ANZCO Foods Limited: Pursuing the Chinese Market
From my perspective, the answer to Parker’s question at the end of the case is to use different prices or different products in different markets. And to better conduct this strategy, I would suggest ANZCO to launch its own importer firm in China if possible. Because with its own firm, it can better control distribution process and better sell its products. My specific suggestions are as follows.
Positioning: Geographically ANZCO should focus on two big markets: Northwest areas and eastern areas. The target market should be northwest area, because sheep meat is a major part of consumer diets in that area. And for the eastern area, the eastern coast should be the most important area because the purchasing power for this area is higher than others, where ANZCO can use a higher price and its premium products to further its profits.
Besides, Chinese market can also be divided into urban and rural area. I would suggest ANZCO to target at the most developed regions first because the purchasing power of those areas are higher and they are the major centers of processing industry. I consider the best way for ANZCO to expansion within these areas is to cooperate with hypermarket players in China because some of them plan to launch more shopping centers in China.
Products: I would suggest ANZCO to provide low-end cuts of sheep meats, and lamb flaps should be the main products in Chinese market. Because in China, mutton flaps are seen as a premium products and low-end cuts of sheep meat are popular. Since Australia supplied 99% of premium chilled lamb accounted for 6% of all sheep meat import, it would be too hard for ANZCO to develop its chilled lamb in Chines market. Thus, I would suggest it focus on the frozen lamb.
Place: For the retail sector, I would suggest ANZCO to cooperate with hypermarkets. Because they have a