University Export Management Report: Nuraphone's Market Analysis

This report provides a comprehensive analysis of the Nuraphone Company's export management strategy, focusing on its market position and potential for global expansion. The report begins with an executive summary and table of contents, followed by an in-depth examination of the company's export capabilities, including organizational background, product specifications, competitive advantages, market position, target customers, and a micro-environment analysis using SWOT. The report further explores market research, screening, and selection, including PESTLE analysis, marketing strategies, and the marketing mix. It also covers legal considerations, incoterms, logistics management, trade documentation, export risks, financial export transactions, and payment options. The report concludes with a discussion of the company's future prospects, considering the challenges and opportunities in the Australian and international markets. The report highlights the company's innovative product, effective marketing strategies, and financial considerations to assess the company's potential for success in the export market.

Running Head: EXPORT MANAGEMENT
EXPORT MANAGEMENT
Name of the Student:
Name of University:
Author Note:

1EXPORT MANAGEMENT
Executive summary
The Nuraphone Company is highly popular for its creativity and effective marketing strategies.
Although the company belongs to the medium scale industry but it does not affect its market
capitalisation. One of the major factor behind its renowned brand image is the innovative ideas
that carry forwarded the legacy outstandingly. In this aspect, this report tries to figure out the
condition of Nuraphone in Australia. For creating a better understanding the report is going to
take help of the analytical tools like PESTLE and SWOT and for the market approach seeks help
of the marketing mix. Moreover, the financial and legal considerations are also played a
significant role that provide a clear insights of the pros and cons of the organisation. In a
conclusion it can be argued that despite of having a number of issues regarding the growing
inflation rate in Australian and the high competitive market the Nuraphone Company will able to
retain its market due to innovative products and effective marketing strategy.

2EXPORT MANAGEMENT
Table of Contents
1.0 Introduction................................................................................................................................7
2. Export Capability and Readiness.................................................................................................7
2.1 Organisational Background and product specifications........................................................7
2.2 Competitive Advantage.........................................................................................................8
2.3 Market Position......................................................................................................................9
2.4 Target Customers.................................................................................................................10
2.5 Product Specifications.........................................................................................................10
2.6 Market Distribution.............................................................................................................11
2.7 Micro Environment Analysis...............................................................................................11
Strengths................................................................................................................................11
Weaknesses............................................................................................................................11
Opportunities.........................................................................................................................12
Threats...................................................................................................................................12
2.8 Production Capacity.............................................................................................................13
2.9 Staff Resources/ Expertise...................................................................................................14
2.10 Financial Capacity.............................................................................................................14
2.11 Porter’s Value Chain..........................................................................................................14
1. Inbound Logistics..............................................................................................................14
2. Operations..........................................................................................................................14

3EXPORT MANAGEMENT
3. Outbound Logistics............................................................................................................15
4. Marketing and Sales..........................................................................................................15
3.0 Export Market, Research, Screening & Selection...................................................................15
3.1 Export Market analysis........................................................................................................15
3.2 Competitive Situation..........................................................................................................15
3.2.1 UK market....................................................................................................................15
3.2.2. Middle East..................................................................................................................16
3.3 Outline of plans for dealing with restrictions of Entry into Market:...................................16
3.4 Regional Trade Agreements................................................................................................16
3.5 PESTLE analysis.................................................................................................................16
Political..................................................................................................................................16
Economical............................................................................................................................16
Social.....................................................................................................................................16
Technological........................................................................................................................16
Environmental........................................................................................................................16
Legal......................................................................................................................................17
4.0 Marketing Strategy and Marketing mix...................................................................................17
4.1 SMART Sales and Financial Export Objectives.................................................................17
4.2 Product Suitability and product adaptation..........................................................................17
4.3 Language- issues/ solutions.................................................................................................17

4EXPORT MANAGEMENT
4.4 Labelling..............................................................................................................................18
4.5 Point of purchase/ market coverage.....................................................................................18
4.6 Export pricing and costs......................................................................................................18
4.7 Promotional campaigns.......................................................................................................18
4.8 IMC plan..............................................................................................................................18
4.9 Endorsers.............................................................................................................................19
4.10 Exporter/ Importer responsibilities....................................................................................19
5.0 Incoterms.................................................................................................................................19
5.1 Term choice.........................................................................................................................19
5.2 Responsibility of the buyers and sellers..............................................................................19
6.0 Logistics Management.............................................................................................................20
6.1 Organization’s Supply chain mix........................................................................................20
6.2 Transportation mode and carriers........................................................................................20
6.3 Cost composition and timing...............................................................................................21
6.4 Roles, responsibilities and services of chosen freight agents..............................................21
6.5 Cargo insurance...................................................................................................................21
6.6 Terms of delivery.................................................................................................................21
7.0 Trade documentation...............................................................................................................22
7.1 Bill of landing......................................................................................................................22
7.2 Commercial invoice.............................................................................................................22

5EXPORT MANAGEMENT
7.3 Package list..........................................................................................................................23
7.4 Government certificate........................................................................................................23
7.5 Health and dangerous goods certificate...............................................................................23
8.0 Export risks and legal considerations......................................................................................23
8.1 legal risks.............................................................................................................................23
Consumer satisfaction............................................................................................................24
Description of the goods........................................................................................................24
Legal compliance...................................................................................................................24
Sellers responsibilities...........................................................................................................24
Advertisement........................................................................................................................24
Unfair terms...........................................................................................................................25
8.2 Contract terms......................................................................................................................25
8.3 IP protection.........................................................................................................................25
8.4 Insurance..............................................................................................................................25
8.5 Others...................................................................................................................................26
9.0 Financial export transactions and obtaining payment.............................................................26
9.1 Finance requirements...........................................................................................................26
9.2 Payment options...................................................................................................................27
9.3 Currency decision and management....................................................................................27
10. Conclusion...............................................................................................................................27

6EXPORT MANAGEMENT
Reference.......................................................................................................................................29
Appendices....................................................................................................................................33
Appendix 1: Ansoff Matrix.......................................................................................................33
Appendix 2: Market entry barriers............................................................................................34
Appendix 3: Trade Agreement..................................................................................................34
Hereinafter collectively referred to as the Parties......................................................................35

7EXPORT MANAGEMENT
1.0 Introduction
The Nuraphone is considered to a renowned Australian company that is popular for its
headphone products. The best part of this headphones is that it generates some tones known as
Otoacoustic Emission that is based on the tone ranges that are played into the ear. This sound is
about 10,000 times smaller than the sound that went in. As a result of that the person who is
listening music through the headphone can get a better experience in terms of both the quality of
service as well as the clarity. In this regard, it is important for the report to identify all the aspects
regarding the Nuraphone and figure out all the essential parts of the product. As a matter of fact,
the purpose of this report is to get a clear idea regarding the product and its details and also tends
to deal with the legal and risks documentations of the Nuraphone. Moreover, the report also
incorporates a number of marketing mix strategies and PESTLE analysis to understand the
opportunities that the product creates in the Australian market as well as in the international as
well.
2. Export Capability and Readiness
2.1 Organisational Background and product specifications
The Nuraphone is a major product of the Australia based consumer electronic production
organisation. This is a recent organisation established in 2015, with headquarters in Brunswick
and Melbourne of Australia. The chief management of the organisation comprises of Dragan
Petrovic, the CEO of the company and the CTO, Luke Campbell. Nuraphone headphone series is
the chief as well as the pilot product of the company. Receiving initial funding from the Trike as
well as MedTech in the company, the company started developing prototypes including the

8EXPORT MANAGEMENT
proprietary technology based on monitoring and control of otoacoustic emissions. The cochlear
implantations in the device that controls the auto acoustic emissions is the USP of the product
also. The two campaigns of Nuraphone namely the Crowd funding campaign and the venture
campaign helped the company in the days of initial production. The crowd funding campaign
was a major hit and the company was able to gather $100,000 (USD) within a span of 14 hours
(Balabanis & Siamagka, 2017). Later another $20000 USG was gathered from the Indiegogo
campaign in favour of the company.
Slater, who possessed a PhD in Physics worked with the cofounders to develop a pair of
headphones which is destined to provide the best hearing experience to the person who is
wearing them. This was considered as a USP for the product and in fact Park (2016), states that
after review ratings from the TechReady, TechAdvisor, and Pocket-Link and so on, the people
began to believe in the science behind Nuraphone that it could really adjust to the frequency
compatibility of the people’s ears.
2.2 Competitive Advantage
The Nura Company considers that although the big electronic gadget brands like Bose,
AKG, Sony and so on have recently developed highly qualified Bluetooth headphones, hey two
big market hype created by the company can win the competition in their favour. The first factor,
as per Pérez-Belis, Bovea & Ibáñez-Forés (2015), is that the product was launched by fund
allocation from their own crowd funding website KickStarter and pledges worth $3.8million
have been gathered by the company.

9EXPORT MANAGEMENT
This crowd funding campaign have already attracted much more attention of buyers. Besides as
an outcome of crowd funding, the buyers would feel much more connected to the brand, both
psychologically and emotionally.
The second factor is the sensitivity towards minimum and maximum frequency adaptability of
individual’s ears.
Figure 1: The factors of Competitive advantage for Nuraphone
(Created by the author)
2.3 Market Position
In the month of August, a seminar dedicated to headphones was arranged in London. The
Nuraphone won the award for the best technological innovation with an ecological impact. At
present, the market of Nuraphone is developing at 2.7% per quarter. Sony and Sennheiser are
still the biggest names in the Australian market. In terms of product price and modulation
First Competitive
advantage
The crowd funding campaign have already attracted
much more attention of buyers. Besides as an outcome
of crowd funding, the buyers would feel much more
connected to the brand, both psychologically and
emotionally.
Second Crowd
Funding Factor
The second factor is the sensitivity towards minimum
and maximum frequency adaptability of individual’s
ears.

10EXPORT MANAGEMENT
quality, these two brands are upper in competition. A pair of Sony headphone are available in the
Australian market at the price of $350. The brand equity of Nura is also lower than these two. As
per the current table of brand fame, Nura is 17th among the most emerging brands in the Asian
market. However, it is also projected that the rate at which the brand familiarity of Nuraphone is
increasing in the Australia market in the upcoming 5 fiscal years, the sales rate of the product
would increase at 129% higher parity within 3 years (Nuraphone.com, 2018). Analysis of the
marketing strategies implementing the Ansoff Matrix: (refer to appendix 1)
2.4 Target Customers
The target customers for this industry is generally the youth aged between 16 to 35 years.
Electronic accessories and gadgets, according to the analysis of Lee et al. (2016), are mostly
popular among this customer segment. However, Bluetooth headphones are a style component
also. From that consideration, the customers of the leading metropolitan cities are mostly
targetable.
2.5 Product Specifications
The Nuraphone is a wireless head phone that is initially launched in the shades of black
with a closed back transducer input. The headphone also have the active noise cancellation
facility. The general Bluetooth range of the product is 10 metres like any other device. The
frequency range supported by the device is 20 Hz—20 kHz (Tansel, 2017). The driver size for
the inner ear is 15 mm and that for the outer ear is 40 mm. The most important prospect of the
headphone is that the total harmonic distortion is lesser than 1%. Finally the most important sales
driving factor is that the signal to noise ratio is less than 125 decibels.

11EXPORT MANAGEMENT
2.6 Market Distribution
The chief role of market distribution for Nuraphone is played in the Australia market by
the CertaOne as well as Madison Company. Since the Nuraphone is the only product of the
company, the sales channels are simplified. There is also a specialised market sales survey
section of the company. However, so far, the sales have been largely concentrated within zones
like Eastern Australia and South Eastern Australia. The company is trying to promote the sales of
the product in Western Australia through their crowd funding websites. So far as international
distribution channels are concerned, the company have a sales contract with Harvey Norman and
Alibaba (Yang, 2018). About 90% of the sales is accomplished through physical handovers and
rest over online sites.
So far as the market familiarity is concerned, the company have allocated major percentage of
the budget with the production line. The low budget trail makes it necessary for the company to
launch the product through third party vendors in international trade shows. For instance, the
product was recently featured over an online trade show in London. In 2019, the product is listed
to be featured over an online trade show in Dubai as well as in Australia itself.
2.7 Micro Environment Analysis
Strengths
 Product creativity with the advanced auto-acoustic emission control rate
 Innovative market launch through crowd funding
 Market familiarity rate is exceptionally high
Weaknesses
 The brand popularity is competitively low