Executive summary
From ancient times, use of boats has been regarded as having diverse impacts to the users and also to the nations that use them for commuting services. Also during the recent times boats were being used only for transportation services. For instance, they could be used during wars where they could carry the immunities for fighting and the other necessary equipments that were essential in wars. Presently, advancement in the various aspects, for example social, economical, technological has compelled Nations to change the insinuation and use boats for other functions. Recreational purposes for boats thus beckon (Pederson& Derdak, 2000, p.200). Boats have thus diversified their usage into being used for luxury purposes. This also sprouts another business of developing boating products which are the provisions for spare parts used in repair and renovation of the boats. Australian company has also ventured into the marine propulsion and this has benefited the Nation to an extensive scale. The revolution of the boats has had a great impact in the whole Nation and thus the Australia is at the verge of extending it is market internationally to acquire more benefits. In essence the phenomenon is well articulated in United States of America and in France (Pederson& Derdak, 2000, p.200). Use of boats in the United States, particularly in Miami and also in France has embraced the ideology which has extensively boosted the economical status of these Nations. In the United States, recreational boat and boating products has be well outsourced in Florida, in particular in Miami. The economical status and all the aspect that can term in favor of development of recreational boat, are well set and constant which has accelerated it use. Moreover, the technology has found it course also in France and if Australia is to market it is boating products these are the places to be. However, some factors have inhibited the use of the recreational boat in the two Nations which may discourage the Australian company from investing into these international markets (Johnson, 2005, p.100).
The challenges range from economical, political, social and technological factors and also the micro analysis has had some tangible effects which have adversely affected the technology. Even though the challenges may try to outweigh the benefits there, some marketing trends and segments have effectively endorsed the growth and the development of this trend. For instance, it has been depicted that in the United States of America there is a 7% growth annually and this sprouts some hopes. A relative figure has been recorded in France. Strategies ought to be put in place as a measure of enhancing the recreational boats and boating products in order to realise a positive shift towards a better way in life (Johnson, 2005, p.100).
Table of contents
Executive summary 2
1. Introduction 5
2. Rationale for choosing the country to launch 5
3. Situation Analysis 6
3.1. Macro-environmental PEST) analysis 6
Political-legal factors 7
Economical factors 7
Social-cultural factors 8
Technological factor 9
3.2. Micro-Analysis 10
Consumer 10
Competitor 11
Market size 12
Market Trends 13
Product Trends 14
Target market trends and preferences 15
3.3. The SWOT Analysis 16
Altex Coating Limited Company 16
United States of America 17
3.4. Justification for launching the product 17
4. Market segments to be targeted 18
5. Demand forecast for the new product 20
6. Marketing mix strategy 20
7. Conclusion 21
Reference 22
1. Introduction
Use of recreational boats and their products has been an imperative and significant phenomenon in the developed countries .This has in turn paved way and offered opportunities to Nations which has showed key interest in venturing into such business. In particular the Australian has been caught in this web and aspires to venture and expand it is marketing capabilities in the global market. United States and France being the leading and outstanding Nations in this sector has in away influenced many countries to also endeavor in the new technology. The stimulating factor is this sector is mostly the benefits which have been reputable down the line. Factors that have emerged since the development of the technology have been imminent and thus tried to surpass its growth but this has been in vain. The trend is experiencing positive take with each new day and therefore some insinuations on its continued growth is being recoded as accelerating at an average percentage. Australian company being the leading company in Australia in development of luxurious boats and the boating products is in a better position of expanding it is growth in U.S.A and France. These two Nations have had a reputable record in the development of the luxurious boats and the respective products (Johnson, 2005, p.100).
2. Rationale for choosing the country to launch
The Australian company has to be rational in choosing the best market where they ought to launch it is product. A critical analysis is therefore required before venturing into any market. In comparison between the two competing countries; United States and France, U.S.A seems to do better in it is dealing in the luxurious boats and also in production of it is products which are complementary in nature. Miami, in the United States is the best region that has so far, recorded an accelerating growth rate and a depictable development in handling of the recreational boats. Australia will thus not be compelled to choose Miami as it is Launching region from the market statistics recorded in the region. The growth rate has been justified from the market statics that were record during the last two years (Buckley, 2004, p.110).
In 2005, the value of luxurious boats was anticipated to read at approximately $ 23.8 and this rate was predicted to rise at 7%.The value is presumed to reach $ 37.1 billion which will be the maximum sales in one year to come from now. This will thus offer an opportunity to the Australian company in the Miami region. Also in the region there subsist the Jet customers who are the potential consumers of the luxurious boats. Miami also receives the highest number of tourists annually and this may also contribute for the launching of the product. The justification thus offers an opportunity for the Australian Company to venture into the business thus they should launch their product in the United States of America (Buckley, 2004, p.110).
3. Situation Analysis
Situation analysis in the business environment is determined by comparing companies carrying out business activities that are of similar nature. Internationally, the United States of America in particular Miami has recorded to be the biggest region in the production of luxurious boats but the growth rate from 2000-2005 was too significant. Also research has in it that France depicted and recorded the highest rate in the production of the luxurious boats and the sales accelerated the market share in a very strategic way.
3.1. Macro-environmental PEST) analysis
In a much exponential way, situation analysis is scrutinized through the PEST analysis, which is the Macro-environment analysis. PEST analysis is an abbreviation for the political-legal, economical, social-cultural and the technological factors.
Political-legal factors
It is very difficult for anyone to predict the unfolding events particularly in the legal factors which may be presumed to ether have a positive impact or a negative n the business field. The past analysis of the law on a certain are the ones that may in away paint a direction of what the business anticipates to achieve in the near future. Recreational boating and the boating products like any known luxurious activity or business is prone or susceptible to effects or influence by the underlying laws and regularities. While political influence has extensively detracted most companies from investing or venturing into the United States of America, the laws relating to the marine investment have open ways for any potential investor to venture but on conditions. The company should portray loyalty to the country and the rulers governing the business. Historically, United States is so far the best Nation in maintaining peace globally and this ascertains any business or the marketing in this site is picks up well. In essence, political aspects are well compatible with marketing plans that are performed in good faith (Orthmann, et al.2006, p.200).
Economical factors
Economical assistance in the United States of America, in terms financial backup has comprehensively boosted the recreational boats and the boating products. This is the reason why a mass benefit is being realized in all the aspects. The benefits have ranged from market segmentation .marketing trends and all the factors that have endorsed the progress of this international business planning. Economical factors may also encompass the effects the climate may impact on the launching of the product in to the Nation. High rainfall may depict a loss of value in monetary terms to the continuity of recreational boats. This will also mean a low percentage in the turn up of the tourists who are the main potential client in the recreational boats and in the boating products (Orthmann, et al.2006, p.200).Miami experiences average weather conditions which have so far has seen the business rise to greater capacities. Comparing this with France which has irregular weather conditions and unstable economical status, Australia will opt for Miami in United States.
Social-cultural factors
Social factor are factors that may be generated by the product which in one way or another may have an impact or affect their mode of life style. For a product that is produced may affect the health of the people using the particular product .Therefore, producers need to have an extra care in the production and also this calls for the Nation in which the product is being produced from to examined the product critically before issuing a trading license. This is because the effects of the product toward s the user will significantly have an impact to the government. United States and France have put this into consideration and thus the reason for them having the largest and successful markets all over the world (Orthmann, et al.2006, p.200).
Australia Company is therefore obliged to adhere to this factor in producing recreational boats and its relative products. Some cultures may also have a negative influence towards the use of certain products and this is a factor that can not be altered. The notion may have been acquired from the past events on the use of the good or product as opposed to the present. This is then carried down the line and unless an individual person takes a different perspective, the cultures will never change. To stay away from such factor which may at some point bring marketing a recess, United States and France developed the recreational boats which are generally accepted by the whole society. This should point out to the Australian Company the products they use in their production should be similar with the ones used in the international market in order to be accepted in the market (Orthmann, et al.2006, p.200).
Technological factor
This is a factor that has recorded diverse effects in the business sector. The phenomenon is not well understood why it has limited and thwarted off some companies from performing in the international market, while others have embraced the ideology thus booming to extraordinary heights. The reason for the upward and downward movements in the entire business is the knowledge the company has on the technology. Also the time it takes for the business to absorb the effects of the new trends into its structure (Cannell, et al, 2006, p.150).
The United States itself being a developed Nation is the source of almost all the technology in the business field and this offers it time in incorporating the new trends in creating the luxurious boats and producing the products associated to the boats. The new trends have boosted the use of recreational boats globally, and the contribution has also been attributed by France. By launching its products in the United States market, Australian Company will benefit from an added advantage and this is an assurance of its growth. In order to embrace the factor in vigor and on time, Australian company should always have adequate information as regards technology (Cannell, et al, 2006, p.150).
3.2. Micro-Analysis
Micro –analysis factors are the factors which may have less impact on the wellbeing of the luxurious boats and the products. The micro-organisms though thought to have less effect, the impact is realizable and can be determined from the outcome that is depict able after a period of time. The micro-analysis in this sense is diversified into various categories. The categories may range from consumers, competitors, size of the market, the market trends, also the trends exhibited by the product and also the last the factor but not the least are the target market trends and the preferences (Woznick, et al, 2005, p.216).
Consumer
A consumer is the major contributor in any successful business. He or she is the determinant of the positioning of the business and also the type, quality and the quantity of the product to be produced. In analysis of the consumer in relation to the products that are produced they may be categorized in different ways. Consumer’s analysis may first be analyzed in terms on the demographic. Demographics are merely based on the statistics recorded in relation to the geographical location of the potential customers. The availability of the consumer in purchasing of the product is very essential in the success of the business as the capability will extensively have an influence in the business. Also in the customer analysis, the statistics recorded in term s of the per capital consumption or the income received by an individual will help in the marketing plan. This will help the business have predetermined prospects which will in the approximation of the sales (Woznick, et al, 2005, p.216).
Another analysis that may be used in determining whether the consumers have an influence in the progress of the enterprise is the consumers buying patterns. These two factors have been of much help towards the welfare of the United States of America and the France in their stiff competition in the global market. United States have outweighed France for it has potential consumers who mostly considered as the jet set consumers and are the main tourists who tour Miami, which has a harbor for cruise ships. It contribution has termed as the gate to America. Therefore, the Altex coat limited in Australia will have an opportunity considering that it is not their first time to venture in to business (Woznick, et al, 2005, p.216).
Competitor
A competitor in the business is an enterprise or an individual which or who does a similar business by providing all the services which looks similar with it is counter part in the business. The quantity, quality and the price of the commodity may differ considering some factors. The factors may range from the financial capability of the company, ability of the consumer, and the trends in the market among others. All these factors depend on whether they are favorable or unfavorable. In this case, the United States of America and France have shown a very stiff competition in the international market. This is in consideration that both Nations are international countries, with adequate knowledge and skills on the creation of recreational boats and boating products (Woznick, et al, 2005, p.216).
The competition has earned the consumers an advantage or getting quality products. It’s not only in Miami in which luxurious boats and their respective products are produced. In the Northern America, particularly in Canada creation of luxurious boats is at an alarming rate and this has been taken as a threat by the highest producers of boats and also the best sellers in the world, Miami. Though, Miami in U.S.A has so far proved to be the best, in terms of the quality of the products, also the subsidized prices and also the best services it need to be aware of other upcoming enterprises. In this case an Altex coating in Australia is an upcoming business dealing in the production of such recreational and finding its way through venture into the international marketing plan (Weaver, et al, 2003, p.160).
Market size
In the present world sudden and swift changes have occurred in the global market .The changes have been realized in terms the performance in the market, the regulations sourced by the government ,use of locally available materials and majorly on the emerging trends and technologies in the business world. All these factors will in a way determine the extent at which a company will embrace the market. This will determine the size of the market. In the United State of America, an accelerating demands for the luxurious boats and d the boating products. Within a year the proportionate is moving at an average of 7%. The market size is expected to rise to around 14% and this means that the U.S will embraced the largest share in the international market (Weaver, et al, 2003, p.160). Globally, North America has the largest proportion in the international market in production of recreation boat. Depending on the market fluctuations the market size alternates from time to time .For instance, 5 years from 2000 backwards, Europe recorded the highest growth in the recreational boats that are based in the European countries. Due to the continued growth in the recreational boats industry, there is a shift in from the low production of boats to the expensive ones. The market size for the various Nations is ranked by the incomes generated by each industry producing the luxurious boats and the boating products. The market sizes are also determined by the market shares that an industry producing the recreational boats (Weaver, et al, 2003, p.160).
Market Trends
Market trends are the changes that are experienced within the market that to some extent may influence the activities happening within the market. As depicted in the year 2009, the industrial recreational boats emerged with great surprise. The international market for the recreational boats was low in almost in all the continents and the major contribution was due to the global recession. Canada, in North America was the most affected as opposed to Europe which had the least effects. In terms of dollar value, Europe was much ahead in comparison to Northern America. The Marketing trends and growth is highly determined by the demands that are placed in the industry producing the recreational boats (Thomason, 2001, p.120). U.S.A also intends to project it competitiveness by educating the relative industries within the country, the industrial education is only for those which are competitive within the region (International Marketing of Education,2010).
In essence, luxurious boats comprise of the boats which operate inboard and those that operates outboard. Individual Water crafts and the sail boats may also fall in this category. During the ending year, 2008, the marketing trends had embraced a total market size of roughly $23.9 billion in the international market. There is an estimate that within the 6 years to come from the present time, the values will shoot to a projected figure of approximately $ 25.8 billion. It has therefore been predicted that, Europe and Asia will be the Nations will be much influenced by this figure. This is also a prediction that the growth shift is accelerating towards a superior and much expensive recreational boats (Thomason, 2001, p.120).
Product Trends
The emerging trends used in the production of the new product are the recreational boat and the new boating products are being expected to change as the growth rate increases. The trends in this case are determined by the technology that is being introduced in the production of the recreational boats and the boating products. Depending on the competitive impact of the various companies within this product or in creation of the recreation boats the trends have improved the quality of the boating products and in particular the recreational boats. As depicted earlier in this study, United States of America is far much ahead in evolving the trends (Thomason, 2001, p.120).
This is because of the advancement in the technology and the adequate knowledge and skills which ought to be incorporated in creating the luxurious boats. Though France may in a way try to compete with U.S, most of the equipments that it uses in it’s developing of the recreational boats are imports from the U.S.A. This will in turn offer Altex coating limited company a favorable environment if it were to be based in the United States of America. In essence, the Australian company, Altex coating limited, will enjoy all the benefits outsourced by this international market. For instance available raw materials and also the potential customers based in U.S.A. it will also be simple in acquiring the production trends before they are exposed to the market and this will provide a competitive advantage over it is rivals (Thomason, 2001, p.120).
Target market trends and preferences
Recreational boats and the boating products created and produced in the United States of America are mostly meant for both substantial use and for universal use; international market. The targeted market is mostly determined by the trends in the market. If the U.S.A industry, for instance has a target to venture it is products in France and in the midst some fluctuations occurs that hinders the venturing, the industry will be compelled to terminate the project. The marketing trend will also be determined by the tastes and preferences of the individual consumers or the users of the recreational boats and boating products. Some customers may have different tastes in the various types of the recreational boats and therefore the industry or the company ought to respect the taste (Pederson& Derdak, 2000, p.200).
In embracing this issue in totality, United States of America has come up with a variety of recreational boats which has been able to cater for all it is customers. This has in turn to still remain the leading producer in creation of recreational boats and boating products. Tastes and preferences are one and the same thing thus, inseparable. The customers’ preferences should be prioritized since the products are merely meant for the consumers, which is the overall objective for all business activities. In essence, the market trends and preferences are determined by the market size, market segmentation and also the demand for the product. Also the trends in the preferences are determined by the consumers in the global market. Before venturing into the international market, Altex coating company ought to evaluate the taste and preferences required in the international market (Pederson& Derdak, 2000, p.200).
3.3. The SWOT Analysis
Altex Coating Limited Company
The SWOT analysis in this case refers to the Strengths, weaknesses, opportunities and the threats. This analysis in comparison to other company will depict the performance of the company in the market. A company venturing into a competing environment ought to at first analyze its operations by applying the SWOT analysis and then do the same to it is competitor and this will offer it a better view of its competitor. Financially, Altex Coating Limited is well founded, since it started it is manufacturing in the protective clothes to be used in the maines.This is another strength that it embraces and thus assured to thrive well in the international market. Lack of market for the produced products has weakened the Altex coating limited company. This is a weakness that has a compelled the company to venture into the International Market (Pederson& Derdak, 2000, p.200).
Lack of market also means, low turn up of the customers to purchase the products. The Altex coating limited company has also an opportunity that is well explicated which in this case ,is the chance to venture in the international market ,and more so in the U.S.A, Miami, the largest producer of luxurious boats and boating products. A favorable environment in Australia is also an opportunity that extensively has endorsed the growth and development of the Altex coating limited company (Buckley, 2004, p.110). Challenges will always occur in any anticipated success, therefore in its operation as a manufacturer of apparels used for marines as protective devices it meets with some threats that hinders its growth. Some statutes may impose regulations that limit the number of products that ought to be produced within a given period of time. This means that the company can not produce more than what has been stated. Some other threats includes the future anticipated laws that may relate to the company and not compatible with it.
United States of America
United States of America upholds some of the strengths that have really seen it moving to greater heights in terms of it is performance in the production of the luxurious boats and the boating products. A well advanced technology that has endorsed the progress of the business in the international market .As it has been depicted from the market statistics there is a growth rate of approximately 7% annually which insinuates that their will be a continued growth in the years to come (Buckley, 2004, p.110). Also the economical conditions in the United States of America have so far been in support of the business which has also seen the operation performing excellently. Moreover, United States being the leading country in the process of recreational boats has an available market which has potential consumers of the product. The strengths do no guarantee the country to have a successful flow in production and sale of the recreational boats. It lacks some of the materials that are required in the production of the recreational boats and the boating products. U.S.A Itself is naturally an opportunistic country in all it is undertakings in the business sector. U.S.A also receives some threats from the competitive nations, for instance France and the upcoming Altex coating limited based in Australia (Buckley, 2004, p.110).
3.4. Justification for launching the product
The Altex coating limited company is justified to launch the product due to the following reasons;
• Pricing and sales promotion is very definite in the marketing environment.
• Developmental stages of the product are infinite, thus product trends are not limited.
• Economical status in the United States is favorable.
• The marketing trends and segmentation are very stable thus offering a conducive environment for the Altex coating limited company.
4. Market segments to be targeted
Market segments refer to the how the competing company’s have shared the customers in the market and the market share it holds as compared to the rest of the competitors. The number of revenue a Nation holds in the market will determine the position of the Nation of the nation .In this case the United States holds the biggest share ratio in the market thus being at the highest position in the international marketing plan (Orthmann, et al.2006, p.200).
Retrieved From
Market Projections for A Proposed New Convention Centre 10 Year By Market Segment, internal staff report June 2010.
The above graph shows approximations on the market segmentation as depicted from U.S.A National Statistics. It exhibits how the various industries dealing in the creation of recreational boats and boating products have shared the National market within U.S.A. Miami being the largest producer in the recreational products is represented by number 10 and the annual rates is approximated to be $ 37.1.
Market Projections for A Proposed New Convention Centre 10 Year By Market Segment, internal staff report June 2010.
The above graph exhibits the approximations showing how the market segmentation is shared on an international basis by the various industries. In this graph the industry that is represented by number which coincides with $ 14.0 means that this is the industry that has embraced the largest percentage in the market. As discussed, United States of America holds the highest percentage of the market segment thus acquiring the highest position in the international marketing plan.
5. Demand forecast for the new product
It has been depicted that within 3 years to come there is an anticipated growth rate in the overall market demand for the product. As depicted from the study the growth rate is increasing at a percentage rate 7% annually and it is therefore estimated that in around 2014 the growth will be around $ 27.4 billion. This also means with the continued increased demand of the boating products in the international market, within some time to come U.S.A, will have embraced almost the international ,market and this will simply the task for the Americans as they will no longer spend much in search for the international market as everything will be available within the U.S..A (Introduction to Buyers without leaving the U.S.A, 2O1O).
6. Marketing mix strategy
Marketing mix strategy is aimed at attaining the marketing goals which are depicted by the 4 Ps which are the stages involved in the achievement of the goals, namely, product, price, place and promotion (Orthmann, et al.2006, p.200).
7. Conclusion
International marketing plan is an imperative and vital tool in the well being or the success of any business. For any business to thrive well in the business world it needs to embrace some factors which ought to support its operations in the business field. Altex coating limited company being a company in the Australian company is being challenged by some of the international market planners who have been thriving successfully from the ancient time. Despite of the challenges the company is determined to ventures into market by launching it is product through the United States of America. Recreational boats and boating products have also triggered other unrelated business activities to join in this business, for instance some associations in the agriculture sector (United States department of Agricultural marketing service.2007). Altex therefore carry’s out a SWOT analysis which will be a determinant towards it is growth and development in the international market (Orthmann, et al.2006, p.200).
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