MARKET ENTRY IN US

Market Entry in US

Marketing Entry in US

Executive Summary

The purpose of this report is to critically analyse market entry strategy for an Australian meat retailing company in the United States.

ABC, an Australian firm product producer, was chosen for this task, because of United States' increasing demand for westernized but healthy products.

The report starts with a short company overview and describes the products which will be exported to United States. An extensive country profile of United States introduces the external environment and gives an overview of the foreign market.

After the competitors have been identified and the environmental analysis is completed the report shows the marketing strategy and the entry mode which ABC Breedingcould use if entering United States. A possible marketing mix completes this research.

Introduction

The purpose of this report is to outline the strategies necessary for ABC Breeding to successfully export Bio-dynamic Wagyu beef to the American market. To achieve this, a thorough analysis of the American business environment was conducted, identifying the key variables that need to taken into account when modifying the product to suit the American market. This involved researching the external environmental factors, as well as the American culture and the specific needs and wants of the target consumers. This provided the foundation for the strategic marketing plan and objectives. This involved creating a marketing mix and market entry strategies that most effectively suited the American market, while at the same time ensuring the success and profitability of King International.

Infrastructure

Infrastructure is critical in determining the suitability of expanding a business into a foreign country. Infrastructure refers to all the services and facilities that are vital to the efficient functioning of the economy; these include energy supplies, transport, and communications as well as commercial and financial services (Fletcher & Brown 2005). America has one of the most developed infrastructures in the newly industrialised countries of Asia. The area of communication is pivotal in fostering effective communication with the target market, America has a made significant gains in this area with 10.9 million people having radios (1999), 10.8 million people owning televisions (1999) as well as 5.7 million people who have access to the internet (2002) and 5 million people owning mobile phones (American Profile, 2006). This provides the marketer with many types of media in which to reach the target market. America also offers sufficient transportation facilities, such as highways, railways, 114 airports and efficient seaports in which 95% of America's total trade is conducted via the seven international ports (American Industrial Development Authority, 2006). America's infrastructure offers businesses an environment suitable for the successful implementation of international expansion.

Technology

"Technology is still the most dramatic force transforming the international environment" (Fletcher & Brown, 2005, p. 158). As 'science parks' all over the world develop, America takes a leading position with the nation's Kulim Hi-Tech Park which is designed for high technology and R&D companies who want to operate in the Asian-Pacific region (Kulim Technology Park Corporation in Yeoh, 2002). The Kuala Lumpur Stock Exchange (KLSE) offers not only ...