BSBMKG516 – Profile international markets

BSBMKG516 – Profile international markets?

BSBMKG516 – Profile international markets


In the present case study, a new method for the compression or vacuum packaging of the Lucerne, also known as alfalfa which is developed by Aussie Hay and Feed. The company is seeking for business exposure majorly in south-east Asia especially in the Japan because of time consistencies with Australia. This animal feed is grown all around the globe and used for feeding the horses. Lucerne has many benefits over the other traditional available products and Aussie found a way to store this safe and fresh for three years and hence the demand is increasing. Here some questions are answered below which are related to this case study.

Task 1
Answer 1

According to the Aussie, they are considering the South East Asian region and majorly Japan. They identified the wholesale suppliers and the horse owners of Japan and middle and south-east Asia. Japan is selected as a priority because of the time zone relevancy with Australia and size of their business markets. According to the case study, they are considering the South Asian regions for their business because they want to expand their business since the facts are saying that they are the major countries that can provide more economic revenue for Australia.

The purchasing behavior of the agricultural and horse owners can be fulfilled with the production capabilities of Aussie. In this consideration, they are also focused on the trainers and owners of the racing horses and the dairy industry (Ellis, et al. 2010). For the racing horses, it is very essential to get proper nutritional hay and feed and Lucerne is the best product that can provide more benefits compared to others. This alfalfa is in major demand in Japan and some south-east and middle east Asian countries. Japan is rapidly increasing its economy and the products that can facilitate them better agricultural results from effective horse feeds will be very beneficial for both Japanese and Aussie.

Answer 2

Aussie determined Japan as their major international market because of the two major relevant criteria’s, the size of the market of Japan and the time zone relevancy with Australia. In addition to this, the global export market for the hay and animal feed products found Japan as the major importer of the products which amounted to Australian $900 million. According to the Japanese Trade Organization, the Australian government has made some laws for setting up a business in Japan. It emphasizes on the promotion of investment and trade mutually between the two countries.

Japan is the ever-growing economy and is increasing rapidly even in the transforming market demands, this is one of the most effective ways to increase the business and understand the behavior of business activities of Japan (Dunfee, et al.2013). For Aussie, the suitability of Japan is related with many factors like friendly nature of government to establish a business, higher profitability through business activities, improved internet access, reduction in language barriers, and promotion on invert FDI is attracting the Aussies for doing business in Japan. They determined the total worth of the market least to be approximately $200 million for the horse chaff. Also, the capability of the Aussie to produce 300 tonnes can easily fulfil the demand of the markets of Japan.

Answer 3

Determining Japan as the major international markets, Aussie doesn’t consider the factors like politics, social and psychological factors because these are the factors that don't majorly affect their business. In any business, management of these external factors is very important for sustainable growth. The only thing the political factor is the import and export duties and laws regarding them. In Japan, the rules and regulations regarding the business of outside countries are highly supported by the government. Aussie’s doesn’t consider the importance that can be gained from establishing a local official site in Japan.

In the above case study, the fodder business has remarkable discovery in storing the Lucerne (alfalfa) for a larger period of time (Lucerne, 2017). The requirement of Japanese people can be satisfied but without proper transportation and storage space for small farmers and horse owners is not much feasible. For the business of hay and feed the Aussie ignored or not emphasized on the social factors of Japan. The development of marketing strategies is completed but finance management in some other country is quite difficult, hence they have to focus on strategies that are cost-effective and more beneficial. Another criterion which is not considered is the transportation and shipping costs.

Answer 4

With respect to the success of the Aussie’s business of hay and feed in Japan, there are positive as well as negative aspects that can affect it. Taking some positive factors, the relevancy of time with the Australia is one of the most important factors. Another major factor is the technique that they had developed to store the Lucerne for a longer period of time, a fewer cost to store because of smaller size and transportation costs. In the successful strategies strengths of the company lies and the abilities to tackle the obstacles of business (JETRO, 2017). Aussie hay and feed may get influenced through economic factors because generally the trainers and the racing horse owners are not much capable to buy costly products that will force them to change their minds towards the other local suppliers.

When it comes to some negative aspects in the path of success, there are some restrictions from the government laws regarding the import and export duties. Aussie’s had determined many characteristics that can make their business more successful like proper packaging and label on the boxes, use of black polypropylene for packaging to keep the product fresh and green whenever they open.

Answer 5

Yes, Aussie is definitely ready to marketize their products in Japan and they have decided some strategies to reach the dairy industries, horse racing industries, live cattle exports and leisure horse industry. Exports of live cattle are estimated to be $600 million with almost 600,000 livestock’s that needs around 1.3 million tonnes of fodder. Being the potential consumers for the products most of the South Asian countries have increased demand of Lucerne make the Aussies perform better business activities (The Australian government, 2017).

Japan is a potential market for them and the revenues generated from agriculture industry of Japan in past assures this. In their marketing strategies they are going to try internet websites, advertisements and testimonials from known and experienced people of the industry in magazines, directly sell to the partners and distributors of business and with the help of trade partners present in Japan. Moreover, their packaging and labelling needs to be of a higher standard to be successful in the Japanese market.The importance of the better packaging is seen and analyzed by the increase in the sales over the past few years of the business. The Japanese customers are more attracted by the level of packaging through which the Aussie’s can easily expand their business.The Aussie hay and feed are very likely to implement those strategies that can bring better results from their business in Japan, and hence they are working hard to make the best decisions.

Answer 6

The readiness of the Aussie can be seen through their strategies for the future expansion of the business. They are continuing their research for the more effective ways to make the Lucerne more better, fresh, cheap and occupy less volume. Their early planning for the marketing the business through the websites, television advertisements, magazine articles from experts of industry are giving the sight how prepared they are to run the business in Japan. Also, it can be taken as a powerful strategic management technique so that they can establish properly in the Japanese markets. An effective readiness for operating the business in the Japan is also seen through the inclusion of local partners in Japan so that they can reach to most of their potential customers.

For this, they have determined that there is a need for better packaging and labelling to attract the people of Japan (Chéron, et al. 2012). With respect to business marketing they have partners in Japan so that they can directly communicate with the agriculture owners, horse owners, trainers etc. moreover they have well-prepared strategies for marketing in Japan with internet website, advertisements in agricultural magazines, etc.

Answer 7

In addition to their current marketing strategies, development plans and business expansion they can also emphasize the other factors that can influence their business to some extent. Some of these factors are better relationship management strategies for the customers, suppliers, distributors, or overall supply chain management. In the context of some more information regarding the readiness of Aussies is taken from their positioning of the product as the Long-life chaff that has a premium price above the other products because of the quality and efficient production capabilities (Wymer, 2011). They have identified that for more success in the Japanese markets, they need proper computer generated a simple outline with the appropriate information given in white labels.

When it comes to political factors they can establish completely ethical ways in exporting the goods to Japan. Planning’s for the future business operations were effectively developed by the Aussie’s which can support the overall business success. The Aussie has developed a tremendous technology that can be helpful in storing the products to the larger extent of time, so they can make legal patents for this so that future problems can be avoided. These are some suggestions that can be effective and improve the performance (AQIS, 2017).

Answer 8

In the markets of Japan, the Aussie planned some strategies to make better positioning in the markets. With the help of their amazing development in the alfalfa storage, costing and packaging. They have planned marketing strategies that can facilitate them a valuable popularity in Japan. They have positioned their products as lifelong chaff and have the costing in premium range and more than 30% than the others (Manicom and O'Neil, 2010). Aussie's also trying their best to make a better presence in the markets of Japan through their local partners, who can understand the conditions of the markets according to the needs of the trainers, racing horses etc. According to the facts, Japanese people are less prone to import goods from other countries but the facility to store the feed for three years will force to use Aussie’s hay and feed. Moreover, in their marketing strategies, they are going to use websites for promotion and communication with the customers for better relationship management. 

Answer 9

For any company, marketing strategies are the major factor that can provide a better value in the markets. And when there is a case of international expansion,effectivemarketing is very essential for the growth of the business. Using advertisements that were linked with the culture of Japan can easily attract the people and would be beneficial for the Aussie Hay and Feed. Today, most of the companies try to create tougher competition for the others through some discounts, better quality and proper management. Agriculture industry needs marketing strategies that are different from the others and which are more impactful than others. In case of Aussie’s their marketing strategies can include social marketing because it is in trend now and the results show that it is very effective. The inclusion of some latest technologies in the production process can not only enhance the production rate but also the quality (Soderberg, 2012). Also, they can create a local branch in Japan for better communication with the people and solve the issues immediately.

Answer 10

The facts say that even when Japan is the third largest economy in the world, but it doesn’t even in top hundred in case of ease of performing the business. This will become more complex when a company from outside the country is likely to expand the business in Japan. It has some major traditional issues that can be considered as the crucial issues are their punctuality, etiquette, bow down behavior. Disrespecting these can create a bad image for the others and they think that they don’t respect their cultural values. Their cultural values are very important for them and they expect to be followed by the others also. Present plans for the Aussie were not to neglect the cultural values of Japanese (Dore, 2013).

In the plans of Japan, the major cultural issues that they may face are the perception of the respective business owners towards the Australian products, management of the local business in the local markets with effective Japanese by maintaining the Japanese cultural values. People of Japan are very simple, and they don’t generally direct them towards activities that force them towards any kind of transformation. These are some of the major issues that may occur with respect to cultures.

Answer 11

Making effective marketing strategies is a very important task for the better growth rate of the company. With respect to the business strategies, they are using some basic techniques to step powerfully in the Japanese markets. Targeting the correct customers from the market is a complex task and can be very beneficial. In their current strategies, they considered their products as the major aspect to reach the people and maintain long-term relationships with them. Aussie considered their major customers in horse owners, trainers, dairy industry, reaching these people and serve them more benefits is easy with better segmentation.

Their strategies are only for these people, and this type of perception of companies is found to be effective in business operations. Presently they are working in more better ways that can facilitate more profit margins because of their transformational discovery on Lucerne. The targeting strategies for the people of Japan comprises of advertisement and testimonials, website communication and feedbacks, ethical ways to run the business and importantly local business partners in Japan to see the business management and make best out of it.

Answer 12

Making good and effective decisions for the business is the major duty of the business management teams and the owners. If I were the CEO of the Aussie, I would like to add an effective marketing team in Japan so that better understanding of the market needs can be made. Further, in the context of business expansion, I would like to implement social marketing because the population of Japan is mostly connected to the internet (Ferrell and Fraedrich, 2015). Being a CEO of the company that is going to expand internationally, there is a lot of pressure because they have to decide most appropriate methods which are in capabilities of the business. In the Aussie hay and feed business, effective implementation of customer relationship management and respective techniques can provide good value in the markets of Japan. Since the business is majorly based on the exports and imports of goods, making the transportation more effective and reliable can give better outcomes in future. Today, making the business a big success in the international markets is a complex but by considering some external factors like political, environmental, social, technological, legal and taking only benefits from them can make the business activities more effective.

Task 2 consumer profile

An ideal customer profile depicts the relevancy of the company with the customers, and also tells that the offerings are satisfactory or not. For developing an ideal customer profile, one needs to know the importance of saying no to the customers can effectively save the resources of the company and important time. Description of the customers is majorly based on the factors like demographics, psychologic, economic, buying hobbies, etc. (Akehurst, et al.  2012). For Aussie Hay and Feed, the customers majorly reside in Japan and based on the agricultural industry of Japan and Australia both.

For Aussie the major customers were the people involved in the horse and agriculture industry of Japan and the trainers, the dairy industry is also included. Considering the demographics, the customers of Aussie, are present in the age group of 20 to 50 years and are majorly males. In this context, the income level of the potential customers is mostly in low-income range. Since the farmers, trainers and dairy industry people are not much rich. For the description of the perception level, they majorly need the fodder at low costs for their horses and cattle’s. The customers of this type belong to the low social class in Japan. For the company owners, they are ideal because they are people who are more focused on the agricultural activities and can easily attract towards the discovery of the Aussie’s. Regarding the number of employees for the Aussie, it is very low because they have a whole business based on the import and export of the goods. In Japan, the scope for the industry is very huge and can be expanded more with effective planning and management. The budget for the business is initially significant for satisfying the customers and generates a good revenue from them (Canter, et al. 2012).

Locating the customers for the business of the company is a necessary task and quite complex when one has to expand the business in the international markets. For the Aussie’s the business needs the population of Japan and southeast and middle east Asian countries. The people of these countries are generally based on the horse farming and dairy industry. These people are majorly located in the rural areas of the countries where the costings for the business activities are comparatively low. With the advancement of the technologies and the internet the people of Japan are mostly connected with the internet and are active in the business with the internet.

According to the cyber data given by the governing body of Japan, around 70 percent people are using internet for their business activities even the farmers are connected with the latest technologies for ordering, managing and production activities. For the Aussie hay and feed the business is emphasizing on the websites for the customer attraction, marketing and communication. The people of Japan were like to hang out with their families and friends in the evenings and at the lunch and dinner times. The selected industry is based on the agriculture industry and hence they generally look for the article in the magazines related to their business activities.

With respect to the buying or purchasing process of the targeted customers and the potential customers, they are focused on the operations that can provide them more profit. Their needs regarding their business are to feed their horses and other cattle with the best quality fodder. Finding a new solution for these tasks can be very beneficial for majorly the racing horses and their trainers in the costings. For these exported goods in Japan, they have to be first tested and proven secure through the Australian Quarantine and Inspection Service (AQIS, 2017).

Moreover, connecting with the clients is very important and in this case, can be done effectively through the internet and social media. People in Japan are now connected with internet and are available for the companies (Hawkins, et al. 2010).

Customer persona depends on the needs and compatibility of the clients with the company and creating clients of company’s interest is very necessary.

Demographic – social middle and lower middle class, agricultural industry etc.

Location – Japan and south-east Asian countries, horse owners and trainers, dairy industry

Purchasing behavior – effective and cost-efficient, generally in bulk purchase

Communication – online networks and websites


In this assignment, a case study on the Aussie Hay and Feed is taken. Aussie has developed a new technique to store Lucerne for over three years with less space to store. They also found that use of black polypropylene for the packaging will be helpful in maintaining the freshness and that new green colour of alfalfa. Regarding this case study, some questions were answered focusing on their major international market the Japan. Secondly, a significant consumer persona is developed for the Aussie regarding the brief description of the customer profiles.


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