REFERENCE:AgriBusiness LTD. (2012). Investing in New Zealand Property. New Zealand: Value of New Zealand Export's. Retrieved March 27, 2012, from http://www.agribusinessltd.com/acatalog/About.html
REFERENCE: AgriBusiness LTD. (2012). Investing in New Zealand Property. New Zealand: Total New Zealand Land Use By Area. Retrieved March 27, 2012, from http://www.agribusinessltd.com/acatalog/About.html
Final International Marketing Plan
International Market EntrySubmitted By:Jen Spinozzi and Ashlie Morton
Agenda•Overview of New Zealand•Overview of Basecamp•PESTLE Analysis•Target Market Analysis•Globalization•Market Entry•Competitive Analysis•Service Plan•Distribution•Advertising & Promotion Strategy•SWOT Analysis•Conclusion
New Zealand• Island country situated in the southwestern pacific ocean.• Only 4 million in population.• Largest city is Auckland with a population of 370,000• Government type: parliamentary democracy.• Renown for its beautiful landscape such as mountains, volcanoes and rainforests.• North is subtropical and south is low humidity with clean air.
BASECAMP•Make a positive difference•Volunteer program•Internships•Learn about developing countries•Network•Learn culture and languagesWork with:Local governmentsNon-governmental organizationsInternational DevelopmentLocal Grassroots
DEMOGRAPHICSPopulation: 4,290,347Age Structure: 0-14 years(20.4%), 15-64years(66.4%), 65years+(13.3%)Population Growth Rate: 0.882%Birth Rate: 13.68 births/1,000 population (2011)Death Rate: 7.15 deaths/1,000 population (2011)Net Migration Rate: 2.28 mirgants/1000 populationUrban Population: 86%Rate of Urbanization: 0.9% annual rate Index mundi.(2011).New zealand demographics. Retrieved from:http://www.indexmundi.com/new_zealand/demographics_profile.html
PSYCHOGRAPHICFreedom From Corruption: 93.0Investment Freedom:75.5Trade Freedom: 86.8Education: Early childhood, primary & secondary, tertiary educationSocial Mobility:Most small cultures live off land. Most people are poor.Employment Patterns:Season due to patterns in horticulture.Cultural Taboo: Official languages are English and Maori. Index mundi.(2011).New zealand demographics. Retrieved from:http://www.indexmundi.com/new_zealand/demographics_profile.html
GLOBALIZATION• FDI: $560.7 Million• CPI: 2.3%• Employment: 63.9%• Unemployment: 6.5%• Exchange Rate: 1.6% Products from new zealand.(2011). Economy of new zealand. Retrieved from:http://productsfromnz.com/browse_1821
GLOBALIZATION• Well-Educated• Advancing technology• High population of educated citizens who speak English• Trade agreements to export services and products• New Zealand is well known for attracting people all over the world for tourism and film production.• Economic growth has increased 3 percent annually,• Receiving pressure from inflation• The opportunity for Basecamp would be helping in the shortages in the architecture, engineering, health care, higher education and law enforcements. New york times.(2006).Managing globalization. Retrieved from:http://www.nytimes.com/2006/02/14/business/worldbusiness/14iht
GLOBALIZATIONProducts• Agriculture Sector• Leading country in exporting dairy products• 50 % of total exports are from dairy, meat and wool• New Zealand supplies over 90 countries with meat Sheep (2nd largest producer) Timber (2nd important industry) Crops (grown dramatically) Manufacturing (textiles, leather goods, tobacco, rubber) Tourism (top earner of foreign exchange) Products from new zealand.(2011). Economy of new zealand. Retrieved from:http://productsfromnz.com/browse_1821
GLOBALIZATION• According to the Business R&D graph above, the R&D has not been very successful in New Zealand. This opens and opportunity for Basecamp to have a goal by increasing the percentage by helping local businesses improve on strategies get gain a greater return on investments.Products from new zealand.(2011). Economy of new zealand. Retrieved from:http://productsfromnz.com/browse_1821
GLOBALIZATION New Zealand is ranked the number one country where foreign student come to New Zealand to study and learn more about the economy and opportunities available. New Zealand has a high rate of travelers that come visit, due to the safety and security, warm climate, environmentally friendly and its inexpensive to visit and study. New Zealand experiences high flow of migrants, and the immigration rate has increased which helped the economic growth as for the immigrants have a higher education.The treasury.(2011).international connections and productivity. Retrieved From:http://www.treasury.govt.nz/publications/research-policy/tprp/09-01
GLOBALIZATIONThe treasury.(2011).international connections and productivity. Retrieved From:http://www.treasury.govt.nz/publications/research-policy/tprp/09-01
Market Entry How Basecamp Can Use ThisInternational Trade Theory Theory• We decided to go with • New Zealand’s main exports Heckscher-Ohlin Model for are forest products such as our international trade lumber, dairy products, and theory steel and mining. For – New Zealand has a lot of natural resources that they Basecamp to build can export to other countries. properties, they would be It is a capital-abundant able to use those natural country, which can export a capital-intensive good such as resources. their natural water, lumber, and vegetables.
Market EntryMarket Entry Strategy• Strategy: Alliance – New Zealand has only 38% of their land that isn’t farmed. – New Zealand has a high – livestock such as sheep population but low dominates most of this land. technological advancement, This doesn’t give us a very big our best way to build our margin to work with when business in New Zealand developing new buildings and would be to build an alliance camps. By building an alliance with the current businesses with already existing cultures and tribes in New Zealand. such as the Polynesian and the Maori, we would be able to establish a camp and work with their resources.
COMPETITIVE ANALYSISAustralia• Fast growing economy in the world• Mineral exports also grew by 55 percent• Agriculture-3.8 percent• Industry 24.9 percent• Services 71.3 percent• unemployment rate was 5.192 percent Economy watch.(2012).Australia Economy. Retrieved from: http://www.economywatch.com/world_economy/australia/?page=full
COMPETITIVE ANALYSISAustraliaAustralia is a major competitor as for the agriculture industryis also a growing. It’s a fast growing industry and tourism countrywhere people love to visit and work. Economy watch.(2012).Australia Economy. Retrieved from: http://www.economywatch.com/world_economy/australia/?page=full
COMPETITIVE ANALYSISUNITED STATES• GDP 15 trillion dollars• Growth rate 1.5% (2011 est.)• Agriculture: 1.2%• Industry: 22.1%• Services: 76.7% (2011 est.) Central intellegence agency.(2011). The world factbook. Retrieved from: https://www.cia.gov/library/publications/the-world-factbook/geos/us.html
COMPETITION ANALYSISUNITED STATES• Farming, forestry, and fishing 0.7% manufacturing, extraction, transportation, and crafts: 20.3%• Managerial, professional, and technical: 37.3%• Sales and office: 24.2%• Other services: 17.6% Central intellegence agency.(2011). The world factbook. Retrieved from: https://www.cia.gov/library/publications/the-world-factbook/geos/us.html
COMPETITION ANALYSISUNITED STATESWith all the similarities in the laws and government regulations,The United States is a major competitor. The United States has astrong agriculture industry and very advanced technology thathas been increasing the country’s GDP.
COMPETITION ANALYSISRED CROSS• The Red Cross is a major competitor, for they also do volunteer work abroad• Red Cross helps countries that had major disasters and need help to recover• Raise money and awareness• Mission to improve lives• Independent
Service PlanService mode: ability to help • Country of Origin Effects international students or – Main products New Zealand others make a difference in could offer people coming to New Zealand by Basecamp would be: breath volunteering. taking scenery, technology free culture, newProcess: apply within architecture, untouched Basecamp offices in Canada landscape. and set up contract to work in New ZealandPricing: has yet to be established due to unattainable research. Basecamp average price is $2595.00
Service Plan• Challenges of Marketing a Service Abroad: – Current tribes and cultures may not be willing to share land – Cultures may not like having another countries business “disrupting the peace” of their current environment – Laws and regulations – Government corruption
DISTRIBUTION• Distribution channels help the New Zealand market grow by 5 billion in technology exports.• Tourism has helped build a distribution relationship with New Zealand.• New Zealand currently does not have a grey market, as so all products and services provide a positive and beneficial outlook on the country.• A website is already set up for North American and European students who would like to register for this.• We are going to make this website registrations accessible to anyone within our target market. Distribution channels. (2009). New Zealand. Retrieved from: http://www.keanewzealand.com/new-zealand/news/using-distribution-channels- grow-market-share
Advertising Strategy• Basecamp should keep all advertising simple in this country.• General language is English but many tribes have a broken/ adapted English• Positioning Difference: one of the first businesses to do this in New Zealand. We promise the best cultural and educational experience possible.
Advertising Strategy• Where: – Any big countries such as Canada, United States, and Europe, who have a disposable income and willing to spend the $3000 on this trip and experience. – Post-secondary schools and high schools are the perfect place to reach our target market: students• When – During the school year and as soon as the school year is about to end. So September – June.• Why – Students are at the perfect age where they want to experience new adventures and have no major responsibilities such as mortgage or children that are holding them back from these kinds of trips.• Who – Students with a disposable income and the ability and will to volunteer and experience something new in a new culture.
Challenges in Advertising StrategyChallenge Solution• Not enough people register • Set a goal and make sure to reach your target • With the right research, this• Advertising to the wrong problem can be avoided target market • Set up advertisements• Not being able to reach closet to the biggest area proper target market and reach of target market at lowest cost
S.W.O.TBased on the opportunities that are available for New Zealand to explore and expand, there is a high chance of Basecamp to be successful in New Zealand. With village development and expansion allows for more citizens to have more jobs and provide shelter to those who are poor. Basecamp could not only help with the village expansion but also improve the education of the citizens. Basecamp can help further the development of the agricultural development and integrate technology advancements to produce innovated idea and structure to improve the economy.
CONCLUSIONIn conclusion, we have decided that New Zealand is a greatopportunity for business. The high level of businessfreedom and labor freedom provides great opportunitiesfor new business. Citizens also have a high monetaryfreedom rate, which means they are able to spend theirmoney on what they need and want. The education systemis highly developed so educated workers are available.Most employees work with agriculture due to the seasonsand very fertile land. So any business with any kind ofagricultural requirements will succeed efficiently. NewZealand also has similar laws regarding customers,businesses and their employees as Canada, so anadjustment would not be necessary for our employees towork there.