INTRODUCTION • Australia comprises of the mainland of

the Australian continent, the island of Tasmania and numerous smaller islands.

• It is the world's sixth largest country by total area.• Australia is the world’s 12th largest economy. • It has the world's 5th largest per capita income. • Australia's military expenditure is the world’s 13th

largest. • Australia ranks highly in many international

comparisons of national performance. • Australia is a member of the G20, OECD, WTO, APEC,

UN, Common Wealth, ANZUS & the Pacific Islands Forum.

COUNTRY HISTORY• Australia's first inhabitants: The Aboriginal people(50,000 -

60,000 years ago).

• 1640: Dutch are known to have explored the coastal regions .

• 1770: Captain James Cook is credited with Australia's discovery.

• 1788: The first European settlement in Australia.

• 1830: established as a penal colony with the no. of free settlers increasing.

• 1852: Transportation of convicts to the eastern colonies was abolished.

• 1868: Transportation of convicts to the western colonies was abolished.

Cultural analysis

Cultural Analysis

GEOGRAPHICAL SETTING

• Island continent• World's sixth largest country (7,682,300 sq km).• Latitude: 27°00' South • Longitude: 133°00' East • Capital: Canberra • Climate: temperate weather for most of the year.• Topography: i. Sandy eastern coastal plain ii. Eastern highlands iii. Central plains iv. Western plateau

SOCIAL INSTITUTIONS

I. FAMILY: no distinction between men’s and women’s work.

II. EDUCATION: Australia follows the three-tier model.

III. LITERACY RATE: Age 15 and above can read and write , 99% of population is educated.

SOCIAL INTITUTIONS

IV. POLITICAL SYSTEM: Two party system in which voting is compulsory.

V. LEGAL SYSTEM: • 9 legal systems( 8 state and territory systems &

1 federal system)• State and territory criminal laws that mainly

affect the day-to-day lives of most Australians.IV. SOCIAL ORGANISATION: Four tier structure

SOCIAL INSTITUTIONS

VII.RELIGION:

Column1

christianity 61.1%no religion 22.3%undeclared 9.4%buddhism 2.5%islam 2.2%hinduism 1.3%other religions 1.2%

LIVING CONDITIONS

• Diet and nutrition: i. significant percentage of Australians are

overweight and obese and suffer from conditions associated with diets of excess.

ii. Australia has the highest rates of skin cancer in the world

• Clothing:

LIVING CONDITIONS

• Sports

Cricket Rugby Phar Lap

LIVING CONDITIONS• Recreational Activities:

Beaches Outback Scuba Diving Skiing

Surfing Sailing Whale Watching Aboriginal Culture

LIVING CONDITIONS

• Social securities: refers to a system of social welfare payments provided by Commonwealth Government of Australia. These payments are administered by the Department of Human Services

• Health care: provided by both private and government institutions. The Minister for Health and Ageing, administers national health policy, elements of which (such as the operation of hospitals) are overseen by individual states.

LANGUAGE

• OFFICIAL LANGUAGE: English• LANGUAGES:

english 78.5%chinese 2.5%italian 1.6%greek 1.3%arabic 1.2%vietnamese 1%

ECONOMIC ANALYSIS

Population • Current population: 22,015,576 country comparison to the world: 53• Growth rate : 1.126% country comparison to the world:105• Birthrate: 12.28 births/1,000 population country comparison to the

world: 161

Population (contd.)• Distribution of population:– Age: – Ethnic groups: White 92%,

Asian 7%, Aboriginal and other 1%

– Geographic areas: Urban population 89% of total population

– Net migration rate: 5.93 migrant(s)/1,000 population (2012 est.)country comparison to the world: 17

Economic statics & activity

• GDP: 3.3% (2012 est.) country comparison to the world: 103

• Personal inc. per capita: $42,400 (2012 est.) country comparison to the world: 20

• Inflation rate: 2.1% (2012 est.) country comparison to the world: 33

• Labour force: 12.27 million (2012 est.) country comparison to the world 43

Economic statics & activity(contd.)

• Transportation:– Modes:

• Airports: 467 (2012)country comparison to the world:18• Pipelines: Gas 27,900 km; liquid petroleum gas 240 km;

oil 3,257 km; oil/gas/water 1 km (2010)• Railways: 38,445 km country comparison to the world: 7• Roadways: 823,217 km country comparison to the

world: 9• Waterways: 2,000 km (mainly used for recreation on

Murray and Murray-Darling river systems) (2011) country comparison to the world: 43

– Ports and terminals: Brisbane, Cairns, Dampier, Darwin, Fremantle,

Gladstone, Geelong, Hay Point, Hobart, Jervis Bay, Melbourne, Newcastle, Port Adelaide, Port Dalrymple, Port Hedland, Port Kembla, Port Lincoln, Port Walcott, Sydney

Economic statics & activity(contd.)

• Communication system:• Telephones - main lines in use:

10.57 million (2011) country comparison to the world: 20

• Telephones - mobile cellular: 24.49 million (2011) country comparison to the world: 43

• Internet country code: .au• Internet hosts: 17.081 million

(2012) country comparison to the world: 8

• Internet users: 15.81 million (2009) country comparison to the world: 25

• Broadcast media: The Australian Broadcasting Corporation (ABC) & Special Broadcasting Service (SBS)

GLOBAL INVESTMENTS AND TRADE

• Australia has a balance of payments that is more than 7 per cent of GDP negative.

• In trade terms, the Australian economy has had persistently large current account deficits for more than 50 years. One single factor that undermines balance of payments is Australia's narrow export base.

• Dependent upon commodities, the Australian government has endeavoured to redevelop the Australian manufacturing sector. This initiative, also known as microeconomic reform, has helped Australian manufacturing to grow from 10.1% in 1983-1984 to 17.8% in 2003-2004.

• There are other factors that have contributed to the extremely high current account deficit that Australia has today. Lack of international competitiveness and heavy reliance on capital goods from overseas might increase Australia's current account deficit in the future.

Bop situation

Counter trading

– develop new markets (71%),

– increased sales potential (67%),

– built long-term strategic alliances (62%),

– Strengthens the firm's competitive position (61%),

– increased the potential for market share (59%),

– developed markets for new products and/or services (55%),

– Increased costs (68%),

– involved complex negotiations (64%),

– raised problems with pricing brought difficulties in re-selling countertraded goods (59%),

– consumed time in negotiations (55%),

– could find no use for countertraded goods in-house (55%)

Counter trading• Forms of Countertrade Practised

– Counter purchase, offset and switch are the major forms of countertrade. Barter and compensation occurred much less frequently.

• Countries Involved– Indonesia, India, China, U.S.A., U.K., Burma,

Japan, and Malaysia, Argentina, Brazil, Hungary, Iran, Libya and Syria.

• Product Categories Countertraded– industrial raw materials, components,– agricultural raw materials.– Semi-finished and finished goods occurred much

less frequently in countertrade.– inputs and consumer goods are the primary

Australian countertrade imports.

Foreign aid

• Australia does not receive international aid. If at all the need funds, they source it from:– Private entities in Australia– Private Parties abroad

• The 2012-13 Budget will increase Australia’s Official Development Assistance (ODA) to $5.2 billion

Foreign investment

• Australia's abundant and diverse natural resources attract high levels of foreign investment and include extensive reserves of coal, iron ore, copper, gold, natural gas, uranium, and renewable energy sources.

• The level of FDI in Australia is estimated to have grown by about 60% in the five years to 2010. The largest contributors to the increase were mining, manufacturing and finance and insurance

Industry $ Million % share of total

Agriculture, forestry and fishing

669 0.1

Mining 151,065 31.9

Manufacturing 88,481 18.7

Electricity, gas and water 9,587 2.0

Construction 16.886 3.6

Wholesale and retail trade 44,500 9.4

Accommodation, cafes and restaurants

5,855 1.2

Transport and communication 43,331 9.1

Finance and insurance 67,653 14.3

Property and business services 25,174 5.3

Other services 1,627 0.3

Unallocated 18,845 4

Foreign Direct Investment

• Stock of direct foreign investment - at home: –$598.7 billion

• Stock of direct foreign investment - abroad: –$496.4 billion

Major exports• Exports: – $263.9 billion (2012 est.)

• Exports - commodities: – coal, iron ore, gold, meat,

wool, alumina, wheat, machinery and transport equipment

• Exports - partners: – China 27.4%, Japan 19.2%,

South Korea 8.9%, India 5.8% (2011)

Major imports

• Imports: – $258.1 billion (2012 est.)

• Imports - commodities: – machinery and transport

equipment, computers and office machines, telecommunication equipment and parts; crude oil and petroleum products

• Imports - partners: – China 18.5%, US 11.4%, Japan 7.9%,

Singapore 6.2%, Germany 4.7%

Exchange rates

Australian dollars (AUD) per US dollar–0.963 (2012 est.) –0.9695 (2011 est.) –1.0902 (2010) –1.2822 (2009) –1.2059 (2008)

Trade Restrictions• Trade Policy

– Australia began to reduce its tariff including in its most protected industries such as automobiles and textiles in the 1980s.

– The Australian economy has since reaped the rewards of tariff reduction through lower prices of imported business inputs, increased productivity and improved international competitiveness.

• Australian Free Trade Agreements– Australia has concluded different free trade agreements with New Zealand,

Singapore, the USA and Thailand. – Currently it is pursuing free trade agreements with China, Malaysia and ASEAN,

Japan, the Gulf Cooperation Council and Chile, and conducting a joint study on an agreement with South Korea

• Product Standards and Consumer Protection– Australia is a signatory to the WTO Standards Code and has acceded to the WTO

Agreement on Technical Barriers to Trade.– However, Australia still maintains some restrictive standards requirements

particularly quarantine and health restrictions that have an impact on the free flow of goods.

Import Controls• There are no special requirements for applying an import licence, nor are

there any quotas on imports. However, under the Customs (prohibited Imports) Regulations, controls take the form of –

– a) an absolute prohibition meaning that import of these goods is banned in any circumstances; and

– b) a restriction where imports are allowed only if written authorisation is obtained from the relevant authorities, or if compliance with certain regulations is met. For some commodities, import permits are required to facilitate clearance of goods.

• Items subject to control include animals and animal products; narcotics, psychotropic and therapeutic drugs; certain chemicals and primary commodities; firearms and certain weapons; motor vehicles; and certain dangerous goods.

Embargoed Countries

• Afghanistan• Australia Sanctions• Balkans• Côte d’Ivoire• Congo• Eritrea• Fiji• Iran• Iraq

• Lebanon• Liberia• Libya• Myanmar• North Korea• Somalia• Sudan• Syria• Zimbabwe

Tariffs & custom Duties• Customs Valuation and Tariff

– Australia adopted the Harmonised Commodity Description and Coding System (HS). – About 86% of tariff rates now range between zero and 5%, except certain automobile

products and the textile, clothing and footwear commodities.– The average applied most-favoured-nation (MFN) rate for industrial products is 4.6%,

while the applied MFN tariff for agricultural products is less than 1%.

• Customs Clearance– Importers wishing to clear their own goods should contact the Customs Information and

Support Centre for advice on Customs requirements and operating hours.– Customers should be aware of their obligations and base on their assessments of import

procedures. Penalties may be imposed for the submission of incorrect or misleading information.

– Controls on certain goods are maintained to meet health and safety requirements or labelling, packaging or technical specification requirements.

• ST and Other Taxes – Goods and services tax @ 10% (GST) was introduced in 2000 and is payable on most

goods and services imported into Australia except for some essential commodities.

Channels of distribution

• Import export agents• Wholesale middlemen• Warehousing• Retailers

• Penetration of urban and rural mkts

MARKET ANALYSIS MARKET ANALYSIS

Introduction Of the product and company

Chai Lovers

CHAI LOVERSA venture started by :Isha SanghrajkaPooja PatelPoorvi ShuklaRadhika MenonA company established in 2010 and undertakes export of various flavored teas to countries like America, United Kingdom, UAE and is currently planning to enter the Australian Market.

Introduction Of the product and company

PRODUCT

1. Ayurvedic Herbal Tea• Contains of Indian herbs like Tulsi, Banafsha,

Mulathi, Jaiphal, etc

2. Masala TeasAvailable in 3 flavors :

• Cinnamon

• Cardamom

• Ginger

Product Package Set of 15 Tea bags (AUD) : 7

Powdered Mixture (100gm)(AUD): 11

Resource requirement Finance (Selling)• Raw material – Rs 900,000• Advertising – Rs 10,00,000– Tv Commercial Rs 5,50,000– Hoardings Rs 2,50,000– Commission – Rs 200,000

• Distribution – Rs 15,00,000

Resource requirement Personnel

I. 50 factory wokersII. 5 export/import agents (in India)

Production capacity I. 3000 per month (includes buffer stock 200 units)

Product

• Core – flavored health teas• Augmented – flavor names• Expected – iced teas, new improved flavours

AUGMENTED

EXPECTED

CORE

Packaging for shipping

• Marking and labeling

• Containerization

Market

Consumer buying habits

– Small quantities– Frequent purchases– Quick mix– Lot of importance to flavour– Health conscious– Switching from coffee for health reasons

• Stationery products

Globus stationery

Schools and Offices

Distribution channel

• Typical retail outlets–Woolworths– Safeway– Coles Supermarket– Arrow Supermarket– Foodworks– Costco

Australian Agent – Stuart Alexander and Co.

• An Australian-based international marketing and importing company, known for importing and marketing

Promotion • Advertising - Ideaworks • Target market – 20years and above (mainly the major cities)• Positioning – Flavorful and healthy

choice• Sales promotion:

– Free Samples with The Australian (newspaper)

– Tie up with Tv Shows– TV Commercial– Hoardings– Stalls in malls and supermarkets– website

Our product and our competitors product

Brand name CHAI LOVERS CHAI

Features Ayurvedic Tea & Indian Masala flavors

Spice Mix & Organic Tea

Package 50gm, 100gm 50gm, 100gm

Prices AUD 7, AUD 11 AUD 7.50, AUD 12

Promotion methods Stalls, tea sets, newspapers, tv shows

Tea shirts & Festivals

Distribution channels Stuart Alexander Cater for events, supermarkets

REGULATIONS• Tea is among the restricted items that can imported into Australia • Customs requirements: All goods imported into Australia must be cleared by

the Australian Customs and Border Protection Service . • Quarantine requirements: Finding out about quarantine regulations is a must

when importing goods. If the goods are subject to quarantine regulations, you need to apply for an importing permit and allow time for quarantine.

• If you import plant, animal, mineral or human products, Australian Quarantine & Inspection Service (AQIS) will need to inspect and/or treat your products for pests or diseases.

• Assistance for importers: Investigate whether concessions are available for your import. Concession schemes may allow you to import goods for free, at a reduced rate or on a deferred duty payment.

• Labelling requirements: You may need to label your imported goods in a certain way, in addition to the general labelling regulations set out by the Competition and Consumer Act 2010 (CCA).

PRESENTED BY:

71 RADHIKA MENON 83 POOJA PATEL 92 ISHA SANGHRAJKA 108 POORVI SHUKLA