International Market Entry Submitted By: Jen Spinozzi and Ashlie Morton

Agenda

• Overview of New Zealand• Overview of Basecamp• PESTLE Analysis• Target Market Analysis• Globalization• Market Entry• Competitive Analysis• Service Plan• Distribution• Advertising & Promotion Strategy• SWOT Analysis• Conclusion

New Zealand

• Island country situated in the southwestern pacific ocean.

• Only 4 million in population.• Largest city is Auckland with a population of 370,000• Government type: parliamentary democracy.• Renown for its beautiful landscape such as

mountains, volcanoes and rainforests.• North is subtropical and south is low humidity with

clean air.

BASECAMP

•Make a positive difference•Volunteer program•Internships•Learn about developing countries•Network•Learn culture and languages

Work with:Local governmentsNon-governmental organizationsInternational DevelopmentLocal Grassroots

PESTLE ANALYSE

DEMOGRAPHICS

Population: 4,290,347Age Structure: 0-14 years(20.4%), 15-64years(66.4%),

65years+(13.3%)Population Growth Rate: 0.882%Birth Rate: 13.68 births/1,000 population (2011)Death Rate: 7.15 deaths/1,000 population (2011)Net Migration Rate: 2.28 mirgants/1000 populationUrban Population: 86%Rate of Urbanization: 0.9% annual rate

Index mundi.(2011).New zealand demographics. Retrieved from:http://www.indexmundi.com/new_zealand/demographics_profile.html

PSYCHOGRAPHIC

Freedom From Corruption: 93.0Investment Freedom: 75.5 Trade Freedom: 86.8Education: Early childhood, primary & secondary,

tertiary educationSocial Mobility: Most small cultures live off land. Most

people are poor. Employment Patterns: Season due to patterns in horticulture.

Cultural Taboo: Official languages are English and Maori.

Index mundi.(2011).New zealand demographics. Retrieved from:http://www.indexmundi.com/new_zealand/demographics_profile.html

GLOBALIZATION

• FDI: $560.7 Million

• CPI: 2.3%

• Employment: 63.9%

• Unemployment: 6.5%

• Exchange Rate: 1.6%

Products from new zealand.(2011). Economy of new zealand. Retrieved from:http://productsfromnz.com/browse_1821

GLOBALIZATION

• Well-Educated • Advancing technology• High population of educated citizens who speak English• Trade agreements to export services and products• New Zealand is well known for attracting people all over the world

for tourism and film production. • Economic growth has increased 3 percent annually, • Receiving pressure from inflation• The opportunity for Basecamp would be helping in the shortages

in the architecture, engineering, health care, higher education and law enforcements.New york times.(2006).Managing globalization. Retrieved from:http://www.nytimes.com/2006/02/14/business/worldbusiness/14iht-glob15.html

GLOBALIZATION

Products• Agriculture Sector• Leading country in exporting dairy products • 50 % of total exports are from dairy, meat and wool• New Zealand supplies over 90 countries with meat Sheep (2nd largest producer) Timber (2nd important industry) Crops (grown dramatically) Manufacturing (textiles, leather goods, tobacco, rubber) Tourism (top earner of foreign exchange)

Products from new zealand.(2011). Economy of new zealand. Retrieved from:http://productsfromnz.com/browse_1821

GLOBALIZATION

• According to the Business R&D graph above, the R&D has not been very successful in New Zealand. This opens and opportunity for Basecamp to have a goal by increasing the percentage by helping local businesses improve on strategies get gain a greater return on investments.

Products from new zealand.(2011). Economy of new zealand. Retrieved from:http://productsfromnz.com/browse_1821

GLOBALIZATION

New Zealand is ranked the number one country where foreign student come to New Zealand to study and learn more about the economy and opportunities available.

New Zealand has a high rate of travelers that come visit, due to the safety and security, warm climate, environmentally friendly and its inexpensive to visit and study.

New Zealand experiences high flow of migrants, and the immigration rate has increased which helped the economic growth as for the immigrants have a higher education.

The treasury.(2011).international connections and productivity. Retrieved From:http://www.treasury.govt.nz/publications/research-policy/tprp/09-01

GLOBALIZATION

The treasury.(2011).international connections and productivity. Retrieved From:http://www.treasury.govt.nz/publications/research-policy/tprp/09-01

Market Entry

International Trade Theory

• We decided to go with Heckscher-Ohlin Model for our international trade theory– New Zealand has a lot of

natural resources that they can export to other countries. It is a capital-abundant country, which can export a capital-intensive good such as their natural water, lumber, and vegetables.

How Basecamp Can Use This Theory

• New Zealand’s main exports are forest products such as lumber, dairy products, and steel and mining. For Basecamp to build properties, they would be able to use those natural resources.

Market Entry

Market Entry Strategy• Strategy: Alliance

– New Zealand has a high population but low technological advancement, our best way to build our business in New Zealand would be to build an alliance with the current businesses and tribes in New Zealand.

– New Zealand has only 38% of their land that isn’t farmed.

– livestock such as sheep dominates most of this land. This doesn’t give us a very big margin to work with when developing new buildings and camps. By building an alliance with already existing cultures such as the Polynesian and the Maori, we would be able to establish a camp and work with their resources.

COMPETITIVE ANALYSIS

Australia

• Fast growing economy in the world• Mineral exports also grew by 55 percent• Agriculture-3.8 percent• Industry 24.9 percent • Services 71.3 percent• unemployment rate was 5.192 percent

Economy watch.(2012).Australia Economy. Retrieved from: http://www.economywatch.com/world_economy/australia/?page=full

COMPETITIVE ANALYSIS

Australia

Australia is a major competitor as for the agriculture industryis also a growing. It’s a fast growing industry and tourism countrywhere people love to visit and work.

Economy watch.(2012).Australia Economy. Retrieved from: http://www.economywatch.com/world_economy/australia/?page=full

COMPETITIVE ANALYSIS

UNITED STATES

• GDP 15 trillion dollars

• Growth rate 1.5% (2011 est.)

• Agriculture: 1.2%

• Industry: 22.1%

• Services: 76.7% (2011 est.)

Central intellegence agency.(2011). The world factbook. Retrieved from:https://www.cia.gov/library/publications/the-world-factbook/geos/us.html

COMPETITION ANALYSIS

UNITED STATES• Farming, forestry, and fishing 0.7% manufacturing, extraction,

transportation, and crafts: 20.3%

• Managerial, professional, and technical: 37.3%

• Sales and office: 24.2%

• Other services: 17.6%

Central intellegence agency.(2011). The world factbook. Retrieved from:https://www.cia.gov/library/publications/the-world-factbook/geos/us.html

COMPETITION ANALYSIS

UNITED STATES

With all the similarities in the laws and government regulations,The United States is a major competitor. The United States has astrong agriculture industry and very advanced technology that

has been increasing the country’s GDP.

COMPETITION ANALYSIS

RED CROSS• The Red Cross is a major competitor, for they also do

volunteer work abroad• Red Cross helps countries that had major disasters and need

help to recover• Raise money and awareness• Mission to improve lives• Independent

Service Plan

Service mode: ability to help international students or others make a difference in New Zealand by volunteering.

Process: apply within Basecamp offices in Canada and set up contract to work in New Zealand

Pricing: has yet to be established due to unattainable research. Basecamp average price is $2595.00

• Country of Origin Effects– Main products New

Zealand could offer people coming to Basecamp would be: breath taking scenery, technology free culture, new architecture, untouched landscape.

Service Plan

• Challenges of Marketing a Service Abroad:– Current tribes and cultures may not be willing to

share land– Cultures may not like having another countries

business “disrupting the peace” of their current environment

– Laws and regulations– Government corruption

DISTRIBUTION

• Distribution channels help the New Zealand market grow by 5 billion in technology exports.

• Tourism has helped build a distribution relationship with New Zealand.

• New Zealand currently does not have a grey market, as so all products and services provide a positive and beneficial outlook on the country.

• A website is already set up for North American and European students who would like to register for this.

• We are going to make this website registrations accessible to anyone within our target market.Distribution channels. (2009). New Zealand. Retrieved from: http://www.keanewzealand.com/new-zealand/news/using-distribution-channels-grow-market-share

Advertising Strategy

• Basecamp should keep all advertising simple in this country.

• General language is English but many tribes have a broken/ adapted English

• Positioning Difference: one of the first businesses to do this in New Zealand. We promise the best cultural and educational experience possible.

Advertising Strategy• Where:

– Any big countries such as Canada, United States, and Europe, who have a disposable income and willing to spend the $3000 on this trip and experience.

– Post-secondary schools and high schools are the perfect place to reach our target market: students

• When– During the school year and as soon as the school year is about to end. So

September – June.• Why

– Students are at the perfect age where they want to experience new adventures and have no major responsibilities such as mortgage or children that are holding them back from these kinds of trips.

• Who– Students with a disposable income and the ability and will to volunteer and

experience something new in a new culture.

Challenges in Advertising Strategy

Challenge Solution• Set a goal and make sure to

reach your target

• With the right research, this problem can be avoided

• Set up advertisements closet to the biggest area and reach of target market at lowest cost

• Not enough people register

• Advertising to the wrong target market

• Not being able to reach proper target market

S.W.O.T

S.W.O.T

Based on the opportunities that are available for New Zealand to explore and expand, there is a high chance of Basecamp to be successful in New Zealand. With village development and expansion allows for more citizens to have more jobs and provide shelter to those who are poor. Basecamp could not only help with the village expansion but also improve the education of the citizens. Basecamp can help further the development of the agricultural development and integrate technology advancements to produce innovated idea and structure to improve the economy.

CONCLUSION

In conclusion, we have decided that New Zealand is a great opportunity for business. The high level of business freedom and labor freedom provides great opportunities for new business. Citizens also have a high monetary freedom rate, which means they are able to spend their money on what they need and want. The education system is highly developed so educated workers are available. Most employees work with agriculture due to the seasons and very fertile land. So any business with any kind of agricultural requirements will succeed efficiently. New Zealand also has similar laws regarding customers, businesses and their employees as Canada, so an adjustment would not be necessary for our employees to work there.