Researching International Markets: Priceline Pharmacy in Nepal

This report examines Priceline Pharmacy's potential for international expansion, specifically focusing on the Nepalese market. The analysis includes a company background, market selection rationale, and a detailed PESTLE analysis of the macro-environment, considering political, economic, social, technological, legal, and environmental factors. A target market analysis identifies key demographics and psychographics. The micro-environment is assessed through a SWOT analysis, evaluating Priceline's strengths, weaknesses, opportunities, and threats in the Nepalese context. The report offers recommendations focusing on employee satisfaction, training, promotional strategies, and product development to enhance the company's prospects in Nepal. The conclusion summarizes key findings and strategic implications for successful market entry and sustainable growth.

Running head: RESEARCHING FOR AN INTERNATIONAL MARKET
RESEARCHING FOR AN INTERNATIONAL MARKET
Name of the student
Name of the university
Author note

1
RESEARCHING FOR AN INTERNATIONAL MARKET
Executive summary
In the study it has been identified that the prince line pharmacy is one of the favorite health and
beauty retail company in Australia, which is going to develop its business market in Nepal in the
current scenario it has been identified that the political and economic condition is not in the
stable position for developing a new business however, It cannot be denied that that level of
competition in the Nepal Market is shallow which will be beneficial for the company to get
customers attention. In this study, it has been identified that in the current scenario of the
company name Priceline pharmacy is dealing with the challenges regarding the employee
conflict. The performance management system is getting affected. Here study has suggested that
if the company needs to develop its business in Nepal Market, it needs to focus on customer
satisfaction. Not only the customer satisfaction employee satisfaction is essential by introducing
a reward and recognition policy is easy. Promotional activities have also been highlighted in this
study for the business development.

2
RESEARCHING FOR AN INTERNATIONAL MARKET
Table of contents
Introduction......................................................................................................................................3
Company background......................................................................................................................3
Market selection...............................................................................................................................4
Macro environment-PESTLE analysis............................................................................................4
Target market analysis.....................................................................................................................6
Micro environment- Consumer analysis..........................................................................................7
Recommendations............................................................................................................................8
Conclusion.......................................................................................................................................9
Reference list.................................................................................................................................10

3
RESEARCHING FOR AN INTERNATIONAL MARKET
Introduction
The purpose of the report is to analyze a chosen brand based in Australia in terms of its
international expansion strategies. It will systematically discuss the macro and micro
environmental factors concerning the company. The paper’s scope is to provide
recommendations for improving its strategies of the international market. The theories of
international marketing shall also be used for the analysis.
Company background
Priceline Pharmacy is an Australian health and beauty retail company operating under the
brand name of Priceline since 1982 (Priceline.com.au 2018). The pharmacy employee over 300
staff across Australia and the Australian Pharmaceutical Industries is its parent organization. It is
one of the most renowned brands in the domestic market but has to make a mark internationally.
Within the Australian business environment, the company has a stronghold. The loyalty club
membership provided by the company has attracted over six million customers, and the number
is still growing. The reason for its success is the reward given to the members. The company has
also introduced new changes in its various stores from lighting to cleaner layout and so on.
Further, it has also successfully launched a new store in Melbourne, which shows its tremendous
success rate in the Australian market. The brand aims to achieve the rate of opening 20 sites per
year under its national expansion approach.
With over 300 employees and around 330 stores across Australia, Priceline Pharmacy is
one of the fastest growing franchises in the country (Priceline.com.au 2018). It refers to the
strong organizational resources the organization has including human resource. When it comes to
technological resources, its loyalty program is an excellent example of the excellent utilization of

4
RESEARCHING FOR AN INTERNATIONAL MARKET
the technological sources. With the engagement of TCS with API in 2013, Priceline Pharmacy
received a whole new technological makeover. The integration of SAP ERP ensured seamless IT
functioning in the company.
Market selection
In order to expand its business, the company has chosen Nepal's market. It has been
identified that after the tough situation, the economic situation in Nepal is changing. As the
company provides the health and beauty products, therefore, in the developing countries like
Nepal, the products will be readily accepted by the customers. On the other hand, it is true that
the availability of the foreign companies in this country is very less. Due to this reason, it will be
able to gain the market advantage quickly. As the slow technological development process,
therefore, when the company will enter the market with its modern technological equipment, it
will be able to attract the customers. On the other hand, lower employee wages is another
influencing factor for developing the business organization. The business market will be cost
effective for the company. The large business market in Nepal will help to increase the rate of
profitability. Due to these reasons, the company has selected Nepal to develop its business.
Macro environment-PESTLE analysis
Situation Analysis
Political The political situation in Nepal is not in the stable position. Due to
various types of political movements and chronic instability between
the political parties create the tough situation in Nepal (Panta and
Resurrección 2014). In this situation, it becomes tough for an
organization to develop its business.
Economic It has been identified that from the lasts few decades the political

5
RESEARCHING FOR AN INTERNATIONAL MARKET
instability, as well as the 10-year violent insurgency, have destroyed
Nepal's economy. However, in the year 2016, the GDP rater in Nepal
was 211.39crores USD (Nepal 2015). It shows that Nepal's economy is
growing slowly. It can be expected within 2010 Nepal will not be
defined as the Lower middle-income countries. Hence, it can be
expected that the company will be able to develop its business in Nepal
successfully.
Social The social situation depends on the economic stability of the country. It
has been identified that the people in Nepal are fond of beauty products
(Haug and Aasland 2015). From upper to lower middle-class people
use different beauty brands. Hence, it can be said that it will be
beneficial for the Priceline Pharmacy to develop a large customer base.
Technological It cannot be denied that Nepal is the late starter in the technology and
modern science. Hence, it can be said that the technological
development in this country will be shown slowly compared to the
other countries (Panta and Resurrección 2014). Due to improper
technological capabilities, it may bring the challenges for the Priceline
Pharmacy to develop its business.
Legal After analyzing the industrial policies in Nepal, it has been identified
that in the current situation, the government has developed different
incentive policies. Investment has become more comfortable for the
fare government rules (Basnyat et al. 2018). Therefore, it can be said
that the legal situation in Nepal is in the favorable condition for the

6
RESEARCHING FOR AN INTERNATIONAL MARKET
company.
Environmental Action plan and Nepal, environmental policy focus, to manage the
physical and natural resources for maintaining the environmental
sustainability (Nagoda and Eriksen 2015). In this situation, the effective
waste management strategy is needed to be adopted by the company. It
will help the organization to expand its business in Nepal market.
Target market analysis
Market segmentation is critical in the business development practices (Cross, Belich and
Rudelius 2015). Depending on the range of the products and availability the market segmentation
is being set. It has been identified that the company named Priceline Pharmacy provides the
health and beauty products in the reasonable ranges in the market. Therefore, from the
demographic segmentation, the company has targeted the middle class, and lower middle-class
people are being targeted by the company. In terms of industry sectors, it targeted the hospitals
as well as the healthcare professionals. The company has a large target market in the case of
health products. In this case, the company targets every age group of people. From children to
aged people are on the target list of the company. On the other hand, in the case of beauty
products, mainly targets the women customers as it cannot be denied that most of the cases the
beauty product developing organizations are being developed based on the availability of women
customers.
On the other hand, in the case of geographic segmentation, the location of the stores are
being selected. The organization needs to establish its stores where it can quickly get highlighted
(Weinstein and Cahill 2014). The product stores are being developed depending on the target

7
RESEARCHING FOR AN INTERNATIONAL MARKET
market location. The connectivity and transport communication influence the geographic
segmentation choosing process. In this case the company it has decided to develop its stores in
Katmandu. It will be beneficial for the company as it is the capital of Nepal, therefore, the
population in this area is high. Another way, it can be said that the connectivity such as airports
and other transport facilities are available in this place.
Psychographic segmentation is also essential for the organization (Hatheway, Kwan and
Zheng 2018). As it has already established its strong brand image in the industry, therefore, the
customers who are attracted towards the international brands will definitely get attracted towards
the company. On the other hand, it can be said that the technological utilizing process of the
company can also attract a large number of customers.
Micro environment- Consumer analysis
The micro environment is vital to get analyzed for organizational development (Yang et
al. 2014). Through this process, the internal situation of the company can be analyzed, depending
on which the company can be able to develop effective strategies for maintaining its position in
the market. In order to analyze the Micro environment, SWOT analysis has been done.
Strength: The biggest strength of the company is it has already developed its strong brand image
in the market. With the large customer base, the company is growing in the fastest manner. After
the technological development, the company has set the example of utilization of modern
technology in the pharmacy industry. On the other hand, it has been identified that the company
has introduced training and development practices which have increased its performance
efficiency. Using its unique marketing strategy the company has gained the customers’ trust.

8
RESEARCHING FOR AN INTERNATIONAL MARKET
Weakness: Employee conflicts in the workplace is the major weakness of the company. It has
been identified that although the company has developed its strong brand image in the market,
however, the changing demand of the customers has brought the challenges for the company.
Increasing substitute products and services have created barriers for the company to maintain its
unique image in the market.
Opportunities: In the current scenario, the pharmacy industry is growing in the fastest manner.
After the introduction of technological equipment in the industry, the rate of employment has
increased in this industry. With the increasing development of the Pharmacy industry, a large
number of people have shown their interest towards involving themselves in the sector due to
this reason the availability of employment has got improved. After the increasing contribution of
Pharmacy Industry in the GDP rate, the government has shown interest
Threats: It has been identified that the strict international policies are the significant barriers for
the company. Due to different taxation policies and currency related issues have created
significant threats for the company. It is also true that increasing numbers of competitors in the
market have created a challenge for the company. Therefore, this can be said that due to such
threats from the government and competitors, the company is dealing with the tough situation.
Recommendations
 With the improvement in employee performance, the company also needs to focus on
employee satisfaction.
 Effective reward and recognition strategies can help in the case of appreciating the
employees

9
RESEARCHING FOR AN INTERNATIONAL MARKET
 Proper training and development practices are required for introducing the unique service
in the market.
 Unique product development strategy by using the technological tools can attract the
customers.
 Effective promotional strategies as well as performance measurement tools are needed to
get introduced in the market.
Conclusion
In can be concluded that if the company focuses on providing the better environment to
the employees so that they can discuss their problem with the management, it will be beneficial
for the company to handle the internal culture. It will also be helpful for the organization to avoid
certain risks. After analyzing both the macro and microenvironment of the company, it has been
identified that in order to develop its business in the Nepal market, the effective strategic
development is required. As the study has mentioned that it has already developed its strong
image in the international market, therefore, in this situation the effective promotional strategies
are required to get developed by the company. If the company is able to introduce the
performance management tools as well as employment wellbeing policies, this will be helping to
increase the arte of profitability.

10
RESEARCHING FOR AN INTERNATIONAL MARKET
Reference list
Basnyat, B., Treue, T., Pokharel, R.K., Lamsal, L.N. and Rayamajhi, S., 2018. Legal-sounding
bureaucratic re-centralisation of community forestry in Nepal. Forest Policy and Economics, 91,
pp.5-18.
Cross, J.C., Belich, T.J. and Rudelius, W., 2015. How marketing managers use market
segmentation: An exploratory study. In Proceedings of the 1990 Academy of Marketing Science
(AMS) Annual Conference (pp. 531-536). Springer, Cham.
Hatheway, F., Kwan, A. and Zheng, H., 2017. An Empirical Analysis of Market Segmentation
on US Equity Markets. Journal of Financial and Quantitative Analysis, 52(6), pp.2399-2427.
Haug, M. and Aasland, A., 2015. Exploring Dimensions of Women's Social Exclusion and
Inclusion in Nepal.
Melikov, A.K., 2015. Human body micro-environment: The benefits of controlling airflow
interaction. Building and Environment, 91, pp.70-77.
Nagoda, S.M. and Eriksen, S., 2015. The role of local power relations in household vulnerability
to climate change in Humla, Nepal. In Climate Change Adaptation and Development (Vol. 200,
No. 218, pp. 200-218). ROUTLEDGE in association with GSE Research.
Nepal, S., 2015. Importance of Financing for Nepalese Agriculture and Economic
Development (Master's thesis, The University of Bergen).
Panta, S.K. and Resurrección, B.P., 2014. Gender and caste relations amidst a changing political
situation in Nepal: Insights from a farmer-managed irrigation system. Gender, Technology and
Development, 18(2), pp.219-247.

11
RESEARCHING FOR AN INTERNATIONAL MARKET
Panta, S.K. and Resurrección, B.P., 2014. Gender and caste relations amidst a changing political
situation in Nepal: Insights from a farmer-managed irrigation system. Gender, Technology and
Development, 18(2), pp.219-247.
Priceline.com.au 2018. Available from https://www.priceline.com.au/
Warnick, R.B., Bojanic, D.C. and Xu, F., 2015. Using a trade market analysis technique to refine
measurements for economic impact analysis of special events. Journal of Travel
Research, 54(1), pp.52-65.
Weinstein, A. and Cahill, D.J., 2014. Lifestyle market segmentation. Routledge.
Wyatt, G.A., Kiers, E.T., Gardner, A. and West, S.A., 2014. A biological market analysis of the
plant‐mycorrhizal symbiosis. Evolution, 68(9), pp.2603-2618.
Yang, Z., Cao, J., He, Y., Yang, J.H., Kim, T., Peng, X. and Kim, J.S., 2014. Macro-/micro-
environment-sensitive chemosensing and biological imaging. Chemical Society Reviews, 43(13),
pp.4563-4601.