Charles Darwin University: BUS502 International Marketing Report

This report, prepared for a Charles Darwin University BUS502 assignment, undertakes an international market analysis focused on the Chinese market for Australian Super Food Co. The report begins with an introduction to international marketing and its importance, followed by a PESTLE analysis to assess the political, economic, social, technological, legal, and environmental factors influencing market entry. A competitor analysis examines the competitive landscape, focusing on Navitas Naturals and Lizzy’s All Natural. A SWOT analysis evaluates the company's strengths, weaknesses, opportunities, and threats. The report concludes with recommendations based on the analysis, suggesting strategies for market entry and success, and a reference list.

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

1INTERNATIONAL MARKETING
Table of contents
Introduction......................................................................................................................................2
Environmental analysis....................................................................................................................2
Competitor analysis.........................................................................................................................5
SWOT analysis................................................................................................................................8
Recommendations............................................................................................................................9
Conclusion.....................................................................................................................................10
Reference list and bibliography.....................................................................................................11

2INTERNATIONAL MARKETING
Introduction
International marketing is being considered as one of the important business expansion
marketing process that helps the organizations to satisfy different needs and demands of the
customers in international market (Vellas 2016). In others words, it can be said that international
marketing undertakes the marketing activities in more than one countries. In the emerging
business environment in china, marketing has become as essential business element for ensuring
the standard business performance in the international market. The purpose of the study is to
shed light on the importance of environmental analysis for ensuring standard application of
marketing principles. In the competitor analysis, the competitive environment for Australian
Super Food Co has been critically analyzed. Using the SWOT analysis market readiness has
been described. At the end of the study, recommendation based on the identified issue have been
provided.
Environmental analysis
PESTLE analysis
Situation Analysis
Political China is being considered as one of the major players in the global market as
well as it has permanent membership in the Security council of united nations
(Morschett, Schramm-Klein and Zentes 2015). Analyzing the political power
in this country, it has been identified that unsettled political situation in China
due to the lack of political freedom, it has become common problem. From
the last few years the government has focused on introducing ecommerce in
the market. By continuing this, it can also be said that cheap labor

3INTERNATIONAL MARKETING
improvement infrastructure, the FDI record in the year 2016 reached US$139
billion. Hence, it can be said that the political environment in this country is
in moderate situation for Australian Super Food Co (Song, Sun and Jin
2017).
Economic In the Pestle analysis, Economic factor is being considered as one of the
important elements. With the second largest economy, china has developed
its strong economic environment with increasing GDP rate (6.6% in 2019). In
the late of 1970, rapid economic growth in this country has ensured various
opportunities in the market (Li, Meng and Li 2016). However, inequality as
well as rapid urbanization the average labor wage has got increased double
within 2005 to 2016. In this situation, expanding a new business in this
environment can be challenging for a foreign company. On the other hand, it
is also true that from last few years, standard corporate income taxation
policy has reduced the cost of taxation, in this situation, it can be easier for
Australian Super Food Co to establish its business in the market.
Social With the approximate population of 1.4 billion, China has become the largest
market in the world (Coulon et al. 2016). Increasing costumer consumption
rate as well as economic opportunities, China has brought great business
opportunities for the global companies. By continuing this, it has also been
identified that stunning progress in the poverty reduction as well as
increasing literacy rate has lifted the company towards socio cultural
environment. However, it cannot be totally denied that due to increasing
numbers of ageing population in china the social challenges has been

4INTERNATIONAL MARKETING
increased. Due to changing consumption behavior of the customers as well as
their concern towards the healthy living standard, demands of organic foods
in the market is very high. In this situation, it can be easier for Australian
Super Food Co to develop its business in the Chinese market.
Technology China is being considered as the tech giant in the global business
environment. Due to its creativity as well as innovation initiatives, china has
established its strong image in the market. By continuing this, it can also be
said that in the emerging business environment, the labor intensive economy
is being highlight influenced by the innovation (Gu et al. 2016). With the
technological opportunities in the market, new production process as well as
standard distribution mechanism has been introduced by the companies. In
the current business environment, online business practices have also become
highly popular. Therefore, the technological opportunities in the Chinese
market has brought various opportunities in domestic as well as international
market. In this situation entering in the Chinese market, Australian Super
Food Co can use standard marketing strategy so that the large numbers of
customer attention can be driven. As the Chinese government is conscious
about the environmental pollution, in that case, introducing the technological
innovation effective recycling process can be beneficial for the company to
gain opportunity in the Chinese market.
Legal Legal environment in a country has high contribution in terms of maintaining
the standard legislation framework in business practices. Analyzing the legal
environment in Chinese trade industry, it has been identified that labor

5INTERNATIONAL MARKETING
standard, The PRC Labour Law 1995, different administrative regulations
and PRC Labour Contract Law 2007 are being strictly followed by the
country (Young 2015). By continuing this, it can be said that the standard
Food Production and Food safety legislation frameworks have been
introduced. In this situation, introducing its products and services in the
Chinese market, Australian Super Food Co needs to focus on following the
legislative standards so that it can sustain in the market. By continuing this, it
can also be said employment standard related regulations are also needed to
be followed for sustaining in the Chinese business environment.
Environmenta
l
Environment factor in the PESTLE analysis indicates the waste management
as well as others policies regarding the recycling process. Analyzing the
environmental factors in the Chinese market, it has been identified that due to
increasing population in this country, the government of China is highly
concern about the waste management as well as others environmental policies
(Zhang et al. 2017). These policies are strictly being maintained in different
trade industries. In that case, entering in the Chinese market, it is very
important for Australian Super Food Co to follow the strong waste
management regulations. On the other hand, it is also true that based on the
business environmental situation in China, it can also be said that product
packaging is one of the essential part in waste management system in
business. In that case, Australian super Food company needs to introduce
disposable packaging so that the environmental pollution can be avoided.
Analyzing the customer profile of the company, it has been identified that

6INTERNATIONAL MARKETING
following the health standard the company aims to introduce the organic
products in the market. With this initiative, it can be assumed that
environmental factors in Chinese market can be in favorable situation for
developing its business.
(Created by author)
Porter’s five forces
Situation Analysis
Bargaining power of the customers Bargaining power of the customers is high due to
availability of various companies in the same industry.
Bargaining power of the suppliers Bargaining power of the suppliers is low as most of
the super food companies have started their own
farming practices.
Existing rivalry Large numbers of existing organizations like Navitas
naturals and Lizzy’s All Natural have already
developed their competitive position in the market.
Threats of new entrants Threats of new entrants in Chinese market is high s
the government has focused on enhacing business
opportunities in the market.
Threats of substitute products The threats of substitute products in the market is high
due to availability of same types of super food
products.
(Created By author)

7INTERNATIONAL MARKETING
Competitor analysis
Analyzing the super food market in China, it has been identified that after the
development in china, demands for healthy food have been increased. The consumption trend of
Chinese people has shifted from testy to healthy foods. Upper class and middle class people in
China have become highly concerned about the healthy foods. Analyzing the position of
competitors of Australia super food company, it can be said that Lizzy’s all natural and Navitas
naturals are the major competitors of Australian Super Food Company in Chinese market
(Navitasorganics 2019). Navitas naturals is the popular brand which has developed its strong
brand image in the market by introducing the 100% organic as well as non-GMO line super food
sources in the market. In order to maintain n the transparency in the market, strong commitment
towards the customers has increased the value of the company in the market. High quality of
medical as well as super foods are being provided by the company. Goji berries, Camu camu,
golden berries, Cashews, coconut chips, chia and many more products are being provided by the
company. Therefore, analyzing the competitive strategy adopted by the company, it can be said
that Navita has introduced healthy, delicious and pure products, which has maintained its
diversified product strategy in the market. On the other hand, analyzing the business motive of
Lizzy’s All Natural, it has been identified that the company aims to provide healthy and clean
eating accessible as well as affordable products in the Shanghai food market. From the year
2014, the company has introduced total 35 types of super food smoothies, detoxifying cleanse
and nut milks. The aim of the company is to rebuild the relationship from seed to plate
(Kickstarter.com 2019).
However, in case of Australia Super Food Company, it has been identified that the company is
nourishing the indigenous community from the last 50000 years. Analyzing the product portfolio

8INTERNATIONAL MARKETING
of the company, it has been identified that healthy substitutes of unhealthy snacks and synthetic
flavors are being provided by the company. In that case, it can be assumed that not only the diet
conscious customers, but also the people who prefers snakes can also be targeted without
effecting their health badly. Adding reasonable ranges of products such as DAVIDSON plum,
FINGER Lime, RIBERRY, QUANDONG and many others products are being provided by the
company;, which can help it to adopt the unique selling proposition strategy in the Chinese
market.
Competitor analysis template
Competitor Busine
ss
facts
Product
profile
Custom
er
profile
Value
to
custom
er
Other
notes
Navitas Naturals
https://navitasorganics.com/
China Goji
berries,
Camu
camu,
golden
berries,
Cashew
s,
coconut
chips,
chia and
Price
sensitiv
e
custom
ers are
the
potenti
al
target
market.
Cost
effectiv
e
strateg
y
Cost
effective
strategy
can play
an
influenti
al role in
case of
driving
the
positive

9INTERNATIONAL MARKETING
many
more
products
are
being
provide
d by the
compan
y
growth
in the
compan
y.
Lizzy’s All Natural
https://www.kickstarter.com/projects/4100
12095/lizzys-all-natural-shanghais-
superfood-smoothie-sh
Shang
hai
the
compan
y has
introduc
ed total
35 types
of super
food
smoothi
es,
detoxify
ing
cleanse
and nut
Price
sensitiv
e
custom
ers
the
compa
ny aims
to
provide
healthy
and
clean
eating
accessi
ble as
well as
afforda
ble
The aim
of the
compan
y is to
rebuild
the
relations
hip from
seed to
plate

10INTERNATIONAL MARKETING
High Quality
High price
Low quality
Low price
Navitas Naturals
milks product
s in the
Shangh
ai food
market
Positioning map
Figure: Positioning map
(Created by author)
Analysis:
In the above diagram, it has been identified that the major competitors of Australian Food
Co such as Lizzy’s All Naturals and Navitas Naturals have been placed in high quality low

11INTERNATIONAL MARKETING
price. In that case, it can be said that in order to enter in the Chinese market, the company will
face high threat from Lizzy’s All Naturals and Navitas Naturals companies.
SWOT analysis
Strength Weakness
 The company has developed strong
customer base
 It has developed strong brand image in
the market by introducing the
sustainability initiatives towards
indigenous community.
 The unique strategy for conserving the
Australian native people has made the
company popular in the global market
 The herbal farming technique is the
important strength of the company
 Due to decline rate of indigenous
population, it may be challenging to
maintain the core authenticity of the
business
 Employee wages is increasing in
Chinese market day by day, which can
increase the overall cost of the
company (Young 2015).
 Due to increasing ecommerce trends,
online delivery system in the chine
market has become important for
sustaining in the competitive business
environment.
Opportunities Threats
 The growing Super food industry in
China can bring various business
opportunities for Australian Super
Food Co in the market (Zhang et al.
 Strong competitors in the Chinese
market are the major threat of the
company
 Strict regulation as well as
transportation cost is the important