International Marketing Strategies for Australian Superfoods in China

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INTERNATIONAL MARKETING
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Contents
Introduction......................................................................................................................................3
PESTLE Analysis............................................................................................................................4
Competitor Analysis........................................................................................................................6
Market readiness and entry mode....................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10
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Introduction
This section of the assessment will be dealing with the study of the new market and the trends
associated with that market in order to deal with the competitive needs and following features
associated with that. This report also states that the development of current services will be based
on the growth and understanding of current market norms and make them effectively apply the
same in the future aspects of the business. The country that has been selected to see the market
positioning and growth in China and the launch of Australian Super Food will be studied with
respect to the micro and macro environment of China. The analysis will help in understanding
the future aspects of the company and will be effective in applying the resources well in the
country. Another aspect that will be analyzed is the market readiness and competitive features
associated with the market that can help in the future aspect of the company’s market position.
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PESTLE Analysis
Political Factors
China is one of the oldest and largest economies in the world. Being a permanent member of the
Security Council in the nation it has been one of the major sources for business structure and
business opportunities. China has a Communist party that has been ruling the country for a very
long time this makes trade functions difficult and more limited. The political environment in the
country is highly stable but political freedom is less. The availability of cheap labour and huge
and well-developed infrastructure has made it one of the best options for foreign direct
investments. China is quite dominant over investors that are why chines FDI have reached many
countries in a given period of time. Some of the countries where Chinese investments are
stunning include Argentina, Angola, Chad, UK, Australia, Pakistan, Bangladesh, Indonesia, the
United Arab Emirates (Srdjevic, et. al., 2012).
Economic Factors
China is the world’s largest economy on purchasing power basis. There have been a number of
economic reforms that were introduced in late 1970 that has been affecting the development of
the economy and further development of the economy in the following years. The availability of
cheap labour in China is one of the major advantages the company has. Talking about the wages
in China it is higher than the wages in Argentina, Brazil, and Mexico thus dealing with the global
economy.
The tax system says that income tax rates in China is 25% but the government has been trying to
reduce the tax rates to 15% in order to meet the demands of the industries and help them with
following features for development. The income tax rates on an individual level are in the range
of 3% to 45%. China has shown significant growth rates in the GDP market thus the same has
been affecting the rate of savings and economic development in the organization by taking into
account the overall needs of the international companies associated with the organization. The
growth has been inflating in the past few years thus increasing property prices and consumer
durable goods options in the market. This makes it quite expensive for foreign investors to deal
with market growth (Kolios and Read,2013).
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Social Factors
China is the most populous country in the world has been contributing 1.4 billion population to
the world thus affecting the market place and consumer demands in the market. This has been
affecting the development of choices and market place to the people in order to deal with the
effective user development and subsequent needs of the community. The culture is very closely
knit and the highly flourishing local market makes it very difficult for an individual to deal with
the subsequent needs of the customers and future demands of products. A large population also
increases the demand for various goods associated with the development of an individual thus
taking into account various aspects dealing with the luxury goods and other needs as well. With
the development in technology and resources in recent years, the community has reduced poverty
and illness among people thus leading to a large number of the aging population in the
community. The reduction in poverty and an increase in the number of people in the community
have made it difficult to capture a sufficient number of people actually talented enough to deal
with the subsequent growth of new companies.
Technical Factors
Being a labour intensive economy China has been moving very quickly on technical resources
thus taking into account various factors associated in the development of various low-cost tech
products to the market. The growing economy has been leading a large number of companies
that have been leading to the development of employment opportunities for the people. China
has been carrying a vision to be a global leader in the field of science and technology thus they
have launched mass entrepreneurship program in order to deal with the development and
encouragement of opportunities associated with the development of future aspects of the
company. The opportunities are good in China for both domestic and international companies
this helps in the growth of future aspects of the company and they have future opportunities to
deal in the further development of technical aspects of the company. There can be a good source
of innovation in the country to deal with the aspects of the technical changes in the country
(Adamkasi, 2015).
Legal Factors
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The legal aspects and laws in the country are very strict and highly influential in dealing with the
subsequent needs of the community and taking into account the subsequent needs of the
consumers. These laws are employee remuneration and benefits, labour disputes, about
standards, issues that are regulated by The PRC Labor Law 1995, the PRC Labor Contract Law
2007. There are certain other associated catalogues as The Catalogue of Industries for Guiding
Foreign Investment regulates FDI in the country, this has divided FDI into four categories as
encouraged, restricted, prohibited, and permitted. This category includes more than 384
industries and many of them are related to vegetables, fruits, and other retail and grocery
products. In order to deal with the subsequent needs of the economy, there has been
development in the e-commerce sector as well to deal with the needs of the company and its
subsequent standards in the future.
Environmental factors
Environmental factors constitute not only the current business environment but also the physical
environment associated with the growth of the company taking into account the impact of
geographic features on the development of the business environment. The rapid growth in the
economy has been affecting the growth of the country by affecting the biodiversity and future
aspects of the economy and making a subsequent disturbance to the natural habit of the economy
and taking the effective application of the same on future aspects of the economy. The incoming
of various foreign industry and companies have been affecting the current balance in the
environment. Government is very strict to deal with such issues by taking into consideration
various factors associated with the growth of the economy and making effective application of
the same in future needs of the environmental economy (Postiglione, 2015).
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Competitor Analysis
The competition of Australian Superfood is with various small and big supermarkets and
hypermarkets that have been there in the Chinese market for more than a year thus leading of
subsequent capture on the preference and development of features associated with the growth of
the industry (Liu, et. al., 2013). Main such competitions are supermarkets, departmental stores,
online market, and specialty stores; also local market also plays a great role in the development
of future aspects of Australian Superfood. The comparison can be understood in the table as
under:
Competitor Business
facts
Product
profiles
Consumer
profiles
Value to
customers
Other
notes
A Supermarket
s
They are
mostly
located in
all
prominent
locations
with almost
100 stored
associated
in all over
China.
The size is
large and
varies as
per the city.
The products
are similar to
the Australian
supermarket
and the prices
are
comparatively
lower.
Consumers
are mostly
from low to
medium
income
families thus
the choices
are usually
low-cost
products
ignoring the
health
factors.
The service
is quite fast
and shelf
rotation is
frequent
thus leading
to the
development
of a stronger
consumer
base.
They are
more into
quantity
products
rather than
quality
products.
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B Departmental
stores
They are
somewhere
equal to the
supermarket
but with
lower
facilities
and fewer
options
available
for
consumers
Stores are
around 50-
60 I China
(Li, et. al.,
2013)
The product
range
contains
heavy to the
weak range
that leads to
the
subsequent
structure of
prices
involved.
Customers
are forming
all the
sections of
society.
They can be
well salaried
or weakly
salaried in
nature.
They deliver
top quality
and
effective
services to
the people
thus dealing
with
effective
development
of services
involved in
the market
The quality
is good.
C Online
Market
They do not
need any
physical
store as
their access
is from
everywhere
and with
anyone with
smart
device and
internet
The product
range and
price are huge
and they
deliver the
products in
optimum time
to people
effectively.
Customers
are mostly
high-end
professionals
with good
economic
background
and those
who want to
try new
things
They give a
huge range
of products,
cost, and
services
They are
easily
accessible.
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access.
D Local market They have
low-cost
substitutes
to all the
products
and usually
available
near all
major
populated
areas
(Murray,
2014)
They have all
products
related to
grocery and
living at a
very low
price
Customers
are a usually
poor and
working
professional
who have
less time for
supermarkets
They have a
huge
customer
base.
They are
low cost
and follow
the
traditional
concept for
sales and
production.
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Positioning map
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High Price
High QualityLow Quality
Low Price
D
C
B
A

Market readiness and entry mode
The capability of the company is highly dependent on the growth of the individual by taking into
account the company experience and effective resources they have for future development and
current enhancement of business (Su, et. al., 2013). This can be done by checking the
microenvironment factors that have to be analyzed while taking into account various process
associated with the growth of Australian Superfood. This can be performed by doing a SWOT
analysis of the company and making effective changes in the process by taking learning from the
current scenario.
Strength
 The major strength of the company is
its brand value and product quality
 The nature of production and process is
very effective to deal with the
development of a customer base in
future
 The experienced company has to
establish a new brand and develop
space in the market can help them to
deliver better results in the future
(Shambaugh, 2013).
Weakness
 Lack of knowledge about developing
country market may initially impact the
development of the company
 Lack of local knowledge and a weak
network of stakeholders can impact
future aspects of the company.
Opportunity
 Development of e-commerce platform
can help in better customer base
creation. The growing economy and
low-cost manpower can help in
building business faster
Threat
 The increasing trend of the online
market can impact sales
 Strong local market
 New supermarkets and specialty stores.
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 Stable political values can help in
legislative features as well (Cheung,
2013).
Entry mode
The company can be able to get enter into the new market with the help of an online platform or
through e-commerce business. This is one of the best approaches that can be used by the
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