Marketing Techniques and Strategies Used by Coles Supermarket to Expand into the Asian Market in Hong Kong

This report enlists and describes in detail the various marketing techniques and strategies used by Coles Supermarket to expand into the Asian market in Hong Kong. The major elements of this paper include the price positioning and marketing mix used. It is based on prior reports based on the already existing units of the firm in Australia. The aim of the paper thus is to provide a detailed framework and description of the entire process of marketing and reaching target market.

Running head: GLOBAL MARKETING
Name of Subject: Global Marketing
Name of the Student: Raju Goud Kesari
Student ID: 11655919

1MARKETING
Executive Summary
This report enlists and describes in detail the various marketing techniques and strategies used by Coles Supermarket to expand into the Asian
market in Hong Kong. The major elements of this paper include the price positioning and marketing mix used. It is based on prior reports based
on the already existing units of the firm in Australia. This firm also incorporates and implements the features of economic evaluation,
implementation and control and contingency plans. The entire time frame for the various activities and the distribution of responsibilities for
fulfilling of these activities and financial objectives are discussed in detail in the paper. The aim of the paper thus is to provide a detailed
framework and description of the entire process of marketing and reaching target market. It also introduces the planning to publish the annual
report of the firm.

2MARKETING

3MARKETING
Table of Contents
Executive Summary 1
Introduction 5
Marketing Mix 5
Product Life Cycle 6
Branding 8
Packaging 8
Labelling 8
Quality 9
Product Mix/Depth and Width 9
Segments 9
Augmented Services 10
Pricing Strategy 10
Place 12
Channels 12
Preferred Intensity of Distribution 13
Place of Retailers 13
Communication Promotional Mix 13
IMC Mix 13
People 16
Training and Recruitment 16

4MARKETING
Occupational health and safety laws 16
Economic Evaluation 16
The buyer decision process for the new product 16
Total Market Calculation 17
Costs that could be incurred in the start-up 18
Implementation and Control 19
Communication Plan 22
Monitoring of Action Plan 23
Contingency Plans 27
References 29

5MARKETING
Introduction
The second assignment focuses on the various stages of market sections and the reasons behind Hong Kong being chosen as the market
where the firm is internationally expanding. The paper also enlists the market entry strategies chosen for the expansion as well the market
positioning of the firm. The target market hence is the market consisting of Hong Kong which was chosen after a lot of analysis regarding the
financial, social and the economic conditions affecting expansion of the firm in this region. The positioning of the firm in the target market can
be best explained as the firm trying to target housewives who use varied number of goods for cooking. The aim of the firm in this respect is to
monitor the prices of its goods in relation to the price levels in the economy so the majority of the target market being focussed on can be
captured within the least possible time. The other method being used to maintain the position of the firm is maintaining the variety of goods and
products manufactured and provided by the firm. Further, the firm is also planning to produce products especially for children so that the entire
cohort of consumers in the target market can be best served.
Marketing Mix
There are two different types of strategies in the context of marketing mix being followed by the firm to gain customer satisfaction and
trust in the long-run from the target market cohort consisting majorly of children and housewives. For the children, the product will be
chocolates and the price of the goods will range in between 10 to 50 dollars. The promotional strategy used will be comprised of advertisements.

6MARKETING
The other marketing mix used for the adults ranging in the age of 23 to 50 years, will comprise of the products and goods that will provide varied
taste and the best quality of taste to the consumers including grocery items and vegetables and fruits. The price of these items will range in
between 20 to 100 dollars. The method of promotion that will be used for marketing of these goods will include advertising and campaigns
(Huang&Sarigöllü, 2014). Both of these products will be marketed and sold in Hong Kong.
Product Life Cycle
The product life cycle of any product portrays the various stages that a particular product of a firm goes through and helps firms in
locating where the products currently (McAuliffe, 2015). This in turn helps firms to take steps and measures so that the products reach the
maturity stages. The four stages of product life cycle are introduction, growth, maturity and decline. Coles Supermarket is looking to expand in
Hong Kong and so in this respect, the products and goods under consideration (vegetables, fruits and groceries as well as chocolates) belong to
the first stage of product life cycle. This is portrayed in the following diagram showing the different stages of development of the product and
where the products of Coles Supermarket lie.

7MARKETING
Initial
stages
Coles
Super
market
produc
ts
Growt
h
stages
Maturit
y
stages
Declining
phase
G R
O
WT
H
Time period

8MARKETING
Branding
Coles itself has been working on the strategy of branding and has been able to gather enough brand value and brand trust on the part of
the customers in the regions of Australia where it operates and functions. However, as the brand is now being expanded into a new region (Hong
Kong Asia) and the few products (chocolates, vegetables, fruits and groceries) are being focussed on as the major products, so specifically
branding will be done for children and separately for housewives. Further, the quality and variety of these products will be maintained through
prices and customisation depending on the preference patterns of the customers (Amaldoss& Jain, 2015). In a survey it is came to know that
most of the Hong Kong people likes foreign brands especially the chocolates.
Packaging
The packaging of these products will also be done in such a way that these products are not confused for other brands. The products are
packaged in such a way that they can attract the people of the Hongkong and their choices. For example, the colours like red and yellow
according to the traditional Chinese culture can be used in packaging since these colours are believed to be the sign of good luck. ( where are
hongkong people as has to buy this band)

9MARKETING
Labelling
The labelling of the product will also be made as attractive as possible to gain maximum possible attention on part of the consumers. The
labelling should essentially ensure the expiry dates of the products, the ingredients used and the way it should be stored.
Quality
As mentioned earlier, the quality of the goods and products will be maintained at high standards so that the customers are able to slowly
trust the brand and the firm (O’Neill, Sohal& Teng, 2016). This will help to elevate the brand value of Coles Supermarkets in Hong Kong . (use
gorvin article relate to topic)
Product Mix/Depth and Width
The products of Coles Supermarket also are best explained with the help of the two major concepts of width and dept. The width of the
product mix will consists of the different product lines of the firm. For example, Coles Supermarket will have multiple product lines based on
grocery products like fresh juices, milk and cheese products, baking items and so on. (Mayer, Melitz &Ottaviano, 2016). Further, the length and
depth of the product mix constitutes the number and variety (versions) of products in each product line. In case of Coles Supermatrket, there will
be a number of products under each product line so that a wider cohort of customer needs and demand trends can be taken care of (Plank, 2018).
For instance, under the product line of baking items, a wider range of cakes and breads can be added. (relate to topic)

10MARKETING
Segments
Product segmentation is a method followed by firms to group the products of the firm (Rajan& Wang, 2016). This is done based on
classification of the products according to some product attributes (Qiu, 2014). In this case the grouping of products will be women and middle
aged population and housewives since women and housewives mostly take care of the household works like grocery shopping. Similarly mainly
the middle age population regardless of gender tend to shop grocery items than the younger generation. Hence, they will be the major target
customer of the company. (why only middle aged and women, why they should purchase this brand )
Augmented Services
The augmented services and products provided by the firms include the extra benefits provided along with the services of the firm
(Hoekman& Shepherd, 2017). In this case the augmented services provided by the firm will include free delivery of the goods ordered or bought
from Coles Supermarket depending upon the prices of those goods, warranty and guarantee services for the products and membership cards
which can be used st the stores of Coles and upgraded on frequent usage. ( relate to topic)
Pricing Strategy
Pricing strategies are techniques and methods used by firms to determine and set prices for its new products while entering a market for
the first time. The two most important types of strategies used for pricing include penetration methods and skimming methods (Klassen,
Lisowsky&Mescall, 2017). The two methods act in opposite ways. The penetration one involves setting of a low price for a new product while

11MARKETING
entering the market and slowly increasing the price of the product as the market share of the company increases. The skimming method involves
setting a high price of the product while entering the market and then decreasing the price with the entry of competitors into the market. In this
case, the firm will be using the strategies of penetration and not skimming so that the firm is able to provide high quality and variety of goods at
low prices and thus gain a considerable share of the target market.
Factors Justification
Average income The average annual income of the firm is being expected to be around a million dollars because of the incorporations of tax
percentages and currency exchange rates in the calculation. However, the actual figure of average income might differ due
to unforeseen circumstances and variable costs
GDP 32,091.22 crores USD
Tax 17% Income tax
Currency
exchange rate
1 Australian Dollar equals5.53 Hong Kong Dollars
Average
Competitors

12MARKETING
Price
Cost:
- Production
2000
- Distribution 1500
- Labor 1500
- Material 2000
- Marketing 3000
=10000
Place
As mentioned earlier in the report, the place where the promotion and expansion of services and goods of the firm will take place will be
in Hong Kong. In Australia, the firm has around a total of 2300 stores spread across the region. Similarly, in Hong Kong the firm is planning to
open a total of 500 stores in the beginning followed by more stores in the consequent years depending on profit maximisation degrees and
revenue generation levels. Further, the stores will initially be started in the most important cities of the region including Kowloon, Tsuen Wan
and Tung Chung so that the firm is able to analyse the market positioning of the firm in the first year in different types of places . The success

13MARKETING
factor of the company will be its wide range of products at a reasonable price which will persuade the customers to products of this
brand. (why they should buy this brand strong resean)
Channels
The distribution channel of Coles Supermarket will consist of the various steps and paths through which the product has to pass before
reaching the consumers. There will be three types of channels based on the products offered by Coles Supermarket (Cui &Mallucci, 2016). The
first will be the longest and consists of a path where the good has to travel across producers, wholesalers, retailers and reach consumers finally.
The second will be the process where only the producers and retailers are concerned along with the final customers. The last channel will be
consisting of the retailer directly selling the goods to the consumers which is relevant with the case of Coles Supermarket. (relate to topic)
Preferred Intensity of Distribution
Intensity of distribution is a very important concept when it comes to marketing strategies of firms. It is essentially defined as the
frequency at which various resources used by the firm is used to meet the recurring needs of the customers (Puga, 2017). The different strategies
of distribution intensity are selective, exclusive and intensive depending upon a few factors. In this case intensive mode of distribution intensity
will be chosen so that the goods and products manufactured are sent to the retailing stores at high frequencies depending upon the trends of
needs of the target market in Hong Kong.

14MARKETING
Place of Retailers
Coles Supermarket will be set in the form of retail outlets across different cities in Hong Kong such that the retailing outlets are
established in the form of departmental stores. Coles Supermarket will be providing the different types of goods under one roof directly to the
consumers and so departmental stores will be used.
Communication Promotional Mix
IMC Mix
The IMC Mix is a process that helps firms in choosing the promotional strategy when a firm is introducing a new product or expanding
(Camilleri, 2018). These strategies include online marketing, public relations, advertising, personal selling and sales promotions. In this case,, as
mentioned before advertising techniques will be used.

15MARKETING
Advertising Sales
Promotion Personal
Selling Public
Relations Direct & Online
Marketing
0
20
40
60
80
100
120
Usage Level
Usage Level
( what is the present )
This graph portrays the usage of advertising as the only source of promotion and communication for marketing of the goods and products
in the target market concerned. The other methods of communication are not used by the firm as advertising is being estimated to enable the firm
to reach the maximum population possible.

16MARKETING
Usage Level
Advertisements
Print
Social Media
here add advertising sales personal selling public
relation direct& online marketing
The above graph again portrays the extent and intensity with which the various modes of advertising are used for promotion in this case.
Maximum usage is depicted for advertisements to reach to a larger number of people in lesser time followed by social media to attract the
younger generation with minimum cost incurrence and the least usage is that of print media.
People

17MARKETING
The people of an organisation are very important and include all employees along with the organisational heads. The various segments that come
under this are explained briefly below.
Training and Recruitment
Coles Supermarket being a well-Established retail chain in Australia will take up necessary steps to hire the right it of employees for both
production units and stores. The firm will also be providing the necessary training to ensure maximisation of their productivities (Sung & Choi,
2014).
Occupational health and safety laws
The firm will also take necessary step to comply to the principles of safety, security as well as corporate social responsibility in the field o
employee welfare.
Economic Evaluation
The buyer decision process for the new product
This graph below presents the cycle of the innovation adopters which will be slow at the beginning and increase to reach the peak and drop to
slow again.

18MARKETING
As is seen from the graph, the goods under consideration will be used by innovators, who are risk-takers and then this will increase so that the
product s are widely used and tried by larger number of customers. Following this, the nature will change wherein the brand will be well known
and people will get accustomed and do not have to take risks for trying a new product of Coles.
Total Market Calculation
Hong Kong has a population of 7.35 million
The aim is to target early adopters and innovators in the 2 years, then early majority on the next three years

19MARKETING
So total market in the first two years is 7.35 milliontimes (2.3%+ 5.25% = 7.55%)=550,000. This is the total market we are looking at in the first
3 years
We are trying to get 10% market share of that in 3 years – so out total market is 55,000
Our expected revenue is 55,000x our price (assuming it is $10) = $550,000. That is how much we want to earn after 5 years/year
In the first year (Year 1 – we want to have 4% Market share – $22,000)
In the second year (Year 2 we want to have 8% market share – $44,000)
In year three (Year 3 we want to have 10% market share – $55,000)
Costs that could be incurred in the start-up
Costs Reduction/Monitoring Process
- Production Usage of innovated technology
- Distribution Use of disruptive business models
- Labor Use of automation and smart devices

20MARKETING
- Material Use of smart devices
- Marketing Use of digital advertisements
Implementation and Control
Activity Responsible Jan Feb Mar Apr May Jun
Market research
Political, Economical condition, Social and culture,
Technological factors, Legal factors, Environment
(PESTLE)
Marketing team 
Market Survey 
Research Analysis 
Production Plan
Sourcing local manufacturers Production team 

21MARKETING
Sourcing local suppliers 
Production sampling 
Analyzing the sample result Production and
Marketing team

Marketing Plan
Market Analysis Marketing team 
Competitors Analysis 
Distribution research
Sourcing effective local distributors Marketing team 
Recruitment
Local employment HR team 
Training
Training program HR team 

22MARKETING
As is noticed from the above table, the activities are distributed under the large sub-headings for each month so that there is effective distribution
of work according to availability of times and resources.

23MARKETING
Communication Plan
Activity Responsible Jul Aug Sep Oct Nov Dec
Promotion Plan
Event sponsor planning 
Social media creating 
Sale promotion planning 
Budgeting
Costs Analysis 
Pricing
Estimating Price  
Product Launch
Launching the Product into
the market

Feedback

24MARKETING
Collecting feedback of
customer satisfaction and
sale
   
Annual report
Providing relevant
information for Annual
report

From the above table we see that promotion planning and budgeting are done in individual
months followed by other activities that occur recurrently until the annual report is published.
Monitoring of Action Plan
Activity Measurement Responsible Activity
completion
date(s)
Memo
Market Research
(PESTLE)
Determine macro-
environmental
opportunities that
will benefit the
company
Marketing
Team
One year
before release
date
Opportunities
must be
consistent with
company
objectives
Market survey Customer
Feedbacks
Marketing
Executives
One year
before release
date
The product
characteristics
should be

25MARKETING
satisfying
customer
demands
Market Research
and survey
Analysis
Studying demand
patterns
Research
Executives
One year
before release
date
The quantity,
variety and
quality of
products should
be in sync with
customer wants
Sourcing local
manufacturers
Using old statistics
(revenue generation)
as evidence to
source them
Marketing
Team
Eleven
months
before release
date
Cost effective
supply and
catering to
demand quantity
Sourcing local
suppliers
Using old statistics
(revenue generation)
as evidence to
source them
Marketing
Team
Eleven
months
before release
date
Cost effective
distribution
Production
sampling
Manufacturing
tester products and
surveying target
group based on the
usage of those
Production
Team
(Engineers)
Eleven
months
before release
date
Maintaining the
wholesomeness
and packaging
qualities of the
products
Analyzing the Using analysis Analysts Ten months Ensuring quality

26MARKETING
sample result methods, smart
devices and
business models
before release
date
Market Analysis Using analysis
methods, smart
devices and
business models
Market
research team
Ten months
before release
date
Opportunities
must be
consistent with
company
objectives
Competitors
Analysis
Using analysis
methods, smart
devices and
business models
Market
research team
Ten months
before release
date
The competitive
environment
should be such
that the firm is
ahead of them
Sourcing effective
local distributors
Using old statistics
(logistical data) as
evidence to source
them
Marketing
Team
Nine months
before release
date
Cost effective
distribution and
productivity
maximisation
Local employee
recruitment
Using hiring
techniques used in
the Australian units
Human
Resources
Team
Eight months
before release
date
Hiring the best
fit
Training Using Training
models that have
been used earlier
Human
Resources
Team
Seven
months
before release
Capacity
utilisation and
potential

27MARKETING
date development
Marketing plan for
Event sponsor,
Social media and
Sale promotion
Making use of the
demand patterns and
customer feedbacks
and advertising
methods
Marketing
Team
Six months
before release
date
Opportunities
must be
consistent with
company
objectives
Budgeting Budgeting models
as per trends in
Hong Kong
Finance Team Five months
before release
date
Rigorous
budgeting to
meet financial
objectives
Pricing Using price
positioning
Finance Team Four months
before release
date
Meeting
financial
objectives
including
revenue
generation levels
Product launch Using
advertisements and
digital advertising
Marketing
Team
Four months
before release
date
In the way that
arouses interest
in consumers and
helps in a
effective start off
Collecting
Feedback
Automated methods Marketing
Team
Four months
from August
Comparison of
demands and the

28MARKETING
to November extent to which
they are met
Annual Report Based on all the
above variables and
concepts
Marketing
Team as well
as Finance and
Research
Teams
December Publishing the
first record of the
various
parameters and
success rate in
the first year
Contingency Plans
Activity Possible Issue Prospect of
occurrence
Modification
Sourcing local
manufacturers
Manufacturers
bargaining power
being higher than
Coles
Absence of
enough
manufacturers
compared to
retail units
Using and implementing
professionals from
already existing units
Sourcing local
suppliers
Suppliers
bargaining power
being higher than
Coles
Presence of
trusted
competitors
Increasing the
compensation and making
adjustments in the
inventory and budgets
Production
sampling
Glitches in the
process of testing
Incorrect
coding and
Using high quality testers
and innovated

29MARKETING
automation
techniques
technological automation
Local employee
recruitment
Employing incorrect
fit of employees
New area of
expansion and
so differing
backgrounds
and mentalities
Providing efficient and
effective training
processes
Training Inefficiency of
employees and
potential gap
recurrences
Lack of
motivation and
infrastructure
Holding workshops and
including change
management
Budgeting Incorrect estimations
and assumptions
Lack of proper
or incorrect
data usage and
calculations
Use of smart devices and
analytical tools
Product launch Excess demand from
consumers
Inefficient
estimation of
demand
quantities
Maintaining proper levels
and stocks of inventories
Exit Strategy Failing to adhere to
legal requirements
Not keeping
continuous
track of
adherence
Keeping the legal team
updated and ensuring they
form the bridge between
the government and the

30MARKETING
policies firm
( please explain the above table)

31MARKETING
References
Amaldoss, W., & Jain, S. (2015). Branding conspicuous goods: An analysis of the effects of
social influence and competition. Management Science, 61(9), 2064-2079.
Camilleri, M. A. (2018). Integrated Marketing Communications. In Travel Marketing, Tourism
Economics and the Airline Product (pp. 85-103). Springer, Cham.
Cui, T. H., &Mallucci, P. (2016). Fairness ideals in distribution channels. Journal of Marketing
Research, 53(6), 969-987.
Hoekman, B., & Shepherd, B. (2017). Services productivity, trade policy and manufacturing
exports. The World Economy, 40(3), 499-516.
Huang, R., &Sarigöllü, E. (2014). How brand awareness relates to market outcome, brand
equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-
132). Springer, New York, NY.
Klassen, K. J., Lisowsky, P., &Mescall, D. (2017). Transfer pricing: Strategies, practices, and tax
minimization. Contemporary Accounting Research, 34(1), 455-493.
Mayer, T., Melitz, M. J., &Ottaviano, G. I. (2016). Product mix and firm productivity responses
to trade competition (No. w22433). National Bureau of Economic Research.
McAuliffe, R. E. (2015). Product Life Cycle. Wiley Encyclopedia of Management, 1-1.

32MARKETING
O’Neill, P., Sohal, A., & Teng, C. W. (2016). Quality management approaches and their impact
on firms׳ financial performance–An Australian study. International Journal of
Production Economics, 171, 381-393.
Plank, P. (2018). Introduction. In Price and Product-Mix Decisions Under Different Cost
Systems (pp. 1-5). Springer Gabler, Wiesbaden.
Puga, D. (2017). The changing distribution of firms and workers across cities.
Qiu, T. (2014). Product diversification and market value of large international firms: A
macroenvironmental perspective. Journal of International Marketing, 22(4), 86-107.
Rajan, R., & Wang, Y. (2016). Obsolescence reduction through product segmentation (Doctoral
dissertation, Massachusetts Institute of Technology).
Sung, S. Y., & Choi, J. N. (2014). Do organizations spend wisely on employees? Effects of
training and development investments on learning and innovation in
organizations. Journal of organizational behavior, 35(3)s, 393-412.