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Running head: INTERNATIONAL MARKETING REPORT
International Marketing Report
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International Marketing Report
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1INTERNATIONAL MARKETING REPORT
Executive summary
Waitrose is one of the most polar supermarkets and grocery stores in the UK. It holds the royal
warrant for supplying groceries and wine and spirits to Queen Elizabeth II and Prince Charles. It
the 6th biggest supermarket chain in the country. Waitrose exports its products in many other
countries, including Singapore. In the plan for expanding the business in Singapore, various
market analysis tools have been applied in the research report. The company’s internal
environment and competitiveness are analyzed using Porter’s value chain and SWOT analysis,
external environment was analyzed using PESTLE and Porter’s five forces. From the porter’s
generic strategy analysis, it is seen that the cost leadership will be most appropriate for Waitrose
to put a foot in the market. Direct investment in Singapore will be best for the company for
market entry. It will apply 7P’s of marketing mix for appropriate marketing plan to capture the
new market of Singapore.
Executive summary
Waitrose is one of the most polar supermarkets and grocery stores in the UK. It holds the royal
warrant for supplying groceries and wine and spirits to Queen Elizabeth II and Prince Charles. It
the 6th biggest supermarket chain in the country. Waitrose exports its products in many other
countries, including Singapore. In the plan for expanding the business in Singapore, various
market analysis tools have been applied in the research report. The company’s internal
environment and competitiveness are analyzed using Porter’s value chain and SWOT analysis,
external environment was analyzed using PESTLE and Porter’s five forces. From the porter’s
generic strategy analysis, it is seen that the cost leadership will be most appropriate for Waitrose
to put a foot in the market. Direct investment in Singapore will be best for the company for
market entry. It will apply 7P’s of marketing mix for appropriate marketing plan to capture the
new market of Singapore.
2INTERNATIONAL MARKETING REPORT
Table of Contents
1. Introduction..................................................................................................................................3
2. Market environment analysis.......................................................................................................3
2.1 Internal environment analysis................................................................................................4
2.1.1 Porter’s value chain analysis..........................................................................................4
2.1.2 SWOT analysis...............................................................................................................7
2.2 External environment analysis...............................................................................................9
2.2.1 PESTLE analysis............................................................................................................9
2.2.2 Porter’s five forces analysis..........................................................................................11
3. Porter’s generic strategy for competitive advantage.................................................................14
4. Mode of entry for Waitrose.......................................................................................................15
5. Marketing mix for Waitrose in Singapore.................................................................................15
6. Conclusion.................................................................................................................................18
References......................................................................................................................................19
Table of Contents
1. Introduction..................................................................................................................................3
2. Market environment analysis.......................................................................................................3
2.1 Internal environment analysis................................................................................................4
2.1.1 Porter’s value chain analysis..........................................................................................4
2.1.2 SWOT analysis...............................................................................................................7
2.2 External environment analysis...............................................................................................9
2.2.1 PESTLE analysis............................................................................................................9
2.2.2 Porter’s five forces analysis..........................................................................................11
3. Porter’s generic strategy for competitive advantage.................................................................14
4. Mode of entry for Waitrose.......................................................................................................15
5. Marketing mix for Waitrose in Singapore.................................................................................15
6. Conclusion.................................................................................................................................18
References......................................................................................................................................19
3INTERNATIONAL MARKETING REPORT
1. Introduction
Waitrose is one of the biggest chains of supermarkets in the UK. It is the food retail
division of UK’s biggest employee owned retail business, John Lewis Partnership. It had 352
branches across the country, including 30 ‘Little Waitrose’ convenience stores as of February
2015. The supermarket has been able to capture 5.1% share of the British market, which makes it
6th largest grocery retailer in the county (Waitrose.com 2018). The biggest competitive advantage
of Waitrose is the royal warrant for supplying groceries, spirits and wine to Queen Elizabeth II,
that is, to the royal palace and since 2011, to Prince Charles. This has given the company an up-
market status in the country.
Apart from having huge number of domestic stores, Waitrose has its business partners in
many countries across the world, including Dubai, in the Middle East. It operated in Falkland
Islands, Hong Kong, Chile, China, Australia, Bermuda, Barbados, Kuwait, Azerbaijan,
Caribbean, Malta, Ghana, and longest operation occurred in Isle of Man. In Singapore, they have
been operating in collaboration with Cold Storage supermarkets (Lees 2014). However, Waitrose
wants to expand its business in Singapore in its own name. The market research report focuses
on the internal and external environment analysis for the company, the competitive strategy
analysis, mode of entry analysis along with marketing mix for the company to enter the market
of Singapore.
2. Market environment analysis
Market or business environment refers to factors and forces, which affects Waitrose’s
ability for building and maintaining successful relationship with customers. There are internal
1. Introduction
Waitrose is one of the biggest chains of supermarkets in the UK. It is the food retail
division of UK’s biggest employee owned retail business, John Lewis Partnership. It had 352
branches across the country, including 30 ‘Little Waitrose’ convenience stores as of February
2015. The supermarket has been able to capture 5.1% share of the British market, which makes it
6th largest grocery retailer in the county (Waitrose.com 2018). The biggest competitive advantage
of Waitrose is the royal warrant for supplying groceries, spirits and wine to Queen Elizabeth II,
that is, to the royal palace and since 2011, to Prince Charles. This has given the company an up-
market status in the country.
Apart from having huge number of domestic stores, Waitrose has its business partners in
many countries across the world, including Dubai, in the Middle East. It operated in Falkland
Islands, Hong Kong, Chile, China, Australia, Bermuda, Barbados, Kuwait, Azerbaijan,
Caribbean, Malta, Ghana, and longest operation occurred in Isle of Man. In Singapore, they have
been operating in collaboration with Cold Storage supermarkets (Lees 2014). However, Waitrose
wants to expand its business in Singapore in its own name. The market research report focuses
on the internal and external environment analysis for the company, the competitive strategy
analysis, mode of entry analysis along with marketing mix for the company to enter the market
of Singapore.
2. Market environment analysis
Market or business environment refers to factors and forces, which affects Waitrose’s
ability for building and maintaining successful relationship with customers. There are internal
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4INTERNATIONAL MARKETING REPORT
and external environments of a firm. Porter’s value chain and SWOT Analyses will be used for
internal environment analysis and PESTLE and Porter’s five forces model are used for external
environment analysis for Waitrose for expanding its business in Singapore.
2.1 Internal environment analysis
Internal environment refers to the endogenous factors of Waitrose that influence the
business activities and profitability of the retailer. To expand the business in Singapore, Waitrose
must analyze the internal factors, such as, resources and competitive advantage, its strengths.
weaknesses, opportunities and threats to make a strategy accordingly.
2.1.1 Porter’s value chain analysis
Figure 1: Porter’s value chain analysis
(Source: Porter and Heppelmann 2014)
and external environments of a firm. Porter’s value chain and SWOT Analyses will be used for
internal environment analysis and PESTLE and Porter’s five forces model are used for external
environment analysis for Waitrose for expanding its business in Singapore.
2.1 Internal environment analysis
Internal environment refers to the endogenous factors of Waitrose that influence the
business activities and profitability of the retailer. To expand the business in Singapore, Waitrose
must analyze the internal factors, such as, resources and competitive advantage, its strengths.
weaknesses, opportunities and threats to make a strategy accordingly.
2.1.1 Porter’s value chain analysis
Figure 1: Porter’s value chain analysis
(Source: Porter and Heppelmann 2014)
5INTERNATIONAL MARKETING REPORT
Primary activities
Inbound logistics
The inbound logistics operations of Waitrose are big and complex and include the supply
of hundreds of product categories across 352 stores in the UK. It exploits the economies of scale
to create value for the customers. It invests regularly to enhance the inbound logistics system.
The payment system to the suppliers is monitored regularly so that there is no issues.
Operations
The company has two types of stores, one is the normal Waitrose outlet and the other is
the convenience store, named Little Waitrose. It also operates a website with online shopping
option. In both type of shopping options, it provides various categories, like, groceries,
entertainment, florist, gifts, pets, garden products, wine and spirits. Apart from that, Waitrose
provides cookery training to the interested people, good food guide, gift cards and loyal
membership.
Outbound logistics
Cost-effectiveness and flexibility of deliveries provide value for Waitrose regarding
outbound logistics. It provides home delivery options for online grocery shopping and in some of
the physical stores. It also adds up to the value for customers.
Sales and marketing
Primary activities
Inbound logistics
The inbound logistics operations of Waitrose are big and complex and include the supply
of hundreds of product categories across 352 stores in the UK. It exploits the economies of scale
to create value for the customers. It invests regularly to enhance the inbound logistics system.
The payment system to the suppliers is monitored regularly so that there is no issues.
Operations
The company has two types of stores, one is the normal Waitrose outlet and the other is
the convenience store, named Little Waitrose. It also operates a website with online shopping
option. In both type of shopping options, it provides various categories, like, groceries,
entertainment, florist, gifts, pets, garden products, wine and spirits. Apart from that, Waitrose
provides cookery training to the interested people, good food guide, gift cards and loyal
membership.
Outbound logistics
Cost-effectiveness and flexibility of deliveries provide value for Waitrose regarding
outbound logistics. It provides home delivery options for online grocery shopping and in some of
the physical stores. It also adds up to the value for customers.
Sales and marketing
6INTERNATIONAL MARKETING REPORT
Waitrose recently launched its new promotional food with a focus on the good food.
They have used the tagline ‘Great food is simple when you start with the best’ under the
campaign ‘Beautifully Simple’. It puts emphasis on the quality of food and its simplicity. As it
holds a position for supplying the best quality of food, sourced from local British farms, hence, it
aims to create customer value by offering the simple but quality food and make life better.
Service
Waitrose provides highest level of customer service and support. They have easy return,
refund and exchange policies for both the physical store and online purchases. They provide
24*7 customer support service regarding any query of the customers. Waitrose also offers
community service through their CSR programmes.
Support activities
Firm infrastructure
The infrastructure of Waitrose is of high quality and has state-of-the-art amenities and
appliances. With more than 350 stores across UK, and close to 30 convenience stores, Waitrose
maintains its infrastructure quite well. The warehouse has most modern facilities for storing
inventories. The shelves of the stores are always well stocked. The appliances are up-to-date and
monitored to keep the storage fresh.
Human resources
All the employees of Waitrose are under direct control of JLP. Waitrose employs full
time and part time workers and provide industry standard wage. The employees are given
Waitrose recently launched its new promotional food with a focus on the good food.
They have used the tagline ‘Great food is simple when you start with the best’ under the
campaign ‘Beautifully Simple’. It puts emphasis on the quality of food and its simplicity. As it
holds a position for supplying the best quality of food, sourced from local British farms, hence, it
aims to create customer value by offering the simple but quality food and make life better.
Service
Waitrose provides highest level of customer service and support. They have easy return,
refund and exchange policies for both the physical store and online purchases. They provide
24*7 customer support service regarding any query of the customers. Waitrose also offers
community service through their CSR programmes.
Support activities
Firm infrastructure
The infrastructure of Waitrose is of high quality and has state-of-the-art amenities and
appliances. With more than 350 stores across UK, and close to 30 convenience stores, Waitrose
maintains its infrastructure quite well. The warehouse has most modern facilities for storing
inventories. The shelves of the stores are always well stocked. The appliances are up-to-date and
monitored to keep the storage fresh.
Human resources
All the employees of Waitrose are under direct control of JLP. Waitrose employs full
time and part time workers and provide industry standard wage. The employees are given
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7INTERNATIONAL MARKETING REPORT
training for best quality customer service, as well as enhancing product knowledge, managing
supplies and inventories.
Technological development
Waitrose invests a lump sum for technological advancement and application. It has
launched its mobile app to make the customer experience all the more better and convenient. The
websites are continuously improved to provide seamless customer experience and highest value.
The self-checkout stations are being increased and maintained on a regular basis.
Procurement
The company procures raw materials and other supplies from local manufactures and
farmers as they promise to provide the products originated in the country. They maintain an
efficient and cost effective supply chain for procuring fresh and prepared products under
different categories.
2.1.2 SWOT analysis
Strengths Royal warrant for supplying groceries and spirits to the royal palace,
that is, Queen Elizabeth II and Prince Charles.
5.1% market share and 6th largest retailer in the UK with almost 352
stores and a website.
John Lewis partnership
training for best quality customer service, as well as enhancing product knowledge, managing
supplies and inventories.
Technological development
Waitrose invests a lump sum for technological advancement and application. It has
launched its mobile app to make the customer experience all the more better and convenient. The
websites are continuously improved to provide seamless customer experience and highest value.
The self-checkout stations are being increased and maintained on a regular basis.
Procurement
The company procures raw materials and other supplies from local manufactures and
farmers as they promise to provide the products originated in the country. They maintain an
efficient and cost effective supply chain for procuring fresh and prepared products under
different categories.
2.1.2 SWOT analysis
Strengths Royal warrant for supplying groceries and spirits to the royal palace,
that is, Queen Elizabeth II and Prince Charles.
5.1% market share and 6th largest retailer in the UK with almost 352
stores and a website.
John Lewis partnership
8INTERNATIONAL MARKETING REPORT
Popular advertising efforts
Strong brand identity
Success of the loyalty card, MyWaitrose, as disruptive innovation
Around 10000 employees across the nation
Awards and recognition
Weaknesses Intense competitions, such as, price wars and less profit margin
Reputation for providing higher priced and sometimes unaffordable or
too costly products
Opportunities Publicity of the royal warrant to gain more market share, locally and
globally
Success of the ‘Community Matters’ CSR activities to draw more
market attention even in the Singapore market
Efficient resources to utilize the market scope in Singapore
Threats Lagging behind in the local and global competition
Competition from already existing and popular supermarkets in
Singapore
Table 1: SWOT analysis for Waitrose
(Source: Author)
From the SWOT analysis of Waitrose, it can be said that the company has the biggest
publicity factor from its entitlement of the royal warrant. It has been chosen by the royal palace
to supply the groceries, wine and spirits and this acts as the biggest strength for the company for
any type of business venture, locally or globally. Along with strong brand identity, highest
Popular advertising efforts
Strong brand identity
Success of the loyalty card, MyWaitrose, as disruptive innovation
Around 10000 employees across the nation
Awards and recognition
Weaknesses Intense competitions, such as, price wars and less profit margin
Reputation for providing higher priced and sometimes unaffordable or
too costly products
Opportunities Publicity of the royal warrant to gain more market share, locally and
globally
Success of the ‘Community Matters’ CSR activities to draw more
market attention even in the Singapore market
Efficient resources to utilize the market scope in Singapore
Threats Lagging behind in the local and global competition
Competition from already existing and popular supermarkets in
Singapore
Table 1: SWOT analysis for Waitrose
(Source: Author)
From the SWOT analysis of Waitrose, it can be said that the company has the biggest
publicity factor from its entitlement of the royal warrant. It has been chosen by the royal palace
to supply the groceries, wine and spirits and this acts as the biggest strength for the company for
any type of business venture, locally or globally. Along with strong brand identity, highest
9INTERNATIONAL MARKETING REPORT
quality of supply and other strengths it can explore the opportunities in the Singaporean market
that has huge labor, huge demand for retail goods, and good economic condition of the citizens.
However, being a new entrant, Waitrose faces the risk of lagging in the competition from already
established supermarket.
2.2 External environment analysis
External environment are the exogenous factors and forces that affect the businesses of
Waitrose. The Singapore market is the external market and this analysis will highlight those
factors in the Singaporean market that would influence the business operations of Waitrose.
PESTLE analysis and Porter’s five forces analysis are described below.
2.2.1 PESTLE analysis
PESTLE is the external market analysis tool to analyze the political, economical, social,
technological, legal and environmental factors for a company. The PESTLE analysis for
Waitrose is as follows.
Political
Singapore is a democratic country and it is politically stable. That has reflected in peace
in the country and a better standard of living. Singapore is free from any beaurocratic corruption
and hence, the country has been a choice for foreign investors. The business opportunities have
improved over time. However, there are limitations on the freedom of speech for the opposition
parties and there is fear of legal suits on account of defamation from a speech or comment.
quality of supply and other strengths it can explore the opportunities in the Singaporean market
that has huge labor, huge demand for retail goods, and good economic condition of the citizens.
However, being a new entrant, Waitrose faces the risk of lagging in the competition from already
established supermarket.
2.2 External environment analysis
External environment are the exogenous factors and forces that affect the businesses of
Waitrose. The Singapore market is the external market and this analysis will highlight those
factors in the Singaporean market that would influence the business operations of Waitrose.
PESTLE analysis and Porter’s five forces analysis are described below.
2.2.1 PESTLE analysis
PESTLE is the external market analysis tool to analyze the political, economical, social,
technological, legal and environmental factors for a company. The PESTLE analysis for
Waitrose is as follows.
Political
Singapore is a democratic country and it is politically stable. That has reflected in peace
in the country and a better standard of living. Singapore is free from any beaurocratic corruption
and hence, the country has been a choice for foreign investors. The business opportunities have
improved over time. However, there are limitations on the freedom of speech for the opposition
parties and there is fear of legal suits on account of defamation from a speech or comment.
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10INTERNATIONAL MARKETING REPORT
Economic
Singaporean economy is a free-market or mixed market economy. It has developed very
rapidly in the past few decades. It has the highest per-capita income among the ASEAN
countries. Moreover, the lack of corruption in every sector has helped the economy reach
heights. The business environment is competitive and the workers are educated, motivated and
hardworking. Along with that, the government has invested a lump sum to diversify the
economy, which led to a rapid growth in tourism, pharmaceutical and many more sectors. It also
receives skilled and unskilled cheap labor from the neighboring countries. However, the country
is facing issues with rising labor cost in the recent past.
Social
The country follows traditional values in the social life. The literacy rate is high and
people are hard working. The population has a mixed culture from the natives and the
immigrants. They prefer service industry more than the manufacturing jobs. English is the
official medium for communication, making it easier for the foreign investors, and there are few
barriers for the multinational firms. However, there are some racial issues in the country.
Technological
Singapore is technologically advanced country. The fast change in the lifestyle and living
standard are accredited to the technological development. Internet has reduced the time and cost
of business and the Singaporean government has been investing in the technological field to
Economic
Singaporean economy is a free-market or mixed market economy. It has developed very
rapidly in the past few decades. It has the highest per-capita income among the ASEAN
countries. Moreover, the lack of corruption in every sector has helped the economy reach
heights. The business environment is competitive and the workers are educated, motivated and
hardworking. Along with that, the government has invested a lump sum to diversify the
economy, which led to a rapid growth in tourism, pharmaceutical and many more sectors. It also
receives skilled and unskilled cheap labor from the neighboring countries. However, the country
is facing issues with rising labor cost in the recent past.
Social
The country follows traditional values in the social life. The literacy rate is high and
people are hard working. The population has a mixed culture from the natives and the
immigrants. They prefer service industry more than the manufacturing jobs. English is the
official medium for communication, making it easier for the foreign investors, and there are few
barriers for the multinational firms. However, there are some racial issues in the country.
Technological
Singapore is technologically advanced country. The fast change in the lifestyle and living
standard are accredited to the technological development. Internet has reduced the time and cost
of business and the Singaporean government has been investing in the technological field to
11INTERNATIONAL MARKETING REPORT
provide much improved computer and internet service to the citizens. FDI has increased in the
technological sector. The technologically sophisticated and capital intensive industries are
supported and encouraged by the government for rapid development.
Legal
The Singaporean government facilitates the growth of e-commerce business, which is
beneficial for both the domestic and international online retailers. The other acts and regulations
are quite liberal for doing a good business in Singapore.
Environmental
Ministry of the Environment and Anti-Pollution Unit of the Singapore government work
efficiently to reduce the environmental footprints. Companies are mandated to follow CSR
policies. Shortage of water and pollution from transport are two major concerns for the country.
By analyzing these factors it can be said that Waitrose will have a positive external
environment while expanding its business in Singapore. There is not much legal or economic
barrier, rather a business supportive political, economical and social environment and
technological advancement of the country will be helpful for Waitrose.
2.2.2 Porter’s five forces analysis
This analysis tool is used to measure the industry rivalry, threat of substitutes, threat of
new entrants, bargaining power of the suppliers and buyers for any organization.
Threat of substitutes NTUC Fair Price shops, Prime supermarket, Sheng Siong,
Giant etc. provide substitute and similar products at lower
provide much improved computer and internet service to the citizens. FDI has increased in the
technological sector. The technologically sophisticated and capital intensive industries are
supported and encouraged by the government for rapid development.
Legal
The Singaporean government facilitates the growth of e-commerce business, which is
beneficial for both the domestic and international online retailers. The other acts and regulations
are quite liberal for doing a good business in Singapore.
Environmental
Ministry of the Environment and Anti-Pollution Unit of the Singapore government work
efficiently to reduce the environmental footprints. Companies are mandated to follow CSR
policies. Shortage of water and pollution from transport are two major concerns for the country.
By analyzing these factors it can be said that Waitrose will have a positive external
environment while expanding its business in Singapore. There is not much legal or economic
barrier, rather a business supportive political, economical and social environment and
technological advancement of the country will be helpful for Waitrose.
2.2.2 Porter’s five forces analysis
This analysis tool is used to measure the industry rivalry, threat of substitutes, threat of
new entrants, bargaining power of the suppliers and buyers for any organization.
Threat of substitutes NTUC Fair Price shops, Prime supermarket, Sheng Siong,
Giant etc. provide substitute and similar products at lower
12INTERNATIONAL MARKETING REPORT
prices
Threat of new entrants Waitrose itself is a new entrant in the already established
supermarket industry of Singapore.
The specialty to cater the up-market consumers with higher
priced but quality products might create opportunities for
new entrants in the market offering products at lower prices.
Bargaining power of buyers Buyer power is strong in the Singaporean market.
High concentration of buyer exists for the supermarkets,
especially for the NTUC Fair Price shops.
Waitrose has already captured some part of the market share
by supplying to Cold Storage, which could be beneficial
during business expansion.
Bargaining power of
suppliers
Waitrose prefers to provide the best quality products,
sourced from locally grown ingredients and local firms.
They must make contracts with the local suppliers for fresh
and prepared foods. Hence, the suppliers will have high
bargaining power.
Industry rivalry High competition from already established and popular
super markets, such as, NTUC Fair Price shops, Prime
supermarket, Sheng Siong, Giant, Cold Storage, Isetan,
Jasons Market Place, and Meidi-Ya Liang Court Singapore.
Table 2: Porter's five forces analysis for Waitrose
prices
Threat of new entrants Waitrose itself is a new entrant in the already established
supermarket industry of Singapore.
The specialty to cater the up-market consumers with higher
priced but quality products might create opportunities for
new entrants in the market offering products at lower prices.
Bargaining power of buyers Buyer power is strong in the Singaporean market.
High concentration of buyer exists for the supermarkets,
especially for the NTUC Fair Price shops.
Waitrose has already captured some part of the market share
by supplying to Cold Storage, which could be beneficial
during business expansion.
Bargaining power of
suppliers
Waitrose prefers to provide the best quality products,
sourced from locally grown ingredients and local firms.
They must make contracts with the local suppliers for fresh
and prepared foods. Hence, the suppliers will have high
bargaining power.
Industry rivalry High competition from already established and popular
super markets, such as, NTUC Fair Price shops, Prime
supermarket, Sheng Siong, Giant, Cold Storage, Isetan,
Jasons Market Place, and Meidi-Ya Liang Court Singapore.
Table 2: Porter's five forces analysis for Waitrose
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(Source: Author)
From the above analysis, it can be inferred that, Waitrose will face hard competition from
the existing supermarkets in Singapore. However, a section of the market is familiar with the
brand Waitrose as they have been supplying products to its client Cold Storage. This buyer
power will be beneficial for them during expansion. On the other hand, Waitrose must make
contacts with local farms and farmers for fresh, locally grown food products and local suppliers
for other goods. Since, they are a new entrant in the market; the suppliers will have a higher
bargaining power. There is high threat of substitutes as other established supermarkets, operating
for a long time in Singapore, such as, NTUC Fair Price shops, provide quality products at a
cheaper price. Regarding the threat of new entrants, Waitrose itself will be the new entrant in the
Singaporean supermarket industry and hence, they will create the threat to the other players.
However, since it generally caters to the up-market consumers with higher priced quality
products; any other firm can enter the market with lower price strategy.
(Source: Author)
From the above analysis, it can be inferred that, Waitrose will face hard competition from
the existing supermarkets in Singapore. However, a section of the market is familiar with the
brand Waitrose as they have been supplying products to its client Cold Storage. This buyer
power will be beneficial for them during expansion. On the other hand, Waitrose must make
contacts with local farms and farmers for fresh, locally grown food products and local suppliers
for other goods. Since, they are a new entrant in the market; the suppliers will have a higher
bargaining power. There is high threat of substitutes as other established supermarkets, operating
for a long time in Singapore, such as, NTUC Fair Price shops, provide quality products at a
cheaper price. Regarding the threat of new entrants, Waitrose itself will be the new entrant in the
Singaporean supermarket industry and hence, they will create the threat to the other players.
However, since it generally caters to the up-market consumers with higher priced quality
products; any other firm can enter the market with lower price strategy.
14INTERNATIONAL MARKETING REPORT
3. Porter’s generic strategy for competitive advantage
Figure 2: Porter’s generic strategy
(Source: Tanwar 2013)
With the use of Porter's Generic Competitive Strategies, Waitrose will determine the
ways of competing in the Singaporean supermarket retail industry. The relative position of
Waitrose within the industry will determine its profitability and competitive advantage. Among
the three different strategies for gaining competitive advantage, Waitrose will choose the cost
leadership strategy. With this, it can cater to broad target market in Singapore by offering lower
cost. Waitrose can capture a bigger share of the new market by being a low cost producer. With
the pursuit of the economies of scale, proprietary and advanced technology, and high level of
capital, Waitrose will be able to access the high quality and locally grown raw materials. Since
3. Porter’s generic strategy for competitive advantage
Figure 2: Porter’s generic strategy
(Source: Tanwar 2013)
With the use of Porter's Generic Competitive Strategies, Waitrose will determine the
ways of competing in the Singaporean supermarket retail industry. The relative position of
Waitrose within the industry will determine its profitability and competitive advantage. Among
the three different strategies for gaining competitive advantage, Waitrose will choose the cost
leadership strategy. With this, it can cater to broad target market in Singapore by offering lower
cost. Waitrose can capture a bigger share of the new market by being a low cost producer. With
the pursuit of the economies of scale, proprietary and advanced technology, and high level of
capital, Waitrose will be able to access the high quality and locally grown raw materials. Since
15INTERNATIONAL MARKETING REPORT
Waitrose is the new player in the supermarket retail of Singapore, they will not gain benefit by
product differentiation and focus strategies, until they establish a brand name. Thereby, cost
leadership strategy will be most appropriate for Waitrose to expand business in Singapore.
4. Mode of entry for Waitrose
Waitrose will adopt the direct investment strategy for entering into the Singapore
supermarket retail. Since, the political and economical environment of Singapore is supportive
for business growth, and FDI is encouraged with flexible regulations, hence, Waitrose must take
those opportunities to invest directly in Singapore. The trade openness policy of the Singapore
government helps the foreign investors in many ways and hence, the net inflow of FDI to
Singapore is very high. In July 2017, the FDI inflow was SGD 23354.1 million (). With direct
investment, Waitrose can enter the market with its established brand name and reputation,
developed in the UK market. It can also take advantage of the liberal policies regarding foreign
investment. It will open stores across the country and will launch a website for online retail with
all the product sections they provide to the UK consumers. Waitrose already exports its home
brand products to Cold Storage, which is sold from the shelves of the store. Thus, while
expanding business in its own name, direct investment in the Singapore market will be the most
appropriate strategy for Waitrose.
5. Marketing mix for Waitrose in Singapore
Waitrose will follow the 7P’s of marketing strategy for the Singaporean supermarket and
grocery retail industry. The 7P’s of marketing mix includes product, price, place, promotion,
people, process and physical evidence.
Waitrose is the new player in the supermarket retail of Singapore, they will not gain benefit by
product differentiation and focus strategies, until they establish a brand name. Thereby, cost
leadership strategy will be most appropriate for Waitrose to expand business in Singapore.
4. Mode of entry for Waitrose
Waitrose will adopt the direct investment strategy for entering into the Singapore
supermarket retail. Since, the political and economical environment of Singapore is supportive
for business growth, and FDI is encouraged with flexible regulations, hence, Waitrose must take
those opportunities to invest directly in Singapore. The trade openness policy of the Singapore
government helps the foreign investors in many ways and hence, the net inflow of FDI to
Singapore is very high. In July 2017, the FDI inflow was SGD 23354.1 million (). With direct
investment, Waitrose can enter the market with its established brand name and reputation,
developed in the UK market. It can also take advantage of the liberal policies regarding foreign
investment. It will open stores across the country and will launch a website for online retail with
all the product sections they provide to the UK consumers. Waitrose already exports its home
brand products to Cold Storage, which is sold from the shelves of the store. Thus, while
expanding business in its own name, direct investment in the Singapore market will be the most
appropriate strategy for Waitrose.
5. Marketing mix for Waitrose in Singapore
Waitrose will follow the 7P’s of marketing strategy for the Singaporean supermarket and
grocery retail industry. The 7P’s of marketing mix includes product, price, place, promotion,
people, process and physical evidence.
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16INTERNATIONAL MARKETING REPORT
Figure 3: 7P's of marketing
(Source: Jain 2013)
Product
Variety of differentiated products, that includes fresh groceries, packaged and prepared
foods, wine and spirits, and gifts, florists, garden, pets, entertainment products constitute the
product portfolio of Waitrose in the UK. They will maintain the same structure and product
categories in the Singapore market also.
Price
Waitrose provides general average and competitive pricing in the UK market for high
quality products, while it will adopt the lower pricing strategy in the Singaporean market as it
will be a new player in the industry. Higher price will not be beneficial for Waitrose while
expanding in a new market.
Figure 3: 7P's of marketing
(Source: Jain 2013)
Product
Variety of differentiated products, that includes fresh groceries, packaged and prepared
foods, wine and spirits, and gifts, florists, garden, pets, entertainment products constitute the
product portfolio of Waitrose in the UK. They will maintain the same structure and product
categories in the Singapore market also.
Price
Waitrose provides general average and competitive pricing in the UK market for high
quality products, while it will adopt the lower pricing strategy in the Singaporean market as it
will be a new player in the industry. Higher price will not be beneficial for Waitrose while
expanding in a new market.
17INTERNATIONAL MARKETING REPORT
Place
Waitrose will launch its business with initially 5 stores across the island country and its
website with online shopping opportunity. By evaluating the business scenario and profits for
four quarters, it will make strategy for further expansion. Other than that, it will continue
exporting its products to Cold Storage for sales.
Promotion
Waitrose will publish its advertisements in newspapers, flyers, magazines, billboards and
hoardings, television, radio, social media and YouTube. It will air celebrity endorsements, and
provide 50% discounts on the total bill amount to the first 100 shoppers in every five outlets on
the day of launch. For the first week, they will provide extra 10% off for all the shoppers. They
will also give a lucky draw coupon for the customers to win good prizes.
People
The citizens of Singapore and the tourists are the target market for Waitrose. The
company will hire local people in all its positions and will train them for best quality customer
service.
Physical evidence
Waitrose will launch the loyalty membership card MyWaitrose in Singapore also, similar
to the UK stores. The employees will be given uniform with the green logo of Waitrose. They
will also keep stationeries with the logo.
Place
Waitrose will launch its business with initially 5 stores across the island country and its
website with online shopping opportunity. By evaluating the business scenario and profits for
four quarters, it will make strategy for further expansion. Other than that, it will continue
exporting its products to Cold Storage for sales.
Promotion
Waitrose will publish its advertisements in newspapers, flyers, magazines, billboards and
hoardings, television, radio, social media and YouTube. It will air celebrity endorsements, and
provide 50% discounts on the total bill amount to the first 100 shoppers in every five outlets on
the day of launch. For the first week, they will provide extra 10% off for all the shoppers. They
will also give a lucky draw coupon for the customers to win good prizes.
People
The citizens of Singapore and the tourists are the target market for Waitrose. The
company will hire local people in all its positions and will train them for best quality customer
service.
Physical evidence
Waitrose will launch the loyalty membership card MyWaitrose in Singapore also, similar
to the UK stores. The employees will be given uniform with the green logo of Waitrose. They
will also keep stationeries with the logo.
18INTERNATIONAL MARKETING REPORT
6. Conclusion
The supermarket and grocery industry of Singapore is a booming market. Supported by
the trade openness and liberal policies for business by the Singapore government and a stable
economy, the country offers good scopes for profitable business for the local as well as
international investors. Waitrose is 6th largest supermarket and grocery retailer in the UK. It
exports its products to Cold Storage supermarket in Singapore. However, Waitrose will be
expanding its business in Singapore through direct investment. It will open 5 stores and launch a
website in Singapore in the original brand name. The company has high amount of capital and a
biggest strength of holding the royal warrant in UK, which is beneficial for international
expansion, while lag in the global competition is a weakness. It will adopt the cost leadership
strategy for gaining competitive advantage, as there is high competition from the existing and
popular supermarkets like NTUC Fair Price Shops. With the appropriate use of 7P’s of
marketing mix, Waitrose aims to target the consumers of all income groups and the tourists to
expand its business in Singapore.
6. Conclusion
The supermarket and grocery industry of Singapore is a booming market. Supported by
the trade openness and liberal policies for business by the Singapore government and a stable
economy, the country offers good scopes for profitable business for the local as well as
international investors. Waitrose is 6th largest supermarket and grocery retailer in the UK. It
exports its products to Cold Storage supermarket in Singapore. However, Waitrose will be
expanding its business in Singapore through direct investment. It will open 5 stores and launch a
website in Singapore in the original brand name. The company has high amount of capital and a
biggest strength of holding the royal warrant in UK, which is beneficial for international
expansion, while lag in the global competition is a weakness. It will adopt the cost leadership
strategy for gaining competitive advantage, as there is high competition from the existing and
popular supermarkets like NTUC Fair Price Shops. With the appropriate use of 7P’s of
marketing mix, Waitrose aims to target the consumers of all income groups and the tourists to
expand its business in Singapore.
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