QUT AMB210 Assignment 2: Export Planning for Brambles Limited

This report provides a comprehensive analysis of Brambles Limited's export readiness and strategic planning for entering the Chilean market. The report begins with an executive summary outlining the key objectives and findings. It then delves into the introduction, discussing Brambles Limited's business model, existing export activities, and the rationale for targeting Chile, specifically focusing on the Kegster brand. The report addresses the company's export readiness, considering market share and competitive advantages. It also provides an overview of the Chilean market, including its trade agreements with Australia and key import/export dynamics. The core of the report focuses on export planning, including the logistical issues and export challenges that Brambles Limited may face in Chile, such as customer support, compliance, and environmental challenges. The report proposes relevant strategies and export planning guidelines, emphasizing market research, agent selection, and legal compliance. The report also examines the cultural dimensions relevant to doing business in Chile, including core values, leadership styles, presentation approaches, and the perception of hierarchy and group orientation, drawing insights from the GlobeSmart tool. The report concludes with a summary of the key findings and recommendations, and includes references and an appendix.

Running Head: EXPORT PLANNING OF BRAMBLES LIMITED
EXPORT PLANNING OF BRAMBLES LIMITED
Name of the Student
Name of the University
Author Note

1EXPORT PLANNING OF BRAMBLES LIMITED
Executive Summary
The purpose of this paper is to focus on the export readiness of an Australian company named
Bramble Limited along with the export strategies that the company should keep in mind
before entering into a new exporting venture. The logistical issues and the potential
challenges that is normally faced by a company before conducting an export venture is
discussed in this paper. The discussion in this report also deals with the cultural dimension of
the chosen market and the causes of difficulties in the transactions of global business.

2EXPORT PLANNING OF BRAMBLES LIMITED
Table of Contents
Introduction................................................................................................................................3
Response to question a...............................................................................................................3
Response to question b...............................................................................................................7
Response to question c:..............................................................................................................8
Logistic issues and Export Challenges faced by Bramble:....................................................8
Proposed Relevant Strategies and export planning guidelines:.............................................9
Response to question d:............................................................................................................10
2. Core Values:.....................................................................................................................10
3. Effective leadership style:................................................................................................11
4. Presentation for Chilean Audience:.................................................................................11
5. Hierarchy perceived in Chile:..........................................................................................12
6. Status and Group orientation in Chile:............................................................................12
Conclusion................................................................................................................................13
Reference:................................................................................................................................14
Appendix-.................................................................................................................................17

3EXPORT PLANNING OF BRAMBLES LIMITED
Introduction
The discussion in this report deals with the export readiness of a company named
Bramble Ltd. based in Australia headquartered at Sydney, New South Wales. This company
deals with pooling of unit load equipment along with other ancillary services. It mainly
focuses on managing the outsourcing of crates, pallets and containers. It is considered as the
pioneer of sharing economy serving primarily the industries of consumer goods, retail and
manufacturing. Bramble is listed in the Australian Stock Exchange and is already engaged in
exporting business with 60 different countries. The paper focuses on commencing export
business with a new product line to a new foreign country and the chosen country in this
report is Chile. Bramble operates with three brands namely, CHEAP, BXB Technologies and
Kegster. CHEAP is already available in the Chilean market and now they are planning to
introduce kegster in the markets of Chile which deals with cleaning and delivering of empty
kegs to the brewery industry. The market strategies before commencing the export venture
and the critical analysis of the Chilean market is explained here along with the logistical
issues and potential challenges that the company can face after entering into a new market
(Brambles Corporate Site 2019).
Response to question a
The chosen company, Bramble Ltd. is engaged in pooling of unit load equipment and
other services associated with them. Under them they have three brands namely, CHEP, BXB
technologies and Kegster. The CHEP brand deals with the collection of used and damaged
pallets for repair and reuse purposes. On the other hand BXB technologies deals with the
digital tacking and monitoring of goods making the customers well aware about the location
and state of the goods. The third brand Kegster is engaged in delivering empty kegs and
assisting the beverage industry like brewery. Bramble Ltd.is already engaged in the activities

4EXPORT PLANNING OF BRAMBLES LIMITED
of export operating in 60 different countries. Initially they started their exporting business
with the CHEP brand and later they introduced the other two brands worldwide. The CHEP
brand already has market exposure in Chile unlike BXB and Kegster. Brambles is now ready
to introduce Kegster in the markets of Chile. As they are already aware about the Chile
market it will be easy for them to launch the product and approach the targeted customers
(Brambles Corporate Site 2019).
It can be assumed that the company is willing to explore the markets of Chile for
exporting Kegster. As per the available information from the company website (Brambles
Corporate Site 2019), Kegster innovatively manages the use of kegs. Kegs are commonly
used by brewery industry for storing, serving and transporting beers. Kegster helps in
reducing wastages and recycling of used products. It is necessary to conduct market research
before introducing the product in a new market (Austrade.gov.au. 2019). The research will
include the following aspects like-
1. Readiness- The company should have the basic knowledge about exporting and
prepare itself for the initial steps of exporting.
2. Strategies of exporting- Implementing a sound strategy is an essential component of
exporting business. A proper strategy will help in dealing with financial advisers and
bankers. Simultaneously, it should recognise its competitive strengths and weaknesses
and weather there is alignment between the domestic and international activities.
3. Market Research- One of the important aspect for initiating export is the market
research. This will help the exporter to know whether there is market demand for the
product or not. This can be done by communicating with the potential customers
through seminars and checking online reports.

5EXPORT PLANNING OF BRAMBLES LIMITED
4. Marketing the export plan- The company should brief to the targeted market about its
export plan with the use of their website and other marketing tools like social media,
brochures, business card e-commerce.
5. Export Pricing- There is a difference between export pricing and domestic pricing.
The prices should be quoted in a way that the total costs are covered. The right pricing
and the quotation made for the goods and services is important for successful running
of the export business.
6. Managing risks- Exporting brings on lot of opportunities but at the same time it
invites greater risks. The exporters should identify the areas of risks and try to manage
or minimise these risks with the help of advisers.
7. Transportation- The transportation should be effective and should incorporate INCO
terms. Normally, airways and waterways are used for transportation of the goods to be
exported depending on the suitability.
8. Agents- Most of the Australian firms depend on agents or distributors for exporting in
international markets. An exporter should have clear idea about their roles before
choosing the mode of agent.
9. Legal compliance- The United Nations Security Council and bilateral sanctions which
includes import and export restrictions, training and financing, travels sanctions and
others are maintained by Australia and the exporters should comply with the same.
Based on the company history it can be assumed that Bramble Limited is export ready as
they already have an exposure in export business as well as the Chile market and aware of
the market conditions along with the policies and strategies of conducting an export
business. Besides the above mentioned points, for evaluating the export readiness of
Brambles Limited the certain other points are to be considered like-

6EXPORT PLANNING OF BRAMBLES LIMITED
 Market Share- According to the Australian Securities Exchange Limited, the sales
revenue of Brambles Limited has increased by 7% in the year 2018 compared to
the year 2017 which reflects the increase in the ongoing volume of sales of all
segments. There is also 1% increase in the underlying profit and the operating
profit in 2018 this is due to pressure of inflationary cost. The profit after tax has
declined at a rate of 25% due to cycling of non-cash tax benefit as a result of the
US reform of tax of US$ 103.2 million in the year 2018. As per the Chairman of
Brambles Limited, the company has performed successfully despite of challenging
conditions of macro-economic and continuous cost pressures (Brambles.com,
2019).
Source- Marketscreener.com, 2019

7EXPORT PLANNING OF BRAMBLES LIMITED
 Competitive Advantage- The advantage that a business has over its competitors
is known as competitive advantage. It is either created by offering better services
to the clients and advertising products with lower prices (Wang, 2014). Brambles
Limited has gained a strong competitive advantage through the network effect of
CHEP pallet operation, one of the brand of Brambles. The main factor responsible
for the success of the business is its competitive advantage (Brambles.com, 2019).
Since CHEP also operates in Chile it will be profitable for Bramble to start its
export business in Chile as CHEP creates a favourable competitive advantage for
Bramble Limited.
Response to question b
In the recent decades Chile has been considered as one of the fastest growing
economies in Latin America. There is trade agreement between Chile and Australia signed on
30th July, 2008 with effect from the first quarter of 2009. Australia has been ranked as the 41st
trading partner of Australia and Australia is considered as the fourth largest provider of direct
foreign investments. Australia mainly exports coal and equipment of civil engineering
(Bianchi & Mathews, 2016). The seaports are considered as the important port to enter Chile
for merchandise which implies export to Chile has to be done with the help of waterways
(Maldifassi & Chacon 2014).
In the above discussion it has been discussed that Bramble Limited, engaged in
pooling of unit equipment is ready to initiate its export venture with Chile under the brand
name Kegster, which collects and delivers empty kegs to brewery industry. As per (Peña, et
al. 2017), consumption of alcohol is not prohibited in Chile rather this country is strongly
influenced by German for beer consumption and it has a tradition of brewing corn beer which
is named as “chicha” (Berning & McCullough 2017). The exporting proposal on behalf of

8EXPORT PLANNING OF BRAMBLES LIMITED
Bramble Ltd, will be a profitable venture as this company is well knowledgeable about the
export business and the existence of other brand in the markets of Chile has made them aware
about the Chilean market. The Chilean market has an active brewery industry (Toro-
Gonzalez 2017) which implies the uses and demands of kegs.
Response to question c:
A successful export planning and proposed relevant strategies provides a proper
framework to enter into the market. Since the chosen company, Bramble is dealing with unit
load equipment such as pallets, crates and containers under different brand names like CHEP,
BXB and Kegstar it has to investigate the possible issues on logistic and the barriers to enter
into the new market along with reasonable measures. Therefore, the following paragraph
discusses the logistics issues and export challenges of Bramble.
Logistic issues and Export Challenges faced by Bramble:
The term logistic refers to the process through which a company collects resources,
produces the required item as per market demand and distributes them safely. As per the
business strategy, Bramble is interested to export technologically improved barrel in new
export market Chile under the brand name called Kegstar. As per the annual report, business
strategy and the market condition in Chile Bramble Limited may face certain logistics issues
since unit load equipment market in Chile are considered as developing market. It is assumed
that while promoting Kegstar brand the most significant challenges will be faced by Bramble
are customer support, compliance with the rule and regulations and environmental challenge
(export.gov, 2018). Since, the logistic market in Chile several competitors named Satco, Inc
and ACL Airshop. However, there are several export challenges while promoting the new
brand in the foreign market the most important export challenge will be faced by Bramble
Limited will be maintaining the quality of its equipment in the competitive market. Since, it

9EXPORT PLANNING OF BRAMBLES LIMITED
is difficult to export goods in established foreign market, Bramble needs to aware of the tariff
barriers of a country to make business successfully. Since export is the way of prospect,
growth and development of a country’s economy on the other hand import may distort the
growth of market of the country and create trade deficit in the economy. Thus, it can be
assumed that Bramble face the import quota while introducing kegs in the Chile market.
Proposed Relevant Strategies and export planning guidelines:
Since the company is already engaged in export and import activity, therefore it has to
take all the decisions strategically. Bramble Limited needs to prepare an export planning
guideline, which may help the company to know the rivals and their positions in the market,
it will provide information about the target market and helps to outline the method of
distribution. However, the export planning guideline is backed by relevant export strategies.
Proper strategy will insist the company to research the market and collect information
relating to the country with the help of agents (international.gc.ca, 2019). Therefore, the
company needs to notify the following topics for further expansion, growth and exporting the
new product in the Chile market:
Target demographic: The Bramble Limited is engaged in the business of unit load
equipment therefore the targeted audience are as follows:
Target Specifics Reason of Targeting
Transport, Service sectors
and Brewery business.
Aircraft that carries
passenger
Suppliers of unit load device
Manufacturers of unit load
equipment
Brewery
The company is producing
pallets, crates, containers
and kegs.

10EXPORT PLANNING OF BRAMBLES LIMITED
Providers of solutions and
services
Operators of unit load
equipment
Freight and transport
company
Competition:
Since the company is planning to introduce the brand Kegstar, Bramble Limited needs
to aware of the competitors and their market positions, strategy of business and distribution
process. Since the future prospect of unit load equipment business is high thus there are
various competitors competing in the market of Chile, these competitors are Zodiac, VRR
aviation, Cargo Composites, TransDigm, DokaSch, PalNet GmbH, CSAFE and
Environtainer.
Chile Culture:
The Chilean culture is influenced by Spanish culture and essence of European culture.
The people of Chile appreciate art, education, music and entrainment. The cultural details of
Chile also states that 50% of the total population of the country consume alcohol
(www.ncbi.nlm.nih.gov, 2014). Since the company Bramble Limited is planning to
introducing kegs that will support the businesses of brewery thus it will get the success in
future. Therefore, the company need to collect the market details of brewery in Chile.

11EXPORT PLANNING OF BRAMBLES LIMITED
Response to question d:
2. Core Values:
The core value refers to the fundamental outlook of a country that highlights the
liberty, pride, equality, empowerment of weaker sections and government regulations.
Similarly, the core value of Chile mainly highlights the environmental, social and cultural
diversity. Since, Chile is regarded as one of the longest country in the world the diversified
landscape, favorable climate is appropriate to start new business (Bianchi & Mathews, 2016).
The Chilean Spanish language, the prevailing religion and relative isolation of this country
have played an important role in harmonization of Chilean culture. The Chileans are sociable
and hospitable and possess the sense of solidarity when needed. As per the core value concept
of Chilean culture the government has taken several policies to reduce the discrimination and
enhancing the lifestyle of poor individuals.
3. Effective leadership style:
The most effective leadership style prevailing in Chile is Transactional Leadership.
The transactional leadership is one of the most popular styles of leadership that focuses on
strict compliance of rules and regulations along with reward and penalties. This type of
leadership provides a proper guideline in critical situation and in urgent situation also.
However, there are few drawbacks prevailing in this type of leadership like less job
satisfaction among the staffs and people within the team are less motivated
(FRANCESCHET, PISCOPO & THOMAS 2017). Transactional leadership has several
benefits that shapes the overall business activities and explains the duties and roles of the
individual clearly to avoid confusions.