Market Entry of Coles Supermarket in Hong Kong, China

Assessment 2 – Market entry
of Coles Supermarket in Hong
Kong, China
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Table of Contents
Introduction.................................................................................................................................................2
Summaries of assignment 1.........................................................................................................................2
Screening of the market selection................................................................................................................2
Stages of overseas market selection.........................................................................................................2
Reason for choosing the country.............................................................................................................3
Objectives....................................................................................................................................................3
Market entry strategy...................................................................................................................................4
Target market..............................................................................................................................................5
Positioning...................................................................................................................................................5
Market selection process.............................................................................................................................6
Target market selection process...................................................................................................................6
Positioning for each target market...............................................................................................................7
Alternative generic strategies......................................................................................................................7
Recommendations for the preferred strategy for a country..........................................................................7
Evaluation of alternative strategies..............................................................................................................8
Table 1: Alternative market entry strategies............................................................................................8
Alternative target market, positioning, and marketing mix strategies..........................................................9
Table 2: Alternative target market strategy.............................................................................................9
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11
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Introduction
The paper will provide information regarding the stages of market selection and a reason for
choosing Hong Kong market for their firm. It is seen that the firm Coles supermarket wanted to
expand their business in Hong Kong and for this reason, the appropriate modes of entry will
briefly be discussed in this paper. Furthermore, the target, generic and positioning strategies will
be explained and analysed briefly in this context. Moreover, some recommendations are also
provided that will help the firm to expand their business in the coming days.
Summaries of assignment 1
Assignment 1 evaluates the international marketing strategy of the firm Coles supermarket that
was going to expand their business in Hong Kong market. In other words, the report also stated
about the various types of market analysis in concerning to growth rate, population, market
barriers, and drivers. Besides this, Porter's Five Forces, operational and SWOT analysis are also
done which thus help the firm to gain the competitive advantage over other companies in the
market. Furthermore, in assignment one, both the external and internal environmental factors are
also briefly discussed which provides an idea of the overall environment of the market.
Screening of the market selection
Market selection is necessary to start a business in the international market. The company chose
Hong Kong market for expanding their business of Coles supermarket, and before selecting this
market, they make a view of financial, competitive as well as the economic conditions of the
selected area (Marchi, Vignola, Facchinetti, & Mastroleo, 2014).
Stages of overseas market selection
The five stages of the foreign market selection process are as follows:
a) Domestic regulation and management preferences– In this stage, the company has to
evaluate the type of international market that has enough potential to increase their business
growth in coming days (Tirole, 2016). Besides this, the firm has to exclude all other
international markets that do not provide them enough profit for their business.
b) Initial entry assessment– in this stage the company focus on the macro environmental factors
of the global market that provides least attractive social and political environments.
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c) Competitive environment- Before choosing the market for expanding their business, the firm
has to focus on the substantial barrier that may cause massive competition for their products.
In other words, after knowing the market environment, the firm can easily avoid those
market that gives them huge competition (Mathews, Bianchi, Perks, Healy, &
Wickramasekera, 2016).
d) Market responsiveness- In this stage, the company determines the marketing effort of the
overseas market that help them to gain a satisfactory market share. They also identify the
optimal and costs problems of expanding their business in the international market.
e) Internal trade-off analysis- this stage is considered the final stage of market selection as in
this stage the unattractive market are excluded, and a market that fulfills the firm's objectives
are chosen.
The market selection in new millennium catering is mainly based on the clustering markets in
concerning to the cultural similarities and also by the influence of technology and e-commerce
advances (Rezaei, Nispeling, Sarkis, & Tavasszy, 2016).
Reason for choosing the country
One of the main reason for choosing Hong Kong from the Coles Supermarket company is to gain
a competitive advantage and also to establish their brand in China. According to the market
analysis, it is seen that the people in this market wanted the best quality products at low cost
(Laufs, & Schwens, 2014). Hence this is also one of the reasons for expanding their firm in this
market. The company selects this market because Hong Kong has the highest level of population
which thus increases their profit and market share too. In other words, the political and economic
factor of this market is quite stable, and this is also considered as one of the reasons for choosing
this country.
Objectives
The mission statement of Coles Supermarket in Hong Kong is "Supermarket that has customers
value and provides superior and convenience products and service."
The main objectives of this firm are:
 To provide useful quality products at low cost
 To gain the competitive advantage in this country
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