as well as bakery products that salty snacks. Furthermore, the market is
also expected to see 6% constant vale CAGAR over the future period. The ordinary unit price of
the biscuits is also predictable to enhance by 4% in the year 2015 due to the vibrant evolution of
the premium biscuits marketplace. Most of the biscuits are demanded by the women. It is
analyzed that 70% biscuits buyers are women. Consumers mostly prefer chocolate coated
biscuits, sandwich biscuits as well as special crafted biscuits with the small pack size of 100 to
200 grams (Kausar & Nadeem, 2017).
2.4 Competitor Analysis
Biscuits are the flooded at every corner of the Chinese life of the people. Frequently, they
are viewed as the appetizers to proposition the leisureliness when the individuals read the books
or watch movie. Therefore, the demand of the biscuits is at high pitch that enhance that attract
the companies to enlarge its trade in such market. The Chinese market is full with great

GLOBAL MARKETING MANAGEMENT 7
competition. In the recent moth the domestic as well as international biscuit corporations are
competitive in the biscuit creating business. The top biscuits international corporations in the
Chinese marker are Kraft as well as Danone (Costa-Font & Revoredo-Giha, 2019)
Danone is one of the multinational companies that have expanded its business in the
global marketplace. The corporation has gain reputation in the China as well. The corporation is
majorly notorious for its price as well as variety of flavor that is offer to the consumers. The
estimated annual revenue of the company is $28.7 billion with an estimated employee of over
105783 people that will provide great competition to the company (Zhang & Song, 2018).
Kraft is considered as one of the largest confectionery a well as processed food brand in
the international market. The company is majorly known for its premium food brand as well as
having the market leadership in the confectionery segment. The marketing strategy of the
company is at excellent level as well as with strong supply chain network that resists other
companies to compete such a strong brand (Shao & Kenney, 2018).
2.5 Organizational Analysis
2.5.1 Previous and Current Experience
Arnotts is one of the prevalent food corporations in Asia-Pacific district which include
Indonesia, Singapore, New Zealand as well as Japan. The company was introduced during the
past 146 years ago. A small bakery was opened in the year 1865 in Newcastle, North of Sydney.
It majorly produces bread as well as biscuits to the local people. In the recent the company is
considered as one of the prevalent food corporations in the Asia-Pacific zone. The corporation
has employed and maintains relation with more than 50000 employees. It has been shipped to
over 40 countries around the world (Weston, Hatton & Swann, 2018).
2.5.2 Technical Capabilities
The company has upgraded its manufacturing plant to make the biscuits in more flexible
as well as productive manner. At the time of embarking on Project FLEX, Arnott’s does not feel
any hesitation in calling on its longstanding automation a swell as control provider SAGA
Automation. The company leverages the intrinsic suppleness of the Rockwell Automation

GLOBAL MARKETING MANAGEMENT 8
Integrated Architecture System to experience a theatrical relocation to the new supervisor to
keep the plant or machinery running in an effective manner (Galapathy, 2018).
2.5.3 Skills and Knowledge of Technological
The company provide and arrange training program to its employee to understand the
usage of machines and techno that is been adopted by the organization to produce biscuits. The
professionals are hired to manage the technologies that are used by the organization.
2.5.4 Relationship with the Market
The company is one of the leading corporations in the Asia-Pacific Province. It maintains
healthy relationship with the consumers that made them possible to grow in the competitive
market. During the year, the company was benefited from strong domestic demand in term of
sales volume. Moreover, the market of China is healthy and has great demand for new biscuits.
Therefore, such tie up provides an opportunity for the company to maintain healthy relationship
in China as well (Lindberg, Nichols & Yam, 2017).
2.5.5 Company profile and Financial Capabilities
Arnott is one of the international dealings that have prolonged its corporate in the
international market. He company employee 6000 among which 3500 employee are working
only in Australia. It is considered as one of the biggest brand in biscuit in Australia that cover
high rate in the market share. The revenue of the company rose by 4.7% to $997.6 million till the
year 2014 that was enhance to $1.2 billion in the recent year.
2.5.6 Business Philosophy and Culture
The company maintains healthy relationship with the employee and consumers. They
arrange training programs for its employee and motivate them towards targeted goal as well as
the company also offer different discount to the consumers to make them happy. It has flexible
working environment in the organization (Harnanda, 2016).

GLOBAL MARKETING MANAGEMENT 9
3.0 SWOT Analysis
3.1 Strengths and Weaknesses
3.1.1 Strengths
 The company understand the needs of its consumers in more effective manner as they has
been making delicious as well as great food for over 135 years.
 The company has effective employee that work hard for the business that make company
more competitive.
 The company has earned great goodwill in the international market.
 It collects great ingredients from the countries where they locate their factories.
3.1.2 Weaknesses
 The company faces many challenges due to its competitors.
 Collecting information from consumers as well as collecting the feedback is the two
weaknesses of the company.
 The company spent in little companies that make the market of the company smaller than
its competitors.
 The company always offers premium price products to its consumers (Kasture et al.,
2019).
3.2 Opportunities and Threats
3.2.1 Opportunities
 The company has an opportunity to expand its business in Asia Pacific countries such as
expanding business in the market of China
 The Asia-Pacific region has strong sales continue growth up as well as it also has great
opportunities to create a new market.
 With the increase in the technology, the company has an opportunity to innovative new
products for its consumers.

GLOBAL MARKETING MANAGEMENT 10
3.2.2 Threats
 The company can face challenge in controlling the cost due to the reason of higher price
of agricultural commodities such as food oil, wheat that can affect the overall profitability
of the company to the certain extent.
 The pricing pressure from competitor in the new market can create threat to the company
(Austin, 2016).
4.0 Conclusion
It can be concluded from the above analysis that promotion tactic plays an essential role
while entering in the mew market. Most of the corporations have embraced operative advertising
approaches to grow in the competitive market. one of the leading Australia company Arnotts
biscuits is also forecasting to enlarge its corporate in the Chinese market due to the main reason
the control has stable political as well as economic environment that support the business to
nurture in the reasonable. The demand of biscuits is also high in such country that provisions the
corporation to nurture in such market. However, the level of competition is also high in such
market therefore it is essential for the firm to embrace effective marketing strategy to enter in the
new market.

GLOBAL MARKETING MANAGEMENT 11
5.0 References
Artnotts.com. (2019). About Us. Retrieved from: http://www.arnotts.com/about-arnotts/
Austin, G. W. (2016). The consumer in cross-border passing off cases. Victoria U. Wellington L.
Rev., 47, 209.
Bai, W., Johanson, M., & Martín, O. (2019). Dual Business Relationships, Opportunity
Knowledge, and New Product Development: A Study on Returnee Young
Ventures. Journal of International Marketing, 1069031X19852961.
Clemes, M. D., Hu, B., & Li, X. (2016). Services and economic growth in China: an empirical
analysis. Journal of the Asia Pacific Economy, 21(4), 612-627.
Costa-Font, M., & Revoredo-Giha, C. (2019). Introduction of New Food Products in China: Is
There a Trend towards Healthier and Safer Products?. Social Sciences, 8(2), 51.
Du, X., & Luo, J. H. (2016). Political connections, home formal institutions, and
internationalization: Evidence from China. Management and Organization Review, 12(1),
103-133.
Fletcher, R., & Crawford, H. (2017). International marketing: An Asia-Pacific Perspective.
Australia: Pearson
Galapathy, I. (2018). Busting the myth that the only way to reduce costs is automation-part 2. HR
Future, 2018(Sep 2018), 26-29.
Harnanda, S. (2016). Performance measurement of sustainable supply chain management
(SSCM) in newly established cocoa-processing company in Southeast Sulawesi,
Indonesia. OIDA International Journal of Sustainable Development, 9(11), 39-46.
Ho, J. K. K. (2014). Formulation of a systemic PEST analysis for strategic analysis. European
academic research, 2(5), 6478-6492.

GLOBAL MARKETING MANAGEMENT 12
Kasture, A., Vandevijvere, S., Robinson, E., Sacks, G., & Swinburn, B. (2019). Benchmarking
the commitments related to population nutrition and obesity prevention of major food
companies in New Zealand. International journal of public health, 1-11.
Kausar, T., & Nadeem, M. A. M. (2017). Effect of ginger powder incorporation on
physicochemical and organoleptic characteristics of biscuits. Pure and Applied Biology
(PAB), 6(4), 1244-1250.
Lindberg, R., Nichols, T., & Yam, C. (2017). The healthy eating agenda in Australia. Is salt a
priority for manufacturers?. Nutrients, 9(8), 881.
Lu, B., Du, X., & Huang, S. (2017). The economic and environmental implications of
wastewater management policy in China: From the LCA perspective. Journal of cleaner
production, 142, 3544-3557.
Park, S., Sung, E., Choi, Y., Ryu, S., Chang, Y., & Gittelsohn, J. (2017). Sociocultural factors
influencing eating practices among office workers in urban South Korea. Journal of
nutrition education and behavior, 49(6), 466-474.
Shao, T., & Kenney, M. (2018). Ctrip: China's Online Travel Platform—Local Giant or Global
Competitor?. Available at SSRN 3153836.
Takeungwongtrakul, S., & Benjakul, S. (2017). Biscuits fortified with micro-encapsulated
shrimp oil: characteristics and storage stability. Journal of food science and
technology, 54(5), 1126-1136.
Weston, A., Hatton, A., & Swann, P. (2018). It's the pick of Australia's outdoor for 2018. B&T,
(2828), 38.
Yao, X., Zhou, H., Zhang, A., & Li, A. (2015). Regional energy efficiency, carbon emission
performance and technology gaps in China: A meta-frontier non-radial directional
distance function analysis. Energy Policy, 84, 142-154.
Zhang, S., & Song, H. (2018). Production and Distribution Planning in Danone Waters China
Division. Interfaces, 48(6), 578-590.