Market Segments and Decision Making for Woolworths in China

Running head: MARKETING
Markets Segments and Decision Making
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1MARKETING
Executive summary
The report identifies a market for the chosen company. Woolworths was chosen as the company
entering the Chinese retail sector. The paper identifies a few challenges and opportunities as well
of operating in the retail sector in China. The paper recommends that Woolworths must grab this
opportunity with appropriate marketing strategies and all.

2MARKETING
Table of Contents
Introduction......................................................................................................................................3
1. A brief description of the industry market and evaluation of current trends in...........................3
a. Growth.....................................................................................................................................3
b. Profitability..............................................................................................................................4
c. Macro environment (PESTLE factor)......................................................................................4
2. Major market segments, and primary and secondary target markets for Woolworths................8
Major Market Segments..................................................................................................................8
Primary and secondary target markets.........................................................................................8
3. Level of involvement...................................................................................................................9
4. Nature of competition in the industry and a comparison of SWOT of Woolworths with its
main competitors.............................................................................................................................9
Nature of competition..................................................................................................................9
SWOT of Woolworths...............................................................................................................10
5. Positioning Map.........................................................................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................14

3MARKETING
Introduction
The chosen company for this report is Woolworths, which is one of the most popular
names in the supermarket industry of Australia. The company despite having a huge popularity
in Australia has only witnessed a limited growth in the international markets. Apart from
Australia, Woolworths only exist in New Zealand. The main purpose of this report is to identify
whether Woolworths could have entry to and whether it can survive in China.
1. A brief description of the industry market and evaluation of current trends in
a. Growth
In this part of the report, the growth of the retail industry in China will be analysed. As
per the IBISWorld report, total revenue from the retail industry in China stood at $196bn
(IBISWorld, 2018). The average annual growth was found equal to 5.7% as calculated during
2013-2018 (IBISWorld, 2018). Sun Art Retail Group Ltd., Carrefour China Inc., China
Resources Enterprise Limited, and Wal-Mart China were the top contributing retail firms
(IBISWorld, 2018). The number of businesses has also increased by 3.6% over the calculated
time period (IBISWorld, 2018). Industry employment during this period has also increased. It is
now close to 1,182,836 (IBISWorld, 2018).
A brief overview of the industry as shown in the above paragraph just shows that there
are emerging opportunities in the Chinese retail sector. It is evident in a fact that the number of
businesses in the last few years have increased. It means they had seen brighter business
prospects in the country. Since the industry now provides a good employment solution, there
should not be too much of issues in finding workers from local population. Additionally, the
recent growth of the sector is an indication that different companies from both local and