Step one: Summarizing the facts
Everybody at least once, during the whole life wants to re-paint or re-color their own house, flat or apartment. If people decide to do so, nobody is looking at the warnings, that the usage of those paintings and colors is very dangerous. If we take a look at a usual painting, that we can buy in every drug-store, in each cover will be a warning of not breathing vapors in, use the color just while the windows are open, alert of not using the product while children presence and many more. In many cases we can see on the packing a big white scull with two crossed bones, what means that the product is toxic. In spite of that, many people want to have beautiful homes with colorful walls. Many people do not believe a professional painter and want to make painting on their own, without knowing how to use them.
It is quite non-understandable in the present time because today, everybody is seeking products, which are the most harmless either for them, either for environment. In the western Europe people realized that our health is on the first place and are trying to surround themselves with harmless stuffs.
Step two: State the problem or opportunity
The BIO Products Australia company wants to expand to European markets. The company only has branches in Australia, New Zealand, Tasmania and Queensland. They hope that their good name in Australia can help them to make good business in Europe. They also think that an advantage for them is that in Europe is no relevant competitor for them, because in Europe exist just small companies with similar product concentrating. BIO Products Australia relies just on their well-known brand name.
Step three: Analyze the Causes of the Problems or Environment of the Opportunity
Before the BIO Products Australia wants to enter the Europe’s markets, there is needed to do a detailed SWOT analysis.
Strengths:
Anti-allergic products
Non-poisonous products
Let the walls ‘breathing’
Products are free of solvents, toluene, glycol, xylene
Natural ingrediences as preservatives
Durability of paintings
Health and environmental friendly products
Variety of products
Proven to lower the ‘sick building syndrome’
Customer care
Weaknesses:
BIO Products Australia is in Europe not a known-brand name
Existence of similar products concentrating companies
Different customer needs in Europe and in Australia
Different color wishes from the side of European’s customers
Possible threat that in Scandinavian countries colors would not be cold-resist
New expenses for resistant colors/paintings
Higher price of products - because of Bio products
Expenses to hire Europe’s consultants for implementing a new brand
Opportunities:
In the European market do not operate many companies which are concerning with bio products – no relevant competitor
Many people from Australia live in Europe, they can be so called ‘walking advertisement’
People who like healthy lifestyle, will buy the product
BIO Products Australia comp. can show its proven quality to foreign markets
Threats:
People would believe more Europe’s companies and products
Not well-known brand in Europe
People would decide for a product of a known brand
High expenses for advertisement
High expenses to build/buy buildings in Europe
Time needed to find suitable employees throughout the Europe
Interpreters needed to interpret facts about the mother company
In less developed countries in Europe less chance to succeed (because of the price of the product)
The opportunity for BIO Products Australia company is to get into the Europe’s market and to reach stated points. The first step to succeed in the market is to work out an exact plan, step by step, how the company wants to implement the brand into the foreign markets. The second step can be the hiring of a consulting company and professionals who would create a marketing plan. It is also required to hire Europe’s consultants for marketing, because of accommodating Australian’s conditions to those of Europe.
Product:
However, on the Europe’s market are similar companies with similar products, the BIO Products Australia company can offer even new products. For example, it offers: Non-toxic and anti-allergic paintings, Pest and Fungus Protectors, Wall-Ceiling Gyprock, Floor-Slates, Floor-Corks, various varnishes, oils, and waxes. BIO Products Australia company prefers ingrediences which are nature based. To produce quality products, what means using natural organic and non-toxic materials, want the company minimize the harmful effect of similar products not just to the human’s health but also to the environment. Also to minimize heavy consequences to workers and users while using the product. The BIO Products Australia company uses ingrediences which:
Do not uselessly damage the nature
Are reliable (millions of satisfied customers throughout Australia)
No lead, mercury, formaldehyde, aromates, acrylonitride
The origin of products comes from renewable resources
Do not damage the natural cycle
Plants extracts, what allows the wood to ‘breathe’ is spite of being waterproof (BIO Products Australia, 2006)
Place:
The BIO Products Australia company wants to spread its branches all over the Europe. The company should focus on bigger states, e.g. Germany, Great Britain, France, Austria. The competition in these countries may be higher when we compare it to poorer countries, because people in poorer countries prefer lower price to environmentally friendly products. However, the market of poorer countries is not that overcrowded as the market of well-developed countries, also the advertisement would be cheaper. But to build a strong and respected brand name in Europe, it is essential to start making business in well-developed countries.
Price:
The price of BIO Products Australia is very important. Firstly, it would be beneficial to lower price of products while introducing them newly to the market. Later, when customers will show satisfaction, price of products increases. However, the price will be higher than by common paintings, but there is needed to realize that quality has its own price.
Promotion:
For promoting products should the BIO Products Australia company hire European’s marketing consultants and advertisement specialists. Each market of each country is specific, that is why it is required. Advertisement specialists are needed to introduce new products to people by adverts. It is very important for the new brand, which wants to command a new market, to make people first remember the new brand and second, to make people to get used to a new brand.
Step four: Alternative solutions
There appear to be three possible alternative solutions and suggestions:
1.To stay just in Australia and not to move away from secure and successful place.
+ no special costs
+ the company can expand more at the known territory
+ the company can concentrate more on the Australia’s customers (better customer care, better quality of products
-loosing potential profit from other branches in Europe
-company name not worldwide known
2.To enter the market of poorer countries
+ higher chance to buy the product when speaking about competition
+ not such overcrowded market of similar products
+ cheaper advertisement
+ lower expenses for salaries to employees
- many people could not afford it
- high price of the product when comparing with similar products
- bad feedback from the abroad (well-developed countries would think that the company is not strong enough or has financial problems)
3. To enter the market of well-developed countries
+ higher range of choice for the customer
+ higher competition – effort to create new and quality products
+ more people could afford to buy even more expensive products
+ people are more aware of their health and environment
-higher competition (amount of similar products)
- ignorance from the side of customers (not interested in the new product)
- higher competition (the customer will lose the overview)
- higher expenses for the salaries of employees
The BIO Products Australia company should precisely evaluate which of these alternative solutions will fit the best.
Step five: Recommended solution
After evaluating of all pro’s and con’s, the best solution seems to be the third one. To enter the market of well-developed countries can be prosperous, because there is higher percentage that people could afford to buy the BIO Product and that means, to have success. In these countries are people giving more emphasis on their health and do not think about money. Also in case of success, the profit will be higher than in less developed countries.
Marketing department:
- it is essential to make a market survey in chosen countries
- it is essential to develop marketing plan in 5 months
- hire consultants from home consulting companies
- make preparations for the entering to the new market
- entrust somebody from the company in Australia to take control over the preparations
Product: » specify all kinds of products that will be sold
» translation of all service instructions of all products
Promotion: » send advertising agencies prospects for which they should make adverts
» work out adverts for TV, radio, newspapers …
Price: » set up the final price of the product (converted to euros)
» when entering the market - possible reductions
Place: » set the place of selling (small town, big city, village)
Step six: Justification and evaluation
Why should BIO Products Australia company succeed?
BIO Products Australia considered very precisely all factors of the process of implementing their products to new markets. First, they can introduce themselves to be an international company with many years of experience on Australia’s market with many references from satisfied customers. Second, BIO Products can begin a big campaign to its potential customers with some reduction at the beginning. Third, people understand, that quality sells.
BIO Products Australia, (2006). Bio products. Retrieved on January 20, 2007 from - www.bioproducts.com.au/home.htm
