Global Marketing Report for Wesfarmers' Coles in Germany

Running head: GLOBAL MARKETING
Global Marketing
Student’s name:
Name of the university:
Author’s note:

GLOBAL MARKETING
Table of Contents
1.0 Introduction to report.................................................................................................................2
2.0 Summaries from assignment one...............................................................................................2
3.0 Screening of market selection....................................................................................................3
3.1. The five stages of overseas market selection process...........................................................3
3.1.1. Reason to choose country..............................................................................................4
3.2. Objectives.............................................................................................................................5
4.0 Alternative market entry strategies............................................................................................3
Target market selection, positioning, marketing mix options.....................................................5
4.1. Alternative target market selection, positioning...................................................................8
4.2. Market selection process.....................................................................................................10
4.2.1. Target market selection process through alternative entry modes to the country of
choice.....................................................................................................................................10
4.3. Outline possible positioning for each of target markets in entry mode..............................10
4.4. Alternative generic strategies.............................................................................................11
5. Recommendations for a preferred strategy for Country............................................................11
5.1. Market entry mode..............................................................................................................11
5.2. Target market......................................................................................................................12
5.3. Positioning strategy............................................................................................................12
5.4. Generic strategy..................................................................................................................13
Bibliography and Reference List...................................................................................................15

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1.0 Introduction to report
Global marketing is the process of redefining the marketing strategies of the company to
adapt to the situations in other countries. As stated by Peng (2016), global marketing is about
taking commercial advantage of a country by establishing the global operational difference. The
companies always judge the opportunities and similarities so that they can meet the global
objectives set by the management. In this assessment, Wesfarmers’ subsidiary Coles is chosen to
market in Germany. International entry modes are described along with it is necessary to
recognise the potential market segments and target market in chose country. In this assessment,
choice of STP strategies for Wesfarmers’ Coles is given for each of the target market segments.
In addition, recommended positioning strategies for each of the target market are also provided.
2.0 Summaries from assignment one
In the assessment 1, external environmental analysis of Germany has been conducted
where political, economic, social, technological, legal and environmental analysis has been
analysed in light of the retail industry. Germany provides a stable economy as the GDP of
Germany reached $4.171 trillion (Heritage.org, 2018). Political decisions of Germany ensure the
bigger companies can do business effectively. Market analysis of Germany's retail industry has
been conducted. Germany has 20% of the purchasing power in Europe and the retail industry in
Germany mainly shows the characteristics of Oligopoly. Competition in the retail industry in
Germany shows the competitors are mainly regional companies like EDEKA, REWE, METRO
and the European large retailers Aldi and Lidl are also in Germany. In the final section of
assessment 1, organisational analysis has been conducted where Coles' strengths of being in the
market for more than 100 years is shown. In addition, Germany has the fourth largest GDP in the

GLOBAL MARKETING
world and Germany will also provide 80 million customers to Coles. On the other side,
weaknesses of Coles lie in the dispute among the stakeholders. In the European market, Coles
does not have any experience.
3.0 Screening of a market selection
3.1. The five stages of the overseas market selection process
Domestic regulation and management preferences: Before setting up the international
market, the firm needs to understand which international markets are of no interest to the firm. In
addition, the organisation needs to follow governments exercise in some of the degrees of control
over the firms and it should conduct the business. Restrictions are changing and the firm needs to
track the trade barrier.
Initial entry assessment: Initial entry assessment can be done by analysing macro-
environmental factors in international markets. External environmental analysis helps to identify
the most attractive foreign market. According to Shenkar, Luo & Chi (2014), expanding to the
new market is an effective way to bring growth for the business and the entry assessment starts
with defining the market and performing the market analysis.
Competitive environment: The firms have to identify foreign markets and the
competitors in the market. If the competitors are high in the market, both foreign and domestic,
the new companies have to take the solid marketing strategies. High competition creates
substantial barriers for the company.

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Market responsiveness: The firm needs to understand certain activities which help in
marketing efforts to gain the satisfactory market share. Market responsiveness allows marketing
activities to establish product or service in the marketplace.
Internal trade-off analysis: When the firms find that the domestic market is no longer
attractive and they opt to consider trade-off to meet the objectives so that they can gain the
competitive advantage. Cultural similarities between the two countries will help to sell the
products and the trading gets easier if the products heavily on the geographical proximity
(Brannen, Piekkari & Tietze, 2017). The firms can influence technological and e-commerce
advances.
3.1.1. Reason to choose a country
Germany represents 20% of purchasing power in the continent of Europe and retail
marketing of Germany has the turnover of EURO 512 billion (Junker & Wittenberg, 2017).
Retail market of Germany is extremely competitive; however, the retail market of Germany
shows the positive growth during 2014. Wesfarmers' Coles chooses Germany as it provides a
strategic location in the centre of Europe. Germany provides political stability and it also gives a
good anchor in international relations. Germany has the largest population of the European
Union and Germany has the best infrastructure among the developed European Union. Germany
provides a strong manufacture basis and Germany earns one-third of the GDP from the
manufacturing business. Germany has the strong export as it has the high range products with
diversified clients. Germany has a highly-qualified workforce as youths are educated mostly.
Germany provides the consolidated public finances and competitive taxation that can help the
foreign businesses to flourish. In World Investment Report, Germany won the 8th place in the
world and Germany is the world’s 11th top economy in terms of the inflow of the business

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(Kundnani, 2017). Among the 190 economies, Germany is ranked 20th in the ease-of-doing-
business. Most importantly, Germany provides the proactive business climate which develops
the economy in last few years.
3.2. Objectives
Mission statement:
Coles thinks itself to be an innovative industry leader that supplies customers with value,
superior service and convenience. Wesfarmers' Coles focuses on the customer proposition,
innovation and operating excellence. Coles wants to deliver a satisfactory return to the
stakeholders and it has developed unique, disciplined business and highly-focused.
SMART objective:
Financial objective:
To cross the break-even point within 1 year and achieve 5% profitability within 2022
Specific Coles sets the target of achieving 5% profitability
Measurable This objective can be measured by keeping the financial records of Coles'
business in Germany and the accounts department will do the work
Achievable This objective is achievable by doing the extensive marketing and opening
new retail stores in Germany in different locations
Realistic This objective is realistic as it will help the organisation to grab the profit
within a short period of time
Time-bound This objective is achievable within 2022