Executive Summary
B2B biotechnology company engaged in food production plans to expand to overseas countries in the Asia-Pacific region. The organization is resident in Australia with limited resources. A major annual trade show was chosen as a promotion tool and a mode of communication. The company is an SME, which collaborates with partners on a key business and development strategy for it. However, preparation and participation in trade shows are quite expensive, so the effectiveness of this solution needs to be investigated. Thus, this report provides information about the advantages and opportunities that trade shows provide for promoting the company’s innovative product to the foreign market.
Introduction
The biotechnology sector is currently developing rapidly, and the demand for innovative products in this area is growing, which is especially relevant for the countries of the Asia-Pacific region. Australia is currently a leader among other states in the region, which makes the conditions favorable for the international expansion of companies. Thus, a small and medium enterprise (SME) dealing with food production in the field of biotechnology wants to present its innovative product at one of the biotechnology trade shows. The organization has successfully applied fermentation to synthesize casein, making it possible to create nutritious milk. The product will help many countries to reduce the amount of greenhouse gases produced by cattle significantly. Thus, this product will be most useful for countries such as India, where there are currently problems with hunger and environmental degradation. The company has chosen a major annual trade show as a tool for promoting and entering the market of foreign countries. This solution is ideal as the company operates in the B2B sector and is an SME, which makes the trade show the most suitable platform for regional expansion.
Biotechnology Industry
Biotechnology Industry in Asia-Pacific Region
For a successful launch of an innovative product using any promotion tool, it is necessary to analyze the state of the market. First of all, it is necessary to assess the existing competition both in Australia and in the target countries of the Asian Pacific region. Many Asian-Pacific countries, in particular India, are currently showing an increased interest in biotechnology in food production. For example, the share of the bio-agriculture segment in India occupies 16% of the industry (Biotechnology, n.d). Moreover, by 2025, the sector expects to almost double growth, which is an extremely positive circumstance for the launch of new products (Biotechnology, n.d). This factor is due to the need to produce not only more but also healthier food for the growing population (Popa and Mitelut, 2019). In particular, Asian-Pacific countries currently have almost half a billion malnourished or hungry people (Kadiresan, 2017). The more developed countries of the region are striving to utilize more sustainable food resources, which is also a promising direction.
Thus, innovative products in this area are in high demand, in particular among these countries. At the same time, Australia is the leader in the Asian-Pacific region in the biotech sector (Fadil, 2017). Currently, this sector is widely supported by both government programs and partners, including foreign investors. Launching an innovative product with limited resources in the overseas country within the region is not challenging for residents of Australia with the right marketing strategy. Moreover, the biotechnology industry is currently attracting the largest investors, who are also developing the vector in the countries of the Asian-Pacific region (Biotechnology, n.d). Thus, for a small and medium enterprise (SME), entering the market of a new country with an innovative product can be an opportunity to attract investment, as well as establish the necessary business contacts.
Trade Shows for Promotion of Innovative Products
Trade Shows for B2B
Trade shows are the most attractive and effective tool for launching and promoting new products to the overseas market. In particular, 32 biotechnology trade shows in the Asia-Pacific region alone are planned for 2021-2023 (Biotechnology Trade Shows, n.d.). Most of them will take place in India, China, Japan, Korea, and Australia, which speaks of these countries as the largest markets for biotechnology in the region. Trade shows are the best way for companies to show their new products since “92% of tradeshow attendees say their main reason for attending tradeshows is to see new products being featured” (Inglethorpe, 2018). Within the framework of business-to-business (B2B) relations, this aspect is the most important since it is built on partnership interactions. Moreover, such events “constitute a highly concentrated market system, where a large assortment of sellers, buyers, suppliers, distributors, and intermediaries are gathered in one place” (Tafesse and Skallerud, 2017, p. 19). Trade shows are created for the exchange of experience between representatives of a particular industry, as well as for establishing useful business contacts.
By integrating multiple promotional strategies, these events allow companies to raise product awareness and build partnerships. Within the framework of B2B activities, such sites allow sellers and suppliers not only to consider alternatives but also to easily find suitable, profitable contacts (Tafesse and Skallerud, 2017). Currently, trade shows the region is also in a stage of active growth, which provides an increased turnover and number of attendance (Bauer and Borodako, 2019). This trend is relevant not only for existing but also for emerging markets, including the Asia-Pacific region. Thus, trade shows are an ideal tool for promoting products and building brand awareness in a specific industry. Moreover, most of the time is spent on partnerships between buyers and suppliers, which is a key aspect of B2B.
Trade shows attract people interested in the industry who are focused not only on long-term cooperation but also on the development of innovative products. Siemieniako and GÄ™barowski (2017) emphasize that “socialization episodes affect relationship quality and concern two dimensions: information exchange and social exchange” (p. 247). Thus, trade shows allow organizations to create a network within which the exchange of experience, knowledge, and contacts is possible. Interdependence is a key characteristic of such events, which “involves mutual and complementary arrangements, thereby reducing risk while encouraging cooperation” (Bettis-Outland and Mora Cortez, 2020, p. 2). This atmosphere is also an advantage of trade shows as a promotion tool, as it minimizes the negative impact of communication with competitors. All representatives interested in the industry meet in a neutral environment, which makes it possible to create the most effective business event and not be distracted by possible conflict situations.
Trade Shows for SMEs
Apart from the broader B2B context, trade shows present unique opportunities for SMEs. Gerschewski and Evers (2020) note that “proactiveness in network development activities can enable their acquisition of needed resources for their internationalization process” (p. 587). Since such events provide an opportunity for companies to interact, it is SMEs that are extremely important to participate in them. Networking within the framework of trade shows is useful primarily for acquiring local and international partners, as well as for exploring a new market. Thus, for companies expanding to foreign markets, participation in such events will allow them to organically integrate into the environment.
Another important advantage of trade shows for SMEs in B2B is the ability to promote both the brand and its team. In this regard, it is important to note that “personal selling has dominated B2B marketing” (Lin and Ansell, 2019, p. 208). With the development of the Internet, most of these functions have gone to virtual instruments, but trade shows are still more often offline. Thus, within the framework of the event, the company can focus not only on its own product but also on marketing strategies. This aspect will allow the organization not only to establish itself as a quality supplier or manufacturer but also to establish the necessary relationships. Trade shows require participants to have a high level of personal sales, as they are built on interpersonal interaction (Camilleri, 2018). Thus, the event requires not only a high-quality and interesting product but also a competent strategy for its promotion. This aspect may seem a disadvantage, but if a company is prepared and feels confident in the market, then the high-quality promotion will make it the leader of the trade show and attract partners.
Conclusion
Having considered all the factors, you can apply this analysis to the specific company described. First of all, biotechnology is a promising and demanded direction in the Asia-Pacific region and the world as a whole. Moreover, Australia is a leader in this sector, which gives the company a growth advantage. The development is of practical importance not only for specific countries but also for the industry as a whole. For a successful operation in other countries, the company needs partners. The trade show is an ideal place to participate in networking, which provides not only collaboration but also the exchange of experience. With the right marketing strategy of the organization, it will be possible to acquire useful contacts, as well as learn more about the local market. In addition, participation in the exhibition will provide the company with increased brand awareness, and a high concentration of buyers and sellers can help find interested investors, which will provide resources for further growth.
Reference List
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Bettis-Outland, H. and Mora Cortez, R. (2020) ‘Trade show networks, trust and organizational learning: the effect of network ties’, Journal of Business & Industrial Marketing, ahead-of-print (ahead-of-print), pp. 1-11. Web.
Biotechnology: India is the 3rd largest biotech destination in the Asia Pacific Region (n.d) Web.
Biotechnology trade shows in Asia – Pacific 2021 – 2022 (n.d) Web.
Camilleri, M. A. (2018) ‘Integrated marketing communications’, in Camilleri, M. A. (ed.) Travel marketing, tourism economics and the airline product. Cham, Switzerland: Springer Nature, pp. 85-103.
Fadil, E. (2017) ‘Australian biotechnology industry and relevant cluster-like organisations’, European Cluster Collaboration Platform, Web.
Gerschewski, S. and Evers, N. (2020) ‘Trade shows and SME internationalisation: networking for performance’, Management International Review, 20, pp. 573-595. Web.
Inglethorpe, A. (2018) ‘How to build an effective trade show marketing strategy’, Marketing Weekly, Web.
Kadiresan, K. (2017) ‘Can biotechnology help feed the world’s hungriest region—Asia and the Pacific?’ Down to Earth, Web.
Lin, F. and Ansell, J. (2019) ‘Managing and building B2B SME brands: an emerging market perspective’, PSU Research Review, 3(3), pp. 191-214. Web.
Popa, E. and Mitelut, A. (2019) ‘Creating products and services in food biotechnology’, in Matei, F. and Zirra, D. (eds.) Introduction to biotech entrepreneurship: from idea to business. Los New York: Springer, pp. 141–178.
Siemieniako, D. and GÄ™barowski, M. (2017) ‘B2B trade fairs and promise management as a relationship marketing concept’, Journal of Customer Behaviour, 16(3), pp. 237-261. Web.
Tafesse, W. and Skallerud, K. (2017) ‘A systematic review of the trade show marketing literature: 1980–2014’, Industrial Marketing Management, 63, pp. 18-30. Web.