BSBMKG605: Evaluating International Marketing Opportunities in Asia

This report evaluates international marketing opportunities for Bounce Fitness, focusing on the potential of Asian markets like China and India. It examines the code of practice for international business, the role of organizations like OECD, and the growth of international trade. The report highlights the increasing health consciousness and disposable income in Asian countries, making them attractive markets for fitness equipment, especially through e-commerce. It also addresses potential challenges such as cultural differences, technological limitations, import taxes, and cyber security threats. The analysis considers trade policies, regulatory requirements, and economic risks, emphasizing the need for a comprehensive understanding of the Asian market before entry. The report suggests leveraging e-commerce and social media for marketing to overcome cost barriers and reach a wider audience, while also acknowledging the competitive landscape and the importance of adapting strategies to suit local conditions.

Running Head: Evaluate International Marketing Opportunities
Evaluate International Marketing Opportunities
6/13/2018

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Ans.1 (a)
Code of practice set the standard of industry operation and help to build an image in the mind
of your customer. Usually, code of practice can be formulated in consultant with the industry
or can adopt the pre-formulated rules and regulations that was earlier formulated by the
industry or the government in which you have to conduct the business. Therefore there two
types of rules and regulation that a business has to follows: mandatory laws and voluntary
laws. Mandatory codes provide a minimum level of security to consumer where voluntary
laws are form of industry self-regulation on which the industry has its own control and can be
imposed or not according to the situation as needed. The key provisions related to
international business operation are the guiding factor for the any business or start-up. The
business operation must follow the law regarding consumer protection, competition,
regulations about product liability, environmental legislation, price setting, fair trading law,
privacy laws etc. There are number of statutory body that helps in to maintain the ethics of
the business such as, ACCC (Australian Competition and Consumer Commission), ACL (The
Australian Consumer Law), and OAIC (Australian Information Commissioner). There are
number of international statutory body that control and guide the overseas business like WTO
(Australian Trade and Investment Commission, 2018).
Ans.1 (b)
OECD is responsible for maintaining a good relationship among the world’s major economic
player by setting global standards in the area of economic development and social
development (such as financial market, sustainable development, education, investment, and
quality of public administration etc.) including highly specialised field such as nuclear
research and biotechnology. OECD also helping in hastening the global trade and doing
research in the area of economic and social development, science and technology, finance
and taxes, global trade, the environment and public administration. These standards and
provisions are so important after its implementation and adoption, for the international
investors whose decisions based on the comparative data which is published by the OECD
(Office of the United States of the Trade Representatives, 2018).
Ans.2 (a)
Through the last four decades, there has been a record growth in international trade amongst
the countries and there is no indication of slowing down. The global trade is dominated by
few countries like USA, China, UAE and India etc. over the last 40 years, trade as changed
from major flows between US and Europe to major flow between Asia and Europe. Because
of the population boom in Asian countries like China, India, Japan, and Brazil etc. and deep
poverty level they are suffering with health and fitness issues. Therefore we can consider
their health perspective and their fitness problem we can export the bounce fitness weight
equipment to these countries.

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Ans.2 (b)
The Asian countries like China, and India has large number of young population and their
disposable income is also continuously increasing, they are more conscious about the health
and fitness. China and India are two big young population countries that could be a great
market for health related equipment because they are suffering from unhealthy eating habits
and hectic lifestyle. As a result fat or overweight population is on rise in Asian countries. So,
people are focusing on more work outs to lose Weight. They are continuously dominating in
online purchasing and using e-market through mobile phones and laptops. So, with the
increasing population of Asian countries the growth of the internet and e-commerce activity
has been rapidly increasing and the demand of the fitness equipment are also increasing
through e-commerce. Therefore it will be a good opportunity for Bounce Fitness to enter in
Asian countries like China and India to spread its business and target mass through the help
of e-commerce market (Projects Apec market, 2015).
Ans.2 (c)
Countries like China, South Korea, and India are the developing countries and are active
member of WTO and following the WTO norms and guidelines for trade. They need to
expand their trade with the other countries of the world for their economic and social
development. These countries are very liberal in their trade policy. So it is very easy to enter
this large Asian market. These countries are also member of ASEAN and FTA (Free Trade
Agreement) that supports free trade without boundaries and restrictions beyond of their
domestic territory. From last two decades these countries are doing large trade with other
countries and their faster economic growth is the proof of their liberal trade policy.
Ans.2 (d)
Both China and India is the active member of WTO and follow the free trade policy of WTO
to trade with other countries of the world. China and India have grown rapidly in recent years
and, in both, the importance of trade has risen substantially relative to GDP. They open the
gate of their economy (China in 2001 after taking membership of WTO and India in 1991)
for the foreign investors and these countries also give status of MFN (Most Favoured Nation)
to other nation to promote trade. The current multilateral system of trade of these countries
involves MFN concept, which prevents any company from unilaterally imposing a higher
tariff on one partner thane on others. The government policies of these countries are also
supporting and so liberal about doing restrictions free trade and for this purpose they remove
all the tariff barriers and restrictions to attract foreign traders and investors (UK Esssays,
2018).

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Ans.3 (a)
Generally Asian people not believed in online shopping or using e-commerce site. The
illiteracy rate is too high thus they are not literate enough to use e-commerce website.
Another problem is that Asian people normally belief in cash payment rather online mode of
payment. Government taxes on the imported products are too high and charges heavy import
tax. Asian People more belief in yoga, Kung-Fu, and exercise, so it is so difficult to aware
them about the fitness equipment. The technological advancement is another problem with
the Asian people. They are still working on the technological aspects related to mobile
networks and data efficiency. Therefore these factors adversely affect the online sell of
weight equipment. Another problem is the low income level of people. People cannot be able
to purchase costly equipment of bounce fitness, so we have to keep low margin of profit on
the products (Otuedon, 2016).
Ans.3 (b)
According to Fitness equipment market report, published by allied market research, forecasts
that the Asian market is expected to grow $2.4 billion by 2020, registering a CAGR of 7.5%
during the period 2015-2020. The youth population is continuously growing in Asian
countries and the disposable income is also increasing continuously (Transparency market
research, 2018). Therefore, with the rising of disposable income the awareness of people
about their health and fitness is continuously increasing day by day. By 2020, the adoption of
fitness equipment by health clubs would contribute about 47% of the Asia pacific fitness
equipment market revenue. Economy of both India and China growing very fast and the
adoption of the health and fitness equipment by health clubs, hotels, hospitals are also
continuously increasing with the increasing economy (Allied Market Reseach, 2018).
Ans.3 (c)
In recent time countries like China and India is good place to invest in any business because
they are developing countries and have large population. They are busy in shaping the
economy of the country and it will be a good opportunity to enter in the Asian market.
Because a great portion of these countries belongs to the youth population it will be easy to
enter in business related to health and fitness equipment. Another benefit to target the Asian
market is that we can target these markets through the help of E-commerce business. E-
commerce is currently on boom in the Asian country because of the digitalization era in
China and India (Payu, 2017). Only these two countries are contributing more than 2.7 billion
of population of the world and with the growing population the level of income level and
disposable income is continuously increasing thus they are ready to expense their income on
their fitness and health (Emerald Insight, 2015).
Ans.4 (a)
Across both the Asian countries high unemployment rate and energy price shocks are the
major problem area. After this failure of governance and poor infrastructure is another
problem in the Asian country. Another threat is for online business and trade is large cyber-

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attacks. Asian countries are continuously facing large cyber-attacks that disrupted businesses
in major Asian economies, with China, India and Vietnam reported to be among the 20
countries who effected badly by cybercrime (Wannacry Ransomeware cyber-attack effect
larger part of Asia and its economy). The political factor is also an important factor of Asian
countries. There is huge instability in the political and governmental rules and regulations of
almost all the Asian countries. The poor infrastructure of the Asian country is another
problem after considering the logistic and supply chain prospective. So, these factors are
more considerable during export planning and there should be ‘B’ plan for these risk factors
(World Economic Forum, 2017).
Ans.4 (b)
Both India and China remove the trade barriers from import and export of goods but still in
some areas they require licence like India government requires a special import licence on
import of motorcycle and automobiles that is very restrictive. These Asian countries also test
the product Quality by comparing the product with international standard quality. They also
provide export subsidies for the same product and financial help to the domestic player of the
same industry that increase the competition of Bounce Fitness with domestic competitors of
the same product. Once the exporter pass the product quality test and got the certification of
quality, it will be easy for the exporter to enter in Asian market. These countries also allow a
price preference for local suppliers against the foreign suppliers that discriminate them
against the exporter. So enter in Asian market is tough because there lot of support provided
by the government to its domestic suppliers that increase the competition with the foreign
supplier of same product (Cuniberti, 2016).
Ans.4 (c)
One of the big risk with the Asian countries are that these are developing countries and a
small adverse change in the environment such as, change in government, change in rules and
regulation, change in tax regime, and recession etc. can affect hole economy and that change
everything in the country. So it is essential to analyse all these condition before entering in
the Asian market. Heavy fluctuation in the economy also adversely affects export of the
product. Political instability, financial stability and legal and regulatory requirements are
other risk factor that determines the trade business with these countries. The income gap
among the Asian people is too high so it is tough to maintain a single advertising and selling
scheme for all people. So before entering in Asian countries like China and India such risk
factors must be analysed and evaluated by the Bounce Fitness (Peerawat, 2012).
Ans.5 (a)
In the era of electronic commerce Bounce Fitness can target whole international market by
electronic means of advertising. Through E-commerce we can target mass all over the word
and the advertisement cost is comparatively less than any other means of advertising. Another

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opportunity for marketing in those countries is social network site. As we all know that these
Asian countries are developing country and large population country and they are using
social media like Facebook and twitter. So these media of marketing of fitness equipment is
suitable and less expensive. In recent past, due to heavy work pressure there is number of
health issues people face like diabetes, heart-related problems, high and low blood pressure
etc., further obesity, is the major concern of people in both developed and developing
countries. Bounce Fitness can target both young and old people for purchase the exercise
equipment to take of their health related issue (Elsevier, 2011)
Ans.5 (b)
Social media is one of the attracting means of marketing because large number of Asian
people using social media for communication and entertainment. Through social media and
promotional activity we can target huge number of people in China and India. Although,
China has its own social media platform and they are not using Facebook or Twitter, but
Bounce Fitness can purchase a place for advertisement in the Chinese social media
platform. Google ads are another option for marketing your product. Through the medium
of digital marketing opportunities we can market of the products to mass and anywhere on
the globe. The social media marketing is very economical and a new fitness centre like
Bounce Fitness can afford the cost. Because e-commerce is growing in dramatic way all
over the world and is considerably affect the customer and business market behaviour it will
be great opportunity for marketing (Business, 2018).
Ans.5 (c)
Through the use of social media Bounce Fitness can target large number of people free of
cost. This is one of the great advantages of Social media. But in paid version of advertising
through Google and Facebook, or other social media like Chinese social media, we have to
pay very minimum amount of money. Google is providing a platform for advertising such
products with minimum cost with your target location. One of the great benefits of such type
of marketing strategies is that you can target a large number of people with maximum effect
in their mind about the product. But there is also a big risk involved in social media
advertising is that hacking and cyber security problem. Every day there are number of sites
hacked and destructed by the hackers. Another possible risk with social media is great
exposure online has the potential to attract risk that includes negative feedback, information
leak or hacking.
Ans.5 (d)
It will be estimated that a very good return Bounce Fitness received in turn of their
investment. But a large investment required for export of the fitness equipment in Asian
country. The cost of the equipment and the margin of profit will determine about the return
what will we earn on our investment. In other hand the cost of advertising and marketing of
the product is too less because of social media. The potential customer of Bounce Fitness will
be youth and old people both because they all need health equipment to maintain their good

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health. The working women and those women who are suffering with over weight problem
can be our potential customers. So, there is large scope for bounce fitness to explore its
business all over the world (Marketing91, 2017)
Ans.5 (e)
The export of fitness equipment from Australia to China or India is tough task and it could be
possible through shipping and needed huge amount of money. If once it could be manage the
distribution channel should be identified in the targeted area of marketing. Both China and
India is developing country and continuous work upon super market concept, so it will be
easy to target and launch as a channel through which product can be sell to its potential
customer. The anther reason behind this agenda is in these countries the number of upper
middle class and higher class is very low, and only higher income groups can afford the
health equipment because of its cost and they can easily be identified and targeted through
this super markets and large shopping malls and super markets. So, all the problem the
business will faced tough competition from the existing market players, heavy cost of
shipping, and the instability in government rules and regulation, politics and the technological
issues that could be faced by Bounce Fitness in Asian market (Cision, 2017).

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