1. Identify and explain key provisions of relevant legislation and codes of practice affecting aspects of marketing operations
2. Explain the role of the Organisation for Economic Co-operation and Development (OECD)
3. Assess international trade patterns with the country or countries you have chosen and identify their likely importance for Bounce Fitness or the business you have chosen to use. You must relate these to economic, social and industry directions, trends, practices and techniques.
4. Research international business and electronic commerce market factors with the country you have chosen and assess opportunities to enter shape or influence the market in terms of their likely contribution to Bounce Fitness or the business you have chosen to use.
5. Identify if the country you have chosen is operating under free trade or protectionist arrangements and estimate likely ease of entering and trading successfully explaining why your believe this to be true
6. Identify the international trade policies and agreements with the country you have chosen and estimate their likely impact on the plans of Bounce Fitness or the business you have chosen to use to export there
7. Identify and analyse the impact of economic, political, social and cultural factors affecting the market of Bounce Fitness or the business you have chosen to use on their international marketing opportunities
8. Investigate market trends and developments in the country to which you plan to export to identify market needs relative to Bounce Fitness or the business you have chosen to use.
9. Identify new and emerging business and electronic commerce markets, and assess opportunities to enter, shape or influence markets in terms of their fit with business goals and direction, and their likely contribution to the business
10. Analyse and rate the acceptability of political, financial stability and corruption risk factors that exist for Bounce Fitness or the business you have chosen
11. Analyse and rate the acceptability of legal and regulatory requirements, and trade barriers for Bounce Fitness or the business you have chosen.
12. Relate risk factors to international business cycles in terms of economic conditions and estimate their impact on potential market or markets to be targeted by Bounce Fitness or the business you have chosen.
13. Identify and analyse international marketing opportunities in terms of their likely fit with the goals and capabilities of Bounce Fitness or the business you have chosen
14. Evaluate each opportunity to determine its impact on current business and customer base relating to Bounce Fitness or the business you have chosen
15. Use an assessment of costs, benefits, risks and opportunities to determine financial viability of each marketing opportunity for Bounce Fitness or the business you have chosen
16. Determine probable return on investment and potential competitors
17. Describe and rank marketing opportunities in terms of viability and likely contribution to the business.
Code of practice set the standard of industry operation and help to build an image in the mind of your customer. Usually, code of practice can be formulated in consultant with the industry or can adopt the pre-formulated rules and regulations that was earlier formulated by the industry or the government in which you have to conduct the business. Therefore there two types of rules and regulation that a business has to follows: mandatory laws and voluntary laws. Mandatory codes provide a minimum level of security to consumer where voluntary laws are form of industry self-regulation on which the industry has its own control and can be imposed or not according to the situation as needed. The key provisions related to international business operation are the guiding factor for the any business or start-up. The business operation must follow the law regarding consumer protection, competition, regulations about product liability, environmental legislation, price setting, fair trading law, privacy laws etc. There are number of statutory body that helps in to maintain the ethics of the business such as, ACCC (Australian Competition and Consumer Commission), ACL (The Australian Consumer Law), and OAIC (Australian Information Commissioner). There are number of international statutory body that control and guide the overseas business like WTO (Australian Trade and Investment Commission, 2018).
OECD is responsible for maintaining a good relationship among the world’s major economic player by setting global standards in the area of economic development and social development (such as financial market, sustainable development, education, investment, and quality of public administration etc.) including highly specialised field such as nuclear research and biotechnology. OECD also helping in hastening the global trade and doing research in the area of economic and social development, science and technology, finance and taxes, global trade, the environment and public administration. These standards and provisions are so important after its implementation and adoption, for the international investors whose decisions based on the comparative data which is published by the OECD (Office of the United States of the Trade Representatives, 2018).
Through the last four decades, there has been a record growth in international trade amongst the countries and there is no indication of slowing down. The global trade is dominated by few countries like USA, China, UAE and India etc. over the last 40 years, trade as changed from major flows between US and Europe to major flow between Asia and Europe. Because of the population boom in Asian countries like China, India, Japan, and Brazil etc. and deep poverty level they are suffering with health and fitness issues. Therefore we can consider their health perspective and their fitness problem we can export the bounce fitness weight equipment to these countries.
The Asian countries like China, and India has large number of young population and their disposable income is also continuously increasing, they are more conscious about the health and fitness. China and India are two big young population countries that could be a great market for health related equipment because they are suffering from unhealthy eating habits and hectic lifestyle. As a result fat or overweight population is on rise in Asian countries. So, people are focusing on more work outs to lose Weight. They are continuously dominating in online purchasing and using e-market through mobile phones and laptops. So, with the increasing population of Asian countries the growth of the internet and e-commerce activity has been rapidly increasing and the demand of the fitness equipment are also increasing through e-commerce. Therefore it will be a good opportunity for Bounce Fitness to enter in Asian countries like China and India to spread its business and target mass through the help of e-commerce market (Projects Apec market, 2015).
Countries like China, South Korea, and India are the developing countries and are active member of WTO and following the WTO norms and guidelines for trade. They need to expand their trade with the other countries of the world for their economic and social development. These countries are very liberal in their trade policy. So it is very easy to enter this large Asian market. These countries are also member of ASEAN and FTA (Free Trade Agreement) that supports free trade without boundaries and restrictions beyond of their domestic territory. From last two decades these countries are doing large trade with other countries and their faster economic growth is the proof of their liberal trade policy.
Both China and India is the active member of WTO and follow the free trade policy of WTO to trade with other countries of the world. China and India have grown rapidly in recent years and, in both, the importance of trade has risen substantially relative to GDP. They open the gate of their economy (China in 2001 after taking membership of WTO and India in 1991) for the foreign investors and these countries also give status of MFN (Most Favoured Nation) to other nation to promote trade. The current multilateral system of trade of these countries involves MFN concept, which prevents any company from unilaterally imposing a higher tariff on one partner thane on others. The government policies of these countries are also supporting and so liberal about doing restrictions free trade and for this purpose they remove all the tariff barriers and restrictions to attract foreign traders and investors (UK Esssays, 2018).
Generally Asian people not believed in online shopping or using e-commerce site. The illiteracy rate is too high thus they are not literate enough to use e-commerce website. Another problem is that Asian people normally belief in cash payment rather online mode of payment. Government taxes on the imported products are too high and charges heavy import tax. Asian People more belief in yoga, Kung-Fu, and exercise, so it is so difficult to aware them about the fitness equipment. The technological advancement is another problem with the Asian people. They are still working on the technological aspects related to mobile networks and data efficiency. Therefore these factors adversely affect the online sell of weight equipment. Another problem is the low income level of people. People cannot be able to purchase costly equipment of bounce fitness, so we have to keep low margin of profit on the products (Otuedon, 2016).
According to Fitness equipment market report, published by allied market research, forecasts that the Asian market is expected to grow $2.4 billion by 2020, registering a CAGR of 7.5% during the period 2015-2020. The youth population is continuously growing in Asian countries and the disposable income is also increasing continuously (Transparency market research, 2018). Therefore, with the rising of disposable income the awareness of people about their health and fitness is continuously increasing day by day. By 2020, the adoption of fitness equipment by health clubs would contribute about 47% of the Asia pacific fitness equipment market revenue. Economy of both India and China growing very fast and the adoption of the health and fitness equipment by health clubs, hotels, hospitals are also continuously increasing with the increasing economy (Allied Market Reseach, 2018).
In recent time countries like China and India is good place to invest in any business because they are developing countries and have large population. They are busy in shaping the economy of the country and it will be a good opportunity to enter in the Asian market. Because a great portion of these countries belongs to the youth population it will be easy to enter in business related to health and fitness equipment. Another benefit to target the Asian market is that we can target these markets through the help of E-commerce business. E-commerce is currently on boom in the Asian country because of the digitalization era in China and India (Payu, 2017). Only these two countries are contributing more than 2.7 billion of population of the world and with the growing population the level of income level and disposable income is continuously increasing thus they are ready to expense their income on their fitness and health (Emerald Insight, 2015).
Across both the Asian countries high unemployment rate and energy price shocks are the major problem area. After this failure of governance and poor infrastructure is another problem in the Asian country. Another threat is for online business and trade is large cyber-attacks. Asian countries are continuously facing large cyber-attacks that disrupted businesses in major Asian economies, with China, India and Vietnam reported to be among the 20 countries who effected badly by cybercrime (Wannacry Ransomeware cyber-attack effect larger part of Asia and its economy). The political factor is also an important factor of Asian countries. There is huge instability in the political and governmental rules and regulations of almost all the Asian countries. The poor infrastructure of the Asian country is another problem after considering the logistic and supply chain prospective. So, these factors are more considerable during export planning and there should be ‘B’ plan for these risk factors (World Economic Forum, 2017).
Both India and China remove the trade barriers from import and export of goods but still in some areas they require licence like India government requires a special import licence on import of motorcycle and automobiles that is very restrictive. These Asian countries also test the product Quality by comparing the product with international standard quality. They also provide export subsidies for the same product and financial help to the domestic player of the same industry that increase the competition of Bounce Fitness with domestic competitors of the same product. Once the exporter pass the product quality test and got the certification of quality, it will be easy for the exporter to enter in Asian market. These countries also allow a price preference for local suppliers against the foreign suppliers that discriminate them against the exporter. So enter in Asian market is tough because there lot of support provided by the government to its domestic suppliers that increase the competition with the foreign supplier of same product (Cuniberti, 2016).
One of the big risk with the Asian countries are that these are developing countries and a small adverse change in the environment such as, change in government, change in rules and regulation, change in tax regime, and recession etc. can affect hole economy and that change everything in the country. So it is essential to analyse all these condition before entering in the Asian market. Heavy fluctuation in the economy also adversely affects export of the product. Political instability, financial stability and legal and regulatory requirements are other risk factor that determines the trade business with these countries. The income gap among the Asian people is too high so it is tough to maintain a single advertising and selling scheme for all people. So before entering in Asian countries like China and India such risk factors must be analysed and evaluated by the Bounce Fitness (Peerawat, 2012).
In the era of electronic commerce Bounce Fitness can target whole international market by electronic means of advertising. Through E-commerce we can target mass all over the word and the advertisement cost is comparatively less than any other means of advertising. Another opportunity for marketing in those countries is social network site. As we all know that these Asian countries are developing country and large population country and they are using social media like Facebook and twitter. So these media of marketing of fitness equipment is suitable and less expensive. In recent past, due to heavy work pressure there is number of health issues people face like diabetes, heart-related problems, high and low blood pressure etc., further obesity, is the major concern of people in both developed and developing countries. Bounce Fitness can target both young and old people for purchase the exercise equipment to take of their health related issue (Elsevier, 2011)
Social media is one of the attracting means of marketing because large number of Asian people using social media for communication and entertainment. Through social media and promotional activity we can target huge number of people in China and India. Although, China has its own social media platform and they are not using Facebook or Twitter, but Bounce Fitness can purchase a place for advertisement in the Chinese social media platform. Google ads are another option for marketing your product. Through the medium of digital marketing opportunities we can market of the products to mass and anywhere on the globe. The social media marketing is very economical and a new fitness centre like Bounce Fitness can afford the cost. Because e-commerce is growing in dramatic way all over the world and is considerably affect the customer and business market behaviour it will be great opportunity for marketing (Business, 2018).
Through the use of social media Bounce Fitness can target large number of people free of cost. This is one of the great advantages of Social media. But in paid version of advertising through Google and Facebook, or other social media like Chinese social media, we have to pay very minimum amount of money. Google is providing a platform for advertising such products with minimum cost with your target location. One of the great benefits of such type of marketing strategies is that you can target a large number of people with maximum effect in their mind about the product. But there is also a big risk involved in social media advertising is that hacking and cyber security problem. Every day there are number of sites hacked and destructed by the hackers. Another possible risk with social media is great exposure online has the potential to attract risk that includes negative feedback, information leak or hacking.
It will be estimated that a very good return Bounce Fitness received in turn of their investment. But a large investment required for export of the fitness equipment in Asian country. The cost of the equipment and the margin of profit will determine about the return what will we earn on our investment. In other hand the cost of advertising and marketing of the product is too less because of social media. The potential customer of Bounce Fitness will be youth and old people both because they all need health equipment to maintain their good health. The working women and those women who are suffering with over weight problem can be our potential customers. So, there is large scope for bounce fitness to explore its business all over the world (Marketing91, 2017)
The export of fitness equipment from Australia to China or India is tough task and it could be possible through shipping and needed huge amount of money. If once it could be manage the distribution channel should be identified in the targeted area of marketing. Both China and India is developing country and continuous work upon super market concept, so it will be easy to target and launch as a channel through which product can be sell to its potential customer. The anther reason behind this agenda is in these countries the number of upper middle class and higher class is very low, and only higher income groups can afford the health equipment because of its cost and they can easily be identified and targeted through this super markets and large shopping malls and super markets. So, all the problem the business will faced tough competition from the existing market players, heavy cost of shipping, and the instability in government rules and regulation, politics and the technological issues that could be faced by Bounce Fitness in Asian market (Cision, 2017).
Australian Trade And Investment Commission. (2018). Australian business and environmental laws. Retrieved from: https://www.austrade.gov.au/International/Invest/Guide-to-investing/Running-a-business/Understanding-Australian-business-regulation/Australian-business-and-environment-laws
Office of the United States of the Trade Representatives. (2018). Organization for Economic Development and Trade. Retrieved from: https://ustr.gov/trade-agreements/wto-multilateral-affairs/oecd
Projects Apec market. (2015). Asia-pacific Fitness Equipment market is expected to reach $2.4 billion, Retrieve from: https://www.prnewswire.com/news-releases/asia-pacific-fitness-equipment-market-is-expected-to-reach-24-billion-projects-apacmarketcom-505821111.html
World Economic Forum. (2017). What risk are keeping Asia’s business leaders up at night. Retrieved from: https://www.weforum.org/agenda/2017/10/asia-economic-risks/
Marketing91. (2017). How to determine market potential for any product or services. Retrieved from: https://www.marketing91.com/determine-market-potential/
Elsevier. (2011). The impact of e-commerce on international trade and employement. Retrieved from: https://ac.els-cdn.com/S1877042811015382/1-s2.0-S1877042811015382-main.pdf?_tid=20d2e084-0462-42b3-8f8d-3dc9a3a20bff&acdnat=1528867725_0d93d70a5dabf4e486a9fe3d9c701242
Allied market research. (2018). Fitness Equipment Market by Type (Cardiovascular Training Equipment, Strength Training Equipment), End User (Home Consumer, Health Clubs/Gyms, Commercial Users) - Global Opportunity Analysis and Industry Forecast. Retrieved from: https://www.alliedmarketresearch.com/fitness-equipment-marketTransparency market research. (2018). Fitness Equipment Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 – 2024. Retrieved from: https://www.transparencymarketresearch.com/fitness-equipment-market.htmlEmerald insight, (2015). International e?marketing: opportunities and issues. Retrieved from: https://www.emeraldinsight.com/doi/abs/10.1108/02651330510630249
Cision. (2017). Checking the market viability. Retrieved from: https://www.fao.org/docrep/006/Y4851E/y4851e0b.htm
Business. (2018). Pros and cons of using social media. Retrieved from: https://www.business.gov.au/info/run/advertising-and-online/pros-and-cons-of-social-media
UK Essays. (2015). Environmental Factors for International Marketing. Retrieved from: https://www.ukessays.com/essays/marketing/environmental-factors-for-international-marketing.php
Peerawat, C. (2012). Effects of e-commerce marketing strategy on performance of e-commerce firms. 12(3). Retrieved from: https://www.freepatentsonline.com/article/International-Journal-Business-Strategy/312014373.html
Otuedon, U. (2016). Factors Affecting International Marketing Strategies: Pricing, Channel Structures and Advertising. 8(5). Retrieved from: https://www.iiste.org/Journals/index.php/EJBM/article/viewFile/28661/29423
Cuniberti, G. (2016). The Laws of Asian International Business Transactions. 25(1).
Payu. (2017). E-commerce Continues to Boom in Emerging Markets. Retrieved from: https://corporate.payu.com/blog/e-commerce-continues-boom-emerging-markets