Discuss about the Market Analysis of Manuka Honey.
Manuka honey exporting from New Zealand to Mexico
Manuka honey is one of the important export products of New Zealand. It is one of the most beneficial and unique type of honey available in the market. In 2015, the amount of global export of the Manuka honey has doubled. Mexico is one of the main importers of this honey ("manukahoney.com", 2017). Although Mexico produces almost 57,000 tons of honey every year, making it the sixth largest country in honey production, still Manuka honey has been able to capture the honey market in Mexico.
Market entry Analysis based on chosen country Mexico
New Zealand is the third-largest exporter of honey in the world. Mexico has shown predictable and stable economic growth over the years. At the same time, Mexico has free trade agreement with maximum number of countries in the world. Hence, the terms of trade are much better for Mexico to do business with. Being the 11th largest economy of the world, Mexico is a profitable destination for the exporters of the world. Manuka has been able to capture the market in Mexico due to lower price and better quality. Mexico is one of the major importers of Manuka honey. This is sometimes used as an alternative medicine. Hence, there is demand for Manuka honey in the medical practices of Mexico. The other factors for choosing Mexico as export destination are the profit making scopes, growth of business in a foreign market, international brand image, and competitive advantage. The country specific factors include the quality and price of the local production, the economic and political stability, government policies supporting the business of honey imports.
The target market of the Manuka Honey is mainly the middle age people of the society who use honey for various house hold works or use honey as a medicine (Kamaratos et al., 2014). It is important for every business organization to identify the target market and observe the requirement of the potential consumers. Manuka Honey often conducts market survey on the target market to understand the market demand of their product and requirements of the consumers. It helps the organizational management to design their organizational strategy according to the requirements of the consumers. Therefore, Manuka honey used the method of market survey for assessing the demand for the imported honey. They used the target group of middle aged customers as well as the retailers, who can give feedbacks about the sales data of honey.
Evaluation of methods
Manuka honey has used the survey method for market research. It is most reliable and practical method for market research. Surveys give the first hand feedback of the customers. Before entering the market, Manuka performed the market survey. The survey included the middle aged and senior customers as well as the retailers. Manuka found out that customers do not like the local honey brands, as they feel that the quality of honey is degrading and the price is getting higher day by day. Thus, this survey method was useful as the respondents found it easier to give answer as per the questions asked. The retailers also found it easier to respond to the questions, as it did not take longer time and hamper their business. Thus, this survey method adopted by Manuka was successful to do the market research for the imported product (Thamboo et al., 2016).
Mexican honey industry is renowned in all over the world. According to some reports, Mexico is known for exporting huge amount of honey to the various corners of the world. Almost every year it exports 45,000 tons in the other countries. At the same time, Mexico imports close to 5% of honey from New Zealand. The competitive advantage of exporting honey to Mexico is the lower entry barrier, lower quality of the products of the local competitors and better price. New Zealand exploits these advantages for exporting honey to Mexico. It provides a great opportunity to the Manuka Honey to earn huge profit by providing high quality honey (Alvarez-Suarez et al., 2016).
By providing quality honey to the Mexico, Manuka Honey has put a strong footprint in the market, which is highly beneficial for the organization to earn desired reputation among other rival companies and defeating other competitors.
Finally, it can be concluded that, Manuka honey from New Zealand has been successful in making a good brand image in Mexico. Through a proper market entry analysis and proper market research, Manuka honey was able to find the scopes for the growth of business in this country. Although Mexico is a major honey exporter in the world, still Manuka became a big brand name in Mexico by providing good quality of honey to the customers.
Alvarez-Suarez, J. M., Giampieri, F., Cordero, M., Gasparrini, M., Forbes-Hernández, T. Y., Mazzoni, L., ... & Varela-Lopez, A. (2016). Activation of AMPK/Nrf2 signalling by Manuka honey protects human dermal fibroblasts against oxidative damage by improving antioxidant response and mitochondrial function promoting wound healing. Journal of Functional Foods, 25, 38-49.
Kamaratos, A. V., Tzirogiannis, K. N., Iraklianou, S. A., Panoutsopoulos, G. I., Kanellos, I. E., & Melidonis, A. I. (2014). Manuka honey?impregnated dressings in the treatment of neuropathic diabetic foot ulcers. International wound journal, 11(3), 259-263.
manukahoney.com. (2017). manukahoney.com.
Thamboo, A., Mulholland, G., Matthews, K., Ayoub, N., & Anderson, D. (2016). Objective and subjective scar aesthetics with topical Manuka honey post-thyroidectomy: A randomized control study. World Journal of Otorhinolaryngology-Head and Neck Surgery.