Entry mode new market
Executive Summary
User-group -It targets people who are health conscious and between the age group 15-50+. 11
Introduction
Environmental analysis
PESTEL stands for Political, Environmental, Social, Technological, Economical, and legal factors (Shaw, 2021)
Political factors Affecting Australia- Australia is known for political stability, openness, efficient and due to the presence of monarchy which attracts investors to invest in Australia. The management of the government is fair which gives people trust in their government. The government has a transparent legal framework and any changes in any policies are always kept clear and transparent which gives an advantage to the company to launch a new product.
Australian people are educated and are well aware which makes them an ideal market for the product. Moreover, Australia is open to every culture and provides opportunities for cross-cultures to follow their ethics and morals. However, one of the minus points would be that in Australia they have an indigenous diet which includes witchetty grubs, Bogong moths and honey ants are quite popular but when it comes to the consumptions of insects tends these tend to occur only as a novelty. Hence it can be a challenge for the company. However, the plus point would be that the people are ready to learn about the new dishes and they are ready to experiment with the food. People are getting aware of the insect's nutritional value and its benefits not only in the form of nutrition but also from a sustainable point.
Technical factors-
To spread a fair supply of goods Australia has made fair trading laws, competition laws, and consumer laws which will initiate the growth of brands' reputation. (David, 2021). Health and safety laws are made by the government for the people of the companies who are working under various firms in Australia. Also, there is fair competition among the competitors of the country.
PASTEL Analysis of the country is in favorable for the introduction of “Cricket protein bars”
VRIO Analysis
Organization- As the organization is a USA firm it has its own strategies and customer retention strategies which makes it unique from other companies. Supply chain of the the organization are based on the import and farming of insects cricket.
New market entry
The main focus to enter the new market is to launch the new product in Australia. New market entries provide a new geographical area to the other markets in which we want to enter. Our organization wants to enter in Australia by the introduction of new product “cricket protein bars”. Each type of market entry requires strategies and planning for venture to succeed. It could be done by adopting strategies like Licensing, Franchising, Joint-ventures which are discussed in Mode of entry in next section. Each of these strategies has its own challenges but if are introduced with proper management and strategies then their introduction will be considered as complimentary for the existing structure.
Entry mode new market
Subsidiary-A wholly owned subsidiaries is the process where by an organization enters a foreign market with 100% ownership of the foreign entity (Yiu & Makino, 2002). The two ways that wholly owned subsidiaries come about is through either acquisition or greenfield operations. Acquisition is the purchase of a foreign organization as a way to enter a new market. A greenfield operation is the creation of a new organization and legal entity in the foreign market.
The most favorable mode of entry is opening of the subsidiary which will not let other company to use our product for their growth as subsidiaries will include the presence of our benchmark which will have the new market factors but it is more suitable as we will be independent of any limitations and decision making but it will be riskier and more expensive.
Target market segment
The target market will consist of local health-conscious customers. the main customer to be targeted would be young generation people between 16-50+ years who are busy in their professional life and have not enough time for the manage their life so the product "Cricket protein bar" will let them give essential carbs, protein, nutrients which they were not able to get from a natural diet. It will also benefit people who are seeking to lose weight. It also provides dietary support to the people who are suffering from underweight or malnutrition.
Market positioning
User-group -It targets people who are health conscious and between the age group 15-50+.
Marketing mix
A product analysis is done by the customer, company, or even by a third party to check the performance of the product, It involves Cost estimation, functions, applications, features, Ingredients & material, the technology according to the demand of market Product analysis is done by the company to measure product development and technology development.
Recommendations
Based on the above report we can recommend that
Develop a long-term strategy- For earning a good reputation of the firm and product in a new country it is very important to build long-term strategies like creating a plan, goal, updating them when required. Use the appropriate styles of implementing and control these long term-Strategies. The growth is slow in long-term strategies but once the reputation of the new product is set in the country then there is no coming back. The firm should create an efficient and comprehensive environment for the use of the sources.
Conclusion
References
Osland, Gregory E.; Taylor, Charles R.; and Zou, Shaoming, "Selecting International Modes of Entry and Expansion" (2001). Scholarship and Professional Work - Business. 244.
David, J. (2021). PESTEL analysis of Austria (Austria country profile). Retrieved 15 January 2021, from https://howandwhat.net/pestel-analysis-australia/
Olsen, N. (2021). Retrieved 16 January 2021, from https://www.healthline.com/health/food-nutrition/cricket-flour-nutrition
Shaw, A. (2021). PEST Analysis of Australia - A Highly Developed Market Economy. Retrieved 15 January 2021, from https://www.marketingtutor.net/pest-analysis-of-australia/