1.0 Exclusive Summary
The purpose of the international marketing plan is to introduce the MG milk powder to the target market China. This report firstly illustrated the background information of the MG Company and also gave a broad idea about the economic and political environment of the target market. The next part of the report is a more explicit evaluation of the marketing strategies, promotion, product distribution and other related factors. In order to successfully enter the target market and launch the products, MG Company need to carefully manage, operate and design appropriate market strategies.
This essay mainly contains two parts: critical analysis and implementation plan. The critical analysis is a further description of the existing market environment and products information. We defined the mission and the marketing objectives of the company and re-emphasis on the SWOT analysis. Implementation plan is more explicit which describes the market condition, promotion, distribution, pricing, product and other related areas of launching the new business. Finally, we made some suggestion and recommendation on the marketing strategies. This marketing plan is just preliminary and need adjustments when implemented.
Table of Contents
1.0 Exclusive Summary. 1
2.0 Introduction. 3
3.0 International marketing and business overview.. 3
3.1 China’s Economic Data. 4
3.2 Cultural Elements 4
3.3 Expected Competitors 5
4.0 Information Gathering. 6
4.1 Company and product description. 6
4.2 Target market description. 6
4.2.1 Geography. 6
4.2.2 History. 7
4.2.3 Climate. 7
4.2.4 Population. 7
4.2.5 Region. 8
5.0 Critical analysis and strategic development 8
5.1 SWOT analysis 8
5.2 Positioning. 9
5.3 Preliminary marketing plan. 11
5.4 Major marketing problem.. 11
6.0 Recommendation and implementation. 12
6.1 Trends in the industry. 12
6.2 Segmentation. 13
6.2.1 Target Market 13
6.2.2Size of the segments 13
6.2.3 Description of segments 13
6.3 Marketing Mix. 14
6.4 Four Ps 15
6.4.1 Product 15
6.4.2 Price. 16
6.4.3 Place. 18
6.4.4 Promotion. 18
6.5 Product Lifecycle: 19
6.6 Recommendations 20
7.0 Conclusion. 20
As globalization is becoming more and more popular, trades and exchanges are very common between countries and companies. International marketing is simply the application of marketing principles to more than one country. However, there is a crossover between what is commonly expressed as international marketing and global marketing, which is a similar term. At its simplest level, international marketing involves the firm in making one or more marketing mix decisions across national boundaries. At its most complex level, it involves the firm in establishing manufacturing facilities overseas and coordinating marketing strategies across the globe. (Doole and Lowe, 2001) This report is about to present Australia’s best dairy products to a new rising market – China. The following is going to analyze all the market background information and other related criteria. #p#分頁標題#e#
3.0 International marketing and business overviewGlobal business is expanding at a rapid pace, corporations and organizations nowadays actively engage in the global marketing and business. In order to success in global markets and remain competitive, companies must develop, execute and supervise effective global marketing strategies.
Australia is actively engaged in global business. In 2005, Australia’s exports worth $176 billion and imports $194 billion. According to historical reasons, Australia keeps a close relationship with US and European countries. As Asia is growing to become one of the major markets in the world, Australia strengthened its relationship with Asia countries especially China.
In order to successfully launch Murray Goulburn’s dairy products in China, the company needs to have a broad image of the target market. This report explicitly analysis the economic conditions and environment in China.
3.1 China’s Economic Data
Chinese economic has increased rapidly in past 60 years. The GDP of 2008 is about 30.067 trillion RMB, compare with 67.9 billion RMB in the year of 1952, it is 76 times more. The per capita GNI in 2008 is 2,770 dollars. The output of food reached 528.71 million tons in 2008, it increased 3.7 times than 1949. Outputs of major industrial products have doubled. In 2008 compared with 1949, yarn production increased 64.7 times, cloth increased 36.6 times, sugar increased 71.5 times and row coal increased 86.3 times. In addition, China has opened its market for foreign investment enterprises. China’s foreign trade amount in 1956 is 1.13 billion dollars and it is 2.5616 trillion in 2008, it increased 2266 times, average 14.2% raise annual. From 1979 to 2008, the country obtain 852.6 billion foreign investments, it means average 28.4 billion annual. It is claimed that China and India becoming the world’s emerging economic countries, they are reprehensive of the second and fourth largest economies in the whole world. In spite of their correlative low per-capita incomes were only $1,740 and 720 as of 2005, the 4th and 11th largest economies in the world are represented by them at nominal exchange rates. Moreover, the two countries are increasing three times more than the world average. Thus, these two countries provide a potentially useful and rich idea for exploring the social implications of free market capitalism. (Korukonda, 2007, p772).
3.2 Cultural Elements
China is a multi-religious and nation country, the main Chinese religious believers believe in Buddhism, Taoism, Islam, Catholicism and Christianity. Citizens of China can choose and express their own beliefs. In other words, the Chinese government gives each firm and citizen a steady and equal environment. So, the religion does not affect the marketing. The most important thing which we should focus is that Chinese people look after their babies very carefully. The one-child policy was carried out in 1979, which effectively controlled the country’s expanded population in past two decades and has impacted on Chinese family’s mind greatly. The single child is like the emperor in his family. So the whole family will try their best to give babies (especially boys) the best thing, food included. Bad quality of domestic product causes citizens of China prefer to foreign consumer goods. According to Mcewen (2006, p68), consumers' preference for internal products has decreased rapidly in past few years, especially among the affluent, the urban and the young.#p#分頁標題#e#
3.3 Expected Competitors
Expected competitors are domestic dairy companies and other foreign dairy firms. There are many domestic dairy companies in China. The most famous ones are Guang Ming, Meng Niu, Yi Li. Domestic companies can utilize the patriotism of citizens, convenient transport and country policy. These are beneficial to the domestic competitors. Additionally, they know Chinese market very well and have a preponderant channel of distribution. Therefore, they are the strongest competitors. Especially Guang Ming dairy company, it was built many years ago, in 1952, the ex-chairman of China Jiang Zemin was appointed as the factory manager and the brand “Guang Ming” was enrolled during his patriarchate. It is located in the east of the country, Shanghai, the biggest and richest city in China. That leads to most coastal citizens know the dairy brand, some citizens even have drunk Guang Ming milk for several years. The brand “Guang Ming” has impacted on their daily lives deeply. The foreign dairy firms also take parts of Chinese dairy market, such as Nestle(Switzerland), Abbott(USA), Nutrilon(Holland). The huge market is like a big cake, every company want to eat more. They use many kinds of media to introduce their products, such as TV advertisement and newspaper advertisement. Among these craft brothers, Nestle has the most threat. Because Nestle came to Chinese market early, it also has other products, such as coffe and chocolate. There is a interesting problem, if a Chinese consumer like Nestle coffe, he will buy Nestle milk powder instead of any other brand. In some big cities, consumers like this brand and the prices can be accepted.
4.0 Information Gathering
4.1 Company and product description
Murray Goulburn Cooperative is a dairy company which had been established in 1950. It has eight plants located in Victoria, and is the biggest dairy firm in Australia and is the leader of Australia dairy industry. It is the second dairy manufacturing company in the world, Murray Goulburn is one of the largest raw material company in the world, it is the first top firm of futher processing company, exports more than 4 billion US dollars a year. MG occupies the most advanced GMP for producing and perfect ability for researching and developing the dairy product. Australia Quarantine and Examination Service (AQIS) and the Food Safety Center promoted its food safety system and quality. In current, the company occupy more than 30 series and a plenty of products, especially the protein and nutrition research is advanced in the world, and MG’s products are consumed many parts of the world.
4.2 Target market description
Target country is China, which has the most population in the whole world. It is a perfect market for many processed food companies. The annual world dairy consumption per capita is 100 kg, which is much more than that of China. With the living conditions of Chinese citizens are increasing, milk powder consumption market is now becoming expanded and matured gradually. China will ………………………………#p#分頁標題#e#
5.0 Critical analysis and strategic development
5.1 SWOT analysis
(1) MG Cooperative is an Australian dairy company. In Chinese people’s mind Australia is a beautiful country, the air is very clean and the environment pollution is less than China. So, the dairy products are much better than Chinese companies.
(2) MG has eight plants, it means if there are some troubles happened in one of them, it can not affect the whole operation seriously.
(3) MG has already built a multinational factory in Qing Dao of China. It provides familiar market for the cooperative.
(1) MG came to Chinese market late, the market is shared by plenty of companies. The biggest trouble is that some brands have taken up the mind of consumers.
(2) MG’s Chinese pronounciation “Mai Gao” doesn’t sound resounding. Many domestic brands sound very good, such as “Guang Ming”, it means bright.
(3) Milk is not like soft drink, it just attracts most infants and adolescents, most adult men don’t drink milk in daily life.
(1) China has the most population in the world, it means China is a huge and profitable market.
(2) The case of melamine contaminated dairy products. According to Enderwick (2009, pp220) there was a serious quality problem about Chinese domestic dairy industry, some companies add melamine into milk powder. This is an opportunity for GM. The consumers do not trust the domestic dairy product any more. There is a big space face to foreign dairy companies.
(1) Political factor, the relationship between Chian and Australia. If there is a conflict between two countries, many consumers will not choose Australian product.
(2) Competitors decrease the price, that can cause less profit for the company.
(3) The pressure from liquid milk product. Liquid milk occupy few parts of the whole market.
(4) Local distributors depress the price in order to obtain more benifit for themselves.
Positioning is a process for marketers to identity their places in the target markets for its brand and products. Positioning helps the corporation to give a direct perception to the consumers of target market about what service line or products the company may offer. For MG’s milk powder products, this report has positioned on four basic criteria to offer a broad product image to the consumers. These four criteria are quality, service, expertise and convenience. Ø Quality: MG is the biggest dairy firm in Australia and is the leader of Australia diary industry. Being the send dairy manufacturing company in the world, MG is one of the largest raw material companies. http://www.aleyasingroup.com/dissertation_writing/Marketing/2012/0309/1079.html Currently, the company occupy more than 30 series and a plenty of products, especially the protein and nutrition research is advanced in the world, and MG’s products are consumed many parts of the world. With the guarantee of the Australia Quarantine and Examination Service (AQIS) and the Food Safety Center, MG can provide the best quality dairy products to Chinese consumers. Ø Service: In the process to crack the dairy market in China, MG will carefully manage the product quality and after sell service. Different from the local dairy producers, MG couldn’t offer too many client centers. The service of MG products may be not as good as other company. Ø Expertise: Research and development is a important department of MG. MG nutritionals work closely with Australian universities, research organization and bio-technology companies to test and inspect products. MG spent more than A$ 6 million a year to improve equipment and operation, product innovation and other areas. MG owns the most advanced expertise and technology in making dairy products in the world. Ø Convenience: MG will use the supermarkets as its sales distribution. After enter the China market, Chinese consumers can easily buy MG products at big supermarkets or hypermarkets. Unlike local dairy producers, MG will not offer special sales channel or direct delivery service to consumers. Compared with other local company, the convenience of MG of products is lower.#p#分頁標題#e#
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