Paper Example on UK Company Expanding into China with Healthy Meat Alternatives for Veggie & Eco-Friendly Consumers

Introduction

The company main goal is to provide consumers with a healthy and nutritious alternative to meat. Protein-based alternative meat has been received by the consumers in the U.K. positively since its introduction in the market. As a move to expand internationally, the company considers China as its priority. The company's second goal is to cater to the needs of vegetarians as well as those who are environmentally conscious. 42 per cent of respondents sought foods that were better for the environment as they viewed meat production far much worse than dairy production. Natural Foods are a company that embraces alternatives to animal products; thus, the determination to provide consumers with alternatives to meat such as beef and pork. In China, there is an increased demand for non-meat products whose main ingredients are mostly plants (Kai, 2019). Protein-based alternative meat has exceptional potential in China. In 2016, the Chinese Ministry of Health decreased by half its recommended daily intake of meat (Yang et al., 2018). If consumers follow these official guidelines, it means that they will substitute the meat with an alternative to meat, thus providing an opportunity for companies such as Natural Foods.

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Chinese are increasingly considering plant-based alternatives to meat as a move to manage weight and increase their overall health. Approximately 60 per cent of Chinese consumers are considering consuming more fruits and vegetables (Kai, 2019). This, however, does not provide protein hence the demand for providing such consumers with an alternative of plant-based protein. Consumers who reduce the intake of meat substitute it with mock meats which mean that there is a ready market for protein-based alternative meat (Wild, 2014). The outbreak of Covid 19 pandemic has also influenced the growth of plant-based alternative meat in china. Since there is a growing demand for the products, all that the company needs is to present the consumers with high-quality products and guarantee them that they are authentic. The company should also guarantee food safety as it is the main purchase motivating factor.

Marketing Envirinment

1) PEST

Political & Legal Forces

Regulations

China has regulatory frameworks governing different aspects of the food industry, including the hygiene standards of the company's production area, the storage standards, storage standards, transport as well as the provision of labour. The restrictions are tighter for imports. There are also ambiguous regulations, slow regulatory reform, and unpredictable legislative reform and market restrictions. Natural Foods will comply with all the set regulations to ensure that the products sold meet the standards set by the Chinese government.

Employment law

Employment Law dictates how employees should be treated, including the minimum wage and their working conditions (SammutBonnici, and Galea, 2015). This is a factor that should be observed as if failure to follow the law may lead to lawsuits. Economic Forces

Income levels

Income levels affect consumer purchasing power; thus, it is critical to understand the income levels of the target customers (SammutBonnici, and Galea, 2015). The target consumers for the plant-based alternative meat are the health consumers, younger consumers and upmarket consumers. The youth unemployment rate in China is high, which means that majority of the youths are employed. The product is a healthy protein alternative; therefore, the potential consumers will substitute meat with the plant-based protein products. The products, therefore, act as a substitute; thus, there will be no additional expense (Wild, 2014). The products will also be cheaper as compared to the meat; thus, the consumers will eat healthily and at a lower cost.

Increasing the cost of labourLabour one of the factors of productions and a factor to consider in the international business expansion (SammutBonnici, and Galea, 2015). The cost of labour is increasing, and with the government regulation of minimum wage, the company should be aware of the amount of minimum wage as this affects the profits.

Socio-Cultural Forces

Health Consciousness

China has become one of the most health-conscious markets, which mean that the consumers are highly concerned about the authenticity and the health benefits of the food (Kai, 2019). Chinese consumers are adopting healthy eating habits and organic foods. This means that before buying any food, they scrutinize the ingredients and establish the healthy benefits they will get before making the purchasing decision. Natural Foods, therefore, as an opportunity to excel in the Chinese market by ensuring that the products have high nutrition benefits and the ingredients used are natural. The guarantee of authenticity and health of the products will be very critical in the company's successful venture in China.

Safety Consciousness

Chinese consumers are highly conscious of the safety of the foods they consume (Kai, 2019). This is the reason why there has been an increased demand for organic foods. Natural Foods, therefore, as to ensure that the ingredients they use in processing the products are natural and the spices they use are natural. They should also ensure that there are no chemicals in the products and the additives used are natural. For example, instead of using processed food colours, Natural Foods will use natural products such as beetroot juice or apple juice.

Food Culture

Chinese people love meat; thus, it will not be possible for some consumers to do away with meat completely. However, many of the consumers are open to protein-based alternative meat. Chinese diet consists of staple foods such as rice, noodles accompanied by vegetables and meat dishes. Natural Foods, therefore, will provide an alternative to meat to accompany the staple foods. The Chinese culture of a balanced diet is, therefore, an opportunity for Natural Foods. Technological Forces

Automation

Natural Foods have an opportunity of adopting automation to increase the company's efficiency. Automation is important in addressing quality control levels, speed of production, labour shortages, as well as overall profitability.

Increased Mobile Technology

The company has an opportunity of using mobile devices to reach a vast number of consumers. They can, therefore, adopt the use of online shopping where the consumers order online and the products delivered to their location.

2) SWOT Analysis

Strengths

The strengths of natural proteins as an alternative source of protein in china include the ability to consistently supply the protein products that meet the demand for protein products (Kai, 2019). There is a challenge in the supply of meat in china where suppliers face challenges meeting the demand.

Reduced cost of production that makes protein products to be affordable to the majority of the people. Health-conscious consumers and young consumers will be able to afford protein products because of their relatively low prices because of less cost of production.

The protein has an added strength of consisting of all the minerals that the people need for healthy living. The number of people living with health conditions is increasing in China (Kai, 2019). They require to consume specific minerals to remain healthy; the company will be able to fill the growing need.

The safety of the foods is guaranteed. There is the risk of food poisoning from other sources of protein; hence natural protein will guarantee consumers of the safety of food produced by the company.

Weaknesses

Nutritional value is compromised. Processed food does not meet the protein value because of the processing that they undergo while being processed (Kai, 2019). The production process destroys key minerals that are required by the body of the consumer.

There are safety challenges because of the difficulties in identifying the foods that have expired and the ones that have not expired.

Production is expensive when ingredients used in the production of protein foods are scarce (Kai, 2019). The market forces can influence the price of the costs of production increases the price of the final products.

Hotels and other social gatherings will face challenges in preparing the protein products to their clients because of the challenge of protein being contaminated.

There are also health concerns with processed food because of the food preservatives used to enable the food to have a longer shelf life (Kai, 2019). There are people concerned about preservatives and would consider natural foods without preservatives.

Opportunities

There is a large market of protein products in China, with the majority of the population not having access to an alternative source of protein. The primary source of protein in China is meat, and hence people with medical conditions where people are prohibited from consuming meat.

Nature foods will face less competition in the Chinese market because of the few companies that produce protein foods that meet the growing demand.

There is also an untapped market among the upper class that is increasingly rising, where people are looking for an alternative source of proteins (Bashi et al., 2019). There are no Chinese companies that are able to meet the growing demand for processed proteins.

The current protein industry does not meet the demand in the market; hence people are searching for an alternative source of protein apart from meat, making the people consider protein processed foods.

The protein foods will provide alternative sources of protein for people looking for alternative sources of protein to the people.

Threats

Chinese eating habits keep on changing from time to time; therefore, there is the threat of market reduction when people stop consuming protein products. The business is viable when there are customers of the product produced.

There are negative perceptions of processed food where there is a fear of consuming processed foods because of perceptions that there are health risks from processed foods.

There is also the threat of competition from other Chinese companies that produce similar foods, and they enjoy support from government support during production, leading to fewer costs of production.

There is also the fear of being exposed to the threat that comes with processed foods (Bashi et al., 2019). The target market, which includes the upper class in the society considers their health to be a significant health factor in the foods they consume.

There is also the threat of strong government regulations that are reviewed regularly to ensure foreign companies comply with all regulations.

Competitive Review

The main competitors in China that natural foods company will have to compete with include Zhen meat and Beyond meat companies that are based in Hong Kong. The companies produce similar products, but the target market is different hence the competition will be less because of the difference in the customers that will purchase the protein foods (Godfray et al., 2019). The competing companies have been in the industry for a couple of years but have not been able to meet the growing demand. Natural foods will target the health-conscious consumers and young consumers that are focused on consuming healthy foods that do not expose them to health-related risks.

There are many people living in urban areas where they have medical conditions that require them not to consume meat as their main source of proteins. The competitor's audience market is the upmarket consumers that are focused on consuming an alternative source of protein to maintain their health (Godfray et al., 2019). The competitors are unable to meet the huge demand in the upmarket hence the companies will not be able to offer competition to natural foods company. Natural foods intend to use social media...