Analysis of Loblaw Supermarket's International Marketing in Australia

This report provides an analysis of Loblaw Supermarket's potential expansion into the Australian market. It begins with an overview of Loblaw Companies and its operations, followed by an examination of the opportunities and challenges of entering the Australian market. The report utilizes PESTEL ...Read More

Running head: INTERNATIONAL MARKETING MANAGEMENT
International Marketing Management
Name of the Student
Name of the University
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Executive Summary
The report has been able to analyse the most effective expansion strategy of Loblaw
Supermarket in the Australian economy. It has been noticed that in the current scenario, the
company can be expanding their business in Australia as they have the most efficient
business operations and it will be effective for improving their efficiency to a large extent.
With the assistance of PESTEL, Ansoff Matrix along with marketing mix, it can be seen that
the company will be appropriate in managing their performance in the country Australia.

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Table of Contents
Introduction and Overview of Loblaw Supermarket.................................................................3
Expansion of Loblaw to Australian Market and Opportunities.................................................3
Analysis of Strategies for Expansion and Increase in Revenue.................................................5
Segmentation, Targeting and Positioning of Loblaw in Australian Market..............................6
Marketing Mix (4Ps) and Recommendations............................................................................6
Conclusion..................................................................................................................................8
References..................................................................................................................................9

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Introduction and Overview of Loblaw Supermarket
The Loblaw Companies is one of the largest supermarkets and Canadian food retailer
which is operating in Canada. The company was incorporated in the year 1956 and the
company falls under the retail segment. The revenues which have been earned by the
company is around $45394 CAD till the year 2015 and it helped them in improving their
effectiveness. The number of employees who are working in the company till the year 2012
includes 135000. The different products and services which are sold by the company includes
apparel, footwear, hypermarket and supermarket products as well as services. The brands
which are delivered by them to the customers include President’s Choice (Loblaw.ca, 2020).
Expansion of Loblaw to Australian Market and Opportunities
While Loblaw is planning to expand their operations in the different country, the most
suitable option can be considered is Australia. The main reason behind the same is the sound
legal and governance related framework along with stability in the political scenario. It helps
in providing the different companies which are planning to expand with secured level of
investment as well as business environment. As per the regional market characteristics of
Australia, it has been noticed that the same has grown by 0.4 pc in the first quarter and the
GDP of the individuals have increased which led to the strong stability in expanding business
(Zhao et al., 2017).
PESTLE Analysis of Australian Economy
Political Australia is one of the stable economies in
the world which is suitable for starting a
new venture of expanding the business
effectively which will be impacting the

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growth prospects of the Loblaw
Supermarket in improving business
operations (Trigeorgis & Reuer, 2017)
Economic There are certain areas in the business
which have certain areas for great
investment. The cost of living in the large
cities such as Melbourne and Perth are
dramatically less expensive cities in the
world and it is effective in managing their
growth prospects (Newburry, Deephouse &
Gardberg, 2019)
Social Australian economy is multicultural as well
as multiracial and Loblaw Supermarket can
be offering the products and services to the
different customers from various income
groups which will be efficient
Technology There is high level of innovations in the
technological front due to which it will be a
high level of advantage for Loblaw to
innovate and introduce the different services
such as the self service check out like
Woolworths (Hitt & Duane Ireland, 2016)
Legal There are different legal rules and
regulations which have been introduced in

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Australia which will be required to be
followed by Australian economy and it will
be providing advantage for Loblaw to
operate efficiently
Environmental The environmental protection act and other
acts are considered in a high manner which
will be impacting the effectiveness of the
supermarket in a positive manner
Analysis of Strategies for Expansion and Increase in Revenue
From the regional market characteristics as well as PESTEL analysis of Australian
economy, it has been noticed that it is one of the most suitable countries wherein Loblaw can
expand their operations successfully. With the help of Ansoff Matrix, it can be seen that there
are different kinds of strategies which can be implemented for improving their growth
prospects suitably.
Market Development is the first and foremost strategy which can be adopted by
Loblaw Supermarket as the strategy focuses on entering the new market and using the
existing products. Through the market development, Loblaw Supermarket will be entering in
Australian economy and they will be able to capture the different customer segment. The
same products will be offering the same kind of products to the new demographics which will
be effective for growth of the company in a positive manner (Certo et al., 2016).
Segmentation, Targeting and Positioning of Loblaw in Australian Market
Segmentation In the Australian economy, the company
will be segmenting their products and

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services to the different working
individuals as the GDP and the cost of
living of the individuals is high and it will
be helping them in improving their
profitability (Certo et al., 2016)
Targeting The target individuals will be including the
different working individuals and the ones
who prefer to shop all the items from one
store itself
Positioning The company Loblaw will be positioning
themselves as the high quality as well as
moderate priced product company wherein
they will be able to improve their
effectiveness
Marketing Mix (4Ps) and Recommendations
With the implementation of the market development strategies, it can be seen that the
company can be incorporating the similar products in the Australian economy wherein the
pricing can be lowered at the first place which will be helping them in attracting the large
section of the market successfully. Additionally, the company can be selling products to
customers through both online and offline selling strategies and patterns which will be
effective for them in improving their selling percentage to a large extent. Lastly, there should
be changes in the promotional strategies that will be required to be adopted by Loblaw in

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Australian market as they are entering in the market which is new, therefore, the company
needs to implement the social media advertising as well as offline promotional techniques for
managing growth.
Product The products which are sold by Loblaw
includes different kinds of apparels,
groceries along with footwear to the
customer segment which is existing in the
Canadian market (Hitt & Duane Ireland,
2016)
Price The pricing strategy needs to include the
penetration pricing strategy in the
Australian economy for starting the market
with the low price and it will be effectively
drawing attention of the other customers
(Hitt & Duane Ireland, 2016)
Place The place will be both online and offline
mode wherein the company will be able to
sell to the different customers with the
different products and it will be enhancing
their growth prospects successfully
Promotion There will be inclusion of high level of
promotional aspects as it will be beneficial
in attracting the new segment of customers

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in Australia
Conclusion
Therefore, it can be concluded that Australian economy is the most significant
economy wherein the Loblaw supermarket can be expanding their business operations.
Through the inclusion of market development strategy, the company will be able to improve
their growth prospects successfully.

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References
Certo, S. T., Busenbark, J. R., Woo, H. S., & Semadeni, M. (2016). Sample selection bias and
Heckman models in strategic management research. Strategic Management
Journal, 37(13), 2639-2657.
Hitt, M., & Duane Ireland, R. (2017). The intersection of entrepreneurship and strategic
management research. The Blackwell handbook of entrepreneurship, 45-63.
Loblaw.ca (2020) Loblaw Companies Ltd (Online) Retrieved from https://www.loblaws.ca
[Accessed on 4th March 2020]
Newburry, W., Deephouse, D. L., & Gardberg, N. A. (2019). Global aspects of reputation
and strategic management. Global Aspects of Reputation and Strategic Management,
1-20.
Trigeorgis, L., & Reuer, J. J. (2017). Real options theory in strategic management. Strategic
Management Journal, 38(1), 42-63.
Zhao, E. Y., Fisher, G., Lounsbury, M., & Miller, D. (2017). Optimal distinctiveness:
Broadening the interface between institutional theory and strategic
management. Strategic Management Journal, 38(1), 93-113.