Woolworths Market Analysis for UK

This assignment examines Woolworths' strategic positioning within the UK market. It delves into market segmentation techniques to understand target customer groups, analyzes key competitors like Tesco and Asda, and proposes effective business communication strategies for Woolworths to gain a significant market share.

Running head: MARKETING IN INTERNATIONAL ENVIRONMENT
Marketing in International Environment
Name of the Student
Name of the University
Author Notes

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MARKETING IN INTERNATIONAL ENVIRONMENT
Table of Contents
Introduction......................................................................................................................................2
Company Background.....................................................................................................................2
Marketing Selection.........................................................................................................................4
Macro Environment analysis.......................................................................................................4
Micro Environment Analysis.......................................................................................................6
Conclusion:......................................................................................................................................8
Reference.........................................................................................................................................9

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Introduction
The aim of the current report is to analyse the marketing plan implemented by
Woolworths Limited, which is one of the leading supermarket retail of Australia. The marketing
plan of this current report will come to highlight upon the tools that have been used by the
company in order to expand their business in the consumer market of the United Kingdom.
Proper research has been done in order to analyse the internal and external environment of UK
market. The purpose of the project include detailed analysis of the competitors within the market
is also done along with the techniques that will be used by the company in order to communicate
with target customers.
It is essential for the Woolworths Company to use the scope and opportunity that exists
within the retail market of UK that will be the main objective of the international marketing plan.
The rising demand of the UK retail market is the biggest scope that exists for Woolworths.
Company Background
The Woolworths Company is one of the major retail supermarkets giant that are spread in
all over Australia and New Zealand. It is currently the largest retail unit in Australia and 19th
largest in the whole world. The headquarters of the company is located at Bella Vista of New
South Wales. It is the second largest private company of Australia in terms of the total revenue.
The major product of the company includes all retail units. In recent times Woolworths have also
initiated Hotel service business. It was established in 1924 and currently has 202,000 employees.
Total estimated revenue of the company is estimated to be AS$59 Billion that was calculated in
the financial year of 2016. The net profit of is estimated to be AS$ 1.2
billion(Woolworthsgroup.com.au, 2017). There are nearly 3000 stores of Woolworths that are

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located in all major cities across Australia and New Zealand. Nearly 29 million customers trust
the brand name of Woolworths, which has helped the company to expand throughout several
years (Woolworthsgroup.com.au, 2017).
One of the major aspects of the business strategy of Woolworths is to have partnership
with several other small scale business owners and local manufacturers. These have helped the
company to outsource the required workforce and raw materials that are needed in the business
operations. The primary business goal and objective of the company is to focus on customer
needs and also maintain high level of transparency. This has helped them to gain significant
reputation in the respective market and also raise their brand value.
With the healthy reputation that Woolworths have in Australia and New Zealand market, the
company is now aiming to expand in the UK region.
Being one of the oldest retail units of Australia, the WoolworthsCompany has able to
gain huge popularity as a brand. It has also been able to expand their market share and develop
new product and services. Strong customer support is also regarded as the biggest strength of
Woolworths that has allowed them have an effective distribution channel. Corporate strategies of
the company have also allowed them to make best use of the available resources in order to
provide effective customer service.
On the other hand, the main weakness of the company is due to the fact that their
popularity is currently limited to Australia and New Zealand market. Due to low presence in
international market, the company may suffer due to poor level of market entry. The online
websites of the company are also not well developed in according to the current Technology.
Hence it may be difficult for them to promote their business in the UK region.

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Marketing Selection
Macro Environment analysis
Lamas et al.(2017), have suggested about the importance of Pestel analysis that is used as
one of the major marketing tool to analyse the Macro environment. This is one of the effective
techniques that are used to analyse the political, environmental, economic, social and
technological factors that can affect the business planning programme of a company. As these
parameters differ in market region of various places, it is essential for a company to investigate
upon the following factors in order to ensure that all the steps are being followed. It can also help
to ensure that all the Legal procedure are being followed due to the matters related to the major
business plans that are being implemented (Grünig and Kühn 2015).
Hence, it is essential for the Woolworths Company to analyse the Macro environment of the UK
market, in order to ensure that they are able to implement the best and effective business plan.
The political factor of a region depends upon the policies and rules implemented by the
local government that can have direct impact on the business planning process. The stable
democratic government of UK will the Woolworths Company to implement the business plan
and make necessary investment. The government has also special policies for foreign investment,
which are mainly aimed to improve the economy of the country. It is also important to note that

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according to the report of the World Bank, UK region is regarded as one of the best place to
make investment by the foreign companies due to the political stability. Nevertheless, due to
some internal the Government of UK, there are some impact on the phone and business.
Strong economic background of UK can help all type of companies to make high amount
of investment with healthy expectation of profit level. The income level of the people is also
stable, and there is no major issues related to employability. Due to the liberalization of the
economic system, it has opportunity to the entire major business organisation to expand freely.
The economic policies of the nation have also increased the total amount of foreign direct
investment (Yüksel 2012). This can be one of the major advantages for Woolworths, as they
make investment in the UK market. With high percentage growth of GDP, it is possible for
Woolworths to easily expand and make advantage of the healthy economic condition. On the
other hand, due to the recent economic recession, the Nation has suffered financial loss. This has
also affected the foreign investment that is made within the nation. Hence, it is essential for
Woolworths to implement counter measures to minimise the effect of economic and financial
crisis.
Most of the people in UK society belong to the higher section, which can help in the
growth of all business. There is also the economic factor that has contributed to high level of
income among the UK society. This will help all types of business to increase their level of sales.
There are certain social issues within the UK community due to the increase number of migrants,
which has resulted in social unrest (Yüksel 2012).
The technology is also one of the major advantages for all types of business due to the
fact that UK has a strong infrastructure that can help in all business process. The innovation

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within the technological infrastructure has helped the business to increase their popularity with
effective marketing strategies. In modern days, the large scale multinational organizations are
dependent on the technological factors that can help in all their major operational activities.
Micro Environment Analysis
The micro environment analysis of the market includes targeting of potential customers
and establishes effective ways of communication (Li et al. 2013). Small forces within an
organisation are crucial due to the fact that it can help to establish healthy relationship with the
customers. Pourabdollahian and Copani(2017), have mentioned the importance of target market
analysis, which is an essential step that every company employee to identify the potential
customers. The WoolworthsCompany is selling all type of retail products, product which will
help them to target all type of people in the UK society. The range of the product sold varies
from everyday necessity cosmetics to luxury products. Hence, it is possible for them to target all
kinds of people from the UK society.
Communication with the customers is an essential part of micro environment analysis of
marketing. This can help the company to deliver essential message related to the objective of the
company and also provide detail description of the products or service they are offering within
the market. In the current days the digital media and platforms are one of the effective ways that
can help the marketing agents to easily contact with the potential customers (Mai and Hoffmann
2014).

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It is essential for the Woolworth Company to decide upon their effective communication
policies that are needed to deal with marketing strategies in UK. The tools of business
communication may differ depending upon the situation and the demand of the target market. In
the recent days, most of the companies are dependent upon the use of the social media and digital
platforms in order to reach out to the target group of customers with effective communication
tools. The Woolworth Company have implemented the tools related to the web-based
communication that can easily help them to raise the level of awareness among the people. e
Market segmentation is one of the important aspects, where the overall market is being
divided into different parts related to the groups or the customer’s choice and preference. This is
one of the effective tools that are used by companies in order to reach out to the potential
customer groups. Wilkinson (2013), have discussed about the various parameters of market
segmentation that includes geographic, demographic, psychological and behavioural
segmentation. Effective marketing policies are made implemented that are made combing the
policies of all the parameters of the market segmentation. For the company like the Woolworth,
it is essential for them to properly analyze the elements of market segmentation, which will help
them in the purpose of dividing the target market of UK. The products that are offered by
Woolworth consist of wide range of products. Hence, it is possible for them to target customers
from all the segments of the UK society. It is important to mention that with the help of the
policies related to target market are dependent upon the market segmentation.

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Topaloglu and McDonald (2013), have suggested the importance of analyzing the
competitive environment within the market that can help to implement effective counter policies.
The major competitors of Woolworth in the UK market will be Tesco and Asda.
Conclusion:
In the concluding note it can be said that it is essential for the marketing agents of
Woolworths to properly analyse the macro and micro environment of the UK market. This will
help them to improve upon their popularity among the customers of UK. Market segmentation
and effective business communication are few of the effective techquies that will be used by the
company to establish their market share in UK.
It is essential for them to analyze their marketing policies, which will help them to gain a
significant portion of the marketing share in the retail supermarket of UK.

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Reference
Grünig, R. and Kühn, R., 2015. Global Environmental Analysis.In The Strategy Planning
Process (pp. 89-96).Springer Berlin Heidelberg.
Lamas Leite, J.G., de Brito Mello, L.C.B., Longo, O.C. and Cruz, E.P., 2017.Using Analytic
Hierarchy Process to Optimize PESTEL Scenario Analysis Tool in Huge Construction
Projects.In Applied Mechanics and Materials (Vol. 865, pp. 707-712).Trans Tech Publications.
Li, Z., Wang, W., Yang, C. and Ragland, D.R., 2013. Bicycle commuting market analysis using
attitudinal market segmentation approach. Transportation Research Part A: Policy and Practice,
47, pp.56-68.
Mai, R. and Hoffmann, S., 2014. Accents in business communication: An integrative model and
propositions for future research. Journal of Consumer Psychology, 24(1), pp.137-158.
Pourabdollahian, G. and Copani, G., 2017. Market Analysis, Technological Foresight, and
Business Models for Micro-manufacturing. In Micro-Manufacturing Technologies and Their
Applications (pp. 261-291). Springer International Publishing.
Topaloglu, O. and McDonald, R., 2013, December. Understanding the Competitive Environment
of Nonprofit Organizations: A Resource-Advantage Theory Approach. In Association of
Marketing Theory and Practice 2014.
Wilkinson, F. ed., 2013. The dynamics of labour market segmentation. Elsevier.
Woolworthsgroup.com.au. (2017).About Us - Woolworths Group. [online] Available at:
https://www.woolworthsgroup.com.au/page/about-us/ [Accessed 3 Sep. 2017].
Yüksel, İ., 2012. Developing a multi-criteria decision making model for PESTEL
analysis.International Journal of Business and Management, 7(24), p.52.

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