International Marketing Programs
|1.||Japan is a big import market for meat in the overall globe that provides a good opportunity to SAMEX. It is because it was imported meat worth ¥879 billion in 2008.|
|2.||In concern to pork imports, Japan had first ranking with a total import of 2.3 million tons.|
|3.||Similarly, this country had a second ranking in the import of beef and chicken meat in 2008.|
|4.||Japan has a meat import rate of 40% that will not change in long-run because the country has insufficient farmland.|
|5.||Japan-Australia Economic Partnership Agreement (JAEPA) is now effective in the international transactions of Japan and Australia that is providing an opportunity to sales of Australian beef.|
On the basis of above-potential marketing opportunities, it is expected that the sales of Australian beef will be raised around $5.5 billion as per the term of JAEPA agreement.
In addition to this, SAMEX has a good opportunity to develop the market by meeting the requirements of several international buyers because it has a license from MLA (Meat and Livestock Australia).
However, it can be said that SAMEX also has good opportunity to expend the global market without following a diversification strategy and increase the overall sales (Gillespie and Riddle, 2015).
In concern to the strategic direction of SAMEX, it can be said that the company would have some measurable marketing objectives in the Japanese market:
- In the opening of SAMEX in Japan, it would attract more than 2,000 new customers at the end of three months.
- In the next 3 to 6 months, the company would inform the target audience about the superiority of Australian red meat as well as its competitive advantage. It would lead to 10% increment in the overall sales through advertising on Japanese media channels (Liu et al., 2015).
- Within 6 months, the company would also advertise and promote to the supermarket suppliers and managers of stores to deliver SAMEX products in each supermarket in Japanese big cities like Kyoto, Tokyo, etc.
SAMEX would formulate the effective strategic objectives through the use of Key Performance Indicators (KPIs) that will define or evaluate the successful marketing strategies.
In this, KPIs are the kinds of performance measurement that evaluates the success of an organization or a particular activity in which the organization is engaged (Edgington, 2018).
- In concern of this, SAMEX would focus on the periodic achievements by defining some level of operational goals such as customer satisfaction 10/10 or Zero defect policy. These operational goals will show the quality of the firm.
- SAMEX would also focus on effective strategic goals because the success of a firm can be defined in terms of making their progress as per the strategic goals.
- SAMEX would also understand well the need for various techniques in order to assess the present state of the business as well as several key activities associated with the selection of their key performance indicators. It is necessary because the selection of right KPIs relies on an effective understanding of the key aspect of an organization. On the other side, it can also be said that there will a difference between the KPIs assigned to sales and KPIs useful to finance (Hoppen et al., 2014).
Conversely, it is also defined that these assessments would lead to SAMEX for identifying the potential improvements because the performance indicators are associated with the performance improvement initiatives.
There is a good opportunity for SAMEX to increase the profitability through exporting but it also includes greater risks.
In addition, the international trade environment is changing continually over the years that are improving risk areas for exporters in order to sell their products or services in other countries to remain the same in the competitive business.
Export risks management
In concern to managing export risks, SAMEX uses an effective process of thinking systematically regarding different possible undesirable outcomes.
After this, the firm sets up the procedures that will minimize or avoid the risks and helps to cope with its impact (Alon et al., 2016). There are some basic elements of export risk management process:
- Establishing the risk contexts
- Identifying the risk areas
- Assessment of possible consequences and probability of the risks
- Developing strategies to mitigate the risks
- Monitor and review the results
- Communicating and consulting with entire parties involved in the risks
In addition, it is also necessary for the company to keep clear and simple to the risk management analysis in exporting.
|Risk type||Ranking||Consequences||Steps to manage or mitigate the risk|
|Exchange rate risk||High||Payment in Japanese Yen will not cover the amount of invoice in profit margin.||SAMEX export policy should take order in Japanese Yen during ordering the receipt.|
|Legal risk||Medium||The government of Japan could take legal action against the company (Pritchard and PMP, 2014).||SAMEX must have up-to-date legal advice on liability laws and focus on the insurance also.|
|Non-payment risk||Medium||Debtors may face difficulty to chase overseas that can be a reason for financial loss||SAMEX should check the credit score of the customer who wants the product in credit.|
On the basis of the above risks and their solutions, it is identified that SAMEX should ensure all the marketing objectives as per their requirements.
SAMEX will research and analyze marketing opportunities in order to promote their products and services in the Japanese market. In concern to this, the company will develop the external and internal analysis through different methods.
The internal analysis can be done through SWOT analysis of SAMEX and all the strengths and opportunities will be used in the implementation of the strategy. On the other hand, weaknesses and threats will be reduced to be successful in the market (Kumar et al., 2013).
On the other hand, the PESTEL analysis will also be done by SAMEX to research and analyze the marketing opportunity for promoting the products and services in the Japanese market.
There are some essential international marketing approaches that can be used by SAMEX like Ethnocentric, Regiocentric, Polycentric and Geocentric. In concern of this, Ethnocentric is an effective approach that is useful for a firm which internationalizes their business or market first time.
But in concern to SAMEX, it already has its market in different countries. On the other hand, Regiocentric is also an effective approach to research and analysis of marketing opportunity.
In this, SAMEX can determine the market on the basis of characteristics of common regions with standardization. The company will also cover the parallel needs of consumers regarding political, cultural, and economic similarities (Adamopoulos and Todri, 2014).
A polycentric approach is a multi-domestic approach where the company understands that each market is exceptional and it is completely decentralized. Similarly, the geocentric approach shows that the company is not in the favor of a foreign country or not in the favor home country.
Throughout this approach, the company will borrow money from several best countries to develop constant global market research.
In concern to enter into the Japanese market, SAMEX will conduct research on the Japanese market before launching the product or service as winning to the market. In addition, SAMEX will need to know their target customers and competition level in this market.
In concern to this, digital strategy and web presence will be used an effective and successful strategy to enter into the Japanese market because it will provide the overview of the people about their service and product among the people (Deshpandé et al., 2013).
In addition to this, the company can also take the support of a local partner or consultant to reduce the cost of expertise. It is because the Japanese culture, taste, and preference can be provided by an organization to be successful.
Finally, it can be said that the use of social media is one of the essential marketing approaches that can be helpful for SAMEX to achieve the market condition and consumer preference. However, social media marketing and promotion of product and service through social media will be an effective marketing approach of the company.
In order to evaluate the business culture and consumer preference in Japan, first of all, the CMO of SAMEX will develop a general knowledge of Japan such as geography, its history, etc.
After this, the business culture will be evaluated by evaluating the on-boarding process and change the profession according to the cultural requirements as a movement. On the other hand, the business culture will also be evaluated through observing the team instruction and need of the market.
The consumer preference will be identifying by communicating with different wholesaler and retailer of meat products (Strupeit and Palm, 2016).
In order to build up the long run consumer relationship, it is necessary for the firm to introduce the products in the Japanese market with a formal introduction with good quality.
After this, SAMEX must develop trust among the consumers by providing the best quality meat product at a competitive price and be consistent with their items for a long. Along with this, the company should socialize with Japanese and provide offers and gifts on a special occasion.
There are several forms of operational marketing structure for prospective clients in Japan and the possible market entry options can be included:
- Joint Ventures
- Direct exporting
- Buying a company
- Turnkey projects
The SAMEX should also use the Japanese language to get success in Japan. In addition, marketing in Japanese is also necessary for SAMEX to communicate about the product and services with local or business customers.
It is identified that SAMEX has a major weakness that their current employees do not understand the Japanese language so that the company should hire employees from Japan and also provide language training to the existing employees.
In concern to the Japanese meat market, Japanese mostly prefers the local Kokusan and Wagyu beef, as well as Australian beef. However, it can be said that operational excellence strategy is most suitable for SAMEX for their Japanese market.
In concern to this strategy, the company needs to provide greater value in the industry at a reasonable or satisfactory price (Gillespie and Riddle, 2015). SAMEX will serve quality and reliable product to the customer at a cheaper price.
This strategy is chosen because SAMEX can provide different varieties in red meats like sheep, goat, and lamb with affordable price and high quality. In addition, SAMEX has a good reputation as high-quality red meat supplier.
Adamopoulos, P. and Todri, V., 2014. Social media analytics: the effectiveness of promotional events on brand user base in social media.
Alon, I., Jaffe, E., Prange, C. and Vianelli, D., 2016. Global marketing: contemporary theory, practice, and cases. Routledge.
Deshpandé, R., Grinstein, A., Kim, S.H. and Ofek, E., 2013. Achievement motivation, strategic orientations and business performance in entrepreneurial firms: How different are Japanese and American founders?. International Marketing Review, 30(3), pp.231-252.
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Hoppen, A., Brown, L. and Fyall, A., 2014. Literary tourism: Opportunities and challenges for the marketing and branding of destinations?. Journal of Destination Marketing & Management, 3(1), pp.37-47.
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Liu, G., Eng, T.Y. and Takeda, S., 2015. An investigation of marketing capabilities and social enterprise performance in the UK and Japan. Entrepreneurship Theory and Practice, 39(2), pp.267-298.
Pritchard, C.L. and PMP, P.R., 2014. Risk management: concepts and guidance. Auerbach Publications.
Strupeit, L. and Palm, A., 2016. Overcoming barriers to renewable energy diffusion: business models for customer-sited solar photovoltaics in Japan, Germany and the United States. Journal of Cleaner Production, 123, pp.124-136.