BUSINESS DEVELOPMENT

Business Development

Business Development

Executive Summary

The purpose of this report is to critically analyse an export strategy for an Australian company to Malaysia. King International, an Australian soy product producer, was chosen for this task, because of Malaysia's increasing demand for westernized but healthy products. The report starts with a short company overview and describes the products which will be exported to Malaysia. An extensive country profile of Malaysia introduces the external environment and gives an overview of the foreign market.

After the competitors have been identified and the environmental analysis is completed the report shows the marketing strategy and the entry mode which King International could use if entering Malaysia. A possible marketing mix completes this research.

Introduction

The purpose of this report is to outline the strategies necessary for King International to successfully export Kingland Soy Cheese to the Malaysian market. To achieve this a thorough analysis of the Malaysian business environment was conducted, identifying the key variables that need to taken into account when modifying the product to suit the Malaysian market. This involved researching the external environmental factors, as well as the Malaysian culture and the specific needs and wants of the target consumers. This provided the foundation for the strategic marketing plan and objectives. This involved creating a marketing mix and market entry strategies that most effectively suited the Malaysian market, while at the same time ensuring the success and profitability of King International.

Overview of Firm and Product

King International Pty Ltd is an Australian Soy Food manufacturer producing the labels Kingland, Pureland, Soystar and 'Zesto' as shown in Image 1. Established in 1987, King International Pty Ltd today employs between 40 and 50 full- and part time staff and is based in Brisbane, Queensland. Most products are certified Halal and Kosher and all of them contain Australian grown organic, non-GM soybeans as the main ingredient. Of King International's vast range of products. Organic Soy Cream Cheese and Soy Cheese were selected for this assignment.

Country Study- Malaysia

Malaysia's environment

No matter where a company operates, external forces have an indirect impact on the organization (Shilbury, Shayne & Westerbeek, 2003, p. 22). The key influencing factors, have therefore to be analyzed before entering a new market. This country study intends to give an overview of Malaysia.

Land area: 330,434 sq. Km

Population: 24 million (2004 estimate)

Capital: Kuala Lumpur

Currency used: Ringgit (RM)

Source: Institute of Southeast Asian Studies, 2005, p. 31

Geography

Malaysia is located just north of the equator (Image 3), with a hot climate (up to 34°C) and humid conditions between 2 to 4 metres of rain annually (Austrade, 2006). The country is easily accessed by air and sea offering many avenues for distribution of the product throughout the country.

Demographics

Malaysia has a population of 23.37 million according to the 2000 census, with a growth rate of 1.8 percent. The major ethnic group of Malaysia are the Malays and indigenous people (65.1 percent), this group is predominantly of Muslim religion. The other ethnic groups include the Chinese (26 percent) and Indians ...