III.

MARKET AUDIT ANDCOMPETITIVE MARKET ANALYSIS

I. Introduction
A full review a companys marketing and communication really helps to understand where the
business is from a marketing perspective. Through reviewing issues such as: customers and
target audience; competitors; the market place in general and internal situation; the company
will be more informed about the success (or otherwise) of previous marketing activities. This
information is invaluable in helping the firm to develop a successful marketing strategy and
highlights what it will need to deliver the marketing strategy to ensure firm meet its business
objectives.
A marketing audit analyses the business objectives and understands what it is the business is
trying to achieve and allows management to make informed decisions on their future marketing
direction. A marketing audit is often used by a company reviewing its business strategy. A
marketing audit can inform management with an invaluable customer and market insight, vital
to help them set realistic business objectives.
A. The Product
1. Relative Advantages
Frozen foods (Ready Meals, Meat, Seafood, Fruits & Vegetables, Potatoes, Soup) are
nutritionally more reliable than fresh as freezing prevents sensitive vitamins and nutrients from
being lost during transportation. Freezing allows to choose from a vast selection of seasonal
ingredients all year round. Frozen food contains no preservatives. It is a natural form of
preservation. Frozen products are often cheaper than similar chilled or fresh foods and just as
good as they are preserved quickly. Frozen food also helps reduce food waste as one uses only
what one needs which means its good for their pocket and the environment. So considering
Australian crosscultural and all the economic indicators frozen foods show prospective
opportunity to export which has comparably more advantage over consumption of fresh foods.
As market consumption volume has increased with a CAGR of 1.9% between 2010 and 2014
to reach a total of 397.6 million kilograms in 2014, the demand as well has risen up. The
Department of Agriculture admits that the agricultural sector can only grow if it can produce
more food with the same, or fewer, natural resources. Land availability, once the historical
advantage for Australian agriculture, is now a significant constraint. Australias total area sown
to crops has remained stagnant at 25 million hectares per year over the last two decades.
Consequently, future land development schemes must focus on food security and attract more
backing from state and federal governments. Its probable that our product to the Australian
market will be adopted by the consumers.
2. Compatibility

Datamonitor found the trends in Australia, that frozen meats leading the frozen food market.
Between 2004 & 2009 frozen foods grew at a compound annual growth rate of 2.6% year-on-
year and savoury food, which includes frozen bread, frozen stuffing, cooked poultry, meat
products and processed poultry. The sustained growth in the frozen food market could be
attributed to the growing consumer understanding that frozen can often equal fresh.
Australian Food News reported in 2010, Australias leading consumer advocacy group,
CHOICE, undertook research that found frozen fresh food delivered comparatively better
nutritional value than fresh food which had been vacuum packed with carbon dioxide and
nitrogen, and refrigerated for long periods of time. Australia is a first world country and the
literacy rate is higher which gives premise of their nutrition consumption concern. Since
frozen food has more nutritional value than the fresh food, so it indicates a profitable and
emerging market for exporting.

3. Complexity
The extent to which the consumer considers the products to be difficult in utilizing is known
as the innovations complexity. If the innovation has a high level of complexity, it will have a
lower level of adoption. As the Australian food consumption encircles consumption of frozen
food already, our exported goods need less effort to adapt with the existing culture. In recent
years the food consumption pattern suggests that the inhabitant and the aborigines both have
increased the consumption of frozen food. Because of low complexity of our exported goods
the consumer acceptance is likely to happen. The following table represents on what factors
consumer gives a company frozen food an upper thumb.

4. Trialability
Our product have been tried out for limited time period before an actual outlaying of money,
this strategy was adopted to increase adoption rates substantially. Trialability reduces the
consumers perceived risk of making a purchase of the product. By letting the customer try
our product before the purchase, we are showing our customer that we are confident enough
in our product to allow them to try it before they make a purchase. Of course, the trial
offering is tailored to appropriately fit with our product offering. By offering the trialability
period the consumer intentions, likings, spending willingness and their taste differences can
be judged.
5. Observability
The extent to which a potential consumer can observe the innovation and its positive effects
is known as observability. The more the positive effects are sensed, the more observable the
effects are to the consumer. Our exported products has been packaged considering the food
habit among different ages, income groups and several criteria. At the same time the food
quality and standard has been ensured. Again through media the positive feature of our goods
will be communicated toward the consumer. There are proven advantages to the consumer of
buying frozen over fresh food, not least the issue of price which in consumer studies has been
shown to be up to 66% lower at a retail level on a like for like product. This statistics buttress
the emergence of getting concerned over the observability factors. Lack of proper
communication with the consumers and the distributors might end up in delivering our
product message which would occur less acceptability or delay the acceptability period.
B. Major problems and resistances to product acceptance

The Australian frozen food market had total revenues of $2,868.2m in 2014, representing a
compound annual growth rate (CAGR) of 2.8% between 2010 and 2014. Based on above
analysis setting standard and maintaining it is a major concern, because without quality
product rooting up in market is isnt feasible. Price can create some impediment on prevailing
the market. Performing all the regulatory and other activities and complying with the govt.
rules and regulation setting a customer friendly price might be a challenge. Failing to do it
might produce the never expected result of rejection. Poor packaging might result in rejection
from the consumers side. To what extent trialability should be exercised must be estimated
because excessive trial period will incur less profit and absence of sufficient will bring
customer dissatisfaction and in turns less probability of acceptance.

III. The market

A. The market in which the product is to be sold

1. Geographical regions
Melbourne, Brisbane, Sydney, & Newcastle our main target market. The City of Melbourne
is a dynamic business hub, with many innovative businesses that increase Melbournes
business diversity and boost the citys capability in many industry sectors. Melbourne is
known for its highly skilled workforce, a multicultural, affluent and fast growing population,
close proximity and links to the Asia region, world-recognised liveability, and world-class
infrastructure. Melbourne is uniquely placed to service Asia Pacific, the world's fastest
growing economic region. For more than half a century Melbourne has been an important
part of Australia's relationship with Asia Pacific markets. Victoria is conveniently placed
across major time zones and offer a practical location for global organisations looking for
success in the region.
2. Forms of transportation and communication available in those regions

Roads
Road transport is an essential element of the the transport network, and an enabler of the
Australian economy. There is a heavy reliance on road transport due to large area and low
population density.
Ports
All these rgions have sea ports which is used in the transportation system.

Airports
Air freight makes up a small but important part of this regions overall freight task and is
predominantly used to transport high-value and time-critical good such as parcels and
seafood. Airports have become a part of multi-modal transport hubs. As road and rail links to
airports improve, airports with large areas of available adjacent land are able to capitalise and
develop as national or regional freight nodes. This has been supported by the growth in air
freight, where manufacturers of high value, low-density products trade-off the savings in
inventory costs for costs of using air travel more frequently. The use of air freight as a means
of transport is therefore on the increase.

Communication systems
The Australian communication infrastructure consists of postal services, telephone, the
telephone network, faxes, mobile phones, mass media, television, radio, newspapers and
magazines, computers, and internet.

3. Consumer buying habits

Product-use patterns
Melbourne's strong history of migration has produced a culturally and linguistically diverse
population. Many Victorians speak a language other than English, especially Asian
languages. There are over 480,000 Asian language speakers, over 550,000 European
language speakers (other than English), and over 230 languages and dialects spoken in
Melbourne.
Weekly spend by life stage
Lone person Couple only Couple Couple with Couple with
aged under (reference with kids kids kids
35 person aged (eldest (eldest child (eldest child
under 35) child under between 5-14) between 14-
5) 24)

Housing $278 $360 $364 $325 $242

Fuel & power $20 $26 $28 $43 $48

Food & drink $104 $207 $224 $279 $314

Clothing & $23 $52 $54 $64 $82

footware

Medical & $24 $58 $67 $77 $104

health expenses

Alcohol $24 $41 $26 $31 $35

Transport $142 $224 $220 $254 $332

Recreation $106 $182 $132 $208 $253

TOTAL $869 $1,429 $1,484 $1,670 $1,900

From above table we can see that consumer spends comparatively more money in this regions
on foods and drinks. Online shopping is getting much popular in this regions. The residents
of this regions feel comfortable to buy from supershop. Shoppers in this area buy or collect
goods bearing in mind the convenience.
b. Product feature preferences

Product feature preferences may vary from market to market. Since this is a small packet it
would be preferred by everyone; since it won't be a price matter a lot. In 2007 onwards it was
a major trend in Australia to focus on the health conscious products. So when they purchase a
product they mainly concern about the quality and the healthier products. So it is another
identified opportunity for our product. As mentioned earlier the benefits of frozen food
products over fresh food considering nutrition value. And also Australian people have a great
desire for new flavours. Again it could be an opportunity. Since our products have variety
thinking different customer groups. Not only that Australian consumer becoming more
knowledgeable. When they are purchasing a product they mainly price conscious and brand
and quality sensitive. Because of this we would be able to market our quality product at a
competitive price. They are not easily influenced by the advertisements. And also they
consider about the service they receive before the purchasing as well as after sales.

According to the findings it does not consists any social or investment risk since this is a
nutritional food. As ACNielsen said, 90% of consumers take purchase decisions by
considering strong brands name and also 75% retain with the same brands because of the
customers loyalty.

c. Shopping habits

An understanding of the shopping habits of Australian is important to determine the market

viability for our products. The economic growth of the country has vastly increased the
purchased power of the Australian customers. The standard of living and per capita income of
Australians are high our targeted customer will mainly do their shopping in retail stores,
super markets and shopping malls though still village side people purchase from traditional
groceries and mini-marts .because of the globalization Australians are becoming more
complicated. This could be occurring because of the education levels and changing lifestyles
of the Australian consumers. Because of this multi ethnicity Australians have demanded
towards the foreign products as well. Australian males as well as females both of them are do
the buying.

Since consumers are always waiting at the queue near the cashier to pay bills it is common
manner to tackle the customers by keeping those products not so far from the cashier.

4. Distribution of the product

We intended to undertake a distribution in a limited area since our products are in the initial
stages of the product life cycle. Our market research activities have revealed that most
Australians prefer to buy their requirements in super markets. Because they want to save time
which will spend here and there by having wide range of goods is available under one roof. We
decided to distribute our product to retail outlets through middlemen in Australia. Because they
know about country, customs, values, and other regulatory which is needed when doing a
business. And also they would be able to make close relationships with the country people as
well.

a. Typical retail outlets

Therefore our main distribution channel will be through the major super markets,speciality
stores and drug stores in the cities of Malaysia; specially in Melbourne, Brisbane, Sydney, &
Newcastle & other main cities because Australian people are used to purchase this kind of
products from these places. Sales of these products at super markets will help us to maintain
competitive stance and also it will help us to stop share losses as well. In super markets for
sales people there are sales target; when they achieve those sales targets they will receive
some fringe benefits. So that would be an opportunity for our product when we do our sales
through super markets. Because those sales targets will drive our product sales as well. We
have chosen super stores to sell this products because they can recommend our product to the
consumers as a healthy, fresh, and tasty product and again it will help to increase the sales.

Number of
Rank Centre Location
stores

1 Chadstone Shopping Centre Malvern East, Victoria 530

2 Westfield Bondi Junction Bondi Junction, New South Wales 522

3 Highpoint Shopping Centre Maribyrnong, Victoria 500

4 Westfield Parramatta Parramatta, New South Wales 490

5 Westfield Fountain Gate Narre Warren, Victoria 440

6 Westfield Doncaster Doncaster, Victoria 437

7 Westfield Garden City Mount Gravatt, Queensland 430

8 Westfield Carindale Carindale, Queensland 419

9 Westfield Southland Cheltenham, Victoria 416

10 Westfield Chermside Chermside, Queensland 409

11 Westfield Miranda Miranda, New South Wales 395

Melbourne Central Shopping

12 Melbourne, Victoria 390
Centre
 Number of
Rank Centre Location
stores

13 Westfield Sydney Sydney, New South Wales 361

14 Indooroopilly Shopping Centre Indooroopilly, Queensland 360

15 Robina Town Centre Robina, Queensland 352

16 Westfield Knox Wantirna South, Victoria 350

17 Westfield Penrith Penrith, New South Wales 346

18 Westfield Liverpool Liverpool, New South Wales 337

19 Westfield Hornsby Hornsby, New South Wales 333

20 Westfield Marion Marion, South Australia 331

21 Erina Fair Erina, New South Wales 330

22 Westfield Warringah Mall Brookvale, New South Wales 329

23 Centro Bankstown Bankstown, New South Wales 320

24 Pacific Fair Broadbeach, Queensland 314

25 Castle Towers Castle Hill, New South Wales 310

26 Westfield Whitford City Hillarys, Western Australia 305

Lakeside Joondalup Shopping

27 Joondalup, Western Australia 301+
City

28 Macarthur Square Campbelltown, New South Wales 300+

29 Canberra Centre City, Australian Capital Territory 300

30 Westfield Eastgardens Pagewood, New South Wales 294

31 Westfield Carousel Cannington, Western Australia 293

32 Westpoint Blacktown Blacktown, New South Wales 290

Belconnen, Australian Capital

33 Westfield Belconnen 290
Territory

34 Top Ryde City Ryde, New South Wales 280

35 Westfield Chatswood Chatswood, New South Wales 279

36 Garden City, Booragoon Booragoon, Western Australia 279

 Number of
Rank Centre Location
stores

37 Macquarie Centre North Ryde, New South Wales 274

38 Westfield Tuggerah Tuggerah, New South Wales 273

39 Charlestown Square Charlestown, New South Wales 270

40 Westfield Hurstville Hurstville, New South Wales 261

41 Bayside Shopping Centre Frankston, Victoria 260

42 Westfield Tea Tree Plaza Modbury, South Australia 259

43 Westfield Kotara Kotara, New South Wales 256

Phillip, Australian Capital

44 Westfield Woden 253
Territory

45 Sunshine Plaza Maroochydore, Queensland 250+

b. Product sales by other middlemen

We can utilise a distribution channel as a middleman before we settle down in the Australian
food market. Middleman is a very strongest character when it comes to here, because they can
make very strong relationships with their retailers as well as they know everything about the
country as well as the business arena and also social and business etiquettes as well. And also
our company would able to keep knowing everything about the market, competitor brands,
specialities of them and also such kind of things through the middleman. Most Australian firms
rely on agents or distributors to represent their business in international markets. The actual
role of partner undertakes will also depend on the individual agreement we have with them.
Agents and distributor are another option in this region besides retail outlet. Advantages in
doing business through an agent in here includes- we have control over branding, marketing
and pricing. Commission only-based agent agreements can be a good incentive for higher sales
volumes for your products. Agents tend to have smaller product ranges than distributors, which
means that they can provide more focus on your products. Doing business with the distributor
in this regions includes- The exporter has one large customer who supplies many smaller end
customers in the market. The exporter maintains some control over distribution. The distributor
provides back-up service to clients. The distributor holds stock in the market to reduce order
lead time for customers. The distributor helps pay for and undertake marketing and promotion
of your product in the market. The distributor develops a customer base for your product. The
distributor handles more of the in-market work, saving you both time and costs. In-market
risks are largely carried by the distributor. The distributor may provide warranty and product
services.

5. Advertising and promotion

Our target market consists of mainly high & middle income earners, children and adults.
a. Advertising media usually used to reach our target markets

we have selected TV's and newspapers as best form of advertising RIM and TV1 which
telecast their programs in Malay language and TV2 which telecast in Malay, Chinese,
English and Tamil.TV advertising is more convenience since our packaged products can be
displayed and the product awareness will be increased and could be reached on large number
of potential customers at low cost.

Newspaper advertisements will also be undertaken in several consumers languages. Our

sales promotion activities will include .exhibitions shopping centre of food festival. We
suppose to advertise our product through accurate and honest promotions; as an energy
boosting and rich in nutritional value foods for targeting health conscious segments who
wants to consume fresh food, and also wish to stress on the taste appeal which would match
with different age groups. And also we wish to motivate the people who are interesting with
healthy eating. And also we decided to set some bill boards in those regions for the
accessibility to the new and existing customer.

b. Sales promotions customarily used (sampling, coupons, etc.)

There is considerable competition for our products in Australia. Therefore we have to use both
the pull and push promotional strategies to stabilize the market. Pull strategy is implemented
to attract customers towards purchasing our products through advertising companies. Push
strategy is carried out to encourage the retailers to buy and distribute our products to the
ultimate customers. This is done through offering trade discounts to the retails. Internet
marketing would be another major opportunity since their technology is high and people are
educated.

6. Pricing strategy

The prices of our products should be reasonable and affordable for the Australian consumers
to buy. The present consumers are highly price concerned. They expect value from the product
for the price they pay. The prime motive of our pricing strategies is to achieve the following-
to attract the target market at the correct time. This will increase the stock turnover rate and the
profitability in our Australian market expansion.

To have justifiable return on capital employed to continue our business activities in Australia.
Our products are new to the Australian food market. Therefore we will implement a penetrating
pricing strategy at the initial stages. Once the market is stabilized we will introduce premium
pricing. This is important to position our products amongst the Australian customers as quality
products.

a. Customary mark-ups

We should consider the import control regulations in Australia before a final "mark-up" for
our products. The Australian international market is liberalized tax system on food products.
We will take these into consideration before fixing a final mark-up for our products in
Australia.

b. Types of discounts available

Australian retails sell food items from many producers. So we will offer bulk purchasing
discounts to retailers who buy our products in large quantities to attract them. At a rate of 2%.
In addition we will offer at 2% cash discounts for the retailers who settle their dues to us
within 14 days.

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Australian Bureau of Statistics (ABS)