BSBMKG605 Evaluate International Marketing Opportunities Assignment

BSBMKG605 Evaluate International Marketing Opportunities Assignment

BSBMKG605 Evaluate International Marketing Opportunities Assignment

Assessment Activity 1 – Knowledge Questions

Question 1

Outline one relevant Australian and one international standards/policies/guidelines, including those covering:

Australian

Example

Description

Environmental matters

“Environment Protection and Biodiversity Conservation (EPBC) Act”

This act is the Australian Government’s main legislation for environmental protection. The act provides legal framework for protecting nationally and internationally acclaimed flora, fauna, ecological communities and heritage places

 

Human rights

“Australian Human Rights Commission Act 1986”

This right has established the Australian Human Rights Commission and its function covers different human right aspects such as civil and political rights of the people, discrimination of the people with respect to occupation and employment and many more

 

Labour relations

“Workplace Relations Act 1996”

The principal purpose of this Act is to deliver  a guideline for collaborative  workplace environment which brings the economic opulence and welfare to  the people of Australia

Packaging

“TGA (Therapeutic Goods Administration)regulation of product labelling and packaging”

The law aims to check the product label that contains information specified by the legislation which includes “product name”,” ingredients and there quantities”, “batch number”, “expiry date”, “storage conditions”, “directions for use” etc.

 

Risk management

“AS/NZS ISO,2009”

This legislation defines the  Australian and New Zealand risk management

Standard. The legislation covers the definition of risk and 11principles to be followed for risk management

International

Example

Description

Environmental matters

“Asia-Pacific Partnership on Clean Development and Climate”

This international legislation has been developed in order to develop and transfer technology that will enable partner countries to reduce the greenhouse gas emissions under the monitoring and cooperation of the Foreign, Environment and Energy Ministers of the partner countries (Australia, Canada, India, Japan, the People's Republic of China, South Korea, and the United States).

 

Human rights

“Universal Declaration of Human Rights (UDHR)”

“ United Nations General Assembly “ adopted this legislation on human rights on 10th December,1948”

Labour relations

“International labour law”

This legislation gives us the set of rules that are intended to regulate the rights and duties of the employees, employers, trade unions and governments to maintain the discipline at the  workplace and the legislation is applicable across boundaries (Fiske & Taylor, 2013)

Packaging

“ICAO

This legislation provides guidelines for packaging during international air travel. Different airlines use this legislation to follow a proper guideline of packing while transporting goods from one country to other

Risk management

“Legal Governance, Risk Management, and Compliance or "LGRC”

This international legislation provides a multifaceted set of processes, rules, tools as well as systems that are used by the legal section of the corporate to adopt, apply and monitor a synchronized approach to business problems

 

 Question 2

Q2.1 Describe what ‘ecommerce’ stands for.

The E-commerce or electronic commerce is the way in which goods and services are bought and sold and funds or data are transmitted through an electronic network which is primarily the internet.

BSBMKG605 Evaluate International Marketing Opportunities Assignment

Q2.2. Discuss the differences between B2B, B2C, C2C, C2B, and B2G.

The term B2B or business-to-business refers to the trade of goods and services or exchange of information between two businesses, rather than between businesses and consumers mainly through internet.

The term B2Cn refers to business or transactions conducted directly between a business and their consumers who are also the end-users of the products or services of that company.

The term C2C or consumer –to-consumer refers to the environment where goods and services can be traded directly between the two consumers in an online environment (apps.fas.usda.gov, 2017).

The term C2B refers to specific business model where the end users of a business creates products and services that are consumed by the business

The term B2G or Business-to-government refers to a business model where the business is directly selling products, services or information to governments or government agencies.

Q2.3 Discuss the differences between ‘brick and mortar’ and ‘click and mortar’

The term ‘brick and mortar’ refer to the traditional business where the business owner is deals their customers face-to face in rented or personally owned street-side office .Examples of brick and mortar’ businesses are grocery store and the corner bank and some others like that (Schein, 2010).

On the other hand “click and mortar” refers to a business model where the company do their business through both online and offline platforms that typically include a website and a physical store.

Q2.4 List three global ecommerce companies that provide service to Australians.

Amazon

Ebay

Alibaba

Q2.5 List three technologies that are used when conducting international electronic commerce.

“TCP/IP(networking protocol)”

“PHP (a programming script)”

“MySQL”

Question 3

Using the table format below, list ten legislations that may affect aspects of business operations in marketing.

Serial No.

Legislation

Explanation

1.

Age Discrimination Act 2004,Australia

An employee should not be discriminated with respect to age while he is applying for jobs

2.

Australian Consumer Law (ACL)

This law ensures fair trading and protection to consumers

3.

IM-FOR-0703-011 Labour Hire Agreement

This legislation refers to labor hire contract agreements in Australia

4.

Free trade agreement (FTA)

This legislation regulates the bilateral, regional and multilateral trade negotiations

5.

National Privacy Principles (NPPs),Australia

This legislation sets out rules that are to be followed by the  businesses of Australia with respect to the collection, use, storage and disclosure of personal information

6.

The Business Protection from Misleading Marketing

Regulations 2008,UK

This legislation tries to protect the UK consumers from misleading marketing propaganda

7.

Trade Marks Act 1995,Australia

This legislation defines certification marks ,collective marks, trademarks all that  constitutes trademark breach and protects and exceptions of the users

8.

Competition and Consumer Act 2010,Austalia

This  Act is the legislative guide for competition law in Australia

9.

Spam act 2003 Australia

This legislation prohibits  the sending of unsolicited commercial electronic messages to the online consumers

10.

Government Advertising Regulation 2012

This legislation aims at regulating the proper advertising methods in Australia

Question 4

Explain the role of the Organisation for Economic Co-operation and Development (OECD) in the context of global trading.

“OECD” or the “Organisation for Economic Co-operation and Development” (OECD is an organization that has been developed under the co-operation of 35 member countries in 1960. This forum has been established by the member countries to maintain democracy and a properly functioning market economy to facilitate free global trading. This platform allows the member countries to compare policy matters, to find out solutions to common problems to identify good practises and to maintain collaboration among the domestic and international policies of its member countries to facilitate international trade.Recently the OECD Trade Facilitation Indicators gives the estimation that a comprehensive implementation of all measures that have being negotiated in the WTO’s Doha Development Round is capable to diminish the total trade costs by 10% (De Mooij, 2010).

Assessment Activity 2 – Develop International Market Evaluation Report

As a market research analyst I recommend that penetration in the Singapore retail coffee market is a viable international marketing opportunity

Qualitative analysis:

The country Australia has a free trade agreement with Singapore. Therefore if “A&A” steps in to the coffee retail industry of Singapore then the company do not have to face international trade barriers. The barriers to international trade is quite low to the country.

The country has very stable political situation as it is run by a stable government that rules strongly with an effective regulatory system.  World Bank has ranked Singapore as the easiest place in the world to start, run and do business (Ebbeck, Chan, & Yim, 2011).

The county’s economy is highly business friendly. This Asian country only posses the AAA credit ratings from all three major credit rating agencies namely “Standard & Poor’s”, “Moody’s” and “Fitch”.The country’s unemployment rate is one of the lowest of the world

The country cater a multicultural lifestyle where everybody can live with harmony while following their own cultures. Any act of racism is seriously punishable in this country

Quantitative analysis:

coffee consumption in Singapore as a hot drink

The compound annual growth rate of coffee sales as a hot drink was   3.5%  for the period 2006-2011,taking 2006 as the base year indicates huge potentiality and growth of the Singapore brewing industry.

The corruption is also very low in the country and it holds 7 th position in terms of corruption as per “World audit organisation” 2015

As per ASEAN Coffee Federation and Singapore Coffee Association Yearly consumption of coffee in Singapore is around 0,000 to 12,000 tonnes

Singapore is the 36th coffee consuming country that consumes 2.1 kg per capita

 Task 1: Review Global Market Environment

1.1Assess international trade patterns and identify their likely importance for the business

International trade pattern of coffee retail industry:

Change in new generation coffee consumption pattern:

The global young generation is more social and outgoing in comparison to their previous generation. Therefore the coffee consumption is now done more at public places rather than in house private consumption. This global trend demands eye-catching packaging and labels, showcasing of brand’s promises on the package or coffee cups, testing of new delivery systems and many more.

High demand for Ready-to-Drink Coffee:

The global market for “ready-to-drink” coffee has reached to $2.4 billion in 2015 and it is growing further. This pattern indicates that in a fast-paced world that is going to be faster the demand for “ready-to-drink” will increase further

High demand for Nitro-coffees:

In a fast paced life people are trying to stay healthy and fit. The need of healthy living has increased the demand for “Nitro coffee “that is poured from tap and give the feeling of a beer to the drinkers. More over the foamy and creamy texture of the coffee allows the drinkers to rely less on milk and sugar while avoiding the bitter test.

Demand for “Cold Brew” on the rise:

The “Cold brew coffee” has become very popular and as per Mintel report its sales has jumped by 580% from2011 to 2016.

Rise in the demand for speciality coffees:

As per the US coffee association in 2018 55% of the $48 billion U.S. retail coffee market will look for speciality coffee

In Asia-pacific countries coffee has become very popular in recent years. According to the reports of international coffee organization the demand for brewing is increasing at a rate of 4.9% p.a. Drinking coffee has become more like a lifestyle statement in this region. Thus if A&A follow the global trend then they will be easily able to penetrate in the potential market of the asia- pacific coffee market (Aljunied, 2013).

1.2 Research international business and electronic commerce market factors

Pricing factor:

Pricing of the coffee cups should be made very economic after considering the other market rivals. There should be an on line coffee price comparison mechanism for the consumers on the web page where they are placing an order for coffee

Quality Factor:

The product quality should be properly described on the package so that the buy of the product can differentiate it from others in terms of quality and related price

Transaction security

The online web platform should ensure security for transactions that are made for product selling

Customer Support:

The customer support should available 24/7to answer the queries of the online customers.

Customer Reviews:

An option should be open to the customers for collecting customer responses so that improvement can be brought in to future service

1.3Identify international markets operating under free trade or protectionist arrangements and estimate likely ease of entering and trading successfully

A&A focuses to enter in the Asia-pacific region. Let us fuscous on the countries of this region. Australia practices “Free Trade Agreement” with Singapore and Thailand and free trade practice is yet to be practiced with Indonesia.

In my opinion Singapore should be ranked one as a potential coffee market that can be easily penetrated. Thailand should be ranked second as a potential coffee market that can be penetrated and Indonesia should be ranked third as a potential coffee market to be penetrated.

Singapore is a technologically developed and highly westernised country that posses a good brew culture and is Free Trade partner of Australia. More over the country has a high demand for speciality coffee. Therefore it will be easy for a new coffee retail chain to penetrate in to the market that capable to offer speciality coffee in a free trade environment where no additional tariff to be imposed on the new entrant of the industry. It will be slightly difficult for an Australian coffee retail chain to enter in Thailand as brewing is not an essential part of the culture of the country. However demand for speciality coffees and advantage of free trade can help a coffee retail chain to step in to the country (Chiu et al. 2014). It will be most difficult to penetrate the Indonesian brewing industry as there are many indigenous brewing shops that are backed by locally grown coffee beans and the price of this brewing shops quiet low with respect to international standard. Moreover a new entrant of coffee retail industry will not get the benefit of free trade agreement.

1.4 Identify international trade policies and agreements and estimate their likely impact on international marketing opportunities

Australia peruse Free Trade Agreement (FTA) with Singapore and Thailand. The country also peruses Comprehensive Economic Partnership Agreement (IA-CEPA) with Indonesia.

FTAs promote the opportunity of freer trade flows and create stronger ties with the trading partners of Australia. The agreement not only removes the tariff barriers but also takes care of behind-the-border barriers that obstruct the flow of goods and services between parties. This in turn results encouragement for international investments and cooperation, and give protection for intellectual properties, smoothens the e-commerce operation and government procurements.

IA-CEPA aims to fortify and increase the trade, investment and economic cooperation  between Australia and Indonesia.

1.5 Select the most promising market

A big market has been developing for retail coffee chain in the countries of the Asia-pacific region. Let us focus on the Singapore coffee retail industry, where the country is free trade partner of Australia.

Growth of coffee sales as a hot drink over years during 2007-2012 in Singapore

The above figure-1 demonstrates that the habit of drinking coffee is growing in leaps and bounds over years

Percentage growth of coffee sales as a hot drink over years during 2007-2012, Singapore

The above Figure 2 demonstrate that the compound annual growth rate was 3.5%  for the period 2006-2011,taking 2006 as the base year. However the coffee drinking has shown a growth of 3.2% in 2012 taking 2011 as the base. The above two figure helps us to realize the huge potentiality and growth of the Singapore brewing industry. Thus according to me sigapore is the most promising market of Asia pacific region where A&A should step in to

Task 2: Assess international business and electronic commerce market factors

2.1 Identify and analyse impact of economic, political, social and cultural factors affecting international market on international marketing opportunities

Singapore:

Singapore caters a stable political situation. The country has a stable government that rules strongly with an effective regulatory system.  World Bank has ranked Singapore as the easiest place in the world to start, run and do business. According to World Bank an international business can set up a new business in this country wit in a matter of hours.

The country caters an innovative and highly triumphant economic system where both the market and the state play equally strong roles in the government. The county’s economy is highly business friendly. This Asian country only posses the AAA credit ratings from all three major credit rating agencies namely “Standard & Poor’s”, “Moody’s” and “Fitch”.The country’s unemployment rate is one of the lowest of the world

This country posses a unique blend of population coming from different countries. The population is a mix of Malays, Chinese, Indians and expats from other foreign countries. The country cater a multicultural lifestyle where everybody can live with harmony while following their own cultures. Any act of racism is seriously punishable in this country

The above discussion signifies that the Singapore’s political economic social and cultural environments are highly supportive for setting up international business

2.2Investigate international market trends and developments to identify market needs relative to the business

Market gap in coffee retail industry Singapore

The three market trends of the Singapore coffee market that can be a identified are as follows:

1. Increase in demand for premium coffee, instant coffee , fresh ground coffee pods, Coffee capsules

2. Increase in consumer consciousness regarding quality and ingredients of the coffee and health

3. Increased demand for innovative new coffee flavours that are fusion of a different type of coffees. A fusion of coffee beans can create a sophisticated taste and brand loyal customers

 

These trends can be considered as a market gap as though several local and international brewing chains are working to fulfill the consumer demand s following the above trends but there is still a gap as very few brewers have still managed to offer a balance between premium taste, healthy ingredients and price while serving coffee cups to the consumers (Milligan, 2010). The biggest gap lies in the segment of premium coffee that requires a regular R&D to develop good flavored coffee with a fusion of different coffee beans and other healthy ingredients with minimized use of sugar and milk. According to euro monitor report the retail sales of pod coffee machines are expected to grow at a rate of 4% CAGR (Su-Jan, Limin, & Kiang, 2012).

 Analysis of trend in terms of exporting coffee products and substitutes to the proposed country (Singapore)

Financial Years

Australian Import of coffee & substitutes to Singapore(Australian Dollar)

FY2006

999.788

FY2007

2140.887

FY2008

1135.754

FY2009

1329.491

FY2010

1543.14

FY2011

1091.718

FY2012

1625.994

FY2013

1789.542

FY2014

2173.998

FY2015

1696.208

Table-1: Australian Import of coffee & substitutes to Singapore for the period 2006-2015

The above table summarizes the trend of Australian import of coffee products and substitutes for the period of 2006-2016. On the basis of the above data following graph and trend-line has been drawn(y=61.85+12112) to find out the future export opportunities of coffee products & substitutes from Australia to Singapore.

projected future trend of Australian export of coffee and coffee substitutes to Australia

The above graphical figure denotes that in the years 2016, 2017, 2018 then projected export demand for coffee and substitutes from Australia to Singapore will be around the marks of 1700. 1800 and 2000 &  above respectively.

2.3Identify new and emerging business and electronic commerce markets

In Singapore there is a huge demand for coffee capsules that deliver ingredients of the coffee as per the order of the customers. The demand for coffee capsules caters the demand of speciality coffee among the consumers. Most of the indigenous brewers are not interested to follow this global trend. Thus A&A can utilize this opportunity to step in to the Singapore brewing industry.

Secondly most of the indigenous brewer is focusing on selling of instant coffee packages at a price much lower than the price of a coffee capsule. Therefore to compete with the local brewers A&A should aim to supply good quality instant coffee at a an economic price (aftinet.org.au, 2017).

There is a good online demand for “drip coffee pouches” and “speciality coffee beans” that are to be sourced from foreign countries. Very few indigenous players are operating in e-commerce coffee retail industry in Singapore .Therefore A&A can step in to this segment to utilize the marketing opportunities

Task 3: Identify risk factors for international marketing opportunities

Risk factors

Description of risk factors with respect to Singapore

Rating in a scale of 1to 5 in terms of acceptability of the risk factor(1 refers to minimum risk,5 refers to maximum risk)

political stability

The country is run by a stable government and it is the 11 the politically stable nation of the world as per political stability index-2015 ranking

1

corruption

The corruption is also very low in the country and it holds 7 th position in terms of corruption as per “World audit organisation” 2015

1

Financial stability

The country is financially very stable as it is the number one investment destination in Asia and the world’s easiest place to do business

1

Availability of telecommunications infrastructure for the ecommerce market

The country takes the information and communication technology (ICT) vision very seriously. The underlying  strategy is to transform its economy into a net-economy and that is why the country plans for large-scale investment in this sector. The country aims to develop an

Information infrastructure that will remove barriers from private sector participation. Thus the country is yet to deliver a full grown infrastructure for the e-commerce industry

 

2

regulatory requirements

Singapore’s framework and regulatory public policies are generally supportive  towards foreign investors.  The foreign investors are not required to enter into joint ventures or give up management control to fulfil local interests. Moreover local and foreign investors are subject to the same basic laws. However the country imposes restriction on  ownership of corporations by the foreign persons

3

trade barriers

The country maintains generally holds most liberal trading regimes. However the country follows some trade barriers in some specific fields such as “tiered motorcycle operator licensing system “, “Agri-Food and Veterinary”. Thus as a whole the presence of trade barriers that may affect business is minimal in the country

 

Language barriers

English is the working language of the country therefore language barrier will not affect “A&A” to operate in Singapore

1

Labour shortage, increasing labour cost and declining productivity

The country is facing an acute labour shortage accompanied with rising labour cost and declining productivity

4

4.1 Identify and analyse international marketing opportunities according to their likely fit with the organisation’s goals and capabilities

Marketing Opportunity

How it fits with A & A strategic direction

  • must be coherent with earlier findings
  • at least one must be related to ecommerce
  • must be specific and relevant to A & A’s objectives
  • approx. 25 words per opportunity
  • Increase in demand for premium coffee, instant coffee and freshground coffee pods, Coffee capsules

 

  • A & A Coffee specialises in selling superior Robust A & Arabica coffee beans which are sourced from world’s top quality coffee producers, including El Salvador, Colombia, Kenya and Indonesia. The company has its own coffee roastery facilities which are equipped with in-house roasting equipment. The company also sells espresso machines and accessories which are used to brew espresso from coffee capsules. Seeing the high demand for coffee capsules in Singapore it can be said that “A&A” is capable to en cash this marketing opportunity
  • Increase in consumer consciousness regarding quality and ingredients of the coffee and health
  • The company “A&A ” is facing the problem of high cost of importing the premium Arabica coffee beans due to increased exchange rate. In such a situation “A&A” has to device effective strategy so that they can fulfill consumers’ demand for quality ingredients and coffee beans to utilize this marketing opportunity
  • Increased demand for innovative new coffee flavors that are fusion of a different type of coffees. A fusion of coffee beans can create a sophisticated taste and brand loyal customers

 

The Strategic decision of “A&A” includes introduction of new and more profitable products and the company also aims to emerge as a global company with brand loyal customers. These strategic decisions and objective will help the company to utilized this alongside marketing opportunity

4.2 Evaluate each opportunity to determine its impact on current business and customer base

Marketing Opportunity

Impact on Current Business Customer base

  • must be inherited from Task 4.1
  • must be realistic, measurable and specific
  • approx. 50 words per opportunity
  • Increase in demand for premium coffee, instant coffee and freshground coffee pods, Coffee capsules

 

  • To encash this marketing opportunity the “A&A” should bring some changes in their infrastructure so that they can enable themselves to deliver coffee in all these formats. In order to do so the company has to incur some expenditure but it will definite add value to the existing   customer base and also will widen the customer base
  • Increase in consumer consciousness regarding quality and ingredients of the coffee and health

If “A&A” tries to utilize this opportunity then the company now have to make huge investments to buy quality products. This intern may affect the current service quality of the business and can bring shrinkage to the current customer base

  •  
  • Increased demand for innovative new coffee flavors that are fusion of a different type of coffees. A fusion of coffee beans can create a sophisticated taste and brand loyal customers

 

  • A medium scale “R&D” can help“A&A” to utilize this marketing opportunity. Such a initiative will not impose a big investment burden over the company and will not affect the existing customer base

4.3Use an assessment of costs, benefits, risks and opportunities to determine financial viability of each marketing opportunity

Marketing Opportunity

Cost Details

Estimated Cost in First Year $

  • all of them must be inherited from Task 4.1
  • must include the cost of three major risks
  • must be logically broken down
  • must be realistic and specific to the opportunity
  • must be realistic and quantifiable
  • must show the cost of each item in AUD $ listed under the ‘Cost Details’ column
  • sum of these costs must yield an accurate result

Increase in demand for premium coffee, instant coffee and fresh ground coffee pods, Coffee capsules

Associated cost: Enhancement of infrastructural facility that entails a onetime cost around $200000

 

Cost of importing premium coffee bins as per demand:$100000

Cost of installing instant coffee machines already owned :$50000

Building necessary infrastructure for coffee pods and coffee capsules:$50000

“A&A” has taken a a go slow strategy with a three years long initiative to stabilize their financial condition. In year-1 the company focuses on installation of instant coffee machines in all their newly opened outlets in Singapore. Therefore year-1 cost:$50000

Increase in consumer consciousness regarding quality and ingredients of the coffee and health

Associated cost:$400000(one time)

Sourcing high quality ingredients other than coffee:250000

Purchase of machineries for conditioning the taste of coffee:150000

Year-1 objective : Partial sourcing high quality ingredients other than coffee

Cost:$100000

 

 

Increased demand for innovative new coffee flavours that are fusion of a different type of coffees. A fusion of coffee beans can create a sophisticated taste and brand loyal customers

Associated cost:30000(onetime)

Sourcing mediun quality coffee beans for creating a fusion:$100000

Sourcing high quality coffee beans for creating a fusion: $200000

 

Year-1 objective : Sourcing mediun quality coffee beans for creating a fusion

Cost:$ 100000

 

Serial No

Marketing Opportunity

Benefit details

       Estimated Benefit within12 Months $

 

all of them must be inherited from Task 4.1

  • must be realistic and specific to the opportunity
  • must be realistic and quantifiable
  • must show the expected benefit of each item listed under the ‘Benefit Details’ column
  • sum of these benefits must yield an accurate result

1

Increase in demand for premium coffee, instant coffee and fresh ground coffee pods, Coffee capsules

Associated cost: Enhancement of infrastructural facility

  • Expansion of customer base
  • Increase in sales revenue

$54000

2

Increase in consumer consciousness regarding quality and ingredients of the coffee and health

  • Attracting especially the health conscious customers
  • Increase in sales revenue

$262000

3

Increased demand for innovative new coffee flavours that are fusion of a different type of coffees. A fusion of coffee beans can create a sophisticated taste and brand loyal customers

 

  • Brand loyalty development
  • Enhancement  of global image
  • Increase in sales revenue

$106000

Payback time:(cumulative total cost/benefit of year -1)=1.3 years

Calculation Of ROI:

Calculation Of ROI

 

 

        

ROI = 0.74

Competitor Analysis

Competitor

Established Date and Size

Market Share (%)

Value to Customers

Strengths

Weaknesses

  • must be a minimum of two competitors
  • must be currently operating in the proposed country
  • reference must be shown
  • reference must be shown
  • must be specific to the competitor
  • a minimum of three
  • must be specific to the competitor
  • a minimum of three
  • must be specific to the competitor

Raffles Place CBD, Jewel Coffee

Established in 2012

The outlet size in 84-square-meter space

5

Very demanded for consumers looking for strong coffee

  • Sells strong coffee
  • Offer coffee in grab and go mode
  • Maintain consistency of service
  • Serves coffee with more milk
  • Uncomfortable sitting arrangement
  • Inefficient Staff services

Loysel’s Toy

Established in 2011

The outlet size in 90-square-meter space

4

Very demanded for consumers looking forstaple food along with strong cofee

Use freshly roasted beans in their coffee

Supply seasonal wholesome food as a staple to each coffee cup

Good outdoor sitting arrangement

Consumers are often forced to wait a lot after giving order

Non cooperation of the staffs

Lack of innovation in staple foods

4.5 Describe and rank marketing opportunities in terms of viability and likely contribution to the business

Serial No.

Market opportunity

Associated risk factors

Associated Cost

Associated benefit

ROI

Ranking

1

Increase in demand for premium coffee, instant coffee and fresh ground coffee pods, Coffee capsules

 

  • Increase in cost of international sourcing of premium coffee beans due to increase in exchange rate
  • Increase in cost of coffee packing materials

$200000

$214000

.07

1

2

Increase in consumer consciousness regarding quality and ingredients of the coffee and health

  • Increase in cost of international sourcing of quality ingredients other than coffee

$400000

$420000

.05

3

3

Increased demand for innovative new coffee flavours that are fusion of a different type of coffees. A fusion of coffee beans can create a sophisticated taste and brand loyal customers

 

Increase in R&D cost

Uncertainty regarding the development of a coffee flavour that may or may not be popular

$300000

$318000

.06

2

Singapore caters a highly westernised multicultural environment where drinking coffee is a life style stamen.  Several local and international players are operating in the coffee retail industry of the country, but still there is still shortage of those coffee suppliers who are capable to supply  coffee cups as per specific demands of the consumers both online and off line

Reference:

Books:

De Mooij, M. (2010). Consumer behavior and culture: Consequences forglobal marketingand advertising. Sage.

Fiske, S. T., & Taylor, S. E. (2013). Social cognition: From brains to culture. Sage.

Milligan, A. (2010). Singapore-Culture Smart!: The Essential Guide to Customs & Culture. Bravo Limited.

Schein, E. H. (2010). Organizational culture and leadership (Vol. 2). John Wiley & Sons.

Journal:

Ebbeck, M., Chan, Y. Y. Y., & Yim, H. Y. B. (2011). Encouraging a culture of research in practicing teachers in Singapore. Early childhood education journal, 39(5), 355.

Chiu, C. Y., Kwan, L. Y. Y., Li, D., Peng, L., & Peng, S. (2014). Culture and consumer behavior. Foundations and Trends® in Marketing, 7(2), 109-179.

Su-Jan, Y., Limin, H., & Kiang, H. (2012). Urban informality and everyday (night) life: a field study in Singapore. International Development Planning Review, 34(4), 369-390.

Aljunied, K. (2013, November). Coffee-shops in Colonial Singapore: Domains of Contentious Publics. In History Workshop Journal (p. dbt011). Oxford University Press.

Websites:

aftinet.org.au  (2017). AFTINET | Australian Fair Trade & Investment Network. Retrieved 18 March 2017, fromhttp://aftinet.org.au/
apps.fas.usda.gov. (2017). Coffee. pdf. Retrieved 18 March 2017, from http://apps.fas.usda.gov/psdonline/circulars/coffee.pdf