Ght Company Analysis

Market Report for Gourmet Honey Tasmania Company Regarding International Expansion

Introduction

I as one of the marketing consultants located within Victoria for Market Choice Business, are proud and with honor to present this report to my engaging company: Gourmet Honey Tasmania(GHT). GHT is preparing for entry into international markets since its overall excess capacity at large. This report is based on analyzing general market conditions within Germany and Hong Kong, in order to determine the best of the two market for entry. As well the report indicates the positioning, target customers, and entry mode most appropriate for company to expand.

External Environment Analysis

Economic and Financial Environment

Germany

Germany, as a leading market within EU, is highly developed with rapidly growing economy. With GDP of 4427.4 billion, Germany possesses the strongest economy in Europe, making it the largest market for honey. High per capita consumptions and large population base have led it become the largest European honey importer, second of the world. High income rates and society wealthy yield sustained growth in honey market, making it an opportunity as an growing market.

There is import tax of 17.5% for Australian honey to enter EU markets(CBI Market Survey, June 2009), likely to occur plethoric operating costs. Non-tariff barriers are implemented since EU found Chinese honey to be under defects 5 years ago. The European Union has launched strict controls and inspections regarding import honey contents. Products which fail the test will be prohibited from importing. (Jackie McAdam, August/Sept 2007 Traidcraft), thus occurring a threat for entry.

Hong Kong

Hong Kong is a mature and developed open port in Asia. Its open policies have molded one of the largest commercial systems globally, making it a center of multinational finance and business (Trade and Industry Department, GovHK. 2012). It is famous for most unrestrained economy,...