Global Marketing Plan: Coles Supermarket's Expansion into Japan

This report presents a global marketing plan for Coles Supermarket's expansion into the Japanese market. It begins with an executive summary and table of contents, followed by a summary of a previous assignment. The core of the report focuses on the marketing mix, including product, pricing, place, and promotional strategies tailored for the Japanese market. The product strategy considers the product life cycle, branding, labeling, and packaging, along with segmentation based on demographics, psychographics, and behavior. The pricing strategy analyzes factors such as average income, GDP, tax rates, currency exchange, and competitor pricing, advocating for a cost leadership approach. Place strategy discusses supply chain management and distribution intensity. The communication promotional mix highlights integrated marketing communication, direct and indirect marketing strategies, and public relations. The report also includes sections on implementation, control, communication, and action plans, along with a contingency plan and references. The analysis emphasizes the importance of people as a key element in the marketing mix, especially in service marketing and retail operations. The report concludes with the recommendation of a merge and acquisition strategy as an exit strategy.

Running head: GLOBAL MARETING
Global marketing
Name of the student:
Name of University:
Author's note:

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Executive summary
In the discussion of assignment 1 and 2, it has been identified that the company Coles
supermarket, has decided to develop its business in Japanese market. Examining the market
opportunities of the company, target market has been selected. In case of entering in the Japanese
market, the global marketing strategy has been highlighted. Analyzing both the external and
internal environmental opportunities, the global international marketing initiatives have been
highlighted. In case of gaining the competitive advantage from the japan market, Coles has
decided to expand its business so that it can get the chance to expand its customer base. In this
study, the marketing mix strategies have been discussed. It has been identified that in case of
expanding its business Coles has decided to use the traditional tools such as direct exporting,
indirect exporting and cooperative exporting. In this study, the entire global marketing plan with
the proper action has been discussed. The study has shed light on the importance of training and
budgeting for the efficiency. At the end of the study, merge and acquisition strategy has been
highlighted as the exit strategy of Coles Supermarket from Japanese retail industry.

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Table of contents
1.0 Summary of second assignment................................................................................................3
2.0 Marketing mix...........................................................................................................................4
2.1 Product strategy.........................................................................................................................4
2.2 Pricing strategy..........................................................................................................................6
2.3 Place strategy.............................................................................................................................8
2.4 Communication promotional mix..............................................................................................9
Total Market Calculation...............................................................................................................12
4.0 Implementation and control.....................................................................................................14
5.0 Communication plan................................................................................................................16
6.0 Action plan...............................................................................................................................17
7.0 Contingency plan.....................................................................................................................18
8.0 Reference and bibliography.....................................................................................................19

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1.0 Summary of second assignment
Examining the situation in international market, it has been identified that Coles
Supermarket has various benefits in the Japanese market to expand its business. It cannot be
denied that Japan is being considered as largest market in the global industry. In case of gaining
the competitive advantages from the market, the growing economy of Japan can bring various
opportunities. It cannot be denied that in case of gaining the competitive advantage, the Japanese
market is suitable for Coles supermarket. Analyzing the impact of business elements in the
global market, it has been assumed that the Japanese food industry can easily accept the
organization. Target market plays an important role in business develop in the Japanese market
Coles supermarket has targeted the premium and middle class customers in Japanese market.
Depending on the customers’ preference the target market has been selected. Mainly the children
and young people have been targeted by the company in Japanese market. It has been identified
that in case of entering in the Japanese market, the company has decided to use, exporting,
licensing and direct investment mode. It has been identified that the company has decided to use
the traditional tools for entering in the foreign market. Using the licensing mode, Coles can be
able to use different property and resources in the Japanese market.

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2.0 Marketing mix
2.1 Product strategy
Figure: Product life Cycle
(Source: Holzbaur, Ross & Rothrock, 2016)
In the words of Pérez, Pieri and Rodriguez (2015), the term product Life cycle is being
considered as an important concept of marketing. There are five stage in the PLC. Product
development, introduction, growth, maturity and decline. In case of Japanese market, with the
retail products Coles supermarket can be placed in the introduction stage as it is new in the
market and has not created any product development process.
Analyzing the product quality of Coles super market, it has been identified that it has
established its strong customer base for providing standard quality of products. In the new
market, it will be the aim of the company to provide standard quality of product so that it will be
able to develop strong impression on customers mind.
It cannot be denied that branding plays an influential role in case of increasing the value
of the company in market (Todor, 2014). It is also very important for encouraging the purchasing
decision of the customers. Branding has higher level of contribution in the market, therefore, in

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this case the both the online ad off line promotional activities can be beneficial for branding. As
the organization has already expanded its business in international market, therefore, it will be
easier for the people to accept the products of the company with the attractive branding.
Labelling and Packaging are another important element in sales distribution as it
provides the information regarding brand name, price, quantity and grade of the product
(Baumeister, Scherer & Wangenheim, 2014). In the Japanese market, the Prime labels can be used
by the company. In this types of labelling the business practices the products are being labelled
at the center so that it can be easily noticed. In case of packaging user defined packaging style
will be followed by Coles supermarket in Japanese market.
In the demographic segment, the company has chosen age, gender and income level. In
case of entering in the Japanese market, Coles supermarket will target the children and young
customers who have interest in the branded products. Depending on the psychographic
segmentation lifestyle, aspects and opinion of people have been highlighted by the company.
Depending on the behavioral segment, the brand performance, desire and prior purchases have
been selected by the company. Urban area will be chosen from the geographic segmentation so
that large number of target customers can be attracted.

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2.2 Pricing strategy
Figure: Porter’s generic strategy
(Source: Wicker et al., 2015)
The Coles Supermarket needs to follow the market development strategy in the Japan
market. With this initiative, it will be easier for the company is to gain the competitive advantage
from the retail market. It cannot be denied that the company has already established its strong
image in the international retail industry. In this situation, if the company will focus on the cost
leadership strategy, it will be beneficial for developing its sustainable position in the Japanese
market.
Factors Justification
Average
income
On the other hand, in case of engaging large number of customers
depending on the average income of the people the people in japan, the
pricing strategy will be developed. It has been analyzed from the above table
that average annual salary of a person in the age of 20 is $32182, where it is
$42,455 in 30s, $51273 in 40s and $63727 in 60s. Therefore, analyzing the
above table, it can be said that the company needs to set different types of

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product ranges so that different income group of people can be able to
purchase. As the company has decided to target the upper class and middle
class customers in the market, therefore, the pricing of the retail products will
be starting from $ 50 up to $ 250.
GDP Analyzing the GDP rate of Japan it has been identified that in the year 2016
it was 4.94 lack cores. If the economic growth rate can be analyzed, it will be
identified that it has a slowly growth economy, which has high contribution
in lifestyle and behavioral aspects of the customers
Tax In the current situation, the corporate tax rate in japan is 32.11 %. It has been
identified that the government has taken the initiative to reduce the tax and
make it 30% in the year 2016 so that the rate of foreign investment can be
increased (Mueller, 2016). Therefore, it can be said that it will be beneficial for
the company.
Currency
exchange rate
Currency exchange policy highly impacts on the foreign trade (Yermack,
2015). Analyzing the foreign exchange rate it has been identified one
Australian dollar represent 79.95 Japanese Yen, therefore, it can be said that
it will be beneficial for the Coles supermarket to invest in the Japanese retail
industry (Ilzetzki, Reinhart & Rogoff, 2017).
Average
Competitors
Price
Analyzing the existing retail organizations in the Japanese market, it has been
identified that UNY Company Ltd, Aeon Company and The Dalei Inc are the
major competitors of Coles supermarket in Japan (Seo & Takashima, 2017).
Analyzing the pricing strategies of the organizations it has been identified
that the target market of the organizations are same. These can create the
challenges for the organization. These organizations provides lower range of

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products to the customers.
Cost:
- Production
Cost leadership strategy will be followed by the organization so that the rate of
production can be reduced.
- Distribution Using the connectivity n networking facility in Japan, in products will be
distributed.
- Labor It cannot be denied that japan has lower employment rate and availability of
the women workforce in the industry is very less. However, in the recent
year, the unemployment rate has decreased 5.1%.
- Material Material will be collected from the local market as the bargaining power of the
suppliers in this industry is low.
- Marketing Social media marketing, direct and indirect marketing will be followed for grabbing
large number of customers attention.
Figure: Average salary of Japan by Age
2.3 Place strategy
On the other hand networking and connectivity in Japan is well structured, which can
influence the supply chain process (Christopher, 2016). It will help the Coles supermarket to
maintain the uninterrupted raw material supply chain. The distribution intensity indicates the

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availability of products selected by the organization in a market. Depending on the market size,
target market and capacity of production Coles supermarket will distribute its products. As the
target market is large and due to this reason the company has decided to involve large number of
retailers for managing the product distribution process. With this initiative the meeting will be
arranged with the local retailers who will take franchise of Coles super market.
2.4 Communication promotional mix
Figure: Promotional mix diagram of Coles supermarket
(Source: Oladepo & Abimbola, 2015)
Integrated marketing communication is very effective in case of dealing with the
different forms of communication (Sagala et al., 2014). It is being considered as an effective
promotional tool for Coles supermarket.in case of Japanese supermarket, both the direct and
indirect market strategy needed to be followed by the company. In case of maximizing the sales
in the foreign market, the company needs to focus on introducing different campaigns that can
help to grab large numbers of customers attention. Using the Facebook and twitter accounts the

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products can be introduced in the market. It will be beneficial in terms of developing the
effective relationship between the customers and employees. On the other hand, for developing
the communication with customers, a 24hrs customer service will be introduced in by the
company. In the customer service center Coles supermarket will appoint the Japanese employees
so that it will be easier to solve the quarries of the customers. In case of developing the public
relation, different promotional schemes can be introduced by the company through different
festivals. With this initiative, it will be easier for the company to get connected with the
customers. In the direct marketing, different campaigns can be introduced with the celebrity
endorsement. It cannot be denied that celebrity endorsement is very effective to garbing the
attention of large number of customers. Through the traditional channels in Japan, the TV
promotions can be done. This can help to increase its popularity in the market. Analyzing the
market segmentation policy of Coles super market, it can be suggested that it can sponsor
different sports events for attracting the large number of customers.
2.5 People strategy
People are essential element in the marketing mix as in the current business scenario, the
products are being sold through different retail outlets. People are important in case of handling
the entire process. It cannot be denied that in the service marketing, people are important for the
product development process (Le Roy & Czakon, 2016). By recruiting the efficient people in
different positions of the company, Coles will be able to gain the competitive advantage in the
market. Therefore, it is clear that the people who are associated with an organization are essential
for influencing the organizational performance. In case of Coles, it needs to focus on improving
its efficiency for developing sustainable position in the market. With this initiative it will be
easier for the organization to deal with the foreign market. Effective leadership strategies needs

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to be developed in the workplace. In case of Japanese market the transformational leadership
strategy will be followed by the company. As the Japanese market tis totally new for the Coles
supermarket, therefore, the company needs to focus on understanding the market situation.
Research and development is needed for understanding the needs and demands of the customers.
In this situation, recruiting large number of Japanese employees can help to gain the trust of the
local people. on the other hand, contributing in the Japanese employment rate, the company can
be easily highlighted in the Japanese retail industry. In case of maintaining the employment
standard, the proper healthy and safety regulations need to be followed by the company. It will
be beneficial in terms of avoiding the employee movement in the foreign market. On the other
hand, it is true that proper training and development process needs to be followed. In this case
the experimental learning theory can be applied for increasing the efficiency of the employees.
3.0 Economic evaluation
The term economic evaluation is being considered as the systematic process that helps to
valuate and measure the output and input of the two alternative activities. It is also very
important in case of understanding the competitive advantage from the market. It cannot be
denied that depending on the economic evaluation process has higher level of impact on the
innovation adaption cycle. In case of adaption process of Coles supermarket by the Japanese
customers, in the below diagram the 5 stages have been shown.