Strategic International Marketing Report: McPhee Bros in China

This report details McPhee Bros' strategic plan to export meat products to China. It begins with an executive summary, highlighting the company's background and the rationale for entering the Chinese market, which includes China's large consumer base and growing economy. The report conducts a thorough situation analysis, evaluating the Chinese market environment (PLESCT), identifying key competitors such as WH Group, and defining the target market. A SWOT analysis is presented to assess the company's strengths, weaknesses, opportunities, and threats, followed by a gap analysis to identify areas for improvement. The report outlines specific business objectives across financial, marketing, and operational areas, including financial projections over three years. The marketing strategy focuses on exporting, building brand trust, and utilizing social media for customer engagement. Finally, the report provides a marketing mix analysis, covering product specifications, competitive strategies, distribution, pricing, and promotion plans, concluding that China offers significant growth potential for McPhee Bros. The report also includes a financial analysis with projected profit and loss, fixed and variable costs, and revenue escalations. The marketing strategy includes plans for promoting products to local restaurants and building trust with businesses. Furthermore, the report also includes the marketing mix analysis with different products, pricing, place and promotions strategies.

Running head: INTERNATIONAL MARKETING
International Marketing
Student’s name:
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Author’s note:

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1.0 EXECUTIVE SUMMARY
The purpose of this paper is to show the expansion of the organisation McPhee Bros Pty
Ltd to China. McPhee Bros is famous for exporting the meat and live stocking to more than 50
countries. McPhee Bros is going to export the products to China as China will provide more than
1.3 billion internal potential customers. The target country China will be potential market for the
beef exporting and exporting of the products will liable for taxes; hence, the products of McPhee
Bros can be expensive. Economy of the china is flourishing as it has been observing 6.7% steady
growth and the middle class people seek the better quality and healthier products. Therefore,
China-Australia Free Trade Agreement will provide opportunities to the Australian businesses to
get the economic growth. In China; the corruption and scandals are large and confidence level of
customers are decreasing. However; beef consumption in China has been dramatically increased
and disposable income of the people in China has been significantly grown. Therefore, external
environment of China is appropriate to export the products and competitors in the market are
large. Due to the high demand from the customers; many of the companies are emerging to target
the meat production. McPhee Bros will face the competition from the WH Group, YurunFood
and ANZCO. The target market of McPhee Bros will be large supermarkets and these must be
located in the capital city of China. McPhee can send the products to four to five star hotels.
Other target market can be fine dining restaurants, bar and clubs and wet markets.
After the situational analysis, SWOT analysis of McPhee Bros has been done to show the
factors of strengths and weaknesses. In this paper, GAP analysis has been evaluated through
current and required capabilities and experience. Business objectives of McPhee Bros in
exporting the products to China have been segregated into three segments, financial, marketing
and operational. In addition, financial analysis based on profit and loss over 3 years has been

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projected along with fixed cost, variable costs and revenue escalations. Marketing entry mode of
McPhee will be exporting in which the company will sell its products directly to the customers in
another country without using another organisation of arrangements. The marketing strategy of
McPhee will be promoting to local restaurants and the organisation is trying to build trust
between the businesses. McPhee can track the potential buyers' customers through Facebook and
email. In the final section of the study, marketing mix analysis has been given with different
products, price, place and promotions strategies. The export venture to China needs to the
personnel to review and monitor the tasks on each stage as it will allow the corrective actions.
China will be an excellent choice for McPhee Bros as it is rapidly growing market and internal
potential customers are high in China.
2.0 INTRODUCTION
2.1 The Company: McPhee Bros Pty Ltd
McPhee Bros Pty Ltd is a wholly Australian owned and operated company and this
company has more than forty years of experience in exporting of meat products. McPhee Bros is
located on the Murray River at Wodonga in North East Victoria, Australia. This place is famous
for the premier cattle and sheep growing area with good rainfall throughout the world. Most
importantly, McPhee Bros is a family owned company and it exports high quality veal, beef,
mutton and goat meats to the more than 50 countries (Mcpheebros.com, 2018). McPhee Bros has
the license by the Australia Quarantine and Inspection Service (License Number 925) and it
supplies high quality meat along with edible offal, hides and skin. McPhee Bros Pty Ltd has the
prime objective to satisfy the customers and to create confidence among the customers about the
products of McPhee Bros Pty Ltd. This organisation is the leader in the meat industry and it

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maintains a modern class meat production team with fully integrated quality assurance system.
McPhee Bros upholds continuing commitment to provide the highest standards products to the
customers.
2.2 Definition of and reason for the export opportunity
McPhee Bros is going to export the meat products to China. UNCTAD published the
World Investment Report 2017; in which China was ranked third in world’s largest FDI recipient
country. For the multinational companies; Chinese economy is always attractive and China was
ranked 78th out of 150 in World Bank for the business climate Doing Business 2018. In the year
2017, FDI rose 7.9% and it reached the figure of USD 135 billion in China
(En.portal.santandertrade.com, 2018). It shows the clear picture that foreign companies show
interest to expand the business in China. McPhee Bros can get the benefit of China Australia
Free Trade Agreement (ChAFTA) which has made the strong trade investment between two
countries. McPhee Bros can get the benefit of the biggest internal market with 1.3 billion
potential customers and it is rapidly growing the market with 7% growth per year. Labour costs
in China are comparatively low and western province in China has been offering new
opportunities.
8.0 CONCLUSION
It has been observed that Government of China encourages the investment from the
foreign companies; however, foreign investment in some sectors deemed key towards the social
stability and China is trying to develop the domestic firms. China has good relationship with
Australia a free trade agreement between the two countries help to penetrate more deeply into the
largest export market. Department of Foreign Affairs showed that the fastest growing important

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sector of China to export can be beef and Chinese economy is growing with the steady growth of
6.8% per year. It has also been noticed that Chinese market has been increased by 13 times in the
past 10 years in the meat and live stocking sector. Chinese middle class people have been
showing the growth of purchasing power and demand of high quality meat can be increased.
Australian products are liable to tariff and it will make the products expensive. The business
objective of McPhee is to grow to be trusted and preferred brand of meat for the target market in
China. In addition, McPhee wants to achieve long-term and sustainable profit and growth for the
organisation.

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Reference List
McPhee Bros. (2018) About the company and profile. [online] Available at:
https://www.mcpheebros.com/profile/ [Accessed 4 June 2018]
Santanderportal. (2018). Chinese market. [online] Available at:
https://en.portal.santandertrade.com/establish-overseas/china/foreign-investment [Accessed 4
June 2018]