International-marketing.docx

Benefits of cheese during the review japanese

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benefits of cheese during the review, Japanese consumers are not expected to continue to buy cheese during the forecast period, so the demand for cheese may remain strong (Euromonitor, 2017). Thailand: According to trend’s data from Euromonitor (2017), Food service played a major role in cheese consumption in 2017. In the past, cheese was considered a Thai hobby, but more and more consumers were accessing cheese products through these food service outlets, which increased their familiarity with cheese consumption and helped the retail of cheese. 6.0 Market Selection and Justification The company has observed significant opportunities in the Asian market that is viewed as a great opportunity for the company ahead. Therefore the markets in Japan and Thailand will be thoroughly accessed to determine the most suitable market of the two to initiate operations. 6.1 Japan summary To elaborate on the current trends in the Japanese cheese market, the internationalization of the Asian cuisine has resulted in a strong demand for cheese, therefore the Australian dairy industry is likely to benefit. Also, due to the fact that japan is currently facing a shortage in domestic fresh milk, the demand for mozzarella and Camembert has been rising (Euromonitor 2017). The growing consumption of wine and other alcoholic beverages has resulted in an increased demand and consumption for cheese and since Japan is currently the largest export market for
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cheese, the mentioned current trends would be viewed as pronounced opportunities for Bega Cheese Ltd to initiate it’s responsiveness towards the Japanese market. (Euromonitor 2017) Additionally, other opportunities for the company include the advancements in the Japanese dairy farming technology that are of an added advantage to the future of the dairy industry in Japan. This would be beneficial to successfully satisfy the changing consumer needs and preferences. (Marketline 2017) Furthermore, according to (Marketline 2017) the level of threat of new entrants is assessed to be ‘low’ in the market for dairy products in Japan. Entry does not require large capital reserves for small-scale entry, however since Bega cheese is a competitor in the mass consumer market entry barriers could be higher. Companies generally overcome this competition in the market through the form of mergers and acquisitions. For instance, Bega cheese is currently pursuing an acquisition with Warrnambool cheese and butter and also with Tatura, who has prior experience in operating in the Asian market, this would be beneficial for Bega cheese that expects to expand their business in the Japanese market. (Snape 2013) However, since Japan is one of the world’s most highly regulated dairy markets, Australia is in constant competition with the domestic markets as well as New Zealand and USA that are dominant within Japan. The three nations account for 75% of the country’s cheese imports. Nevertheless, through the Trans-Pacific Partnership, Japan is to generally open up it’s market for cheese over a 15 year period. (Australian
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