Australian by Nature plans to come in the US market with its 100 % pure honey by aiming the concern to concern market. This will be done by providing honey to an bing and reputed honey bagger through whom the merchandise will come in the US market. This will take to a decrease in the selling costs at the initial phases and besides understate the hazard of come ining the new market. All this will assist Australian By Nature to increase its demand in the market and thereby increase its production capacity. In short term the company plans to achieve high trade name consciousness and trade name cognition. After working with bing honey baggers for approximately 24 months, the company ‘s trade name will be good established and based upon that it can get down packing the merchandise itself and besides get down passing money on marketing the merchandise.
International Marketing Strategy
Drivers for Australian by Nature ‘s Decision to come in United States
Harmonizing to Stonehouse et Al. “ There are four chief forces of internationalization which are categorised as market, authorities, cost or competitory drivers. But these drivers may change from industry to industry every bit good as market to market. ”
The chief drivers for Australian by Nature ‘s determination to internationalize relate to the market, authorities and cost drivers.
As seen from the analysis in Part A above the drivers from markets fundamentally include client demands, selling channels and other chief states exporting to US. But based on the above geographic analysis peculiarly the topography aspects which show that the bees have contracted diseases in USA will take to a good and in future increased demand of Australian by Nature honey which is 100 % pure and will be a immense success in the USA market.
The United States and Australia have extended investing dealingss by organizing the Australia-United States Free Trade Agreement ( AUSFTA ) . This understanding will take to small fusss for Australian by Nature to get down exporting honey to US.
Traveling further the company will besides confront competition from other states exporting honey in US, but due to its good repute and being an Australian trade name it is ever at an advantage compared to its rivals.
Large Companies which have high fixed costs are more likely to travel planetary, so that these high costs can be offset by increased gross revenues volume as consequence of traveling planetary ; this is because higher gross revenues volume leads to decrease in high fixed costs in bend ensuing in economic systems of graduated table. This is besides a drive factor for Australian by Nature because it will profit from higher gross revenues by internationalizing.
From all the drivers we can reason that United States will be a good state for Australia by Nature to come in and go successful in long term.
Foreign Market Entry Strategy
As per the environmental and internal analysis done in portion A we have selected United States of America as our mark state. Not merely it is an attractive market for all the facets of our determination devising procedure, but besides bring in different assortments of the merchandise in a market flooded with trade names from so many states with China being one of the chief rival.
There are many methods of entry such as exporting, direct gross revenues, franchising, cyberspace, licensing, joint ventures and foreign direct investings. We will establish Australian by Nature honey in US through an Export Distributor. An export distributer is on who will purchase the goods from the Australian manufacturer that is Australian by Nature and will resell the merchandise in the US at a net income. In other words the export distributer will be the exclusive distributer of the merchandise in the state and will provide the goods purchased from Australian by Nature to all the retail merchants, supermarkets, convenience shops etc. The distributer will be managing all the client ailments about the merchandise in the foreign state which US in our study.
The export distributer will merchandise under its ain name and at the same clip keep an on- traveling relation with the exporter. Besides the distributer will hold sale rights in United States.
The chief ground for choosing direct distribution channel for come ining the US market is that it will salvage a batch of selling costs for the company in initial phases of the merchandise because the export distributer will be committed to supply all the merchandise support in the foreign state.
Another advantage of this type of distribution is that the already good established distributer has bing relationships with all the supermarkets, retail merchants and convenience shops and based on this the company can trust on the know-how and acquaintance of the market conditions to achieve the best retail place. In add-on to that making a distribution web in new foreign state is a clip devouring procedure, every bit good as a dearly-won procedure particularly where it is concerned with establishing new merchandises in the foreign markets.
Possible Foreign state issue scheme
As this is our first move to get down operations in international market, we are prepared for a less than enthusiastic market. In instance this happens we are traveling to make more deep market research as to the possible causes of the merchandise failure that may be due to our selling attack, may be the pricing, the distribution channels etc. If after farther attack there is no betterment in the gross revenues of the merchandise in US, we are merely traveling to downmarket our merchandise. Down marketing the merchandise involves shifting the merchandise from high terminal class to a in-between one, may be cut downing the monetary value of the honey. As a consequence of shifting the merchandise will provide to the in-between income group besides and because of which selling costs besides will be reduced because this type of consumer group does n’t demands expensive advertizements to do them believe that our merchandise is alone from others.
But there may be a farther possibility that even after the shifting the merchandise may non be selling good ; in that instance we shall set off our operations wholly from US by merely stoping our contract with the export distributer who was the exclusive distributer of the merchandise in the United States.
International Marketing Program
1. Selling Mix
We will now analyze Australian by Nature ‘s selling mix based on the following seven P ‘s: Merchandise and Service, Place, Promotion, Price, People, Process and Physical Environment.
1. ( A ) People
Supplying a good quality merchandise is of import when the company is come ining the foreign market. The consumers will judge the company ‘s repute based on the quality of the merchandise.
The exceeding expertness, cognition and accomplishments of the people working in the production of the Australian by Nature ‘s will be of important importance for the success of the merchandise in the foreign market. At the same people involved with the export of honey merchandises will be besides really of import for the success of the merchandise. The forces working for the production of the Australian by Nature merchandises are a beginning of competitory advantage. Australian by Nature must guarantee that sufficient forces have been allocated for the increased production as a consequence of its exports to United States. Furthermore they should be provided with up to day of the month preparation so as to manage the increased production or if possible might be new machinery for production.
As the more forces will be required to provide the demands for exports, the company should put in developing them how to efficaciously manage the exports demands.
1. ( B ) Promotion
As this is the first clip that the company will be selling its honey merchandises outside Australia and its induction of entry in a broader United States market, the promotional activities are really of import. This can be done by first constructing the consciousness about the merchandise in the market which can be done through tests and so purchases. Furthermore it is besides of import to set up the trade name personality of our merchandise in the new market.