Marketing Plan: Target Australia's Expansion into the Brazilian Market

This report outlines an international marketing plan for Target Australia, a leading Australian retailer, focusing on its potential expansion into Brazil. It begins with an executive summary and table of contents, followed by a detailed research methodology. The report includes a comprehensive situation analysis, encompassing company analysis, market analysis (economic, social, political, infrastructural, demographic, and climate factors), and competitor analysis. A SWOT analysis identifies strengths, weaknesses, opportunities, and threats, informing the development of international and market objectives. The recommended marketing strategy covers target markets, market selection, and market entry strategies. Marketing mix strategies, including product, price, place, and promotion, are thoroughly discussed. The report incorporates a planning budget with sales forecasts, cost analysis, profitability projections, and sensitivity analysis. Finally, it addresses implementation and control, including a formal project plan and contingency plans. The analysis suggests that expansion into Brazil could be profitable for Target Australia, given Brazil's strong economy and growing population.

Running Head: MARKETING PLAN 1
International Marketing Plan: Target
Australia

MARKETING PLAN 2
Executive Summary
International Marketing plan of an organization is a significant document, which is created when
the company plans to expand its business operations in new and emerging market. This
marketing plan consists of various elements related to this market entry. This plan is created to
increase its presence in new country or globally. An organization needs to consider various
things, when it develops an international marketing plan, like; mission and vision, marketing and
financial objectives, market entry mode, target market, segmentation, implementation and action
plan and evaluation and control. This report includes the international marketing plan for Target
Australia, which is planning to expand its business into Brazil. Target Australia is a leading
retailer in Australia that desires to expand its business internationally.
The major objective of this report is to develop the understanding about different strategic
aspects of an organization, which need to be considered at the time of business expansion to
overseas market. The marketing plan of Target Australia includes all the related components of
marketing plan. It describes the objectives, target market, segmentation, financial plan,
implementation and control. Furthermore, it provides the forecasted profits and sales in next
three years in Brazil. This report will assist the readers in gaining knowledge about the retail
industry and its trends in Brazil. All the analyses indicate that it will be profitable for Target
Australia to expand business in Brazil due to its strong economy and increased population. The
company should go ahead with the recommended strategies and entry modes while expanding
business operations in Brazil.

MARKETING PLAN 3
Table of Contents
1.0 Introduction................................................................................................................................4
2.0 Research Methodology..............................................................................................................4
3.0 Situation Analysis......................................................................................................................5
Company Analysis.......................................................................................................................5
Market Analysis...........................................................................................................................5
Environmental Climate.............................................................................................................5
Competitor Analysis....................................................................................................................8
Organization’s Assets and Skills..................................................................................................9
Competitive strategy.................................................................................................................9
Human resources......................................................................................................................9
Technology...............................................................................................................................9
4.0 SWOT Analysis.........................................................................................................................9
Strengths and Weaknesses...........................................................................................................9
Threats and Opportunities..........................................................................................................10
Implications of SWOT analysis.................................................................................................11
5.0 Objectives................................................................................................................................12
International Objectives.............................................................................................................12
Market Objectives......................................................................................................................12
6.0 Recommended Marketing Strategy.........................................................................................12
Target Markets...........................................................................................................................12
Market Selection and Market Entry Strategy.............................................................................13
Market Entry Strategy................................................................................................................14
7.0 Marketing Mix Strategies and Tactics.....................................................................................14
Product Strategy:........................................................................................................................14
Price Strategy.............................................................................................................................15
Place Strategy.............................................................................................................................15
Promotion Strategy....................................................................................................................16
8.0 Planning Budget.......................................................................................................................16
Planning Assumptions................................................................................................................16
Forecast Sales (and Market Share) and Costs (Capital, Operating, Marketing etc)..................17

MARKETING PLAN 4
Forecast Profitability (Break even Analysis).............................................................................18
Projected Profit and Loss...........................................................................................................19
Profit & Loss Statement.............................................................................................................19
Sensitivity Analysis....................................................................................................................20
9.0 Implementation and Control....................................................................................................20
Formal Project Plan for Implementation of Recommendations.................................................20
Monitoring of Action Plan.........................................................................................................21
Formal contingency plans..........................................................................................................22
10. Bibliography............................................................................................................................23
1.0 Introduction

MARKETING PLAN 5
Target Australia is one of the largest retailers in Australia that is operating its business operations
with the logo of Target Group, United States, but it is owned by Wesfarmers Limited. The
company is running business with a strong position in the country. This status and brand image
of company can enhance its marketing opportunities. This report is focused on developing an
international marketing plan for Target Australia Company. When an organization desires to
expand its business in another country, then it needs to consider various factors and aspects. The
company creates an international marketing plan to incorporate all these factors and their
possible impacts.
This report includes several analyses in relation to Target Australia, like; situational analysis,
market research, strategic analysis, Budget and implementation of control. The company is
planning to expand its business in an overseas market, i.e. Brazil. By developing this marketing
plan, company is evaluating whether it is profitable to expand it retail business in Brazil. It will
analyze external factors in the country, like; political factors, legal factors, social factors,
economy of the country and other environmental factors. Furthermore, the report recommends
some marketing strategies, which can be implemented by Target Australia while entering into
new market. At the end, the report includes the forecasted budget for the company’s business and
promotional activities.
2.0 Research Methodology
Research methodology plays an important role in conducting any research, whether this research
is about any industry or organization. For developing this international marketing, a secondary
research was conducted by the marketing and research and development team. In this research,
various documents have been considered, like; Annual report of the Target Australia, company
data bases, industry databases etc. To know about the market conditions of new country, the
information was gained from that country’s news articles. These articles assisted in
understanding the political and legal circumstances of the country, whether they are positive in
context of company’s entry. Industry data bases have been used in understanding the trends and
changes in retail industry.

MARKETING PLAN 6
3.0 Situation Analysis
Company Analysis
Target Australia is a retail store with affordable product prices that is owned by Wesfarmers Ltd.
Currently, the organization has more than 300 retail stores and it is headquartered in North
Geelong, Victoria, Australia. In the end of last year, total revenues for the retail sector were $20
billion that shows the growth in past figures. Target Australia is one of the largest retailers in
Australian retail industry. The main products and services of the company include cosmetics,
clothing, toys, consumer electronics and electrical equipment. This organization was established
in 1926 by George Lindsey and Alex McKenzie. Currently, the company has its 183 retail stores
and 125 county stores across Australia.
It is catering the middle level of market with its products and services and emphasizing on the
product quality and value. Company’s revenues during the year 2016 stood at $3.5 billion and
income was $195 million. The company has a strong market position in Australian retail sector.
Under this business, the mission of Target Australia is to run its business to make the quality,
fashion and style inexpensive and reasonable for a complete family. Target is a retail brand that
is fully dedicated to provide the best value and quality and assisting the society and satisfying its
duties and responsibilities towards customers, suppliers and its employees. Currently, the slogan
of company is “Higher quality, lower prices.” It is using different approaches, like; societal and
marketing orientation for its goods. In addition, it is adopting a low cost method for providing
best standards of products at affordable cost. Now, the company has opened its online stores also
and it is able to offer the low cost advantages to maximum people because of its online presence.
Market Analysis
As Target Australia is planning to expand its business operations in Brazil country, so it needs to
analyze the external factors in the country. These factors may impact the growth of company in
this new and emerging market. These external factors are stated below;
Environmental Climate
There are some environmental factors, which are influencing market demand for the retail
products and services and business operations of the company in Brazil.

MARKETING PLAN 7
Economic Conditions
Economy of any country is very important factors for any retailer, like; Target Australia. Brazil
has a high potential for growth due to its large population and inflow of Foreign Direct
Investment (FDI). There is a significant trend of an increasing middle-class and the gap between
poor and rich is decreasing progressively. In addition, the banks in the country have reduced the
risk and challenges of currency devaluation, which has controlled the inflation in country.
Economic conditions in country are favorable for the company’s growth, because its products
aimed at lower and middle class people (Andrews and Shimp, 2017). For increasing its presence in
this country, the company needs to make expenditures on advertising channels, such as;
newspaper circulars, media broadcasts, commercials etc.
Social and Cultural Factors
In Brazil, there is economic inequality among people, because approximately 20% of the public
stays under poverty line. In the country, there is a significant number of wealthy people and a
considerable segment with middle income level. Target Australia organization is offering its
products and services to middle and lower income level people, so this market is profitable for
the company as middle class is growing in Brazil (Cavusgil, et al, 2014). It can offer great
shopping experience to Brazilians. The population in country is very much aware about fashion
and big brands.
Political/Legal Factors
The Brazilian Government is stable and proactive and country has political instability, but it very
difficult to predict that how long it will continue. Still, there is corruption as a big issue in
country and it is deteriorating. It has intensified to the level that even launching is new business
may need the organization to make payments to government officials and authorities. Political
factors are not favorable for Target Australia (Datta, Ailawadi and van Heerde, 2014).
Fluctuations and transformation in regulations are influencing retail industry.
Both local and overseas organizations are treated equally in Brazil and costs of labor are
significantly low. It can make the business expansion somewhat favorable. The corporate tax in
nation is fixed at 15% and it does not have incentives for parting profits. In comparison to other
nations, like; Ireland and Greece, tax rates are comparatively high (Daoud, 2016).

MARKETING PLAN 8
Infrastructure Indicators
The transportation infrastructure in Brazil faces several challenges. As per the World Economic
Forum, Brazil is on the 107th rank among 144 nations in terms of infrastructure indicators. The
Government of Brazil is making various improvements in port or airport infrastructure. The
government has introduced an aggressive program of port concession in various cities in Brazil.
The major objective of this is to increase the trade, decrease the barriers to market entry, decline
the high costs of operating business in Brazil country (Euromonitor, 2017). There are various
airports in the country, through which Target Australia can ship its products and items in
country. Roads and ports need to be renovated in Brazil. In this country, the most effective and
common method of product transportation is in trucks through roads because of narrow rail
network. In the country, the railroads are uncompetitive and few and the rail for long distance
cargo transportation is limited to some of its urban routes. The country rarely utilizes the water
ways for supplying the products and services from Australia to Brazil. Thus, the infrastructure
indicators in Brazil are moderate for Target Australia (Fehrnstorm & Rich, 2009).
Demographic Trends
In Brazil, retail business and consumers can anticipate a bright and promising future. The groups
of consumers and employment rates are increasing, when the economic uncertainty, political risk
and inflation are continuing to stabilize. In this country, the retail sector has grown by 16% that
is slightly more than 14% expected growth. There is a sound development in the economy of
Brazil due to two major events in the country, i.e. World Cup 2014 and Olympic Games. These
are the events, which boosted the telecommunication, retail market, infrastructure in the country.
It has created more than 2 million jobs in Brazil (Hitt, Ireland & Hoskisson, 2009). One
significant consequence of this growth in the economy of Brazil has been the development of C
SES level that shown by more than 40% of the public, which is migrating from level of poverty
to consumer levels. The demographic trends of Brazil will be favorable for the target Australia
Organization.
Effect of Seasonal or Climate factors
According to geographic location of Brazil, it is easily available by the sea that means the nation
has an exit to the Atlantic Ocean. The equipment, raw materials and goods can be easily shipped
by the way of sea that is not expensive in comparison to air transportation.

MARKETING PLAN 9
The climate of Brazil is very much different and most of the part of country is within tropical
zone. This climate includes two seasons; one is rainy, i.e. summer and dry season, i.e. winter.
Moreover, geographical location of the country indicates there are not natural disaster like;
Tsunami and earthquakes that may lead to stoppage of product delivery and shipping. These
environmental and climate factors will be moderate for Target Australia while expanding
business operations in Brazil (Iyer, Grewal, Javalgi & Radulovich, 2015).
Nature of Demand
There are some factors, geographic, ageing population, psychographic characteristics, which
affect the nature of demand for retail products. Retail store sizes in the country have been
decreasing due to aging population, because older people do no prefer to carry a heavy shopping
bag. Life expectancy rate in this country is grown from 69.5 years to 72.7 years.
The geographic and demographic factors are major factors, which have been increasing the
demand of retail products in the country. In this country, profit destruction of retailers has been
because of low demand of the products that is coupled with electricity costs and high rents. In
this country, there are so many retailers and shopping malls, which are trying to overcome these
trends by reducing and abandoning the amount of deposit that is charged from retailers in the
country (Keller, 2009). The demand for products is increasing because of young adults and
elderly consumers.
Extent of Demand
As per the Brazilian Institute of Geography and Statistics, the retail volume sales have fallen by
4.5% in the year 2015 over past years. In the web-based sales of retail products in Brazil
accounted for 4% of the total retail sales volume in the comparison of 13% in United Kingdom.
Leading shopping malls in this country are confronting decreasing occupancy rate over previous
2 years.
Competitor Analysis
In the Australian Retail industry, there are various other leading players, which impose
competition for Target Australia. These competitors are such as; Woolworths Limited, K-mart,
David Jones, Wal-Mart etc. In the industry, the threats of new entrants are not high as the retail
sector is declining the revenues and operational expenditures in the industry are very high. These
factors are influencing the attractiveness of this industry adversely. There are so many

MARKETING PLAN 10
international brands in the industry, which may affect the growth and success of Target Australia
(Kipley & Jewe, 2015).
Organization’s Assets and Skills
There are some assets and skills of an organization, which it needs to manage in expanding
business in another country.
Competitive strategy
Target Australia targets mid-priced customers to make investment in new refurbishments and
stores. It utilizes different communication methods to approach its customers, like; social
networks and internet. The organization is considering the refinement of goods presentation in
retail stores and shipping of the goods and services in market. It is continuously focusing on
primary customer destination and fast delivery of diverse product lines (Kotlar & Armstrong,
2012).
Human resources
Human resources play an important role in retail industry. The company has hired the people
with customer-friendly and expert workers. The people at Target’s retail stores are offering better
services to their customers. They are assisting the customers in offering great shopping
experience. They have great skills and abilities in retail industry.
Technology
Target Australia is technologically concerned and attempting to use social networking and
media. The organization is contacting with its customers by using different social networking
sites, like; Twitter, Facebook, Instagram etc. In Brazil, the increased use of advanced technology
will assist the company in enhancing its customer base (Luttrell, 2016).
4.0 SWOT Analysis
Strengths and Weaknesses
Target Australia holds a strong brand image in the Australian retail industry. The logo of Target
Corporation is identified most of the population in the country. From last few decades, the brand
promise of the company is “Expect more- pay less. This brand has become an iconic brand for all
the stylish, cool and hip people in the world. Other strength of the company is that it deals in a

MARKETING PLAN 11
diversified range of products and services, like; toys, cosmetics, consumer electronics, clothing,
home appliances etc. Target Australia has powerful proficiency in the marketing and promotion
in more beneficial segments of retail sector, like; fashion segment, consumer electronics,
household items etc. Moreover, the company has the potential and ability to establish better and
strong relationships with its suppliers and customers and offer them an unforgettable and great
experience of shopping. For Target, its low cost model also works as a major strength as it assists
the organization in increasing its customer base (Luxton, Reid and Mavondo, 2015). The
advertising campaigns and exclusive marketing strategies have positioned the organization as a
perfect discount store. The entity has enticed the customers, which may never shop at its retail
stores through its ads on television and via print media. In addition to television ads, the
company offers catalogs, weekly circular ads and other brochures. The marketing and
promotional program of Target Australia continues to enhance by executing new modes, like;
launching of their in-store network.
Apart from these strengths, there are some aspects of Target, which make it weak against its
competitors. One of the major weaknesses of the company is that Target has limited presence in
global markets. Target Australia is situated in Australia only. There are so many states, which are
presently void of Target Australia. The company may have benefits by expanding the business
globally. The company is offering the products at low prices comparatively; it can affect the
revenues and profits of company. Recruitment and hiring of more workers at stores will cause
higher costs to conduct training and development program. Moreover, Target Australia is facing
intense competition from other leading players in Australian retail industry (Men, 2017). During
recent years, Target Australia has been the victim of several law cases. The organization was
forced to pay a huge amount and adopt a training program after becoming defendant of
dwindling to accommodate a worker with disability. It was accused of various suits related to
employees and hiring practices. All these are the major aspects, which are affecting the image
and reputation of company.
Threats and Opportunities
The major opportunity that Target Australia may have is expansion of business in international
markets. Entering into international market can be very beneficial for Target Australia. It can
assist the organization in enhancing its brand image and increasing its revenues and profits.

MARKETING PLAN 12
Along with this, the company should make the domestic expansion and make its presence in the
cities, where it does not have its retail stores. There are some other opportunities, such as;
enhancement of its grocery stores in sustainable seafood and organic foods, future development
of online retail capabilities and direct the retail industry in managing the eco-friendly business
processes (Miotto & Parente, 2015). By expanding its business in Brazil, Target Australia may
have various positive opportunities in retail industry. The economic and environmental
conditions are favorable for Target in Brazil, so it will be good to expand business in this
country’s retail market.
In addition to these opportunities, there may be some factors, which can pose threats on
company. Competition is one of the major threats for the Target Australia. The retail business is
a cut throat ground. Target Australia is competing with various domestic and international retail
launches as well as a host of online businesses which sell very small product categories. There is
a huge competition with various competitors, like; K-mart, Wall-Mart, David Jones etc. Along
with these local players, there are so many overseas retailers, which are posed to come in retail
industry. The combination of these aspects can take a major portion out of market share of
Target Australia. Taxes are very higher in Brazil country in comparison to other countries
(Parker & Justine, 2016). In addition, the company is facing a threat that is caused due to loss of
confidence and trust of consumers in online retail processes after the case of data breach in the
year 2013. In this business expansion, the company may face the issues related to political
conditions in the country. There is high level of corruption in the country, so the company will
get affected due to this.
Implications of SWOT analysis
Thus, on the basis of above analysis, it can be evaluated that Target Australia should attempt to
expand and enter its business operations in Brazil. The company is already a strong brand in
Australia, so it will be able to expand business successfully. PEST analysis about the country’s
retail industry indicates that all the factors except political conditions are favorable for the
business of Target Australia. The company should enter into Brazilian market with effective
strategies, so it can gain competitive advantages over existing retailers in the country (Pantano,
Priporas, Sorace & Iazzolino, 2017). By this, the company will be able to establish and maintain
a profitable business in international market.