MKT3IMK International Marketing-Market Analysis

Develop students’ awareness of the different socio-cultural, economic, and geopolitical environments in which global marketing strategies and programs are formulated and implemented and to sensitize them to including ethical and sustainability issues in the international marketing context.

Analyse and evaluate global issues and describe concepts relevant to all international marketing activities

Develop relevant management skills for planning and expanding activities in global markets.

Develop and enhance critical thinking skills, in relation to foreign market assessment, through structured analysis and synthesis of data sets on two country markets, and through justified decision making via the selection of a specific country market.

Develop and enhance skills to work in a group / team.

Answer:

This report describes the market entry for Pink Lady Apples which is a product of Woolworths Company. The company delivers good quality and fresh apples to the customer with the aim to cater the needs effectively.This report assesses the international market for the product of Woolworths Pink Lady Apple, selection and the market entrance for the United Kingdom. For this purpose, the study outlines the worldwide market assessment and creates a suitable entry strategy for the brand by taking into consideration the international environments. The main objective of this report is to analyze the market assessment for Pink Lady Apple brand and to create the awareness about its products or its services.

Product Market Analysis

Market size: According to Bhattacharyya & Nain (2011), the market size of UK is as follows:

The total value of estimation of UK retail sales in 2016 is £358 billion. An individual employed in UK retail in 2015 was 2.8 million. 33 percent proportion of consumer spending that experience through retail. 3.4 percent increase in UK retail sales in December 2016 and a total number of retails outlets in the UK was 290315.  There is 5 percent amount produces of aggregate GDP and the average annual development of online retail sales was 10 percent.

Growth rate: United Kingdom economic growth edged slightly higher in the three months to June, as a more grounded service sector segment balance weaker assembling and development. The UK economy, and with it retail part has delighted in proceeded with development since 2013 growth fell from 2.6 percent a year in 2004 to 2.3 percent per annum in 2015. Retail sales grew by around 2.1 percent and Gross Domestic Product rose by 2.2 percent for 2016.

Different segments of the market: The distinct segments for product Lady Pink Apple is classified on the basis of:

Geographic representation: This segmentation is the most ordinary form of market segmentation in which company targets a restricted geographic area. For example, Woolworths can target rural and urban areas of UK for delivering the apples to the customer. The company offer this product in the winters especially as Apple is a seasonal product of winter. 

Demographic segmentation: According to Hollensen (2015), gender, age, and income are common demographic factors. Pink Lady apples will target men, women, youth, and children as Woolworths has stated expressed position, as a service to its customers is to generate fresh produce from global source only during periods of seasonal inaccessibility in Australia or where there is a deficit in local supply.

Behavioral Segmentation: This type of segmentation segregates the population on the basis of their behavior, usage and decision-making pattern. For example, young people and kids will prefer Apple as it is a healthy product. Thus, the company will market their product based on the behavior of an individual.

Market relation: The organization is existing in the growth stage of the product lifecycle. The company faces a fast increase in sales. The company has been in the market for a while, it is currently in a position to pre-empt the market by developing a position of leadership. Thus, growth is important, the investment phase is high, as it is the profitability.

Market Suppliers: In contrast to other industries, grocery retail is still dominated by local players in most nations. Global players are altogether missing from even the largest retail market. Thus, the extent of internationalization does not have significantly affect retailer’s income development or their rates or their profit revenues.

Sources of foreign supply:

International trade: The exchange of product and services between nations requires each to buy the currency of the other in order to make payments. Thus, the global demand for a country’s exports influence the demand and consequently the price of its currency.

Capital investment: In addition to worldwide requirements for a country’s securities and exports, country’s currency is influenced by everyday developments in cost driven by speculative trading activity.

Channels of distribution: The major forms of marketing channel used for the Pink Lady Apple product by Woolworths was advertising, social media, digital and interactive and selling to agents or wholesalers.

Competitor Analysis

Local and Foreign competitors: According to Dos Santos (2011), there are few local and foreign competitors are present in the retail market that delivers the similar or differentiated grocery product to the customers.

A form of competitors: The main competitor Coles has long-term commitment to support Australia develops implies towards a sustainable future, framing enduring connections with Aussie farmers and helping local employment in the food industry. The company offers quality products, amazing customer service, and good value to many Australians.

A number of competitors: There are four competitors in the retail market in Australia for the company in relating to product Pink Lady Apple is Toowoomba, Foodworks, IGA, and Coles.

Techniques to operate by competitors: According to Smith et al. (2011), the main competitor for the product Lady Pink Apple of Woolworths is Coles which is an Australian public organization that operated various retail chains. Coles organization have a major impact to handle the cost which in the long-term. Coles have large retailer shops than their competitors and provide better availability, offering banking facilities to consumers for the product Lady Pink Apple in the Australian market.

Strategies: The Company will concentrate on three main strategies:

Offer: Company will provide fresh apples to their customers.

Differentiation strategies: Company will have the obligation for creating new product categories and maintaining strategic sourcing relationships with company partners (Sheth, 2011).

Positioning: the company will improving to address a greater amount of these customers needs and creating further customer value by sorting for progress and executing the ‘Lean Retail' model.

Pricing Position: The Company will consist lower pricing, better categories in apples, and targeted consumers and make its brand image better by an improved loyalty system.

Company strength: Company has a powerful brand name and productive operations and company leaders and among the oldest organization to present the modern retail trade model.

Distribution of products: The main distribution channels used by the Company in promoting Pink Lady Apple product in the target market includes online websites, direct sales force who sell over the phone, dealers, and retailers.

Buyer Analysis

Assessing buyer behavior: From the perspective of buyer behavior, before purchasing apples from the store, consumer has various thoughts such as product should be of nutritional value, cost effective, healthy and organic product. Keeping in mind the customer requirements, the company should provide healthy and good quality of apples so that consumer purchases the product from the stores.  

Target market segmentation: The main target segmentation strategies of Pink Lady Apple product of Woolworths Company is:

Assessing consumer requirement: Company will create a segment strategy by keeping in mind the customer requirements. There will be a bunch or smaller sub-targets that require variation in a company's product offerings.

Differentiation approach: Differentiation strategy approach concentrates on catering the requirements and needs of various different sub-targets. This approach enables the company to meet the individual demand in an effective manner.

Determine a segment: Company will focus on the core segment of the market for delivering their product to the customers. The company will provide its services in an innovative manner which will attract the customer towards their product.

 Conclusion

From this report, it has been concluded that market assessment is essential for every organization in order to achieve its stated objectives. This report explains the various elements which assessing the international market for Woolworth's product Pink Lady Apple. The report describes the main three components of international market assessment of company which includes product market analysis, competitor analysis, and buyer analysis. 

References

Bhattacharyya, S. & Nain, A., 2011. Horizontal acquisitions and buying power: A product market analysis. Journal of Financial Economics, 99(1), pp.97-115.

Dos Santos, M.A., 2011. Minimizing the business impact on the natural environment: a case study of Woolworths South Africa. European Business Review, 23(4), pp.384-391..

Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.

Sheth, J.N. ed., 2011. Models of buyer behavior: conceptual, quantitative, and empirical. Marketing Classics Press.

Smith, R.J., Heley, J. & Stafford, I., 2011. Woolworths and Wales: A multi-dimensional analysis of the loss of a local brand. Sociological Research Online, 16(1), p.10.