International Marketing Case of Made Group Australia

Question: Discuss about theInternational Marketingfor Case of Made Group Australia. Answer: Introduction International marketing is always tough for organisations. When a company contemplates to launch its products and services in another county it has to combat different external factors which are important to be implemented successfully in the favor of the organisation. It is important to mention that most of the companies when engaging in international marketing have to take into account number of aspects which would help them to understand the internal and external environment of the chosen international market and make the movements accordingly to strategise international marketing plan. Taking into account various conditions and assessing them to good effect is likely to ensure better result from the international marketing. Creating an effective international marketing plan will involve gathering of information about the country where the company is planning to launch its products. The present study will entail the discussion of external analysis of the company Made Group. The co mpany has planned to launch milk products in the Philippines that have good market especially in the diary industry. The main objective of international marketing plan is to focus on the key areas where the products will be sold and strategise the marketing plan in order to get the best result out of the international marketing plan (Terpstra et al., 2012). The present study will include external analysis of the company Made Group, discussing the market choice for the company and finally startegising the market entry of Made Group in the Philippines Market. Overview of the Company and Internalization of Products Made Group is one of the leading companies located in the Australian eastern seaboard of Melbourne. The company is one of the leading beverage production companies in the country and now plans to sell milk products overseas focusing on the Asian market. Within 10 years Made Group has become a leading beverage brand in the country. Made Group Australia was launched by three school friends Luke Marget, Matt Dennis and Brad Wilson has been working consistently well with the company. It is important to mention that the company since its inception has worked on its objectives and mission statement. The company has a very precise mission statement that helps it to focus on the long term and short objectives of providing people with good and environment friendly products. The mission statement of the company is to produce innovative products which are good for the consumers as well as favorable for the planet and it is doing exactly that by developing products like Rokeby Farms, Cocobella a nd other products which are made in an organic way and is nutritious for human health as well as they are not harmful for the planet. As the mission statement suggests the company does significant amount of work for the environment through its product manufacturing process as well as its waste management procedure. The mission statement of the company is to develop innovative products and the company think tank is constantly engaged in developing effective milk products and other beverages which have the capacity to compete in the market and gain competitive advantage (Cavusgil et al., 2014). The company has had back to back 50% increase in its sales for the past three years and generates around 120 million AUD every year. Made Group has some of the best branded beverages in the country like Cocobella, Rokeby Farms and impressed juices. With the gradual increase in sales the company has been able to focus on developing market share for the business and has taken one step ahead especially by sealing a deal to distribute milk products across the Philippines. Made Group is the first company to supply PET Bottled milk to Asia through sea (Czinkota Ronkainen, 2013). The internalisation of the milk products for the company in Philippines is seen as a crucial step ahead for the company and hence it is important that Made Group is able to assess its external market and ideate plans to develop its international marketing plan that would help to operate smoothly in the international market. The Dairy industry in Philippines is exposed to the international companies. As per the rec ord the Dairy industry of Philippines is 95% import and 5% export. The huge percentage of the milk imports in Philippines was highlighted in the dairy industry performance report which showed that in financial year 2013 the country imported around 99% of the total milk which was around 1,965.15 thousand metric tons. In this scenario the company has taken the right decision to export milk to Philippines as there is a huge demand of milk and milk products in the country (Paliwoda Thomas, 2013). External Environment of Made Group The external environment of the company Made Group when launching its products in a foreign country becomes much more diverse as especially when compared to its internal conditions. The key aspects of the external environment of the company could be analysed in different ways. A proper PESTEL Analysis and understanding market trend and competitors will give a fair bit of idea about the external environment of the business. PESTEL Analysis Political: Made Group has emerged to be one of the leading beverage brands in Australia. It is important to mention that the company has got the support of the central and the local government to operate its business. The company abides by the tax law of Australia and also follows the policies (Gilligan Hird, 2012). Given a friendly relation between the company and the government it will get a favorable place to operate smoothly even in the Philippines. It is likely to build up a good rapport with the official body like the National Dairy Authority and the Agricultural body in the country Philippines. The Dairy industry of Philippines largely depends on the import of milk and milk products in the county to suffice the milk and milk products requirements in the country and hence tries to be provide all the available resources to the companies operating in this sector and hence Made Group is likely to have a good time operating in the country (Cavusgil et al., 2014). Economic: Made Group has gradually come up the graph to develop a strong platform for itself in the Australian beverage market and has experienced significant increase in its sales growth. It contemplates the same rise in the Philippines market (Chaffey et al., 2009). But it could be said that the company might have revamp its financial planning in order to get the same response as in Australia. The Philippines Government has introduced a very holistic plan for the country which has made the country work on opening up avenues for the foreign companies that would likely to provide open network of business for Made Group. The company expects its revenue to rise by another 50% in the coming year but it is important to mention that there is a significant amount of competition in the country especially in the dairy import trade and hence the organisation Made Group should focus on developing a strong financial plan to work on their movement in the country (Turnbull Valla, 2013). Social: Made Group in the last ten years have been a good employer in Australia. The company has provided employment to number of talents. The demographics of Australia are quite similar to Philippines and hence it would be easier for the company to come closer to the consumers in the Philippines Market (Cadogan et al., 2009). Technological: Made works with the latest technology. It has a well developed website and the operation is also cloud based that helps the company to develop effective communication with its consumers. The country Philippines have invested a large amount of money in developing and researching on technology. One of the major industries in the country and hence it will have effective technological support while supplying milk in the country (Ghauri Cateora, 2010). Environmental: One of the key aspects of the operation of this company is it is focused on working ethically safeguarding the environment. The company follows green packaging. It tries to use less plastic and paper and also contributes to the welfare of the environment which gives it competitive advantage in the market (Verbeke, 2013). Legal: Legally Made Group has been very particular in taking care of the product regulations. In Australia it is important to abide by the Australian Competition and Consumer Commission act which mainly helps the government to look at both the sides of the coin (Ruzo et al., 2011). The above PESTEL Analysis shows the position of the company in the local market when it is gradually moving towards launching its products in the foreign market. Overall it could be said that PESTEL analysis is able to show the external environment of the organisation and helps to plan its international marketing strategies (Gehlhar et al., 2009). As a foreign company trying to break into the foreign market of Philippines it is essential for the company to understand its market or consumers, the economic trend in the Philippines market, competitors as well as the demographics of the country that largely affect the sales and revenue of the company Made Group. Market: The dairy market of Philippines is highly competitive as shown in the statistics of the National Dairy Authority. The country has around 95% of Milk product import which states that the maximum need of milk and milk products is sufficed through the import. The local consumption of milk and milk products in the Philippines market have increased rapidly in the last few years which clearly indicates the reason of immense competition in the dairy market of Philippines. In the last financial year of 2015 the total amount of milk product import has raised up to 192.8 million USD. The import of milk and milk products has shown rising trend. The milk import table till 2015 march is given below: VOLUME OF MILK MILK PRODUCTS IMPORTS (in million kilograms) Dairy Products 2010 2011 2012 2013 2014 2015 (Jan-Mar) Skimmilk powder 107.16 109.43 103.88 110.64 93.05 22.85 Wholemilk powder 31.64 27.82 31.43 25.64 19.20 5.71 Evaporated Milk 0.48 0.31 0.86 0.14 0.22 0.07 Buttermilk/ Buttermilk Powder 19.47 20.27 24.82 22.22 18.60 5.19 Whey Powder 41.51 39.16 42.01 43.75 49.21 14.13 Liquid (RTD) Milk 49.75 47.08 36.06 48.58 44.20 9.91 Cream 4.55 8.25 9.46 2.91 3.38 0.62 Condensed Milk 5.51 3.58 3.01 4.41 7.99 0.53 Others 23.20 8.40 18.04 21.62 22.80 6.09 MILK AND CREAM 284.27 264.30 269.57 279.91 258.65 65.10 Butter/Butterfat 21.20 20.26 17.73 15.82 16.50 5.60 Cheese 11.10 14.96 17.46 12.54 13.73 4.46 Curd 2.70 1.16 0.69 0.79 1.77 0.67 MILK IMPORTS 319.70 300.68 305.45 309.06 290.65 75.83 Source: Philippine Statistics Authority/National Dairy Authority Economic trend in the dairy industry of the Philippines have risen significantly and import have contributed largely to the overall need of the consumers looking for milk in the country. Philippines as a nation have been able to mitigate the risk of global recession and hence it could be said that the country is likely to see a possible upward movement in its economy ((Cavusgil et al., 2014). Made Group will face significant competition in the Philippines Dairy market in form importers like Nestle Corporation, Alaska Milk Corporation, and Monde Nissin, Commodity Quest Inc. These companies cover up significant section of the market and hence the competition will become tougher when Made group come into the picture. One of the major competitors in the market is Nestle which serves almost all kinds of milk products and Pet bottled Milks and has almost around 35% of the market share in the Philippines market (De Wit Meyers, 2010). Milk is loved by all and it is a universal product which is nutrition and effective for all ages and hence demographics in this case are favorable for the company. But Made Group with its skimmed milk, impressed juices, Pet Bottled Milk is effective for young and old people. It is important to mention that most of the consumers in the country drink milk and hence the targeted demographics for the company are quite wide. SWOT Analysis of Made Group Strengths Renowned Beverage Company in Australia. Substantial market share in the country. Diversified products and services in dairy industry. Powerful brand in the country. Weaknesses Poor international presence. Fewer brands of products. High cost of developing new brands Opportunities Open Philippines dairy market Growth in the retail sector. Increased interest of dairy products. Development in technology. Threats Huge Competition in the form of Nestle, Quest Inc. Constant pressure in the domestic market. Huge options for the consumers. Large investment in internationalisation of products (Sheth, 2011). Market Choice Philippines have been one of the richest dairy industries with 95% import and 5% export. It is important for the company to understand the market as well as the demand. As reflected from the statistics there is a huge demand for Milk and milk products and hence it could be said that the company Made Group has focused on addressing the key markets of the country. The company has mainly focused on promoting its Pet Bottled skimmed Milk which is its best product. The company will promote its premium branded products like Cocobella and Impressed Juices and Rokeby Farms in all the major market in the country. This will help the company to get into the groove of competition in the Philippines market with the likes of Nestle Corporation. Since the supply will be done overseas it is important for the company to get its best step forward (Morgan et al., 2012). International Marketing Strategy The international Marketing strategy of the company will focus on direct export in the form of market penetration. The company will focus on market penetration since maximum of the Philippines market consumes milk and it would be easier for the company to distribute its product. The company should initially focus on direct export and then once consumers are aware of the quality and brand of the product the company could also shift to franchising (Armstrong et al., 20120. Direct export market penetration will help the company to reach to the core consumers and understand their needs and wants which would help the company to address them effectively. Milk products is a widely loved products and seeing the trend in the Philippines dairy market the market penetration would be highly effective for the company due to the high level of competition it will have to combat. The Philippines dairy market is comparatively competitive with number of retailers and wholesalers operating in the marke t and some of them are Mead Johnson Nutrition, Commodity Quest Inc., Wyeth Philippines, Consolidated Dairy Frozen Food Corp., Monde Nissin, Alaska milk corp., Nestle Corporation. Given this high level of competition it is extremely important that the company focuses on developing a strong penetration strategy that would help to operate in the Philippines market effectively (Vrontis et al., 2009). Conclusion From the above discussion it is pretty clear that the Philippines market is highly open to competition in the dairy market. It is important for Made Group to focus on assessing its external environment assess its key strength and develop appropriate strategy to operate in the Philippines market. References Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2012.Marketing: an introduction. Pearson Prentice-Hall, London. 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