Coles' Global Marketing Strategy for Business Expansion in Japan

This report details Coles' global marketing strategy for expanding its business into Japan. It begins by summarizing the assessment 1, which covers marketing opportunities, PESTLE analysis, SWOT analysis, and organizational analysis. The report then discusses the marketing mix strategies (product, price, place, promotion, physical evidence, people, and process) and their impacts on Coles' business activities in Japan, emphasizing the importance of adapting to the Japanese market. Segmentation, targeting, and positioning (STP) strategies are outlined to effectively capture the target audience. Various market entry modes, such as exporting, licensing, strategic alliances, and foreign direct investment, are considered. The report concludes with recommendations for Coles to effectively conduct business functions in Japan, focusing on improving product quality, recognizing target groups, increasing profitability, and providing quality products at reasonable prices. The SMART objectives are set to maximize sales and revenue through advertisement and promotional campaigns.

RUNNING HEAD: Global marketing strategy
Global marketing strategy

Global marketing strategy
Table of Contents
Introduction.................................................................................................................................................3
Marketing opportunities..............................................................................................................................3
Elements of the global marketplace and its impacts....................................................................................4
STP strategies..............................................................................................................................................6
Market Entry modes....................................................................................................................................8
Recommendations.......................................................................................................................................9
Conclusion...................................................................................................................................................9
References.................................................................................................................................................11
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Global marketing strategy
Introduction
The primary aim of this task is to discuss about the international marketing plan that
implemented by Coles to expand and explore the business in Japan. Coles is one of growing
retail and Supermarket Company, well known for its outstanding quality of retail products and
services. Coles has decided to expand and flourish the business functions in Japan to attain
competitive benefits. The assessment 1 has provided the ample of information about the
marketing opportunities, pestle analysis, SWOT analysis and organizational analysis. It is the
continuation part of assessment 1 that discusses the marketing mix strategies and their impacts
on the business activities. Furthermore, the paper also outlines that how Coles uses segmentation,
positioning and targeting strategies to capture entire target audience in the Japan. The marketing
entry modes such as exporting, licensing, strategic alliance and foreign direct investment also
have been discussed in the task. At the end, some recommendations have been given to perform
business functions effectively in Japan. More detail of the task has been discussed below.
Summarization of assessment 1
The assessment 1 discussed about the business opportunities of Coles that can be taken while
initiating business activities and operations in Japan. The paper also explained that how business
factors could affect the growth of the firm adversely and positively as well. Coles is a retail
supermarket Company who provides grocery products to the customers across the world. Coles
has decided to expand its business functions in Japanese market. Pestle and SWOT analysis also
explained in the assessment 1 that helps in identifying risks and threats of the new market.
Before entering in the Japanese market, firstly the organization needs to focus on the external
challenges, opportunities and competitors. A brief information about segmentation, targeting and
positioning also had been discussed in assessment 1.
Screening of marketing selection
Screening is a most of the significant process to identify and measure the issues and challenges
of the foreign market. As the same way, Coles will use screening process to enter into the
Japanese market. Preliminary screening is done by the company before entering into this
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country. Along with this, economic growth, marketing opportunities, competitors, and behaviors
of the consumers need to be considered while expanding business in Japan. Aside this, Coles
would use various marketing tools such as SWOT, Pestle, porter diamond model and STP
strategies.
Stages of overseas market selection process
There are five stages that can be used by Coles for entering into the Japanese market which have
been discussed below.
Country identification: In this stage, Coles decides to explore its business functions in Japan
for earning more revenue and returns. Effective and unique resources, technology and manpower
can be used by the company in Japan. Along with this, communication is effective and unique in
such country therefore, the company can take lot of benefits by expanding business
(Marketingteacher, 2018).
Preliminary screening: It is the second stage in which general screening done by Coles.
Various factors like current stability, macro environment factors, level of domestic consumption,
and exchange rates need to be considered in this stage.
In-depth screening: It is feasible and unique stage to capture the entire target market in foreign
country. The firm uses segmentation, targeting and positioning strategies are initiated by Coles to
analyze and identify the behavior and needs of the customers (Marketingteacher, 2018).
Final selection: In this stage, managers decide strategic goals and objectives for Coles to
increase profit and outcomes. The company also focuses on the domestic and close competitors
to stay in the Japanese market.
Direct experience: In this stage, personal experience is significant ad effective. The managers
directly visit to the country to experience and understand the culture, regulations and business
practices (Marketingteacher, 2018).
Objectives
The marketing and financial objectives for Coles have been discussed below.
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Global marketing strategy
Marketing objectives
 To improve and enhance the quality of grocery products.
 To recognize and focus largest target group in Japan.
Financial objectives
 To increase profitability by 20%
 To provide better quality of products and services at reasonable prices.
SMART Objectives
SMART includes specific, measurable, achievable, result oriented and time. SMART objectives
set by Coles to boost profitability in Japanese market. The firm uses advertisement and
promotional approaches to raise revenue in foreign market. The SMART objectives for Coles
have been detailed below.
 To maximize sale and revenue through advertisement and promotional campaigns.
 To expand business in the foreign market with reduction in the prices.
 To promote core brands in Japanese market.
 To maximize sale percentage by increasing the producing rate of the important brands.
Marketing opportunities and reasons to select the market
After conducting SWOT analysis and pestle analysis in assessment 1, it is noted that
Coles can take various benefits while expanding business in Japan. The Japanese market is one
of the most significant and profitable markets for many organizations (Venturejapan, 2018).
Entry into the Japanese market can be one of the effective and profitable decisions in the future
time (Venturejapan, 2018). If Coles expand and explore the business in Japan then it can take
ample of opportunities while operating business. It has been found that Japan is second biggest
consumer market with a US$1,124 billion turnover in last year (Startupoverseas, 2018). The
Japanese market is suitable because this market will help to provide ample of competitive
benefits to the customers across the world. The economy of the country is steady thus, Coles can
retain maximum consumer globally. Apart from this, culture is also favorable in the country to
attract maximum workforce for conducting business successfully and effectively.
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Global marketing strategy
Along with this, Japanese market is well known for its profile and affects some other
markets too. There are ample of avenues to expand and flourish the business in the Japanese
market. It is noted that Japanese is a society based on the consumption, utilization and
production of retail products. The company can increase and enhance its profitability and
revenue because innovative and new technology and resources are used by the country. High
consumer preferences and taste can become another good opportunity for Coles in Japan. All
these opportunities can be taken by the company while exploring the business activities and
operations globally (Mororintelligence, 2018).
Elements of the global marketplace and its impacts
Coles is one of the growing and leading names in the Australia. Now the firm has decided
to enter in the Japanese market. Therefore, the company needs to focus on the marketing
strategies to attain competitive benefits in the Japanese market. The elements of marketing mix
for Coles have been discussed below.
Product: Coles renders fresh food, fuel, liquor, groceries and financial services to the customers.
Along with this, the business segments of the company include Coles online, Spirit hotels and
Coles express. It has been found that Coles manages and operates wide range of products and
services in the international market. Therefore, the firm can attract maximum number of
customers in Japanese market. Aside this, Coles needs to work with suppliers to render ample of
retail and grocery products to its customers in Japanese market. There are ample of products such
as bread rolls, cakes and ice-creams that have won the recognition and rewards for their delicious
taste and quality. The firm should focus on the best food retailers in Japan to compete with them
successfully and effectively. The product strategy put great impact on the growth and targets of
Coles in Japanese market. If the company focuses on the product strategy then it can take ample
of benefits in this market. Coles should introduce new and innovative products for the customers
in foreign market to distinguish its products from the rivalries (Coles, 2014).
Price: It has been analyzed from the various studies that Coles is a cost leader in the market. The
organization renders high quality of products at lower prices. Price is one of the vital elements to
be nailed if the company is trying to be a player in the retail sector. It is analyzed that the
company will need to use lower pricing strategy to make a good image in the eyes of the
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customers. Along with this, Coles needs to invest in training and development, simplifying
processes and store network to set low price and offer a good customer experience in Japanese
market. Apart from this, the firm should be dedicated for delivering good quality of products at
lower prices. If the firm is entering into the Japanese market it further needs to provide some
discounts and offers to Japanese. There are various loyalty programs, sessions, discounts and
promotions that can be used by the company to get various benefits in Japan. Flybus is one of the
significant loyalty programs that could be used by the company in foreign market. A marketing
research shall be done by the firm to analyze and identify the prices of the competitors in Japan.
It needs to focus on the prices of the rivalries to compete with them in the international market.
Price puts various impacts on the sale and profitability of the firm in Japan. Price also affects the
preferences and desires of the customers. The buying behavior of the consumers can also be
affected by pricing strategy (Armstrong, Adam, Denize & Kotler, 2014).
Place: This strategy is essential to expand the business functions in Japan. Before analyzing the
location or place, the company would fail to explore the business internationally. This strategy is
essential to make a dynamic and effective reputation or image in the foreign market. Place
strategy is significant for Coles in Japan to strive with competitors globally. Coles further needs
to open new stores to improve the range of convenience and food. An effective and unique
marketing research is done by the company to find out an attractive and unique place or location
in Japan (Kono, 2016).
Promotion: Coles will have to use promotional strategy to maximize the sale and outcomes in
the Japanese market. Along with this, online advertising and promotion shall be done by the
company to promote the products and services in the foreign market (Hebden, King, Kelly,
Chapman & Innes-Hughes, 2011). Online promotions and traditional channels must be used by
Coles to increase and enhance the demand of the products in Japan. It should print the prices on
the each and every product. Its twitter and facebook account also provides ample of information
related to the items to the wide range of customers in the global market (Coles, Themessl-Huber,
& Freeman, 2012). Coles must use its facebook account to resolve and handle the queries and
complaints of the customers in foreign market. It should use promotional schemes and offers
during the various festivals such as new year and Christmas (Bailey, 2016).
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Global marketing strategy
Physical evidence: Coles needs to focus on the physical evidence while selling the products to
the customers in Japanese market. The firm needs to work towards better stores and buildings.
The stores should design in such a way that it can improve and enhance the customer experience.
In this way, the organization can enhance and flourish the business in Japan.
People: The success and growth of each and every firm depend on the management and
workforce. No company can survive and grow its business without using a dynamic and effective
management. Coles should hire train and skilled workers to perform tasks and duties in foreign
country. Top management should provide training and development coaching to the employees
for increasing sale in the competitive market. The first steps programs and retail leaders
programs shall be used by Coles in the country to uplift profitability. Strong and dynamic
management puts various impact on the long term goals and objectives positively.
Process: Coles should find various ways to improve and enhance its procedure in the strong
supply chain for delivering excellent customer experience in the market. Streamlining of
processes shall be used to reduce costs that add value to its consumers. Without unique and
effective process, the company will not able to compete and cope up with rivalries in the
international market (Gordon, 2012).
STP strategies
Segmentation, targeting and positioning are essential for entering in new market. STP
strategies further help Coles to fulfill the needs, requirements and wants of the customers. The
STP strategies for Coles in Japan have been discussed below.
Segmentation strategy: Market segmentation includes grouping ample of customers into
various segments that have common wants, requirements and needs. Each segment plays a major
role in identify and analyzing the profit and growth opportunities. The primary market segment
of the company is departmental and retail stores (Sultan, Wong & Sigala, 2018). They buy the
products and services of Coles to uplift profitability and outcomes. Coles can divide the Japanese
market into different segment that include following:
Demographic: The demographic strategy monitors on the aspects and needs of the customer in
the country. Before entering into the foreign market, a situational analysis is done by the firm to
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analyze the risks and challenges of the market. The organization focuses on the income bracket,
job and cultural background, age, and gender. The Japanese consumers are very alert in buying
the retail products and services.
Psychographic: This strategy refers to the customer group lifestyle. The psychographic factors
include lifestyle, opinions, aspects and social class. These factors may affect the sales volume
and revenue of Coles in Japanese market. It is portrayed that Japanese consumers value include
packaging, service, delivery, brand information and advertising. Retail shopping is seen as a
leisure activity in Japan. Japanese buy the products either for their own personal use or for their
social status and lifestyle. The Japanese do not comfortable with only conspicuous consumption.
If the company is able to know and analyze the psychographic factors in Japan then it can take
ample of benefits by selling the products (Taken Smith, 2012).
Behavioral: This strategy is based on the customer behavior. For example, brand preferences,
needs, desires, online shoppers and prior purchases. Coles needs to focus on the behavioral and
attributes of the customers while conducting business in Japan. The behavior and aspects of
Japanese consumers are shifting dramatically which can provide ample of opportunities for Coles
to earn maximum level of output (Baker & Hart, 2008).
Geographical: The geographical location is essential to meet the long term requirements and
needs of the customers in the Japanese market. Effective and attractive location shall be chosen
by Coles while expanding business in Japan.
Targeting: After dividing the market based on the various groups and status, Coles will need to
choose strong and unique target market because no one strategy would suit all type of
consumers, so being able to build and improve specific approaches and strategies for the target
market is significant and vital. It has been noted that Coles will target premium and middle class
people who have different cooking habits and are completely satisfied with the products and
services rendered by Coles. Value based positioning is effective to measure the wants and
requirements of middle and upper class people in Japanese market. Before initiating business in
Japan, it shall be kept in mind that customer’s preferences, choices and requirements play a
significant role to boost profit and output. Furthermore, the company must target youth and kids
by offering products and services of their convenience, desires and needs. Along with this, Coles
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Global marketing strategy
should provide some special offers and discounts to maximize sale and revenue in the Japanese
market. Coles needs to focus on the women preferences and choices to attract maximum number
of female customers in the Japanese market (Strauss & Frost, 2016). Need based positioning
strategies shall be used by Coles to analyze and measure the choices of women in the
international market.
Positioning: It is an effective approach to create an attractive and unique brand image in the
minds of the customers in Japan. By using positioning strategy, Coles will able to know and
understand the perception and choices of the customers related to retail products and services.
The firm will have to initiate its marketing campaigns and programs in such as manner that
encourages and promotes its retail products in the Japanese market. Loyalty schemes and
rewards shall be used to attract maximum customers in the new market. Aside this, the firm can
take benefits by initiating the big data analytics and artificial intelligence programs to better
understand and analyze the behavior and nature of the consumers.
Market Entry modes
There are various entry modes that can be used to enter in the Japanese market. Some of
the entry modes have been discussed below.
Entry modes Justification Advantages Disadvantages
Exporting It is a well
established and
traditional tool or
method of
reaching foreign
markets. There are
three types of
exporting such as
cooperative
exporting, indirect
exporting and
direct exporting.
 This entry mode is
not expensive and
there is no trade
barrier in exporting.
 By using exporting
mode, the firm can
reduce investment
and risks and
maximizes the
current facilities
(Eriksson, Johanson,
Majkgård, &
 Lack of
knowledge in
the foreign
market like
Japan.
 Unable to gain
international
experience.
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Global marketing strategy
Exporting is
significant method
of entering into the
foreign market. If
Coles uses this
entry mode then it
can take ample of
benefits in the
Japanese market
(Pehrsson, 2008).
This method is
useful and
effective because
there is extra cost
in this entry mode.
Sharma, 2015).
Licensing One of the vital
method can be
used by Coles is
licensing.
Licensing mode
can allow Coles in
the Japan to use
the various
resources and
property. Such
property is
intangible like
patents, production
methods and
trademarks. Little
investment is
 Low entry costs
 Lower financial risk.
 Low income
and revenue as
compared to the
other forms of
internationalizat
ion.
 Lack of control
various
difficulties can
be faced by
Coles in Japan.
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Global marketing strategy
required in
licensing method
but it provides
ROI in high
amount. Thus, this
entry mode can be
used by Coles for
entering into the
Japanese market
(Ojala, 2009). It is
significant mode
to enter into the
Japanese market
because there is
low financial risk
in this mode.
Foreign direct
investment
It is a fundamental
entry mode
because it provides
a strong and high
degree of control
in the functions
and operations.
However, this
method needs high
degree of
commitment and
high level of
resources. By
using this mode,
Coles can transfer
 Easy international
trade and stimulate
economic
development.
 Employment boosts
and develops.
 Risk and issue
from political
change.
 Higher costs.
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Global marketing strategy
the ample of
resources such as
technology,
personnel and
capital (Quickmba,
2018).
Wholly owned
subsidiary
It is primary and
important entry
mode to expand
and explore the
business in the
foreign market.
Therefore, Coles
can use this entry
mode for
international
expansion and
development
(Johanson &
Mattsson, 2015).
In this mode, there
are two options to
enter into the
foreign market like
Greenfield
operations and
acquisition.
 There is minimum
risk in this market
entry mode to
explore and expand
the business in the
foreign market
(Managementstudyg
uide, 2018).
 Highest profitability.
 High risk and
entry cost.
Strategic alliance It is term that
explains a whole
 Each partner
concentrates on
 The business
depends on the
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Global marketing strategy
series of various
relationships
between
organizations that
market globally. It
is a non-equity
based agreements
between the
different
companies in the
global market. It is
one of the suitable
methods for Coles
to enter into the
Japanese market
effectively and
successfully
(Ojala, 2009). It
has been analyzed
from the various
analysis that
strategic alliance is
significant mode
to explore business
in Japan because
Coles can use
innovative
capabilities and
skills under this
mode.
capabilities and
skills.
 Partnerships facilities
access to the
international market.
partners.
 It is very
expensive entry
mode.
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Global marketing strategy
Generic strategies
Generic business strategy could be used to attain competitive benefits in the global market. Most
of generic strategies have been discussed below.
Cost leadership strategy: This is significant and unique method to become the lowest cost
producer in the industry. This strategy is generally associated with the large scale businesses
rendering standard products with relatively little differentiation that are really acceptable to the
majority of customers in the market. This strategy helps in setting the lower prices of grocery
products and services in the global market. Furthermore, effective use of technology can be done
with the help of cost leadership strategy. A low cost manufacturer should find and exploit all
sources of cost benefit. If a company can attain and sustain overall cost leadership then it would
be an above average performer in its industry and can take rivalries benefits globally.
Differentiation strategy: It is a most fundamental strategy that helps to distinguish its products
from the rivalries in the market. This strategy makes products unique and effective to beat the
rivalries globally. It has been found that differentiation strategy makes products and services
unique and attractive than competitors. Coles can pursue this strategy to stay agile with their new
products and services. This strategy focuses on the quality and features of the products to attract
maximum number of customers globally.
Focus strategy: It is stated that focus strategy concentrates on the specific niche market to meet
the long term requirements of the business in Japan. This strategy helps in understanding and
analyzing the needs, choices, requirements and preferences of the customers. With the help of
this strategy, the firm has been able to develop a brand loyalty among their customers in
Japanese market. This makes their particular market segments more attractive and unique than
competitors. There are two types of focus strategy such as cost focus and differentiation strategy.
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Global marketing strategy
Recommendations
Some of the recommendations for Coles to enter into the foreign market have been discussed
below.
 It is recommended that Coles should analyze and identify the right and effective entry
mode to carry out business activities in Japanese market. The organization must use
strategic alliance method to flourish the business in Japan.
 Coles should target the women and youth who want grocery and retail products at
appropriate prices. The company should use unique promotional and advertisement
strategies and social media channels to target maximum target audience in Japan.
 Along with this, Coles should use fair pricing strategy to attract and retain maximum
number of customers internationally.
 The company should appoint skilled and talented workforce to conduct business activities
and operations in Japan.
 Business level and corporate level strategies should be used by the company to compete
with rivalries in the competitive market. Cost leadership is vital strategy that shall be
used by Coles in Japan to minimize prices of the retail and grocery products.
 Coles must use promotional and advertisement strategies to promote the products and
services in the Japanese market.
 It is noted that the firm should focus on the business level and corporate level strategies
to beat the competitors globally. Especially, the firm must focus on the differentiation
strategy to differentiate its grocery items from the rivalries in Japan.
Conclusion
On the above mentioned limelight event it is concluded that Coles is one of biggest
brands in retail sector that provides retail and consumer products and services to the customers.
The above analysis indicates that how Coles select effective and dynamic strategies to enter into
the international market. The five stages of overseas selection market selection process also have
been explained in the task. It is the second part of the assignment which explains the STP
strategies, entry modes and marketing mix strategies. The first part explained the business
factors, competitive analysis, SWOT analysis, organizational analysis, and marketing
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Global marketing strategy
opportunities. On the other hand, the above analysis shows that how Coles can get ample of
opportunities in the Japanese market with maintaining control over the rivalries. Marketing mix
is one of the important strategies that used by Coles while entering in the foreign market.
Furthermore, Target market is also analyzed by the firm to uplift profitability and outputs in
Japan. Along with this, it the paper explains the various entry modes that help the company to
enter into the foreign market.
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Global marketing strategy
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