Yumfully Cheese Company Analysis

2.0 Introduction

2.1. Background Information

Yumfully was founded in 1990, based in Gippsland and is regarded as a home-based industry. The company employs 80 people included their factory and office workers. Yumfully has its own manufacturing factory to produce the cheeses and farms that rear cows to supply high quality milk which is the main factor to produce superior cheeses.

Yumfully produces different types of natural pasteurized cheese, which include blue cheese, Cheddar cheese and shredded cheese. Since Yumfully was founded, they are famous for their extra attention on making high quality and healthy cheese that are low fat and organic.

Yumfully’s target market is mainly major supermarket chains in Japan including Aeon, Daiei and Ito Yokado. These supermarkets have cheese corner where various kinds of cheeses are displayed in refrigerated displayed case as well as on the shelves.

Yumfully is only targeting Tokyo, which is the largest city in Japan as this is the first market entry of Yumfully into Japan. Tokyo was chosen because it has the largest population in Japan where food consumption and purchase rate will be higher as well as the taste and preferences of Tokyo people that are more westernized with the more exposure to western food culture. Yumfully would expand its market to other regions of Japan on the condition that their cheeses work well in Tokyo.

 The target demographic in Japan is Japanese with age between 25 to 54, male and female, medium and high incomers, middle to upper social class and practice a healthy and natural lifestyle. Japanese forms family units in the age of 25-54 where the purchasing rate of household products within this groups are concerned because they are the target population who will buy the cheeses. In addition, population group with medium to high income and is within the middle to upper social groups are focused as cheese is considered a superior food in Japan and people with higher income and social class will appreciate and willing to buy cheese.

2.2. Market overview

Japan has approximate populations of 127 million with high level of disposable income and companies that have strong willingness to invest in long term, sustainable products and services. In addition to that, Japanese buyers are more to premium high-end goods and services and has made a name for itself as a nation with high quality and technologies

Based on Business Victoria (n.d), in 2012-2013 Japan is Victoria’s second largest market for food and fibre exports, valued at AUS $761 million, 83% of this total is made up of Dairy, meat and prepared foods.

3.0 Economic Environment

Economic environment is the first evaluation of market environment which determining whether Yumfully should enter the market or whether the business can be effectively operate and successfully sell its product to the new market. Economic factors such as inflation, interest rate, currency risk, income and purchasing behaviour can have much influence in decision making of target demographic and product price. Population, Income, Consumption pattern and infrastructure are the vital factors to decide the market prospect and market potential for Yumfully expand to Japan.