Australia Zoo Research Report

1. AMB336: International
Marketing
Research Report: Australia Zoo
Steven Yule: n8601321
Word Count: 1788
Tutor: Sandy Sergeant
Tutorial: Thursday 11-12pm

2. 2 | P a g e
1.0 ExecutiveSummary:
The purpose of this report was to analyse and evaluate internet technology’s to discover whether
they can enhance the abilityof AustraliaZootoincrease itsprofitsbothnow andinthe future within
the Japanese market. Researchindicatedthatthe Japanese are avid internet users, where the total
numberof users isset to increase exponentiallyin the coming years. They also already have a deep
knowledge inregardtoinnovative internettechnologiessuchasVirtual Reality (VR) and Augmented
Reality. A varietyof challengeswere discoveredthoughintermsof implementingsuchtechnologies
includingconsumer behaviour and economic issues along with government agency risks. Based on
these findingsit isrecommendedthatAustraliaZooundertakesanon-sequential networkmarketing
approach where the corner stone marketing activity is setting up a VR shopping mall stall in Japan.
Thisstrategywill couple the VRtourof the zoowith a VRretail store where adiscount in admittance
cost will be available. If this strategy is to be implemented, it is expected that the number of
Japanese visitors will increase, along with the bottom line.

3. 3 | P a g e
Contents:
1.0 Executive Summary:..........................................................................................................2
2.0 Research:.......................................................................................................................... 4
2.1 Opportunities forAustralia Zoo in Japan..........................................................................4
2.1.1 Internet Technology Trends..................................................................................... 4
2.2 Challenges of the Japanese Market................................................................................. 4
2.2.1 Client Analysis........................................................................................................4
2.2.2 Japan’sPerception of Australia................................................................................ 5
2.2.3 Government Agency Risks....................................................................................... 5
3.0 Recommendations:............................................................................................................ 6
3.1 Marketing Strategy ........................................................................................................6
3.2 Virtual Reality Shopping Mall Stall................................................................................... 6
4.0 References:....................................................................................................................... 8

4. 4 | P a g e
2.0 Research:
2.1 Opportunities for Australia Zoo in Japan
Historically, Japan has been one of Australia’s largest inbound markets, ranking fifth in 2012 with
325,000 visitors, whilst injecting $1.6 Billion into the Australian economy (TRA, 2013). In 2016
Australia recorded a 23% increase in arrivals from Japan, indicating that this market is more than
willingtoindulgeoninternational traveldespite the nation’s slow economicgrowth (Deloitte, 2017).
However, this slow GDP growth in Japan (0.50%) (Trading Economics, 2017) has primarily been a
resultof olderworkersleavingthe workforce whichhasnotinfluencedthe visitornumbers (Deloitte,
2017). Importantly for Australia Zoo, Japan is Australia’s seventh largest market for leisure visitor
arrivals, where the Australianwildlifeisrankedsecond in terms of the greatest appeal for Japanese
travellers (Tourism Australia, 2015). Adding to this, Australia’s Free Trade Agreement with Japan
offers increased access to Japan’s markets, with an estimated 97% of Australia’s exports receiving
duty free or preferential access when fully employed (Robb, 2015). If Australia Zoo is able to take
advantage of JapansfascinationwithAustralia’swildlife,the firm’s performance will increase along
with its international reputation and growth.
2.1.1 Internet Technology Trends
In 2016 it was estimated that there were well over 115 million individual internet users in Japan,
penetrating 91% of the total population (W3C, 2016). With this in mind, it also is estimated that
74.6 million people in Japan used their mobiles for internet access in 2016 with a forecast of 77
millionusers by 2021 (Statista(a), 2016). This data is also important to consider when analysing the
prevalence of both virtual and augmented reality use within the Japanese market. With thanks
mostlytothe rise of Pokemon GO, Augmented reality quickly became popular within Japan. It was
estimatedthat24% of Androiddevice users hadgained knowledge of this technology via this game
(Schwartz, 2016). In terms of Virtual Reality (VR), approximately 12 million headsets were sold
worldwide in2016 (Statista(b),2016),23% of these were formobile devices (Statista(c), 2016). With
Japan being the second ranked consumer market in the world, it can be presumed that a large
portion of all VR headset purchases occur there (IBG, 2014). With the current access that the
Japanese people have to the internet and corresponding technologies, a clear avenue for entry is
available for Australia Zoo.
2.2 Challenges of the Japanese Market
2.2.1 ClientAnalysis
Japanese consumers have recentlybeguntoactsimilarlyto boththe Europeansand Americans. This
isdue to theirwillingnesstopurchase products based on their quality and convenience, along with
utilising cheaper online retailers (Salsberg, 2010). This change though does not stem from the
slowing economy, but because of the digital revolution sweeping the country (Salsberg, 2010). As
they are drawn to premium goods and services, their attention is also shifted towards products
which offer high returns on trade investment (Austrade, 2017).

5. 5 | P a g e
Not only does the Japanese market expect quality, but they also pride themselves on innovation
whichaddsto theirproducts’value proposition. This strong commitment to quality and innovation
adherestoa level of loyaltywithinthe business environment (Austrade, 2017). A challenge though
for Australian firms is the fact that business usually occurs in the Japanese language. If access to a
translatorisn’tpossible,itishighlyrecommended that English is spoken clearly and purely in order
for an understanding to occur between the two parties (Austrade, 2017).
2.2.2 Japan’sPerceptionofAustralia
As a whole,the Japanese view Australiansverypositively. Strongpeople-to-people links play a large
role inour bilateral relationship (Australian Embassy - Tokyo, 2016). These links echo the 102 sister
cityrelationships and6state-to-state relationships which Australia and Japan have. This comradery
facilitates an exchange of education, culture, social and economic practises (Australian Embassy -
Tokyo, 2016). In terms of our business relationship, in 2015, Japan was Australia’s second-largest
tradingpartner, export market, and in-bound direct foreign investor (DFAT, 2017). With the recent
implementation of the Japanese Australia Economic Partnership Agreement (JAEPA), Australian
Business are able to Internationalise much easier than previously, which opens up a clear path of
Entry for Australia Zoo into the Japanese Market.
2.2.3 GovernmentAgencyRisks
Japan’saccessto the internetisknownas‘free’internet.Thisisdue tothe constitutionprotectingall
speechandprohibitscensorship. Forthe mostpart, the governmentsMinistryof Internal Affairsand
Communications has little influence over online content, which is mostly regulated by industry
playersandinternetproviders (FreedomHouse,2016). One key issue whichinfluences Australia Zoo
isthe Japanese government’s support of its whaling industry. Recently, Japan stated that it would
continue its whaling program in Antarctica despite the International Whaling Commissions (IWC)
stating that there was inadequate evidence for killing whales for scientific purposes (O'Connor,
2016). Our own owner, Terri Erwin recently made an international plea to Japan to stop their
whaling program by opting to support different projects that will study whales in our oceans
(Wildlife Warriors, 2017). Opting to grow our brand in Japan may result in backlash from the
Australian public, where local clientele may be lost.

6. 6 | P a g e
3.0 Recommendations:
3.1 Marketing Strategy
In order for Australia Zoo to attract Japanese clientele via internet technology marketing, an
appropriate internationalisationapproachneedstobe identifiedalongwithidentifying whether the
product needs to be standardised or adapted for the Japanese market. Firstly, it is recommended
that the Non-sequential networkapproachisutilised.As a whole, this approach focuses on the role
of linkages and relationships in the internationalisation process, via the recognition that value
creation is the responsibility of the entire value chain (Matthews, 2017).
These networks play a substantial role in the theory and practice of internationalization as they
encompass sets of inter-connected individuals or organisations, where these relationships may
appearin many forms (Coviello & Cox, 2006). This process of creating network interactions creates
social capital which enhances the firm’s ability to internationalise effectively via a product which
speakstothe targetmarket (Shirokova & Storchevoy, 2011). This approach is particularly important
when initially internationalising since it views markets as a system of relationships between
suppliers, competitors, customers, relatives, friends, and government agencies meaning this
approach can target even the broadest of markets (Osarenkhoe, 2009).
This network approach has three core dimensions. The relationships dimension speaks to the
strength of the gathered connections in relation to the amount of time, emotional intensity and
intimacy of the product (Kiss & Danis, 2010). The cognitive dimension refers to the shared
characteristicsbetweenthe international origin markets, for example, common value systems and
languages (Musteen, Francis, & Datta, 2010). Finally the structural dimension refers to the created
networkasa whole,intermsof the diversity,densityandsize of the attracted market (Kiss & Danis,
2010). In the end, this approach outlines what Australia Zoo needs to do. Create tightly knit
relationshipswiththe Japanese marketviatechnologytoconvince themtovisitourfirm. In terms of
the product which needs to be marketed, it is recommended that the product is adapted for the
Japanese instead of standardising it. This option is ideal due to the variation in needs and tastes
along with the differences in culture between Australians and the Japanese. By adapting the way
our product is marketed, Australia Zoo will maintain its competitive advantage by specifically
relating our product to the needs of our prospective consumer.
3.2 Virtual Reality Shopping Mall Stall
To be usedwithinthe non-sequential networkstrategy,itisrecommendedthatAustraliaZoo invests
in 360 degree digital mapping of the zoo, where this footage will act as a virtual tour of the zoo
whichis thento be usedin a virtual reality (VR) shoppingmall stall in Japan. This VR experience will
act as the core marketing initiative, where it will be designed to act as the major pathway to
purchase forJapanese consumersbycapitalisingontheir love for the Australian wildlife along with
technology. Specifically, this virtual tour will escort the consumer through the zoo, focusing on
Australia’s native animals. At the end of the tour, the user will then be forwarded within the VR
systemtoa checkoutpointwhere theyare invited to order admittance tickets (the internet and VR
technology working in synergy).

7. 7 | P a g e
VR tourshave previouslybeenutilisedforgolferswhere they can virtually visualise a course before
playing it (ITS, 2016), and within the real estate industry to deliver the ‘Open House’ experience
(OCVR, 2017). Coupling this with the already popular use of VR retail stores in Shinjujku’s Isetan
departmentstore in Japan(Dhillon, 2016), Australia Zoo will enhance its competitive advantage by
revolutionizingthe theme andrecreational parkindustrybycombiningthese two technologies with
the already loved wildlife experience.
As previously noted, the Australia Zoo ‘product’ will need to be adapted to the Japanese
demographicinorderforthisstrategyto be most effective. Firstly,due tothe fallingvalue of the Yen
and the consumerbehaviourthatthe Japanese seek value (Salsberg, 2010), it is recommended that
tickets sold in the VR stall are sold at a discounted price. This strategy works effectively with the
overall marketingstrategysinceapositive relationshipwiththe brandiscreated along with the high
likely-hood of a positive word-of-mouth. It also creates an extra incentive for prospective travels
whomay see AustraliaZooasmore accessible due totheirpossible budget constraints. Secondly, it
isrecommendedthatthe productis advertised solely in Japanese. A study conducted by Education
FirstJapan Ltd foundthatJapan ranked26th
out of 60 countriesinthe EnglishProficiency Index with
a score of 53.21, down nearly a whole point from 2009 (Japan Today, 2014). This represents a
limited knowledge of the English language where if English is utilised, the reach of the strategy
would be drastically reduced.

8. 8 | P a g e
4.0 References:
Austrade.(2017). Doing Business:Exportmarkets - Japan.RetrievedfromAustrade:
https://www.austrade.gov.au/Australian/Export/Export-markets/Countries/Japan/Doing-
business
AustralianEmbassy - Tokyo.(2016). Australia-Japanrelations.RetrievedfromAustralianEmbassy
Tokyo:http://japan.embassy.gov.au/tkyo/ausjpn_relations.html
Coviello,N.E.,& Cox,M. P. (2006). The resource dynamicsof internationalnew venture networks.
Journalof InternationalEntrpreneurship,4(2),113-132.
Deloitte.(2017). Tourismand hotel marketoutlook. RetrievedfromDeloitte:
https://www2.deloitte.com/content/dam/Deloitte/au/Documents/consumer-industrial-
products/deloitte-au-cip-tourism-hotel-outlook-exec-summary-edition-1-2017-
230217.pdf.pdf
DFAT.(2017). Japan country brief.RetrievedfromAustralianGovernmentDepartmentof Foreign
AffairsandTrade:http://dfat.gov.au/geo/japan/pages/japan-country-brief.aspx
Dhillon,S.(2016). VirtualReality in Japan.RetrievedfromTechCrunch:
https://techcrunch.com/2016/09/21/virtual-reality-in-japan/
FreedomHouse.(2016). Freedomn the Net2016 - Japan.RetrievedfromFreedomHouse:
https://freedomhouse.org/report/freedom-net/2016/japan
IBG. (2014). The 25 LargestConsumer’sMarkets…And The OutlookFor2015. Retrievedfrom
International BusinessDegree Guide:http://www.internationalbusinessguide.org/25-
largest-consumers-markets-outlook-2015/
ITS. (2016). Virtual Reality Golf CourseTour.RetrievedfromImmersive technologyStudios:
https://vrtourpros.com/use-case/golf-courses/
JapanToday. (2014). Japan ranks26th of 60 countriesin globalEnglish proficiency.Retrievedfrom
JapanToday: https://japantoday.com/category/national/japan-ranks-26th-of-60-countries-
in-global-english-proficiency-index
Kiss,A.N.,& Danis, W. M. (2010). Social netwroksandspeedof new venture internationalization
duringinstitutional transition:A conceptual model. Journlof InternationalEntrepreneurship,
8(3), 273-287.
Matthews,S.(2017). AMB336 International Marketing:InternationalisationandNetworks[Lecture
Notes].Retrievedfrom
https://blackboard.qut.edu.au/webapps/blackboard/content/listContent.jsp?course_id=_13
2217_1&content_id=_6659309_1

9. 9 | P a g e
Musteen,M.,Francis,J., & Datta, D. K. (2010). The influence of internationalnetworkson
internationalizationspeedandperformance:A studyof CzechSMEs. Journalof World
Business,45(3), 197-205.
O'Connor,T. (2016). Japanesewhaling programdetailspromptscallsforAustralian Governmentto
takestrongeraction.RetrievedfromABCNews:http://www.abc.net.au/news/2016-03-
25/calls-for-australia-to-take-action-against-japanese-whalers/7276788
OCVR. (2017). Whatare 3D VirtualReality Tours.RetrievedfromOuwensCasserlyReal Estate:
http://www.ocvr.com.au/the-tours
Osarenkhoe,A.(2009).An integratedframeworkforunderstandingthe drivingforcesbehindnon-
sequentialprocessof internationalisationamongfirms. BusinessProcessManagement
Journal,15(2),286-316.
Robb,A. (2015). Robb:Japan FTA creates a world of opportunity.RetrievedfromTrade Minister:
http://trademinister.gov.au/releases/Pages/2015/ar_mr_150115.aspx
Salsberg,B.(2010). The newJapaneseconsumer.RetrievedfromMcKinsey&Company:
http://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/the-new-
japanese-consumer
Schwartz,J. (2016). Where Are Pokémon GO’sBiggestUsersand WhatOther AppsDo They Use?
Retrieved fromDigital Vision:https://www.similarweb.com/blog/pokemon-go-users
Shirokova,G.,& Storchevoy,M.(2011). Influence of Social NetworksonInternationalizationof
RussianSMEs. InternationalCouncilforSmallBusinessWorld Conference.Retrievedfrom
http://search.proquest.com/docview/922575107?accountid=29104 (09.07.2012)
Statista(a).(2016). Numberof mobile phoneinternetusersin Japan from2015 to 2021 (in millions).
RetrievedfromStatista:https://www.statista.com/statistics/239086/forecast-of-mobile-
internet-users-in-japan/
Statista(b).(2016). Projected virtualreality headsetsunitsales worldwidein 2016 (in million),by
device. RetrievedfromStatista:https://www.statista.com/statistics/458037/virtual-reality-
headsets-unit-sales-worldwide/
Statista(c).(2016). Value shareof virtual reality headsetsalesworldwideby device category in 2016.
RetrievedfromStatista:https://www.statista.com/statistics/544242/virtual-reality-headset-
sales-value-share-worldwide/
TourismAustralia.(2015). Japan - MarketProfile. RetrievedfromTourismAustralia:
http://www.tourism.australia.com/documents/Markets/Market_Profile_2015_Japan.pdf
TRA. (2013, October). Marketing Matters - Japan. RetrievedfromTourismResearchAustralia:
https://www.tra.gov.au/ArticleDocuments/185/Marketing_Matters_-
_Japan_OCT2013_FINAL_V2.pdf.aspx?Embed=Y?Embed=Y

10. 10 | P a g e
TradingEconomics.(2017). Japan GDP.RetrievedfromTradingEconomics:
http://www.tradingeconomics.com/japan/gdp
W3C. (2016). Japan InternetUsers.RetrievedfromInternetLive Stats:
http://www.internetlivestats.com/internet-users/japan/
WildlifeWarriors.(2017). Marine Conservation.RetrievedfromWildlifeWarriors:
https://wildlifewarriors.org.au/conservation-projects/marine-conservation/