BSBMKG516 – Profile international markets

ASSESSMENT COVER SHEET

STUDENT ID STUDENT NAME

45468 First Name: TULIO EDGAR

Last Name: DELGADO ORTIZ

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ILSC Business School BSBMKG516 Assessment V6 0518 1

Task 1 - Marketing Case Study

Assessment description and requirements

This assessment provides a short case study of segmentation (found in the appendix) and
questions which relate to them. Read the case study first, then answer the questions in the
spaces found below.

Specifications
You must provide:
 Completed assessment.
Your assessor will be looking for:
 Responses which demonstrate an understanding of the principles and methods of
profiling international markets.
Case Study

Aussie Hay and Feed sells animal feed products. Lucerne (sometimes known as alfalfa) is grown around
the world and is used for feeding animals. Aussie Hay and Feed has developed AussieVac, a new
method of compressing and vacuum packing lucerne hay, which keeps it fresh for more than three
years. The invention has several benefits for the long term storage and use of lucerne hay over
traditional methods of baling and storage.
The benefits include:
 reduced transport costs by 75%
 reduced storage costs by 75%
 dramatically extends storage time in hot, dry weather and hot, humid weather
 retains its visual appeal by remaining green inside the block and on the exterior if a black plastic bag is
used for vacuum packing
 reduces risk to horse owners and breeders of the vagaries of fresh chaff supply
 dramatically reduces the risk to horses of mould in humid weather
 reduces risk to farmers supplying lucerne to Aussie’s business of the vagaries of supply and demand
 lucerne hay itself is a high protein natural feed that is highly suitable for horses that are ‘working’ to keep
them in condition with good muscle mass.

The competition for the new product are:

 traditionally baled lucerne hay, which takes eight times the space and becomes dry and dusty over a
period of a year
 compressed lucerne hay with additives that subject the product to mildew attack
 pelleted compressed lucerne hay, which becomes dry and dusty if not used quickly
 grain feed which is much more expensive but higher in protein content.

Aussie conducted research into export markets by:

 investigating Austrade data on exports of hay, lucerne and other feeds

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  investigating Austrade data on export of live animals
 investigating supply requirements in Japan through an importer of hay and hay products
 investigating the horse racing industry in the Middle East, Japan, Singapore and Hong Kong.

Aussie identified the following facts and figures.

The global export market for hay products in 1997 was reported as being valued at $1.05B, with
the vast majority being exported to Japan and the major suppling country being the US.
Typical importers 1997 values Typical exporters 1997 values
A$'million A$'million
Japan 900 Australia 50
Middle East 40 USA 760
Taiwan 15 Canada 155
Korea 30 Taiwan
Hong Kong 10 Note: Taiwan exports rice straw and imports
Macau 2 high quality fodder for its dairy industry.
Singapore 2
South East Asia 6

Live cattle exports were valued at $600M, consisting of approximately 600,000 cattle requiring 1.3 million tonnes
of fodder.

Exports to Japan needed to be proven to be bio-secure by testing through the Australian Quarantine and
Inspection Service.

Aussie also identified that to be successful in the Japanese market, packaging and labelling needed to be of a
higher standard than he used in sales to Australian horse owners. The packaging he currently uses is black
polypropylene, to cut out light to maintain a fresh green look to the Lucerne when it is opened. The labels are
computer generated with a simple layout and with the minimum information required by regulation printed on a
white label.

Aussie identified the following export segments.

 Dairy industry in South East Asia and Japan.

 Horse racing industry in Japan, Singapore, Hong Kong and Middle East.
 Leisure horse industry.
 Live cattle exports to the Middle East, Malaysia and Indonesia.

Aussie, the owner of Aussie Hay and Feed, identified his market as horse owners and wholesale suppliers of
horse products in Japan and the Middle East. Aussie determined the total market to be worth at least $200M
being 20% of export chaff for horses. Aussie preferred Japan because of its size of market and its proximity to
an Australian time zone.

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 Aussie identified his target segments as:

 owners and trainers of race horses in Japan

 dairy industry in Japan.

Aussie identified the following marketing options.

 Creation of a website to hold:
o case studies
o testimonials from well-known people in the horse industry.
o technical data and reports about the product
o photographic evidence of the storage saving attributes and long lasting qualities.
 editorials and advertisements in horse and dairy magazines in Japan
 direct sales to partner resellers, using samples to familiarise the resellers and customers with the product
 agricultural trade shows in Japan using a partner distributor.

Aussie has met his potential distributor in Australia once, but has been reluctant to travel to Japan. He has
explained to the distributor that he cannot afford the time away from the farm every time he received an
invitation. Whilst this was partly true it is also because of the cost to his start-up business.
Aussie positioned his product as ‘Long-life chaff’ with a premium pricing of 30% above competitive products.
Aussie had production capacity to sell 300 tonnes of product before needing to expand his production.

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Answer the following questions about the Case Study. Click in the space provided and type
your answer.

1. What international markets were considered by Aussie?

Aussie Hay and Feed considered the following markets:

-Japan
-Middle East

2. What criteria did Aussie use to determine the suitability of Japan as an international
market for AussieVac products?

Aussie Hay and Feed prefered Japan as an international market due to the
proximity to Australia and its time zone. Also, he looked the size of the market,
and studying it he could determine the different opportunities and chances to
penetrate it.
3. What criteria did he not use?

Looking the case study it's easy to determine that Aussie made some mistakes
that he must avoid it, specially on the criteria that he chose to determine the
market, some of ones that he didn't take into account were the followings:
-Business culture
-Regulations
4. What mayrates
-Exchange haveand the impact of Aussie's choice of criteria on his marketing plan?
beentaxes
-Exporting processes
The
-Costimpact on his maketing plan will be negative, I mean, his plan won't be
of suplies
successful cause he just took into accoun the geographic factor about his
decision and an excellent marketing plan requires at least PESTL and SWOT
analysis, plus all the logistic processes that a exporting plan requires too.
5. Was Aussie ready to market his products in Japan?

Of course no, from my point of view, he's not ready to face a market like Japan.
Low budget, low production level and lack of time are not the only problems for
him. Also, he doesn't understand the culture from Japan at all; sometimes
japanese people prefer to buy products from their country than other countries
even if is more expensive. He doesn't have a consumer profile and he's not
6. In what way did he demonstrate readiness?
willing to travel to Japam, this is a big problem if he really want to sell the product
there. Not to mention
He demonstrated that theincompany's
readiness market
some aspects suchresearch
as: is really poor too.
-Product knowledge (Know How)
-Add value to offer to a new market (High Tech)
-Market segmentation (Target Market and Customer Profile)
-Business forecasting (Japan as a market full of opportunities)

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 7. Were there any other activites Aussie could have undertaken, or information he could have
sourced to help him to be more ready?
He could do many things to improve his readiness.
First at all, he could research for more information in Austrade, even he could
contact some japanese institutions to get information about their culture and
economy; Secondly, he could do some surveys about his product to see the
possible impact in the market; thirdly, he should stablish and create some
8.strategic andAussie’s
What was strong positioning
networkings with all the stokeholder around his business
strategy?
such as importers, supliers, sellers, customers, and so on.
Premium
Finally, helong life product.
should start his marketing and exporting plan with a SWOT and
PESTEL analysis to get a whole diagnostic around his business and the
enough information about his target market.

9. What additional data would have been helpful to prioritise Aussie’s marketing options
for the Japanese market?

To prioritise the marketing options he could have provided some additional

information about his product like the benefits and importance of this product to
the food for the horse; besides, he should do a complete analysis of his
company and market as I mentioned it before; finally, I'd recommend to him to
do a sophisticated searching about the competitors, importers and exporters to
analyse
10. and determine
What issues was Aussiehow the
likely tomarket works
encounter in Japan.
culturally with his current plan?
The Japanese culture is totally different from the Australian one, so, some
issues that Aussie could face due to his lack of preparation are:
-Language misunderstandins
-Wrong behaviour in business meetings
-Rejection or problem to stablish new networkings
-Culture
11. shock in strategy
What targeting some aspects likeuse?
did Aussie habits, food and traditions

Concentrated promotional activities such as:

-Creation os a website
-Advertisements in horse and dairy magazines in Japan
-Direc sales using samples to familiarise the customers with the product
-Agricultural trade shows in Japan using a parther distributor
12. If you were CEO of Aussie what actions would you take next?

I'll do the PESTL and SWOT analysis to knowthe fesiability of the market,
besides, I'll commplete it with the following activites:

-Getting more information through surveys, government institutions, and

websites to complete the knowledge enough to get by
-Creating new networkings with previous exporters which can advise me
-Going to Japan to improve our relationship with our main stockholders

ILSC Business School BSBMKG516 Assessment V6 0518 6

Task 2 - Consumer/ Customer Profile

Instructions
Prepare a consumer/ customer profile report (750 Words) using the case study information and
your responses to questions 1 – 12 as follows:

Steps
Follow these five (5) simple steps to learn more about your existing customers, in order to find
more customers like them.

1. Describe Your Customers

Understand who your ideal customer is and what similarities they have. Define your
customers with the following criteria:

 Demographics – their age, gender, income, etc.

 Psychographics – their personality type, preferences, etc.
 Behaviour – their similar likes and dislikes, sports, hobbies, etc.

You should also note characteristics of your ideal businesses to work with, including:

 Number of employees
 Revenue
 Geographic scope
 Type of business
 Decision-making
 Budget.

2. Locate Your Customers

Find the places your customers are attracted to, whether a physical location or a cyber
space where they gather.

 Where do they hang out?

 What do they read? Both online and offline?
 What do they search for online?

ILSC Business School BSBMKG516 Assessment V6 0518 7

 3. Understand Their Purchasing Process

Review the needs and benefits that make your customers purchase your product or service.

 Where do they begin their research?

 What is their problem or need?
 What are the benefits to finding a solution?
 Do they make purchases by impulse?
 Do they seek out referrals?
 Will they need approval by a committee before making a purchase?

4. Connect with Current Customers

Consider your current customers to gain additional insight into what made them select your
business over others. Conduct interviews, formally or informally, and ask them:

 How did you originally find our company before contacting us?
 Why did you originally buy from our company?
 Why do you continue to buy from our company?
 What do we do that others don’t?

5. Create Client Profiles (Personas)

Create profiles that describe specific segments of your current clients. Ensure that the
profiles are tangible, so that you can envision this person and what would motivate them to
find your business.

 Describe your clients in written profiles, called personas

 Create a specific persona for each identifiable client group and name them
 Include images of ideal clients, either real or a hypothetical individual

Completing these five simple steps will give you a good idea of the type of customers your
business should be targeting.

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Specifications

Your assessor will be looking for:

 The use of appropriate suitability criteria.
 The use of appropriate sources of information.
 Selecting the market in accordance with the criteria.
 Identification of segments within the market which were useful.
 Defining the target market in terms of prospective users of a product or service.
 Identification of national and international regulatory issues and appropriate planning
responses.
 Identifying strategic marketing options and selecting appropriate targeting strategies.
 The use of segment descriptors to describe the target market.
 The use demographic and or psychographic descriptors in the consumer profile.
 Identifying believable position strategies relative to competitor positioning for the
product or service.
 Assessment of and response to cultural issues in product use, language, colour and sales
approach.

The Consumer/Customer Profile is required to be approximately 750 words

long/word count.

You must use a report format.

Please note: ILSC uses third party software to detect plagiarism

Upload your report with this completed assessment on Moodle.

ILSC Business School BSBMKG516 Assessment V6 0518 9