Lonsdale Institute Assessment Task: BSB60215 Advanced Diploma of Business

Lonsdale Institute PTY LTD
Assessment Task
BSB60215 Advanced Diploma of Business
BSBMKG606 Evaluate international marketing opportunities
BSBMKG605 Manage international marketing programs
BSBMKG603 Manage the marketing process

Due Date
Assessment Assessment
1 Project Due Date Submit all
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Assessment Conditions
This is a combined unit assessment that may be worked on in study time and as homework.
Assessment presentation should be completed in a manner that is appropriate to professional business reporting.
All sections and requirements of the assessment task must be included.
Feedback may be sought prior to submission.
Where necessary include forms, pictures, charts etc. may be added as attachments
It is strongly recommended the submission exceed 20 pages to sufficiently address the criteria.
Student Details
Student Name: Belen Quezada Student ID: LON000075R
Group members:
David Arias LON000059T

Caio Munhoz LON00004969
Luciano Brito LON00004Z9
Elena Morreale LON000093U
Re-submissions
If you receive NYC for your assessment you must make the necessary adjustments and re-submit. Please rename
your file with RESUB1 /RESUB2 etc. It is important to do this to distinguish between the old file and the new one with
the adjustments
Declaration of Authenticity
The above named student, confirm that by submitting, or causing the attached assignment/s to be submitted, to Lonsdale Institute Pty
Ltd, I have not plagiarised any other person’s work in this assignment and except where appropriately acknowledged, this assi gnment
is my own work, has been expressed in my own words, and has not previously been submitted for assessment. I do understand and
accept the consequences of academic misconduct according to Lonsdale’s Policies and Procedures.
Scenario
TA102 FO Assessment Task Page 1 of 32

TA102 PP Assessment Management (SNR1.8) (ESOS 14.2) V5 3/17
Lonsdale Institute Pty Ltd
Provider ID 21915 CRICOS Code 02836F
Assessment Task
Make an evaluation of international marketing events and opportunities, comment on current events that
are affecting the global market
Create a proposal to develop an export or import business between Australia and another country.
Outline a strategy to manage and evaluate the international marketing programme.
Use the bold and underlined type as your sub-headings to keep you on track
Assessment Task
SECTION A: International Market Evaluation
The evaluation of the international market and the opportunities and threats it poses should contain the
following:
o A global market review including relevant international trade patterns, opportunities to enter the
market in terms of likely contribution to the business and the impacts of free trade or protectionist
arrangements and international trade policies and agreements.
o An analysis and assessment of the international business and electronic commerce market
factors and their impact on international marketing opportunities including detail on market trends
and developments relative to the business with focus on identification of any new and emerging
markets and what opportunities there may be to enter, shape or influence these in terms of their fit
with the business goals and direction, and their likely contribution to the business
o A risk and impact analysis of the potential market including factors such as political and
financial stability, acceptability of legal and regulatory requirements, and trade barriers. Detail the
relationship of the risk factors to the international business cycles in terms of economic conditions.
GLOBAL MARKET REVIEW
Global marketing is defined as the process of adjusting the marketing strategies of your company to
adapt to the conditions of other countries. Of course, global marketing is more than selling your
product or service globally. It is the full process of planning, creating, positioning, and promoting your
products in a global market.
Big businesses usually have offices abroad for countries they market to. Currently, with the
proliferation of the internet, even small businesses can reach consumers anywhere in the world.
There are many benefits of global marketing, when it is done right. First, it can improve the
effectiveness of your product or service. Second, you are able to have a strong competitive
advantage. Third, you increase consumer awareness of your brand and product or service; through
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the internet, consumers can keep track of your progress in the world. Finally, global marketing can
reduce your costs and increase your savings. In focusing on other markets, you can attain
economies of scale and range by standardizing your processes – not to mention the savings that
you get when you leverage the internet.
A global marketing strategy almost always consists of several things: uniform brand names, identical
packaging, similar products, standardized advertising messages, synchronized pricing, coordinated
product launches; and harmonious sales campaigns.
The most well known global marketing strategies used by companies expanding internationally
consists in creating a strong brand culture and market as if there were no borders. Due to the
proliferation of digital platforms, brands cannot always adopt different strategies per country. In a
way, due to the internet, companies have to adopt a marketing approach that is more or less unified.
Because of improved transportation and communication opportunities today, trade is now more
practical. Thus, consumers and businesses now have access to the very best products from many
different countries. Increasingly rapid technology lifecycles also increases the competition among
countries as to who can produce the newest in technology. In part to accommodate these realities,
countries in the last several decades have taken increasing steps to promote global trade through
agreements such as the General Agreement on Tariffs and Trade, and trade organizations such as
the World Trade Organization (WTO), North American Free Trade Agreement (NAFTA), and the
European Union (EU).
All of the above are different agreement between two or more nations to reduce barriers to imports
and exports among them. Under a free trade policy, goods and services can be bought and sold
across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to
inhibit their exchange. In principle, free trade on the international level is no different from trade
between neighbors, towns, or states. However, it allows businesses in each country to focus on
producing and selling the goods that best use their resources while other businesses import goods
that are scarce or unavailable domestically. That mix of local production and foreign trade allows
economies to experience faster growth while better meeting the needs of its consumers
There are a lot of benefits on free trade agreements. One of the main ones is the contribution to
greater economic activity, trade, investment and job creation which delivers opportunities for big and
small businesses within the involved countries. Free trade agreements don't just reduce and
eliminate tariffs. Thinning the lines between countries helps the flow of goods and services,
encourage investment, and improve the rules affecting such issues as intellectual property, e-
commerce and government procurement.
In Australia free trade agreements help obtain more benefits from foreign investment, promote
regional economic integration, contribute to the economic growth of less-developed economies and
build shared approaches to trade and investment between Australia and trading partners.

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Free trade agreements can continue to provide additional benefits to Australia and trading partners
over time, including via in-built agendas that encourage ongoing domestic reform and trade
liberalisation.
As per Australian Government website, (https://dfat.gov.au/trade/about-ftas/Pages/about-free-trade-

agreements.aspx), FTAs (Free Trade Agreement) are a vital part of Australia’s continued economic
growth. FTAs are treaties between two or more countries designed to reduce or eliminate certain
barriers to trade and investment, and to facilitate stronger trade and commercial ties between
participating countries.
INTERNATIONAL BUSINESS AND E- COMMERCE
According to Market Business News (2020), e-commerce is a type of business model that focuses
on doing commercial transactions through electronic networks such as the Internet.. Any business
can operate using ecommerce platforms, all they need is the necessary technology to provide the
service. As one of today's most profitable industries, e-commerce has shown rapid growth in recent
years and it has a promising future in the international market. It does not require a physical location
and it needs few employees. It means minimal cost to keep a business running once there is a
website integrated with payment solutions.
E-commerce provides a variety of possibilities to purchase products, hire services and carry out
financial transactions by different resources such as computers, tablets and smartphones.
These are the type of transactions that E-commerce provides:

● Business to Business (B2B): Transactions carry out from one business to another business.
● Business to Consumer (B2C): Transactions carry out from one business straight to consumers.
● Consumer to Consumer (C2C): Transactions between consumers
● Government to Business (G2B): Transactions in which the Government pays a business
● Business to Government (B2G): Transactions in which a business pay the government
● Consumer to Government (G2C): Transaction in which an individual pay the government
Online shopping, Internet Banking and Electronic payments, are a clear example of what and e-
commerce stands for. The Amazon sales from 2005 to 2019 is a good example to highlight the
growth in its sales following the ecommerce trends as shown in the chart below.

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Source: https://www.digitalcommerce360.com
Even though we are very familiar with the advantages of e- commerce like fame and reach new
markets, fast test results, less efforts and predictable costs. It’s also important to remember some
disadvantage that this might bring: customer data belongs to the marketplace, less control over your
own brand experience, dependence on the marketplace in terms of design and service, customer
expectations must be served in line with the marketplace: Service inquiries, delivery times, returns
and adaptation of interfaces and preparation of product data according to marketplace specifications.
Organizations have being changing how their business are carry out. Through new technologies and
resources according to e-commerce trends companies adopt different business strategy to take
opportunities and face competitiveness in the increasingly ecommerce market.
Entering in emerging markets such as green consumerism is a great opportunity within the today’s
e-commerce market. Being environment-friendly is seen to influence online sales once many
consumers admitting to being influenced by environmental concerns when deciding on a purchase.
The renewed focus on environmental sustainability is a clear sign that online sellers must step up
by observing environment-friendly practices. Companies can do this by making sure that a greener
online selling environment is established by sourcing products only from fair-trade organizations.
Another thing driving green consumerism is the emergence of Millennials as a robust buyer group.
Members of this generation are keen on demanding environment-friendly products. This demand for
green products is steering ecommerce companies to adopt environmentally sound practices.
Social media is no longer a limited channel that connects people. It has evolved as a powerful
marketing tool to expand their target audiences. Platforms like Instagram and Facebook have been
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equipped with “buy buttons,” which allow retailers to sell through them. Online stores have also been
establishing links with social media platforms, enabling customers to make purchases through the
latter. But more importantly, social media has become a channel by which brands can receive
optimal exposure that results in more people becoming aware of a product or service. And social
media platforms provide interaction with customers that influence shopping behaviour as shown
below.
Source: https://financesonline.com/ecommerce-trends/
Never before concepts such as green consumerism and social media platforms had so important
role in e-commerce. In order to be successful in e-commerce market, companies have to understand
the market trends not only to improve their sale but to remain their business in an increasingly
competitiveness.
RISK AND IMPACT ANALYSIS
Risk and impact analysis is a critical part of analysing the potential market because it collects
relevant data and describes the possible risks of the business plan and works to develop strategies
to minimize risks in case of emergencies and accidents such as a failure of suppliers or man-made
disasters. For example, American Cigarette companies such as R. J. Reynolds and Philip Morris are
challenged by the trends within the United States, Europe, and Canada. Particularly, the use of
tobacco is passed restricting smoking in public areas and restaurants, high taxation on smoking
continues, and the change in society’s views on smoking on the decline as laws. Therefore, cigarette
producers are attempting to upturn their operations in some countries where smoking remains
advantageous over time. Furthermore, they have introduced e-cigarettes to retain customers and
remain money-making.
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Acceptability of political and financial stability
There have been considerable changes in the political stability of emerging market economies, with
the business environment and economic growth in the past decades. For example, some countries,
such as Indonesia and the Philippines, have had substantial developments, whereas other countries
like Ukraine has political instability that has been increased with protests and conflicts, according to
The World Bank’s Political stability and Absence of Violence index in 2017, at 182nd out of 195
countries. On the other hand, political stability has huge impacts on investor and consumer
confidence in an economic way because a stable setting has maintained favourable business
environments for firms. In Canada, for instance, it has been ranked 20th out of 195 countries in 2017.
Some countries like the UAE, Chile, Hungary and Poland have been enjoying political stability with
good governance facilities reforms and investments.
There are some main factors of instability that affect to the international market, including Trade
disputes, Animosity targeted toward specific countries, Extreme nationalism, Changes in ruling
political parties and Some forms of government seem to be inherently unstable.
The possible political risks when doing business in an international way would be plenty such as
confiscation, expropriation and Domestication, Economic risks associated with the political
environment (exchange controls, local-content laws, import restrictions, tax controls, price controls,
labour problems, Political Sanctions (boycotting trade altogether or on specific products by one
country to another), Political and Social Activist and Nongovernmental Organization, Violence,
Terrorism and War and, Cyberterrorism and Cybercrime.
The marketer must predict risks and engage in business ventures that may have the benefit to the
business in political conditions. To decrease risk, some practices have to be done including licensing
the products/services, the political bargaining, forming joint-ventures or expanding base of
investment.
Secondly, the economy of global has been experiencing growth which has reduced some financial
stability risks but may with time promote others. Recently, low-interest rates and steady growth have
led to high asset prices and low benefit for risk in a variety of markets and have supported
households and corporations in a range of countries in order to increase debt. One of the great
examples could be the Chinese financial system that has been a priority for the Chinese authorities
with regulatory reforms behind strong support of politics. Because economic growth has increased
that has been brought risks to emerging market economies (EMEs).
Financial risks in business environment refer to economic considerations such as conditions,

policies, property rights protections and exchange rates that have negative impacts on the processes
of business in the country.
● Unsustainable asset prices

● Indebtedness
● The global financial system
● Limited firepower
● Technological disruption
● Politics and protectionism
Here is the example that Hyundai and Kia are the fifth-largest auto companies in the world. According
to the Korean Herald, there had been weak overall market condition with Hyundai Motor Co. in 2013,
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whereas Kia Motors Corp. tended to widen their existence and increase the market on the continent.
Their success was based on design, product range, quality and warranty of Kia. If interest and
inflation rates were to the upturn, it would be more problematic for the buyer to obtain new Kias. If
the currency exchange rates were to change that had negative effects on the euro, it would be more
expensive for the consumers in Europe.
Additionally, economic sanctions have appeared as a foreign policy tool since the 1990s and have
become one of the critical parts of the political landscape because the US, Europe and other
developed economies have employed it on other nations more than 500 times to have massive
power on the global stage without military interventions. Sanctions seem to be diverse and ambitious
such as nuclear non-proliferation or the promotion of fundamental human rights behind the politics
that is often intended to peacefully serve to military action.
Legal environment
International law
● FCN (Friendship, Commerce and Navigation) and Tax Treaties- it is concerned with
giving protection of trading rights and avoiding double taxation
● IMF and GATT- it is concerned with member nations international trade restrictions
and dumping
● UNCITRAL (UN)- used to provide a uniform commercial code, particularly,
international sales and payments, commercial arbitration and shipping legislation
● ISO (International Standards Organization)-used to work on uniform standards
working with ILO, WHO, etc.
Government policies and laws vary from country to country and doing business abroad mean that
the government may have a greater level of involvement than what you are used to in domestic
business. Overall, the primary marketing objective is to develop a plan that will be enhanced or at
least not negatively affected by the political and legal environments. For example, any organizations
that export or import the products/ service into Australia, they must be aware of the obligations under
Australian law. Australian laws use provisions of the BIosecurity Act 2015, Importer Food Control
Act 1992, Export Control Act 1982, or Illegal Logging Prohibition Act 2012. Australia has six Free
Trade Agreements (FTAs) with other countries which contain legally binding commitments by each
member to access their markets of goods and services as well as investment. Furthermore, they
have commitments under WTO on tariffs and quotas, export subsidies and domestic support for
agricultural products.
The political and legal factors can also affect the management of human resources in international
markets. The regulations enforced by the legal system of a particular country can greatly affect
human resource management. The system can also dictate human resources requirements such as
hiring and firing, pay compensation, training, and layoffs. The legal factor relates to the matter of
what constitutes authentic behaviour. For instance, the U.S fights against discrimination in the
workplace while in some economies, the employees may have a direct influence on the significant
decisions affecting them which include new strategies that would directly affect hours, transfers,
payment, and hiring.
Implications of Trade Barriers on International Markets
Trade barriers are usually introduced restrictions by governments on international trade, they include
tariffs, quotas, exchange rates, import and export licenses, subsidies and embargo among others.
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Tariffs increase the prices of goods and services, leading to a decline in the demand and thus
shielding domestic producers from international competition. Most countries place higher tariffs on
products considered as trade-sensitive. The most common tariff used is the ad valorem, which is
levied on a good based on a percentage of that good’s value. For instance, a 10 per cent ad valorem
tariff can be imposed on imported goods. This will be reflected in a 10 per cent rise on the final value
of the goods imported. According to Oskooee (2001), the appreciation of a country’s exchange rate
directly affects international trade as it can be adapted to increase international competitiveness and
to enhance trade balance. In contrast, the depreciation of the exchange rate triggers a rise in exports
by making exports fairly cheaper, and daunt imports by making them more expensive, thus
enhancing the trade balance.
The barriers can take NOn-tariff barriers to trade that causes internationally traded goods and
services to be allocated to reduce potential real-world income, including Import licenses, Export
licenses, Import quotas, Subsidies, Voluntary Export Restraints, Local content requirements,
Embargo, Currency devaluation, and Trade restrictions.
International business cycles
The world economy experiences stronger and weaker periods of economic growth just like individual
economies. This ebb and flow of world economic growth are referred to as the international business
cycle, which can be described as the changes in the level of economic activities in the global
economy over time. Typical business cycles include expansion, peak, contraction, and recovery.
During the expansion phase, businesses usually grow, and this leads to the creation of more jobs.
The effect is a decline in the unemployment rate. If an economy grows at a relatively fast pace, it
may put upward pressure on the general prices of goods and services, causing inflation. A rise in
inflation may suggest that too much currency circulation in an economy, which depreciates the value
of a currency. In contrast, economic recession refers to a period of economic slowdown associated
with illiquidity, unemployment, and low output. It is characterized by its length, abnormal rise in
unemployment, credit contraction, decline in output and investment, bankruptcies, reduced amounts
of trade and commerce, and a highly volatile relative currency value fluctuations, financial crises and
devaluations. For instance, the global financial crisis led to a global unemployment crisis resulting in
millions of redundancies. In the US for example, over 2.5 million were, and according to the Statistics

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Canada report, the unemployment increased from 0.6% to 7.2% in January 2009 marking the highest
level of job loss in a number of decades.
REFERENCES “SECTION A”:
https://dfat.gov.au/trade/about-ftas/Pages/the-benefits-of-free-trade-agreements.aspx
https://www.cleverism.com/global-marketing-strategies/
https://www.consumerpsychologist.com/international_marketing.html
https://www.ncbi.nlm.nih.gov/books/NBK294306/
https://www.theglobaleconomy.com/rankings/wb_political_stability/
https://www.rba.gov.au/publications/fsr/2018/apr/global-financial-environment.html
https://www.agriculture.gov.au/biosecurity/legislation/compliance/laws-role
https://www.austrade.gov.au/International/Invest/Guide-to-investing/Running-a-
business/Understanding-Australian-business-regulation/Australian-export-and-import-laws
https://www.investopedia.com/articles/economics/08/tariff-trade-barrier-basics.asp
https://economictimes.indiatimes.com/industry/services/retail/what-to-expect-from-ecommerce-in-
emerging-markets-by-2022/articleshow/66101479.cm
https://www.investopedia.com/terms/f/free-trade.asp
https://www.investopedia.com/terms/e/ecommerce.asp
https://marketbusinessnews.com/financial-glossary/e-commerce/
https://study.com/academy/lesson/internet-and-global-marketing-ecommerce-on-an-international-
scale.html
https://financesonline.com/ecommerce-trends/
https://www.digitalcommerce360.com/2019/12/26/2019-ecommerce-in-review-top-10-data-trends-
in-charts/
SECTION B: Marketing International Management Strategy
Select a viable international marketing opportunity and propose a strategy to manage the
international marketing of the company; include the following subdivisions and information in your
proposal:
Objectives and Risk Management
Present the marketing objectives and show the following:

o how they are consistent with the organisation's capabilities and resources and strategic
direction
o the nature and extent of what is to be achieved in the international market
o related key performance indicators by product, service, country or international grouping
Develop a risk management strategy to manage contingencies and show how you would ensure
that the marketing objectives would be met.
Approach and operational structure
TA102 FO Assessment Task Page 10 of

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Present your research into global or customised approaches for promotion of products or services
and offer the marketing approach you have selected that meets marketing objectives, international
market conditions and consumer preferences.
Present your research on options for operational marketing structures, ranking them in terms of
their strengths and weaknesses in servicing international markets and provide detail on the
structure that you have selected that is compatible with the business culture and consumer
preferences and best fits the international market and the organisation’s product or service.
Performance Management
Staff: Provide an outline of agreed roles, responsibilities and accountabilities of staff and
contractors involved in all elements of marketing effort. Provide a plan for mentoring, coaching and
providing feedback to support individuals and teams to achieve the agreed objectives and to use
resources to the required standard, and a system to identify individual and team performance, and
a method to instigate corrective action promptly to safeguard marketing outcomes
Communication: Present a strategy to address the various communication needs involved in the
marketing strategy including the following:
o Providing information on the international marketing objectives across the organisation in a
way that it is suited to culture, customs, levels of knowledge, experience and needs of
personnel.
o ensuring that the personnel responsible for each element of marketing mix work together to
meet organisation's marketing objectives
Marketing Outcomes: Explain how you propose to manage the integration of marketing,
promotional and sales activities in accordance with international marketing objectives and ensure
that the marketing efforts are directed towards areas of greatest potential for the organisation
OUR CASE: JUAN VALDEZ COFFEE IS COMING TO AUSTRALIA
1. INTRODUCCION OF THE COMPANY
The Juan Valdez character was created in 1959 to position Colombian coffee globally, particularly
in the United States. It was re-launched in 2002 and opened its doors as the first Juan Valdez café
at El Dorado International Airport in Bogota. This was the beginning of a process that intended to
introduce the company more and more people to premium Colombian coffee. After 2 years, in 2004,
Juan Valdez opened their first international stores in Washington D.C. In their ongoing efforts to
bring the best premium Colombian coffee to the world, they created their own line of packaged
coffees. These coffees run the gamut from strong coffees, to balanced coffees, to coffee with flavour
profiles that will satisfy even the most demanding palates. Juan Valdez Cafe is continuing with the
process of international expansion, bringing their packaged coffee to Europe and Asia. Nowadays
they also offer e-commerce in China, the United States and Germany. Over the years, Juan Valdez
Cafe has formed alliances with a number of airlines, hotels and other businesses. Today, the Juan

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Assessment Task
Valdez Cafe brand is proudly executing that mission and can be

found in hundreds of coffee shops and retailers in 22 countries.
Juan Valdez mission is to captivate the world with Premium

Colombian coffee while generating value to Colombian coffee
growers.
Juan Valdez goals:
● Position Juan Valdez as the Colombian premium coffee

brand in its current and potential markets.
● Strengthen business models generating value for
shareholders in a sustainable way.
● Build and consolidate an organizational culture oriented to service and innovation.
● Generate satisfaction to our customers around differentiated products, environment and
services.
● Guarantee the fulfillment of Juan Valdez's promise of value in international markets.
2. BACKGROUND: Australia and Colombia
Colombia's impressive economic performance over the past decade has caught the attention of
Australia and other foreign investors. Colombia is one of the countries with greater economic stability
in the region. In the past five years, the economy grew by an average 4.8 per cent. The country's
middle class has been increasing consistently from about 30 per cent of the population in 2014 to
an expected 37 per cent in 2020 and 46 per cent in 2025 (Source: Procolombia, Why Colombia
2016).
Colombia boasts strong macroeconomic fundamentals, an environment conducive to business and

a proactive approach to economic liberalisation, all of which make it a prime target for Australia’s
expanding engagement with Latin America.
Australia and Colombia are both members of the Cairns Group, where they work together to pursue
free and fair agricultural trade. Both countries also participate in the World Trade Organisation’s
Trade in Services Agreement negotiations.
Australia is a country in the Southern Hemisphere comprising the mainland of the Australian
continent, the island of Tasmania and numerous smaller islands in the Indian and Pacific Oceans.
Neighbouring countries include Indonesia, East Timor and Papua New Guinea to the north, the
Solomon Islands, Vanuatu and New Caledonia to the northeast and New Zealand to the southeast.
Before any decision regarding making business with Australia, we will do a PESTLE analysis:

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Assessment Task
POLITICAL Australia is an independent nation that belongs to the Commonwealth, and recognises
the British Monarch as its sovereign. As such, Queen Elizabeth II is the Head of State.
She is represented in Australia by a Governor General who has a symbolic function
(they are appointed by her on the recommendation of the Prime Minister). The Prime
Minister is the head of the Government. The Prime Minister runs state business and
appoints the Cabinet. The Prime Minister is the leader of the party that wins the
majority of seats in the House of Representatives at the General Election.
Legislative Power
The parliament is bicameral and composed of the Senate with 76 members and the
House of Representatives with 150 members. Senators are elected for a six- or
three-year term, and the members of the House of Representatives for a minimum
three-year term. The Prime Minister and the Cabinet are responsible for parliament, of
which they must be elected members.
Prime Minister Malcolm Turnbull won the latest elections by a narrow margin and had
to make concessions in order to satisfy the Conservative Party - a member of the ruling
coalition – and also had to mitigate his liberal agenda. The Liberal-National coalition
won two by-elections in December 2017, restoring its one-seat majority in the lower
house.
Source: Date of access 29/01/2020

https://santandertrade.com/en/portal/analyse-markets/australia/economic-
political-outline
ECONOMICAL The Australian economy experienced 26 years of uninterrupted economic growth, and
it was the only country of the OECD that did not enter into recession during the financial
crisis, holding one of the highest growth rates of the developed world and being the
world’s 13th largest economy. In 2018, Australia’s GDP growth amounted to 3.2%.
The economy continues to be driven by business and government spending, while
households and the consumer sector struggle amid low wages growth (generally,
consumer spending represents almost 60% of the economy).
The country also benefits from large-scale exports of agricultural products and a
vigorous financial sector. For 2019 and 2020, the Australian Treasury foresees a real
GDP growth of 2.8% and 2.7%, as it expects household consumption to rebound
following a continued strengthening in the country’s labour market.
In 2018, the inflation rate in Australia was around 2.2%, a rate that is expected to grow
to 2.3% in 2019 and 2.5% in 2020. Current government balance shows a moderate
deficit (-1.2% of GDP). An increase in commodity prices helped to cushion the
widening of the deficit and keep public debt levels moderate, with gross government
debt reaching 40.5% of GDP in 2018. The Government is seeking to increase national
appeal relative to its Asian competition in international trade. At the same time, to boost
the economy, Australia is increasing its economic integration with the Asia-Pacific
region - especially China - and Europe, with which it has signed trade agreements
while maintaining preferential relations with the United States.

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https://santandertrade.com/en/portal/analyse-markets/australia/economic-
political-outline
SOCIAL Australia has a smaller population than most other countries. As of 2018, it’s nearly 23
million. The average life expectancy differs by men and women; men average around
80 years and women 84 years. Australia is multicultural and multiracial. Despite having
a mass immigration policy adopted back in World War II, the discussion of refugees
and immigration is a touchy topic for citizens.
There are three social classes in Australia: the working, middle, and upper class. What
separates these classes? This is debatable. The upper class is typically 5-10 percent
with property, capital, and ownership being their main sources of income. The middle
class is the people who don’t have manual jobs. And more than 20 percent of the
population identify as manual workers (the working class).
The upper class has expensive homes, cars, and clothes. However, the middle class
can easily have these same objects. It may all just be mimicry though. For the middle
class, this doesn’t hurt them much, but the working class can become indebted by
trying to appear wealthier. Classes are also identified by mannerisms, entertainment,
and sports participation.
Australia puts emphasis on higher education. You can choose between universities
and TAFE (institutions of technical and further education). Going to either of these
institutions is also affected by your wealth and social status.

https://pestleanalysis.com/pest-analysis-of-australia/

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TECHNOLOGICAL Australia is known for its technological innovations. It adopts new technology more
frequently than countries in similar standing. The purchasing of new technology is
expected to reach $65 billion this year.
There’s trouble regarding technological policies and research. Most research and
development falls towards national research centres, while university researchers
must struggle over funding resources. The government funds over 50 percent of all
the research and development; industries contribute around 40 percent.
Then there’s the new law passed by government officials regarding encryption. The
government has passed a controversial law to allow police and security to access
anyone’s encrypted messages.
Encryption is supposed to hide information from anyone but the intended target or
user. In this case, the government is forcing a “back door” in the name of “protection”.
The government believes this will help solve cases relating to terrorism and criminal
exploits. Users and security experts don’t agree.
The “back door” use isn’t confined to just police and governmental parties. Once
created, anyone who wishes to gain access can exploit this back door for their own
personal gain. As such, shared information becomes vulnerable to anyone and
everyone.
To citizens, this is an invasion of privacy. It also means products using end-to-end

encryption, like WhatsApp and Signal, are expected to change for this policy. People
outside of Australia fear similar policies will be adopted into their home countries too.

https://pestleanalysis.com/pest-analysis-of-australia
ENVIRONMENTAL Environmental factors include the weather and climate change. Changes in
temperature can impact on many industries including farming, tourism and insurance.
With major climate changes occurring due to global warming and with greater
environmental awareness this external factor is becoming a significant issue for firms
to consider. The growing desire to protect the environment is having an impact on
many industries such as the travel and transportation industries (for example, more
taxes being placed on air travel and the success of hybrid cars) and the general move
towards more environmentally friendly products and processes is affecting demand
patterns and creating business opportunities.
The Environment Protection (Impact of Proposals) Act of 1974 establishes procedures

for ensuring that environmental impact is considered in governmental decision making.
The Whale Protection Act of 1981 prohibits killing, capturing, injuring, or interfering
with a whale, dolphin, or porpoise within Australia’s 200 mi economic zone or, beyond
the zone, by Australian vessels and aircraft and their crews. The Environment
Protection (Nuclear Codes) Act of 1978 mandates the development of uniform safety
standards for uranium mining and milling and for the transport of radioactive materials.
The Protection of the Sea (Discharge of Oil from Ships) Act of 1981 and the Protection

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Assessment Task
of the Sea (Prevention of Pollution from Ships) Act of 1983 prevent or limit pollution
from oil or noxious substances.
Water being a scarce resource in Australia, problems of water quality and availability
are a constant concern. As of 2001, the country had only 352 cu km of renewable
water resources, although safe drinking water was available to all urban and rural
dwellers. A cause for concern has been the increased salinity in the Murray Valley,
caused by diverting water inland from the coast for irrigation, as well as the rise in
saline water tables in Western Australia, due to excessive land clearing for dry-land
farming.
Another significant environmental problem is inland damage due to soil erosion. The
quality of the soil is also affected by salinization. As of 1993, Australia had 145 million
hact. of forest and woodland and had the third most extensive mangrove area in the
world, covering over one million ha.

https://pestleanalysis.com/pest-analysis-of-australia
LEGAL In order to ensure fair trading for both businesses and consumers, Australia has fair
trading laws, competition laws, and consumer laws. The Fair Work Act 2009 is the
primary piece of legislation that governs employment in the country. Likewise, privacy
laws deal with how businesses handle the personal information of their customers.

https://www.howandwhat.net/pestel-analysis-australia/
Table 1: Pestle Analysis
3. SMART GOALS
● To increase the coffee ground grows capacity in 15% by 2021.

● To maintain a solid growth rate of 15% per year for the next 3 years.
● To achieve Australian coffee ground quality certification in the next three months.
● To continually increase quarterly sales by 5% in Australia after our first 3 months in the market.
● To attain a 20% market share trade our products in Australia in the next two years.
● To positionate the brand Juan Valdez as the best International Premium Coffee in Australian
Market by 2022.
4. SWOT ANALYSIS
STRENGTHS WEAKNESSES

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Assessment Task
● High quality coffee (Organic, Premium- ● Juan Valdez is a new product in

Select and Single Source) Australia and it will take time to build
● The biggest coffee brand in Colombia and brand awareness.
South America. ● We are limited with our range of
● Juan Valdez has a good reputation products because we are starting with
in international markets especially in South just 2 types of our Premium Coffee
America and United States. whereas our main competitors have a
● The company already has experience selling full range in store.
their products abroad, the brand has a ● Our price tag is the most expensive of
presence in 22 countries at the moment. the Premium Coffees in Woolworths.
● We will not be able to have control on
our product after the negotiation with
our partner.
OPPORTUNITIES THREATS
● Pacific Alliance Free Trade Agreement ● Australian consumers might be hard to

between Colombia and Australia will facilitate reach because they are already
the exportation of T Juan Valdez coffee. engaged with Australian Coffee Brands
● Colombian coffee has a good reputation all like VIttoria Oro, Campos and North
over the world and is recognized for Queensland Gold Coffee Which have
excellence. been in the market over the years with
● Partnership with the largest supermarket competitive prices.
chain in Australia (Woolworths) will give us ● Recession or economic deceleration will
the opportunity to be in 995 stores across the impact negatively to our business.
country. ● We don’t have control about the
● Australian coffee culture is one of the most willingness of Woolworths to renew the
advanced in the world. contract after our first period of
● The sell of packaged coffee at the partnership.
supermarket can be the first step to introduce
Juan Valdez to the Australian marketing, it
may open future opportunities to bring Juan
Valvez coffee shops to Australia.
● Australia has a large South American
community that already knows the brand and
the quality of the product.
● Australian coffee growers are facing
challenges with lower production volumes
and fragmentation. Several larger Australian
producers have had successfully initiated
export development programs through
brokers to Europe, Japan, United States,
New Zealand, and Hong Kong.
Table 2: SWOT Analysis

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Assessment Task
5. OUR STRATEGY
The decision of how to enter a foreign market can have a significant impact on the results.
As per Australian Government website, exporting companies have better growth prospects, highly
skilled, highly productive staff and tend to adapt technology and best practice techniques faster.
Basically, exports are the goods and services produced in one country and purchased by residents
of another country. It doesn’t matter what the good or service is, or how it is sent. It can be shipped,
sent by mail or carried in personal luggage on a plane. If it is produced domestically and sold to
someone in a foreign country, it is an export.
In our case we choose this strategy for our product because we think that is a very good option for
us to have distributors to represent us in Australia’s market. They will become the face of our
company there and we prefer because we would like to be safer and present on the market as much
as we can. We decided to have an agreement with Woolworths Australia.
We do have other options as Licensing that, is a relatively sophisticated arrangement where we

transfer the rights to the use of our product to another company. This works with a company (the
licensor, us) granting permission to another company in another country (licensee) to use our coffee
for a defined time period. In return, for this permission, the licensor demands a fee from the company
it has granted permission to the licensee and periodic royalty payments. It is a particularly useful if
the purchaser of the license has a relatively large market share in the Australian market.
Another option we have is Franchising that works well for firms that have a repeatable business
model that can be easily transferred into other markets. A continuing relationship in which a
franchisor provides a licensed privilege to the franchisee to do business and offers assistance in
organizing, training, merchandising, marketing and managing in return for a monetary consideration.
Franchising is a form of business by which the owner (franchisor) of a product, service or method
obtains distribution through affiliated dealers (franchisees).
Last option we have to entry in the Australian market is Direct Investment that means (as per ) we
are manufacturing our product direct in Australia without sending anything from Colombia. This
enables us to compete more aggressively in Australia, because we are literally “in” the marketplace.
Because of that, we need a much larger investment that will became the higher risk option.
In the picture below, there are all the option and the level of risk and control of them.

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Assessment Task
https://www.slideshare.net/Beyer_Cuesta/intro-to-business-chapt-3
5.1 PARTNERSHIP WITH WOOLWORTHS
The Juan Valdez partners with the NFC (National Federation of Coffee Growers) for a number of
development projects targeting coffee growing communities. Similar cooperation is also maintained
with external organizations; for example, the NFC collaborated with the United States Agency for
International Development (USAID) for certification processes of Colombian specialty coffees of
small producers.
This case explores the inclusive and sustainable business model of Juan Valdez® Coffee Shops, a
fair trade chain linking communities of producers (NFC and others), businesses (Procafecol and
other private partners), consumers (national and international) and catalyst organizations
(government and international cooperation agencies).
Procafecol- Procafecol was created in December 2002 to face the crisis affecting the coffee sector
and to take advantage of NFC’s greatest assets: the Juan Valdez® and 100% Café de Colombia
brands, in which more than US$1,500 million had been invested on publicity over the previous 40
years. The marketing channels identified by Procafecol to distribute its products included
supermarkets, establishments such as hotels, restaurants and airlines, and Juan Valdez® Coffee
Shops.
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Assessment Task
We are trusted business partners (NFC and Procafecol) to thousands of suppliers and believe our
relationships with our suppliers are a huge part of our future success. In the same way, we are
pleased to work with Woolworths Supermarket. Building strong long-term partnerships through fair
and equitable dealing will foster trust and innovation.
Therefore, Juan Valdez has entered into a strategic partnership with the Woolworths Group which
is one of the most recognised brand in Australia. The partnership includes a $30 million investment
in Juan Valdez by Woolworths group and the issue of our shares. The issue of shares will result in
Woolworths Group owning approximately nine per cent of Juan Valdez.
First of all, we submitted the application of becoming a partner with the Woolworths Group and then
met the category manager which is essential. After finalising the application, we had an agreement
on terms of supply and managing the products. There are several essential requirements our product
and company need to meet which are that we must have Australian Business Number (ABN).
Furthermore, we have achieved woolworths Quality Assurance Standard (WQA) certification within
months of commencement of supply and our products have satisfied minimum shelf-life
requirements. Also our product has held any required safety or hazardous goods certification.
The partnership sees both companies work collaboratively to grow the Juan Valdez brand and Juan
Valdez’s budget offering, in Australia. We have built operational synergies, with an initial exclusive
term of five years. It is beneficial to work from Woolworths’s deep industry experience, with the ability
to engage with its large customer base, as well as work with its sourcing and supply chain teams.
5.2 KPI’S
KPI/ Targets: we will adopt Marketing Metrics or Key Performance Indicators (KPIs) to evaluate
the effectiveness of campaigns across its marketing channels. Some of the metrics to be employed
include:
• Customer acquisition costs

• Return on marketing investments
• Brand awareness
• Company’s website effectiveness at developing an audience
• Cost per lead per source
• Revenue per lead per source
5.3 MARKETING STRATEGY ( 4 P’s)
PRODUCT Premium Selection coffees in 2 presentations:
1. CUMBRE COFFEE - A coffee with intense and impressive flavours, designed to

awaken the senses. Its attributes are strengthened through a medium to high
roasting point, giving it an imposing character that is immediately sensed on the
palate.
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Assessment Task
Fragrance: Pronounce/ Acidity: Medium/ Body: Medium

Presentation: 500g
Type: grained coffee
2. COLINA COFFEE - Each Colombian coffee harvest produces a small number of

"Caracolito" beans. These beans are recognized for their small size and round
shape, which result from the formation of a single seed inside the coffee cherry.
From this exotic bean, Juan Valdez® Cafe has developed "Colina": a mild texture
coffee with medium acidity and medium body.
Fragrance: Pronounced / Acidity: Medium/ Body: Medium
Presentation: 500g
Type: whole bean
PRICE ● CUMBRE COFFEE GRINDED 500G : AUD 20

● COLINA COFFEE WHOLE BEAN 500G: AUD 22
PLACE ● Woolworths Supermarket ( 995 stores across Australia)
PROMOTION ● Woolworths will be in charge of the promotions in the supermarket and the first 3
months we will have product testing.

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Assessment Task
● We will provide them with the brand guidelines and images that we are currently
using. Our Marketing Manager will be in charge to do that and put it in the
contract.
● We will also promote our new partnership with Woolworths (Australia) through a
Social Media Campaign and on our website.
Table 3: Market strategy
5.4 COMMUNICATION STRATEGY
a) RESPONSIBLES
o Juan Valdez: General Manager and the Marketing Manager
o Woolworths: Sales Manager.
b) TARGET: Who are we directing the campaign?

Australian coffee consumers, men and women from 28 until 38 years old. Our target has the
willingness to pay more for quality product, and economic attractiveness of home-grown production
are some of the factors fuelling the Australian coffee industry.
This market has potential for organic coffee products with on-going trend for organic food and
beverage products in the country.
c) What are we going to do? (Strategy)
● We will have a test period for the first 3 months of Juan Valdez in Australia.
● We will do the following actions during the test period:
o Juan Valdez will send to Woolworths all the brand guidelines.
o Juan Valdez will send to Woolworths all the pictures, images and videos needed for the
promotion of the brand.
o Woolworths will be in charge to communicate the release of the product in their shops,
with promotional signs around the area where the product is placed.
o Juan Valdez will be in charge to release a Social Media Campaign to communicate “We
are now in Australia and with our exclusive partner Woolworths!”
o Juan Valdez will also share this campaign on their website.
● After the first 3 months, we will have a meeting with Woolworths were they will give us the sales
reviews to check what is working and what isn’t.
● When we finished the Test Period we will have a monthly communication with Woolworths to
check the sales reviews and every 6 months we will have a formal meeting.
● Juan Valdez will manage 3 strong campaigns during the year: Christmas, Easter and
Mother's Day. All the content and promotions from all the campaigns will be provided from Juan
Valdez to Woolworths.
5.5 PERFORMANCE MANAGEMENT

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Assessment Task
Role Responsibility Accountabilities
● Negotiate and establish product prices

● Monitor sales and provide reports to the
Financial Manager
● Develop and manage the marketing
Sales / Marketing Develop strategy for new materials
Manager opportunities in Australia ● Provide marketing material to support
market customer in promotion such as pictures,
images and videos
Manage sales ● Develop strategy to achieve new
customers in Australia
● Develop 3 campaigns along each year
(Easter, Christmas and Mother’s day).
● Set financial goals

Financial Manager Set Financial management ● Receive and control payments.
plan ● Provide financial reports monthly
● Negotiate with shippers

● Manage export documentation
● Create and provide a shipment schedule
Export Manager / to customer
General Manager Plan and control shipment ● Ensure the compliance of Australian
regulations
● Carry out monthly conference call
meetings with customer
● Provide the brand guide- line
Table 4: Description of roles, responsibilities and accountabilities
REFERENCES “SECCION B”
https://www.austrade.gov.au/australian/export/guide-to-exporting
https://www.thebalance.com/exports-definition-examples-effect-on-economy-3305838
http://www.tradestart.ca/market-entry-strategies
http://www.tradeready.ca/2016/topics/market-entry-strategies/have-a-great-product-or-
service-licensing-could-be-the-right-market-entry-strategy-for-you/
https://courses.lumenlearning.com/clinton-marketing/chapter/reading-entry-strategies-in-
global-markets/
https://www.entrepreneur.com/encyclopedia/franchising
http://growinginclusivemarkets.org/media/cases/Colombia_Juan%20Valdez_2008.pdf
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Assessment Task
https://www.juanvaldezcafe.com
https://www.wipo.int/ipadvantage/en/details.jsp?id=2617
SECTION C: Marketing International Management Strategy (continued)
Process Evaluation and Improvement
Present an evaluation system that monitors the following:

o product, pricing and distribution policies in relation to market changes, objectives of marketing plan
and organisational requirements
o overall marketing progress against performance targets to ensure activity, quality, cost, and time
requirements are met
Provide a report that provides analysis and review of the following:

o Marketing outcomes and objectives, successes and performance gaps and over-performance
against targets for trends.
o Changes in market phenomena and their potential impact on international marketing objectives
o Review of marketing performance against key performance indicators.
o Explain how these factors could be used to improve international marketing performance.
The table below illustrates the variables that Juan Valdez established to measure according to each item
such as product, distribution and pricing.
Item What do we need to know? How are we going to know?

VARIABLES METHODS
Product ● How many product were sent ● Juan Valdez sales report
● How much were sold ● Sales report from Woolworths
● Bank account report
Distribution ● Cost of shipment, we are sending to one city. ● Internal account reports
Sydney ● Bank account report
● Woolworths will be in charge to distribute the ● Supplier account report
product across Australia ● Supplier invoices
Pricing ● Cost of exportation ● Woolworth sales report

● How much the cost per product is ● Supplier invoices
● Cost of communication campaign ● Government Customs Duties
● Internal account report as per labor cost
Marketing plan ● How effective has been our campaign ● Survey

● How our promotions are working ● Customer feedback
● What our new consumers think about the brand ● Sales Report

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Assessment Task
● Direct
Organisational requirements ● If the product is arriving on time. ● Meetings with our partner to know if the prod
● If the product is arriving in good condition. in good condition.
● If the marketing material is useful for the australian ● Meetings with our team every month to make
market. shipment and the campaigns of the year tha
Woolworths.
● Task list
Table 5: Variables and methods to measure pricing, product, distribution, market plan and organizational
requirements
The table below demonstrates the current condition of outcomes as well as the gap against Juan Valdez
target objectives.
OBJECTIVE TARGET OUTCOME GAP
- 0.4% in the first Juan Valdez needs to keep on

Increase the coffee month increasing its ground capacity in
ground grow capacity 15% by 2021 - 0.5% in the at least 0.7 (average) every
second month month by 2021
According to It is necessary to achieve an

15% per year for sales report there average of 1.3% by December
Maintain a solid growth the next 3 years is an increase of 2020 and an average of 1.25% in
rate 2.5% in the the next 24 months
second month
According to According to the figures shown in

sales report there the sales report there is a
Continually increase In the next three is an increase of forecast to continually increase
quarterly sales months 2.5% in the the quarterly sales
second month
The sales
increase as well
as customer
feedback
indicates that
Juan Valdez has
Positionate the brand being Juan Valdez progress indicates
Juan Valdez as the By 2022 progressively that is possible to become the
best International achieving the best International Premium
Premium Coffee in Australian Coffee brand in 2021
Australian market. And

32
Assessment Task
currently it is
positioned among
the third and
fourth best
Premium Coffee.
Table 6: Comparison of Juan Valdez target and outcome
According to data gathered in the presented tables and sales reports, it is possible to track customer
satisfaction, the sales progress as well as the coffee ground capacity. Juan Valdez is progressing to achieve
its goals and become the best Premium Coffee Ground in Australia. By assessing and evaluating data the
company builds a knowledge base and historic data that helps to identify what the company needs to
improve and what strategy needs to be adopted to increase competitiveness in international marketing.
PRESENTATION

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OBSERVATION

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Lonsdale Institute PTY LTD

BSBMKG606 Evaluate international marketing opportunities

Student Name: Belen Quezada Student ID: LON000075R

David Arias LON000059T

TA102 FO Assessment Task Page 1 of 32

SECTION A: International Market Evaluation

GLOBAL MARKET REVIEW

TA102 FO Assessment Task Page 3 of 32

As per Australian Government website, (https://dfat.gov.au/trade/about-ftas/Pages/about-free-trade-

INTERNATIONAL BUSINESS AND E- COMMERCE

These are the type of transactions that E-commerce provides:

TA102 FO Assessment Task Page 4 of 32

RISK AND IMPACT ANALYSIS

Acceptability of political and financial stability

Financial risks in business environment refer to economic considerations such as conditions,

● Unsustainable asset prices

Implications of Trade Barriers on International Markets

International business cycles

TA102 FO Assessment Task Page 9 of 32

REFERENCES “SECTION A”:

SECTION B: Marketing International Management Strategy

Objectives and Risk Management

Present the marketing objectives and show the following:

Approach and operational structure

TA102 FO Assessment Task Page 10 of

OUR CASE: JUAN VALDEZ COFFEE IS COMING TO AUSTRALIA

1. INTRODUCCION OF THE COMPANY

TA102 FO Assessment Task Page 11 of

Valdez Cafe brand is proudly executing that mission and can be

Juan Valdez mission is to captivate the world with Premium

Juan Valdez goals:

● Position Juan Valdez as the Colombian premium coffee

2. BACKGROUND: Australia and Colombia

Colombia boasts strong macroeconomic fundamentals, an environment conducive to business and

TA102 FO Assessment Task Page 12 of

Source: Date of access 29/01/2020

TA102 FO Assessment Task Page 13 of

Source: Date of access 29/01/2020

Source: Date of access 29/01/2020

TA102 FO Assessment Task Page 14 of

To citizens, this is an invasion of privacy. It also means products using end-to-end

Source: Date of access 29/01/2020

The Environment Protection (Impact of Proposals) Act of 1974 establishes procedures

TA102 FO Assessment Task Page 15 of

Source: Date of access 29/01/2020

Source: Date of access 30/01/2020

Table 1: Pestle Analysis

● To increase the coffee ground grows capacity in 15% by 2021.

TA102 FO Assessment Task Page 16 of

● High quality coffee (Organic, Premium- ● Juan Valdez is a new product in

● Pacific Alliance Free Trade Agreement ● Australian consumers might be hard to

Table 2: SWOT Analysis

TA102 FO Assessment Task Page 17 of

We do have other options as Licensing that, is a relatively sophisticated arrangement where we

TA102 FO Assessment Task Page 18 of

5.1 PARTNERSHIP WITH WOOLWORTHS

• Customer acquisition costs

5.3 MARKETING STRATEGY ( 4 P’s)

PRODUCT Premium Selection coffees in 2 presentations:

1. CUMBRE COFFEE - A coffee with intense and impressive flavours, designed to

Fragrance: Pronounce/ Acidity: Medium/ Body: Medium

2. COLINA COFFEE - Each Colombian coffee harvest produces a small number of

PRICE ● CUMBRE COFFEE GRINDED 500G : AUD 20