International Marketing
Marketing of Agricultural products in Japan
Country overview
Japan has grown economically over the last decades and due to this fact the government has done various reformations in the economical sector. This has led to development of opportunities for several countries like the United States to do business and invest in Japan. The country is experiencing a decline in population but struggling hard enough to maintain the high living standards. It does so by increasing investment and business opportunities for international firms in the various economical sectors. The various sectors open to foreign investment in Japan are communications technology, biotechnology, retail sales, environmental technology and medical services (Karan, 2005).
The Japanese economy is effected through bureaucrats who initiate policy and draft legislation. Business people are require to get specific licensing, approvals and permits in from various ministries in order to conduct their businesses in Japan. This is a form by which the government regulates business activity in the country. Politicians have close relationship with business in Japan and for this reason, most politicians are elected depending on their business contributions.
The government formed a way of deregulating the role of government institutions by reducing the number of ministries and agencies. Japan has immensely developed infrastructure for instance railroads, airports, warehouses, harbors and telecommunications and this enables transport and distribution of various goods and services. Japan’s agricultural production has been rapidly falling and hence marketing of agricultural products in Japan would be very effective. These products include horticultural products, cereals, beef, pork and dairy (Karan, 2005).
Due to the decline in agricultural production, market access in Japan has increased and some of the barriers eliminated. The agricultural products will fit into the Japanese market due to decline in domestic agricultural production in Japan and increased market access. The decline in agricultural production has led to increase in dependence in agricultural products import in Japan. The Japanese food self-sufficiency is approximately 39% and hence there is increased demand in Agricultural products. The Japan government spends a larger percentage of its income on food products compared to other products (DIANE Publishing Company, 1996).
Market Entry Strategy
The best way to market agricultural products in Japan is by use of agents or distributors. The agents and distributors should have strong connections with the Japanese government. They have to perform personal visits to Japan since this will strengthen the personal relationships. In order for the agents or distributors to get the marketing deal, they have to show patience, persistence and follow-ups. It is essential to have knowledge of the main factors affecting trends in purchasing of marketing products in order to gain entry into the Japanese dynamic market. The use of interpreters is essential since the key decision makers in Japan prefer using the Japanese language. Commitment to Japanese business relations is of the essence for a country intending to market agricultural products to Japan(DIANE Publishing Company, 1996).
Agents may also make use of third parties such as other Japanese firms with the aim of creating a strong personal relationship with the Japanese government. The process of market entry involves reviewing of the Japanese agricultural industry standing, credit checks, the marketing competitors and building trust with the Japanese government. The entire process eventually leads to signing of agent or distributor argument and the agricultural products finally gain entry into the Japanese market. Construction of a representative office in Japan to aid distributors in marketing of agricultural products may be considered (Melville, 1999).
The key challenge expected in marketing of agricultural products in Japan is language barrier problem. This is due to the fact that Japanese is the language mainly spoken by majority of the population. To overcome this challenge, it is essential to make use of knowledgeable and skilled interpreters. The other challenge is the cost for instance marketing and advertising costs are extremely expensive in Japan. To overcome this challenge, it is essential to work hand in hand with the Japanese firms in order to aid in the advertising process (Okimoto, 1982).
The strong competitors for marketing agricultural products in Japan include Australia, Latin America, Thailand, United States and China. The other challenge is that of non-tariff barriers that slows the importation of marketing products in Japan. These barriers have recently been broken due to competition and pressure from foreign governments. An example of this barrier is the regulation of foreign products in favor of domestically produced agricultural products. To overcome these barriers, the export management firm has to show determination and creativity. Best timing is also of the essence in order to overcome these barriers (United States. Embassy (Japan), 1995).
Project financing
Financing of the project can be done through borrowing loans from the Japanese Government of tax incentives. The Japanese government has a provision for low-cost loans that aid foreign investors to import infrastructure so that they can market their products in Japan (U S Embassy Tokyo, 2001).
References
DIANE Publishing Company (1996) Destination Japan (2nd edition). DIANE publishing.
Karan, P, P. (2005) Japan in the 21st century: environment, economy and society.
University press of Kentucky
MelvilleI. (1999) Marketing in Japan. Butterworth Heinemann.
Okimoto, D.I (1982) Japan’s economy: coping with change in the international
Environment. Westview Press.
United States. Embassy (Japan) (1995) Country commercial guide. American
Embassy.
U S Embassy Tokyo (2001) Country Commercial Guide: Japan. Law & Taxation publishers.
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