Assessment 2 Case Study: Global Market Opportunity Assessment

Case scenario

Kids’ Eats is an Australian responsible foods company focused on wholesome foods for infants (aged between 0 to 12 months), toddlers (aged between 12 to 36 months), and pre-schoolers (aged between 36 months and five years). A recently launched initiative is a campaign working directly with primary schools as well as children’s’ organisations to educate primary aged school children about healthy foods and healthy eating. The company has experienced significant domestic growth in the last decade due to increasing demand from consumers to have sustainable and socially responsible practices at every step of the food production chain. Turnover increased from AUD$3.5 million in the financial year 2014-2015 to AUD$20 million in the financial year 2023-2024. In the same period the number of employees also increased from 10 to 30. Since September 2024 the growth of the business has somewhat slowed. Now in May 2025 the Kids' Eats management teams is considering the need to look for an overseas market to maintain future growth momentum.

Task

As the newly appointed international business and strategy consultant to Kids’ Eats

you have been asked to:

1. Identify and screen two emerging economies that hold the best potential

 degree of fit for Kids’ Eats and foreign customer needs. Specifically for each

 of the two potential markets, assess such factors as:

• Size and growth
• Market intensity (customers’ buying power)
• ‘Consumption capacity’: Market size and growth rate
• Relevant trends in the industry
• Receptivity to imports
• Industry-specific market potential indicators and market entry barriers • Infrastructure for doing business
• Degree of economic freedom
• The four risks of international business

BUSN3004 International Business 2

1. On the basis of your screening and assessment identify the preferred target market.
2. Determine the appropriate market entry strategy for the target market.
3. Use at least one framework of analysis (e.g. CAGE framework:

Background to emerging markets

Emerging markets are attractive to internationalising firms as target markets, manufacturing bases, and sourcing destinations. Firms targeting emerging markets must seek reliable information to support managerial decision making. However, emerging markets are characterised by unique circumstances, that can hinder a manager's ability to acquire needed facts and figures.

Emerging economies include: Argentina, Brazil, Chile, China, Colombia, Egypt, Hungary, India, Indonesia, Iran, Malaysia, Mexico, the Philippines, Poland, Russia, Saudi Arabia, South Africa, Thailand, Turkey, and the United Arab Emirates. These 20 emerging market countries account for 34 percent of the world’s nominal

GDP in US dollars and 46 percent in purchasing-power-parity terms. These countries are also featured in commonly used indices for emerging markets, such as those of J.P. Morgan, Morgan Stanley Capital International, and Bloomberg.

Guidelines

 A comprehensive list of required criteria for the report will be presented in Week 1 tutorial. When completing this assignment you are required to access and use materials beyond your textbook. You may include academic sources, government websites, and reports published by international organisations and consultancies.

Summary of Assessment Requirements:

The purpose of this assessment is to evaluate potential international markets for Kids’ Eats, an Australian responsible foods company focused on infants, toddlers, and pre-schoolers. Students are required to:

1. Identify and Screen Emerging Economies:

   • Select two emerging economies with the highest potential alignment to Kids’ Eats’ products and values.

   • Assess each market based on:

     • Market size, growth, and consumption capacity

     • Market intensity and customer buying power

     • Relevant trends in the healthy and responsible food sector

     • Receptivity to imports and market entry barriers

     • Industry-specific indicators

     • Infrastructure for doing business

     • Degree of economic freedom

     • Risks associated with international business (political, economic, legal, and cultural risks)

2. Target Market Selection and Entry Strategy:

   • Determine the preferred target market based on the screening results.

   • Recommend an appropriate market entry strategy (e.g., joint venture, direct export, franchising, strategic alliance).

3. Use of Analytical Framework:

   • Apply at least one analytical framework, such as the CAGE framework (Cultural, Administrative, Geographic, Economic distance), to support the market selection process.

4. Research Requirements:

   • Use reliable academic sources, government publications, and reports from international organisations and consultancies.

   • Go beyond textbook information to support evidence-based recommendations.

5. Report Structure and Presentation:

   • Present findings clearly, with well-structured sections.

   • Include evidence and rationale for all decisions regarding market selection and entry strategy.

Guided Approach by Academic Mentor

Step 1: Understanding the Case Scenario
The mentor explained Kids’ Eats’ growth trajectory, product focus, and the strategic need for international expansion. Students were guided to recognise the importance of aligning company values (responsible and sustainable foods) with foreign market expectations.

Step 2: Initial Market Screening

• Shortlist emerging economies with high potential for Kids’ Eats’ target demographics.

• Introduce key indicators such as GDP, purchasing power, infant and toddler population, and demand for healthy foods.

• Introduce CAGE framework to assess cultural, administrative, geographic, and economic differences.

Step 3: In-Depth Market Assessment

• Evaluate each shortlisted country for:

  • Healthy foods industry trends and growth

  • Import receptivity and trade regulations

  • Infrastructure, business environment, and economic freedom

  • Four international business risks (political, economic, legal, cultural)

• Mentor emphasised the importance of using credible sources: UN, World Bank, IMF, trade reports, and industry publications.

Step 4: Target Market Selection

• Compare shortlisted markets based on fit, growth potential, and feasibility.

• Mentor guided students to justify the preferred market using both qualitative and quantitative evidence.

Step 5: Market Entry Strategy Recommendation

• Explore entry strategies (e.g., direct export, joint venture, franchising).

• Mentor advised linking strategy choice to market conditions, infrastructure, and Kids’ Eats’ growth objectives.

Step 6: Report Compilation

• Integrate research findings with the analytical framework.

• Mentor guided students to create a coherent, structured report with clear headings, data interpretation, and actionable recommendations.

Outcome and Learning Objectives Achieved

• Analytical Skills: Evaluate emerging markets using multiple criteria.

• Strategic Decision-Making: Select a target market and entry strategy aligned with company goals.

• Application of Frameworks: Use of CAGE framework to support market selection.

• Evidence-Based Research: Collect and analyse data from credible international sources.

• Communication and Reporting: Develop a professional, structured report with evidence-backed recommendations.

Final Outcome:
Students produced a comprehensive international market expansion report for Kids’ Eats that:

• Shortlisted two high-potential emerging markets.

• Selected the preferred market with clear rationale.

• Recommended a strategic market entry approach.

• Demonstrated mastery of international business concepts, market assessment, and risk evaluation.

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