What a successful organization consists of Essay Example

to fade. To connect it with the Sydney 2000 Olympic Summer Games, we have integrated an Olympic theme into the additive known as Oceana Gold, Silver, and Bronze. The color of the additives will correspond to gold, silver, or bronze based on the specific sunscreen purchased. Furthermore, each color is available in different levels of sun protection factor (SPF): SPF4, SPF8, SPF15, and SPF30 (with SPF4 offering the lowest level of protection and SPF30 providing almost complete sunblock). Oceana is a water-resistant sunscreen that does not leave behind a greasy residue and contains ingredients such as aloe vera gel, vitamin E, and is paba free.

The motivation behind selecting this product is the elevated occurrence of skin cancer in Australia. Skin cancer rates have been rising due to environmental factors resulting from human activity. Australia, renowned for its abundant sunshine and relaxed lifestyle, is confronting a serious issue with sun exposure. It presents an optimal market for sunscreen as two-thirds of Australians will experience skin cancer at some stage in their lives. Additionally, half of Australians below the age of fourteen already exhibit signs of skin damage.

According to Appendix A, Australians have the highest rate of skin cancer globally, with around 140 thousand new cases annually. When considering cultural factors related to entering the Oceanic market, Australia's seven states resemble those of the United States. This similarity includes English-speaking populations, high literacy rates, advanced infrastructure, substantial tourism activity, and supportive interstate commerce laws.

These elements are what make this market an easy entrance for our product.

Tahiti

This territory is part of the French Polynesian Overseas territory. This territory falls under the French Republic guidelines of government. Some aspects

of this territory have autonomy. Tahiti's principal trade imports come from Australia, France, Germany, Japan and New Zealand. They export mainly to France, New Caledonia and (limited) the United States.

The accessibility of Tahiti's market is due to its reputation as a tourist destination and its primary import and export activities. Its geographical location, climate, and infrastructure also contribute to the ease of distribution and market entry. Despite French being the main language, cultural adaptation to English products allows for standardized production utilization. New Caledonia shares a similar situation as it is part of the French Overseas Territory governed by French court and political systems. It is represented in the European Parliament and primarily imports goods from Australia, France, Germany, Japan, and the United States.

Fiji has positioned itself as a prominent exporter to France, Germany, Japan, and the United States. It boasts comparable infrastructure, climate, and tourism to Tahiti, making it conveniently accessible to this market and enabling standardization of product introduction. Furthermore, Fiji's governance system resembles that of the English Parliament. As for imports, Fiji primarily sources goods from Australia, Germany, Japan, and New Zealand.

Due to its well-developed infrastructure, trade routes, tourism, and favorable climate, our product is suitable for Fiji. Fiji exports mainly to Australia, Germany, Japan, and New Zealand. Furthermore, English is the primary language spoken in Fiji, making Oceana a standardized product. It is important to mention that all these islands and countries share common religions including Australia and New Zealand.

Several religious practices are observed in Australia, such as Catholicism, Protestantism, Islam, and indigenous island beliefs. Concerning intellectual property regulations, we have established a partnership and successfully obtained our

license. Furthermore, we are currently undergoing the patent application process for three coloring agents: gold, silver, and bronze. The exclusivity of this patent will be valid for five years before it is eligible for renewal.

Our product is called Oceana Gold, Oceana Silver, and Oceana Bronze. The trade agreement between Australia and New Zealand is known as ANZCERTA (Australia New Zealand Closer Economic Relations Trade Agreement). ANZCERTA has been in effect since 1983 and has undergone significant changes in industrial and agricultural trade, replacing NAFTA. The establishment of free trade between these countries has greatly contributed to the rapid growth of global exports. At present, efforts are being made to enhance air transportation and expand trade legislation.

The objective of ANZCERTA is to establish a consolidated trade body that represents a cohesive economic front. Over the next decade, their aim is to maintain dedication to the same economic objectives and effectively compete with the Asian Pacific region by leveraging their alliances with APEC (Asian Pacific Economic Cooperation), a well-known coalition of 18 countries in the southern Pacific region. The leaders of these nations convene regularly to explore opportunities for enhancing free trade and fostering a more inclusive atmosphere.

Since 1989, Australia has actively participated in this alliance. A major advantage of Australia's involvement is the diverse range of economies represented, including both underdeveloped and industrialized countries. This presents an opportunity to market our product to a variety of markets. Additionally, discussions at these meetings cover important topics such as skin cancer and environmental issues, which are of concern to all leaders from different governments.

APEC aims to achieve free trade as already established by GATT.

Political risk

There is no risk of government policies or parties overpowering the government, thus expropriation is not a significant concern. Concerns about nationalism are also unfounded as Australians aspire for the "American good life." Our national image reflects positive relations between both countries. When a foreign company decides to do business in Australia, they have various business structures to choose from, such as representative offices, branches of parent companies' subsidiaries, sole traders, partnerships, and joint ventures. Joint ventures in Australia are a common business practice, with slight differences in structure compared to the United States, but still understandable for American investors.

An unincorporated joint venture can be referred to as "contractual" since it does not create a separate entity. There is no allocation of shares for payment, making it similar to a partnership. On the other hand, incorporated joint ventures are companies where shareholders do not have rights to the company's assets but participate in distributed dividends without sharing losses. Legal restrictions are minimal, and private companies can continue operating as long as they adhere to established ethical business codes. All companies registering in Australia are subject to their corporate law jurisdiction. Hybrid joint ventures can be formed to meet the specific needs of each participant.

After thorough review, we made the decision to enter into an unincorporated joint venture with a reputable company. Our Australian partners have high expectations when it comes to punctual delivery, product warranties, and effective advertising and promotions. They are known for their strong focus on quality and discerning choices. Opting for a joint venture allows us to minimize initial investment and operating

costs, reduce liability and risk, and smoothly establish a presence in the market through a company that is well-versed in the local culture and infrastructure. Our partner company is F.H.

Faulding ; Company Limited, located in Parkside, South Australia, Australia, is capable of fulfilling our company's production and distribution objectives. Moreover, they share our corporate ideals and values. F.H. Faulding has a proven financial track record of 11 years, demonstrating success in various aspects of production management, distribution, and establishing customer trust. With their current assets and ambition for growth and development, they are highly appealing to Sun Cosmetics, Inc. as an unincorporated joint venture partner for Oceana.

The location of our joint venture partner is strategically important for the distribution of our product. Our partner's established distribution sources will be utilized. Distributors, as independent agents, purchase products from an agent and deliver them to wholesalers and/or retailers. In Australia, it is common for distributors to request exclusive geographic rights in view of the market size.

Australia's distribution and sales channels are similar to those in other developed nations. These channels include direct sales, the use of agents, and direct investment. The responsibilities within these channels include representing Oceana in good faith and maintaining accurate accounts. Our joint venture partner has established various methods of distribution, and we will utilize all available options. Through our direct and distributor sales, we aim to achieve the market share Oceana deserves and meet the needs of customers in Australia. Additional information can be found in Appendix B.

There are numerous major ports scattered across the continent, which can be easily reached through various shipping methods, including air transportation when applicable.

The distribution of size and population locations is quite uneven, with key population areas mainly concentrated around the outer perimeter of the country where major cities' airports and seaports are situated. The transportation and communication systems in place include an established railway network spanning 40,478 km, a total of 873,872 km of highways, and extensive telephone communication systems that connect both internationally and domestically.

Radio broadcast frequencies, such as 258 am and 67 pm, are available to 134 broadcast stations (National Trade Databank). All raw materials required will be sourced and procured locally from ICI Australia Pty Limited's botany plant. ICI Australia is a well-established manufacturing facility situated in Castle Hill, South Australia, specializing in the production of 50 organic and non-organic chemicals.

This facility is responsible for manufacturing our sunscreen, guaranteeing on-time inventory delivery and environmentally-friendly usage. Our sunscreen products are formulated with octyl methoxycinnamate, oxybenzone, octyl salicylate, titanium dioxide, octocrylene, and undisclosed ingredients that provide gold, silver, and bronze coloring agents. The demand for sunscreen products is growing due to the high prevalence of skin cancer and damage in this region.

After conducting marketing research, we have identified three specific target markets: tourism, teenagers/young adults, and parents with young children. These markets not only have the highest demand for our product but are also financially capable of making purchases quickly, allowing for rapid market penetration and diffusion.

In terms of geography, our focus is on the Australian states, New Zealand, Tahiti (an overseas territory of France), New Caledonia (also an overseas territory of France), and Fiji. It's important to note that limited secondary data is available for these target markets.

Following the initial market distribution in this region,

we will collect primary data.

Australia's direct marketing industry is in its early stages of development compared to the United States. However, due to the country's economic levels of income and infrastructure, this market is highly accessible and effective. Australian citizens desire to be "Americanized", especially in terms of television advertising and technological advancement. This makes direct marketing a viable means for reaching our target audience. The introduction of pay television also allows consumers to shop conveniently. In terms of promotions, trade centers and shows are important, and mass media platforms like newspapers and television advertisements are effective. Our research indicates that the Olympics in 2000 presents the ultimate marketing opportunity for entry into the Australian market.

By utilizing a direct market approach, F.H. Faulding has various promotional and advertising methods available. One notable opportunity is the sponsorship of the Sydney 2000 Olympic Games. By selecting an Olympic team or spokesperson, we can market and advertise our brand through their official merchandise such as T-shirts, hats, and more. This approach would result in global advertising and strong public relations as the games draw nearer. In addition to our product's name and unique features, we have partnered with Ken Done, a renowned painter based in Sydney, to design our packaging and develop other promotional materials such as beach bags and towels.

Sun Cosmetics aims to complete all contracts and legalities by mid-1997 and commence product distribution in late 1997. Our strategy involves introducing our product line in Sydney, a highly populated area and a major tourist destination. After generating awareness and recognition in the local market through advertising and promotion, we will actively participate in Olympic sponsorship. As

part of our promotional efforts, we will distribute free samples beforehand to establish brand recognition. In 1998, our expansion plans include entering markets in Melbourne, Brisbane, the Great Barrier Reef region, and New Zealand's South Island.

By the end of 1988, we will be preparing for our expansion into Perth, New Zealand's North Island, and Tasmania in 1999. Our final move into oceanic regions will take place in the year 2000, when we will enter Fiji, New Caledonia, and Tahiti to complete our market rollout. This timeline allows us to conduct primary research on these outlying countries/territories with limited secondary data. Coinciding with the Sydney Olympic Games in 2000, we will initiate our global presence and expand our market to other communities worldwide. The current demand in the market is rapidly increasing, with our competitors already capturing over 20% in market shares. Given Australia's high quality standards and the prevalence of skin cancer, our product is expected to quickly gain a significant market share. The retail selling prices for our product are $8.50 (U.S.) in urban areas and $10.50 (U.S.) in rural areas for a 90 ml container.

Overall success in entering this region may depend on our ability to implement a suitable alternative or contingency plan in case of major setbacks. After analyzing corporate profiles and conducting market research, we have determined that the most effective contingency plan is to establish a joint venture with Hoechst Australia Ltd. in Melbourne, Victoria, Australia, and utilize their established production and distribution system. Additionally, we have coordinated with an alternative supplier of raw materials in case the need arises. This plan can serve as a substitute or supplement to

the primary source if sales exceed projections or other issues arise.

In summary, statistics have revealed that the Oceanic Region has the highest prevalence of skin cancer and sun-related damage globally. Both residents and tourists are highly aware of and concerned about this issue, creating a significant demand for our sunscreen products.

Our target markets include tourists, teenagers/young adults, and parents with young children. These groups are most directly affected by the sun. Currently, entering this market poses a low risk because there are no language, cultural, or trade barriers. Additionally, the market is not yet saturated and our initial expenses and risks are limited due to our joint venture. Our goal is to capture a significant portion of the market share in this region by 1999 and make our global debut during the summer Olympic games in Sydney in the year 2000.

Appendix A

Here are some facts about skin cancer itself. There are three basic types of this disease: Basal cell carcinoma, squamous cell carcinoma, and malignant melanoma. Basal cell carcinoma and squamous cell carcinoma can cause disfiguring to the body but are not fatal. Malignant melanoma behaves like an internal cancer. It starts as a mole and can spread to other parts of the body. The sun's ultraviolet rays are the most significant between 11 AM and 3 PM.

During Australia's summer months, the majority of children and outside labor workers are exposed to the sun. In Darwin, only 9 minutes of safe sun time can pass before damage is caused. In Brisbane, it is 11 minutes, in Perth it is 10 minutes, and in Sydney and Adelaide it is about 12 minutes. To address this concern,

researchers have created a T-shirt with ultraviolet sensitive paint on the front. When exposed to the sun, the picture on the T-shirt changes color, indicating the presence of radiation that cannot be seen by the human eye.

According to predictions, if society fails to address this issue, by 2050 people will not be able to go outside in the sunlight. Australia has introduced the "slip slop slap" slogan as a way to encourage skin protection. This involves wearing protective clothing, applying sunscreen, and wearing a hat. In Appendix B, there are various resources that provide information on the potential market for distribution.

The services can be found by contacting the local U.S. Dept. of Commerce distribution. 1) Agent distributor search (AD) The US commercial service will find and evaluate potential Australian agents and representatives for US companies. CS Australia will provide information to companies that may be interested in our product.

If the company responds, the Customer Service (CS) will create an opportunity for direct contact. This is part of the CRS Gold Key Service, which allows US company representatives to explore the different available services. These services include market orientation meetings, research, distributor searches, and screening. The CRS Gold Key Service is highly effective in providing a comprehensive understanding of the business landscape in a particular country.

The Customized Market Analysis (CMA) assessment is crucial for us as joint venturers because it provides us with up-to-date data and monetary trend information for product potential laws. CS Australia actively engages in trade shows and other trade events where they showcase actual catalogs or products. This cost-efficient new entry program allows them to test the Australian market effectively. They also

establish contact with specific American firms in the industry who connect them with Australian financial institutions. To target a specific industrial market in Australia, they collaborate with local agents and distributors. Interested participants are then contacted directly. Moreover, CS actively participates in trade missions, trade events, and the trade opportunity program (TOPS).

This service offers trade leads for manufacturers seeking representation, investment, licensing, and joint ventures. CS also provides market research reporting and the commercial USA service. The market research reporting keeps track of major industrial investments, projects, and policy developments. Commercial news UA provides updates on new U.S. events.

There are various products available for the export market in Australia. About 1,000 potential agents and distributors receive this distribution information. This service also helps identify possible joint venture participants. These services are crucial in terms of potential market distribution resources.

Resources:

1. Austrade Australian Trade Commission 630 Fifth Avenue, Suite 420 New York, NY 10111 Nicholas Doumani (212)408-8473
2. Bureau of Tourism Research Cambridge Encyclopedia of Australia Press Syndicate University of Cambridge 1994 CD ROM -- U.S. DOC,
3. International Trade Administration March 1996 CD ROM --
4. National Trade Data Bank February, 1996 Europa World Year Book 1995 London:
5. Europa Publications Limited Volumes 1 ; 2, Pages 1236-1237 and 1246-1247. Internet: HTTP://WWW.TELSTR.COM.AU/META/AUSTRALIA.HTML History