Marketing Strategy of New Zealand Food Business Companies in Japan

Abstract

The purpose of this paper is to explain how small and medium sized food business companies of New Zealand can expand into Japanese food market, following some big food business companies of New Zealand. The methods of the analysis are in two ways, one is a quantified trade analysis of food and beverages between Japan and New Zealand, and the other is a SWOT analysis that is based on the detailed interviews for 15 food business companies. The targets of the analysis are New Zealand food business companies that have branches in Japan. I focus on the competitive superiority and the marketing strategy of the companies. The results of the analyses are that the big companies' competitive superiorities are their monopoly power and pricing power. But they consider there is little merit to compete with Chinese cheap products, it is better to prevent the price battle. On the other hand, small and medium sized food business companies' amount of sales are very small, so they emphasis on the commodity character to enhance their competitive superiorities. And about marketing strategy, there is not so much of a difference between big companies and small companies. The key success factors are the strategy of increasing the added value, brand power, stable supply, not selling bargain, usage of NZ's "Clean and Green" image, taking patent, and matching marketing needs "health trend". And I find that promising new channels of sales are upscale supermarket stores. The conclusion is that small and medium sized food business companies can hold further business expansion in Japanese food market.