Beston Global Food Company Export Report: Philippines Market Analysis

This report presents an export proposal for Beston Global Food Company Limited (BFC), focusing on entering the Philippines market. It provides an executive summary, introduction, and overview of BFC, including its domestic business, financial resources, and staff. The report details market selection, target markets, market positioning, competitor analysis, distribution methods, and sales goals. It further analyzes BFC's products, services, necessary changes for export, and production capacity. The pricing strategy, market entry approach, promotional strategy, and an action plan are also discussed. The report highlights BFC's objective to increase production volumes, enhance brand image, and achieve profits through exporting to the Philippines, with a timeline illustrating sales goals from 2020 to 2025. The report also covers the company’s financial resources, marketing budget, cash flow management, and sustainability of export budget, along with staffing considerations. In terms of product, the report outlines the products/services for export, changes required, and production capacity. The report then delves into pricing, market entry, promotional strategies, and an action plan, concluding with a management review and references.

International business

International business 1
Executive summary
The international business is all about conducting business activities overseas. Globalization
has made possible production and distribution of goods and services across national borders.
It is even a shift towards the integrated international economy. It creates greater prospects for
international business. It includes the movement of goods and services from one nation to
another. The export activities make possible international companies offer products and
services in other nations. It leads to the creation and processes of sales, manufacturing,
research and development and distribution amenities in the international markets.
This report comprises the international business report on Beston global food company (BFC)
which is committed to wellness, health, and optimum nutrition through safe and sustainable
food supply. The report defines the objective of BFC to export and the overall objective to
enter into the overseas market. The domestic overview of the company is given with the
financial resources and staff. The financial resources are comprised of marketing budget, cash
flow to fund orders and sustainability to export budget. Further market selection has been
defining encompassed of target markets, market positioning in target markets, competitor
analysis, distribution methods, and sales goals. Further product category of the company has
been described including products/ services for export, changes to the product and service
necessitated for export markets and production capacity. Further pricing strategy has been
discussed along with market entry, promotional strategy, and action plan.

International business 2
Contents
Executive summary...............................................................................................................................1
Introduction...........................................................................................................................................3
About the company................................................................................................................................3
Domestic business overview..............................................................................................................3
Financial resources............................................................................................................................4
Staff...................................................................................................................................................5
Market selection....................................................................................................................................5
Target markets...................................................................................................................................5
Market positioning in target markets.................................................................................................5
Competitor analysis...........................................................................................................................5
Distribution Methods.........................................................................................................................6
Sales goals.........................................................................................................................................6
Product..................................................................................................................................................6
Product/ services for export...............................................................................................................6
Changes to product/service required for export markets....................................................................7
Production capacity...........................................................................................................................7
Pricing strategy......................................................................................................................................8
Market entry..........................................................................................................................................8
Promotional Strategy.............................................................................................................................9
Action plan..........................................................................................................................................10
Management review and follow up......................................................................................................10
References...........................................................................................................................................12

International business 3
Introduction
Globalization has made a shift towards the sovereign and unified global economy by creating
better opportunities for the international business. The international business has promoted to
producing or distributing goods and services across borders. It has reduced trade barriers and
changed buyer preferences. A company can also source products and services easily from
other nations. This report comprises the export entry mode of Beston global food company
(BFC). BFC is a leading Australian food, brew and nutritional company manufacturing
quality products across meat, dairy, seafood, health, and nutritional sectors. BFC is a
completely-owned and functioned business with a diverse portfolio of natural and hygienic
premium Australian produced products. The export entry mode has been suggested and
analyzed. The report also comprises the operating strategy which is anticipated to be
successful for BFC to make an entry in the Philippines market (Medianet, 2019). BFC has
decided to export to increase its production volumes and enhancing brand image along with
profits.
About the company
Domestic business overview
Beston global food company (BFC) intends to offer natural and verifiably safe food and
beverages to the international markets so that customers can make vigorous choices. The
company does this by possessing the raw materials, taking benefit of technology in the
production procedure and directing distribution. The ethics of BFC is stranded in offering the
finest and superior quality products to local and export markets (Beston Global Food
Company, 2020). It is reinforced by the wellness, pledge to health and optimum nutrition
through safe, sustainable and accountable food supply and production inputs. The company
undertakes clinical evidence-based research and nutritional research local and international
standards, laws based on the health privileges and corroboration for products, packaging and
promotional material for obedience with the food standard codes postulated by Food
Standards Australia New Zealand (FSANZ).
BFC has attained popularity in providing a range of food, beverage and supplementary
nutrition solutions having health benefits and exclusive product positioning. The company
has a range of food products like dairy and meat which are vital for the nutrients and healthy
wellbeing. The company believes in deriving the products from natural sources with

International business 4
minimum processing and artificial colors, flavors, and preservatives. BFC has achieved a
‘New Product Award’ for its innovative adult snacking product, Fancy bites. The company is
building strategies and responding to headwinds in Australia with the approach of better
positioning itself. At the heart of the company, it is focusing on the quality of products along
with strengthening business and community relationships (Beston Global Food Company,
2020). It has contributed to the success of BFC in the domestic market.
Financial resources
Marketing budget
The total budget estimated for BFC is 70 million. The marketing budget of BFC will
comprise costs such as advertising, overseas market visits, promotional materials and more.
The expenditure on the advertisement for BFC will almost amount to 2.19 billion in the
Philippines. Based on the data attained by BFC from the survey of supermarkets in the
Philippines, the advertisement spending will surpass to 2.3 billion in the coming years. It is
because advertisement is a modest method to stay competitive in the market. The company
has to make consistent visits to the Philippines to research and conduct research. So, the
company has decided 3 million budgets for overseas market visits.
Cash flow to fund orders
BFC will be required to investigate and manage cash flow effectively to control the inflow
and outflow of cash. The company needs to manage cash flows for the potential large orders
by considering profits as revenue minus expenses. The company will need to plan how much
inventory is required to hold, how many invoices are overdue, how much cash is tied up in
work in progress. BFC is necessitated to outlay costs to supply the order when the exact
condition of the market is known and the company is ready to operate in the market.
Sustainability of export budget
BFC is one of the leading companies in Australia and is in the situation to undertake
additional expenditure to advance export markets in the medium terms. The company will
need to take certain environmental concerns in the mind while conducting operations. Once
the company starts earning in the Philippines can stand in a long period. It will take almost
two years as export sales take a longer time to advance in the international market.

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Staff
BFC will have experienced staff in the organization as efficient staff can only overcome the
problems faced at the initial level. The current staff and management of the company have at
least 5 years of experience. The company is going to have additional staff to overtake export
activities. The company even need to spare resource for the export activities in the form of
finance and humans (Palanca, 2017).
Market selection
Target markets
BFC wants to become a household name in the Philippines. The company will be selling
high-quality products so high-income groups will be targeted. the target audience will be
majorly between 18-35. Other than the high-income people, BFC will target college students
looking for discounts and homemakers with infants and young children. Customer
satisfaction is going to be a significant parameter for the company. By targeting shoppers in
the Philippines, BFC will be able to reach varied community and extent of the audience that
resides three to five miles from the local business in the Philippines. Moreover, BFC will
make use of an effective marketing tool to create brand awareness required to promote
business in the Philippines. The high exposure, repetition, and targeting will assist in
targeting the local community of the Philippines regularly. It will result in creating traffic for
the business (Beston Global Food Company, 2020).
Market positioning in target markets
BFC wants to position itself as one of the very easy substitutes for the offline stores. The
company wants to be a household name in the Philippines. BFC wants to position itself as a
seller offering quality perishable goods. The company will provide reliable products at a
reasonable price. BFC is well established in Australia but the company cannot attain the same
position in the Philippines initially. After a certain time, BFC can attain the same position in
the market of the Philippines. BFC will be liable to pay import duties in the Philippines and
export duties in Australia. BFC even has to take approval from the Bureau of Food and Drugs
(BFAD) to make sure the quality, safety, and efficacy of the health products (Piano and
Castillo-Israel, 2019).
Competitor analysis
BFC will be able to compete with the most competitive supermarkets in the Philippines such
as Walter Mart, CSI, LCC, Gaisano, and Ever Supermarket. BFC can attain a competitive

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advantage in offering quality goods. The company will target high working-class and
households. On the other side, Walter Mart majorly target to the household people. Walter
Mart has attained popularity in bringing expedient and enjoyable grocery shopping to
customers and the community. Walter Mart is having more than 25 years of experience and is
one of the major retailers in the Philippines.
Distribution Methods
BFC will have its distributorships. The company will choose certain kinds of products to be
kept in stock at the distributor warehouses. They negotiate prices that will generally cut
across the board and key products will be purchased directly from the manufacturers. BFC
will typically deliver products to a centralized location and then will distribute it to the
individual stores. Fruits, veggies and alike produces have a shorter shelf life than hard
groceries. BFC relies on the local produce of Australia therefore the company will import
from Australia regularly (Buted Jr, et al. 2018).
There will be a direct channel of distribution as the company will sell products directly to the
customers. BFC will make available a complete range of the products on the stores from
where customers can purchase. The company will also provide an online delivery service.
The customers will be able to order online and BFC will deliver products within the time
promised (Reuters, 2020).
Sales goals
The timeline will illustrate sales goals for BFC from 2020 to 2025. It is estimated that BFC’s
sales in the Philippines will amount to almost 95.16 billion dollars in 2025. It will be a good
estimate. Initially, BFC is going to have fewer sales but it will increase over the years. By the
end of 2025, BFC will be able to lead in the Philippines market. The company will be able to
compete with the most viable supermarkets in the Philippines
Product
Product/ services for export
BFC will export seafood, meat, dairy, water, wine, health, and nutritional products into the c
market. The company will operate through the five segments in the Philippine’s market such
as the dairy section, seafood division, health division, meat division, and distribution
division. The dairy section will use milk to manufacture cheese and other dairy products

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whereas the seafood division will concentrate on sourcing and supplying seafood to the
markets. The health division in the Philippines will target the health-conscious markets, and
the meat division will enable meat products to the expanding markets and the distribution
division will form associations and digital platforms to distribute products in the market of
the Philippines.
Changes to product/service required for export markets
BFC will make certain changes in the products to export to the Philippines. Initially, the
company will offer fewer dairy products in the new market as dairy products have less shelf
life and BFC will also be not known for dairy consumption in the market. There will be a
significant shift in the dairy products. The company will maintain a varied portfolio of natural
and clean finest Australian products. Food safety technology will be a fundamental part of the
products to be offered in the Philippines. It will enable safe, healthy, clean, green, authentic
food and beverage products from Australia to the growing communities of the Philippines.
BFC’s OZIRIS™ and associated technologies concede the uniqueness and superiority of the
technologies which will be used by the company in the Philippines (Concepcion, Digal, and
Uy, 2016). The prestige buyers in the Philippines will be offered certification concerning the
product. The products will be packed and sealed in the unique Beston Envirobags for the fast
delivery. The customers will also be able to attain loyalty points after completing the
procedure of scan and can view these points later on the marketplace account (Romo, Digal
and Reardon, 2009). The customers in the Philippines will be able to enjoy products with
peace of mind that these healthy, fresh and 100% authentic. To consider the pandemic
COVID 19, BFC will also agree with the local suppliers for some time to ensure the
availability of products to the customers. Once the conditions got to improve, BFC will again
start importing products in the marketplace of the Philippines.
Production capacity
BFC will provide more seasonal products when it comes to fruits. There will be the existence
of spare capacity when it will be found that the current level of production is below the
maximum output possibility in the short run. BFC will go for the spare production capacity to
meet the unanticipated demand. For instance, the occurrence of COVID 19 has enabled
people to stock food items to avoid going out. As there is a lockdown in the Philippines to
prevent the disease. To meet such instances, spare production capacity is going to be
effective. This way customers can also get the products in the desired quantity (Franco, et al
2020). When the company faces the condition of low spare capacity occurs, the company

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should stock the products as soon as possible. Whenever any pandemic or incidence takes
place, people usually run to stock items. Therefore, such issues should be considered by the
company immediately.
Pricing strategy
It is a vital decision to decide the pricing of the products. Moreover, the foreign exchange rate
is a significant determinant of the cost of production of the company. In the case of BFC,
export has a great role as it has decided to use exports as market entry. BFC will need to deal
with exchange rates while dealing with the export activities. The company will earn foreign
currency by moving goods to the Philippines (Schafer, 2016). BFC will come in contact with
the overseas buyers. The quoted price of the products will be in Philippine peso for the
convenience of the customers. BFC will contract to sell price in the foreign currency
according to the obligation of the buyer. The person handling BFC in the Philippines will be
liable to make advance payment for the export. The company will attain payment after the
sale of the goods and duration from contracting time. At the maturity of the payment, the
exchange rate of the foreign currency can either fall down or rise. Therefore, BFC has
decided to go for penetration pricing on an initial basis. The company will maintain a lower
profit margin and prices relatively low. The penetration pricing will assist BFC to generate
greater sales and establish products in the Philippines’s market rapidly (Concepcion, et al.
2016). Penetration pricing is all about fixing a comparatively low price on the initial basis to
appeal to new customers. This strategy of BFC will work on the anticipation that customers
will switch to the products of BFC due to lower price and good quality. The company will
use penetration pricing to attain the objective of increased market share. This way the
company will be able to form cost control and cost reduction pressures from initial which will
ultimately lead to greater efficiency. This way the company will be able to generate high
stock turnover by distribution channels (Vorley, Fearne and Ray, 2016).
Market entry
BFC will make use of direct exports in the market of the Philippines. The direct exporting
comprises exporting directly to the customers interested in purchasing products. BFC will be
itself liable to make available products to the customers in the Philippines. BFC will be liable
to tackle the market research, foreign distribution, logistics of shipment and invoicing. There
will be no involvement of the third party as the company will be dealing directly with the

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customers. The company will sell products to a wide range of customers, out of which some
will act as intermediaries in the target market (Vital, Caballes and Rivera, 2017).
The direct exporting will sort BFC and avoid the costs of a middleman. It will enable a
company with greater control over the sales and cooperate directly with the customers. This
way the company will have latent profits with more knowledge of the target market. BFC will
also be more secure while dealing directly with the customers. The customers will also be
able to get fast service and customers will provide faster and direct feedback on the products
in the marketplace. Moreover, BFC will attain better protection of the patents, trademarks,
and copyrights. BFC will be able to advance a better comprehension of the marketplace of the
Philippines. The advancement in the overseas market will result in greater flexibility to
enhance marketing efforts (Godilano, et al. 2018).
BFC will sell products as retail. Direct exporting is an efficient strategy to increase market
share and increase profits. BFC is having sufficient resources in terms of knowledge, skills,
and finances. The company will be doing exports; therefore, it will require to assemble for
shipping and insurance, maintain certifications and licenses, prepare paperwork and
procedure of the letter of credit providing for payment. Such a process requires time along
with skills to perform appropriately. The company needs to spend sufficient time and conduct
research on the market of the Philippines (Estebal, 2018). Direct exporting will be quite
successful in the market of the Philippines as there is a higher rate of growth in the
foodservice. The food industry of the Philippines provides growth opportunities to the local
as well as global businesses to function and upsurge their revenue. The changing policies and
economic situation will have an impact on BFC. Moreover, the social environment of the
Philippines is also quite stable. The nation also has a polite and positive attitude. The
customers have higher income here and are ready to spend on new and different food
products. The advanced technology of the Philippines will enable BFC to inspire different
businesses to use effectively (Lim, et al. 2017). The infrastructure of the Philippines is also
upgraded which can enable BFC to smoothly produce and distribute products in the market.
Promotional Strategy
BFC will require at least six months to plan its promotional strategy to fix operations in the
Philippines. It will include meeting with different advertising agencies to know which option
is most suitable in the Philippines. It is also required to visit the local market at least two
times. BFC needs to attain a good comprehension of the uniqueness of the products and

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services to form brand promotion. The company has attained a value proposition in offering a
wide range of products along with maintaining quality. The promotional strategy is a good
way to enhance the bottom line in the short term (Grocke, Light and Collado, 2020).
BFC can work with brand ambassadors to enhance brand consciousness in the market of the
Philippines. The ambassadors are the most effective form to promote the brand. The
association of the brand with a person of interest is deliberated to be relevant to the audience.
The brand ambassadors have an effective role in making a brand look more personal and
human. The ambassadors are paid to make the brand look more personal and human. It makes
the experience of the natural human response better in the contradiction of the simple
branding approach. It has been observed that human beings are being driven by emotions
(Vizon, Battad and Castillo, 2019). A human-brand experience has a generally greater impact
on the audience. BFC needs to select a competent person who can become the face of the
company in the Philippines. A right ambassador can be chosen by the company by
undertaking two things, audience, and relevance. The audience always has a clear viewpoint
over it. The relevance decides the interests and preferences (Johns, et al. 2017). The
influencer marketing promotion strategy can assist BFC to speed up the effectiveness of
brand cognizance. Therefore, the brand should come up with more reliability and power of
retention. Choosing a brand ambassador smartly can lead to true success.
Action plan
Task By who By when
Research and development Market specialists 3 months
Hiring staff Managers 3 months
Training of staff Experts 1 month
Advertisement and promotions Marketing agencies 2 months
Conducting and managing
operations
Managers 3 months
Management review and follow up
Initially the research and development will be conducted by the company by the market
specialists. It will take 3 months to attain data through surveys, interviews and feedbacks.
After that the company is sure of conducting operations in the market, the next step is to hire
staff. This process will be conducted by managers and will take estimate time period of 3

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months. Once the staff get finalised, the nest step is to train them through the experts of the
home country and it will take 1 month. Thereafter the company will go for advertisement and
promotions through the local marketing agencies of Philippines. Such process will take on an
average 2 months. Finally conducting mentioned tasks, company will go for conducting and
managing operations which will take 3 months.

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