Case Study Aussie Hay and Feed sells animal feed products. Lucerne (sometimes known as alfalfa) is grown around the world and is used for feeding animals. Aussie Hay & Feed has developed a new method of compressing and vacuum packing lucerne hay, which keeps it fresh for more than three years. The invention has several benefits for the long-term storage and use of lucerne hay over traditional methods of baling and storage. The benefits include: reduced transport costs by 75% reduced storage costs by 75% dramatically extends storage time in hot, dry weather and hot, humid weather retains its visual appeal by remaining green inside the block and on the exterior if a black plastic bag is used for vacuum packing reduces risk to horse owners and breeders of the vagaries of fresh chaff supply dramatically reduces the risk to horses of mould in humid weather reduces risk to farmers supplying lucerne to Aussie’s business of the vagaries of supply and demand lucerne hay itself is a high protein natural feed that is highly suitable for horses that are ‘working’ to keep them in condition with good muscle mass.
Assessment cover sheet ILSC Business School BSBMKG516 Assessment V5 1117 1 BSBMKG516 – Profile international markets ASSESSMENT COVER SHEET STUDENT ID STUDENT NAME First Name: Last Name: Student’s Declaration: Students please note: By submitting this assessment, you are acknowledging and agreeing to the following conditions. Please complete all assessment tasks, save, and upload in Moodle for grading. Please view the videos on submitting work through Moodle in the FAQ section of your VET Orientation course. Check Moodle grades and feedback on your submission. You will receive an email notification when your assessment has been graded. Please check the boxes below acknowledging and agreeing to the following conditions. I have read and understood the details of the assessment. I have been informed of the conditions of the assessment and the appeals process and understand I may appeal if I believe the assessment is not equitable, fair or just. I agree to participate in this assessment, and I am ready to be assessed. I certify that the attached is my own work (or in collaboration with other members of the group as required). I have acknowledged all sources where appropriate in accordance with ILSC’s Academic Integrity Policy, and I believe other group members have done the same. Assessor’s Acknowledgement: Please verify each of the following principles of assessment by placing a tick in each box. Refer to the assessor's handbook for further information if required. Authentic: The assessor is assured that the evidence presented for assessment is the learner’s own work. Valid: The assessor is assured that the learner has the skills, knowledge and attributes as described in the module or unit of competency and associated assessment requirements. Current: The assessor is assured that the assessment evidence demonstrates current competency. This requires the assessment evidence to be from the present or the very recent past. Sufficient: The assessor is assured that the quality, quantity and relevance of the assessment evidence enable a judgement to be made of a learner’s competency. ILSC Business School BSBMKG516 Assessment V5 1117 2 Task 1 Marketing case study Assessment description and requirements This assessment provides a short case study of segmentation (found in the appendix) and questions which relate to them. Read the case study first, then answer the questions in the spaces found below. Specifications You must provide: Completed assessment. Your assessor will be looking for: Responses which demonstrate an understanding of the principles and methods of profiling international markets. Case Study Aussie Hay and Feed sells animal feed products. Lucerne (sometimes known as alfalfa) is grown around the world and is used for feeding animals. Aussie Hay & Feed has developed a new method of compressing and vacuum packing lucerne hay, which keeps it fresh for more than three years. The invention has several benefits for the long term storage and use of lucerne hay over traditional methods of baling and storage. The benefits include: reduced transport costs by 75% reduced storage costs by 75% dramatically extends storage time in hot, dry weather and hot, humid weather retains its visual appeal by remaining green inside the block and on the exterior if a black plastic bag is used for vacuum packing reduces risk to horse owners and breeders of the vagaries of fresh chaff supply dramatically reduces the risk to horses of mould in humid weather reduces risk to farmers supplying lucerne to Aussie’s business of the vagaries of supply and demand lucerne hay itself is a high protein natural feed that is highly suitable for horses that are ‘working’ to keep them in condition with good muscle mass. The competition for the new product are: traditionally baled lucerne hay, which takes eight times the space and becomes dry and dusty over a period of a year compressed lucerne hay with additives that subject the product to mildew attack pelleted compressed lucerne hay, which becomes dry and dusty if not used quickly ILSC Business School BSBMKG516 Assessment V5 1117 3 grain feed which is much more expensive but higher in protein content. Ausssie conducted research into export markets by: investigating Austrade data on exports of hay, lucerne and other feeds investigating Austrade data on export of live animals investigating supply requirements in Japan through an importer of hay and hay products investigating the horse racing industry in the Middle East, Japan, Singapore and Hong Kong. Aussie identified the following facts and figures. The global export market for hay products in 1997 was reported as being valued at $1.05B, with the vast majority being exported to Japan and the major suppling country being the US. Typical importers 1997 values A$'million Typical exporters 1997 values A$'million Japan 900 Australia 50 Middle East 40 USA 760 Taiwan 15 Canada 155 Korea 30 Taiwan Note: Taiwan exports rice straw and imports high quality fodder for its dairy industry. Hong Kong 10 Macau 2 Singapore 2 South East Asia 6 Live cattle exports were valued at $600M, consisting of approximately 600,000 cattle requiring 1.3 million tonnes of fodder. Exports to Japan needed to be proven to be biosecure by testing through the Australian Quarantine and Inspection Service. Aussie also identified that to be successful in the Japanese market, packaging and labelling needed to be of a higher standard than he used in sales to Australian horse owners. The packaging he currently uses is black polypropylene, to cut out light to maintain a fresh green look to the lucerne when it is opened. The labels are computer generated with a simple layout and with the minimum information required by regulation printed on a white label. Aussie identified the following export segments. Dairy industry in South East Asia and Japan. Horse racing industry in Japan, Singapore, Hong Kong and Middle East. Leisure horse industry. Live cattle exports to the Middle East, Malaysia and Indonesia. Aussie identified his market as horse owners and wholesale suppliers of horse products in Japan and the Middle East. Aussie determined the total market to be worth at least $200M being 20% of export chaff for horses. Aussie preferred Japan because of its size of market and its proximity to an Australian time zone. ILSC Business School BSBMKG516 Assessment V5 1117 4 Aussie identified his target segments as: owners and trainers of race horses in Japan dairy industry in Japan. Aussie identified the following marketing options. Creation of a website to hold: o case studies o testimonials from well-known people in the horse industry. o technical data and reports about the product o photographic evidence of the storage saving attributes and long lasting qualities. editorials and advertisements in horse and dairy magazines in Japan direct sales to partner resellers, using samples to familiarise the resellers and customers with the product agricultural trade shows in Japan using a partner distributor. Aussie has met his potential distributor once in Australia but has been reluctant to travel to Japan. He has explained to the distributor that he cannot afford the time away from the farm each time he received an invitation. Whilst this was partly true it is also because of the cost to his start-up business. Aussie positioned his product as ‘Long-life chaff’ with a premium pricing of 30% above competitive products. Aussie had production capacity to sell 300 tonnes of product before needing to expand his production. ILSC Business School BSBMKG516 Assessment V5 1117 5 Answer the questions below about the Case Study. Click in the space provided and type your answer. 1. What international markets were considered by Aussie? 2. What criteria did Aussie use to determine the suitability of Japan as an international market for AussieVac products? 3. What criteria did he not use? 4. What may have been the impact on the success of Aussie’s marketing plan of his choice of criteria? 5. Was Aussie ready to market his products in Japan? 6. In what way did he demonstrate readiness? 7. Can you suggest other information or activities could have undertaken to be ready? 8. What was Aussie’s positioning strategy? 9. What additional data would have been helpful to prioritise Aussie’s marketing options for the Japanese market? 10. What issues was Aussie likely to encounter culturally with his current plan? 11. What targeting strategy did Aussie use? 12. If you were CEO of Aussie what actions would you take next? ILSC Business School BSBMKG516 Assessment V5 1117 7 Task 2 Consumer/ Customer Profile Assessment Description and Requirements Using the case Study information and your responses to questions 1 – 11 you are required to prepare a Consumer/ Customer profile in a short report format as follows: - Procedure Follow these 5 simple steps to learn more about your existing customers, in order to find more customers like them. 1. Describe Your Customers Understand who your ideal customer is and what similarities they have. Define your customers with the following criteria: Demographics – their age, gender, income, etc. Psychographics – their personality type, preferences, etc. Behaviour – their similar likes and dislikes, sports, hobbies, etc. You should also note characteristics of your ideal businesses to work with, including: # of employees Revenue Geographic scope Type of business Decision-making Budget 2. Locate Your Customers Find the places your customers are attracted to, whether a physical location or a cyber space where they gather. Where do they hang out? What do they read? Both online and offline? What do they search for online? ILSC Business School BSBMKG516 Assessment V5 1117 8 3. Understand Their Purchasing Process Review the needs and benefits that make your customers purchase your product or service. Where do they begin their research? What is their problem or need? What are the benefits to finding a solution? Do they make purchases by impulse? Do they seek out referrals? Will they need approval by a committee before making a purchase? 4. Connect with Current Customers Consider your current customers to gain additional insight into what made them select your business over others. Conduct interviews, formally or informally, and ask them: How did you originally find our company before contacting us? Why did you originally buy from our company? Why do you continue to buy from