Overview of Just Snack Company

Question:

Discuss About The Business Marketing Management Has Explained?

The report is based on the venturing into one of the Trans Pacific Partnership Agreement (TPPA), in which Australia has been selected. The company taken under consideration for this particular report is Just Snack which is originated by Amelia Priest in Australia. The idea of this business is to supply the healthy snack to the universities, colleges, hospitals and other such institutes. This emerged when the child of Amelia, namely Alex fall sick and was suffering from low immunity and less digestion problem so Priest developed the idea of preparing healthy and tasty snacks made with organic materials.

It involves the political risk involved in Just Snack which includes economic, traditional and legal changes. The risk management is been learnt as to how to extract profit in such a situation and how to balance the situation on equilibrium. The foremost advantage in this business is that it supports go green or could say global green which is a step towards the environmental protection and on expanding the B2B business at international boundaries this campaign is also moving ahead constructing the change within the environment. Thereafter through the presentation of diagram the flow chart of international sales sequence is elucidated and the similarity & slight difference in international and domestic ales has been drawn. Lastly, the development of personal contact is focused and with the help of example of Just Snack the face to face obligation is elucidated that describes the self-reference criterion and cross-cultural study by Hofstede’s.

 In nutshell, the international marketing related to the Just Snack Company in Australia has been discussed focussing on the factors affecting the business. These might be political and cultural factor. The environmental protection has been concentrated as well as the balance between cross-culture and self-reference criterion has been developed to clarify the understanding of international marketing.

Just snack is an Australian company started in 2011by Amelia Priest. The reason behind this was that the child of lady, namely Alex was suffering from the behavioural and learning problems for which appropriate diet was required. They attended a lot of workshops in Sydney where they can get the information about gluten and dairy free snack which do not possess additive sugar in it but still tastes good. At that point there was no choice with Priest, so she discovered the Matt’s Munchies which is a fruit snack made from the fruit puree of organic fruits. This resulted in the big hit and the owner started to invent more related product which are healthy and organic in nature. The speciality of these snacks is there is no added preservative due to which they cannot be stored for the longer period of time (Investing answers, 2017). For this multiple channel of distribution is required with the introduction of multiple varieties of healthy snacks. The company has gained popularity in short time period and in the present scenario it has gained the good position in the niche market and supplying the products to the universities, organisations set up by government, corporate companies, independent supermarkets, gyms, cafes, schools and other similar institutes (Priest, 2017).

Political Risk Management

The political risk faced by the company is recession of 2017 which struck the economy badly causing the drastic fall in GDP of the country (Halliday, 2010). Also there were the changes in the policies made by government which change the situation of the business and country other way round. The political decisions were taken like banning of certain product or cut off from the country from where the organic food products and ingredients were supplied, this might cause the risky factor of the business as the business will need to search for the other option at the short notice to maintain the consumer base and increase the customer loyalty. Also the government has designed certain standards for various industries, therefore, in context of food & beverage industry also the ISO quality standards are developed and companies need to abide by these quality standards. For the sake of this the investigation is made. The business owner feels stress because of the investigation that might take place at any moment of time for which the preparation has to be made. That company who cannot afford to take the ISO quality certification have to face difficulties because their business does not flourish to that extent and less trust gets developed among the customers. Another political risk that the company faces in international B2B market is the valuation of currency, the fluctuating rates of foreign currency pops out as an issue for the business as the market rate gets changed which at last affects the pocket of consumers (Czinkota & Ronkainen, 2013). Recently in Australia the government has announced the tariff barriers in global market which curbs the export and import of the company thereby resulting in the heavy loss to the organisation. The major issue that can neither be predicted nor adopted is the terrorism attack which affects the economy of the country to the great extent. It brings about a lot of destruction in the country and its impact falls on the overseas business as well.

                                                  Figure1.1 Effects of political risks

                                                       (Source: Hedley, 2017).

These problems could be effectively solved by adopting the strategic management and preparing the flexible business model. The organisation Just snack must undertake the future predictions to understand the upcoming challenges and get prepared to deal with it. In case of changing policies of government then the flexibility in the business plan helps a lot and the company is comfortable enough to face the challenges and undertake the risk. Even if the risk is higher the organisation is at the position to cope up with the situation to at least avoid the loss. Concerning about the terrorism the company can launch the help campaign for the affected people and provide assistance to the terrorism prone areas for that the company might get compensation from the government. The risk could be minimised by contracting to the other company on the prevailing situation and currency rate top avoid loss in the future and ensure the profit. The political factor encourages the company to take risk and flourish in the international market. It enhances the decision making skills of the management and thereby the efficiency of work gets improved along with the effectiveness. By constructing the business plan the investors could be attracted to invest in the business. The management should maintain the reserve which could be used at the adverse times or during the situation of downfall to support the business as well as the country. Political risk management could be opted by Just snack to compete in the market and flourish with even more pace. For this risk manager should be appointed who at the initial level will identify the risk and segregates it as per the nature and way of resolution that can be applied upon the particular sought of problem. The risk manager would study the way in which the working of Just snack is continuing and making the company aware about the tax policies and insurance. The tax saving strategies is adopted and calculations are made to pay the appropriate tax and save it wherever possible without evading it. The policies and preparation for terrorism attack should be priory made using the insurance policies. Also the market analysis should be made to understand the prevailing trends of the market, in case of, monopoly or monopolistic market the exploitation of consumers should not be there. The varieties of the healthy snack should be introduced to leave the better impression on the mind of consumers and target the specific market creating the niche market and special segmentation. On selecting the better segmentation the market is targeted like concentrating over the children and their parents, opening the outlets near hospitals where high foot fall of patients are there and they get attracted with the natural and organic snacks which comparatively tastes good. Finally the positioning is made which is created by the customers because they are the one that rise and fall the product in the mind and as per the annual report the better brand image of Just Snack has been created and the company is likely to grow in the coming time (Nordmeyer, 2017). 

Global Green Issues and Challenges

The global green issues are the challenges that the mother earth is facing. The greenery which is the symbol of prosperity is depleting at the high rate. With the everyday increasing population the environment is deteriorating which is very painful for the beautiful planet earth to bear it. The imbalance in the atmosphere has occurred and global warming is increasing day by day causing a lot of harm to vegetation, wildlife and the human life as well. It is the highly debated topic and after conducting a lot more discussion and holding the international level meetings it is decided to focus on the ever growing issues of pollution and increasing global warming (Dekker, Bloemhof & Mallidis, 2012). The solution and cure of the pollution control is easy but the only thing that should be understood is each and every person has to take certain steps towards improvement so that one on one the entire world could initiate the changes. Every citizen on earth has to understand the seriousness of this major problem and amend their lifestyle accordingly (Nourish the planet, 2015). The challenges related with the global green issues are as under:

• Fresh Water: Water is the lifeline of the human being and with the increasing pollution and depleting resources the lack of water has emerged as the crucial problem on the earth. There are many drought prone areas marked in the survey and no is the time to use the water wisely. Again these changes would also be initiated by every single person only. The situation has arrived where even the single drop of water matters a lot. The little care could save a lot more water which could serve one or two regions. Unnecessary wastage should be strictly avoided. Steps should be taken to recycle the water. Tap should be immediately closed after the use is over. The kitchen water should not be thrown instead it could be used to water the plant or wash the vehicle. Also water harvesting techniques need to be adopted and for this the first step is to maintain reservoir and timely cleanliness has to be done. Also rain water harvesting could be of extreme help and for that unique construction of house has to be made which saves every drop of water (Olson, 2013).
• Global warming and climate change: The effect of global warming could be clearly seen upon the environment. The temperature of globe is rising due to increasing pollution through the emittance of smoke for the vehicle, decreasing afforestation, secretion of chemical pollutants in the air and water which is causing destruction to the life cycle of the wildlife and humans due to this the level of CO₂ is increasing in the atmosphere which is the main cause of high temperature and due to this the ice caps from the north and south poles are melting down and glaciers are increasing resulting in increase of the sea level giving rise to the dangerous water flora and fauna (Renwick, Redman & Maguire, 2013). Due to the increasing global warming even the climate change has become uneven and seasons are changing or getting delayed from the original time. The appropriate monsoons are not striking to the required place. Some areas are flood prone whereas some areas are drought prone which is affecting the agriculture industry as well (Conserve energy future, 2017).
• Depletion of Natural Resources: The natural resources like water, mines, coals, diamonds, gold, silver, crude oil and other similar natural resources are also getting depleted due to the overuse of these scarce resources. There is a need to sustain these resources and initiate the optimum utilisation of such resources. They need to be saved for the future generation as well.
• Waste: The emergence of waste materials is also an alarming issue because the waste is not disposed at the particular place. Also the usage of plastic and other similar products are non-biodegradable which affects the soil and takes off the fertility within it (Nature, 2017).
• Deforestation: The major cause of all the issues is the increasing deforestation and increasing urbanisation due to all time increasing population. Due to the cutting of more and more trees the soil loose the fertility and water cycle gets disturbed thereby resulting in lack of rains and increasing landslides and imbalance in the nature (Zimmermann, 2016).

                                                                       Figure1. 2 Effects of global warming on the environment

                                                                                (Source: Dechert, 2015).

On clearly understanding about the global green issues the question arise that how this will affect the international market and what will be its impact on Just Snack. The answer to this is that there are numerous and enormous products prevailing in the market from household and essential basic needs to the cosmetic, beauty care, clothing, accessories and many more (Boehlke, 2015). Considering the food products packaging as an example, the plastic packaging after a certain period start secreting chemicals which is harmful for human health. If the government ban these products and usage of plastic many business are likely to get affected and packaging industries using plastic may get locked up. This will affect the global economy but the positive thing is that the environment will be on the track. With the several shut downs there will be certain new start-ups green in nature which might flourish with the growing pace of green revolution and this will help the environment to the great extent if every country starts adopting the go green approach. This step by Just Snack will gain the popularity in this green issues, it will grab the attention of health conscious and nature lover people and the brand image gets created which is the prime requirement to flourish in the global market (Ecolonomics, 2014).

Effects of Global Warming on the Environment

Just Snack is the light product and beneficial for the health of children as well as adult. It contains the organic ingredients which are fruitful for the immune system and support it to grow (World watch, 2006). The inclusion of new varieties acts as the cherry on the top. Parents and even children get different organic options. If such businesses are one of its kinds then they are likely to flourish beyond the boundaries and build up the everlasting goodwill and intact brand image in the mind of the consumers should get developed (Shah, 2015).

 Step 1: Prospecting and Qualifying

The initial step to establish the business at the international level and making the efforts to flourish the same adequate research and quality study is required for that. They need to spread the business through promotions by publishing the advertisement in the local business directory. Such a step is said to be the prospecting and the entire planning plotting is based on this initial step only or could say that prospecting is the base for the international sale. This is the process which creates awareness among the customers and arouses their needs to pursue the new item. In context Of the Australian Company Just Snack the idea struck when the owner’s child was suffering from the nutrients problem and low immune system and the lady decided to feed the child with organic and healthy yet tasteful thing to the child to improvise the health of the kid. This idea turns out to be the business is targeted which resulted in high supply in universities, schools, hospitals and many more such places and institutes.

 Followed by prospect there is qualified prospect as well. Many a times it happens that the prospect might get inspired by the product but the one does not possess the authority to deal on behalf of the company. In such a situation it is waste of energy and time to discuss with the prospects who can’t perform the final act of purchases and deal, thus for that time qualified prospectus should be contacted which could clarify that whether the contract has to be done or not (Kolodybska, 2016).

Step 2: Preapproach

Preapproach depicts the homework done by the salesperson before making the selling. It involves the study of market and the immediate client. The background of the customers are analysed and thereafter the approach is been made to sell out the things. For instance, In Just Snack Australia the idea was great and new but the innovative approach requires time to establish and maintain the position in the domestic market and thereafter the international approach is selected. For gaining international marketing first of all the environment of the partner country has to be evaluated and the segmentation is done after targeting the niche market. These studies and prior research of the country and joining company background is stated as pre approach which is an essential element for the business and considered as the smart move to attain growth in the wise manner (Steady sales, 2011).

Step 3: Approach

Approach is the first impression upon the consumers; it is the immediate glance of the product and prior to it is the gesture that steals the show. If the salesperson or the agent directly comes upon the value point it neither sounds good nor does it look professional. Initially the warm greetings to the customer has to be made, thereafter the base of the interaction has to be made by undertaking a short talk with the customer and slowly gradually by making the consumer understand about the product and service the message should be delivered. This is the finest way to maintain the relations with the consumers and inspiring them to make purchases and deal with the country. This kind of conversation and convincing of customer is known as approach. It must be kept in mind that the approach with the customer should always be positive (Reds marketing tips, 2017).

Step 4: Presentation

In order to arouse the needs of the customers the product should be presented in the well manner format. The basic idea should be made clear in the mind-set of the customer. For that clear thoughts need to be developed and the demo should be given to the customer where ever possible. Considering the company Just Snack, to attract customers the benefits of the products must be demonstrated to the consumer. The value point of the customer should be captured and accordingly the presentation has to be made. The advertisement could be launched stating the trust of the parent on the Just Snack and why they prefer the particular product for the growth of their children and the after effects must be then addressed to the audience. This would target the parents of small children and the advertisement must be telecast on the television or internet which covers the wide area and international market as well thereby creating the awareness and increasing the consumer base beyond the domestic boundaries as well (Account learning, 2017).

Step 5: Handling Objections

When the sales promotion had been made and customers are inspired by the attributes and approach of the salesperson, company and the product there are likely to arouse a lot of queries. These queries are meant to come up if the customer is actually interested in the product. It is the responsibility of the company to resolve the issues and objections of the customers and also customers should express their doubts so that clarity could be brought upon. In Just Snack as well there are queries of parents regarding the authenticity of the product and whether the snacks are reliable and preferably given to the children or not, is the nutritional level appropriate and thousands of similar questions pops-up and company need to answer these questions in true and correct manner to the public in order to increase the consumer loyalty (Business Queensland, 2017).

 Step 6: Closing the Sale

The closing of sale is the stage where the customer finally turns into the consumers. The final purchases are made after following the above steps successfully. At this point the customer gets satisfied and fulfils the need by making purchases with Just Snack. This is the ultimate stage where agreement between the customer and company is made. At times the trial closes are also made in the situation where the objection of the customer is carried and there are chances that the objection might not get converted into the closing sale and these are the situation where customer is not satisfied and the efforts upon them go in vain (Nikson, 2014).

 Step 7: Following Up

Now here comes the last stage of international sales sequence where the products have been sold to the customers and thereafter the follow up has to be made. Follow ups are the gestures and customer relationship building techniques. At this pointy the company asks the customers to revert back their reviews upon the product. It is to note that whether the snack provided is as per the commitment or not, are there some changes that need to be made. It is basically the feedback from the customer and creating the sense of trust and relationship with the customers which is at the initial stage. The happy customer acts as the asset for the company bas the referrals and positive word to mouth approach is selected by consumers which is the step towards growth and development of the company at the international boundaries (Brands, 2013).

At times it could be quoted that international sales process is quite similar to that of the domestic sales sequence; only the slight variations are there in international and domestic sales (Pfannkuch, 2015).

• The similarities between them are that before starting the company and launching the product it is necessary to perform the research and deep study regarding the market. Only difference is that in domestic market the situation of country and laws are very well known whereas at international level the government, legal and culture policies need to be studied (Citeman, 2007).
• Preapproach has to be made in both within the nation and beyond the national boundaries but in international market the mind-set of foreign people has to be analysed.
• Approaching the customer is similar at all the places, gestures and warm talks are required at all the level to convince the customer.
• Also the presentation of product remains the same in domestic and international, only difference that arises is linguistic barrier which could easily be resolved (Madsen, 2013).
• The objections are common at every place because the interested customer would surely enquire about the product and its services, at the international level the panel of solving the issues should be expanded.
• The closing sale are accurate and at every country when the customer gets satisfied they tend to purchase the product or keep it in the trial close for further evaluation and take time in purchasing.
• Last is the follow up, this might differ from country to country but every company at the international as well as domestic level make efforts to collect feedback from the consumers and encourage the customer referrals (Varghese, 2015).

A self-reference criterion is the cultural value of an individual which belongs to the country, company and culture in particular. In this the person or business owner is at the approach that their culture and values are supreme and those techniques that are been used in the home country will work successfully in the foreign country as well. The acts of the owners are mostly having the domestic approach in the overseas market. The decision making of these people does not vary according to the changing values, culture and tradition of the countries. The cross-cultural analysis is the prime solution that needs to be adopted. Cross-culture means the understanding of different culture of various countries. Through this the understanding should be developed of the country where the business is been conducted and its culture, values, religion, traditions and beliefs must be focussed on (Vertamo, 2014). One decision which is favourable in the host country might not achieve success in the guest country. Considering the Just Snack, if it wants to establish at the international level then for this the company need study about the country in which it would be best to start and what will be the criteria to be followed which making the entry (Cavusgil, Knight, Riesenberger, Rammal & Rose, 2014). The market selection will be done and accordingly the suitable target market will get selected. Segmentation on the basis of gender, age group or other needs will be made. The initial start of overseas business should be from basic things like the most famous fruit or vegetable that is generally accepted by the citizens of country then such snack should be launched. Once the taste has been developed and suited the taste buds of the people of other country the product is likely to gain popularity. The brand image is important for the business to create the memory in the mind of consumers. The self-reference criteria must be checked and not directly applied because it might face the situation of failure, thus at the initial level the experiments and studies need to be applied (Thomas & Peterson, 2017). As far as the personal contact is concerned there should remain the touch of the host nation’s culture and values but entire belief would not work, therefore, there is a need to have a mixed culture which might attract the consumer as the new concept will get developed. In order to convince the customer self-reference criteria should be used to the limited extent. Self-reference criterion is linked with the ethnocentrism which depicts that people have the tendency to treat their culture as the superior of other. This might create problem in the guest country and while conducting the face to face interaction in making deals this point need to be kept in mind. Biasness should not be promoted instead the marketing should be in such manner which advertise the product as well as represents the country from where the product has come into the origin or could say the host country (McKenna, 2016).

Example: To understand the self-reference criterion better, it could be elucidated using an instance. Using the similar company Just Snack which is originated in Australia that is a healthy snack provider to the universities, schools, hospitals and other similar sought of institutes. The main aim of it is to provide healthy and comparatively tasty snack to the children and people having indigestion issues or having low immune system. If the company is at the view to expand the business in the international market then first and foremost thing that need to be kept in the mind by the owner is to study and perform research regarding the culture prevailing in the particular country. Considering New Zealand as the country where international marketing has to be conducted by Just Snack, Australia. The owner Priest needs to search and gain knowledge in the context of culture, values and beliefs of New Zealand and target the market over there. Also, they should understand about the market area and chances of growth in the particular region. What strategies should be undertaken establish the position in the market. Considering the personal factor and face to face negotiation of the overseas business then discussion over the strategic issues need to be made. Whilst negotiating the business in person then one of the agents of Just Snack, Australia will appoint an agent who will conduct a research in the market of New Zealand and will find out the availability of doing business in particular country. Thereafter the mode of entry will be selected on analysing and selecting the market area. In case the entry mode is joint venture then agent will interact and finalise the deal with the person in New Zealand. Through the latter, culture of the country will be understood; their beliefs and traditions will be learnt along with languages. While opening up the outlet in the foreign market like New Zealand their language should also be adopted to make consumer aware about the usage of product and this creates a sense of belongingness in the country. The market is then targeted and distributed in small segment to start with. The policies and governmental laws should also be taken under consideration while deciding to establish a branch of healthy snacks in New Zealand. The promotional activity should differ from country to country as tastes of customers of divergent regions vary. Thus the entire discussion should be made between the two agents and thereby the decisions should be undertaken to result in fruitful future and growth of the organisation starts at the international level. If self-reference criteria are avoided there are chances of growth and development as the ideas do not become limited and wide area is emerged which extends the varieties of healthy snacks and scope is increased, this lead to the emergence of new ideas thereby the growth is ensured and multiple branches could be established for further enhancement as well.

Conclusion

Hence, it could be concluded that on launching the new product in the market there are multiple things that happens and enormous things are dealt with. In the above report Just Snack, Australia has been selected and the entire study has been made considering the company. The company is basically providing the healthy snack materials to the children with the low immune system and disturbed diet. Initially the political risk of the company is analysed which stated the governmental, societal, economical and legal issues that arouses in the journey of product. Thereafter the handling of risk is been learnt along with it the minimising of risk has been made. The company made efforts to deal with this risk and emerge in a positive manner or at least face the risk to avoid the loss. The green issues are also discussed hereby where the environmental factors and go green approach has been focussed and Just Snack stands firmly on this matter as it uses the organic material. Afterwards by the means of flowchart the B2B international sales sequence has been developed. The similarity and slight differences are also drawn followed by the cross-culture effects. Self-reference criterion has been deeply discussed supporting the example of face to face negotiation within the international market and developing the company in overseas as well.

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