IMS

International Marketing Strategy

International Marketing Strategy

Task 1

Introduction

The Bean-to-Cup coffee machine manufacturing company is located in Australia, in the State of Sydney. The company has strategic location as it has cocoa beans farm located near it. The company has always been dedicated to the supply and manufacturing of coffee machine to local population. From the beginning the town was revealed as a major producer of high quality coffees, but after some time the city also came to the fore as coffee marketing centre, polo processing equipment producer of coffee and coffee research centre (Kleindl, 2007). The company aims to export their coffee machine to international market and they have decided to cater the Asian market as there are lots of opportunities in terms of gaining the market share (Doole & Lowe, 2012).

The specific country to focus on in Asian market is India, which is one of the growing economies in the world with lots of opportunities. Having this concept in mind the company vision is to be one of the largest manufacturers of machinery for coffee, and to be the only company in the world offering a full line of equipment for use from harvest to roasting or export of the product (Sutton-Brady, et.al, 2010). Further the company aims to installed new factories in different countries to capture the markets in new regions by having strategic expansion plans.

Environmental and Market Analysis of Indian Coffee Market

The Indian economy is considered as one of the largest economy of the world. They are emerging as fastest growing economy. In current situation the Indian markets have two very different faces: a large growing dynamism and prosperity, especially since 2003, and another in which there a substantial weakness, great imperatives of development and, above all, poverty is still at extreme (Nash, 2000). It is understandable that the government wants New Delhi to highlight the first and tiptoe through the second, but to have a proper view of country; it must examine together the two realities. In this case the Bean-to-Cup coffee machine manufacturing firm is planning to start their operations as they consider this market as opportunity for them because India has largest market in Asia. In long term this will also help company to expand their operations in other parts of the world and particularly in Asia (Alon, 2003).

Today, India is the world's sixth largest producer of coffee after Brazil, Vietnam, Colombia, Indonesia and Ethiopia. Her coffee harvest in 2010 was about 5 million bags. Coffee in the domestic market in India is growing over the last 10 years, consumption of coffee in the country nearly doubled. However, India exports about 70% of the crop of green beans, about 25% of this amount - 75% Arabica and Robusta. Originally grown in India exclusively Arabica, but rust, hit many coffee trees, forced some households to switch to hybrid or Robusta and Arabica Liberia. Today, under the Arabica and Robusta allocated about the same amount of land, the total area of the coffee area is ...