Marketing Mix Strategy for Wesfarmers' Coles in Germany

This article discusses the marketing mix strategy for Wesfarmers' Coles in Germany, including the product strategy, pricing strategy, place strategy, communication promotional mix, and economic evaluation. It also covers the target market, positioning strategy, and implementation and control plan.

Thanuja Gamaethige (Student ID No. 11625275) 1
MKT 550 – GLOBAL MARKETING
Assessment – 03
Marketing Mix
Student Name - Thanuja Isuru Gamaethige
Student No.- 11625275

Thanuja Gamaethige (Student ID No. 11625275) 2
Contents
Executive summary.....................................................................................................................................4
1.0 Introduction...................................................................................................................................4
1.1 Overview of Wesfarmers Coles..........................................................................................................5
1.2 The entry point into German.............................................................................................................5
1.3 The Marketing Objectives..................................................................................................................5
1.4Target Market.....................................................................................................................................6
1.5 Positioning strategy...........................................................................................................................6
2.0 Marketing Mix...............................................................................................................................7
2.1 Product Strategy............................................................................................................................7
2.1.1 Product features/attributes........................................................................................................9
2.1.2 Product quality...........................................................................................................................9
2.1.3 Product design and style.............................................................................................................9
2.1.4 Packaging..................................................................................................................................10
2.1.5 Labeling.....................................................................................................................................10
2.1.6 Branding...................................................................................................................................10
2.1.6 Product lifecycle.......................................................................................................................10
2.2 Pricing Strategy............................................................................................................................11
2.3 Place strategy..............................................................................................................................12

Thanuja Gamaethige (Student ID No. 11625275) 3
2.3.1 Place of Retailers......................................................................................................................12
2.3.2 Distribution channels................................................................................................................12
2.3.3 Intensity of Distribution............................................................................................................13
2.4 Communication Promotional Mix....................................................................................................13
2.4.1 Advertising................................................................................................................................14
2.4.2 Sales promotion........................................................................................................................14
2.4.3Personal selling..........................................................................................................................14
2.4.4 Publicity....................................................................................................................................15
2.4.5 Public Relations.........................................................................................................................15
People....................................................................................................................................................15
2.5.1 Recruitment..................................................................................................................................15
2.5.1 Training.........................................................................................................................................15
2.5.1 Occupational health and safety laws............................................................................................15
3.0 Economic Evaluation........................................................................................................................16
1. Need identification..........................................................................................................................16
2. Information search..........................................................................................................................16
3. Alternative evaluation.....................................................................................................................16
4. Purchase decision...........................................................................................................................16
5. Post-purchase behavior..................................................................................................................17
5.0 Total Market Calculation.................................................................................................................18

Thanuja Gamaethige (Student ID No. 11625275) 4
6.0 Implementation and Control...........................................................................................................19
6.1.1 Business Environment Analysis.....................................................................................................21
6.1.2 Market Survey..............................................................................................................................22
6.1.3 Research Analysis.........................................................................................................................23
6.1.4 Sourcing local manufacturers.......................................................................................................23
6.1.5 Production sampling.....................................................................................................................23
6.1.6 Analyzing the sample result..........................................................................................................23
6.1.7 Market Analysis............................................................................................................................24
6.1.8 Competitors Analysis....................................................................................................................24
6.1.9 Sourcing effective local distributors..............................................................................................24
6.1.10 Recruitment...............................................................................................................................24
6.1.11 Training.......................................................................................................................................25
6.2 Communication Plan........................................................................................................................25
6.2.1 Event sponsor planning................................................................................................................26
6.2.2 Social media creating....................................................................................................................26
6.2.3 Sale promotion planning...............................................................................................................26
6.2.4 Cost analysis.................................................................................................................................27
6.2.5 Estimate Price...............................................................................................................................27
6.2.6 Product launch..............................................................................................................................27
6.2.7 Feedbacks.....................................................................................................................................27

Thanuja Gamaethige (Student ID No. 11625275) 5
6.2.8 Annual report...............................................................................................................................28
6.3 Monitoring of Action Plan................................................................................................................28

Thanuja Gamaethige (Student ID No. 11625275) 6
Executive summary
The marketing mix strategy has been created for Wesfarmers’ subsidiary company Coles
to establish and secure market share in Germany. It will also inform employees of what their
roles in the growth of the company are. Although Wesfarmers has been in operations in Australia
for many years, it has the potential for growth in the European market. The Germany population
provides a good number of potential customers and the urban population being the target market.
Coles will use different market mix strategies focusing on the 4Ps to establish themselves in the
market. Exploring different opportunities through research and learning the market environment.
The company through its slogan ‘serving the people better’ will deliver value to its established
customer in the German market. With joint venture, the company will increase win over new
customers and retain them.
1.0 Introduction
Globalization provides a wider market platform for companies’ products and services.
Global marketing refers to redefining marketing strategies of a business entity to adapt to the
different market environment in various countries. Global marketing refers to taking the
commercial advantage of a country by establishing global operational differences (Peng, 2016).
Companies analyses the global opportunities and similarities to meet the meet their global
objectives. Wesfarmers’ subsidiary Coles Company has targeted the German market. The
company has recognized the need to identify its target market and the potential segments of the
market in Germany to reach its objectives in the international market entry. This is a developed
international marketing plan for Cole in the German market.

Thanuja Gamaethige (Student ID No. 11625275) 7
1.1 Overview of Wesfarmers Coles
Based in Perth Australia, Wesfarmers is one of the biggest companies founded in 1914 as
a co-operative entity producing merchandises and services. It produces various products such as
chemical, safety products, fertilizers, and retail shops. According to Vidovich and Currie, (2012),
it is one of the biggest private employers in Australia with over 220,000 employees. It has been
listed in Australian Securities Exchange in the year 1984 and has some subsidiaries such as
Coles attached to it. Coles has been analyzed, and its strength in being in the market has shown
its potential in growth. Germany with the fourth largest GDP in the world with 80 million
potential customers provides a good market base for Coles. The dispute among the stakeholders
of Coles and lack of experience in the European market are some of the major challenges for the
company.
1.2 The entry point into German
With the stiff competition, the Wesfarmers will make entry through a joint venture with
Kaiser’s supermarkets. Owned by the Tanglemann group, Wesfarmers can bring in new expertise
in doing business and expand. It will also provide resources such as human capital and
technology.
1.3 The Marketing Objectives
• Increase sales by 10% in the next two years
• Grow market share of 8% by the end of year 5
• 2% market share in the next 12 months
• Improve customer relation with 20% by the end of 12 months
• Target new customers and increase customer base with at least 5% by the end of year 1

Thanuja Gamaethige (Student ID No. 11625275) 8
• Increase profits with 10% in the next five years
• Build brand awareness by 40% in the next two years
1.4Target Market
Coles’ main stores will open in the urban regions targeting the countries growing urban
population. The primary target customers are people living in urban areas who can afford to shop
at the retail stores. The middle and upper-income category of people in Germany will be the
secondary target customers. These categories of people tend to visit retail stores on a daily basis
for their needs. Individual members of a family have different needs, hence visits to the stores
(Biddle, 2017).
With the opening of retail stores in the urban areas, Franchising will be used to target
them. Direct exporting will be used to target the customers from the middle and upper class in
the society. The company will conduct all the requirements on its own and does not include the
involvement of other management or organization at the entry level.
The company will also enter the market using joint partnerships. The joint ventures will
enable partnerships with other companies in the country. This will enable the store to offer a
variety of products. The variety of products will help attract different groups of people with
different interests and needs to the stores. For example urban housewives and professional
women.
1.5 Positioning strategy
A positioning strategy will enable Wesfarmers’ Coles to deliver more value to the target
market. It will enable Coles to establish a stronger market position against competitors through
effective communication and customer retention probability. With the position statement

Thanuja Gamaethige (Student ID No. 11625275) 9
‘serving the people better,’ the company is focused on operational excellence, consumer
proposition, and innovation. In Germany, Coles’ statement is associated with the increased
variety and functionality of the different products. Using the low pricing strategy, the varieties of
products at a low price will attract a larger number of customers. Many consumers consider the
pricing of products. Convincing the customers that they are getting value for their money will
attract them to the stores.
2.0 Marketing Mix
According to Palmer (2011), strategy refers to the direction and organization take to meet
its long-term objectives using its resources in today’s business environment. Marketing mix
refers to the set of tactical tools in the marketing field used by companies to meet the demands
and needs of the target market. Marketing mix strategy is tools used by a firm to ensure that they
positively impact and influence their product demands in the market. To meet the customer
needs, organizations focus on understanding their customers and developing strategies to
improve their performance (O’Neill, 2018). To survive the competition, organizations come up
with different ways to market their services or products. We discuss the 4Ps of marketing mix
below used by companies to meet their objectives (Baker, 2012).
2.1 Product Strategy
Coles is a retail supermarket offering different products from various vendors. They are
in a service business. The main factor in the company’s survival and penetrating a new market is
in the product and services they offer. All the decisions to be made regarding the marketing mix

Thanuja Gamaethige (Student ID No. 11625275) 10
has to do with the product. The products must meet the demands of the customers. It is therefore
important to determine the customers and their needs. With competitors such as EDEKA,
REWE, METRO and the large European retailers Aldi and Lidl, Coles supermarket has to make
their stores stand out. The competition is already stiff.
Customers purchases products and services based on the benefits they perceive the
product/service to offer. Offering products and services that satisfy the customer needs skills and
physical resource is key to its success. Coles supermarket being in the service business, the
customers are important. The customers either have a positive or negative effect on the results of
service (Hibić, & Poturak, 2016).
The levels are actual service, core service and augmented service. Coles retail shops are in
business because of the core service. The core service offers the solution to the problems that
customers face. The best solutions are usually a combination of different services, and
companies offer more. Actual products are the visible part of the service. These are things like
brand, quality, accessibility, facilities, and features. Without actual services, the core product is
pointless. Augmented services are the added value provided to the customers, and it
distinguishes the company from the competitors. For the retail business, after sales, credit and
customer service are some of the services that make a store distinguished from others. These
services are not necessary, but with the same products across the retail business, they are critical
in being competitive and gaining customers (Kasper, Helsdingen &Vries, 2012).
Figure 1: The structure of the services (Source: Marketing-Insider)

Thanuja Gamaethige (Student ID No. 11625275) 11
The following factors influence the decision of consumers choosing a product
2.1.1 Product features/attributes
Defining the benefits the product or services to offer is important. These benefits are
communicated through attributes such as quality and features. Consumers purchase based on the
features that appeal to them (Oliveira, de, Silva, Lopes, & Helleno, 2016).
2.1.2 Product quality
There are two levels of quality of services to customers; the quality level, these include
the feature of the products that develop the positioning of the product in the target market.
Another level is the quality consistency. The consistency in delivering quality to the customers is
important as it helps in customer retention acquiring new customers are hard (Kotler, 2010).

Thanuja Gamaethige (Student ID No. 11625275) 12
2.1.3 Product design and style
The sensational style attracts the attention of customers. It can attract the customer's
attention to your services or products. Good design of a product can contribute to its usefulness
to the customers.
2.1.4 Packaging
The packaging is also useful in the performance of a product or service. It can be very
expensive, but the right packaging can gain you a competitive advantage over your competitors.
2.1.5 Labeling
It is a promotional material that expresses the content of a product. It is important as it provides
consumers with the right information.
2.1.6 Branding
The brand identifies the services of the company and differentiates them from the
competitors. The brand includes the name, sign, design or term (Efanny, Haryanto, Jony,
Muhammad, Widyanto, & Adinugroho, 2018).
2.1.6 Product lifecycle
The product life cycle refers to the period the product or service is developed in a market. The
diagram below shows a summary of a product life cycle

Thanuja Gamaethige (Student ID No. 11625275) 13
Source: Assignment Point
Introduction of Coles retail stores in the German puts it at the introduction stage. The store
can price in such a way that it is geared towards cost recovery and what the market can bear. The
target of the sales should not be high.
2.2 Pricing Strategy
The price of a product contains more aspect than just the amount of money charged for the
product. It is competitive and involves scaling of prices, payment terms, and discounts. It is very
crucial in product or service marketing. Pricing has to be creative to attain the objectives of the
company. Through price, companies can create the needed perception in the customer's mind.
That is the value of the products, for instance, high prices are associated with quality. The price
is connected to the time, customer point of view and the market. The price can be manipulated in
different time spans, target groups and market. It is very important to consider your target market
in pricing. The Coles Company should analyze the potential of customers in their target market,
the competitors and the total cost of the service. Considering the competitors when pricing is

Thanuja Gamaethige (Student ID No. 11625275) 14
very important as it helps in determining the market price rates (Nagle & Holden, 2012). For a
company to achieve growth, it has to come up with a pricing strategy. It enables the company to
maximize its market share and value of the service it offers the customers. The company should
also create concrete pricing models to be used and evaluate the performance of the pricing
strategy used in the market.
For market entry, Coles will use a product line mix pricing strategy to enter the market.
Given that it offers a variety of products from fuel, financial services, and food groceries to
liquor, the company can identify the products that are in the same line (Coles Supermarkets,
2018). The products face different competition making it difficult to have competitive prices in
the market. But having the right product line bundle pricing, for example, will help them attract
customers. The product bundle pricing will entail setting prices for main products in the same
line cheaper to attract customers to purchase the product. For example, in the food grocery
products such as agricultural products with main products, can set the price of the main product
low and attract customers who will in turn purchase other by-products. (Sharma & Sharma,
2017). This aims at reducing the price of the products. Therefore, the company can offer
competitive prices for such products and gain on the by-products. The company can identify the
different product in the same line which can be bundled up and set the pricing based on this
strategy. This will enable Coles stores to attract customers, and they’ll get familiar with the store.
2.3 Place strategy
2.3.1 Place of Retailers
The place involves more than just the inside of the store, but also the front store, and
signboards that assure customers about the quality of the products inside the store. The general

Thanuja Gamaethige (Student ID No. 11625275) 15
appearance, tidiness, nearness to customers and the location of the services or products are a
major determinant of the place of the firm (Kotler & Armstrong, 2013). These aspects influence
the satisfaction level of customers. The physical perceptions of these elements can have a long-
term effect on the customers on the perceived quality (Kotler & Keller, 2011). In addition to the
already available Keiser strores, the Coles will add more retail shops in the urban area. The main
target is malls which have a good traffic of people. The target will be people visiting the malls.
The environment is favorable for supermarkets.
2.3.2 Distribution channels
The distribution channels used by the company are also important. These are the channels
the company uses to get the product or services to the end users. They can be directly or
indirectly. Coles will use the direct method to avoid costs caused by intermediaries. The market
is already competitive and using the indirect method will make it expensive and costly.
Therefore to reduce cost, using the company’s resources will allow the products to be distributed
direct from the manufacturers to the stores immediately (Porter, 2011)
2.3.3 Intensity of Distribution
To become competitive in the market, the company will use intensive distribution method
where they’ll use the mass distribution of products from the manufacturers to the stores. The
customers like easy access to products, therefore this method of distribution will enable the
company to be competitive in the market (Kurtz & Boone, 2011).
2.4 Communication Promotional Mix
This is a major strategy in the marketing mix as it allows firms to communicate their
products and services to the consumers. It entails different strategies such as personal selling,

Thanuja Gamaethige (Student ID No. 11625275) 16
advertisements, public relations, sales promotions, and direct marketing. These strategies have an
impact on the relationship between the firm and the customers. They are critical to improving the
firm’s sales (Forsgren & Johanson, 2014)). Using an integrated marketing communication where
you combine all the promotional elements and provides a consistent message to the consumers.
Entering a new market means the company has to use integrated marketing communication to
establish themselves in the market. The figure below shows the promotional mix
Source: Your Article Library
2.4.1 Advertising
It is the paid form of non-personal presentation of ideas, goods, and serthe vice
promotional by identified sponsors. It involves mass communication and more common form of
promotional tool. Coles can use advertisement to create brand awareness in the new German
market.
2.4.2 Sales promotion
It covers marketing activities that stimulate consumer purchasing and dealer

Thanuja Gamaethige (Student ID No. 11625275) 17
effectiveness. It involves short-term incentives offered to customers. The company can use
methods such as trade show, seasonal discounts, gifts, and exchange offer to drive traffic to the
stores.
2.4.3Personal selling
This includes face to face personal communication with prospects for selling. The
company sales representatives can engage potent total customers in conversations to enable
selling.
2.4.4 Publicity
This is also another form of mass communication. It involves getting favorable feedbacks
from the buyers who place significant news in mass media. The organization pays for the
communications. It is effective.
2.4.5 Public Relations
It involves maintaining constructive relations with the large set of interested publics
(Luan & Sudhir, 2010). It is important in promoting the company’s image in the market.
People
2.5.1 Recruitment
Employees play a significant role in creating the first impression of the company. The
customer satisfaction matters a lot. Given the language differences between Australia and
Germany, Coles with the help of the Human resource department for both Australia and
Germany will use a local recruiter to add more workers to the team. Recruitment of local

Thanuja Gamaethige (Student ID No. 11625275) 18
workers will help in personal selling and customer service within the stores.
2.5.1 Training
The human resource department will provide programs for training and development of
the employees in order to provide high quality personal services. The training will be
administered immediately the employees are recruited to the team. The HR will also ensure
development of the existing employees in order to enable motivation and achievement of
personal goals. The trainings will be on the job and off the jobs. These will promote
organizational culture in the company. Therefore training employees are important to provide
quality services and ease in the operation of the company.
2.5.1 Occupational health and safety laws
Coles will follow the requirements for health and safety laws as provided by the federal
and land governments so as to improve the safety of workers in the workplace. Coles will seek
advice and understand the German Health and Safety Strategy so as to comply with the entire
requirements. Coles provide health insurance to workers and other vocational treats. It is
important to give employees off days to rest and be rejuvenated at work (Bachmann, & Braun,
2011).
3.0 Economic Evaluation
The consumer goes through a process before responding to the stimuli to purchase. It
involves various stages. The following is the steps involved:
1. Need identification
Customers purchase products to satisfy their needs and desires.

Thanuja Gamaethige (Student ID No. 11625275) 19
2. Information search
The external and internal sources determine the information sources for the customers. Using the
right marketing mix will enable the customer to find the needed information about your products
and services.
3. Alternative evaluation
Meeting the expectations of the customers with your products and services will enable you to
meet their needs and not look for alternative suppliers. The quality, quantity, price, and attitude
of the people around them will determine whether they purchase at your store or somewhere else
(Beck, & Kenning, 2015). Therefore considering the market mix is important.
4. Purchase decision
The firm should understand the factors that make consumers purchase their products and repeat
purchase. This will enable the company to build a base of loyal customers.
5. Post-purchase behavior
Influenced by the degree of dissatisfaction or satisfaction of the customer, after purchasing and
using the product or service. A dissatisfied customer can cause a lot of negativity to the firm and
destroy its image while a satisfied customer can lead to repeat purchase and personal selling.
The customer adoption process focuses on their mental process from their first hearing
about innovation of a product or service to the final adoption. The adoption involves the
consumer deciding make regular use of innovations. The consumer adopts innovations at
different rates. The figure below shows the different stages percentages of adoption rates of
customers.

Thanuja Gamaethige (Student ID No. 11625275) 20
Innovators: consumers willing to try new products and services and are always taking risks.
Early adopters; they are careful in adopting new ideas but are opinionated hence they try new
things.
Early majority; adopts new ideas before most people do.
Late majority; skeptical and adopt new ideas after majority have tried the new products.
Laggards; very suspicious of change and only adopts new idea after considerable measures.
The image created in the mind of the consumer through the promotional activities influences
their buying behavior.
5.0 Total Market Calculation
According to wordometers, Germany has an urban population of 62,413,358. We will
target the innovators and early adopter in the next 2 years and the early majority on the third year
and the late majority on the last 2 years.
Our target market for the next 2 years will be {(2.5%of 62,414,358) + (13.5%of 62,413,358)}=
9,986,162.
For 20% market share in the next 5years, we looking at ( 20%of 9986162)= 1,997,232

Thanuja Gamaethige (Student ID No. 11625275) 21
Revenue expected in the next 5 years will be 1,997,233 of $12= 23,966,788
Increase in profits by 10% will be 10% of 23,966,788= 25,165,127
Year 1; 2% of the market share which will be $503,302
Year 2: 4% of the market share will be $1,006,405
Year 3: 8% of the market share $ 2,013,210
Year 4: 16% of the market share 4, 026,420
2021 4, 026,420
2020 2,013,210
2019 1,006,405
2018 503,302
year growth
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
Series1
6.0 Implementation and Control
Activity Responsibl
e
Jan Feb Mar Apr Ma
y
Ju
n
Market research
PESTLE Marketing
team
To be done
in January
Market Survey To be
done

Thanuja Gamaethige (Student ID No. 11625275) 22
from
January
to
Februar
y
Research Analysis The team to
research in
March
Production Plan
Sourcing local
manufacturers
Production
team
To use the
suppliers of
Kaiser
Sourcing local
suppliers
To be done
in January
Production
sampling
To began in
January
to end in
february
Analyzing the
sample result
Production
and
Marketing
team
To begin in
January
To
end
in
Apri
l
Marketing Plan
Market Analysis Marketing
team
To be in
March
Competitors To be

Thanuja Gamaethige (Student ID No. 11625275) 23
Analysis conducted in
March
Distribution research
Sourcing effective
local distributors
Marketing
team
to use the
company’s
resources no
intermediarie
s
Recruitment
Local employment HR team The use the
local
employees
from Kaiser
supermarke
t
Training
Training program HR team To be
conducted
by the HR
from the
head office
in Australia
in
conjunction

Thanuja Gamaethige (Student ID No. 11625275) 24
with the
German
HR
6.1.1 Business Environment Analysis
It is important to consider the external environment before setting up the company.
Political: The parliamentary democracy in the Europe region provides favorable grounds for
business expansion (Kilroy & Schneider, 2017).hence favorable for Coles
Economic: according to Biddle (2016) the government policies supports business. German has
shown a steady growth rate hence the economic condition favorable for business.
Social: the diverse culture and religion backgrounds need to be tackled.
Technology: the country is advanced and innovative when it comes to technology and its use
(Watson, 2011). Favorable for improvement of the quality of service offered to consumers.
Legal: Though the German government supports investments, there are consumer laws to be
followed.
Environmental: very strict when it comes to misuse of the environment. Therefore waste
management should be practiced.
6.1.2 Market Survey
The marketing survey to be conducted by the marketing team, Coles being in service
business, it’ll identify the unique benefits to offer the customers. It will identify the competitors
who are successful in the same line of business and come up with better strategies to be better
than them. Compare the competitor’s price level for both bargain and high end versions to enable

Thanuja Gamaethige (Student ID No. 11625275) 25
Cole deliver and identify unique selling points. The market survey will also focus on the
demands of the target market. Identify their demands and needs in order to offer better solutions.
The survey will also cover the distribution options, where it will determine where the target
market purchase the products and service, costs of sales for volumes of products and potential
sales volume. This will enable in determining the quantity of products to be purchased. The
market survey team will also use media kits to collect information on the profiles of target
customers. The media kits will also be used to determine the kind of promotional mix the
competitors in different regions use. The internet will also help in researching about the target
customers. The survey will identify the potential promotional mix that the target market can
respond to quickly
6.1.3 Research Analysis
Research analysis will be conducted by the marketing team, the data they have collected
from the surveys carried out will be analysed to determine the trends, patterns or relationship of
the information and the usefulness of the data.
6.1.4 Sourcing local manufacturers
Coles to enter market the through Joint venture so the production aspect will not be
necessary for all the products to be displayed in the stores. For some of the products that Keiser’s
stock, Coles will build a relationship with the available supplier. For the products that are not
stocked by Kaiser Stores, the production team will identify the local suppliers. The store will
acquire the products directly from the manufactures therefore the manufacturers with the
preferred quality at reasonable amount will be sourced.

Thanuja Gamaethige (Student ID No. 11625275) 26
6.1.5 Production sampling
The production team will use the acceptance sampling technique to test whether the products
meet the required needs by the customers. A few samples to be collected from the identified
potential manufacturers and suppliers and provided to the customers to determine if they are
accepted or rejected.
6.1.6 Analyzing the sample result
Marketing and production team to analyze the sample provided to customers for testing
based on their feedbacks. Both the teams will then determine whether to move forward will the
products from the chosen suppliers or not. If the customers approves the qualities, then the team
can choose to use a supplier.
6.1.7 Market Analysis
Understanding the market is critical for Wesfarmers to succeed in Germany. It has to
analyze the business environment. The environment analysis will provide an overview of the
internal resources and the demand of the market. Different factors can impact the business in
Wesfarmers despite German being a stable company.
6.1.8 Competitors Analysis
The German market has many competitors, with some of the biggest competitors being
Edeka leading with 5858 stores followed by REWE at 3300 then Aldi Sud has 1880 and Aldi
Nord with 2298 stores in Germany (Euromonitor International, 2018). The marketing team will
analyse each competitors potentiality and the unique features that makes them successful in the
market. Coles will also analyse their pricing strategies.

Thanuja Gamaethige (Student ID No. 11625275) 27
6.1.9 Sourcing effective local distributors
Based on the analysis of the samples provided to the customers by the production and marketing
team, the company will identify the suppliers who meet the quality standards to source the
products from them. The suppliers will be chosen based on the customer acceptance of the
products. The manufacturers whose products were rejected by the customers to be notified of the
same.
6.1.10 Recruitment
The human resource team will use provide the local recruitment agency with their
requirements on the qualifications of the employees they need. Recruitment of the right team is
important to the company’s growth, image and success. Therefore the candidates selected by the
local recruitment agency to be vetted by the HR department to ensure they meet the standards of
the company.
6.1.11 Training
The HR team to provide training for the employees immediately they are recruited to the
team in order to uphold the company’s vision and goals. The HR will also ensure development of
the existing employees in order to enable motivation and achievement of personal goals. The
trainings will be on the job and off the jobs. These will promote organizational culture in the
company. Therefore training employees are important to provide quality services and ease in the
operation of the company

Thanuja Gamaethige (Student ID No. 11625275) 28
6.2 Communication Plan
Activity Responsible Jul Aug Sep Oct Nov Dec
Promotion Plan
Event sponsor planning Marketing
team
✓
Social media creating ✓
Sale promotion planning ✓
Budgeting
Costs Analysis ✓
Pricing
Estimating Price
Product Launch
Launching the Product into
the market
✓
Feedback
Collecting feedback on
customer satisfaction and
sale
✓ ✓
Annual report
Providing relevant
information for the Annual
report
✓

Thanuja Gamaethige (Student ID No. 11625275) 29
6.2.1 Event sponsor planning
The marketing team to set the goals for events, come up with content and management
tactics. The key message to be highlighted and develop the modes of communication before
presenting it for sponsorship.
6.2.2 Social media creating
Social media creation is very important as it will help in digital marketing. Digital
marketing will enable the company to reach as many customers as possible. The marketing team
will be responsible for creating the social media for the company.
6.2.3 Sale promotion planning
The company’s marketing team to use sales promotions to attract customers when the
service is introduced in the market. It will help build the brand name for Coles in the German
market. The sales promotions programs to be sporadic where the customers will feel as if they
are getting new deals and need to acquire them immediately. They will be strategic and not bore
the customers.
6.2.4 Cost analysis
With the help of marketing team to come up with a budget for the project, they are to
analyse the cost connected to inventory selling, storing, promotions and distribution. This will be
used to determine the profitability of the project and accountability of the resources.
6.2.5 Estimate Price
The price estimations are based on the competitors pricing. An analysis on the different products
offered by the competitors will enable us estimate the market price.

Thanuja Gamaethige (Student ID No. 11625275) 30
6.2.6 Product launch
The marketing team to be responsible for launching the product in the market. Through
the market research and analysis, they are able to determine the right audience for the launch.
The company aim is to solve a problem for the audience, therefore right positioning against the
competitors will help the company to achieve a competitive advantage.
6.2.7 Feedbacks
Through the launch, the company will also get some feedbacks which are necessary for
improvements. The feedbacks are necessary for improvement of the company’s services and also
the help boost the sales as you become aware of the needs of the customers and areas that need
improvements.
6.2.8 Annual report
All the departments in the company to provide annual reports in order to get an overview
of the overall company’s performance. This is helpful in determining areas that need
improvements and where research can be conducted more. It provides the shareholders with
information.
6.3 Monitoring of Action Plan
Activity Measurement Responsible Activity
completion
date(s)
Memo
Market Research Determine macro- Marketing One year Opportunities

Thanuja Gamaethige (Student ID No. 11625275) 31
(PESTLE) environmental
opportunities that
will benefit the
company
Team before the
release date
must be
consistent with
company
objectives
Market survey Collection of
customer feedbacks
that would benefit
the company to
improve its services
Marketing
team
Six months
before the
release date
Feedbacks
should be taken
into
consideration
Market Research
and Survey
Analysis
Right tools used to
determine what's
available in the
market.
Marketing
team
One year
before the
release date
Gaps in the
customers
determined
Sourcing local
manufacturers
Analyse the
available suppliers
for different
products to be
displayed in the
supermarket.
Production
team
one year
before the
launch into
the market
Source for
quality suppliers
for products in
the supermarket.
Production
sampling
Sample products to
test in the market.
Production and
marketing
team
Three months
before the
launch
The products
samples are
important for
positioning the

Thanuja Gamaethige (Student ID No. 11625275) 32
product in the
market.
Analyzing the
sample result
Determine the right
products for the
market
the production
and marketing
team
Two months
before launch
The samples
meet the quality
standards for the
market.
Market Analysis Analyses the
potential of the
market
Marketing
team
One year
after release
date
Determine what
can be offered
differently in the
market
Competitors
Analysis
Who are your
competitors and
what are their
strengths and
weaknesses
Marketing
team
One year
before the
release date
Determine their
pricing and
their strengths
that keep their
customers.
Training The HR department
to provide training
for the existing
employees
HR
department
Three
months from
release date
Employees to be
aware of their
objectives.
Marketing plan for
Event sponsor,
Social media and
Sale promotion
Promote the
products
Marketing
team
On release
date
To create
awareness of the
product

Thanuja Gamaethige (Student ID No. 11625275) 33
Budgeting Costing purposes Marketing
team
One year
before the
release date
Work within the
company’s
capabilities
Pricing Depending on the
demand of line of
products
Marketing
team
continuous Use
promotional
pricing on
products
Product launch Introduce Coles in
the German market
The whole
company
On release
date
New partners
Collecting
Feedback
To gauge customer
satisfaction
Marketing
and customer
service team
Continuous Assist in serving
customers
correctly
Annual Report The level the
company has
reached
Financial,
marketing,
customer
service, and
HR team
One year
after release
date
Keep track of
the company’s
progress in all
departments.

Thanuja Gamaethige (Student ID No. 11625275) 34
References
Bachmann, R., & Braun, S. (2011) The impact of international outsourcing on labour market dynamics
in Germany. Scottish Journal of Political Economy, 58(1), 1-28.
Baker, M. J. (2012).Marketing strategy and management (pp. 37-59). Macmillan Education UK.
Beck, S., & Kenning, P. (2015) The influence of retailers’ family firm image on new product
acceptance: an empirical investigation in the German FMCG market. International Journal of
Retail & Distribution Management, 43(12), 1126-1143.
Biddle, I. (2016) The Wesfarmers/Woolworths duopoly war: The Bunnings vs. Masters
battle. Busidate, 24(3), 3.
Biddle, I. (2017) Target Marketing: Gaining customer details to maximise marketing
strategies. Busidate, 25(4), 10.
Coles Supermarkets. (2018). Retrieved from https://www.coles.com.au/
Efanny, Wita; Haryanto, Jony; Kashif, Muhammad; Widyanto, Hanif Adinugroho. (2018)
The relationship between marketing mix and retailer-perceived brand equity. IMP Journal, 12 (1), 192-
208.
Euromonitor International, (2018) Retailing in Germany. Retrieved from:
http://www.euromonitor.com/retailing-in-germany/report
Forsgren, M., & Johanson, J. (2014). Managing networks in international business. Abingdon:
Routledge.
Hibić, S., & Poturak, M. (2016). Impact of a Brand on Consumer Decision-making Process. European
Journal of Economic Studies, 17(3), 405–414. https://doi.org/10.13187/es.2016.17.405
Junker, S., & Wittenberg, E. (2017). " Germany economy growing at a slightly above-average rate":
Eight questions to Simon Junker. DIW Economic Bulletin, 5(51), 666-667.

Thanuja Gamaethige (Student ID No. 11625275) 35
Kasper, H., Helsdingen, P., &Vries, J. (2012).Services Marketing Management: An International
Perspective .John Wiley & Sons Ltd.
Kenny, G. (2011) Diversification: best practices of the leading companies. Journal of Business
Strategy, 33(1), 12-20.
Kilroy, D., & Schneider, M. (2017) Valuing the Current Strategy. In Customer Value, Shareholder
Wealth, Community Wellbeing (pp. 109-141). Palgrave Macmillan, Cham.
Kotler, P. 2010. Marketing 3.0: From Products to Customers to the Human Spirit. Hoboken: Wiley.
Kotler , P., & Armstrong, G., (2013). Principles of Marketing. Upper Saddle River, NJ: Pearson Prentice
Hall.
Kotler P. And Keller K. (2011). Marketing Management, 12th Edition (Upper Saddle River, New Jersey:
Prentice Hall.
Kurtz, L. & Boone,E. (2011).Principles of Marketing. Mason, Ohio: Thomson/South-Western
Luan, Y. J., & Sudhir, K. (2010). Forecasting Marketing-Mix Responsiveness for New
Products. Journal of Marketing Research (JMR), 47(3), 444–457.
https://doi.org/10.1509/jmkr.47.3.444
Nagle, T., & Holden, R. (2012). The Strategy and Tactics of Pricing. Englewood Cliffs, NJ: Prentice-
Hall.
Oliveira, P. S. G. de, Silva, D. da, Silva, L. F. da, Lopes, M. dos S., & Helleno, A. (2016). Factors that
influence product life cycle management to develop greener products in the mechanical
industry. International Journal of Production Research, 54(15), 4547–4567.
https://doi.org/10.1080/00207543.2015.1071893

Thanuja Gamaethige (Student ID No. 11625275) 36
O’Neill, R. (2018). MODERN MARKETING AND THE SEVEN PS: Marketing Mix Case
Studies. BusiDate, 26(4), 5–7. Retrieved from http://search.ebscohost.com/login.aspx?
direct=true&db=buh&AN=131995195&site=ehost-live
Palmer, A. (2011).Principles of Services Marketing (3rd ed.). UK: McGraw-Hill Publishing Company
Peng, M. W. (2016). Global business. Cengage Learning.
Porter, M. E. (2011).Competitive Advantage, The Free Press, New York, 1985
Sharma, S., & Sharma, P. (2017). Marketing Mix Strategies for FMCG Companies in India. Journal of
Commerce & Management Thought, 8(4), 760–771. https://doi.org/10.5958/0976-
478X.2017.00046.5
Vidovich, L., & Currie, J. (2012) Governance networks: Interlocking directorships of corporate and
nonprofit boards. Nonprofit Management and Leadership, 22(4), 507-523.
Watson, B. C. (2011) Barcode empires: politics, digital technology, and comparative retail firm
strategies. Journal of Industry, Competition and Trade, 11(3), 309-324.