Case Study The researchers were attempting the resolve the issue of pricing between Australian exported fish and the Japanese own produced fish in the Japanese market. The researchers attempted to determine this through assessing the main factors that may be the result of the fish price difference and that included fish color, condition, and freshness. The fish type that was in question was the Tuna, which was used to make a favorite known as Sashimi while raw. This implies that freshness was a crucial factor. The research was especially important for the Australian exporters because they felt that the prices in Japan for their products varied unfairly from those of the Japanese fish producers.
Specifically, the Australian exporters believed that Japanese auction buyers colluded to ensure that the Australian fish was out of the Japanese market. In addition, the research could have been very beneficial to the Australian exporters since it could shed some light on the possible ways that they could improve their fish product so that they can achieve high prices for their high quality products in a similar way as their Japanese counterparts.
The conclusion of the research maintained that the Australian fish exporters would improve the quality of their product both in color and in freshness to ensure high prices. One of the most important lessons to be learnt from the case is that although one could produce high quality products, the market status should first be researched thoroughly to determine the target consumer preferences. This is the problem that the Australian exporters are facing and whose resolution would facilitate the export of the most appropriate product ensuring that there would be fewer problems with customer preference.
This is a fundamental rule that the exporter or the producer is well aware of the customers’ preferences in the projected market. This is very important in decision-making process of the marketer. In addition, market research prior to business endeavors in the projected market plays an important role in eliminating pricing problems. This is because the exporter would have a high quality product that meets all consumer preferences in the same way as the products produced by the host country itself.
This would be the source of fair competition without one side believing that the other is colluding to keep them out of the market. Therefore, the main area of attention is consumer preferences because, as the Japanese market has exhibited, the prices that the consumers are willing to pay are highly reliable on the perceived value. Therefore, if the exporter has adequate information regarding the perceived value, then they can exploit that to their own advantage. There are several alternatives for the Australian fish exporters.
The Australian exporters can first opt to improve the quality of their products to meet the requirements of the Japanese market. This would include the freshness and the color of the fish products that are exported to Japan. Alternatively, the Australian exporters can also focus on other markets that have lower competition. Two of such markets include Osaka and Nagoya in the same country that accounted for approximately 16% of the chilled yellow fin Tuna, which was produced in adequate in Australia.
This implies that the Australian exporters could attempt venturing into these new markets for additional attention on their products. This would ease up the competition focused on Tokyo by most producers and additional competition arising from Vietnamese producers who were targeting Tokyo. Moreover, a study showed that Australian exporters could focus on importing an entirely new product to the Japanese market so as to capture the attention of a large number of the consumers in Japan. According to the research, most of the mangoes were sourced from Mexico and the Philippines, Australia could become the newest source.
This would ensure that the Australian exporters have a unique product that is not familiar in the Japanese market. This would be very effective mostly because the Japanese want premium quality and they are willing to pay to get it. Here, in spite of being a new exporter, the Australian exporters could use price as their strategy to capture the Japanese market, which is highly willing to pay for good quality. The best alternative for the Australian exporter is shifting their focus from the Tokyo market and venture in the available alternative markets that include Osaka and Nagoya.
The alternative of using a different type of product might not be very appropriate since it involves very high risks such as in the event that the fruit is rejected in the projected market or receives very little attention in contrast to the anticipated attention. Although venturing into new markets may require extensive research of the projected new markets, this would be in the best interest of the exporters since they would have firsthand information on how to prepare their products before they are exported.
This would eliminate any inconveniences related to product quality and customer preferences. In addition, venturing in a new market would eliminate intense competition and allow the exporters to realize significant returns for their efforts. Therefore, venturing in new markets is the best alternative for the exporters. Implementation of this alternative would not require sophisticated skills. This is because the exporters would first need to ensure that they have adequate information regarding the projected market.
Then, they would determine the most appropriate costs to price their products. This is because very low prices may prompt the customers to question the quality and lead to losses for the exporters while unreasonable high prices could chase the customers away. Therefore, price determination should be appropriate and determined after comparing the present prices in the market.