International Market Analysis Report Essay Example

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10INTERNATIONAL MARKET ANALYSIS REPORT

International Market Analysis Report

Table of contents

(i) Executive summary…………………………………………………………3

(ii) Introduction………………………………………………………………..3

(a) Scope………………………………………………………………..3

(b) Purpose of report……………………………………………………3

(iii) The company and product background……………………………………4

(iv) International strategy……………………………………………………….4

(v) Background of Australia country………………………………………….5

(vi) PESTLE……………………………………………………………………6

(vii)SWOT………………………………………………………………………7

(viii)Porter’s five forces………………………………………………………………7

(ix)Industry analysis…………………………………………………………………8

(x)Conclusion …………………………………………………………………………9

(xi)Recommendations………………………………………………………………9

  1. Executive Summary

This report about the Ferrari Company expanding its territories from the South Korea to Australia. The company has its head quarters in Maranello, Italy. The report is dealing with the marketing of the Cobram 40 (35HP). This is a robust tractor meant to help the Australian farmers to increase their farm yields. The report discusses on the marketing strategies to be put in place so that the Ferrari tractors will eventually be available to the Australian farmers. The Australian customs and cultures are also considered as one of the key areas which ca affect the public image of the brand in Australia. Also the porter’s five forces are also considered and necessary steps put into place so as to have the business being sustained amid the market dynamics. Also some marketing strategies are discussed so as to have the business thriving in Australia. Also some recommendations are put across for the company to put into consideration.

  1. Introduction

The Ferrari company is located in Italy and is based in Maranello. The company manufactures sports cars and was initiated by Enzo Ferrari in the year 1929. The company initially was called Scuderia Ferrari and was usually sponsoring drivers and race cars prior to its moving to produce Steel legal cars under the name Ferrari S.p.A in the year 1947. Later in the year 1967 Fiat S.p.A was the shareholder of the Ferrari up to date. The company is known for its usual involvement in racing particularly the Formula One.Usually the Ferrari cars are associated with lavishness, affluence and high speeds. (Adler 2006).

(a)Scope

This report focuses on the expansion of the Ferrari vehicle company in the international market. The company has very high chances of expanding its market in from the one of its production branches in South Korea to other countries like Australia. Marketing analysis has been done in the South Korea and Australia countries.

(b)Purpose of Report

The objective of this report to analyze the marketing structures which will enhance the expansion of the Ferrari exportation to the Australian market. The mechanism to be employed therefore needs research on the markets in the two countries so as to have the purpose achieved.

  1. The company and product background

As stated earlier, the Ferrari is an Italian vehicle company which is has one of its market branches in south Korea. It is well known that South Korea has many industries which continuously manufacture vehicles of all types. These South Korean companies are known world over to be manufacturing even some sport cars. This poses a major threat for the Ferrari sport cars in the South Korean market. The Ferrari company is known of its expensive vehicles. This is contrary to the South Korean makes. Thus there is need to have well drawn marketing structures for its propulsion to the Australian market, which is predominantly using South Korean Vehicles because they are cheaper than from other companies. The Ferrari automobile manufactures vehicle of different types form the small Fiat city cars to the sporting cars, trucks and vans. The Ferrari models have been wining the European Car of the year for several years. i.e. 1967, 1970, 1972, 1980, 1984, 1989, 1995, 1996, 1998, 2001, 2004 and 2008. (Hayhoe 2006)

  1. International Strategy.

The strategy is on how to expand the marketing of the Ferrari tractors from the South Korean branch to the Australian market. The Australia country is well known for its agricultural practices and thus by introducing these Ferrari tractors to its farmers, the farming could be significantly improved to some extent. The Ferrari is intending to introduce the Cobram 40 (35HP) to the Australian farmers. The model is well known of its unique properties. The driver module is able to turn 1800 such that the driver can face the engine or the 3pt optionally. This model has a 12 gear speed in all the directions and has independent PTO engagements. It has inboard wet disk brake system. And it weighs lesser than 2700lbs. (Adler 2006).

  1. Background of Australia country

The Australian country, just like any other country, has some restrictions on some goods imported by its citizens. Any item which has an application of the flag, state seal, arms and the territory of the common wealth is prohibited. Also any good which bears the ANZAC name on it or any advertisement bearing such word is not allowed by the law

Also the Australian people have a particular group of people called the Aboriginals. These are the original natives of the Australian community. They are segregated my other tribes in the country. But gradually, there are some interventions chipped in by some NGOs which advocate for equality amongst all Australian. So when marketing the Ferrari tractors, the company should not use means which could suggest some aboriginal input. This could result to biased responses from the citizens who don’t have aboriginal origins. (Riddell 2003).

When one meets someone for the first time, one has to shake the right hand of the other person with the right hand. People who don’t know each other don’t usually hug or kiss in their first encounter. Also during their first encounter, one is not encouraged to speak about private interests. All the Australians talk to each other looking at the eyes of the people they are talking to as a sign of respect and attention. One is not expected to stare at a person for a long time. (Riddell 2003).

About the dressing code, there is no law or rule on clothing. People dress according to the work situations. Most work places have dressing standards. Majority of Australians live near the seas and beaches. Thus on hot days, they might wear little clothes while in those places. People from other nationalities are allowed to dress according to their nationality. (Riddell 2003).

In Australia, ‘please’ and ‘thank you’ are words considered to express politeness between people. Australians feel that those individuals who don’t use these words are not polite and are rude. (Riddell 2003).

Australians use handkerchiefs or tissues and not blowing noses onto the footpaths. When you sneeze, most Australians will tell you ‘bless you’ with no religious motive. (Riddell 2003).

The GDP is usually reported by the bank of Korea in the country of South Korea. The GDP form 1970 to 2013 has been averaged to be 1.72%. It had also reached an all time 6.8% in 1988. The South Korea country has an economy which is meant for export. The country has been having a 1.1% growth on quarter basis. This has been fueled by the expert of many products from its industries.

The Australian economy is amongst the largest capitalists in the world. It has a GDP of $1.5 trillion. Australia is both the 19th largest exporter and 19th importer. The economic growth is depending on the mining and agricultural sectors. (Adam 2008).

The Australian market has a good profile of importing goods from other countries in the world. The country has also been signing business agreements with the South Korean companies. This is an encouragement for the exportation of the Ferrari tractors from South Korea into the Australia country. (Adam 2008).

The marketing strategies should be inline with the Australian customs and cultures so as to maintain a good public image. The sales and marketing team has to constantly use words that exhibit politeness. Words like ‘please’, ‘I am kindly requesting you to..’ and ‘am sorry’ when dealing with the clients. (Hill 2001).

The company will also ensure that due to the market competition, after sale services are granted to the customers as a way of maintaining a good market share. (Hill 2001).

  1. Porter’s Five forces

Threats form new entrants:

The Ferrari company, after earning high returns in Australia, should be expecting many new firms selling tractors to the same target market. This might eventually affect the returns from the Ferrari tractors. (Porter 2008).

Threats from substitute products:

There is possibility of substitutes to use of tractors in farming. The farmers might switch to use of oxen (which is cheaper) and might adversely affect the sales of the Ferrari tractors. This can be combated through constant advertisement. (Porter 2008).

Bargaining power of customers:

This would eventually affect the sensitivity of the clients on the changes in price. This can result to increased pressure to the Ferrari Company. It can be combated by implementing loyalty program. (Porter 2008).

The bargaining power of the suppliers:

The suppliers of the iron metal which is used in assembling the Ferrari bodies might raise the prices for these materials. (Porter 2008).

Intensity of the competitive rivalry:

The company will be expecting stiff competition from other rivals who will be supplying tractors of different makes. Therefore the company has to be very aggressive in marketing its tractors. (Porter 2008).

  1. Industry analysis

The Ferrari will sign an MOU with the Australian government so as to build a new plant in Australian country. The company will have recorded marketing video clips of the Ferrari tractors. These video clips to be constantly aired on TVs and radios. The company to have road shows in the Australian towns so as to create awareness to the citizens.

The company to hold a Ferrari racing competition between the tractor drivers and give Ferrari prizes to the winners. This could encourage many people in Australia to purchase these tractors so that they could have an entry into these competitions.

  1. Conclusion

The Ferrari Company has an opportunity to enter and dominate the Australian market. This can be achieved by marketing these tractors to the Australian citizens. The company has to sign various MOUs with the government and ensure that this is made public so as to attract public attention.

Also the Ferrari products are known to be if high quality thus can use this advantage over their rivals.

  1. Recommendations:

The Ferrari company should sign MOUs with many money lending parastatal so that customers can get loans for purchasing these tractors.

The company should have a sales and marketing team which is very aggressive. It is advisable to have Australians being the majority of these workers. The reason for this is so that the farmers will have a feeling that the Ferrari company is not a foreign company but has local workers. Also this sales team will be able to speak to the local farmer in the local language which the farmer can understand.

The company should also have alliances with the relevant organizations and parastatals.

Reference list

Porter. (2008). The Five Competitive Forces That Shape Strategy. New York : Free Press.

Hill. (2001). SWOT Analysis: It’s Time for a Product Recall. Long Range Planning 30 (1): 46–52. doi:10.1016/S0024-6301(96)00095-7.

Adler. (2006). Ferrari: The Road from Maranello. New York: Random House.

Hayhoe.(2006). Grand Prix Data Book (4th edition). Sparkford, UK: Haynes.

Adam . (2008). Structural effects of a sustained rise in the terms of trade.Wollombi, Australia: Exisle Publishing.

Riddell.(2003). Australian culture, values and customs.

Retrieved 9th September, 2003, from

http://www.careerfaqs.com.au/courses/study-tips/australian-culture-values-and-customs
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