Determining the Target Market for Waitrose & Partners in the European Market

This article discusses the factors to consider when determining the target market for Waitrose & Partners in the European market, including political, economic, social, technological, legal, and environmental factors. It also explores the tariff regulations and custom duties in the EU market.

International trade

TABLE OF CONTENTS
The Target Market.......................................................................................................................2
REFERENCES................................................................................................................................6

The Target Market
Waitrose & Partners is a brand of British supermarkets who want to enter into European
market and for that there is a need to determine the target market. Thus, there is a need to
determine the external environment of a country which is as mentioned below:
Factors Description
Political The political situation of the European market and UK is good because it has
a policy to control food production under Common Agricultural Policy. Also,
allow the free movement of EU citizens throughout member countries and
further promotes the easier trade between EU countries which further boost
the economies (Pestle analysis of European Union (EU), 2020). Moreover
the European Union also has various initiatives in order to coordinate
activities with member states. Apart from this, due to pandemic, entire market
affected at its worst and as a result countries are also expected to suffer
negative growth due to imbalance trade between state and market.
Economical The economy of the country is stable from many years but at the starting of
2020 (pandemic), there is a continuous fluctuation within a market and GDP
of a country is also decline. Moreover, the unemployment is also increases
because of migration and this affect the image of a country in opposite
manner. It is the single market which removes tariffs and reduces
administrative liabilities by setting one rule with all participating states.
However, lockdown in 2020 destroyed most of the business and economy
also affected the entire business adversely.
Social Europe shared a rich heritage and EU works to support and preserve it. Also
the perception of a people keep fluctuated and that is why, it become difficult
for the companies to comply with the same and offer the best variety of
products (Grübler and Reiter, 2021). Though there are ranges of companies
who conduct survey in order to determine the need and meet the same.
However EU faces different challenges regarding social factors such that
female employment rate is low than men due to family responsibility, youth
unemployment, aging population etc. Though countries are tries to offer jobs

in order to minimize the youth unemployment.
Technological EU has excellent facilities in terms of science and technology (Achinas and
et.al., 2019). Also, it has a countries that recognized as most technologically
advanced countries which includes Germany, Sweden, Finland etc. Also, the
countries have strong IT sectors that assist business to operate in any country.
On the other side, there are some companies like Apple, Alibaba belong to
USA and China, this shows that country is suffer from a lack of IT skilled
work forces. That is why, it has to speed up in artificial intelligence
revolution, as during pandemic entire world is depend upon techniques and as
a result, they are able to compete within a market.
Legal EU market has their own legal system which is separate from international
law and also followed by members. Such that countries operating with
European market have to comply with employment laws and minimum
wages, otherwise they have to pay penalty as defined within laws. Further, it
is also examined that in each countries, these laws are changes and it is the
duty of a companies to comply with such laws in order to meet the defined
aim.
Environment The countries under EU market ensured that they comply with all the
essential laws in order to protect their environment, though EU faces issue of
air pollution that also causes risk to public health (Fozer and et.al., 2017).
That is why, government ensure that all the companies operating within EU
market should fairly meet air quality standards and also make measured in
order to minimize the effect of air pollution upon public. Also, the companies
operating under these market also implement strategies of waste management
and dumping so that environment of a country remain protective.
Tariff &
Regulations
The tariff rate is different from one product to another but it is common to all
EU companies. Also, the rate of tariff is depending upon the economic
situation, when a product or a company entered into EU, they need to declared
to customs as per the Combined Nomenclature. Moreover, the products must

also classified under a tariff code contain information regard to duty rates and
other levies. The EU import tariff is considered lowest in the world and if a
country wants to enter within this market, they have to obliged with the defined
laws and regulation (Dhingra, Freeman and Huang, 2021). It is also realized
that EU benefits from being one of the open economies within world such that
company have to pay zero tariff when enter into EU. It is possible only for those
countries with which EU has free trade agreements. Otherwise, laws must be
complied by the companies in order to enter within EU market. In the context of
Waitrose & Partners who want to enter into EU market must adhere with the
defined laws and also pay the defined tariff.
Custom
Duties
Custom duties are imposed at a certain point when a product or a company
crossing a national border. However, it is prohibited by EU law and even there
is no custom duties to be paid when a country buying any product from a
European Union. Though in many countries the tax is imposed for specific
products which is actually used by government in order to raise the revenue,
safeguard domestic industries as well as regulate the movement of goods
(Simone, 2021). So, it is analyzed that there is no custom duties is imposed by
the Waitrose & Partners in order to enter within a market because it helps them
to minimize the extra expenses in the form of tariff and custom duties. On the
other side, VAT is defined for each product because to establish or operate
within EU, each product is normally charged (VAT) on the cost of shipping or
carriage. Therefore, such funds used by government in order to increase their
revenue.
The target market of Waitrose & Partners are middle class people who are looking for
high quality product and service, also there are main competitor of a firm but it has an ability to
gain the market share and offered product at reasonable rate without compromising its quality.
This is supported by Pestle analysis because it is examined that with the help of social factors,

most of the customer change their perception towards a business (Garcia, 2021). That is why,
company have to ensure that they offer unique products so that new customers will be attracted
towards it. On the other side, to enter into EU market, company also uses effective marketing
tool along with some free samples to the users. This in turn helps to meet the defined aim and
attract target market as well.
In addition to this, it is also examined that the political and economic situation of the
country is not stable due to Covid. However, earlier the economy of the country is stable such
that it provides an opportunity to establish new business within a market. Also, it is examined
that due to sudden change in the external environment, company have to develop strategy that
assist to operate within EU market such that it can export products at reasonable rates which
helps to meet the defined aim of a customer (Kalinichenko, 2021). In addition to this, as per the
legal factors, Waitrose & Partners should also ensure that it must complied with the laws and
regulation defined by government in order to run effectively. Also, through marketing company
should not mislead the information because it might affect the overall performance as well as its
brand image.
Beside this, through technological factor it is examined that EU has enough skilled
individuals who uses advance technology in order to operate the business successfully. In the
same way to attract target market within EU, Waitrose & Partners also uses different marketing
tools which includes social media and online website. It is also examined that due to negative
reviews, the brand image of a quoted firm might affected and this is why, company must develop
strategy to cope with such issue, otherwise it decrease the customer base. Furthermore, it is also
determined that through external environment factor, company determine the environment is
suitable for the company to operate within new market or not. Also, the individual of EU are
financially strong and that is why, they can buy the products from cited firm because it does not
compromise with quality over quantity.
Also, EU market suffer from the air pollution as specified within Environmental factor
and that is why, while establishing its unit over other country, it is essential for the company to
provide waste management system. This in turn helps to attract target market because people in
EU are also conscious towards environment issues and that is why, company should also have

focused upon developing strategies that do not cause any negative impact upon business brand
image.
REFERENCES
Books and Journals
Achinas, S. and et.al., 2019. A PESTLE analysis of biofuels energy industry in
Europe. Sustainability. 11(21). p.5981.
Dhingra, S., Freeman, R. and Huang, H., 2021. The impact of non-tariff barriers on trade and
welfare (No. dp1742). Centre for Economic Performance, LSE.
Fozer, D. and et.al., 2017. Life cycle, PESTLE and multi-criteria decision analysis of CCS
process alternatives. Journal of cleaner production. 147. pp.75-85.
Garcia, M., 2021. THE FUTURE OF EU TRADE POLICY IN TURBULENT
TIMES. European Futures: Challenges and Crossroads for the European Union of
2050. 1. p.131.
Grübler, J. and Reiter, O., 2021. Non-Tariff Trade Policy in the Context of Deep Trade
Integration: An Ex-Post Gravity Model Application to the EU-South Korea
Agreement. East Asian Economic Review. 25(1). pp.33-71.
Kalinichenko, P., 2021. The EU and Russia: Old Legal Grounds for New “Selected
Engagement” Relations. In EU External Relations Law (pp. 253-271). Springer, Cham.
Simone, P., 2021. EU-Turkey Association Law and Its Status in the EU Legal Order. Eu/Turkey
Relations in the Shadows of Crisis: A Break-Up Or Revival?, p.25.
Online
Pestle analysis of European Union (EU). 2020. [Online]. Available through:
<https://howandwhat.net/pestel-analysis-european-union-eu/ >.