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International trading business

International trading business

 International trading business

Exectutive Summary

The aim of the three years plan is to introduce my international trading business that named JN pty ltd, a company that imports frozen seafood from Vietnam and New Zealand to China. The main business opportunities are the low cost of Vietnam and the unique sea resources of New Zealand. The way of measuring marketing demand assumption would be launch early but small and approach managers of restaurant and buffet and ask about what kind of production they need.To maintain competitive advantage, i decide to use differentiation and low cost leadership. Differentiation can be achieved as green mussels are only confined to the coast of New Zealand,that is different from other seafood. Low cost leadership can be achieved by bulk buying from Vietnam. I decide to lower the price in the first year to gain more market share and develop customer’s loyalty. In the second year, i will try to increase the price by up to 5 per cent. JN pty ltd will advance the operational strategies through functional organization, staff reward system. Also, the financial report will be provided in the end of the report.

2. Business report

2.1Demographics in shanghai , China

There are two reasons that i choose to build company in shanghai. First ,shanghai is close to jiangsu province and zhejiang province. The total population in these three province come up to 160 million and CPI is the highest in China.Every individual could be my potential customer. Second, Shanghai port overtook the port of Singapore to become the world’s largest busiest container port. This could help to sharply decrease the transport cost.

As the graph shows, the population trend of shanghai is becoming more and more intensive.Considering the increasing population in 2020, I believe after two years’ operating, the sales will boost sharply. In 2030, the population would increase by 18 per cent, which means the potential customers are increasing over time.

2.3 Rise of developing world

As is known to all, according to GDP, China has became the second largest economy in the world.In recent years, China has a strong and well-develop market.Now, China’s customers are developing a habit of buying healthy food just like other developed countries. However, there is a shortage of supply. In this situation, there is an increasing demand for importing.Importing frozen seafood could perfectly meet their demand.


2.4 Targeting customer

Everyone in shanghai, Jiangsu and zhejiang province could be my customers.At the emerging stage, my company is mainly focus on business to business.That is, sell the products to the retails and restaurant like buffet. This could boost the sales. Therefore,large amount of demand could help me gain more bargaining power when my company is purchasing.After a few years, when it comes to the maturing stage and the demand is slow, i would use the strategy of business to customers.Run a few stores to sell those frozen seafood to customers directly. The retail businesses have higher profit, which is extremely important when the demand is slow.


2.5 Market testing

The marketing testing methods that i adopt are approach some managers of buffet , create sample products and launch early but small. First,i can discuss with mangers about the size of seafood they use and the maximum price they are willing to offer. Second, i will give them some sample to see how it goes.After these processes, i would have some basic understanding about market demand.


3 The sales and marketing strategy

3.1 product

First of all, all product must be in good quality, which could be ensured by selecting inspecting sample randomly. Second,before purchasing the inventory, i would have a basic understanding about what the market needs to avoid unsalable. For example, the best selling shrimp is the medium size,i would try to decrease the amount of large and small sizes when make the purchase.


3.2 price

As we know, the price usually changes individuals’ consumptive habit, especially when i want to use low price as my competitive advantage. For example,in Chinese market, the price for Vietnam shrimp is around 19 dollars per kilogram. I would set the price at around 17.5 dollars. This could efficiently boost the sale of my company, which is the most important thing when i just enter a new market. In the third year, i would try to increase the price by up to 5 percent. I believe my customers would still consider my company as first choice as the price is still under the industry average.

3.3 Place

A warehouse based near port is the place that i choose. There are many advantages.It is not difficult to rent a warehouse at that location as there are many warehouse near the port and the price can be negotiable.Transportation can be saved by around 10 percent as it is close to the port.Furthermore, choose an industry zone would gain the advantage of cheaper electricity and water.

3.4 Promotion

Since the network advertisements have becoming a trend, online advertisement is necessary. I will post the advertisement on social website like Facebook, Wechat seeing itself as a healthy label.Making some funny advertisement that people are willing to show to their friends.This could be helpful to spread quickly and it is easier for people to remember my brand.

Also, i would list some the most popular buffet in the city and promote my frozen seafood one by one. Giving them some free samples to try.

3.5 Measurement of success

As i mentioned before,the developing of my company will be divided into two different stages:emerging stage and maturing stage. As the goal of first stage is enter the market successfully .Thus, at the first stage, the only thing that i care about is market share. The benchmark i choose would be the industry average. At the second stage, the measurement of success is to increase revenue by at least three per cent.



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