MKT3012 Report: Lucky Dog's East Asian Market Expansion Analysis

This report provides a comprehensive analysis of potential market expansion opportunities for Lucky Dog, an intelligent dog feeding tool, focusing on East Asian markets. The report begins by establishing screening criteria based on GDP growth, political stability, and unemployment rates within the East Asian region, leading to the identification of potential markets. Through preliminary screening, countries like China and Japan are considered. A fine-grained screening process then evaluates Japan and China based on factors such as political stability, economic indicators, social factors, and technological advancements. The analysis reveals Japan as a more favorable market due to its political stability, lower unemployment rates, and customer inclination toward pet care products. The report concludes with a recommendation for market entry strategy in the selected market, providing insights for Lucky Dog's expansion.

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

1MARKETING MANAGEMENT
Table of Contents
Introduction......................................................................................................................................2
The screening criteria......................................................................................................................2
Potential country markets................................................................................................................2
Fine grained screening criteria.........................................................................................................6
Selection of one market for making an expansion out of the alternatives.......................................6
Market entry strategy for the selected market...............................................................................15
Conclusion.....................................................................................................................................15
References......................................................................................................................................16

2MARKETING MANAGEMENT
Introduction
Market expansions are critical functions that are considered by the organizations for
empowering their growth and sustenance. Moreover, the market expansions are undertaken by
the organizations with the purpose of improving the market scope for increasing the business
profitability. The organizations take the initiative of improving their market prospects through
conduction of a detailed screening method. In this connection, the screening methods are aligned
with the product features and the target market that the organization focus on positioning their
brand offerings. The report will take the initiative of detailing the screening criteria for Lucky
Dog, an intelligent dog feeding tool proposition while analyzing the potential economies where
the organization might expand. Therefore, the purpose of the report is to identify a potential
target market for the concerned organization while making their expansions.
The screening criteria
The screening criteria will be specifically reliant on clustering the economies that are
experiencing a growing GDP rate in the East Asian regions. The clustering mechanism is
specifically reliant on the assessment of the close association between the economies. In this
connection, the GDP growth rate, employability of the people and the political stability index in
the nations would be considered as the major metrics that would support the organization in
narrowing down their choice of the target market from a wide range of alternatives.
Potential country markets
The potential markets for the concerned organization are the ones in the East Asian
regions like China, Taiwan, Japan, Mongolia, North Korea and South Korea. The Assessment of
the potential countries would assist in supporting the identification of the best suited economy

3MARKETING MANAGEMENT
for growth of the concerned organization. The assessment will be made through clusters where
close association between the economies would be assessed with the perspective of improving
the rate of operation of the venture while operating as per the common goals of the venture. The
section will take the initiative of collecting data on the feasible list of economies and thereby
differentiate between the same in terms of the diverse opportunities and challenges that are being
expositional by the same.
China Taiwan Japan Mongolia North
Korea
South
Korea
Political
stability index
-0.26 0.85 1.06 0.79 -0.35 0.54
GDP growth
2020
(estimated)
6.1% 1.9% 0.5% 5.37% 1.30% 2.22%
Unemploymen
t rate 2020
(estimated)
3.8% 3.8% 2.4% 8.1% 3.30% 4%
Table 1: Preliminary screening based on clustering of East Asian nations
(Source: Worldbank.org 2020)
The preliminary screening aimed at identifying the different opportunities and concerns
that might be encountered by the organization while making an expansion related decision in the
aforesaid economies. It has been observed from the preliminary screening that Japan has an
increased political stability with 1.06 followed by Mongolia with 0.79 which critically states that
the concerned organization would encounter minimized government intervention in the different

4MARKETING MANAGEMENT
business operations while making expansion in the economies (Worldbank.org 2020). On the
other hand, China might encounter a GDP growth of 6.1% by the end of 2020 followed by South
Korea with 2.22% which specifically enumerates the growth of the organization in the markets
(Worldbank.org 2020). The key aspects of change in the organizational operations are based on
the effective functioning of the different systems in accordance with the productivity and
industrialization of the regions, permitting the population to encounter a growth in the disposable
income. In this connection, Japan’s GDP growth is estimated to grow at a slower rate through
1.9%. The concerned organization encounters a massive expansion opportunity in China due to
their increased GDP rate over the years (Worldbank.org 2020).
However, it has been observed that China holds a restrained culture towards the foreign
investments. The nation imposes an unclear legal requirements which might restrict the
capability of the concerned organization in facilitating growth in the Chinese markets. Again, the
increased unemployment rate in the Chinese economy by 3.8% would affect the buying power of
the consumers (Worldbank.org 2020). The buying power of the consumers are based on the rate
of employment and the disposable income that the same possess towards buying propositions
that are offered by the foreign economies. The lower employment rates in the economies might
affect the capability of the organizations in maintaining the effectiveness of the business
operations while operating as per the common goals pod the venture. In this connection, it has
been observed that Japan’s economy encounters the lowest unemployment rates (2.4%) which
would assist the organization in finding potential customers towards the propositions that are
made by the same (Worldbank.org 2020).
The increased spending capability of the Japanese population is specifically based on the
increased rate of disposable income and employability offered by the economy. Whereas, North

5MARKETING MANAGEMENT
Korea, China and Taiwan encounters an unemployment rate above 3% which might incapacitate
the organization in finding potential customers in the economy. Moreover, the buying behavior
of the customers play an important role in empowering the expansion related decisions that are
made by the organizations. In this connection, it has been observed that the Chinese economy
holds a rather restrained culture and the population are more focused on buying the propositions
from their traditional Chinese stores rather than the international markets.
Most of the East Asian economies are more focused towards buying from their traditional
marketplace rather than initiating a buying decision from international businesses. However, the
advancement of e-commerce in the East Asian economies has brought about significant changes
in the buying behavior of the millennial customers. It has been observed that most of the
millennial customers are driven towards leisure and experience based shopping from different e-
commerce platforms. In this relation, the shifts in the buying behavior of the customers from
traditional shopping to the e-commerce platforms, in the East Asian economies have greatly
contributed to the change in the organizational operations while making expansions in the
economies.
Therefore, the overall consideration of the preliminary screening helped in identifying
Japan and China as the alternative nations where the organization might take the leverage of
expansion. The Japanese markets are attractive with lower levels of government intervention and
greater political stability. Moreover, the Japanese markets holds a lower unemployment rates
than the other existing East Asian nations which would allow the organization in widening the
market scope for their target audience. On the contrary, the Chinese economy might portray an
increased political instability but has a greater prospect of GDP growth in the year 2020 which
confirms the growth of the organization in the economy (Worldbank.org 2020). However, the

6MARKETING MANAGEMENT
lack of clarity in the legal aspects of the nation and the growing corruption in different public
and private sectors might act as a restrictive force for the expansion of the organization in China.
Therefore, the subsequent fine grained screening will be conducted on the nations for improving
the decision making criteria of the organization while making a market expansion.
Fine grained screening criteria
The fine grained screening will be undertaken through the implementation of a ranking
system which would specifically take the advantage of developing a rating based assessment of
the macro market environment of the two chosen economies from the preliminary screening. The
rating based assessment of the two nations would allow in identifying the most feasible economy
for the concerned organization to make an expansion.
Selection of one market for making an expansion out of the alternatives
Factors Japan Ratings
(Scale of 1-
5, where 1
is the
lowest and
5 is the
highest)
China Ratings
(Scale of 1-
5, where 1
is the
lowest and
5 is the
highest)
Political  Japan
experiences an
increased
political
stability and is
4.5  China
experiences a
greater
instability in
the political
1

7MARKETING MANAGEMENT
considered to
have a stable
relation with
G8 and
ASEAN (Zhu
and Hennings
2019). The
political
stability of the
nation would
allow the
concerned
organization in
improving their
market position
after making an
expansion in
the economy.
 The lower rate
of intervention
of the
government in
the operations
situation with
a negative
stability index.
Increased
government
intervention
on the
different
business
practices, high
rates of
taxation and
unclear
legislation are
the major
factors that
might affect
the capability
of the
concerned
organization
while making
an expansion

8MARKETING MANAGEMENT
of the private
and the public
organizations
would
considerably
support the
organization in
empowering its
growth and
maturity (Noda,
Yoshida and
Honda 2019)
in the Chinese
economy
(Zhang et al.
2017).
Economic  The GDP of
Japan in the
year 2019 was
$5.154 trillion
and the PPP
was $5.747
trillion which
achieved a
position of 3rd
and 4th
respectively in
4  The GDP of
China is
expected to
grow by 6.1%
by the end of
the fiscal year
2020 with
increased PPP
which would
encourage the
growth of the
5

9MARKETING MANAGEMENT
the competitive
reports (Tomata
et al. 2019).
The growth of
the productivity
and standard of
living in the
nation would
increasingly
support the
concerned
organization in
empowering
their growth
and expansion
in the economy
(Noda, Yoshida
and Honda
2019).
concerned
organization
in the
economy
(Wang and Qi
2019).
Social  The
unemployment
rate in Japan is
considerably
4  The rate of
unemploymen
t in China is
3.8% which is
4

10MARKETING MANAGEMENT
lower than that
of the
economies in
the East Asia. It
has been
observed that
the rate of
unemployment
in Japan is
2.4% which
reflects the
improvement in
the buying
potency of the
customers (Ishii
2019). The
increased
employability
among the
Japanese
population
influenced the
rate of
higher than
that of Japan
(Tang and Zou
2016). The
increase in the
unemploymen
t rate and the
lower standard
of living of the
Chinese
population,
especially
people living
at the outskirts
of the nation
might limit the
scope of sales
for the
concerned
organization
 Chinese
markets
provide a huge

11MARKETING MANAGEMENT
disposable
income which
has created a
greater
opportunity for
the business in
sourcing
potential
customers.
 The Japanese
customers are
more inclined
towards buying
pet care
commodities. It
has been
observed that
more than 62%
of the Japanese
homes keeps a
pet. Therefore,
the proposition
that is being
source of
skilled and
low cost
labors. The
cheap labors
in the
economy
might assist
the
organization
in minimizing
their
operational
costs while
increasing
their margins
through sales
 The millennial
population in
China is
growing and
are more
inclined