The International Market Audit And Kangaroo Meat Products Marketing Essay

The International Market Audit And Kangaroo Meat carrefours Marketing studyThe Report Covers an International Market Audit and a Marketing plan for the export of Kangaroo sum produces in the German market place by Ace Corporation. The Companies briny objective is to sell Kangaroo warmness reapings like (sausages, diced middle, fillets and mince gist) in the German market to broaden its market space. The Vision of the comp whatsoever is Creating an edible harvest-festival for tender consumption which go forth be so tempting and full of nutrition that all would just want to say Lets eat Kangaroo.The Kangaroo Industry is in act in all states of Australia except Victoria and NT. Its reasonably big industry collecting revenue of $270 million per year. Every state has to operate under the Kangaroo focus plan which is controlled by the Conservation authorities within the state and when overseas its controlled by the Federal authority.Germ any is one of the worlds largest econo mies. Having a market sh argon of 33.5 per cent in the atomic number 63an meat market. The Meat markets make a lot of profit reaching nearly $7.8 billion in the year 2007, and are somely in all probability to touch $9.5 billion by 2012. (Frozen Food Global Industry Guide, 2008). The Germans are adapting to the new culture surrounding and are becoming more and more health conscious with passing time.After having understood the market trends and successfully completing the economic and socio-cultural analysis Ace Corporation has elect Germany for the international export of Kangaroo meat products, which is very healthy , juicy in protein , iron and very low in fat perfect for our intent market being families. (Phillips, C., n.d.).The ProductKangaroos are very high in number and are stated as an iconic living creature and are known for their uniqueness in Australia. They contribute sullen one third as much methane as ruminant animals, like cows o goats. They are responsible for 60 per cent of the global methane emission. They on the whole idea behind entering into this industry was to reduce the highly populated number of Kangaroos creating a healthier environment and provide a cuisine which the consumers transport to eat as a part of their meals.( Kangaroo meat, n.d.).Below is the chart showing the population of Kangaroos in Australia2009 Population estimates for kangaroos within the commercial harvest areasState ruby(Macropus rufus)Western Grey(Macropus fuliginosus)Eastern Grey(Macropus giganteus)Wallaroo/Euro(Macropus robustus)South Australia1,031,000658,000465,000Western Australia904,5061,653,464New South Wales2,456,795722,2553,909,270114,966Queensland5,004,6847,714,6542,405,729Grand Total9,396,9853,033,71911,623,9242,985,695Source Kangaroo population estimatesKangaroo Meat which we will be exporting from Australia is meant for Human Consumption scarce, as 70 per cent of kangaroo meat is exported to diametric countries around the world. It is cons idered as ideal meat for maintaining a balanced diet. It is too low in cholesterol and has 24% of protein and minerals. The fat contain is less than 2%.Nutrition Content as Compared to an another(prenominal)(prenominal) meatProtein (%)Fat (%)Kilojoules(per 100g)P/M/S ratioCholesterol(mg/100g)Iron(mg/100g)Kangaroo241-35001.5(1)1562.6Lean Lamb222-75300.1(0.9)1661.8Lean Beef222-55000.1(0.9)1673.5Lean Pork231-34400.2(1.3)1501.0Lean Chicken Breast2324700.4(1.5)1500.6Rabbit222-45200.8(0.5)1701.0Source Food GL Fogerty AC. 1982. The fatty acids of Kangaroo and wallaby meat. CSIRO Food Research Quarterly, 42, 57-61.Kangaroo Meat is retainable in various shapes and sizes for human consumption a chart of different types of kangaroo meat cuts has been put up in the Appendix 1.Evaluate the Product as an innovation as it is perceived by the intended market.Relative returnsPeople of Germany affirm adapted to new food habits and have become more calorie and cholesterol conscious in their int ake. Percentage of protein in Kangaroo fulfil is high in comparison to beef and pork. People of Germany like game meat, as well are always ready to try different types of meat products. (Flannery, n.d.). An added advantage of Kangaroo meat is that it is 30% cheaper than beef, which simultaneously increases the scope of opportunities to sell our product into the German market. (More Aussies dining on Skippy, 2008). The relative advantage of our product is more as compared to other products.CompatibilityKangaroo meat is one of the healthiest red meat, available for human consumption. The fat levels in kangaroo meat are less than 2% which creates a positive thought set for the consumer to buy our product as these days consumer are very health conscious. Kangaroo meat can be used exactly like other red meats its alike available in a wide range of cuts. (Kangaroo Meat for Human Consumption,n.d.).ComplexityOur Kangaroo meat is produced under high strict hygiene legislation and has an even healthier disease forfeit status than domestic animal meats. The method of cooking kangaroo meat is easy and not to complex. One social occasion which demands to be unbroken in mind is overcooking which will ironic out the meat.Trial abilityAs Kangaroo meat falls under the phratry of game meats and is one of the ra occupy breed of animal found for human consumption it is also very inexpensive to purchase, this automatically encourages the consumers in Germany to try this product for a minimum expense from their pocketsObservabilityKangaroo meat is easy to cook and contains high levels of protein, iron, zinc, B-group vitamins namely riboflavin, niacin, Vitamin B6 and Vitamin B12. A variety of dishes can be cooked from kangaroo meat. German Consumers cab be rest assured that our kangaroo meat is safe to eat and is processed to meet the strict Australian and export Standards. (COOKING TIPS.n.d.).Major problems and resistance to product acceptance based on the preceding eval uation.The Main issue or the area of concern for Kangaroo Meat is the method of cooking as it is low fat content, can easily dry out during the cooking process. Therefore it is recommended to follow some simple cooking steps to retain moisture and the meat flavour. Kangaroo meat should be handled and cooked like any other lean low fat red meat. (COOKING TIPS.n.d.).The Haziness of cooking kangaroo meat discourages many consumers. Also another problem with Kangaroo meat is that Kangaroo is the national animal of Australia. The consumers which are fond of meat products are very taste sensitive, they are aware of kangaroo products being available in the market solely havent got the right come on and means to try it out.The MarketDescribe the market(s) in which the product is to be sold.The country that we are focusing on selling our product is Germany. The market analyze and plan will be based on strategically approaches used to introduce our product into the market, specifically look ing at the culture, political and economic environment.1. geographic region(s)We are focusing on Berlin being the capital of Germany, as it is not possible to cover the entire market of Germany in the first year of business.Berlin is the most all important(predicate) state in Germany out of the 16 states. It has a total population of 3.5million. Berlin is one of the most significant centres in European politics, culture and science. Berlin is also a working capital urban center and a province ofGermany. It is also famous for its cultural institutions and a highly visited tourist destination.(Berlin ,Germany,n.d.)Forms of transportation and communication available in that region.Germany is well known as the nation of car lovers. Public Transport is excellent in Germany. Their rail network is very comfortable, reliable and fast. wholly major cities have an impressive public transport system like Tube, Tram and Busses which are very reliable. Many cities in Germany encourage cyclist s with elected oscillation lanes. ( Getting Around in Germany,n.d.).For Transportation and communication when exporting and selling (in the Target market) our product, we will be using only Air Transport and pass Transport.Consumer purchase habits.Product-use patternsThe German cuisine is very different from region to region, Aswell we have discussed this in ou socio-cultural analysis which gives a clear understanding of the audience in the target market. As the Germans is health conscious and very particular about their calorie intake. There are more than 1500 varieties of sausages available.(Cuisine,n.d.).As our kangaroo meat is very healthy, light in consumption less in fat and easy to cook, it fits right as a part of their meals keeping in mind the health factor.Product let preferenceAccording to a survey by GfK whose studies and analyses are based on consumer shopping behaviour state that the German consumers have a per capita retail purchasing power of around 5,201 in 2009 . GfK GeoMarketing has understood and calculated the Germans purchasing power by region, categorizing the results according to around 60 food- and non-food product lines.(New study on Germans regional consumer preferences,n.d.).As the Consumers in Germany have high purchasing power , it gives us a green flag to enter their market and sell our chosen product.Untitled.pngAs seen in the above chart the German consumers spend round 12.6% on health and hygienic products. In which they are mainly looking for alimentary and healthy intake of food. In that case kangaroo meat which we want to sell meets their demands and expectation levels.Shopping habitsShop till you drop is the tag line which is amend to the Germans shopping habits. Shopping is called as a national pastime for the Germans. Malls are not that well- developed in Germany so there are more of pop Malls which have been opened up. Place lile Big Box, hyper-stores, discounters, Marktstrassen or market streets are very popular to buy their products on daily needs.(Shopping in Germany,n.d.).Specialization shops are very popular and easily recognized in food stores. The Metzgerei (butcher), Backerei (bakery) and Konditorei (pastry shop) are in business by people of their own profession. Germans basically buy their meat from local butchers instead of buying it from supermarket. Their preference is quality, comfort, prestige, convenience and price when buying consumer durables. alternatively, price dominates other factors in case of everyday goods.(Shopping in Germany,n.d.). distribution of the productTypical retail outletsThe German market is the biggest and the most important part of Europe, the retail market is very competitive and segmented for most of the products. The highest level of grandeur is given to the Quality and service of the products. ( Germany MARKET ACCESS,n.d.).The German retail market is distributed into large Independent shops, having a high proportion of distribution in city centres a nd urban areas. Also they are quite a fewer numbers of hypermarkets followed by discounted stores which are the main attractions to customers. The market also gives high importance to duration selling which are mail order, e-commerce and teleshopping.( Germany MARKET ACCESS,n.d.). Our strategy here will be the approaching the specific shops which will sell our products to the consumers at a intelligent price, which specially assures good quality and taste.Product sales by other middlemenFor selling a variety of products in Germany, the best approach is to involve or appoint an independent regional agent who understands the surrounding and culture, having a clear understanding of the situation. Also taking into consideration that Germany holds the ranking for organising the worlds largest trade exhibitions and fairs, proving very important for companies to build their image and status in the surrounding and simultaneously understand who its competitors are, how the market operate s and how to create goodwill amongst the bigger guns. (Distribution, n.d.).Advertising and PromotionAdvertising media commonly used to reach your target markets(s)Advertising is one of the most evident forms of communication. The types of advertising most used in Germany are Televisions, Print ads( Newspapers), Outdoor, Radio, Online and Magazines, for any product to be introduced in this target market these types of adverting media are highly recommended.. (Germany Marketing outline,n.d.).As mentioned in our earlier economic analysis report that 51% of citizens obtain new through the medium of television, 22% get the information from newspapers or Magazines and 6% make use of the radio.Advertising is given the utmost importance in any company or to any product before getting itself introduced to the world and especially in Germany for us to introduce our Kangaroo Meat we will need to approach the right medium to give us the right push in to the target market.Sales Promotions cust omarily usedSales Promotions acts as the secernate factor in adding value to the sale. Sales promotions are usually used in the B to B Market, where the consumer goods move fast in sales. Germany on the other hand has some interesting strategies to take from, and undoubtedly these promotional strategies have proven to work in the current market trends. (Phillips, C., n.d.).The Tools used for the promotion of any product have to be taken into effect by understanding the customer sentiments and the way of purchasing, because theneed and want are two separate things when it comes to buying a product. Tools like Consumer goods vouchers, Price reduction, Premiums, data base/ send out marketing, are the main sections given high priority in Germany when introducing a product. (Phillips, C., n.d.).Pricing StrategyPricing is one of the most critical factors when pricing in the International market. Pricing is that element that generates revenue the remaining elements are driven by cost. Th e thought that we as exporters need to be cautious when pricing in the Global environment is Counter employment Requirements, Regional Trading, Increased Competitive Levels, and Standardisation against localisation principle Issues etc. (cite text) tailor-madeary Mark-UpsThe Normal pattern used by most of the retailers for the mark-up is the customary mark-ups which is a 100% .e.g. If our product cost is 12$ it will be sold in Germany for 24$ keeping in mind the conversion cost between the two countries.(Pricing Strategy,2007). In the case of our product we have kept the Customary mark- up price for our retailers as 60% for only the reason being our product is new in the market and even though our competitors go we have to match the standard Quality and Taste of our product , keeping in mind the affordability factorTypes of Discounts AvailableDiscount types are many and have various mappings depending on the situation, the location, the time period or even the market trend. Type s of discounts available in the target market arePaper CouponOnline CouponDirect DiscountsPremiumsReward pointsRebatesPercentage of total PurchaseCash of total PurchaseAs for our Kangaroo meat we will only be using the Coupons, Premiums, and direct discount strategy as it is not possible to introduce all types of discount in the first year of production/export.Compare and contrast your product and the competitors productThe Main competitors who export Kangaroo meat from Australia areMacro Meats- Leading producer of kangaroo and wild gourmet game meatSouthern Game Meat- exporting Kangaroo meat to Europe.DGroot International Food Marketing Exports Kangaroo Meat to the USA.Game meats Australia- Export Kangaroo and Wallaby meat.Ace Corporation main objective is to export Kangaroo Meat. The idea and the purpose behind selling kangaroo meat is that, its low in fat intake and free from chemicals, hormones and pesticide. Its basically an ultimate free range meat which is very high in prot ein and iron content. Our Tag line says it all Lets Eat Kangaroo our motive being Healthier Kangaroo meat for Human Consumption.One of our major competitors is Macro MeatsCompetitors ProductMacro Meats is our biggest competitor. Macro Meats was established in 1987 with a vision to develop kangaroo meat not only as another meat for human consumption, but to promote kangaroo meats healthy and 100% natural features.The Company Director and Owner Ray Borda has been the man behind this industry for over 22years.Some of the Products sold by them areKanga Bangas (Kangaroo Sausages)Kangaroo Mince-1kgMarinated kangaroo steakKangaroo Mince- 500gKangaroo SteakKangaroo FilletsKangaroo mini roastKangaroo marinated kebabs.(Products, n.d.).Brand NameThey export their product under the name- Macro meats-Gourmet Game.Is a certified meat exporter and is EU accredited.FeaturesSome of their Features which give them a higher advantage are Chemical freeProcessed as per Quality assurance programGluten fre e98% fat freeHigh in IronHigh in ProteinPackageMacro meats-Gourmet Game have a standardised packing pattern for all their products as they have a number of products which they export as mentioned above. Their packaging is done by the Australian Supermarkets and the kangaroo meat is approved by the National Heart al-Qaeda of Australia and many of its products have a Kangaroo fillet Tick Approval. (A Growing Industry, n.d.).Competitors PricesProductPer kg (In AUD)Kanga Bangas ( Sausages)$13.00Kangaroo Fillets$17.00Kangaroo Mince 500g$10.00Diced Kangaroo Meat$12.00ACE Corporation will be only selling four products in the first year of production/export, for the same reason we have compared prices with only four of our competitors products.Competitors promotion and advertising methods.Macro Meats catchword is Good for you good for the environmentThe Advertising methods used by them are mainly through newspapers, Television, radio and the weekly specials booklets distributed by the sup ermarkets.(Environment, n.d.).Competitors Distribution ChannelThe Distribution channels used by Macro meats are as followsAir TransportDistributorsRetailersStorage at the arrival airportTruck TransportCustom DutiesFreight Forwarder StorageImportersStorage in Processed ChillersMacro Meat ProcessorMarket SizeThe Australian Kangaroo Industry started exporting Kangaroo meat to Europe in 1959 having a high response to the European game meat. Kangaroo meat which is processed and exported is checked by the Australian Quarantine and Inspection Service (AQIS).( The kangaroo industry2008). The market size for this type of industry is massive and is spread in Germany, Russia, USA, Africa, China, France, and Netherlands.Estimated Industry sales for the Planning yearAs there are a few organisations already exporting the same product as ours it will be a bit difficult to gain an 100% profit margin. Looking at it from all aspects of the market we have an estimated target of 65% to achieve.Estimate d sales for your company for the planning year.The Estimated sales for our first year being in business. Selling Kangaroo meat in the Germany will be approximately % 750,000.00With an estimated Gross Profit of 16.4% organization participation in the marketplaceThe German federal government plays a rattling role in the German economy, sometimes directly and sometimes indirectly through the effects of other policies on the economy. Germany being a part of the European Union (EU) which assures a Liberal Movement between European countries. Germany is a leader in export thus the entire European union is its pristine trade partner with 47.8% of the German imports and 53.1% of its exports are made with 15 original members of EU.( Foreign trade in figures, n.d.)AgenciesThere are two Australian Government that have been set up and will be helpful for us to export. They also provide grants to exporters that assist with business development activities.They are listed belowAustrade (Australi an Trade commission).Overseas Business Development Grants from the Department of Foreign Affairs and Trade.RegulationThe government regulations and list of documents that we will have to comply with, when exporting our productKangaroo reaper accreditation requirements are that each State has a TAFE course which harvesters must pass in order to gain licences.A permit issued by the department will generally be needed to legally export kangaroo products.The export and import of wildlife and wildlife products is regulated under Part 13A of the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) next the Code of Practice for the Humane Harvesting which ensures humane welfare.Outcomes of kangaroos. (Exports, n.d.).Insurance CertificateCommercial invoicePacking listFreight insuranceFreight documents node value declarationCertificate of originCustoms Import declaration (Special certificates, 2009).