International Marketing Opportunities: A Woolworths Case Study

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Evaluate International Marketing Opportunities

Contents
Evaluate International Marketing Opportunities............................................................................1
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................4
Q1....................................................................................................................................................4
a. Briefly explain what are the key factors that a company need to take into consider before
embarking into international business.........................................................................................4
b. Austrade has a new online tool i.e., International Readiness Indicator, to help Australian
companies get into export. Why it is important for first-time Australian companies is
encouraged to use this tool..........................................................................................................5
c. What are the key elements of an export strategy?...................................................................5
d. Free trade agreements that are entered by the countries government which are in force........6
e. Explain the role of the Organisation for Economic Cooperation and Development (OECD).7
f. Provide a brief discussion on the potential of e-commerce......................................................7
g. What are the costs to be included when setting export prices?...............................................8
h. Briefly explain what is the Export Market Development Grants (EMDG).............................8
i. Explanation of the following....................................................................................................8
j. What are considerations when it comes to managing legal issues?.......................................10
Task 2.............................................................................................................................................11
1.................................................................................................................................................11
2.................................................................................................................................................16
3.................................................................................................................................................18
References......................................................................................................................................20

Introduction
The term marketing is considered to be one of the most important tool that the company attains
so to market the products and the services that are sold by them. This is seen that the
international marketing is considered to be the activity where the company desires to make their
product go to the other continent or the country which is considered to be helpful to them. It is
seen that here the marketing managers of the company checks the PESTEL analysis and applies
various other tools that helps in getting the analysis of the international market so that they are
able to enter into it (Ahmad, 2015). This is seen that this market is considered to be helpful as
through this the company can expand the business and earn the profit that they desire to achieve.
Hence for the purpose of making the business international this is important to identify the legal
requirements that are applicable on the type of business that the company does. This is
considered that there are various factors that the company should take into consideration for
making the business international. For the purpose of international marketing the company that is
taken into consideration is Woolworths. This is one of the biggest supermarket chain in Australia
that has various stores across the country. This report would contain the analysis of various
requirements for making the business of the company international. Also the identification of the
two markets would be done which would help in making the company achieve the objective of
making the business of the company international.

Task 1
Q1
a. Briefly explain what are the key factors that a company need to take into consider before
embarking into international business
While assuming being working for the company which is Woolworths, the CEO of the company
decided to expand the business overseas and desire to get the information about the Australian
standards, policies and the guidelines that are required to be followed for making the business
expand. This is the seen that exporting is considered to be one of the most important and
profitable object that the company desires as the company has the opportunity to attract the
customers which are located outside the continent (Butler, 2016). This also enables the company
to not to depend on the local market and achieve the profits as desired. This is seen that there are
various laws and standards that are made by the government of the country so as to achieve the
objective of regulating the export of goods from the country. This is seen that company
needs to focus on the various key factors that relates to the international business and exporting.
This is seen that for exporting the goods and for going international the company needs to check:
 Intellectual property registration: this is considered as one of the most important step that
must be fulfilled first by the user. This is seen that it is important to make the IP
protection and get the product protected in the international market as this takes time. The
government of the country has made the international agreements with the various
countries regarding the international sue and hence the business organisations needs to
focus on various intellectual property and also needs to register them as early as possible.
 Financial assistance: This is considered as one of the factor that the company needs to
take into consideration. As this is important of all the without it the business cannot be
successful and achieve the profits that it desires. The company should consider the
financing and the export development plan as there are various forms of the finance that
are available to the company.
 Freight and logistics: It is considered to be important to understand the freight and
logistics pattern for the country. As this is important to deliver the goods through
logistics in a best possible manner so that the product does not get hampered and the
company does not get hampered. The legal relation that is related to the transport of the

goods must be checked so that the goods does not fall under the legal obligation where
they are stopped in the custom boundary.
 Licensing: This is most important factor that effects the companies. As the company is
required to take the license from both the local government and the country in which the
company needs to export the products. This is important as this helps them in achieving
the objective of making the product more significant and effective. This is important as if
the license is not acquired by them then it would lead the company to export the product.
b. Austrade has a new online tool i.e., International Readiness Indicator, to help Australian
companies get into export. Why it is important for first-time Australian companies is
encouraged to use this tool.
The Austrade’s international readiness indicator is considered as the online tool that is made for
the new exporters that join the regime of making the export in the country. This helps in making
the business man decide whether the business is considered to be ready for the export. This is
considered as important as this helps in knowing whether the business has completed all the
requirements for making the business go international (De Villa, Rajwani & Lawton, 2015). This
is also seen that it is considered as the tool which is based on 12 parameters that helps in
checking the supply capacity of the company, selling proposition, marketing material
requirements, finance to assist them and the pricing of the products that the Austrade’s should
keep so as to attain the profits.
This would lead to produce a certificate that would help in indicating the international readiness
of the firm. This will also provide the information and the sources of the assistance which will
help the business to easily find the department that is required in the process.
c. What are the key elements of an export strategy?
This is seen that there are various key elements that are related to the export strategy. Through
this the company can bring the export goals into the sharp focus so that they are able to achieve
the objective of making the business international. These export strategy includes the following:
 Defending the market position against the current exporters: This is seen that it is
important for the exporter to defend the market position as there are various current
exporters who can hamper their market.
 Reducing seasonal demand swings: the company Woolworth should check and
understand the seasonal demand swings that are considered to be important for the

company that is exporting the product. They should keep an eye on the products and
service that they are selling whether they are according to the seasonal demand or not.
 Reducing the fixed cost: the company should make the strategy which enables them to
reduce the fixed cost that is associated with them. As it is the cost that is fixed over all the
expense and hence they should take some steps to reduce the fixed cost burden on the
income of the company.
 Realising the production capacity: The Company so as to achieve the target must utilise
the production capacity to the fullest. As this is seen that through exporting the company
would be needed to sell the product outside the country’s borders and also to the local
market and hence the production capacity needs to be increased as the demand for the
product would increase effectively.
 Adding the management capability: this is the tool that must be used by the company so
as to manage the capability of the management of the company. The company should hire
more managers which are specified to the particular field. Through this the company
would be able to manage the internal sales as well as export sale.
d. Free trade agreements that are entered by the countries government which are in force.
These are considered as the treaties that are entered into by the countries government so as to
achieve the objective of making the goods freely movable in the country within and outside the
territories of the country (Dunning, 2015). This is seen that the country has entered into 11 free
trade agreements with the other countries. Some of the agreements that are entered into by the
country includes the following:
 Australia United States: this was the agreement that was entered into between the
Australia and US for the free movement of the goods between the countries. This is seen
that US is the largest investor in Australia which account for 27 percent of foreign
investment. This is seen that this helped both the country to trade more efficiently and the
effectively.
 Japan Australia: this is the free trade agreement that has been entered into between Japan
and Australia. This is seen that the agreement provides the valuable preference to the
Australia’s exporters and japan importers so as to invest in the country. This is
considered as the most liberalised trade agreement that has been entered into by the
country.

 China Australia: this is the free trade agreement that is entered between Australia and
china. This agreement helps in delivering enormous benefit to Australia which helped in
enhancing the competitive position of the country in the Chinese market which helped in
boosting the growth economic benefits.
 Thailand Australia: It is considered as the free trade agreement that helps boosting the
trade between the countries. In this agreement the elimination was done of the 94 percent
of the Thailand tariff on the import of the goods from Australia giving it a boost. Also the
guarantee was given for the investment protection in the country to the business owners
of the Australia.
e. Explain the role of the Organisation for Economic Cooperation and Development (OECD)
This is seen that the organisation for economic cooperation and development is considered to be
the organisation that helps in achieving the objective of creating better policies for better lives so
that they are able to achieve prosperity, equality, opportunity and wellbeing for all the people of
the country. This is seen that organisation work with the governments and the policy makers and
the citizens of the country for establishing the norms and finding the solution that is considered
to be evidenced based. This is seen that the range of social, economic and the environmental
challenges are part of the solution that organisation makes (Eriksson, et. al., 2015). The role of
organisation includes improving the economic performance of the country, creating jobs and the
fostering the strong education also last but not the least fighting international tax evasions. The
organisation also provide the unique forum for the data analyst for the exchange of the
experience, best practice sharing and the advice on the public policy.
f. Provide a brief discussion on the potential of e-commerce
The e-commerce market is considered to be one of the most important and impactful market that
the company can undertake so as to achieve the objective of getting most number of the sales
figure. This is the market through which the company can achieve the objective of earning the
profit as desired by the managers. This is seen that by year 2020 the online sales is expected to
reach a figure of US$4.1 trillion and 14.6% of the total retail sales of the year.
This is seen that many overseas market takes double digit growth in the case of online sales. This
is also seen that the exporting online is considered to be the good way of doing business across
the different countries.

g. What are the costs to be included when setting export prices?
This is seen that there are various cost that are included in the export pricing that helps in making
the company achieve the objective of deciding the price that is related to the product that it sales.
Hence some of the cost that are included in the export pricing includes:
 research cost that is made in the international market
 travel expense in the overseas market
 International communication cost
 Modification of the product that is related to specific needs
 Packaging and labelling costs
 Product liability and insurance
 Compliance cost for the foreign standards
 Credit checking
 Export financing charges
h. Briefly explain what is the Export Market Development Grants (EMDG)
This is seen that the Export market development grants is considered to be the scheme that is
made by the government of the country so as to provide the financial assistance to the aspiring
and current exporters. Here the government of the country has decided to increase the funding in
the scheme up to a value of $60MN in the three years from 2019-20. The funding is designed to
boost the industries in the Australia so as to increase the export in the country (Gerschewski,
Rose, & Lindsay, 2015). This is seen that this scheme is meant to encourage the small and the
medium sized Australian business to develop the export market.
i. Explanation of the following
 Political risk: It is seen that the political instability is considered to be one of the factor
that is important to take the decision of the making the export in the other country. Some
of the factors that are sub included in the political factors is effects of political changes of
the foreign affairs and trade, also the political risk insurance is considered to be one of
the factor.
 Legal risk: this is the risk that has to be considered by the company where the exporting
law changes as per different country. It is considered that there are various difference
which are considered to affect the export market and the products and the services. This
is seen that the legal process in the country is considered not to be same as in Australia

and hence this is helps in making the company achieve the objective of fulfilling the legal
structure of the country.
 Bribery, graft and corruption risk: This is the risk that is related to the illegal activity
which includes graft, bribery and corruption. This is considered to be the criminal offence
under the legal structure of the country. This is seen that the act applies to the
extraterritorial structure through which enables the conduct that is done outside the
country to punishable under the Australian law.
 Quarantine compliance risk: This is the risk that which is associated with the strict
quarantine requirements of the country. Hence the exporter must have the information
about what are the products that can be exported in the country. As if the restriction is
imposed on the product that is being export than it will result in loss to the company.
 Exchange rate risk: This is the financial risk that the company considers which is related
to the fluctuation of the value of the currency (Gilpin, 2016). This results in loss as the
rate of currency changes every day which is considered to be the difficult work to
forecast. Hence this risk must be considered by the company and the steps should be
taken accordingly.
 Non-payment risk: It is considered as the risk that is associated with the non-payment of
the amount that is due to the debtors of the company. Hence for this the company should
undertake the steps that helps them to achieve the advantage of clearing the non-payment
risk that are associated with the company.
 Social and culture consideration risk: This is the risk that is relates to the social and
culture consideration. This is the risk where the company has to consider the social and
cultural regulations of the country in which the company is exporting the product. This
helps in achieving the advantage of entering the country with full preparation and
knowing the mind of the people of the country.
j. What are considerations when it comes to managing legal issues?
There are various consideration which should be checked while managing the legal issue. Some
of these includes:
 Intellectual property: It is the form of the managing the legal issue that the company
should undertake so as to register the intellectual property and achieve the objective of
solving the dispute that generates due to the intellectual property that is registered under

the exporting company. This helps in resolving the dispute that is generated between the
countries.
 Dealing with terrorists: This is one of the most important factor that the company has to
undertake. The government of the country has taken various steps which enables the
criminal offence so as to hold the assets in the country (Hohenthal, Johanson & Johanson,
2015). This is considered as the step that specify that the company should not own any
asset with the association of the terrorist’s organisation. This conduct is considered to be
punishable for five years imprisonment.
 Dispute resolution: It is considered to be the method that the company should specify for
the purpose of dispute resolution between the employee and employer or the customers of
the company. The government has made various rules through which they are able to
provide the assistance to the firms so as to provide the referral to the local government.
 Foreign bribery: This is known to be the criminal offence that has been recognised by the
government of the country. This make the company liable if the company has entered
into any of the offence that leads to the bribery. Hence company should form the policies
in the foreign export where the bribery is not taken as the step for getting any government
support.

Task 2
1.
Name of the Australian company Woolworths
Company profile This is a subsidiary company having retail
business in the supermarkets. The company
was founded in the year 1924 and is
headquartered at Bella vista, New south wales,
Australia. The company is located at 995
locations.
The company is having Brad Banducci as the
CEO of the company. The company is having
revenue of $56.726Bn and the number of the
employee 115,000. The parent company of this
brand is Woolworth’s group.
Business goals and direction The goal of the business is to get the statement
that the customer put the company 1st across all
the brands that are fighting in this segment.
The company considered to be having some
other goals which includes the customer 1st
team 1st culture. Unlocking the value in
portfolio, accelerate innovative in the Drinks
business (Kobayashi, et.al., 2015).
The company is directed towards the new
purpose and the ways of working and the core
values activities. The company also demands
for the connected personalised and convenient
shopping experience. Also the transformation
of the Australian and the New Zealand food to
achieve the investment in New Zealand food
industry is the key feature. The company also
has the option to evolve and endeavour the

drinks and making the string sales growth
across the continent.
Current export activity The company is having the export of the goods
to various countries which includes US, New
Zealand, India, China and other countries. The
company is having the objective of exporting
the food products that are ready to eat. The
company is exporting to these location the food
material that are best in quality and which is
demanded by the customers more.
Product for export as an e-commerce business The company is currently only exporting the
food material and hence this is seen that the
company is not in the position to sell the
products through the e-commerce method. This
is also seen that if the company would export
other materials than it would consider to sell
through the medium of e-commerce. While the
company in the local market is having the e-
commerce platform where they sell the
products through the application that can be
used in the mobile phones of the users.
Target customers The companies target customers are the middle
and the high class service and the business
people who wants to purchase the products that
are considered to be of best quality. The
company wants to focus on the customers who
are considered to be having less time to
purchase the grocery of their home and wants
to get the best product in the short span of time
(Neelankavil, 2015).
The company is focusing on the customers