International Marketing Report: Ausy Fruit's Strategy for India

This report assesses the feasibility of Ausy Fruit, an Australian kiwi fruit producer, entering the Indian market. It begins with an executive summary outlining the report's objectives, which include analyzing the external environment of India, determining the optimal entry mode, identifying the target market segment, and formulating a positioning strategy. The report selects India as the target market, citing its strong GDP growth and large population as key advantages. Direct exporting is chosen as the entry mode, minimizing risk and investment. The external environment analysis covers the favorable political and economic conditions in India, as well as social trends. The target customer profile focuses on affluent consumers aged 12-60 in metro and Tier II cities. Finally, Ausy Fruit's positioning strategy emphasizes a premium product offering, creating a unique market segment. The report concludes with a summary of the findings, highlighting the potential for Ausy Fruit to succeed in the Indian market.

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

1INTERNATIONAL MARKETING
Executive summary
The aim of this report is to discuss about the potentiality of the Indian market for Ausy fruit, an
Australian fruit grower and distributor. In this report, external analysis of the Indian market is
being discussed and evaluated along with determining the entry mode choice for them. In
addition, this report also discussed about the target market segment for Ausy fruit along with
discussing their positioning strategy.

2INTERNATIONAL MARKETING
Table of Contents
Introduction......................................................................................................................................3
Chosen country................................................................................................................................3
Selected entry mode.....................................................................................................................4
Determination of the external environment.....................................................................................5
Political environment...................................................................................................................5
Economical environment.............................................................................................................6
Social environment......................................................................................................................7
Target customer profile....................................................................................................................8
Demographic segmentation.........................................................................................................9
Geographic segmentation............................................................................................................9
Psychographic segmentation.......................................................................................................9
Positioning strategy.......................................................................................................................10
Conclusion.....................................................................................................................................10
Reference.......................................................................................................................................11

3INTERNATIONAL MARKETING
Introduction
In the current business scenario, entering in the foreign market is one of the most
common business decisions taken by the business organizations. This is due to the reason that in
the current time of globalization, entering in the foreign countries is not difficult and complex. In
addition, it also helps the business organizations in enhancing their business revenue and
presence in the global market. Ausy fruit is one of the leading fruit producers and marketers in
the Australian region. They are specialized in growing Kiwi fruit. In the recent time, the
authentic kiwi fruit of the regions of Australia and New Zealand gained immense popularity in
the global market due to their nutritional value, taste and alternate usages (Ferguson 2014). Kiwi
fruit is having number of benefits including medical benefits also. The first commercial
cultivation of kiwi fruit started in New Zealand. Currently, there is huge competition in the
market of kiwi fruit and it is encouraging Ausy fruit to consider the concept of international
business in order to increase the market share and revenue.
This report will discuss about the potential country that will be beneficial for Ausy fruit
in enhancing their market and business operation. In addition, the target customer profile along
with the environmental analysis of the chosen country will also be discussed in this report.
Chosen country
India is selected as the potential country for Ausy fruit in enhancing their business
operation. This is due to the reason that in the international business, one of the major factors
that should be considered is the level and stability of the national economy of the host market
(Kaushal and Pathak 2015). India is the fastest growing country in the world in terms of GDP.
Thus, the economical viability will be more for Ausy fruit in entering in the Indian market.

4INTERNATIONAL MARKETING
Figure: 1
Economy growth rate of India
Source: (Tradingeconomics.com 2018)
According to the above figure, it is seen that the current GDP growth rate of India is
standing at 7.2 percent that is highest in the world. This will ensure that Ausy fruit will have
favorable business economy and opportunities in entering in India. Moreover, India is also
chosen due to the reason that India is having the second highest population in the world. Thus,
the market opportunities for Ausy fruit will also be more compared to some other countries in
entering in Indian market.
Selected entry mode
Direct exporting entry mode is selected for Ausy fruit in entering in the Indian market.
Direct exporting is selected due to the reason that kiwi fruit can be grown in the Indian condition
or it will have that authentic taste of the kiwi fruit if it is grown in India. Therefore, Ausy fruit is

5INTERNATIONAL MARKETING
having no other chance of producing in India. On the other hand, direct export entry mode will
also help them to minimize the risk associated with the international business (Laufs and
Schwens 2014). This is due to the reason that Ausy fruit will not have to incur huge cost of
investment in case of the direct exporting entry mode.
Determination of the external environment
Political environment
India is having favorable political scenario in the country with having governmental
system. In addition, India is also not having any disturbances in its political history. Thus,
investing in India will have less political risk for Ausy fruit. However, India and Australia are
not having free trade agreement as of now but according to the recent reports, both the countries
are in discussion for the free trade agreement (Anderson and Yotov 2016). Thus, this will also
have favorable impact on the business operation of Ausy fruit in Indian market. It is also to be
noted that restrictions related to the exporting of food items from Australia is less in India and
Ausy fruit can export their products in India with having less issues and challenges.

6INTERNATIONAL MARKETING
Economical environment
Figure: 2
FDI inflow in India in food processing industry
Source: (Bandyopadhyay 2018)
According to the above figure, it can be concluded that the flow of the foreign direct
investment is rapidly increasing and mainly in the food industry. It is reported that the
investment in the food industry is increasing due to the reason that the demand for the food is
increasing in India. Thus, this figure is providing a favorable scenario of investing and doing
business India. This coupled with the positive economy growth of the country is having huge
business opportunities for Ausy fruit in operating in India.

7INTERNATIONAL MARKETING
Social environment
Figure: 3
Unemployment rate of India
Source: (Tradingeconomics.com 2018)
The above figure shows that rate of unemployment in India is reducing and it is
contributing in the economical growth of the country. This will also have positive implication on
the business performance of Ausy fruit due to the reason that the less will be the rate of
unemployment, the more will be the purchasing power of the average customers. Thus, it will
ensure that the demand for the products for Asuy fruit will also be favorable.

8INTERNATIONAL MARKETING
Figure: 4
Growth trend of food and beverage sector in India
Source: (Dartconsulting.co.in 2018)
According to the above figure, the food and beverage market of India is rapidly
increasing along with the increase in the investment in this sector. It is reported that the growth
of the food and beverage sector of India is mainly due to the huge market size and favorable
economy of the country. Thus, it can be concluded that Ausy fruit will have favorable market
opportunities in distributing in the Indian market.
Target customer profile
The target market segments for Ausy fruit will be determined by evaluating the different
aspects of the market segmentation. In this report, the target market segment for Ausy fruit will
be identified in terms of demographic, geographic and psychographics.

9INTERNATIONAL MARKETING
Demographic segmentation
In terms of the demographic segmentation, the age group between 12 and 60 will be
mainly targeted with having the major concentration on the teenage age groups. The target age
group will be vast due to the reason that fruit is having acceptability across all age groups. They
are preferred by the younger age groups for the taste and by the older age groups for nutrition
(Mohd Suki 2013). However, the major concentration will be on the teenage age group due to the
reason that these groups will more open towards the new fruit items as kiwifruit is not so popular
and mainstream in the Indian market. In terms of the gender, both male and female genders will
be targeted. In terms of the socio-economic condition, the target market will be higher section of
the society comprising of affluent background. This is due to the reason that Ausy fruit will have
to price their products in premium due to the involvement of tariffs in export and import process.
Geographic segmentation
In terms of the geographic segmentation, the metro cities of India will be first targeted.
This is due to the reason that metro cities will have more affluent societies, which will be target
market. Moreover, population in the metro cities will be more open and educated towards global
products that will help Ausy fruit to distribute their products (Diamantopoulos et al. 2014). This
will be followed by the Tier II cities.
Psychographic segmentation
People with having more updated lifestyle and personality will be targeted. This is due to
the reason that this target segment will be aware about the products of Ausy fruit. They will be
more targeted towards the social value to be offered by Ausy fruit by selling it in premium.

10INTERNATIONAL MARKETING
It can be concluded that the target customers will buy the product of Ausy fruit due to the
fact that kiwi fruit is distinctive in the Indian market and will offer unique value in forms of taste
and experience (Toften and Hammervoll 2013). Moreover, the competition in the kiwi fruit
industry is less and thus customers are having less option for switching.
Positioning strategy
Ausy fruit will position their product n more premium category. The product will be
positioned as a premium and tastier alternatives to the conventional fruit items available in the
Indian market. Moreover, the premium positioning will also help in creating a separate market
segment without having much competition (Akpoyomare, Adeosun and Ganiyu 2013). Initiation
of the premium pricing will also enable Ausy fruit to provide value more than just the physical
value. It will create a social value also for the customers.
Conclusion
Thus, it can be concluded that Ausy fruit is having huge market and business potentiality
in targeting the Indian market. This report discussed about number of factors and elements in
determining the potentiality of the Indian market. External environmental analysis is also being
done in this report in order to identify the external business factors to be faced by Ausy fruit in
India. In addition, the target customer segments are also being identified in this report along with
discussing different forms of customer segmentation. The positioning strategy to be applicable
for Ausy fruit is also discussed in this report and it is concluded that Ausy fruit will be able to
maximize their revenue and operation in entering the Indian market.

11INTERNATIONAL MARKETING
Reference
Akpoyomare, O.B., Adeosun, L.P.K. and Ganiyu, R.A., 2013. Approaches for generating and
evaluating product positioning strategy. International Journal of Business Administration, 4(1),
p.46.
Anderson, J.E. and Yotov, Y.V., 2016. Terms of trade and global efficiency effects of free trade
agreements, 1990–2002. Journal of International Economics, 99, pp.279-298.
Bandyopadhyay, S. (2018). Analysis: Food Processing Industry (FPI) in India - MarketExpress.
[online] MarketExpress. Available at: http://www.marketexpress.in/2014/05/analysis-fpi-in-
india.html [Accessed 20 May 2018].
Dartconsulting.co.in (2018). Growth of Food and Beverages Industry in India – An Overview
about the Opportunities for New Concepts and Innovative Services - DART Consulting. [online]
Dartconsulting.co.in. Available at: https://www.dartconsulting.co.in/market-news/growth-of-
food-and-beverages-industry-in-india-an-overview-about-the-opportunities-for-new-concepts-
and-innovative-services/ [Accessed 20 May 2018].
Diamantopoulos, A., Ring, A., Schlegelmilch, B.B. and Doberer, E., 2014. Drivers of export
segmentation effectiveness and their impact on export performance. Journal of International
Marketing, 22(1), pp.39-61.
Ferguson, A.R., 2014, September. Kiwifruit in the world-2014. In VIII International Symposium
on Kiwifruit 1096(pp. 33-46).