Global Marketing Management: Target Australia's Expansion to India

This report evaluates the potential market segment of Target Australia in India. It includes screening of market selection, alternative market entry strategies, target market selection, and possible positioning for each target market.

Global Marketing Management
9/16/2018
Target Australia

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Contents
Introduction......................................................................................................................................3
Summaries from assessment 1.....................................................................................................3
Screening of market selection..........................................................................................................4
Screening approach......................................................................................................................4
Five stages of the overseas market selection process..................................................................4
Stage 1- Country identification................................................................................................4
Stage- 2 Preliminary Screening...............................................................................................5
Stage -3 In-Depth Screening....................................................................................................5
Stage-4 Final Selection............................................................................................................6
Stage-5 Direct Experience.......................................................................................................6
Reason to choose the country..........................................................................................................7
Mission statement........................................................................................................................7
Financial and market share objectives.........................................................................................8
Evaluation of Alternative Strategies................................................................................................9
Alternative Market Entry Strategies............................................................................................9
Alternative target market selection, positioning........................................................................11
Market selection process................................................................................................................13
Target market selection..................................................................................................................13
Possible positioning for each of target markets.............................................................................14

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Alternative generic strategies........................................................................................................14
Recommendations for a preferred strategy for India.....................................................................15
Conclusion.....................................................................................................................................16
References......................................................................................................................................17

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Introduction
An international marketing plan is the multinational process of planning and executing the
conceptions, promotion, pricing and others. This is an international marketing plan which
evaluates the realistic market options for the selected country by the organisation. The aim of the
report is to determine the potential market segment of the company that includes the target
markets in the selected country. This assessment is linked with the previous assessment that is
based on the target Australia. Target Australia has selected the market of India, Asia for the
expansion of the business. The market is growing and there is a need for the clothing and
departmental stores. Target Australia Objectives related to the financial and marketing of the
company in India as the clothing company. In the end, the recommendations related to the
strategies have been stated in the assessment.
Summaries from assessment 1
The previous assessment reflects that Target Australia Company is considered as the strategic
profitable sector for the Wesfarmers organisation and this is the reason due to which the
company is able to maintain the strong position in the market. The previous paper focuses on the
expansion of the Target Australia in the Indian market in Asia because this is considered as the
economically viable option for the company. The analyses related to the external factors that can
affect the company in India are discussed so that proper strategies can be prepared by the
company. In addition to this, the organisational capabilities and SWOT analysis have been
undertaken for the market of India. In the end, it was concluded that the company can expand
their business operations in the market of India but the company needs to be careful with the
selection of strategies or the changes in the market.

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Screening of a market selection
Market screening is the process of evaluating the overseas market where the business is willing
to enter. This section of the report includes the analyses related to the entry of target Australia in
the market of India with the use of the screening approach and new millennium catering.
Screening approach
The approach states that it is an initial step in the process of the selection of the country for
expanding the business. In terms of the international marketing, it is the way through which the
preliminary stage of the in-debt global analysis of the opportunities (Melewar & Gupta, 2012).
The motive of the screening is to determine the potential markets inexpensively and quickly
irrespective of the market entry. The below given are the five stages of the screening for the
overseas market selection process.
Five stages of the overseas market selection process
These five stages assist the best offer for the product and service of target Australia to succeed in
the market of India.
Stage 1- Country identification
This stage includes the identification of the country where the company is willing to expand the
business. In the previous assessment, target Australia has decided to expand the business in Asia
as the opportunities are increasing in the Asian market (Melewar & Gupta, 2012). The countries
are present in the market of Asia including India, China, Singapore and others. These markets are
shortlisted because they there is a rise in the retail industry and further these are predicated that it
is estimated to grow more (Loh, 2018).

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Stage- 2 Preliminary Screening
The preliminary screening is the stage in which the elimination of the market is done for those
markets which are not potential for the company. The parameters vary from the type of business
and their product offering. Target Australia found that in the Singapore retail in Industry 2018,
there is the presence of the mixed performance which leads to the marginal growth. These details
are extracted by the company from the Singapore’s department of statistics. According to the
analysis, there is a minor increase of 0.4% in the year 2018. On the hand, the market of China
and India are growing with the nice presence of the potential market (Statista, 2018). Due to
which, in this stage, the company decided to not to expand their business in the market of
Singapore.
Stage -3 In-Depth Screening
In this stage, the in-depth Screening takes place for the remaining two markets which suits the
appropriate for the target Australia Company which include India and China. Further information
helps the company in selecting the final choice. China is the place which is growing in the retail

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industry but it has the many large players which are barriers for the Target Australia to expand
their business operations in the market of China. Few of the leading retails that are present in the
market include Suning Commerce Group, Sun Art Retail Group, Lianhua Supermarket Holdings
and many others (Statista, 2018). On the other hand, the Indian market needs departmental and
clothing store which offers them products at low and affordable prices.
Stage-4 Final Selection
This stage analyses the potential markets on the basis of the feasibility and success factors. The
analysis reflects that in the market of India there is need of the new departmental store and retail
outlet who can offer the products at the low price because the Indian people are price sensitive
which is a potential advantage behind selecting India. The Indian market has been decided by the
target Australia for expanding their business (Melewar & Gupta, 2012). The size of the Indian
clothing retail industry has occupied a remarkable position in the market across the world which
was discussed in the previous assessment. In addition, the country includes the low economic
risk and political risk which is one of the reason it has become an attractive market for the Target
clothing company in Australia.
Stage-5 Direct Experience
The direct experience of the company includes when they launch their products and services in
the market of India (Melewar & Gupta, 2012). The launching of the clothing and departmental
store is one of the major benefits for the Target Australia. The company will then directly face
the potential positive or negative aspects of the market. In addition, it is expected that in the
future there is a positive experience with the Target Australia in the market of India and they will
be able to get the success.

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New millennium catering approach
The above analysis reflects the implication of the new millennium catering approach in which
the future growth in the international market is less likely to be determined in the Western
developed country markets as the countries such as Brazil, Russia, Indian and China are the
fastest developing countries across the world. This is the found that the real growth takes place
from the catering of the growth in the market (Melewar & Gupta, 2012).
Reason to choose the country
Target Australia has selected the Indian market for expanding their business operations. The
reason behind the selection of the Indian market includes the growth in the market size and
profitability of the country which makes the international companies expand their business
operations. According to the Boston Consulting Group, the country is predicted to the world’s 3rd
largest country with consumer economy that will reach up to $US 400 billion in the consumption
by the year 2025 (IBEF, 2018). The rise in the consumption is one of the reasons behind the
selection of the country.
Another reason is the rise in the retail industry which leads to benefit to Target Australia as they
will be able to earn the maximum profit. It is expected that the industry will rise to US$1.2
trillion by 2020 from US$680 billion in 2017. In addition, the population of the country is
increasing continuously due to which the sales of the company will increase and this is the
motive of the company due to which they are willing to expand their business operations.

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Mission statement
The mission of the company is to become the preferred shopping destination who offers the
outstanding value, continuous innovation and exceptional experiences in the Indian Market.
Financial and market share objectives
In the Indian market, the company has formed the some specific financial and market share
objectives which are formed with the motive to achieve the success.
 To offer the quality, fashion and basics for everyone at the low prices in the market
of India in the coming 2 years: - The objective is specific towards the quality for the
products and the Target Australia can easily achieve this in the market. It is essential for
the company to offer the quality and fashionable clothing to the people which show that it
is relevant to the mission of the company. The time period is clearly specified in the
objective of a company that is for approx. 2 years. The current objective of the company
is attainable the expectation of the company in the Indian market. This shows that the
objective is smart objective.
 Attain the 15% profit at least in a year: - In the Indian market, the company is
expanding their business for which it is must for them to attain the profit of at least 15%.
The 15% profit is a specific and measurable amount which can be done by the company
at the end of the year. This objective is relevant if the company will expand their business
operations in the market of India. Though, this is the fact that with the presence of the
other retail companies in the market of India it will be hard for the company to achieve
but this objective has been set considering the other elements present in the country that
can affect the working of the country. The time period which is set for accomplishing the
objective is a year. This shows that the objective is smart objective.

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 To acquire the 20% market share in 2 years - In the Indian market, it is essential for
the company to acquire a 20% market share. This is a specific goal which the company
needs to meet for their future growth. The time on which the company need to meet this
goal is for two years. Further, the Target Australia Company can easily measure this
objective with the help of the sales and profit in India. Target Australia might find it
difficult to achieve but it is achievable if the company make use of the effective
promotional tools. This will generate the awareness among the market for the company
and this is the reliable source through which the company can acquire the good market
share. This shows that the objective is smart objective.
Evaluation of Alternative Strategies
Alternative Market Entry Strategies
Market
Entry
Strategy
Examples Advantage Disadvantage Justification
Franchising McDonald’s in
India
 Low risk of failure.
 Established market
share.
 Relationships with
the suppliers
(Shen, Puig &
 The high cost
of franchising
 Restrictions
related to the
agreement
(Yan & Luo,
The reason
behind the
selecting this
as an option is
the high
opportunity for

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Paul, 2017).
 Give support for
on-going
operations.
2016)
 Most of the
profit needs to
be shared.
the success
factor and
suitable for the
Target
Australia.
Joint Venture
Alibaba Joint
venture with
Reliance retail
in India
(Laskar, 2018)
 Provide the
company with new
capacity and
expertise.
 Access to greater
resources that
include specialised
staff and
technology
 Sharing of risk
with partners.
 Imbalance of
level of
expertise and
investment can
affect the other
partner profit
(Lojacono,
Misani &
Tallman,
2017).
 Differences in
the
management
and leadership
styles of the
companies.
The reason
behind the
selection of
this option is
that both the
companies can
equally
distribute the
capital which
they want
because there
is a need of
high amount.
Merger or
takeover
Walmart take
over Flipkart
 Eliminate the
competition
 A
substantial

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that is present
in the market
(Management
Study Guide,
2018).
 Struggling
firms can take
the advantage
of same.
 Economies for
scale.
rise in the
prices.
 The loss of
productivit
y.
 The loss in
the jobs of
personnel.
Alternative target market selection, positioning
Option Target Market Positioning
Strategy
Marketing Mix
1 Premium household The positioning
strategy for the
respective target
market is to offer the
products at a low
price which make a
good place in the
mind of customers.
Product – Most of the products
include the household products
such as liquor, meat, fresh fruit
and veg.
Price- The company offer the
products at low prices (Luca &
Suggs, 2010).
Place- The place will include the

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stores at prime locations in India.
Promotion- Promotion tool
include print media and online
sources as through this they can
target a huge audience.
2 Youth Positioning strategy
for the youth is to
offer quality and
fashionable products
in the market.
Product- Fashionable and quality
apparels for the youth.
Price- The price of the appeal
remains cost-effective.
Place- Place is the different
section for the youth so that they
can choose from products
according to their convenience
(Lovelock, 2011).
Promotion- Online social media
sites and e-mail marketing is
effective for promoting products.
3 Working class with no
age limit
The positioning
strategy for the
working class is to
make the stores
available in prime
location. In addition,
Product- The products range
remains wide for the working
class.
Price- Low pricing strategy
Place- Online availability with
offline stores

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the store needs to be
properly managed so
that they can find the
products easily.
Promotion- Online social media
sites and e-mail marketing.
Preferred
Strategy
Premium household Low price strategy The reason behind the selection of
this strategy is that most of the
household people in India visit the
place where they find the low
pricing strategy (Keegan & Green,
2015).
Market selection process
The market segmentation process includes the segmentation and targeting of the Target Australia
in the market of India. Segmentation process includes the segmentation of the customers into the
different markets and making the selection out of it.
Demographic- Target Australia segments the customers on the basis of age, income, family type
and many other factors (Kotler, 2015). The company welcome the people with different age
group including 18-25, 25-45, 45-60 and 60+ years with high, low and medium income group in
India. This segment is decided considering the joint venture mode and franchising mode of entry.
Psychographic- In India, the people are looking for the low price products which are the major
part of their lifestyle (Hollensen, 2015). Products offered by the company are dairy products that

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are part of the lifestyle of customers. This segment has been decided considering the merger and
takeover mode of entry.
Target market selection
The target market that has been selected by the company is in different groups. The company
make use of the differentiated segmentation strategy in which they target maximum customers.
The primary target market of the company includes the middle-class people in India who are
mainly premium household irrespective of age group (Gillespie & Riddle, 2015)). In addition to
this, the company targets the bachelor people who fall under the working class because they
don’t get time to visits the different stores due to which they visit the departmental stores. Along
with this, the youth is mainly targeted by the customer because of the affordable and fashionable
clothes that are offered by the company.
Possible positioning for each of target markets
Positioning reflects the brand image of the company that is present in the mind and heart of the
customers. The possible positioning for the target markets include: -
 Premium households- Premium household position the target market among the low
pricing strategy with quality products which shows the price-quality approach (Cameron,
2017).
 Youth: - The youth has positioned the brand in most fashionable and with affordable
price category.
 Working class: - The working class person has made the potential positioning for the
company in between the most convenient with low price.

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Alternative generic strategies
The most effective generic strategies of the company are differentiation and cost leadership
strategies. In a differentiation strategy, the major focus is on the different products that are
offered to the customers under one roof. This strategy can help the customers in getting the wide
range of products which leads to the satisfaction (Baker, 2014). Target Australia makes use of
the differentiation strategy due to which they provide the different products under one roof. The
cost leadership strategy includes keeping low prices for the products and services than any other
company so that if in case the competitors reduce the prices there is no impact on the company
for the same (David, 2011). Target Australia does follow this strategy which is one of the reason
due to which they offer the products and services at low prices.
Recommendations for a preferred strategy for India
 Market entry mode: - It is suggested to the company to select the joint venture market
entry mode because this mode will help the Target Australia Company to understand the
customers, culture and people needs of India. Along with this, the company will learn
more about the market of India which will help them in performing the operations.
 Target market: - It is suggested to the company to make use of the multi-segment
strategy in which the company can target the different customers which will help the
company in meeting their objectives in India.
 Positioning strategy: - The positioning strategy that is recommended to the company is
to offer the low pricing strategy with the high quality which shows the price-quality
approach.

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 Generic strategy: - It is recommended to the company to offer the low-cost leadership
strategy with the differentiation strategy in the Indian market which is appropriate for the
company.

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Conclusion
In the end, it can conclude that Target Australia can get the good results if they expand their
business operations in India. The marketing plan of the company for the Indian market is
discussed which include the process of screening which is used by the Target Australia to
analyse the market which is suitable for them. In addition, the mode of entry is discussed with
the related to the concepts and theories. In addition to this, the target Australia selected segment
and target market is discussed in the report. This has been found that the positioning of the
company varies according to the target market of the company. The discussion related to the
generic strategies of the porters has been discussed in the report. In the end, the
recommendations to the company have been offered in the Indian market.

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References
Baker, M.J. (2014). Marketing strategy and management. New York: Palgrave Macmillan.
Cameron, N. (2017). Target CEO: We want brand love with mass reach. Retrieved from:
https://www.cmo.com.au/article/620333/target-ceo-we-want-brand-love-mass-reach/
David, F.R. (2011). Strategic management: Concepts and cases. UK: Pearson/Prentice Hall.
Gillespie, K., & Riddle, L. (2015). Global marketing. New York: Routledge.
Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education
Limited.
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Kotler, P. (2015). Framework for marketing management. Pearson Education India.
Laskar, A. (2018). Alibaba explores joint venture with Reliance Retail. Retrieved from:
https://www.livemint.com/Companies/1mvbhDUjZd9khrSUroW5MM/Alibaba-may-
invest-5-billion-in-JV-with-Reliance-Retail.html
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mainly attributed to ‘mixed performance’: SingStat. Retrieved from:
https://www.businessinsider.sg/singapore-retail-industries-sluggish-growth-april-mixed-
performance-singstat/

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