In the current competitive industry, international marketing has become an important initiative in terms of expanding business (Keillor, Hult & Babakus, 2015). In other words, it can be said that the international marketing is about extending the marketing strategy from the local market to the global industry. In the words of Vellas (2016), depending on the target market, segmentation and the legal consequences in the market, the international marketing is being affected. In this study, the company named Craft Smoothie has been discussed, which was introduced in the year 2016 in New Zealand.
The company has tried to introduce a healthy lifestyle in the industry. The aim of the company is to provide organic foods to the customers for improving their living standard. By introducing the healthy diet planning, for providing its free delivery services all over New Zealand, the company has taken various initiatives. Using the fresh organic products the company has aimed to gain the competitive advantage in the market. The purpose of this study to highlight the comparison between Chinese and New Zealand market by highlighting the international marketing Practices. The major cultural differences, which have influenced the growth rate of the organizations in both the positive and negative manner, have been discussed in this study.
After the situational analysis, opportunities and challenges of Craft Smoothie have been mentioned in the international market. Different target market, segmentation as well as the issues of Craft Smoothie in order to enter the foreign market has been pointed out. After the identification of the issues, the study has provided the measurable recommendations that may play an influential role in terms of dealing with the challenges.
Discussion
Comparison between Chinese and New Zealand market
China market
In the last few decades, China encountered tremendous economic growth, making it one of the world’s largest economy. Since the advent of the economic reforms, China has been considered as one of the world’s largest manufacturing hub. Secondary sector accumulates the largest GDP. Modernization is reflected in the tertiary sector. In the era of 2013, China becomes one of the largest countries in terms of GDP with a share of 46.1% (Gov.cn, 2018). The secondary sector accounts for 45% of the total output. Primary sector has collapsed noticeable with the advent of globalization.
According to (Nzherald.co.nz, 2018), New Zealand is considered the virtual economic trade prisoner of China. The trade policies reflect activity, which increases the dependence on the single commodity. This has increased the anxieties towards maximizing the trade advantage. China encountered global economic crisis more than the other countries. In November 2008, the State Council announced CNY of 4 trillion in terms of dealing with the crisis. Financial stability was achieved with 9% growth in the GDP (Gov.cn, 2018).
Along with this, a low level of inflation was recorded. However, the fiscal position was strong. The policies implemented during the crisis possessed flexibility in exacerbating the macroeconomic imbalances (Papadopoulos & Heslop, 2014). The leadership of President Xi Jinping and Premier Li Keqiang, promoted a balanced economic model, helping in the achievement of economic growth.
Since the era of 1993, China has encountered trade surpluses. In 2013, China surpassed the United States when the total trade multiplied by 100 to USD 4.2 trillion. Massive investment programs made the country a manufacturing hub. Alliance with the World Trade Organization triggered the trade growth. Bilateral and multilateral trade agreements opened new markets for China. Mention can be made of the Closer Economic Partnership Agreement with Hong Kong and Macau (Gov.cn, 2018). Electronics and machinery constitute about 55% of the total exports. In the case of garments, the export is 13%, construction materials and equipment accounts for 7%. 40% of the exports are made to Asia. North America and Europe have a share of 23 and 24% of the exports. Africa and South America constitute 8% of the total exports (De Mooij, 2015).
New Zealand
New Zealand market operates on free-market principles with a mixed economy. The country possesses sizeable manufacturing and service sectors. The staple activity is agriculture. Export for the goods and services accounts for one third of the total GDP. The average GDP growth per capita has encountered a noticeable decline in the last decades than the other OECD countries. The focus needs to be placed on the narrowing the income gap between the New Zealand and the advanced economies. The government believes that sustainability in the economy is crucial for the achievement of growth and development. Stability in the macroeconomic stability helps New Zealand to enjoy higher long terms growth rates (Samiee, Chabowski&Hult, 2015). Even the sectors display stable performance, which creates outstanding results in terms of adding value for money.
After reviewing the market scenarios of China and New Zealand, it can be concluded that Craft Smoothie has high potential in the Chinese market (Craftsmoothie.co.nz 2018). This is in terms of stability in the GDP. Balance in the economic model would be assistance for Craft Smoothie in terms of stabilizing the financial parameter. Alliance with the World Trade Organization would be crucial in terms of carrying out the trade and transactions in an efficient and effective manner.
Cultural differences
According to Sharma, Lindsay and Everton (2015), cultural differences play a significant role in terms of influencing the marketing strategy. In the case of business benefits, the cross cultural and multicultural benefits are important terms. By supporting this Tharenou (2015) stated that diverse knowledge and expertise of people sometimes creates the challenges for the organizations to develop an effective business plan. It cannot be denied that the Chinese and New Zealand culture have many differences. In the case of Chinese, they incline to collectivism, where the New Zealand people believe in individualism (Cross, Belich & Rudelius, 2015).
In the case of collectivism, the group of people is prior rather than an individual. On the other hand, the idea of individualism indicates pursuing own values. In the case of individualism, the person gives himself the major priority rather than a group or others. In other words, the Kiwi cultural personally is being shown by the New Zealand people. It can be said that the Chinese people are family oriented. Not only the behavioral characteristics but also the food habits are different in different countries.
After analyzing the New Zealand culture, it can be said that they are highly self-aware. Level of education among the people is also high. On the other hand, in the Chinese culture, local cultural awareness is more important for understanding the surroundings (Hockx, 2015). Due to such cultural variety, the market planning practices are being affected. In this situation, if the New Zealand business organization wants to enter the Chinese market, it needs to focus on adopting the concept of collectivism.
Without such initiatives, it will be harder to interact with the target market. As stated by Hamamura and Xu (2015), after analyzing the behavioral changes of the New Zealand people, it can be said that they are sometimes rude and aggressive towards strangers. While convincing the customers in different countries, the executives will be impatience that can impact on its development procedure. In most of the cases, the professional people do not meet with anyone without appointments. By arguing this Zhong (2018) said in order to establish its business in the foreign market, the New Zealand organizations should be more interactive and polite towards strangers.
It is also true that New Zealand people are highly brand fascinated and fond of foreign products (Sun, Ryan & Pan, 2015). As the New Zealand people are fond of technology, therefore, in some cases where the new product of technological equipment is being introduced in the market, they easily get influenced. On the other hand, in the case of Chinese, they are very loyal. In case of this, if they trust a brand or company, it is hard to change their preferences. However, in the case of the New Zealand market, it is hard to get the loyal customers are they are very demanding (Kumar, 2015).
Therefore, comparing both the markets, it has been identified that the Chinese market will be easier for the New Zealand organization namely Craft Smoothie if the marketing plan will be developed by respecting the different tradition and culture. As the Chinese people give importance to their traditional values, therefore, it is hard for them to accept the foreign products. Another way, it can be said that the Chinese people are being influenced by their family and friends easily. In such cases, in order to develop a business plan, it is hard for Craft Smoothie to influence them. Hence, the business promotions should be developed in a proper manner so that the emotions of the customers will not get hurt.
Target market and segmentation
Identification of the target market is very important in order to do a successful business (Armstrong et al., 2014). By identifying the target market, the company will be able to use its resource in an effective manner (Phillips, 2016). It is beneficial in terms of pointing out the needs of individuals. Hence, it can be said that the target market is being considered as the essential step taken by the organizations to develop an effective business plan. On the other hand, market segmentation is another important key driver in the business plan (Gunter & Furnham, 2014).
Through the market segmentation, the target market can be defined through the specific segments. It helps to define the consumers of the company in different groups. Therefore, it can be considered as the process by which the productions, as well as the marketing campaigns, are being specified for the audience. It is true that depending on the financial and social status of the target market, and the organizations develop the business plan. Highlighting the retail industry in New Zealand, it can be said that the pricing of the products is reasonable.
In the demographic segmentation, Craft Smoothie needs to focus on targeting the customers who belong to the middle class and lower middle class. It will be easier for the Craft Smoothie to grab the attention of a large number of customers. On the other hand, it is true that the increasing uses of technology in the Chinese market, the NZ organization needs to focus on grabbing the attention of the young generation. It will be easier in terms of increasing the sales revenue. However, the retail organization namely Craft Smoothie provides the products, which can be used by each and every age of people. It can be said that childreno aged people can be targeted by Craft Smoothie.
Networking and connectivity is another important, influential factor in developing a business plan. Therefore, from the geographic segmentation, the company needs to focus on developing its business in urban areas. It will be helping to grab a large number of customers’ attention. A delivery process, as well as the supply chain practices, will be more natural for the companies. Depending on the psychographic segmentation, the company needs to focus on identifying the interest and living standard of the people.
These are very influential factors in the case of determining the target market. In this study, it has been identified that the people, who are fond of technology, will be attracted by the service of the companies. In most of the cases, the New Zealand people use the digital transaction practices, which can attract the customers. The living standard reflects the financial and social status. The preferences and the demands of the customers reflect through the social status. It has been identified that in the Chinese market, the social standard is moderate.
In this situation, the company needs to focus on improving its quality as well as the number of products so that loyal customers will be maintained. Hence, all the promotional strategies of the companies need to develop depending on the psychographic segmentation. These segmentations are important, as these segmentations help to influence the business strategies of the company in order to enter the international market.
Identification of issues and measurable recommendations
Meetings with the foreign delegates need to be conducted for developing policies in terms of dealing with the global crisis. This would improve the relationship between the countries, resulting in the prospective deals and transactions in the future. This stability also indicates financial assistance in times of crisis for securing the market position within the competitive ambience. The developed policies need to possess flexibility in covering all of the business issues. Developing frameworks would be fruitful in terms of catering to the fiscal and the macroeconomic policies.
The leaders holding power need to adopt the participative leadership style. This is in terms of valuing the opinion of the citizens. This valuation would bring outstanding issues in the trades and the transactions. Taking feedback from the clients and the customers would be helpful in terms of upgrading the standards and quality of business. Alliance with the World Trade Organization would enhance the awareness towards the business standards, which needs to be maintained for achieving competitive advantage over the contemporary brands. Along with this, the alliance would be crucial in terms of gaining financial and legal alliance for averting the illegal instances and scandals.
Partnership agreements would prove beneficial in improving the ties between the countries. As a matter of specification, these agreements would help in maintaining the balance in the economic models. Within this, budgets occupy a central position in terms of forecasting the expenditures. The management personnel need to be strong and flexible enough for regulating the cash, which flows from the internal to the external environment.
The state government needs to ensure that the companies and organizations deliver quality improvements for stabilizing the economic parameter. Alliance with the trade union members would be effective in terms of dealing with the instances of inflation, high exchange rates and the tax tariffs. The finance parameter needs to constantly update the GDP, which would assist in forecasting the consumer prices, current account position and the balance of payments.
Developing monthly economic indicators would help the retail sector personnel to track the improvements. This would be slow and gradual progress towards the achievement of growth and development. Prior to this, market research needs to be done for gaining awareness into the market scenario of the country, into which the retail sector would expand its business. This research would mitigate the instances of displaying unnecessary steps towards venturing into the foreign markets. Along with this, the research would be assistance in terms of coping up the external market influences.
Evaluation of the internal environment would bring to the forefront the drawbacks within the business. Strategies would prove effective in terms of rectifying the drawbacks. Proper implementation of the strategies would result in the achievement of positive outcomes in improving the efficiency in business. Taking the opinion of the people in terms of implementing the strategies would result in their empowerment. This would also preserve their fundamental rights. Moreover, it would bring prosperity to the retail sector of New Zealand.
Conclusion
In this study, it can be concluded that entering the foreign market is not easy. Highlighting the comparison between New Zealand and China, it has been mentioned in this study that it is tough to enter in the foreign market as the demands and needs of the customers are totally different. On the other hand, cultural and legal barriers in the international market create the challenges for the organizations for entering the international market. While comparing the Chinese and New Zealand culture, it has been highlighted in the study that grabbing the attention of the customers is truly difficult for their various behavioral characteristics.
In this study, it has been identified that after the introduction of financial loss, CNY has introduced the contribution of 4 trillion. In this situation, the business development will become easier for Craft Smoothie. After analyzing the issues regarding partnership agreements, rules and regulations and lack of effective leadership styles, here the study has provided above measurable solutions. It can be said that, if the leadership style development practices, as well as an effective partnership, will be introduced, it can be beneficial for developing the business in the international market.
Reference list and bibliography
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