Australian Natural Care Business Plan for Pakistan Market Entry

This report presents a comprehensive international business plan for Australian Natural Care's entry into the Pakistani market. It begins with an executive summary, followed by an introduction outlining the company's background, including its product line of pharma, healthcare, organic supplements, and skincare products. The report delves into the Pakistani market, analyzing its geographical aspects, demographics, and the significance of Halal certification, consumer awareness of environmentally friendly products, and the role of technology. A SWOT analysis is conducted, highlighting the company's strengths (well-trained management, documented rules) and weaknesses (employee underpayment), along with opportunities (market potential) and threats (counterfeit products, competition). The report explores competitive strategies, emphasizing the need for an online presence and marketing through reviews and affiliate marketing. Market entry analysis considers economic and financial risks, political-legal factors, cultural factors, and technology-related considerations. It recommends a late entrant strategy, suggesting product innovation to differentiate from competitors. The report discusses marketing, R&D, production, and international HRM considerations, providing recommendations for distribution channels, pricing, advertising, service quality, supply chain, and workforce training. The research aims to offer a strategic guide for Australian Natural Care to establish and thrive in the Pakistani market, addressing various challenges and opportunities.

Running Head: AUSTRALIAN NATURAL CARE BUSINESS IN PAKISTAN
INTERNATIONAL BUSINESS PLAN 2019
AUSTRALIAN NATURAL CARE BUSINESS IN PAKISTAN

AUSTRALIAN NATURAL CARE BUSINESS IN PAKISTAN 2
EXECUTIVE SUMMARY
This report is intended towards the analysis of global marketplace elements to devise
a business plan for Australian Natural care. In this report, I focused on developing an
effective Australian natural care plan to build on the guidelines for starting operations in
Pakistan.
This report also discusses the various Economic, Social and Political factors in
Pakistan at the moment and how they can influence the business model and decisions.
In addition to this, I have also included the recommendations that will play a vital part
in deciding the direction for his international business plan in hopes that it will help target the
current market by learning and implementing the strategies that others are using to gain
success. It will highlight my learning in terms of creating an effective marketing and business
plan that can help a business initiate its operations in a new country with success.
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CONTENTS
INTRODUCTION.................................................................................................................................3
SELECTED COUNTRY BACKGROUND......................................................................................4
SWOT ANALYSIS...............................................................................................................................4
Strengths: -....................................................................................................................................4
Weaknesses: -................................................................................................................................4
Opportunities: -..............................................................................................................................4
Threats: -........................................................................................................................................5
ADDITIONAL ANALYSIS OF THE PAKISTANI MARKET............................................................5
COMPETITIVE STRATEGY ANALYSIS..........................................................................................6
MARKET ENTRY ANALYSIS...........................................................................................................7
1. Economic Financial Risk...........................................................................................................7
2. Political-Legal Factors...............................................................................................................7
3. Analysis of Cultural factors.......................................................................................................7
4. Technology Related Factors:.....................................................................................................8
MARKETING AND R&D CONSIDERATIONS.............................................................................8
MARKETING...................................................................................................................................8
1. Distribution Channels................................................................................................................8
2. Comparative Pricing Strategies..................................................................................................8
3. Advertising & Promotion...........................................................................................................9
4. Media Research.........................................................................................................................9
5. Service Quality Issues................................................................................................................9
6. Supply Chain.............................................................................................................................9
RESEARCH & DEVELOPMENT........................................................................................................9
RECOMMENDATIONS REGARDING PRODUCTION..................................................................10
INTERNATIONAL HRM ISSUES & CONSIDERATIONS..............................................................10
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INTRODUCTION
The following research paper is devised to tackle the issues pertaining to international
business markets in Pakistan. It will aid the company namely Australian Natural Care in
devising a business plan that will include how to better induce marketing strategies and other
factors for efficiency (Stutely, 2012).
Australian Natural Care is a healthcare company with the products related to pharma,
health care, organic supplements and skincare. It is currently only operating in Australia. The
SWOT analysis of the company in the previous assessment concluded that there is a need for
improved wages and business practices which will motivate the Australia Natural Care
workers. The strengths of the company include well-trained management that makes effective
decisions for the company's goal achievement. The country of research is Pakistan, where
research and studies prove is a lot of space for economic growth and ease of doing business
as there are not many entrepreneurial companies operating in it. It is an understood fact that
highly productive firms are more organized in their work and make better use of
informational technology and its incorporation, which is also stressed upon in this research
(McMillan & Rodrik, 2011). Foreign companies are always welcomed by the Government of
Pakistan as they will help increase the economy, GDP and in general living standards and
provide employment opportunities for the Pakistanis.
The analysis in this research will be focused on how Australian Natural Care needs to
focus on better innovation and adaptation of their products, what things they need to keep in
mind while operating in Pakistan (Economic, Political and Social Factors), what their
competitors are doing to reach their target audience and what more can be recommended to
tackle the issues related to productivity and HRM in Pakistan.
COMPANY BACKGROUND
The selected company is Australian Natural care. It is one of the most reputable
Australian companies that is known to deal with a variety of products within its market
platform to reach a specifically targeted group of individuals. These products include; beauty
and body products, healthy home products and even food products that are beneficial to the
body system. Currently, the organization doesn't have any forms of existing international
market activities.
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SELECTED COUNTRY BACKGROUND
The selected country is Pakistan, a country located in a place with many important
geographical aspects and four provinces namely, Khyber Pakhtoon Khuwa, Sindh, Punjab
and Balochistan. It has Afghanistan, China, Russia and India as the immediate neighbouring
countries. It also has access to the Arabian Sea and the Himalayan range of mountains.
Pakistan's youth make up 60% of its population and will be the target market for Australian
natural care products because they are more educated and health conscious.
SWOT ANALYSIS
Through the reference of the previous research-based assessment, a mode of analysis
namely the SWOT analysis will reveal useful information pertaining to the Australian
company divided into the following four sections;
Strengths: - The first strength of the company is the availability of well-trained
management personnel who are aware of how various issues should be handled within
the organization. The top management of the company is capable of providing reliable
and effective guidance that helps lead the organization towards their goals through the
right path. The management also ensures that all goals are met through safe and
proper means. The second important strength of the company is a set of well-
documented rules and regulations that govern the way employees of the company
operate in their respective areas of duty. These rules also help them implement the use
of ethical considerations as required.
Weaknesses: - The biggest weakness of the company is their underpayment of the
employees which results in not only unsatisfied employees but also a place where
they do not feel motivated to work at their best. The employees are at times subjected
to heavy workloads with minimal salaries which will decrease their morale in working
for the company.
Opportunities: - Through the business development in Pakistan, the company will
have a great opportunity in seizing a market that is ready for the health care products
and one that will aid in the future expansions to meet needs of customers
internationally.
Threats: - The biggest risk that the company can face is the availability of counterfeit
products and this is one of the major threat for companies operating in Pakistan.
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People are usually inclined towards cheaper products, and that may pose as a threat.
Another threat that the company might face is the competition in the market when it
comes to health care products that might prevent the company from operating
efficiently.
ADDITIONAL ANALYSIS OF THE PAKISTANI MARKET
The following points reveal an additional analysis regarding the Pakistani market for
business;
1. Halal certification is one of the biggest factors when it comes to consumer goods in
Pakistan as it predominantly a Muslim state and this certification are associated with
the religious beliefs of Muslims. Products that are not Halal are also said to be
unhealthy for human consumption because of the way they are processed or prepared
(Salman & Siddiqui, 2011). Due to religious reasons, the people of Pakistan generally
refuse to purchase goods that are not according to Halal Certification terms; hence
they will have to be checked for any substances or formulas that contradict this
requirement.
2. Modern marketers will have to raise awareness in the Pakistani market regarding
environmentally safe products and services through informative blogs, advertisements
and other sources as it will create awareness and guide people about Australia Natural
Care products with the added bonus of attracting customers that share the same belief
as the company (Ali, Khan, Ahmed & Shahzad, 2011). Recent studies show that the
Green purchase intentions of Pakistani consumers are associated with the following
factors;
 Perceived product price & quality.
 The organization’s green image.
 Environmental concern.
 Environmental knowledge.
Although there is a lack of knowledge and awareness in the Pakistani community
regarding this spectrum, there is still a growing community that will increase in the
coming years where people associate products with environmental safety (Ali & Ahmad,
2016). It is safe to say that going green will also provide the company with an edge over
the other companies as well.
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3. Usage of technology is not up to the maximum as entrepreneurs in Pakistan are not
aware of its full capabilities and hence don't implement those in running their businesses
effectively. Rising trends have made a difference in the use of technology but are not
enough to compare it with the western world. It is a known fact through research that
technology plays a vital role in the productivity of a firm (Jasra, Hunjra, Rehman, Azam
& Khan, 2011).
4. According to the methodology of “Doing Business”, it is relatively easy to start a
business in Pakistan. But a downside to this is employing workers, getting credit, paying
taxes and enforcing contracts. Large scale manufacturing is much better suited for the
environment in Pakistan rather than SMEs (Chemin, 2010).
5. There are no systems or organizations related to pharmacovigilance in Pakistan, but the
pharma industry in Pakistan has a lot of scopes and is improving. The main setback to this
industry is a large number of non-qualified and unscientific healers (Quacks) that are
operating and disrupting the flow of proper authentic medication in the country
(Mahmood, Amin, Tahir & Haq, 2011).
COMPETITIVE STRATEGY ANALYSIS
Corporate strategies will come to play in this part of the business plan as there will be
a need for doing market research on the competitors that the company will have to stand out
against while it introduces itself in the market (Beamish & Lupton, 2016). Competitive
advantage for Australian Natural Care can be devised by the following analysis of its
competitors in Pakistan;
1. Bigger companies like Saeed Ghani and The Vitamin Company use print media and
TV advertisements the most to help in their marketing campaigns.
2. They use a variety of media like Videos, articles, other types of visual content and
buyer guides to showcase their product line.
3. Highly interactive websites that list their products and the links to purchase them
are associated with the company using specific keywords.
The Australian Natural Care brand will have to create an online presence and then initiate the
marketing process through reviews, blog posts and other forms of affiliate marketing to
activate their brand in the new market.
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MARKET ENTRY ANALYSIS
In the respective order of market entry, this company would enter the Pakistani market as a
Late entrant because there are already a few established companies that provide the same
products in Pakistan (Rodriguez-Pinto, Carbonell & Rodriguez-Escudero, 2011; Essays,
2018). The products will have to be innovative enough to break into the market with a new
look and perspective to set them apart from the ones their competitors offer. The following
factors can help discuss the market conditions in Pakistan;
1. Economic Financial Risk:
There is a risk of getting credits and properly educated people to get the work
done as there is an abundance of skilled, but a lack of properly educated people in
Pakistan as the literacy rate is low. But labor and staff can be hired on a moderate
salary as the minimum wages in Pakistan are far less than those in Australia.
Adequate training of the workforce will be a must for efficient work (Afzal, Malik,
Begum, Sarwar & Fatima, 2012).
2. Political-Legal Factors
Due to many changes in the Government and military regulations of the
country, there is sometimes political unrest. The company may have to tackle issues
like law and order reinforcements, temporary shutdowns and insecurity in terms of
copyrights and high duty imports as these issues are highlighted in Pakistan’s current
political situation under the new rule of Prime Minister Imran Khan. Although these
issues are currently being worked upon due to the influence of social media
campaigns that give way to revolution, there is still time before the changes become
noticeable in the country (Arif, 2014; Rugman, Verbeke & Nguyen, 2011).
3. Analysis of Cultural factors
Pakistan is a country blessed with an array of different terrains be it the
availability of desserts, mountainous areas and the Arabian Sea along with close
proximity to other countries like China, India and Afghanistan. This will prove useful
for import purposes as there will be multiple options to get the cargo by Land, sea or
water. Apart from these geographical aspects, the people of Pakistan are relatively
open to the idea of Natural care products, especially those with skincare benefits as
there is a cultural stigma of fair skin in the Asian countries like Pakistan.
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4. Technology Related Factors:
The implementation of Information Technology helps many companies gain
competitive advantage (Dunning, 2013). SMEs in Pakistan contributes 40% to the
country's GDP. But even after that, there is a lack of awareness regarding the
purchase of data related software that can help in the company's progress. If the
Australian Natural Care company manages to use this sector of information
technology to their benefit they will also gain a competitive advantage as many other
brands in Pakistan are not doing the same (Ahmed, Shahzad, Umar & Khilji, 2010).
MARKETING AND R&D CONSIDERATIONS
This topic is further divided into the following two branches that are associated with each
other yet recognized as separate departments to look into while business planning;
MARKETING
For effective entrance into the market, proper branding and marketing strategies are
required that ensure perfect market penetration ensuring success. To create an effective
marketing strategy, a marketing mix should be advised describing the adaptation of products
and standardizing (Terpstra, Foley & Sarathy, 2012). The marketing mix for Australian
Natural Care’s penetration into the Pakistani market can be given through the following
points;
1. Distribution Channels
Like many other brands operating in Pakistan, Australian Natural Care can
choose from either selling its products only through the company website or through
the website along with retailers and distributors that make the products available in
different pharmacies across Pakistan. The second option is suggested for better reach
and availability as it will be of ease to the consumers and wholesalers.
2. Comparative Pricing Strategies
The pricing of the products needs to be matched and brought to the level of the
competitors to tackle the introductory competition. Differences in the prices can be
made onwards after successful international market establishment.
3. Advertising & Promotion
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Advertising and promotion can be done on various social media platforms,
company websites, TV shows and advertisements, Radio channels and through print
media. Cold pitching for the brand can also be done so that more sellers are reached.
The most effective modes of advertising in Pakistan are TV and Social Media.
4. Media Research
Surveys and other modes of research can be conducted in order to further
confirm what the best and most effective marketing strategy and platform will be for
the company. It can be done through online surveys, polls and other modes of data
collection.
5. Service Quality Issues
Feedback for the products and services need to be taken religiously, in the
beginning, to further develop and adapt to the social and financial requirements of the
Pakistani market.
6. Supply Chain
Proper relations with logistics departments across Pakistan and the vendors
will help sustain the establishment and success of the company in Pakistan for future.
RESEARCH & DEVELOPMENT
There will always be more scope of improvement and addition of knowledge and new
findings in the Pharmaceutical department all over the world. The purpose of this department
would be to create methods of production that will be cost-efficient, better in terms of quality
and environmentally sustainable (Paul et al., 2010). Australian Natural Care should keep on
searching for ways to innovate their products and adapt them according to the Pakistani
environment and government practices to ensure they have an upper hand in terms of market
competition.
RECOMMENDATIONS REGARDING PRODUCTION
Many factors are associated with a lack of proper production facilities in Pakistan
(Khan & Khalique, 2014). The following recommendations can be made to further enhance
this process;
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1. Tackling the energy crisis in Pakistan by Solar Power and Power saving equipment
installation. This will not only save energy and reduce costs but also avoid breaks in
production due to energy insufficiency and make the company more sustainable.
2. Production plants to be located in the remote areas of the country so as to be
environmentally friendly and to produce without harming the urban or rural settings.
3. Provide skill-enhancing training to the labor that will set this workforce apart from
the otherwise uneducated and unskilled labor that the competitors may hire.
4. Pakistan has cheap property options that are available on the outskirts of various
cities. Use clever tactics to install production areas in such localities to further reduce
the production costs.
INTERNATIONAL HRM ISSUES & CONSIDERATIONS
Pakistan is a country that battles with low wages, improper working environment for
the labor workforce and in justifiable HR practices among many. As there are more than 400
Pharmaceutical companies in Pakistan, there will be huge competition for Australian Natural
Care in this country, and Human Resource Management practices also play an important part
in giving the companies competitive advantage (Shabbir, 2014). These issues need to be kept
in mind when doing business in Pakistan as they have the ability to determine the success of
the company. Current labor and other unions are also working towards improving these
factors through a variety of campaigns (Ahmad, 2012). The performance management and
the organizational culture of a company can be linked as follows;
1. Involvement, where everyone from the Executives, Managers and other employees
will be invested in the work and decision making of the company. This will give them
motivation and an association with what they do.
2. Consistency, where there will be a set of core values on which the Leaders and
employees of the company both work. This will provide stability and consistent work
levels to the company.
3. Adaptability, where Australia Natural Care will have to adapt and change its
products and packaging along with methods of manufacturing to cater to the Social,
Political and Economic settings of Pakistan. The same way they will be modifying
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their working terms to suit those of the country, like different office timings for
Ramadan, Eid Holidays etc.
4. Mission, where the company will work on implementing and conveying its long
and short term missions to its Pakistani employees so that they are on the same page
as the Australian workforce.
There are a few indicators for Labor market regulations in Pakistan which include but
are not limited to Hiring, Working hours, Redundancy rules, Redundancy cost and Job
quality. These need to be kept in mind when making the HRM plan for business as they will
play an important role in the performance of the company in Pakistan.
CONCLUSION
The study can be concluded with the facts that were gathered upon research pertaining
to International Business Plan in Pakistan for Australian Natural Care. This study discussed
the basic factors through which an effective business plan can be constructed including the
competitive and marketing strategies along with recommendations for production and HRM
practices of the company in Pakistan. The major learning was regarding globalization, which
plays an important factor in deciding business in any developing country (Shenkar, Luo &
Chi, 2014). Another factor was the critical evaluation of business opportunities in Pakistan
and how they can be best utilized for market penetration. The outcome of this research was
the understanding of various marketing and other strategies that needed to be implemented
along with the proper evaluation of the selected country and type of business that can help the
company gain competitive advantage and prominent standing in Pakistan as a newly
introduced brand. This analysis can be further utilized in creating a business plan for
Pakistani marketplace as it includes all information required and the recommendations that
aid in the better running of Australian Natural Care in Pakistan.
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APPENDICES
Chart 01
Source: - Doing Business 2019 Pakistan (World Bank Group).
16