Discuss about the International Marketing for Made Group.
Made Group is vertically integrated and independent Australian beverage company. It was founded in 2005 by former Brighton Grammar mates Matthew Dennis, Luke Marget, and Brad Wilson. Made group’s head office is located in Melbourne, Australia (Made, 2016). Moreover, its product range includes sports drinks, iced teas, juice smoothies milk, flavoured water juices, and flavoured milk beverages.
The objective of company is to make innovative products that are good for health. Another objective of Made group is to reduce its negative impact on environment in order to achieve sustainable competitive advantage. Its aim is to achieve highest quality and safety standards in its operations and the products it provides to its end consumers.
Instead of focusing on the broad category of consumers, the company believes in blue ocean strategy. It identifies niche categories for food and beverages that are not available in market and develops it into mainstream business category (Mitchell, 2016). An example of it can be seen in the recent products launched by the company like fruit flavoured range of coconut water. Further, it tries to achieve its corporate objectives by creating unique processes and techniques in developing beverages that allow it to charge premium pricing for its products. These strategies used by MADE allow it gain market share by creating and addressing the needs of niche market segments.
MADE Group has made various improvements and achievements in the last three years. The investment of more than $20 million is made by company towards ultra-clean processing technology that is effective in extending the shelf life of milk and cold pressed juices from around 30 days to 100 days. This helps company to gain large market share that in turn leads to increase in its competitiveness in the market place. In addition to this, the revenues of MADE have grown 50% a year for the past three years to $65 million. Along with, MADE has generate a retail sales of $120 million with the help of its four brands including Cocobella, Rokeby farms, Nutrient water and Impressed. Moreover, it is considered as one of the biggest strength of company that is has on-site storage and logistics located at point of manufacturing that helps to reduce freight cost of company (Made, 2016).
The product of Made group that is considered is fresh long life milk. It contains extended fresh shelf life capability which is unique among company’s competitors. In addition to this, it also contains effective nutritional benefits; taste and great mouth-feel which makes it stand out better than its competitors. It also helps to meet out the needs of customers successfully.
However, through diverging from its niche market category, the company is trying to consider broader market segment. It is because long life milk can be preferred and used by each and every consumer from children’s to young adults, working women’s and old age group persons.
MADE Group is engaged in international marketing and it is operating in Singapore, Hong Kong and Taiwan. In addition to this, the entry strategy of MADE includes making of effective partnership with export partners and international retailers and distributors. The countries include Malaysia, Hong Kong, China, Singapore, Indonesia, Taiwan, Middle East and Philippines (Herald Sun, 2016).
For the expansion of business into overseas, there is requirement of adequate funds, effective and experienced human resources, tools and equipments. Successful global expansion can effectively help company to extend sales potential of existing products. This will effectively help company to gain global market share.
Macro environment is a circumstance that exists in an economy with uncontrolled and external factors (Laasch and Conaway, 2014). The factors included in macro environment are discussed as below:
Political factors: The political factors include different areas such as labour law, environmental law, tax policy, tariffs, trade restriction, political stability, safety, and corruption that affect an economy. In this country, the political environment is stable which provides support to its economy (GAN, 2016). Moreover, the political environment of Japan is least corrupted in the world. The organizations in the country face very low risk of the corruption and feel safety by stable environment in the country.
Foreign relations/trade: Japan is greatly influenced by trade, investment, and international economic issues (Patrick, 2010). In Japan mostly goods are not required any importing license or trade barriers to trade in the country. But the government prohibits importing some items such as firearms, narcotics, pornography, explosives, and products that are volatile to intellectual property laws. For the regional economic treaties Japan follows free trade agreement.
Social and cultural environment: The people of Japan historically controlled by the nature and formed in groups with minimum functioning of social units. In Japan, different religious people live but particularly everyone speak Japanese language. The lifestyle and culture of the Japanese people is very high because the economy of the country is stable and developed.
Economic factors: The economy of Japan is much strong and stable because the export of this country is strongly depended. The GDP value of Japan in world economy is 7.42 percent. The GDP per capita of this country is very high which presents that the purchasing power of this country’s people is also high with great prosperity. Japan is highly industrialized and developed country therefore the agricultural environment is suitable for the farming of the pack milk products.
Technological factors: Japan is probably known as advance technological country. It is an important factor that affects to the Japan’s economy. The technology plays an important role in development of its infrastructure and industrialization. The development and manufacturing level of the country is very which is affected by the technology. Mainly the technology of this country belongs to the implementations of telecom and electrical equipments.
Similarities and differences between the company’s origin country (Australia) and Japan:
In terms of macro environmental factors both country’s GDP is based upon service sector and are same in composition by industry sector but the agricultural sector of Australia is 3% in GDP and 1.4% of Japan. So, the macro environment of Australia has more opportunities in compare of Japan.
Micro environment refers to those factors that have impact on a business activities and objectives. In business corporate strategy it is essential to analyze micro environment of the country. Traditionally, the dairy products are not a large part of Japanese diet, but in recent years the market of these products has increased and gain popularity in the country. The market size of Japan is EUR 1252 million which is increased 41.6 percent in 2015. There are clear and distinct segments within the market of milk products. In relation of product life cycle, the market of beverage industry in Japan at growth phase. Moreover, the sources of foreign supply are sipping and air freight in Japan. But the major forms of marketing channels in Japan for this product are road and rail transportation that are relatively used for the transportation. Additionally, there is high competition in beverage sector but the company is capable to compete in the market.
The economy of Thailand is upper class economy in the world. The competitive analysis of Thailand is conducted through its political, economic, social, technological, legal, and environmental conditions that are discussed as below:
Political factors: Politically the country is instable and deals with a cycle of anti- government remonstrations. The political instability proves major threats to the company and other investments. But the large and expand market attracts to multinational companies, allows domestic producers to attain economic scale, encourages local investors, and permits to agglomerations that creates competitive advantages in the economy (lucintel, 2012).
Foreign relation/Trade: The foreign relations of Thailand are remarkably adaptive that manage its foreign issues flexibly and relatively creative by interference of most important foreign powers. The country Thailand almost aligned with its dominant power in region due to its efforts of security, preserve national sovereignty, and increase trade.
Social and cultural factors: The big part of Thailand culture is connected to Buddhism religion. The people of the country do not on system nut they are encouraged to think themselves. The society of the country follows tradition beliefs. Although, there are used many language but mostly the Thai family language is mostly spoken language in Thailand.
Economic factors: The economic analysis presents that the manufacturing sector is an important contributor for the company’s growth. The economy of Thailand depends on exports, which is 60 percent of GDP. It is the second largest economy in South Asia. The GDP per capita of Thailand is 5774 US dollar which is equivalent to 46 % world’s average (Trading Economics, 2016).
Technological factors: Country’s technology and productivity is limited because Thailand is facing shortage of skilled workers. In tertiary education its ratio is only 45 percent which is low and needs to improve in order to skilled workforce. Therefore the level of developing technology and infrastructure of the country is low.
Agricultural factors: Agricultural sector is an essential source in Thailand to reduce the poverty and contributes in economic growth (Singhapreecha, 2014). Therefore, the environment of Thailand is favorable for the company.
The political environment of Thailand is unstable but the beverage market is attractive and competitive. The milk cooperatives of Thailand are varying in size and growing continuously with more opportunities for beverage companies. The milk cooperative encourages to farmers by procuring milk from farmers. In relation of product life cycle the market of Thailand at growing phase that provides the opportunities to beverage companies (Valencia, 2013). The dairy industry in the country is highly competitive as other Asian countries. Mostly, the dairy farms are small in size which is supported by dairy cooperatives. In other words small dairy farms are competitors in Thailand. In these competitors, the position of the company low but the future of the company in Thailand is bright because the products of the company comparatively superior with better services.
References:
GAN (2016) Japan Corruption Report. [Online]. Available at: https://www.business-anti-corruption.com/country-profiles/japan (Accessed: 10 October 2016).
Lucintel (2012) PESTLE Analysis of Thailand 2012. [Online]. Available at: https://www.lucintel.com/pestle_of_thailand_2012.aspx (Accessed: 10 October 2016).
Trading Economics (2016) Thailand GDP per capita. [Online]. Available at: https://www.tradingeconomics.com/thailand/gdp-per-capita (Accessed: 10 October 2016).
Singhapreecha, C. (2014) Economy and Agriculture in Thailand. [Online]. Available at: https://ap.fftc.agnet.org/ap_db.php?id=246&print=1 (Accessed: 10 October 2016).
Valencia, C. (2013) The power of cooperatives in the Thai dairy industry. [Online]. Available at: https://www.philstar.com/agriculture/2013/07/07/962397/power-cooperatives-thai-dairy-industry (Accessed: 10 October 2016).
Patrick, H. (2010) Japan’s foreign economic relations. [Online]. Available at: https://www.eastasiaforum.org/2010/10/31/japans-foreign-economic-relations/ (Accessed: 10 October 2016).
Laasch, O. and Conaway, R. (2014) Principles of Responsible Management: Global Sustainability, Responsibility, and Ethics. USA: Cengage Learning.
Mitchell, S. (2016) Nutrient Water and Cocobella maker MADE to ship bottled milk to Asia, The Sydney Morning Herald. [Online]. Available at: https://www.smh.com.au/business/nutrient-water-and-cocobella-maker-made-to-ship-bottled-milk-to-asia-20160509-gopu72.html (Accessed: 10th October 2016).
Made (2016) Made Impact. [Online]. Available at: https://madegroup.com/made-for-you/made-impact/ (Accessed: 10th October 2016).
Herald Sun (2016) Melbourne beverage company made signs $2 million fresh milk export deals with Malaysia. [Online]. Available at: https://www.heraldsun.com.au/business/melbourne-beverage-company-made-signs-2-million-fresh-milk-export-deal-with-malaysia/news-story/ba63579949eba38d2cbb127926d9e5a5 (Accessed: 10th O
Kim, W. and Mauborgne, R. (2013) Blue Ocean Strategy: How To Create Uncontested Market Space And Make The Competiti ctober 2016). on Irrelevant. US: Harvard Business Review Press.
Made (2016) About Made. [Online] Available at: https://madegroup.com/about-made/ (Accessed: 10th October 2016).
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