Investigating Foreign Market - Essay Example

?Marketing Introduction The region of Argentina promises to be a potential market for various types of food products like dairy products, vegetable proteins, cheese and starch products and other beverages. Export market for food products reached $25 billion in the 2009 period with the growth of supermarkets that shelves large amount imported food products. The Argentinean customers desire to use imported food products printed in Spanish and also desire a personalized approach in regards to the product markets. However the legislative conditions in Argentina are considered to be quite favorable for the formation of contracts with exporters and thereby helping in the trade of imported commodities (Nebraska, 2011). In this regard the paper tends to evaluate the potential market for cheese and cheese products in Argentina produced by an Australian firm Nivedo. Political Factors in Argentina The political factors in Argentina have largely improved from the previous periods that have helped bring about a regulatory climate helping in the growth of imported food products market in the region. In fact it is found that the market for the imported products pertaining to dairy commodities like cheese has largely grown up in the region. The tariffs relating to import duty have largely been reduced to help in the expansion of the market for imported cheese products. It is held that in the coming years the region of Argentina would gradually turn out to be a growing market for milk products in comparison to the international market. The markets pertaining to the Latin American countries are held to become potential zones for the products derived from milk as consumption for such is found to have increased by around 15 percent within a span of six years ranging from 2000 to 2006. Thus the political climate of Argentina is held to encourage the rise of import for milk products (Organization for Economic Co-operation and Development, 2002, p.95-96). Economic Factors in Argentina Economic factors in Argentina reflected a rapid decline in the production of milk due to the rise of economic recession in the region. The production of milk in the region is found to have reduced by around 4 percent during the 2002 period. Rise of recessionary climate in the region had led to the closure of many small and big firms producing dairy products and thus the demand for the milk products in the Argentinean customers failed to get met. The dairy farming activities suffered a huge setback as it gradually became converted into a subsistence type of economy. The large dairy companies started closing down on account of the rising operational cost pertaining to such. Thus in order to largely meet the needs of the consumers the dairy products like cheese and others had to be largely imported from other countries (Organization for Economic Cooperation and Development, 2002, p.95-96). Thus it is found that the economic factors in the region can be viewed as a trigger that would help in the growth of demand for Australian cheese products. Socio-Cultural Factors in Argentina The socio-cultural factors in Argentina, a Latin American country are viewed to enhance the demand for the dairy products like cheese. With the rise and development in the state of living for the people the population belonging to Argentina started demanding more innovative foods that would help in meeting their appetites and flavors. Moreover the development of farming activities carried out in the region on a large scale also happens to escalate the demand for dairy food products. The people living in Argentina thus tend to largely demand innovative products imported from westernized countries to satisfy their desires in an increasing manner. Further the people are also attracted by advertisements made in regards to cheese and cheese products through televisions and internet and thereby tend to purchase such products in an increased manner (Roest, 2000, p.257). Legal Factors in Argentina In terms of legal factors the production and marketing of cheese and cheese products are required to satisfy the regulations and the policies pertaining to food administration in the region. The production and marketing of such products are needed to pass the right labeling conditions where the branding of the same needs to be done effectively providing the right amount of information to the consumers about the manner of consumption and storage of such products. Moreover the livestock reared in the dairy farms must also be subjected to adequate treatment to help in the right maintenance of product quality. Several regulatory and administrative bodies operate in the region to help in the proper production of the dairy products (Hinkelman, et al., 2003, p.450). Demographic Factors in Argentina The demographic factors in Argentina have also largely prompted the growth of demand for dairy products in the region. The people living in Argentina pertaining to different demographic profiles pertaining to age, income and other factors like profession largely enjoy the cheese products produced by the indigenous dairy firms. Further the people basically in the young age groups enjoy the flavor of cheese in several westernized and Italian delicacies like pastas. The young age groups visiting restaurants and other food joints also tend to enjoy the flavor of imported cheese (Elena, 2011, p.23). Thus from the above study it can be said that the cheese products produced by the Australian firm Nivedo would rightly gain a place in the Argentinean market. Conclusion Nivedo, the Australian firm focuses on the production of cheese and cheese products and has gained a firm soil in the Australian market. However in the current period the firm focuses on gaining an entry into a potential foreign market like that of Argentina. In this regard, an analysis conducted reveals that Argentina tends to become one of the largest markets for the production and sale of cheese products. The economy and the consumer profiles of Argentina also tend to reflect an increasing demand for the cheese products. However the production processes of cheese and cheese products need to adequately satisfy the regulatory and administrative guidelines of the region to help in gaining an adequate market. The consumer demand in the region is also reaching maturity owing to the large scale advertisement reflected in the televisions and internet and thus demand cheese in the different products they consume. References Elena, E. (2011). Dignifying Argentina: Peronism, Citizenship, and Mass Consumption. University of Pittsburgh Pre. Hinkelman, E., et al. (2003). Importers manual U.S.A. World Trade Press. Roest, K. (2000). The production of Parmigiano-Reggiano cheese: the force of an artisanal system in an industrialised world. Uitgeverij Van Gorcum. Organization for Economic Co-operation and Development. (2002). OECD agricultural outlook: 2002-2007. OECD Publishing. Organization for Economic Co-operation and Development. (2002). Global trends in the dairy industry: outlook for the Baltics. OECD Publishing. Nebraska. (2011). Argentina. Retrived on Januray 8, 2012 from: http://proudtobuy.nebraska.gov/country_informational_sheets/argentina.pdf. . Read More