Developing an Export Plan
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Developing an Export Plan
For effective marketing, there must be procedures to be followed and this is most applicable when the marketing is for international products or the products that are meant to be consumed by international consumers. Johnson (2010) notes that this is most applicable when considering exports and imports; that is, when a country is considering exporting its goods across the country’s border, there ought to be good grounds and legal standards that are followed and instituted. In most cases, a product cannot be exported to another country before it meets the set guidelines and therefore, for any plan to succeed, it is imperative that there be some good grounds for this operation. This paper has a major focus on exporting some goods from Australia to the United States of America, and specifically, the point or the plan for these exporting is for the distilled spirits. The choice for this product is because Australia is well known for its production and therefore, if there could be good ground for this, people in Australia could benefit a lot from the gains from these exports.
Question 1: The product and the exporting form
Distilled spirits: Austral Distiller
By definition, distilled spirits are liquor or some spirits that are can be drunk and contains ethanol. This is produced by use of the distillation methods and then fermented especially by use of the fermented fruits, grains or vegetables. This is one of the exports that Australia makes to other countries and therefore forms strategic for fundamental planning of its sale or export to other strategic countries such as the United States of America. According to Wenner (2009), the Australia institute of Health and Welfare has stated that the production of these spirits and generally alcohol production has increased tremendously from the mid 1960 and this places the country 22nd out of the total 45 countries that have established good production. The only remaining thing is for good export plans for the product, and if this were to be made, it would be one of the most profitable products in the country. Saggers (1998) adds that the increase in the consumption and the production of distilled spirits in the country corresponds to some of the laws and the conventions that the country has instituted and which generally have enabled the country to move forward well in its production; and therefore this is a good product for export.
Austral distiller will be involved in the distillation of spirit for export and has identified United States of America as the country that is most appropriate for the destination of its products. The choice of the country is because the United States of America is one of the countries that have high room for business investments and the kind of business regulation in the country is not as strict as in other countries. In this therefore, the identification of America is appropriate for the products (Austral spirits) and with the growing links with the two countries and Europe and America in large, exporting the product to the country would be one of the decisions that would enhance growth of business in the two countries. Harris (1998) notes of enhancing relationships of the two countries and writes that business relationships is best built when there is continuous exporting and importing of products to and from the countries. Fontanills (2003) noted that because already America has good ties with the European economic block, it would not be hard to establish relationship between the company and America as a country.
Question b: Export potential for the business
From the year 2006 to the year 2009, the United States of America, America had started putting strong grounds for the importation of the products and as it stands, the country is ripe for high consumption of these spirits, and therefore, the business is expected to thrive well if there could be strong grounds for making these exports. What will determine on the success of the business is on the grounds that would be covered and the procedures that would be involved in ensuring high quality of the product. However, the Office of the Federal Register (2010) notes that the key to having any successful exporting business in the country is to ensure that all laws and the code of the Federal regulations are most critical. Any business that assumes that the laws are void and may not apply would just be calculating its fall down. Already, there are strong grounds that are laid for the success of this and therefore, it is expected that the product would do well in the exportation of this.
However, for this to be ascertained, a preliminary research would be carried and this would be used in determining whether as at current, the country is ready for more importation of products from Australia. If at all the country still maintains a good ground for this, it would make a go ahead for the company to enter the market and make its presence felt. The market specifically is the whole of the United States of America; however, for a start, the cities in the United States of America such as New York City, Washington D.C and New Jersey among others would be the starting point. The management would strongly consider the results from the research and if at all, the market were not very ready, strong grounds would be made for the entering of the company. However, if the market were ripe and ready, the company would make an entry as soon as possible.
Question C: Planning Stage
Market Entry
In the entering of the market, a market analysis or situation analysis has to be carried. As noted above, the first thing that would be done is to explore the market of United States of America and ensure that the competition is ripe and that there is a possibility of making an impact in the country. According to Green (1996), situational analysis is the first step in a marketing plan and it involves carrying out of a research to determine the viability of the products to the market. In this regard then, the first thing to do when entering the market of United States of America is to have a situational analysis or a market research.
Analysis of the American Country
The American country is a country that could perhaps be said to be the first among equals when it comes to providing good business environment for both exports and internal business. On considering exports, the country in the year 2010 announced that some measures would make the possibility of discrimination when it comes to doing international and domestic business. With this therefore, it makes the country the best when it comes to doing international business and for this case, exportation of the distilled spirits to the country. In essence, the country is best placed above all others because of its good legislations and environment that is welcome to all products. Notably, American market and that of the Philippine country have been conducive and even that is why the two countries are identified as good business partners; the business collaborates that import and export goods. Services from one another in a most free manner and this makes America as one of the countries that can accommodate the exportation of the distilled spirits.
Logistical Issues in the Business
In carrying out of the business, there must be logistical issues that must be fulfilled, and among others, all of the steps that are involved in the making of a good business and a business that fulfills all qualities that can be mastered must be involved. While writing of the logistical issues, Johnson (2009) gives the examples of good supply chain that ensures that the final product as meant for the customer fulfils all the expectation, and for the purposes of exporting the goods. The services to United States of America, it is proper to make sure that all the processes that are involved in the making of the distilled spirits. At the start of the production process, all the ingredients that are necessary of making quality products would be utilized and that involves mixing of the chemicals and the distilled liquor well to avoid any kind of hazards.
Legal Issues in Business
No business can apply without the application of the law and there are legal issues that must be followed during the production and the selling of the products. For international products such as the Austral products, it would be essential to make sure that all the laws of Australia and those of America are fulfilled so as not to have a legal hurdle in selling of the products and the production process of the product. Specifically, there could be legal hurdles as some of the companies have made to survive with products that do not meet the legal standards. They are cornered during the selling process, and for the survival of the exportation business of the distilled products, it would be good if all of the products have the right mixture and inspected by all the authorities. Gordon-Davis (2007) notes that all entrepreneurs; whether established or those at the starting point must adhere to the rules and regulation of the country and for a business that is willing to export the products abroad, it only makes sense to follow all the laws of the two countries.
Meeting the Standards
As noted above, there are a number of things that must be involved in the making of the business success, and for this, the legal issues must be followed, the logistical applications and the ethical considerations. The ethical considerations and the applications of the rules and the regulations may not be in any books of the law but are noted to be essential when it comes to the working of the business. As well, good marketing skills must be applied in the business in addition to making sure that the product is of high quality for the consumers.
Government Support in the Business
The government of Australia is always supportive of business that help sell the country to the outside world, and since America is so strategic to the selling of business, it would be essential to enlist the support of the government; and that can only be done by involving the relevant government agencies that go with the operation of businesses. National Library of Australia (1998) notes that the government puts all measures that can be garnered in making sure that its products are well marketed in the outside world. The government support is always essential in any business operation not only in domestic trading but also in international trading and this is because the government is at a position to collect more revenue including the foreign revenue.
Factors for the Success of the Business
Other than the factors that have been identified such as the ethical consideration, the legal consideration, logistical procedures and enlisting of the government support, other factors must be put into consideration. For example, it is essential that marketing be put, as a first priority and mostly using of international media would be essential in making sure that the American populace receives the products well. Identification of the major competitors in America would also be critical in making sure that there could be developing of measures that would combat the high competition.
References
Fontanills, G. (2008). Trading options for dummies. Hobokea: John Wiley & Sons, Inc
Gordon-Davis, L. (2007). Legal issues for entrepreneurs. Hermanus: Juta & Co. Ltd
Green, G. (1996). Marketing: Mastering your small business. Madison: Upstart Publishing Company
Harris, S. (1998). Trading 102: Getting down to business. Hoboken: John Wiley & Sons, Inc
Johnson, D. (2009). International business: Themes and Issues in the modern global economy. New York: Taylor & Francis publishers
Johnson, T. (2010). Export/import procedures and documentation. New York: Amacom publishers
National Library of Australia (1998). APAIS, Australia public affairs information service: A subject index to current literature. Australia: Commonwealth National Library
Office of the Federal Register (2010). Code of federal regulations, Title 27, Alcohol, Tobacco products and firearms. U.S: Government Printing Office
Saggers, S. (1998). Dealing with alcohol: Indigenous usage in Australia, New Zealand and Canada. Cambridge: Cambridge University Press
Wenner, L. (2009). Sport, beer, and gender: Promotional culture and contemporary. New York: Peter Lang Publishing