Anaconda Australia- Feasibility Study to bring this exciting brand to South East Asia by setting

up a full service retail store in Singapore

Nikhil Sen 16710117

Anaconda- Background • Started in 2004

• In 10 years, Anaconda is already Australia’s largest provider of outdoor camping and adventure equipment

• Used by families for their outdoor activities in Australia

• Mission: to inspire, enable and equip its customers to enjoy family recreation in outdoor environments in a responsible and environmentally friendly way.

• Vision: To maximize the reach of its specialist products to consumers.

Rationale: Proactive and External •South East Asia has great potential for adventure sports- Indonesia, Thailand, Malaysia

• Camping, hiking, mountain-climbing, biking, fishing, water sports, wildlife based activities and night life and shopping in Singapore.

• Great potential to sell outdoor gear to international travellers who want to experience adventure in Asia.

• Brand building in Asia will make Anaconda an international rather than purely Australian brand.

Summary of findings from Feasibility Study

PESTL Environmental Analysis

• Political

• Economic

• Socio-cultural

• Technological

• Legal/ Regulatory

Political Environment • SE Asia political climate relatively stable.

• In Singapore, English is widely spoken though not in rest of SE Asia.

• These countries are relatively open to foreign investment.

• Highly attractive for adventure tourists from Australia & within Asia - outdoor activities in Thailand, Indonesia, Malaysia, mostly transiting via Singapore for city’s night life and shopping.

• Anaconda’s Singapore store could well serve these customers.

Economic Environment

• Consumers in SE Asia different from Australia- rural affordability issues, even urban consumers need to be educated about adventure travel.

• Also remote locations and lack of adventure sport infrastructure. However, now, many such sites slowly being developed.

• In Singapore, affordable but less opportunity (except during their foreign adventure holidays). Can try to market as items of fashion or utilitarian.

• Often, uncovered shoulders and knees seen as immodesty- need to modify products and campaign. Can affect demand.

Socio-cultural Environment • Marketing campaigns can differ from

Australia, where camping equipment and clothing used often, for local trips and decisions made by individual consumers. In contrast, in Singapore, outdoor gear may be needed more rarely, on international trips.

• Greater collectivism in Asian culture. Family ties, affinity with group. Expenditure on occasions (New Year, Hari Raya, Chinese New Year etc) than on camping holidays. Consider events aimed at holidays and special occasions.

• Group buying when an influential member buys Anaconda product can enhance sales

Technological Environment • Internet connectivity, high purchasing power

& high e-commerce/ online transactions in Singapore.

• Can stimulate greater brand awareness through innovative marketing ex: live blogs, Twitter and Facebook feeds, event marketing to support product sales

• Can create excitement in the market and incentivize potential customers to come to the Anaconda store to try out the merchandise; then access website for full range.

• E-commerce strategy a big part of marketing strategy for entry into SE Asia market

Legal Environment • Safety regulations weak in some countries in

SE Asia. Also laws protecting intellectual property rights weak or non-existent.

• Local competitors can copy Anaconda brand name but provide low quality products. Brand high in many Asian countries.

• Risk for Anaconda- need to be vigilant about potential copycats using specialist staff at the Singapore outlet.

• In Singapore, English common law prevails. Other legal factors (such as distribution law, consumer law , employment law, health and safety law) can affect how Anaconda operates in Singapore, costs and demand for its products.

SWOT Strengths Weaknesses • Strong brand in Australia • Great company culture • High-tech and advanced products; • Great In store experience; friendly staff • High Commitment to environmentally

friendly practices • Community initiatives well received

• Products relatively expensive, targeted at affluent customers , a minority in Asia.

• Difficulty in commanding price premium (despite high tech product), as lack of customer awareness about advanced outdoor sports.

• In store events and promotions (successful in increasing sales in Australia) is difficult from remote

Opportunities Threats • New product and no real competitors. • Australian travellers come to South East

Asia for adventure sports and cultural tourism. They could be part of target market as they are already aware of brand.

• Greater fitness culture emerging in Asia and appetite for adventure tourism.

• Opportunity to sponsor shows in extreme sports -very popular in Asia -can lead to significant brand awareness for Anaconda.

• High probability of knock-offs if successful • Intellectual Property Rights weak in South

East Asia • Products expensive vs. lower level

competitors who use contractors to source products in Asia

• Lack of infrastructure daunting • Specialized store (vs. retailers) can lead to

restricted access due to low internet penetration and e-commerce in SE Asia.

Implications of findings for Anaconda

For its future strategy for overseas expansion in Singapore- the company should devise a specific

• Product Strategy

• Distribution Strategy

• Brand Strategy

Implications for Anacondas Strategy: P

rod

uct

Str

ateg

y

• Anacondas needs to adapt to:

• Tropical Climate

• Lower Ability to spend

• Different Customer Tastes

Dis

trib

uti

on

Str

ateg

y

• Anacondas needs to distribute through:

• Specialized Stores

• Specially hired and trained staff to explain product benefits

• Online promotions and selling products through online stores

Bra

nd

Str

ateg

y

• Anaconda is a premier Australian brand. Emphasize this in marketing communications in Asia

• Event promotions to create excitement in store

• Entry pricing lower than Australia till more established

Conclusion • Market environmental analysis shows high feasibility of

setting up store in Singapore to access SE Asian market.

• SWOT analysis shows significant opportunities for Anaconda to make brand presence felt in this market

• Anaconda needs to incorporate these findings and execute specific strategies in terms of its product, distribution and brand strategy

• Introducing these products to SE Asia via a full service retail store in Singapore likely to be a very attractive proposition for Anaconda in the long term and make it a truly international brand.