International Marketing
Executive Summary
This paper will focus on evaluating the Palm oil industry in Malaysia and Indonesia, the biggest exporter of palm oil. It will also discuss the Sentek Technologies in terms of international marketing operations. This will be coupled with the growth of the industry and particularly international markets as well as the market issues that may impact the business. Additionally, the paper will bring out the consumer and business trends in the marketing and distribution of products or services. The final part will discuss professional development steps to a secure role within the industry or company.
Introduction3
Industry..4
Company.4
Why Palm Oil and Sentek technologies..5
Target Market6
Industry Review..7
References9
Introduction
Malaysian Palm Oil Industry is one of the world’s largest palm oil exporters. It accounts for about 39% of the world palm oil production and 44% of world’s exports. Similarly, this production when compared to other oils and fats produced within the country, Malaysia accounts for 12% and 27% of the world’s total production and exports of oils and fats. This gives Malaysia a very crucial role in the fulfillment of growing global needs for sustaining oil and fats. The aspect of merging Sentek technologies to the palm oil company will help in the improvement of the quality of palm oil produced. This will also help in saving money through reduced costs and energy in production. Additionally, it will help conserve water, labor and maintenance (Vermuelen, 2006).
The Malaysian Palm Oil industry produces two types of oil which entail palm oil from the flesh of the fruit and the palm kernel that is obtained from the seed. This takes several processing operations in order to produce the finished palm oil.
Targeted Industry and Company
Industry
Palm oil industry prides itself as one of the leading industries in the world. Malaysia and Indonesia include some of the largest exporters of palm oil. The Malaysian Palm oil industry has received significant growth with over 19.4 million tones as per the year 2012. During the same year the industry had over 491,000 workers. Most of the palm oil traded across the world is obtained from Malaysia which offers about 46%. Malaysian palm oil industry adds the value to crude palm oil in order to make it ready for human consumption. They have also installed efficient and extensive refining and fractionation facilities to the product. Indonesia on the other hand has at times overtaken Malaysia in terms of exporting palm oil. It has been re-known as the world’s biggest producer and consumer of palm oil with estimates of about 50% from the country (Vermuelen, 2006).
These aspects are therefore important and need to be managed in order to sustain the world’s sources of palm oil. It is important to do so due to the fact that about $ 22 billion Australian dollars were obtained from the production of palm oil. The industry employs a large number of people, who sustains the industry. This sustainability would be achieved as the Malaysian palm oil industry aims at holistically balancing between social, environmental and economic needs of the country. This is coupled with managing the environment as well as ensuring that the nation progresses in terms of developing economically. Management of this sector has been observed in the Malaysian government where they require that diesel sold in the region contains about 5% palm oil diesel (Vermuelen, 2006).
The Company
Sentek Sensor Technologies is an Australian manufacturing based in Adelaide South Australia. It focuses in providing sensors and solutions for precision measurement and management of soil water and salinity dynamics. The company utilizes technology that is based on capacitance in order to provide continued measurements within the soil profile. The sensors create high frequency electric fields that extend through the access tube into the surrounding soil. This helps in detecting the changes in dielectric constant or permittivity of the soil over time. The measurements are however, affected by high frequencies in the water molecules. The company uses its extensive research and products in areas such as management of water, mining, landfill, applications in the environment, forestry and commercial agriculture across the world.
Sensor Technologies Company is advantageous in that it has been recognized as one of the leading research agencies and commercial enterprises across the world. This has occurred due to its well known brands that include the flagship Environ SCAN probe that offers continuous monitoring. The company has also revolutionized soil moisture, fertilizer among its vast services. This helps in the visualizing of the dynamics of the plant, water, salt, soil and atmosphere interactions. This application is used by irrigators in the management of their daily activities. Sentek technologies Companies apply business to business as well as consumer trends which are beneficial in distributing their products worldwide.
Why Palm Oil and Sentek Technologies?
Well to start with, palm oil has become very popular in almost all the products used today. This is due to the fact that about 50% of the products used in our daily lives contain palm oil be it cooking oil, cleaning products, candles, diesel just to mention but a few. According to Rainforest Rescue (2013), palm oil is considered as the cheapest vegetable oil in terms of production and refinery. Similarly, this is also due to the fact that approximately 80% of the palm oil produced is used in manufacturing food products, cosmetics, detergents and candles. This has led to the growth in demand for palm oil with countries such as Malaysia and Indonesia producing about 46% and 50% respectively to the world’s palm oil.
Countries such as Malaysia, are re-known for producing and exporting the largest amounts of palm oil as well as oil products. This creates the challenge for Malaysia as they have to meet the high demand of palm oil in the global perspective. Indonesia on the other hand relies on 50% of the palm oil produced in the country to sustain their countries needs. Therefore, the country as the world’s largest producer and exporter of palm oil intends to increase their productivity across the country and also the world. This occurs through their vast plantations that stretch across 6 million hectare (Vermuelen, 2006). The country also aims at increasing their plantations by 4 million hectares of palm oil bio-fuel in the next coming years.
These plans require diversity and outsourcing with other companies that will facilitate their growth and advancement in terms of production. This will require a company that has the capability to produce the required amounts as well the technology. Sentek comes in handy due to the fact that they have the required technology. This technology might be very crucial to the two countries in that it would ensure increased productivity and efficiency. Sentek Technologies Company has the ability to measure soil water and salinity through their advanced machinery. These machines also help in tracking and managing the nutrients in the plantations. This would be of assistance to the companies as the temporal and spatial changes in salinity and moisture would shed more light in terms of the complex interaction between the soil water, solutes and plants. It would also be necessary in giving farmers the clear view of the irrigation processes required in the plantations. Sentek helps in the management of irrigation, addition of fertilizer as well as salinity requirements. In turn it would help in environmental management as the rights amounts of fertilizer would be added to the plantations to avoid pollution. Sentek technologies Company would also bring about increased distribution of the products through their application of business to business markets trends. The consumer trends would also attract more buyers to both the international markets.
Information about the soil profile gives valuable information in terms of water and solute movement and plant water uptake. This would provide both Indonesia and Malaysia with valuable information of the appropriate growth and weather conditions. On the other hand, Sentek Technologies would benefit from this merge in that they would generate more sales due to the fact that Malaysia and Indonesia have established themselves as the world’s leading producers and exporters of palm oil. Other competitors would thus try adopting the same technology to produce more if palm oil. In turn it would also lead to production of more palm oil that is of better quality and consistent. Sentek Technologies would also benefit in terms of saving resources such as water, energy fertilizer, and labor among others. In turn, the yields obtained from this process would increase and improve the quality of the palm oil produced.
Additionally, there would be more benefits endured by both Malaysia and Indonesia in that they would be able to manage salinity of the soil, predict weather behaviors as well as outcomes of the yields and book keeping. This would be coupled with continuous learning processes and reduction of costs. However, every coin has two sides and in this case, combining Sentek Technologies Company with the Palm oil industry would bring about negative effects. One of these effects would be that the application of technology of almost all sectors would render many people jobless. However much they technology would reduce costs, many people would be substituted by the machines. Others would be moved to different sectors of the industry where they receive low wages.
Long Term Goal
The main objective of combining these two international markets would be that it would bring about sustainable growth in the market trends. It would also maintain the production of palm oil at increased rates and more quality of the products. The plantations would be maintained in good conditions as the technology would help in conserving the soil, water and the environment at large. Similarly, the people who work in the plantations would get more information concerning the way technology advance the yields and how to maintain their plantations. Proper management and monitoring strategies would help in improving the situations in the two countries.
Business to Consumers
The technology provided by Sentek technologies would be sold directly to the consumers in Malaysia and Indonesia through the model of business to the consumer and distributors. It would also boost the identity of the brand for the technological company by creating a good reputation for them. Similarly the business to business trend would maximize the value of the transactions through focusing on the relationship between the two businesses.
Target Market
The combination of these businesses would rank their status at the top of both Malaysia and Indonesia. It would also target other competitor markets such as Sime Darby, Golden Agri just to mention but few. This will also boost the targets for potential investors and establishment if markets in other regions.
Conclusion
The combination of these two businesses would largely boost the market due to increased production and quality. Therefore, it is important to associate with the companies and people who have positive impacts in the activities we carry out.
References
Malaysian Palm Oil Industry. (n.d.). Retrieved from http://www.mpoc.org.my/Malaysian_Palm_Oil_Industry.aspx
Sentek Technologies - Soil moisture monitoring specialists. (n.d.). Retrieved from http://www.sentek.com.au/corporate/about.asp
Sentek Technologies - Soil moisture monitoring specialists. (n.d.). Retrieved from http://www.sentek.com.au/home/default.asp
Vermeulen, S., Goad, N., & International Institute for Environment and Development (2006).Towards better practice in smallholder palm oil production. London: International Institute for Environment and Development.
Welcome to the Malaysian Palm Oil Board // Washington, DC // 1-202-572-9768. (n.d.). Retrieved from http://www.palmoilworld.org/
The World’s Top 15 Listed Palm Oil Planters | Palm Oil HQ. (n.d.). Retrieved from http://www.palmoilhq.com/PalmOilNews/the-worlds-top-15-listed-palm-oil-planters/
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