- Why research is important in identifying international markets
Research in identifying international markets is important as it enables the organization not only to design the right product, but also to employ the most effective marketing strategy for maximum returns.
- Research techniques and tools that can be used in international market research
- Use of a team from multicultural environment and sites is important in ensuring that the research object is understood in the different geographical regions
- Qualitative research techniques
- Videotaping of consumers who are in the process of purchase or consumption can be important in assisting in determination of consumer preferences in an international market context
- Elicitative and projective techniques including collages, analogies, picture completion etc are important aspects that can be used to encourage the respondents in an international set up project their private and subconscious beliefs about the markets
- Technologically assisted techniques such as online interviews, computer assisted telephone interviews or even computer assisted personal interviewing etc.
- Australian Top ten export markets
Republic of Korea
- What is a free trade agreement?
A free trade agreement is an agreement between trade partners which abolishes all the trade tariffs, barriers, embargoes and any other trade restrictions amongst the member states. It’s mainly intended to increase trade among member states.
- With whom does Australia have free trade agreements
- Trade at a Glance P.34
- World trade organization (WTO) is an international body that works towards the harmonization and facilitation of International trade around the world. It ensures fairness in the market at an international level
- What are international commercial terms?
International commercial terms are internationally recognized standard trade terms that are used in sales contracts, mainly to ensure that the parties involved are well informed of their obligations with regard to the sales contract.
It creates clarity as to
- Who is responsible for freight, insurance and taxes and other duties in a sales contract
- The source/origin and destination of goods
- Who is responsible for the goods at each point in the transportation
- Benefits of the trade modernization act
The trade modernization act is beneficial to businesses as it lobbies for increased efficiency in business operations as a result of modernization of business operations.
Smith’s Snack food Company manufactures different types of snacks and it is based in Australia
Personal financial management
Financial and services sector
Economic conditions within the International markets
The economy of the USA is the strongest single economy with citizens having greater purchasing power parity due to large per capture income. Many of the citizens are employed implying constant source of national income. Thus there is a viable market and Australian chips exported to this market will be able to fetch high income.
Canada has a vibrant economy which is growing at a very fast rate. The rate of employment is more than 94% and thus the citizens have stable sources of income. As a result, export of the chips to Canada will be able to fetch high market
The country has also a viable economy with its economy being the 11th largest economy in the world. The rate of employment is also very high and many people have high disposable income. Export of chips to the market will fetch a significant market share which will boost the position of the company.
Existing competitors in the international markets
Ballreich Bros Inc., Barrel O Fun Snack Foods, Bickels Snack Foods Inc. and Better Made Snack Food Company are the leading companies which manufacturer crisps in the US with an estimated market share of 60% of the total market share
Yum Yum Company is the leading company in the manufacture of chips in Canada with an approximate market share of 47% of the total share market in the country
BMAC Food Processing Ltd, Brown Bag Crisps and JLM Global Foods Ltd are the three leading manufacturer of chips in the UK. They have an estimated total market share of 39% of the total market.
The consumption of Crips in the USA is associated with obesity and the company may not be able to capture a significant market share in the US market.
Many citizens in Canada like crisps as opposed to other junk foods since crisps do not have significant health problems as related to other junk foods. There is no negative attitude about the consumption of chips and the company will need to concentrate on this market to capture more market share.
In the UK market culture, the culture encourages consumption of products related to potatoes. The Irish potatoes are very synonymous with the UK market as well as the chips made from these potatoes. The company will also need to concentrate its efforts on this market to ensure they are able to capture more market share and maximize their production.
Other relevant issues
The cost of exporting the products to the three markets will also have to be taken into consideration. This is in consideration to the fact that there will be significant costs involved which will lead to significant increase in the cost of chips in the market in the three countries. The company has therefore take into consideration the ways in which it will minimize its costs of exportation to enable it compete effectively with the local competitors in terms of charging effective pricing.
The health standards will differ significantly in the three countries and thus ten company has to make sure that its manufacturing standards meet all the accepted health standards in the UK, US and the Canadian market.
Average expenditure on this product/service
It’s not easy to identify the average expenditures on this service in the regions identified, although statistics from the various national and regional information sources confirm that it’s well over a half a trillion US dollars annually.
b) How much of the service I through imports and exports
As earlier explained, advances in technology have significantly improved how business is conducted in this industry and therefore, we can confirm that more than 50% of this business is through imports and exports, especially through ecommerce.
C. demographic trends
- Trends in buying pattern
The nature of this business is that it is dependent on the prevailing economic conditions and therefore if the economy of a country or region is doing well, then there is a high likelihood that people will have a higher saving power and therefore higher investment power.
- Attitude towards Australian products or services
As earlier explained, the nature of this service is that it depends on the reputation of the service provider and therefore it’s difficult to determine the attitudes towards the Canadian products per se.
Proctor, T. (2000) Essentials of Marketing research, UK: Financial Times-Prentice Hall
Loudon, D.L. and Della Bitta, A.J. (1993) Consumer Behaviour, 4th Edition, USA: McGraw Hill
Australian Trade at a Glance.2012
Brooks, I and Weatherston, J. (1997) The Business Environment. Challenges and Changes, Prentice Hall.