Asian Market Expansion: Coles Supermarket's Marketing Strategies

This report provides a detailed analysis of the marketing strategies employed by Coles Supermarket for its expansion into the Hong Kong market. It covers various aspects of the marketing mix, including product life cycle, branding, packaging, and pricing strategies tailored for the target market of housewives and children. The report discusses the distribution channels, promotional activities, and augmented services designed to enhance customer satisfaction and brand loyalty. Furthermore, it includes an economic evaluation, implementation and control measures, communication plan, and contingency plans to ensure a successful market entry and sustainable growth. The analysis also considers the buyer decision process, market calculation, and potential costs associated with the startup phase, aiming to provide a comprehensive framework for Coles Supermarket's international expansion.

Running head: GLOBAL MARKETING
Name of Subject: Global Marketing
Name of the Student: Raju Goud Kesari
Student ID: 11655919

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Executive Summary
This report enlists and describes in detail the various marketing techniques and strategies used by Coles Supermarket to expand into the Asian
market in Hong Kong. The major elements of this paper include the price positioning and marketing mix used. It is based on prior reports based
on the already existing units of the firm in Australia. This firm also incorporates and implements the features of economic evaluation,
implementation and control and contingency plans. The entire time frame for the various activities and the distribution of responsibilities for
fulfilling of these activities and financial objectives are discussed in detail in the paper. The aim of the paper thus is to provide a detailed
framework and description of the entire process of marketing and reaching target market. It also introduces the planning to publish the annual
report of the firm.

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Table of Contents
Executive Summary 1
Introduction 5
Marketing Mix 5
Product Life Cycle 6
Branding 8
Packaging 8
Labelling 8
Quality 9
Product Mix/Depth and Width 9
Segments 9
Augmented Services 10
Pricing Strategy 10
Place 12
Channels 12
Preferred Intensity of Distribution 13
Place of Retailers 13
Communication Promotional Mix 13
IMC Mix 13
People 16
Training and Recruitment 16

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Occupational health and safety laws 16
Economic Evaluation 16
The buyer decision process for the new product 16
Total Market Calculation 17
Costs that could be incurred in the start-up 18
Implementation and Control 19
Communication Plan 22
Monitoring of Action Plan 23
Contingency Plans 27
References 29

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Introduction
The second assignment focuses on the various stages of market sections and the reasons behind Hong Kong being chosen as the market
where the firm is internationally expanding. The paper also enlists the market entry strategies chosen for the expansion as well the market
positioning of the firm. The target market hence is the market consisting of Hong Kong which was chosen after a lot of analysis regarding the
financial, social and the economic conditions affecting expansion of the firm in this region. The positioning of the firm in the target market can
be best explained as the firm trying to target housewives who use varied number of goods for cooking. The aim of the firm in this respect is to
monitor the prices of its goods in relation to the price levels in the economy so the majority of the target market being focussed on can be
captured within the least possible time. The other method being used to maintain the position of the firm is maintaining the variety of goods and
products manufactured and provided by the firm. Further, the firm is also planning to produce products especially for children so that the entire
cohort of consumers in the target market can be best served.
Marketing Mix
There are two different types of strategies in the context of marketing mix being followed by the firm to gain customer satisfaction and
trust in the long-run from the target market cohort consisting majorly of children and housewives. For the children, the product will be
chocolates and the price of the goods will range in between 10 to 50 dollars. The promotional strategy used will be comprised of advertisements.

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The other marketing mix used for the adults ranging in the age of 23 to 50 years, will comprise of the products and goods that will provide varied
taste and the best quality of taste to the consumers including grocery items and vegetables and fruits. The price of these items will range in
between 20 to 100 dollars. The method of promotion that will be used for marketing of these goods will include advertising and campaigns
(Huang&Sarigöllü, 2014). Both of these products will be marketed and sold in Hong Kong.
Product Life Cycle
The product life cycle of any product portrays the various stages that a particular product of a firm goes through and helps firms in
locating where the products currently (McAuliffe, 2015). This in turn helps firms to take steps and measures so that the products reach the
maturity stages. The four stages of product life cycle are introduction, growth, maturity and decline. Coles Supermarket is looking to expand in
Hong Kong and so in this respect, the products and goods under consideration (vegetables, fruits and groceries as well as chocolates) belong to
the first stage of product life cycle. This is portrayed in the following diagram showing the different stages of development of the product and
where the products of Coles Supermarket lie.

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Initial
stages
Coles
Super
market
produc
ts
Growt
h
stages
Maturit
y
stages
Declining
phase
G R
O
WT
H
Time period

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Branding
Coles itself has been working on the strategy of branding and has been able to gather enough brand value and brand trust on the part of
the customers in the regions of Australia where it operates and functions. However, as the brand is now being expanded into a new region (Hong
Kong Asia) and the few products (chocolates, vegetables, fruits and groceries) are being focussed on as the major products, so specifically
branding will be done for children and separately for housewives. Further, the quality and variety of these products will be maintained through
prices and customisation depending on the preference patterns of the customers (Amaldoss& Jain, 2015). In a survey it is came to know that
most of the Hong Kong people likes foreign brands especially the chocolates.
Packaging
The packaging of these products will also be done in such a way that these products are not confused for other brands. The products are
packaged in such a way that they can attract the people of the Hongkong and their choices. For example, the colours like red and yellow
according to the traditional Chinese culture can be used in packaging since these colours are believed to be the sign of good luck. ( where are
hongkong people as has to buy this band)

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Labelling
The labelling of the product will also be made as attractive as possible to gain maximum possible attention on part of the consumers. The
labelling should essentially ensure the expiry dates of the products, the ingredients used and the way it should be stored.
Quality
As mentioned earlier, the quality of the goods and products will be maintained at high standards so that the customers are able to slowly
trust the brand and the firm (O’Neill, Sohal& Teng, 2016). This will help to elevate the brand value of Coles Supermarkets in Hong Kong . (use
gorvin article relate to topic)
Product Mix/Depth and Width
The products of Coles Supermarket also are best explained with the help of the two major concepts of width and dept. The width of the
product mix will consists of the different product lines of the firm. For example, Coles Supermarket will have multiple product lines based on
grocery products like fresh juices, milk and cheese products, baking items and so on. (Mayer, Melitz &Ottaviano, 2016). Further, the length and
depth of the product mix constitutes the number and variety (versions) of products in each product line. In case of Coles Supermatrket, there will
be a number of products under each product line so that a wider cohort of customer needs and demand trends can be taken care of (Plank, 2018).
For instance, under the product line of baking items, a wider range of cakes and breads can be added. (relate to topic)

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Segments
Product segmentation is a method followed by firms to group the products of the firm (Rajan& Wang, 2016). This is done based on
classification of the products according to some product attributes (Qiu, 2014). In this case the grouping of products will be women and middle
aged population and housewives since women and housewives mostly take care of the household works like grocery shopping. Similarly mainly
the middle age population regardless of gender tend to shop grocery items than the younger generation. Hence, they will be the major target
customer of the company. (why only middle aged and women, why they should purchase this brand )
Augmented Services
The augmented services and products provided by the firms include the extra benefits provided along with the services of the firm
(Hoekman& Shepherd, 2017). In this case the augmented services provided by the firm will include free delivery of the goods ordered or bought
from Coles Supermarket depending upon the prices of those goods, warranty and guarantee services for the products and membership cards
which can be used st the stores of Coles and upgraded on frequent usage. ( relate to topic)
Pricing Strategy
Pricing strategies are techniques and methods used by firms to determine and set prices for its new products while entering a market for
the first time. The two most important types of strategies used for pricing include penetration methods and skimming methods (Klassen,
Lisowsky&Mescall, 2017). The two methods act in opposite ways. The penetration one involves setting of a low price for a new product while

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entering the market and slowly increasing the price of the product as the market share of the company increases. The skimming method involves
setting a high price of the product while entering the market and then decreasing the price with the entry of competitors into the market. In this
case, the firm will be using the strategies of penetration and not skimming so that the firm is able to provide high quality and variety of goods at
low prices and thus gain a considerable share of the target market.
Factors Justification
Average income The average annual income of the firm is being expected to be around a million dollars because of the incorporations of tax
percentages and currency exchange rates in the calculation. However, the actual figure of average income might differ due
to unforeseen circumstances and variable costs
GDP 32,091.22 crores USD
Tax 17% Income tax
Currency
exchange rate
1 Australian Dollar equals5.53 Hong Kong Dollars
Average
Competitors