Please note! This essay has been submitted by a student.
This feasibility report highlights and explains the opportunities for Vampire Penguin to penetrate the Australian market with its desserts. This report outlines Vampire Penguin’s corporate goals, situational analysis, competitive audit, SWOT analysis, marketing objectives, market segmentation profile, marketing strategies, implementation and evaluation analysis from January 2020 to March 2020. Vampire Penguin should use this opportunity to establish itself within Australia, which currently has a rising dessert culture (“Rise Of The Sweet Stuff: Lessons From The Dessert Experts” 2016). This will give Vampire Penguin the chance to expand in a sustainable manner and showcase to the Australian market the scrumptious desserts that have been inspired by the passion and creativeness of dessert makers in Taiwan. For James and Hannah to continue (as it needs your content to finish this paragraph (around 150-200 more words).
Vampire penguin is a dessert brand with most stores operating in California (United States of America) that draws inspiration from Taiwanese shaved ice to create delicious shaved snow desserts. The brand also has a store in Manila (Philippines) and is planning on opening new stores in other location within the United States of America. The store also operates from noon to nine or ten o’clock in the evening. Given the success and popularity of Vampire Penguin brand and desserts in the United States of America, and their willingness to expand into overseas markets in Asia, this feasibility report will suggest the brand to expand into Australia.
This feasibility report will also outline the business related impacts of the brand entering Australia. Given Australia’s status a multicultural society, much of the population is ready to try new foods from other nations that have different tastes, smells and ingredients that would they would not be traditionally exposed to. The average person in Australia has an intake of 95.6 grams of sugar every day, which ranks it as one of the highest sugar-consuming nations in the world (Pariona 2017). Thus, this data indicates that Australians love to eat foods that contain high amounts of sugar, and obviously desserts would fall under this category.
Therefore, we can assume that the taste palate of Australians is well suited for the desserts that are offered by Vampire Penguin just on this fact alone. It is evident that brands that can disrupt the industry and transform the consumer’s eating experience are highly likely to be successful in the Australian market (“Australia’s Desserts Sector: A Snapshot [Part One]” 2014). This can be seen with San Churro, who came into the Australian market from abroad and gave consumers a totally new way to enjoy eating chocolate with Spanish donuts. Vampire Penguin is in the perfect position to disrupt the Australian market with its shaved snow and desserts given its luxury and exotic touch, which is derived from its unique foreign creation.
Australia is widely sees itself as a multicultural society, with people bringing their foods, behaviours and culture from Europe, Asia and elsewhere. Along with the rise in the liberalisation of economies and the trend of internationalism, people are more open than ever to having new experiences that are new and reshape the current social conventions. The specialty dessert sector is also projected to bring about 340 million Australian dollars by 2020, having grown 2.7 percent at an annual compound rate since 2014 (“Australia’s Desserts Sector: A Snapshot [Part One]” 2014). Therefore, the Australian market can be said to be a good choice for Vampire Penguin to penetrate as it has a high chance of mesmerising the sugar-loving and internationally minded Australian consumer.
At this current moment in time, Vampire Penguin does not have a mission statement. This is one of Vampire Penguin’s weaknesses as a brand and will be discussed further in the SWOT analysis. Therefore, this report has suggested an alternative mission statement for the time being: “Inspired by Taiwanese shaved ice, Vampire Penguin is passionate about creating the most extraordinary and exotic desserts with the purest and most delicious of ingredients imaginable. It is our mission to create a global presence for our brand and forge genuine and community-based relationships with all people who share our love and passion for the most creative and scrumptious of desserts.”
Australia is widely considered as a stable liberal democracy that values freedom of religion, speech, press and assembly. Although Australia’s government institutions and practices bear strong similarities with those of North America and Britain, they are in all respects Australian (“Australian Democracy: An Overview” 2018). In the Democracy index of 2017, conducted by a British company called the Economist Intelligence Unit, Australia was ranked as the eighth most democratic country in the world (“EIU Democracy Index 2017” 2017). In the 2018 report of Index of Economic Freedom, which was put together by The Heritage Foundation and The Wall Street Journal, Australia was considered “free” in terms of doing business and was ranked fifth in the word (“2018 Index Of Economic Freedom” 2018).
There is a strong correlation between countries that have long been established as stable, democratic and transparent with respect for the rule of law and human rights and having a favourable business environment, as this environment tends to allow business to conduct their operations more peacefully. Countries with authoritarian governments are far more likely to be repressive when it comes to business opportunities and ease of doing business. Countries that are less free generally have less liberalised economies, more red tape, more restrictions on trade and often do not meet their contractual obligations (“Democracy Is Good For Business” 2015).
Furthermore, doing business in authoritarian countries also carries other risk to business. For example, if a business operating in an authoritarian country carelessly makes a political mistake, it could spell tremendous damage to the business itself and the people working there. Such consequences could include a business shutdown or the prosecution of business owners without a fair trial. This makes doing business in democratic countries more a lot more stable and safer. This means that for Vampire Penguin, Australia is a country where business and activity can be done more freely and openly relative to other nations, and therefore, is an ideal environment for doing business.
Australia is one of the safest countries in the world for Vampire Penguin to do business in. In 2017, Australia was ranked the twelfth safest country in the world according to the Global Peace Index (“Global Peace Index 2017” 2017), which measures how peaceful nations are comparatively. This makes Australia the most peaceful English-speaking country with the largest economy. This is in stark contrast with the United States of America, where Vampire Penguin has already established itself. The United States of America is ranked one hundred and fourteenth on the Global Peace Index (“Global Peace Index 2017” 2018), which makes it a far more dangerous place to do business than Australia.
Therefore, Vampire Penguin can expect to have a much more stable and peaceful environment than they do in the United States of America. Furthermore, Australia has had little political violence in recent times (“Political Violence” 2018). That means that for Vampire Penguin, the chances of being faced with a politically violent situation are very slim. Australia seldom has political demonstrations that spiral out of control into violence. In these situations, businesses may be partially damaged or destroyed by vandals in an ongoing political demonstration.
Although Australia is relatively peaceful in terms of political violence, there is still a “probable” threat of terrorism occurring in Australia today, according to the United States of America’s Homeland Security National Threat level. This is a result of the ongoing geopolitical crisis involved with the Middle-East and the terrorism that certain groups from that region have been exporting not just to Australia, but many other nations across world too. Over the past four years, Australia would have faced fifteen terror attacks if the perpetrators had not been discovered by police.
The most notable terror attack in recent times involving a business, which was a cafe similar to Vampire Penguin, was the Lindt cafe siege in Sydney, 2014. This event shows that businesses who have even had nothing to do with geopolitics can still be the target of terrorism. A report from the United States of America’s Homeland Security said that Australia had the third highest chance among Western countries of encountering a terrorist attack that is linked to the ongoing geopolitical crisis in the Middle-East. Australian National Security has stated that they have strong evidence, evaluated by their agencies, that certain groups and individuals have the desire and potential to carry out terrorist attacks in Australia (Palin 2017). Due to this, Australia, for the current time, has a relatively high chance of encountering a terrorist attack compared to other Western countries, and therefore, this is a risk Vampire Penguin should consider.
The legal system which Australia operates under is known as ‘Common law’. Australian Common law derived the United Kingdom and has also been heavily influenced by other Commonwealth nations, as well as the United States of America. Australian courts also operate under an ‘adversarial system’. This means that in court, two opposing parties argue their case, and the judge or magistrate takes authority. Furthermore, the judge does not deal with the witnesses in a direct manner. Instead, the judge hears the arguments made by both parties and conducts a dual-analysis of the witnesses from both sides of the court and then concludes to resolve the case (Gordon 2018). Due to Vampire Penguin currently having stores operating in the United States of America, understanding Australian Common law should not be too difficult as it has similarities with the laws they as a company have already dealt with.
If Vampire Penguin is to enter Australia, it must adhere to Australia’s food safety standards. Therefore, Vampire Penguin should be aware of the fundamental laws and regulations to do with Australian food businesses. Australia’s food safety standards are overseen by the Australia New Zealand Food Standards Code, the Food Standards Australia New Zealand Regulations 1994 and the Food Standards Australia New Zealand Act 1991. The two most important organisations that oversee food safety standards across Australia are the Australian Business and Information Service and Food Standards Australia New Zealand.
In addition to this, there are numerous state and territory laws, regulations and food acts that may be relevant to Vampire Penguin’s business also. These pieces of legislation would be imposed on a business by the local council in its area. Requirements for notification and licensing depend on which state or territory a business operates in. Broadly speaking, all food businesses are required to give notice to the local council in its area. In the state of New South Wales, businesses also have a probable chance of needing Food Safety Supervisor but will not need a food safety license unless a business is producing food for people who are vulnerable or that contains raw foods (McKnight 2016).
As a developed nation which is a democracy and has an established judicial system, Australia has strong intellectual property laws. This is reassuring for companies such as Vampire Penguin if they choose to enter the Australian market. IP Australia is an organisation controlled by the Australian government and its role is to protect intellectual property rights and legislate laws and regulations to do with intellectual property. Australian intellectual property law provides for patent, trademarks, domain name, design and copyright protection (“IP Legislation | IP Australia” 2018).
Customer Protection Laws
Laws that revolve around protecting customers are made for conserving and shielding the rights of customers, as well as their well-being and security. Customer protection laws protects customers in terms of the material and synthetic features of a good, advertising and marketing and also the cost fairness (“An Introduction To The Australian Consumer Law – Australian Consumer Law” 2018). Laws made for customer protection in Australia ensure that customers are shielded from faulty products, services and fraudulent behaviour from producers, distributors and sellers (“Consumer Guarantees” 2018). Australia has also recently strengthened its customer protection laws. In 2015, a review of Australian consumer laws was conducted by Consumer Affairs Australia and New Zealand, and they found that the penalties for misconduct were insufficient.
Therefore, as of September 2018, harsher penalties for misconduct against customers were put in place (Edgar, Jacobson and Zhang 2018). It is imperative that Vampire Penguin is totally conscious of all the things needed to ensure that customers in Australian market are delivered secure and appropriate food. To make sure that there are no legal issues, Vampire Penguin must ensure that the entirety of the information that is transferred to customers, for instance, chemicals inside the food or ingredients, where they were sourced from or impacts on well-being are completely truthful and clear (“Chemicals In Food” 2018). It is also essential that Vampire Penguin does not engage is false advertising and should make sure that all their marketing is done in an honest and transparent way.
Vampire Penguin will also need to communicate and liaison effectively with suppliers to make sure that the food and ingredients they are importing contains exactly what the packaging claims to hold. Vampire Penguin is expected by its customers to ensure that stakeholders associated with its supply chain are transparent and socially responsible. Finally, customers are properly safeguarded and the cost of goods in different sectors are properly kept to a reasonable amount when price control is appropriately and effectively implemented. Since Vampire Penguin will be actively participating in the food sector the company is legally obligated to comply price control laws and regulation and be conscious of the suggested price level for the sale of their shaved ice and desserts (“Setting Prices” 2018).
Australia’s economy is robust and strong and has grown and modernised substantially over the past thirty or so years (Battellino 2018). Australia has a mixed economy, meaning that within the economy there is a combination of private industry and social enterprise. Australia’s liberalised mixed economy has made Australia into a rich society where the gross domestic product per capita is relatively high and the amount of poverty is significantly low. Australia’s mixed and open market’s biggest industries by labour occupation are services, construction, manufacturing, agriculture and mining (Swanepoel et al. 2014). The services industry accounts for most of the nation’s economy, however, the agriculture and mining industries also account for a large size of the nation’s economy.
Australia’s industrialisation, mass manufacturing, mineral resources, technological innovations and private industry have all contributed significantly to this nation being as rich as it is today (Lang’at 2018). The Australian Securities Exchange (ASX) is the cornerstone of the Australian economy. The Australian Securities Exchange controls and manages all trading practices within the nation and is a major holder of financial capital in Australia (“History” 2018). Australia’s economy has remained strong and prosperous over the years due to having a relatively transparent and well-functioning government, and due to having an abundance of minerals inside of its territory, particularly iron ore.