International Marketing Assignment: Business Expansion Of Australian Blue Cypress In India & Bangladesh
The following is an overview for the requirements and expectations for you to analyse and write a business report on international marketing assignment (positioning implementation plan). As part of the task, you will need to analyse the total market from two countries and select one. You will need to identify a positioning strategy from the consumer you will profile and then priorities a single market and the cultural issues that may be applicable.
You will be asked to select from the finalists of the Australian Government Exporter Awards and analyse only one company that is primarily in the manufacturing market and avoid mining product.
You are required to produce a business report (positioning implementation plan) that will show what a business needs to determine in expanding internationally and then will include the main steps to be undertaken in evaluation of opportunities, giving regard to relevant legislation and standards affecting the marketing process.
The report will also address target market influences that will affect this decision and how the business has arrived at those determinants and what steps you will take to minimise or negate the risks associated with these influences. Use provided material and further research to determine what evaluation techniques should be engaged to assess suitability of the export venture.
The report will be approx. 1500 words and will use a standard business report format that demonstrates competency in writing a clear, con evaluation report. This report should include executive summaries, introduction or conclusions.
Standard Harvard referencing is required, and appendixes should be used for the inclusion of research and supporting documents.
As part of the written report, you are to include a table of contents. This needs to detail all the categories that meet organisational requirements for suitable presentation of their positioning implementation plan, e.g. introduction, background, statistical analysis etc.
Australian Blue Cypress, a company which goes by the website name of kakadublue is a quite well sustaining organisation which is a family owned business. This particular organisation is a manufacturer of essential oils which is extracted as well as processed from the endemic tree known as Callitris Intratropica, or commonly called Australian Blue Cypress Pine (Kakadu Blue | Australian Blue Cypress, 2021). The production plant of this manufacturing industry is small and is located in the outskirts of Darwin, which is the Northern Territory of Australia. This particular tree has been used specifically for the purpose of gaining access to a very special essential blue oil.
Analysis and Description
The two countries suitable for entering for Australian Blue Cypress would be India and Bangladesh. However, in this section, between the two countries, one of the countries would be selected over the other. Conducting a PESTLE analysis would be the most suitable option in order to understand which country is the most suitable for the particular product. At the very outset, it can be said that, in terms of political matters, India can be considered to be more politically stable considering the recent political and religious riots that took place in Bangladesh. Bangladesh is the fourth biggest producer of rice, however, due to the issue of a number of recent disasters, the country has faced a number of financial issues.
However, in case of India, the financial conditions can be considered to be comparatively stable in nature. From the perspective of societal stability, it can be said that India is more stable compared to Bangladesh, considering the recent riots that took place in the latter country. Bangladesh is exploring the technical aspects to a great extent, in order to become a hub, however, India has surpassed the country to a certain extent. There are certain instances of tax reduction in certain businesses in Bangladesh. In India as well, certain legal aspects have been applied such as recycling, minimum wage increase, disability discrimination and so on. As a result of these changes, the legal conditions of this country has improved to a certain extent. Bangladesh is haunted by pollution, there is no way to deny the problem. However, in case of India as well, industrialization and urbanization have adversely affected environment to a great extent. From the comparison of both the countries, it can be said that, India is better for the launching of the particular product.
The blue essential oils produced by Australian Blue Cypress can be positioned in India through the strategy of quality of luxury. That is to say, the essential oil will be marketed as a product which is of premium quality, as a result of which, it can be received not only with a high price, but also with the notion of deserving or earning it. The product can be sold in the form where the customers will have to believe that they are earning the particular product considering the quality of the same.The reputation of Australian Blue Cypress and its unique blue essential oil can be positioned for its luxurious quality.
Social and Cultural Block
There can be a number of social as well as cultural blocks in the usage of essential oils. The different social barriers to the usage of essential oils can be associated with the side effects of the essential oils. That is to say, the concentrated nature of the essential oils often cause certain kinds of skin irritations as well as explosions. As a result of this, according to Kumar et al., (2021), the people become extremely concerned about using essential oils in their daily lives. In addition to that, people also have the belief that, essential oils are manufactured through the process of unlawfully extracting of oils from the trees, therefore, it causes serious and severe harm to the trees. It can also be considered as the root cause of deforestation and so on. Due to this notion, people avoid buying and using essential oils, despite their premium quality as well as the benefits of their usage.
Addressing the Blocks
The social and cultural blocks can be addressed through the help of proper scientific research findings. That is to say, through the help of proper research, it can be proven that no plant species or even animal species have been harmed to any extent in order to extract the oil from the particular species of plant. In addition to that, it can be proven to be environment friendly through the implementation through certain measures. For instance, the organisation can opt for green packaging, which can prove that the company supports the wellbeing of the environment and is working towards the benefits of the environment. In addition to that, on the packaging the ingredients can also be mentioned in clear terms, along with the directions of use, so as to provide a proper manual of instructions to the users of the essential oil as well as the other products of Australian Blue Cypress.
India is an independent country, which has achieved independence in the year 1947 from the British colonial rule, and has accentuated it socio-economic position since then. Geographically, the mainland of India is distinguished from Asia by the mountains of Himalayas and is guarded by the Bay of Bengal and the Arabian Sea. Population wise, there are 940 females per 1000 males as per the consensus of the year 2011 (india.gov.in, 2021). The population of India has a great deal of belief and trust in the ancient studies of herbology and Ayurveda, as a result of which, they are highly interested in using products which contain ingredients which are mostly plant based.
Their overt dependence on products that are mostly based on Ayurveda can have a great amount of potential to increase the amount of sales of the essential oils as well as the other organic products that are being offered by the organisation of Australian Blue Cypress. In addition to that, the people hailing from India, especially, the female population, are highly aware of the aspects and notions of skin, such as skin tone, skin colour, skin quality and so on. Therefore, since the essential oils mainly deal with the aspects of skin, Indian people will be highly interested in buying the products, even if they are of premium quality.
Segmentation will be based on demographics, that is to say, based on age, income, gender, ethnicity, level of education, religion and so on. As it has been already previously outlined, Australian Blue Cypress essential oil is a product which is meant for premium customers. Therefore, people hailing from the upper socioeconomic class will be considered fit for buying the product. It has to be identified as well as understood that there is a notion of earning or achieving the particular product, instead of merely buying it. Therefore, through the help of demographic segmentation, the focus of the particular market for export of Australian Blue Cypress has become even clearer. That is to say, only the premium buyers will receive the chance of buying the essential oils sold by this company.
The Custom Act of 1962 is one of the most basic statutes of India which regulates entry as well as exit of different kinds of vessels, aircrafts, ships, and so on, within or outside the country. This particular legislation is applicable throughout the country of India. Another organisation which goes by the title of Directorate General of Foreign Trade is a governmental organisation in India whichformulates the different guidelines, rules and regulations which are associated with import as well as export in India. In order to import foreign goods, the importers need to follow certain steps, rules as well as regulations (Vyapar, 2019). At the very outset, the importers need to obtain an Import Export code number. The goods that are brought in ought to adhere to the rules and regulations that are mentioned in the section 11 of Custom Act of 1962 (Vyapar, 2019). The importers also need to be compliant with Foreign Trade (Development and Regulation) of the year 1992 (Vyapar, 2019).
Differences between Target and Domestic Market
In the target market, the people are increasingly interested in ayurvedic products, because of their close and deep roots of using Ayurveda. The Indians have been known to be acquainted with the knowledge as well as the use of Ayurveda since a long number of years. As a result of which, the target market will be more interested in using ayurvedic products such as that of the essential oils of Australian Blue Cypress compared to the domestic market of Australia. Indian people also have a number of cultural as well as social blocks in terms of using essential oils, such as their preconceived notion that essential oils are extracted by harming different plant species which lead to their extinction as well as can be considered to be one of the root causes of deforestation.
However, in the domestic market, that is, in Australia, such a kind of preconceived notion is not really prevalent. The people are more or less aware that the essential oils are extracted in a manner which is done and completed in a completely scientific process. Therefore, no harm or threat is posed to the animal species or even the plant species or even the biodiversity of a certain ecosystem. Indian people have the belief that essential oils can cause harm to their Indian skin tone and quality. However, no such notion is prevalent in the people hailing from the domestic market. They consider the importance and the benefits of the essential oils for the skin tone as well as the quality.
Targeting the Market
The market can be targeted by segmenting on the basis of demographics. That is to say, the age, gender, economic status, religion and the other factors will be taken into consideration prior to segmentation. After that, the different notions will be considered in accordance with the quality of the product. As mentioned previously, the essential oils are premium quality products, therefore, the targeted demographics will be the customers hailing from the upper socioeconomic backgrounds. The global demand of essential oils was estimated as 247.08 kilotons, in the year 2020. It is however expected to rise at a compound annual growth rate of 7.5% from 2020 to 2027 (Grand View Research ,2020). After the determination of the market, the other competitors in the market or in the industry will be discovered, after that the product will be targeted accordingly.
It has been forecasted that in India, the essential oil market is expected to reach an output of 50,400 tons by the end of the year 2030. The market type is monopolistic. That is to say, that the market has quite a range of competition, however, the marketing and advertising is a whole lot different. For instance, Australian Blue Cypress is a premium product which will be marketed through green packaging. According to Essential Oil Producers Association of Australia, (2018), the market of essential oil has improved with the interference of German researches during the pre-war era. The scholars namely O’Mahony and Lobo (2017) have found significant growth in the essential oil industry in Australia since the earlier times in history due to a number of factors.
The demographics of the market can be targeted as female from the middle age group. They will primarily hail from the higher socioeconomic strata and will have a lavish lifestyle. The essential oil market which is organic in nature will be attractive to the women of the middle ages. The blue essential oils produced by Australian Blue Cypress can be positioned in India through the strategy of quality of luxury.
(16-17) If we go by statistics, three criteria that fulfils the monopolistic approach of the company are that the company owns 100 percent right on the Blue Cypress essential oil and hence there are no competition in the market that will suffice the same. The oil is used in variety of sectors like cosmetics, perfumery etc. In order to have monopoly in certain sector it is important that the company denies access to the competitors, in the given case the company has entire right on the manufacture of the essential oil, secondly it cannot be duplicated and thirdly it cannot be accessed grant to another company. It is the only company that has a unique processing method that they have patented that can be used to achieve the true-blue color of the oil that makes sure that the original qualities of the oil are intact after further processing. If we go by data, this oil has not been used or introduced before in India and that can be studied from the images below –
Thus, based on the above data it can be seen by 2027 the overall market value of the essential oils will reach to 2Bn and that is a very huge amount and hence the Australian company has an opportunity to tap the same. Statistically it can be seen that for now Teatree is the oil that is most widely used in the essential oil category in India and thus in case a new oil is introduced that has a good, imbibed values and is good for health then that can have a market in a country like India. One of the key data that will help in successfully launching the said essential oil in a country like India isving increased application of the oil in different industries so that more uses of the oil can be deciphered. The data highlighted below has been taken from the below sources:
These sites highlight the research on essential oil market in India and its various uses and the same has been used for further explanation of the statistical mix of the essential oil market in India. It also shows the various oils that is being used in the country at the present and also how the new oil can form a niche for themselves that can be used in a variety of other things.
18) Key demographic and psychographic data that will play a key role in aligning the criteria with the requirements of the plan are that this oil have never been used before in a country like India and given the overall female population and the kind of awareness that people have now with respect to skin care and overall grooming, such kind of oil will find a market in the upper strata of the society and hence can be sold as luxury. The product can be sold online through social media sites and can also be given out as free samples in the beginning to create more awareness among the people. The overall production of the oil is based on a unique processing method which has been copyrighted by the Australian company and hence that company will have the sole right on manufacturing the same and other companies cannot copy or gain an insight on how to manufacture the same and thus that will also help the Australian company in getting a monopolistic hold over the company. India as a country is having huge prospects in all avenues as there are different strata of people living together and hence that would be beneficial for the Australian company to launch their product.
21) The key marketing strategy and positioning of the company would be to promote the product well; the product is a premium product and hence it is very much needed that the high price should be aligned with extremely good quality of the product. The Indian market has a lot of influencers that would help in product promotion over social media. This oil is a premium product and hence most of the people won’t be able to purchase people that belong to the higher class of the society and hence the product should be launched and promoted in high luxury stores where such kind of crowd is easily accessible. The product can also be used in many different industries and the company should try to promote the same so that they have many wholesale customers also who buy the oil in larger order to use it for further application. Getting people buy such high-end premium product is difficult and it is thus important that promotion should be done accordingly and slowly more products would be sold and the product will be able to find a position in the market. Since there are no competitors then the company can take its time and make sure that they are able to build a niche in a thriving market like India. The company should first focus more of their product and post that they should invest more in promotion of the same. This should be their marketing strategy that will be inclusive of various methods of promotion may it be on social media or promotion through advertisements, hoardings or through any celebrity. Good promotion would help them in developing a market for the product, getting more customers, which won’t be possible just from word of mouth publicity.
Marketing mix is inclusive of the 4Ps. To provide a brief explanation of the 4Ps, it can be said that it stands for product, price, place and promotion. The product, which is the essential oil in this case, must serve the customers in a manner which is unique compared to the other products, that is, the other essential oils that are available in the market. The price should match the quality of the product. Australian Blue Cypress is a premium product therefore, it can be considered that the price will also be quite high. However, the price should be able to justify the quality of the product. The essential oil should be placed in a manner which will be able to attract the customers to a great extent. Promotions need to be done through advertising as well as social media pages and online sites.
Australian Blue Cypress has been a family business which has been running for years.The organisation has been using its patent since the year 2019, and has been the sole manufacturer of this particular oil. The uniqueness of the essential oil has attracted a number of customers since its very advent. Although the oil has been quite prevalent in the Australian market, as well as imported in other markets, such as in the United States and so on, there has been an urge to grow the business even more in order to promote the business to a great extent. This particular report has aimed to explore the different ways in which the company can extend its business in India while considering the different social, cultural, economic as well as legal factors.
india.gov.in, 2021, Profile, Available at: https://www.india.gov.in/india-glance/profile
Kakadu Blue | Australian Blue Cypress, 2021, Australian Blue Cypress Oil, Available at: https://kakadublue.com.au/
Kumar, M., Rawat, S., Nagar, B., Kumar, A., Pala, N.A., Bhat, J.A., Bussmann, R.W., Cabral-Pinto, M. and Kunwar, R., 2021. Implementation of the use of ethnomedicinal plants for curing diseases in the Indian Himalayas and its role in sustainability of livelihoods and socioeconomic development. International marketing assignmentInternational journal of environmental research and public health, 18(4), p.1509.
Vyapar, 2019, Govt Rules for Importing Items to India: Import Duties, Basic Requirements, Steps to Import, Available at: https://vyaparapp.in/blog/govt-rules-for-importing-items-to-india-import-duties-basic-requirements-steps-to-import/
Essential Oil Producers Association of Australia, 2018, The Essential Oils Industry in Australia, Available at: https://eopaa.com.au/essential-oil-industry-australia/
O’Mahony, B. and Lobo, A., 2017. The organic industry in Australia: Current and future trends. Land use policy, 66, pp.331-339.
Grand View Research ,2020, Essential Oils Market Size, Share & Trends Analysis Report By Application (Food & Beverages, Spa & Relaxation), By Product (Orange, Peppermint), By Sales Channel, And Segment Forecasts, 2020 - 2027, Available at: https://www.grandviewresearch.com/industry-analysis/essential-oils-market