Native Bush Spices Australia

The company’s overall business objectives for the next three years are to increase sales and create brand
awareness, develop a broader product range, as well as expand into overseas markets. The company is
also considering options for alliance marketing. The company is also looking at moving into international
markets, namely South - East Asia – specifically Hong Kong, Japan and Singapore. The company’s target
customers are those that enjoy gourmet foods. The age range of Australian consumers buying products is
between 35 and 65 and most consumers are health conscious, care about protecting the environment
and have an average income of $80,000. The company currently employs the following staff in its head
office: CEO, Operations Manager, Marketing and Sales Manager, Administration Manager and Customer
Service Officer. Around 10 staff are employed in the factory making and distributing the products.
Although the company does not have a formal strategic plan, the following information is included on its
website about its mission, vision and values.

Mission:

Native Bush Spices Australia is committed to providing the highest quality product to all its clients.

To embrace strategic alliance and seek out new partnerships

Vision :

We are constantly working to establish ourselves as the most respected and sought after supplier of
native bush spices.

To be more innovative and fine new ways to increase efficiency of processes and effectiveness of
customer solutions.

Values

Respect: taking time to understand and value each of our customers and respecting their choices.

Responsibility: acting with integrity towards our staff, our customers, the community and the
environment.

Caring: a duty of care for our staff, customers and the environment.

Excellence: to always look to provide the best quality product and customer service. Integrity: to act
with honesty, openness and do what we say we will do. Innovation: to be industry leaders.

 To identify community needs.

 To participate in local community.
 To donate certain % profit to community.
 To note on meeting with Stakeholder.
 To develop new areas which were not recognized at the time of previous planning.
 To be innovative and motivate self-directing teams.
 To participate in community.
 To develop strategic alliance and partnerships.
THE GOAL

Our aim is to raise $1500 AUD to buy supplies and packaging for these truly unique Australian
native bush products.

Stretch goal, if we reach $4000 AUD we had love to introduce more products to our range
including a range of bathroom products to capture the healing properties of these native spices,
including a Quandong body salt scrub and scented soy wax candles.

Australian Intellectual Property laws

Intellectual property (IP) and other intangible assets that relate to doing business include patents,
trademarks, designs, and secret processes and formulae.
Australian IP law is designed to encourage innovation and protect businesses that develop
original IP in order to have a competitive advantage. Australia is also a signatory to a number of
international agreements that protect IP in other countries.
IP Australia is the Australian Government agency that administers IP rights and legislation.
Further information on the laws and procedures governing the registration and use of IP in
Australia is provided below.
Patent protection
An Australian patent provides a legal right to stop third parties from manufacturing, using and/or
selling an invention in Australia. It may also be used to license someone else to manufacture an
invention on agreed terms. Australian patents are administered by the Patent Office of IP
Australia.
Patents can be complex. IP Australia strongly recommends consulting a qualified patent
professional before applying for a patent.
For more information on Australian patents and qualified patent professionals, see IP Australia:
Patents.
Trade mark protection
Australia has a well-developed legal system that protects the intellectual property of businesses
and individuals.
Businesses can register a trade mark as a marketing tool. A registered trade mark provides legal
protection that prevents others from using your brand. Trade marks are issued and protected
nationally.
For further detail on registering a trade mark in Australia, see IP Australia: trade mark protection.
 Registering a domain name
A domain name is a unique internet site address that allows others to access your website.
Internet addresses ending in ‘.au’ are registered in Australia and are administered and regulated
by the .au Domain Administration (auDA).
To register for an .au domain, the domain name must be available and the business must meet
auDA’s policy on domain name eligibility and allocation. For more information on registering a
domain name in Australia, including a complete listing of registration companies, see auDA’s web
page on Domain Name Registration.
Design protection
Australia has a statutory framework for the registration of designs. A design application can be
filed containing one design, a single design in relation to many products, or multiple designs.
Applications for registration of designs must be filed with the Designs Office of IP Australia. The
Designs Office will assess whether the design meets legislative requirements.
For more information on registering a design in Australia, see IP Australia: Designs.
Copyright protection
Australian copyright law is designed to encourage and protect those businesses that invest their
time and talent in the creation of new material. Australia is also a signatory to a number of
international conventions that deal with copyright.
Material is automatically protected by copyright in Australia under the legislative framework. No
specific registration is required. There are some exemptions from what is covered and around
the use of copyrighted material.
Co-operative ventures and collate a list of pros and cons for consideration by the management
team
A partnership agreement differs from a joint venture agreement as it relates to an ongoing relationship
between parties. Each partner in the relationship is responsible for the actions of the other (i.e. they are
jointly and severally liable for the partnership’s activities). Two or more individuals or entities can enter
into a partnership with each other. The parties share the profits, responsibilities and risks in the
business.

Advantages of a Partnership Agreement

Benefits of a partnership agreement include:

 Minimizing the risk of disputes between the parties later down the track;
 Setting out the expectations for the parties regarding the operation and management of the
business;
 Low start-up costs;
 The business will usually have access to more capital and can borrow more money due to the
number of parties involved;
 There are opportunities for income splitting; and
 There are limited external regulations.

Disadvantages of a Partnership Agreement

Disadvantages of a partnership agreement include:

 Each party is jointly and severally liable for the other parties debts;
 Each party is responsible for the actions of the other parties;
 Parties have unlimited liability;
 Profits must be shared with the other partners under the terms of the partnership agreement;
 There is a risk of disagreement between the parties; and
 If a partner joins or leaves the partnership, the partnership’s assets will most likely need to be
valued and this can be costly.


SWOT analysis

Although not a requirement of the project a SWOT analysis has been included to further
clarify and bring together industry opportunities and constraints as identified throughout the
report. The analysis is not intended to provide a long term focus, rather it is specific to the
industry at its current stage of development and considers strengths, weaknesses, opportunities
and threats that impact on native bush food potential. The analysis has been collated as a result
of discussion with producers, wild harvesters, processors, mainstream manufacturers and retail
sectors. It has also taken into consideration, industry SWOTS generated by previous native
bushfood workshops, relevant committees and the industry conference held in Brisbane in 1996.

Strengths
Producers
 Considerable interest exists amongst the horticultural and agricultural community
to develop native bushfood enterprises. A professional approach to plantation
development should maximise produce quality, quantity and may serve to increase
demand; and

 Native bushfood plantations have potential to improve sustainable land

management on farm resulting in a positive industry image from consumers. This
improvement may result from the perennial nature of many native bushfood
 species resulting in reduced tillage and greater organic matter retention in soils.
This opportunity may be further strengthened by farmers receiving financial
support to incorporate plantings into whole farm planning programs.
Manufacturers/retail

This section comprises strengths that markets have identified as genuine and
strongly attributable to native foods above main stream foods:

 Bushfoods offer uniquely different flavours. The discerning consumer will be

excited by the flavours and textures presented by native bushfoods if they
understand how to use them; and

 Excellent nutritional qualities in a consumer market that is increasingly aware of

health and functional food benefits. Although the native bushfood marketer
should be cautious of labelling foods as providing “health” benefits (the food
industry is currently assessing the risks of litigation associated with such
labelling) the industry can still promote an image of bushfoods being healthy and
nutritious.

Weaknesses

Producers

 Limited agronomic information to enable and ensure quality production;

 No chemicals registered for pest and disease control also limiting product quality
and creating a risk of inappropriate and therefore unsafe chemicals used on food
products;
 Difficulty in obtaining genetically improved plant material, therefore negative
impacts on yield and product quality;
 Limited knowledge of post harvest handling procedures creating product spoilage
and poor quality; and
 Nil or minimal mechanisation of harvest procedures resulting in high labour
costs.

The weaknesses at producer level are significant in that they all impact on the ability to
supply product at competitive prices. The cost of produce will restrict demand at many
consumer levels.

Manufacturers/Retail

 Inconsistent supply and product quality will limit market entry of mainstream
food manufacturers;
 Concerns regarding the toxicological components of some species and the lack of
researched “safe” species lists will also limit market entry of some manufacturers;
 High raw produce costs placing Australian native bushfood va products in the top
4% price range, therefore limiting market segments because of consumer
resistance at certain price ceilings;
  Lack of visible industry coordination performing generic marketing, promotion
and education needs causing a general lack of consumer awareness and therefore
demand;
 Inconsistent marketing terminology and focus presenting a confused, ill prepared
perception to the manufacturing and retail sector; and
 Lack of identified demand for many products by the consumer. This lack of
demand appears to be strongly linked to price resistance and minimal
understanding of the uses of native bushfoods.

Opportunities

 Development of native foods cuisine strongly linked to Australian tourism. This

opportunity will only develop if correctly managed and recognises the preferred
“experience” of the tourist;
 Development of focussed national strategies encompassing promotion, education,
food standards, research and development resulting in an industry portraying a
professional market oriented image;
 Diversification opportunities for primary producers enabling increased income
potential. This opportunity is strongly linked to the provision of realistic,
accurate information resulting in informed business decisions; and
 Establish a reputation of “fine foods” attached to the already strong reputation of
Australian wines as a complementary industry.

Threats
Producers

 Lack of superior planting material that allows the production of high quality
product;
 Oversupply of farmed produce occurring as market development does not keep
pace with production. Analysis of known plantings against current yearly
tonnages consumed indicates oversupply situations will occur in the very near
future;
 Risk of planting material that is not suitable for use because of the presence of
toxic compounds;
 Cultivation of native food species in overseas countries thus reducing future
export potential;
 Poor product quality and low yields attributed to lack of agronomic skills; and
 High production costs attributed to labour costs because of minimal
mechanisation of production, harvesting and processing procedures.

Manufacturers/Retail

 Food poisoning resulting from the use of inappropriate species and/or

consumption of produce that has been incorrectly prepared. This possibility
 compounds as increasing va products are produced in home kitchens eg the
cottage industry sector;
 High raw produce costs, therefore pricing va products outside all but the top 4% of
the retail gourmet market;
 Food Standards Code that does not yet address the intensity of flavour of native
foods thus inhibiting development of extensive product lines;
 Increasing dissension amongst native food industry players resulting in a poor
image to large manufacturers and also potentially to the consumer; and
 Lack of promotion, education and understanding by the consumer of native foods
resulting in limited demand.

STRENGTHS WEAKNESSES
Production Production
• Well suited to Australian production • Yield and production variability
conditions • High production costs
• Farm income diversification • Lack of production chemicals and
potential IPM
• Opportunities for sustainable • Reliance on wild or unimproved
enterprises varieties
Post-harvest • Labour intensive growing and
• Partnerships with major food harvest techniques
companies • Agronomy - essential elements
• Partnerships with major retailers missing for all crops
Markets Post-harvest
• Unique products and sought after • Use as raw ingredient limits price
flavours processors can pay
• Offer health / functional food • Traceability and food safety systems
benefits to consumers often missing
Industry building Markets
• An effective peak industry body in • Oversupply for niche products,
ANFIL undersupply for
• History of successful R&D mainstream commercial
• RIRDC and state government opportunities
support
Industry building
• Industry growth has been slow since
the 1980s
• Under capitalisation of the industry
• Lack of profit – producers and
processors
OPPORTUNITIES THREATS
Production Production
• Demand supports shift to scale • Myrtle rust – lemon myrtle, anise
production myrtle, riberry
 • Enrichment trials for Aboriginal
engagement
• Carbon sequestration potential
• Facilitation of grower cooperatives
Post-harvest
• Techniques and systems to
maximize product quality
• Invest in product development
• Increase supply chain cooperation
and trust
Markets
• Market development and consumer
awareness
• Nutraceuticals and mine rehab to
boost profitability
Industry building
• Materials to increase participation
(e.g. case studies)
• Business models for financial
success
• Indigenous participation models
• Foster partnerships with additional
funding groups
• Export sales to multinational food
companies
Post-harvest
• Emerging food labelling and safety
issues
• Loss of IP if relevant systems are not
put in place (eg
genetic material goes off shore)
Markets
• Low cost and synthetic imports
• Interstate trade restrictions post
myrtle rust
• Internationalization,
homogenization of food industry
Industry building
• In the absence of industry
contributions to research,
RIRDC reallocates Native Foods R&D
budget.
• Positive initiatives needed to ensure
sustained and
meaningful Aboriginal participation
PEST ANALYSIS
It consists of analysis of political, economic, social and technological environment of organization
POLITICAL
 Strong possibility- of introduction to impose carbon tax on all energy intensive products
used for commercial use
 Market Regulations
 Anti-discriminatory laws and minimum wages
ECONOMIC
 Strengthen of Australian dollar against trading partners in coming years.
 Economic situations and trends
 Market Distribution
 Interest and exchange rates
SOCIAL
 Lifestyle trend to eat out is becoming more affluent and frequent
 Steady population growth rate
 Consumers are increasingly aware of the impact of business activity on the local
community.
TECHNOLOGICAL
 Internet, information and social networking technologies continue to evolve and
provide new challenges and opportunities for marketing.
 Native Bush Spices Australia will continue with its effective use of its website to
promote and sell products and social networking to reach its target markets.

VALUE CHAIN ANALYSIS

Inbound logistic: Lack of experience personnel for custom and importation.
Operations: State of art Management information system provides for internal control and
strategic planning
Outbound logistic: Contracted Delivery Company is not able to deliver products on time due to
fast expansion plans.
Sales: Marketing and sales department are doing quite well and are strong points for profit well
massage can be expanded using internet.
Service: Native Bush Spices Australia enjoys good reputation for after sales services to customers
Milestone Progress
1. Objective Native Bush Spices Australia enjoys are installed in all states
except in northern territory because taking time to hire agents and
maintenance contractors.
2. Objective Profit margins have only increased to 2% in two years. Some
agents and contractors are very costly.
3. Objective 50% of target market recognize brand and 855 had a positive
reaction. 4. Objectives reduction in energy wastage is 2% against 2010 set
benchmark.
Overall progress
Organization is performing well profit margins have already increased by 2% in last two years as
bulk buying’s were instigated at earlier stage due to initial increase in demand. Marketing
objectives set are already achieved using, social internet and networking marketing strategies.
However, strategies are not implemented properly in Northern Territory organization is facing
difficulty in hiring agents and maintenance contractors. Energy reduction strategy working well
however it was implemented too late which resulted reduction in energy to only 12 kw per
person.

Improvements
Increase pay rate in Northern territory to attract experienced agents and machine maintenance
contractor. To increase profit margin warehouse should be open at Melbourne at earliest
because it is running at expensive agency model.