The paper is supposed to provide a brief insight into the marketing strategy by involving some important points concerning satisfying the company for its expansion in foreign markets. With that respect in current times, it is clear that the Woolworths Retail Chain has worked very efficiently to gain the trust of its customers (Woolworths Group, 2017). In that context, it is seen that there has been an increase in the customer’s share which shows that the consumers spend more through the low amount of prices. This part will eventually enhance all the aspects of the shopping experience of the customers. Thus this write-up will provide a proposal of how the company is willing to expand in the market of France. In that context, the report will further include the reason behind choosing Woolworths. In addition, the report will also provide a brief description of how the company will carry on the promotional activities to make the customers aware of the products of the company. Therefore in that context, the report will provide a description of the distribution as well as its pricing strategy in the target market of France. For that reason, the report formulated should contain the details of the target market of France by which its trade value, as well as sales, will increase in coming years with the strategy of segmentation, targeting and positioning.
The company Woolworths is an Australian retail organization that comprises 140,000 retail businesses across the globe and has become one of the major players in the supermarket sector in the global market (Woolworths Group, 2017). The reason behind choosing Woolsworth for the expansion is the business includes a broad range of product lines. In that context, it provides a wide choice of products along with groceries and non-specialised food lines to the customers. It also includes fresh fruits and vegetables, dairy goods, dairy items, canned goods, cigarettes, cleaning merchandise and much more. Therefore choosing Woolsworth for expansion will allow France to enhance its economy. It is because retail in Australia helps the enhancement of its economy by generating almost $53 billion or 4.1% of GDP. In that context, Woolsworth is almost ruling the market of Australia. Another reason behind choosing this company is because it already has a global presence so it is quite well aware of the ventures along with carrying out the increase in revenues (Woolworths Group,2017). It also can cover all the geographical areas. With its global presence, the company can be able to generate a sale volume of $104 million along with a growth in the sales rate of 7.5% to 13.7% per year.
Moreover, choosing this product will help the target market enhance its revenue concerning the competencies and sustainability of Woolworths. In addition, the company works with three principles, i.e…….., growth, offer and efficiency. Therefore the target market that has been chosen for the presentation of the marketing plan about Woolsworth is France.
The reason behind choosing the France market is the presence of its excellent economic indicators as well as the trade statistics. Keeping that into account the GDP of France is $2.8 trillion. This makes France one of the sixth largest economic powers in the global market (Czinkota & Ronkainen, 2013). The market of Frances also is quite dynamic which provides the presence of substantial agricultural resources which will help in the production of the organic products for the benefit of the customers. This will eventually enhance the increase in the market share of economic activity which will help provide employment. Another strong reason behind choosing France is the versatility of its market. As per Clark et al, the versatility of France makes the market quite reliable for foreign investments along with a favourable business climate (Clark et al., 2016). Due to this reason, the France market attracts many investors across the globe. Though France is planning to revitalize its economy and for that reason, it is implementing various goals that can help in the improvisation of the business and the regulatory environment so choosing France for this purpose will be quite fruitful. In that context, Choi & Yeniyurt said that foreign investors think that there has been the presence of the skilled as well as the productive labour force; technology and presence good infrastructure are there in France.
Moreover, the central location of France in the Europe continent makes it quite attractive from a business point of view. Thus by considering this while Woolworth is studied, it is seen that the structure of the company drives the competition and profitability very well. The company follows Porter’s five forces to reveal its competitive strength. With this, the company can be able to tackle the competitors in the new market by attracting customers and suppliers (Choi & Yeniyurt, 2015). The company further has a world-class supply chain along with the branding and market that results in innovation as well as integration by following these there will have the company can achieve competency in the target market. Thus the selection of France’s market for the expansion of Woolworths will result in a good combination from a business point of view.
The company should acquire promotional activities by carrying out the enhancement of its value propositions through promotion. Joint promotions are done to mitigate the business risks and to enhance the customer relations. With direct advertisement and promotions through magazines and television, the customer can very well become aware of the product as well as the services of the company. Woolworths can also go for the publishing of leaflets with various offers and discounts on the goods as well as services. Moreover, the important step that the company should acquire is the promotional activities in French. It will drag the customers down the track. In that case, the company should also sell such goods which are based on the style, colour, and demands of the customers of France. It will help the company position itself in the France market (Choi & Yeniyurt, 2015).
Moreover, the company can also go for a partnership with various small businesses and suppliers which can provide the company with all the resources with special deals. In return, it can be applied successfully while formulating the pricing strategies. It will further help in creating offers to attract customers which can also be used to increase awareness of the brand. Moreover, in recent times, the company can choose its promotions through social media. As per Hoppner & Griffith, promotions through social media will influence the customers and can reach at a fast pace to the customers. In that case, the customers can get the details of the products as well as services of Woolworth. The promotions through this process will help the content to spread more in a limited period (Hoppner & Griffith, 2015).
Woolworths is seen to have to acquire its distribution strategy with the help of a specific growth strategy. This growth strategy involves the process by which the company takes care of its several important aspects that lead to the growth of the business. In that context, the company enables the process of investment by bringing improvisation of all aspects relating to the business of the company (Katsikeas, 2014). The most crucial factor is satisfying the customer with improving the customer experience, improved service, better conveniences as well and access along with regular innovations. For that reason, the successful implementation of the distribution strategy depends upon the key areas that involve the cost positioning by taking the real cost of the dollar as per the low inflation environment, investing in the customers in a seamless and multifaceted offer and the improvisation of the efficiency. These three aspects will result in a significant rise in the customer value of Woolworths in France.
While having expansion in the France market the company chooses the combination of a cost-based strategy and a competition-based strategy for pricing processes (Paliwoda & Thomas, 2013). In addition, the company also uses the standard cost-plus pricing strategy to decide the value price of the products. in that context, Woolworth also uses target-profiting pricing that will further help in the pricing of the private label products Along with that the process will be carried out smoothly when the company opts for the low prices for the private label products just because it will reinforce the value perceptions of the positive customers and they will maintain their loyalty to the company (Morschett, Schramm & Zentes, 2015). In addition, the company also uses mark-up strategies to decide the price value of some of its specific products. The reason behind it is a large amount of market share depending upon which there will be the decision of the price value. Later the manufacturers of the privately labelled products enable the company to enhance their bargaining power over the manufacturers. Further, concerning this enhanced bargaining power within the market, the company can significantly go for the lowering of the process for their profit and get their edge over their competitors.
The paper included all the highlights of the possible marketing strategy that has been acquired by Woolworths to expand its business in the France market. For that reason, the company has undergone the proper use of segmentation, targeting and positioning for the successful implementation of the business in the foreign market.
Czinkota, M. R., & Ronkainen, I. A. (2013). International marketing. Cengage Learning.
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Woolworths Group: Quality Brands and Trusted Retailing. (2017). Woolworthsgroup.com.au. Retrieved 29 April 2017, from http://www.woolworthsgroup.com.au/Order Now