Developing India Market

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In the result of WTO and Free Trade Agreement, there has been a rapid increase in the number of international marketing in Australia. At the same time, economic globalisation can bring opportunities as well as challenges, such as information sharing, technological innovation and efficient transportation. The challenges are the ability for acceptance of different cultures and globalisation communication, also the risks of businesses (Cateora, et al., 2012). It will be specifically discussed the successful case of Fletcher International Exports Pty in this essay which about internal factors, external factors and the reasons of India as an attractive market.

It presented in MEAT & LIVESTOCK AUSTRALIA (MLB), in 2014, Australian lamb exports hit new highs, exceeding the previous year 11% (23,193 tonnes swt). The majority of export markets for Australian lamb are Middle East (64,249 tonnes swt), US (46,224 tonnes swt), China (38,842 tonnes swt) and another international market, for example EU, South East Asia and Canada. Due to non-tariff trade barriers, Australian lamb is being unable to access the India lamb market until 2013, there was a new trade deal between Australia and India, which is reported by Australian media “Australia given a green light to export lamb to India” (FoodNavigator-Asia, 2013). It states in Fletcher’s case the largest sheepmeat processor Fletcher International Exports Pty was the first Australian company to enter the India market and growing rapidly.

In the term of internal push factors, Fletcher International Exports Pty attempts to several areas. Cateora, et al. (2012) presents that the learn of geography is important in the international markets and environment. Mountains, oceans, seas and other geographical features can be considered as a condition of successful (Cateora, et al., 2012). In this case of Fletcher International Exports Pty, there are two abattoirs in Australia, one is in Dubbo, another one is near Albany in WA. According to WIKIPEDIA, WA is bounded by the India Ocean to the west and north and India is bounding by the India Ocean on the south. Therefore, in internal push factor, the advantage of geography is important to specific lamb meat markets, because the shortening transportation period can ensure meat’s freshness, and Fletcher International Exports Pty provides two abattoirs to ensure the efficient supply chain, for example, wool, the lower freshness demand product only process at Dubbo. Moreover, as the stage model of internationalisation, there are four different steps of entering an international marketing by Uppsala model (Cateora, et al, 2012). First, no regular export activities, in this case, Fletcher International Exports Pty has no regular export activities in India before 2012. Second, export through independent representatives, Fletcher International Exports Pty did not chose the agent. However, government assistance is also an important internal push factor (Flethcher & Crawford, 2014), for example, Aureate as a participator provides advice and introduces consumers. In addition, the establishment of an overseas sales subsidiary, Fletcher products is presenting in each India city via various retailers to improve brand awareness.  Fourth, overseas production units, in this part, Fletcher International Exports Pty does not mention, because of the limitation of agriculture, such as climate, altitude and temperature.

In the part of external pull factors, there are two majority reasons for success. Understanding and strengthening consumer demand is important, first, India market has a great growing middle-class, Peter and Guarín (2014) find that the middle-class was close to a quarter of the population (264 million) in 2010. Regarding purchasing, approximately 55% of GDP from the growth of the middle-class and will continue to drive the growth of consumption in India (Saxena 2010). Saxena’s research also evident that the middle-class has a higher level of discretionary income to apply and it is more various in their purchasing choices, such as food and shelter. Therefore, an increasing number of middle-class has a greater potential buying power. Fletcher International Exports Pty has been to enhance the brand of premium lamb rack, over the period 2005-2011, India middle-class healthcare market has risen at 19.1%, the majority growth is from private expenditure in healthcare (Deloitte, 2013). Thus, the growth of middle-class demand is the successful pull factor for Fletcher International Exports Pty premium lamb in India. Furthermore, Cateora (2012) declares that study of country’s culture is pertinent to the marketing. Concerning international marketing, Indian culture has pulled power to promote the succussed of Fletcher International Exports Pty. Sandy Behl has owned a hotel kitchen in New Delhi, nowadays, lamb as red meat is chosen by more and more Indian people, especially in the north of India, because beef and pork not eaten for religious reasons (news,2013). According to IndiaCurry (2015) reports that 32% of Indian people is lactovegetarian. 30% of Indian people eats meat on a religious basis. For example, the people of lactovegetarian, who are living in the coastal area may eat fish, some of them may eat eggs for healthcare and to social communication, they may eat meats on the social situation, the most common meats are lamb, sheep chicken, fish and Prawn. Hence, Indian religious culture is a powerful factor stimulating Indian lamb market demand. Target market consumers’ consumption demand and behaviour is an important reason for international marketing and internationalises company.

Indian market is a great potential market as target of internationalising. According to a report released by Ernst & Young in 2015, India is considered the most attractive new market by international investors. Compare with other BRIC country, India ranks at the top of investment destination and leads 32% of the investors’ focus which is more than double of China, six-times of Brazil. India is a market of consumers more than deposits, the consumption potential and demand is growth rapidly. First, the advantage of geography, India is close to China, the two major economies counties promote each other. The nature port and convenience ocean shipping will attract the investors, such as New Delhi, Mumbai and Kolkata. The second advantage is consumer purchasing power, India has a large population of over 1.2 billion and an increasing emerging middle-class of nearly 250 million people (AUSTRALIAN BUSINESS,2015), they take advantage in the trading market and tend to a diversities and emerging consumption. Third, the attractive of developing and ongoing policy prospect, for example, the China-Australia Free Trade Agreement entered in 2015, and Joint Study Group points that India should be the next Free Trade Agreement country with Australia. Australian and Indian Governments consider the emerging comprehensive bilateral Free Trade Agreement, such as the international business of goods, services and education. In short, India is an attractive new market because of the developing country’s situation, such as aged care, road safety requirement, environment-friendly consideration, the demand of automotive and the requirement of sustainable development.