University Business Plan: David Jones' Entry into the Indian Market

This report presents a comprehensive business plan for David Jones' entry into the Indian retail market. It begins with an introduction and analyzes the macro and microenvironment using PESTLE analysis, examining political, economic, social, technological, legal, and environmental factors. The report then delves into market analysis, including market segmentation, target customers, product positioning, and competitive analysis using Porter's Five Forces. An organizational analysis employing SWOT analysis evaluates David Jones' strengths, weaknesses, opportunities, and threats. The report concludes with an international marketing plan, including an executive summary, mission statement, objectives, market entry mode, segmentation, targeting, positioning, and a detailed marketing mix strategy. Economic evaluations, implementation, and control measures are also discussed, providing a complete strategic overview for David Jones' expansion into India.

Running Head: ASSESSMENT ITEM 2
David Jones Business Plan
Name
University Affiliation
Date

ASSESSMENT ITEM 2
Table of Contents
ASSESSMENT ITEM 2..................................................................................................................3
Introduction....................................................................................................................................3
Macro and Microenvironment analysis of Indian market by David Jones......................................4
Political.......................................................................................................................................4
Economical.................................................................................................................................5
Social.........................................................................................................................................5
Technological.............................................................................................................................5
Legal..........................................................................................................................................5
Environmental............................................................................................................................6
Market Analysis of David Jones in India........................................................................................6
Market segmentation.................................................................................................................6
Target customers.......................................................................................................................7
Product positioning.....................................................................................................................7
Competitive Analysis of Davis Jones in India................................................................................7
Organizational analysis of David Jones in India............................................................................9
ASSESSMENT ITEM 3: INTERNATIONAL MARKETING PLAN..................................................12
Executive Summary.....................................................................................................................12
Mission Statement.......................................................................................................................12
Objectives....................................................................................................................................12
Recommended Market Strategy..................................................................................................13
Market Entry Mode...................................................................................................................13
Segmentation, Targeting, and Positioning Strategies..............................................................13
Marketing Mix Strategy............................................................................................................14
Economic Evaluation...................................................................................................................16
Step 1.......................................................................................................................................16
Step 2.......................................................................................................................................16
Step 3.......................................................................................................................................16
Step 4.......................................................................................................................................17
Implementation and Control........................................................................................................17
Action Plan Application............................................................................................................17
Monitoring of Action Plan, Contingency Plans.........................................................................17

ASSESSMENT ITEM 2
Conclusion...................................................................................................................................18
Reference List..............................................................................................................................19
ASSESSMENT ITEM 2
Introduction
David Jones a leading retail company in Australia has decided to enter a new international
market. The company has planned to enter the Indian retail market after analyzing the
extensiveness and diversification of a large number of populations in the country. In this
assignment, a discussion on the market choice of the company, issues that could be faced by the
company as an emerging organisation, competitive analysis in the international market and
subsequent organizational analysis is been provided.
Figure 1: Logo of David Jones
(Source: Shop.davidjones.com.au, 2017)
Macro and Microenvironment analysis of Indian market by David Jones
In order to analyse the market value of business of David Jones in India, PESTLE analysis is
been conducted.

ASSESSMENT ITEM 2
Figure 2: PESTLE analysis
(Source: Floh et al. 2014)
Political
India prolongs a good relationship with other countries in respect of political grounds. Grant
(2016) has shed light on the strategic dialogue been formed between Australia and India in 2015
that provided an opportunity for enhancement of business between the two countries. However,
the company can face a hindrance in their business activities due to the campaigns recently
promoted by Indian Government. PM has launched a ‘Make in India’ concept in retail sectors,
where, textile and garment manufacturer from rural areas of India are being exposed to the local
as well as international market by the Government initiatives (ETRetail.com, 2017). David and
Jones, being an international company may counter such political scenario and not get sufficient
exposure on entering Indian market as Government is focusing of retailers within the country.
Economical
Australia being a developed country has a much less inflation and unemployment rate. On the
other hand, India is facing huge economic issues in the past few years an inflation and
unemployment are much prevalent in this country (Dess, 2013). A significant impact on the
PESTLE
Political
Economical
Social
Technological
Legal
Environmental

ASSESSMENT ITEM 2
export and import of goods is made by RBI affecting tax rates. This could have affected the
growth of a new business in the Indian retail market.
Social
Social aspect in India and Australia are completely different. India is a country-inhabiting people
of different cultures, religions, lifestyle and family structure. David Jones will have a great scope
in attracting customers in India regarding social aspect (Grant, 2016). However, they might face
competition from domestic market, being more associated with Indian culture. This would prove
to be a negative factor since this organisation would be launching Western dresses which other
international organizations’ like Burberry, Zara have already captured.
Technological
Technology is facing an exponential growth in India in the last few years, enhancing import
export activities, foreign direct investment and in licensing agreement. In addition to this, online
medium is greatly influencing urban society of India. Thus, David Jones will be entering a
country that is being technological rising and the organizing will be able to conduct their
promotional activities via online medium on entering this new market (Zhang, Guo & Goes,
2013).
Legal
Tax system in India can have a significant impact on entry of David Jones in this market.
Frequent increase in decrease of tax, emergence of new tax system like GST, can affect the
business activities of a newly emerged organisation in Indian market (De Knop & Meunier,
2015). Prevalent legislations are also needed to be followed by the company in a methodical
way, which may be time consuming. This may cause a disruption in convenient operations of
their business.
Environmental
Tropical summer climate is prevalent in India and people mostly prefer cotton clothes. David
Jones, coming from a temperate climate country, needs to modify their clothes to make their
target customers feel comfortable on availing their service.

ASSESSMENT ITEM 2
Market Analysis of David Jones in India
David Jones on entering their new market in India needs to segment their market, target their
customers and position their product offering.
Figure 3: STP model
(Source: Zhang, Guo & Goes, 2013)
Market segmentation
On the basis of four factors, David Jones has segmented their market in India that is being
discussed below:
● Geographical situation of India covers an extensive boundary, being the 7th largest
country in world in terms of population (Zalengera et al. 2014). Company has scope of
segmenting their customers based on 28 states of the country having various cultures.
● Demographic situation of India portrays that women are adhered to ethnic clothing;
however, David Jones primarily sells western outfits. In this context, there is a huge
chance of facing competition. Thus, company is focusing on teenagers and women below
25 in availing their western outfits.
● Psychographic factors of Indian customers lean towards a traditional lifestyle, where their
culture and ethical values play an important part (Zhang, Guo & Goes, 2013). Company
Market
segmentation
Targeting
customers
Positioning
of products

ASSESSMENT ITEM 2
needs to focus on personality and style statement of people and accordingly segment their
market, since; India is a country full of mixed culture.
● Behavioral factors include desires, personal beliefs as well as creativity of customers. The
company, being new to market, will face difficulty in analyzing behavioral aspect of
customers and their choices.
Target customers
On successful analysis of the market segmentation, David Jones needs to set a particular segment
and target customers of that segment, which will provide them maximum profit. David Jones has
primarily set their customers as per the demographic factors. They would target teenagers and
women their age ranging from 15-25 years, and thereby promote their western outfits. Pawliczek
& Rossler, (2016) have opined that women of this age range would be keen to shift their choice
of clothes from tradition to western outfit.
Product positioning
Company needs to identify a unique selling proposition, considering the factors as to why Indian
customers would be availing their service. They need to portray a positioning map and note the
perception of their target customers about their products. As stated by Fernie, Fernie, & Moore
(2015), a value proposition is to be created to explain the fulfillment of target customers’ needs
and adopt appropriate promotional strategies.
Competitive Analysis of Davis Jones in India
David Jones can analyse the market competence on their entry to the retail market of India with
the assistance of Porter’s Five Forces of Competitive theory. This has been discussed below:
Competitive rivalry ● Tough competition will be faced by
company from the existing local
retail market (Westside, Max,
Provogue) as well as international
organizations (Amazon, Gap,
Burberry) that are operating in India

ASSESSMENT ITEM 2
prior to entry of David Jones
● Existing companies have greater
knowledge of customers as well as
prevalent market situations. Thus
during adverse market conditions,
David Jones will face a tough time
in sustaining in market.
Supplier bargaining power ● David Jones, being a new entrant in
Indian retail market, will come
across a number of suppliers. A new
organisation is also subjected to
switching to an alternative supplier,
on being rejected from one
(Pawliczek & Rossler, 2016).
● High bargaining power of suppliers
will be faced by David Jones on
entering Indian retail market.
Buyer bargaining power ● Company will be getting a number
of buyers since, customers are
generally curious of availing the
services of a newly entered
company in market.
● David Jones will be attracting a
large number of women customers,
as they are launching western
clothing and apparels for women.
Threat of Substitution ● Products of David Jones have high
chances of substitution on entering
Indian retail market, since they will

ASSESSMENT ITEM 2
be facing huge competition from its
both local and international rivals
(Westside, Burberry). If customers
are dissatisfied with their services,
they would substitute it with
products of the competitors.
Threat of new entry ● Company will counter high threats
from other international companies
that are planning to launch their
products in Indian market by
adopting technological
advancements and innovative
marketing strategies.
● In addition to this, there is a
constant entry of local retail
companies in the market who are
well acquainted with customer
choices and market factors. They
may also impose a threat to David
Jones.
Organizational analysis of David Jones in India
In order to evaluate the situation of the organisation on operating its business activities in India,
SWOT analysis is performed:

ASSESSMENT ITEM 2
Figure 3: SWOT analysis
(Source: Brito et al. 2015)
Strengths
● Firm supply chain management
system is prolonged by David
Jones. They follow convenient
stages of supply chain management,
which are selection of raw
materials, process of manufacturing
and distribution process.
● Bull et al. (2016) said that, effectual
management of production adds
value to its sustainability in market.
A specific design is maintained by
the company to stock management
system that varies from 4-5 weeks.
After that, a new set of designs are
being formed. As a result, company
Weaknesses
● Self contained or centralized
distribution system is the main
weakness of David Jones. Owing to
this system, fault in any one factors
of the production can cause the
whole system to get collapsed.
Decentralized distribution system is
followed by rival companies of
David Jones that has allowed them
to gain competitive advantage.
● Advertisement process and
communication with customers are
not being appropriately
implemented by this company. Lack
of promotion can cause a huge
Strengths Weaknesses
Opportunitie
s Threats
SWOT

ASSESSMENT ITEM 2
fulfils customer needs more,
compared to other companies.
impact on business.
Opportunities
● Scope of global expansion in other
continents has imposed a great
opportunity on enhancing the
business activities.
● Focusing on online market can also
be a great opportunity
Threats
● Extreme competence in market has
caused a great threat in operating
business activities.
● David Jones has not collaborated
with any of the eminent
international designers, thus there is
no such brand label.

ASSESSMENT ITEM 2
ASSESSMENT ITEM 3: INTERNATIONAL MARKETING PLAN
Executive Summary
David Jones is a retail company based in Australia. They intend to expand their
operations in India. They have a chance of generating an additional profit of 4% annually from
the new operations. In addition, the company aims at deriving additional 12% profit margins
annually with intended 10 % sales derived from internet operations. Based on the growth
opportunities in the Indian Market, the company has a high expansion opportunity, which calls
for proper planning and implementation. David Jones is well positioned to take advantage of the
existing market segments in India. The key marketing strategies used by David Jones will be the
4P’s of Marketing; people, prices, promotion, and places. The company will operate at a low
price strategy, which will be facilitated by reduced costs of operations. The expected sales for the
first year will be approximately $ 28.8 Million.
Mission Statement
To become the global leader in retailing and satisfy the needs of all our customers though
provision of quality products in timely and convenient manner.
Objectives
 Sales of by the second year
 Always have a margin of 12% on all products and services
 Derive at least 10% sales through the internet