Woolworths International Marketing Plan for Australian Company

Question: Discuss about theWoolworths International Marketing Plan for Australian Company. Answer: Business strategy The retail market of China is worth 3473.4 billion Yuan as of 2017. Hence, Woolworths has estimated huge revenue if the strategies succeed. The company plans to penetrate into the market through the store at Shenzhen first and then other cities (Ofili 2016). Entry Mode The marketing entry strategy which has been adopted by the Australian company, Woolworths is the joint venture method (Fletcher and Crawford 2017). The firm has partnered with various local suppliers, vendors and distributors, the government which will enable it to function well in the given part of the country which is the Shenzhen city in China. Using this method the company will be directly able to offer the goods to the consumers. Michael Porters Five Forces The Threat of New Entrants The Threat of New Entrants is very high as the economy is a growing one and looking out for avenues to grow. China is a growing economy and it is predicted that it will become a leading economy in the next few years. For this reason, all the new companies who want to explore their business and seek into the new emerging markets tend to consider China as an appropriate choice (Fletcher and Crawford 2017). China itself has reduced the stringent laws which has made the economy more attractive for the different investors The bargaining power of buyers/customers The bargaining power of buyers refers to the power of the customers who make use of the given product. The Chinese economy is a fairly competitive industry where the customers have some local opportunities as well. The number of buyers is quite varied and the Chinese market is a manufacturing one which further enables the customers to get their prices. Hence, bargaining power is high. The threat of substitute products The threat of substitutes refers to the threat of usage of similar products by the customers. China is a manufacturing organization (Fletcher and Crawford 2017). On top of this the presence of global competitors like Wal-Mart makes the threat of substitutes very high (Peng 2013). The developing the e-commerce, the young generation are ten to purchase goods and products online instead of physical visiting the store. The bargaining power suppliers The bargaining power of suppliers is hugely dependent on the kind of service they provide, the level of competition and the integrity which they portray. The Chinese Market has vast number of suppliers and this makes the bargaining power low. This is unfavorable for Woolworths to set up their operations in the given area of work. Intensity of rivalry in the retail (supermarket) in the industry After analyzing the Porter`s Five Forces, it was witnessed that there are various supermarket firms in China which include Watsons, Wal-mart and Tesco. The competition between various supermarkets in China is brutal. Hence, this aspect is unfavorable. Target Market and Positioning The primary target market of Woolworths in China is the: The target market of the Woolworths store in Shenzhen is the families and individuals with income of more than $ 8000 per annum. The store will also be targeting restaurants and cafes, for their daily supplies Positioning The company follows a universal positioning theme whereby it will offer products that are indifferent to the customer`s background and culture (Fletcher and Crawford 2017). The company will offer products that it offers all over the globe with Chinese brands as well. In the minds of the consumers at China, Woolworths wants to position itself as a supermarket brand which offers good quality products at comparatively low prices. References Fletcher, R. and Crawford, H. ,2017. International Marketing; An Asia-Pacific Perspective (7Ed.). Pearson. HUANG, J. and Yu, J.I.A., 2015. Wal-Mart Development in Chinese Market: Problems and CountermeasuresBased on the Enterprise Culture and Ethics.International Business and Management,10(2), pp.11-15. Lee, Y and Yazdanifard, R. ,2012. Wal-Mart success in Mexico, Canada and china: global expansion, strategies, entry modes, threats and opportunities. Ofili, O.U., 2016. Internationalization: Choosing The Right Entry Mode: Lessons From Ebays Strategy In China.European Scientific Journal, ESJ,12(1). Peng, M.W., 2013.Global strategy. Cengage learning.