Slide 1

New Zealand International Market Entry Submitted By: Jen Spinozzi and Ashlie Morton

Agenda

Overview of New ZealandOverview of BasecampPESTLE AnalysisTarget Market AnalysisGlobalizationMarket EntryCompetitive AnalysisService PlanDistributionAdvertising & Promotion StrategySWOT AnalysisConclusion

New Zealand

Island country situated in the southwestern pacific ocean.Only 4 million in population.Largest city is Auckland with a population of 370,000Government 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 differenceVolunteer programInternshipsLearn about developing countriesNetworkLearn culture and languages

Work with:Local governmentsNon-governmental organizationsInternational DevelopmentLocal Grassroots

PESTLE ANALYSE

DEMOGRAPHICSPopulation: 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

PSYCHOGRAPHICFreedom 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

GLOBALIZATIONFDI: $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

GLOBALIZATIONWell-Educated Advancing technologyHigh population of educated citizens who speak EnglishTrade agreements to export services and productsNew 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

GLOBALIZATIONProductsAgriculture SectorLeading country in exporting dairy products 50 % of total exports are from dairy, meat and wool New Zealand supplies over 90 countries with meatSheep (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

GLOBALIZATIONAccording 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 EntryInternational Trade TheoryWe decided to go with Heckscher-Ohlin Model for our international trade theoryNew 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 TheoryNew Zealands 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.

REFERENCE: AgriBusiness LTD. (2012). Investing in New Zealand Property. New Zealand: Value of New Zealand Export's. Retrieved March 27, 2012, from http://www.agribusinessltd.com/acatalog/About.html 14

Market EntryMarket Entry StrategyStrategy: AllianceNew 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 isnt farmed. livestock such as sheep dominates most of this land. This doesnt 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.

REFERENCE: AgriBusiness LTD. (2012). Investing in New Zealand Property. New Zealand: Total New Zealand Land Use By Area. Retrieved March 27, 2012, from http://www.agribusinessltd.com/acatalog/About.html 15

COMPETITIVE ANALYSISAustralia

Fast growing economy in the worldMineral exports also grew by 55 percentAgriculture-3.8 percentIndustry 24.9 percent Services 71.3 percentunemployment rate was 5.192 percent

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

COMPETITIVE ANALYSISAustralia

Australia is a major competitor as for the agriculture industryis also a growing. Its 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 ANALYSISUNITED 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 ANALYSISUNITED STATESFarming, 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 ANALYSISUNITED 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 thathas been increasing the countrys GDP.

COMPETITION ANALYSISRED CROSSThe Red Cross is a major competitor, for they also do volunteer work abroadRed Cross helps countries that had major disasters and need help to recoverRaise money and awarenessMission to improve livesIndependent

Service PlanService 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 ZealandPricing: has yet to be established due to unattainable research. Basecamp average price is $2595.00 Country of Origin EffectsMain products New Zealand could offer people coming to Basecamp would be: breath taking scenery, technology free culture, new architecture, untouched landscape.

Service PlanChallenges of Marketing a Service Abroad:Current tribes and cultures may not be willing to share landCultures may not like having another countries business disrupting the peace of their current environmentLaws and regulationsGovernment corruption

DISTRIBUTIONDistribution 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 StrategyBasecamp should keep all advertising simple in this country.General language is English but many tribes have a broken/ adapted EnglishPositioning Difference: one of the first businesses to do this in New Zealand. We promise the best cultural and educational experience possible.

Advertising StrategyWhere: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: studentsWhenDuring the school year and as soon as the school year is about to end. So September June.WhyStudents 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.WhoStudents with a disposable income and the ability and will to volunteer and experience something new in a new culture.

Challenges in Advertising StrategyChallengeSolutionSet 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 costNot 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.

CONCLUSIONIn 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.

!!!!!!

!!!!!

!!!!!!!

!!!!!!!!

-Southern Hemisphere -North is subtropical -Summer: 20-30c -Winter: 10-15c -Warmest months are December, January, and February

S

Parliamentary Democracy Prime Minster is John Key Economic Freedom Rate: 82.1 Freedom From Corruption: 93.0 Open to Global Trade and Investments Investment Freedom:75.5 Trade Freedom:86.8

GDP: $117.8 Billion (1.5 Growth) FDI: $560.7 Million

CPI: 2.3% Employment: 63.9%

Unemployment: 6.5% Exchange Rate: 1.6%

GST Tax: 15% No Capital Gain Tax Top Income Tax: 33% Top Corporate Tax: 28% Government Spending: 45.0 Taxes: Every citizen in New Zealand including Migrants require having an IRD number-allows you to pay taxes The economy is fragile and is receiving pressure of inflation. Business Freedom: 99.9 Labor Freedom: 89.9 Property Rights: 95.5 Monetary Freedom: 85.2

Population growth rate: 0.882 (2011) Age Distribution: Chart Health Care: Supported by Ministry of Health. Districts ran by District Health Board. Everyone is eligible if the have a resident visa for publically funded health. Education: Early childhood, primary & secondary, tertiary education, Maori education, Pacifica education, special education and international education. Social Mobility: suffered sever increase in inequity during 1979-97. Most small cultures live off land. Majority of people are poor. Employment Patterns: Season due to patterns in horticulture. Cultural Taboo: uncivilized cultures; official languages are English and Maori.

!

Antitrust Law: 1996 New Zealands competition laws, which are enforced by the Commerce Commission. Consumer Law: All businesses are required to treat all consumers fairly. Discrimination Law: Entitled to all the rights and freedoms set forth in this Declaration Employment Law: minimum wage:16yrs of age and over 13.50$/ hour Health and Safety Law: The object of the Health and Safety in Employment Act 1992 is to promote the prevention of harm to all people at work, and others in, or in the vicinity of, places of work.!

High degree of automation. Take advantage of new technology areas in titanium, alloy powder and high temperature superconductors. Fast rate in technological changes in mobile, computer technology and sawmills. R&D activity is relatively low, total R&D is 1.30

New Zealand consists of two min islands: North Island & South Island. North has mountain range. Central consists of Volcanic Plateau. Southern Alps mainly farmland and plains. Disaster Quotient -High volcanic activity in central -Multiple yearly earthquakes all around New Zealand Infrastructure New Zealand's transport network is relatively modern. Of its 92,075 kilometers of roads, about 60% are paved. Over US$225 million was spent on road construction and maintenance in 1999. Private car is the predominant mode of transport. There are 3,973 kilometers railways running the length of the country. !

!

!!!

"#!$%#$&'()%#*!+,!-./,!0,$)0,0!1-.1!2,+!3,.&.#0!)(!.!45,.1!%66%51'#)17!8%5!9'()#,((:!;-,!-)4-!&,/,&!%8!9'()#,((!85,,0%,#(!.&(%!-./,!.!-)4-!R#)1,0!A1.1,(!

-,.!/'0!1)234!

T)4!@.$!"#0,U!

O,6.51