Marketing Mix Strategy for Wesfarmers' Coles in Germany

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

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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

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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

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6.2.8 Annual report...............................................................................................................................28
6.3 Monitoring of Action Plan................................................................................................................28

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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.

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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

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• 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