A Comprehensive Marketing Plan for Woolworths: Lamington Cake in UK

This report details a comprehensive international marketing plan for Woolworths, an Australian retailer, to introduce lamington cake to the UK market. The plan begins with an executive summary, followed by an introduction highlighting Woolworths' current market presence and the product's popularity. The report defines the aim and objectives of the market entry, focusing on gaining a competitive advantage and market penetration. A PESTLE analysis assesses the political, economic, social, technological, legal, and environmental factors influencing the UK confectionary market. SWOT and Porter's Five Forces analyses provide further insights into the competitive landscape. The marketing strategy incorporates STP (Segmentation, Targeting, Positioning) and the 4Ps (Product, Price, Place, Promotion) marketing mix to guide the product launch. The report also includes a budget plan with a timeline and Gantt chart, concluding with an overview of the marketing plan and its projected outcomes.

Running head: INTERNATIONAL MARKETING
INTERNATIONAL MARKETING
Name of the Student
Name of the University
Author Note

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Executive summary:
In this marketing pan a product has been identified to introduce in UK market by a retailer
company named Woolworths. Being a Australian retailer chain this company is going to
implement their marketing plan for lamington which can be defined as a cake. The market
analysis has been done with realistic and real time market research and operational data
including PEST, SWOT and competitive analysis. After that the marketing plan has been made
by incorporating STP and 4P marketing mix strategy. The budget plan has been also included
with a proper timeline and Gantt chart. A conclusion has been given to summarise the overall
marketing plan of the company with estimated outcomes.

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Introduction
Woolworths organization is a highly popular supermarket store chain owned by
Woolworths Limited. The company along with another popular supermarket chain named Coles,
dominates approximately 80 percent of the retail market in Australia (Murphy 2012). Being a
retail company, Woolworth chiefly sells groceries that include packaged foods, fruits and
vegetables. However, various households and stationary products are sold by the mentioned
company. When it comes to the confectionary industry in Australia, lamingtons can be
considered as one of the most popular products. A lamington can be defined as a cake which is
made from butter and the outer layer of the cake is coated with chocolate. The mentioned food
product is highly popular in Australia and according to the statistics of Woolworths, Lamington
is one of the most selling product in Australia. Being an International company, Woolworth has
expanded its market over United State, Switzerland, China and other developed country. In the
year 2009, Woolworths had established an online retail website in UK which was owned by the
Shop direct Group. However, in 2015, the online store got replaced by Very, an existing brand of
shop Direct Company.
Aim and Objectives
As mentioned earlier, the Woolworths Company does not have any online or offline retail
outlets in UK. Considering the fact that the demands for confectionaries are pretty high in UK,
the aim of the Woolworths Company is to launch lamingtons as a completely new confectionary
product in the UK confectionary industry. Lamington, which is a traditional sponge cake
exclusively manufactured in Australia is not found in UK. According to the management of
Woolswiorth, the mentioned product will gain populary in the UK confectionary market which in

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turn will provide the company a way to penetrate the retail market of UK. Therefore, it can be
clearly understood that the objectives of the Woolworths Company includes:
1. Gaining competitive advantage by launching a brand new confectionary product in the
UK market.
2. Gaining consumer loyalty and brand value in UK.
3. Penetrating the retail market of UK
Marketing Research:
PESTLE Analysis of the confectionary market of UK
In order to develop an effective marketing plan, it is highly crucial for an organization to
develop a detailed understanding of the external as well as internal environment of the company.
This helps the company to develop marketing strategies by understanding the specific needs of
the potential consumers. In order to access the external environment of Woolworths in UK,
PESTLE and Porter’s five forces analysis has been performed.
Political Factor
The political environment of UK is currently unstable due to the change of governing
party from labors to conservatives. This unstable condition of the nation may impose negative
impact on the confectionary industry. Due to strict regulations associated with export and import
of products in food industry, Woolworths may face difficulties in launching its product in the Uk
market. Moreover, due to increment in VAT from 17.5 percent to 20 percent, the intention of
consumers to buy confectionary products has decreased to a great extent (Chen and Bell 2012).
Economic Factor

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Being a developed country, the financial condition of the consumers of UK food industry
is more stable compared to that of the developed or underdeveloped country. However the
economical condition of the population in UK has deteriorated due to the recent recession. As a
result of this, consumers are found to prefer dining at home rather than dining at expensive
restaurant or food chain outlets. In spite of the fact that this situation has imposed negative
impact on the food industry, retail companies like Woolworths will get benefited from it. This is
because, consumers will be more inclined to explore new food products like lamingtons sold in
the retail stores.
Social Factor
The population of UK is an aging population. According to a survey conducted by the
government of UK, the average age as well as the percentage of the retired individuals are rising.
This trend has imposed a negative impact in the food and confectionary industry of UK. Due to
several healthcare issues like Diabetes, elderly citizens are not able to intake a high amount of
confectionary products. Moreover, due to excessive obesity related diseases, the government of
UK is promoting healthy lifestyle. Consumers are found to avoid high calorie food items in order
to avoid obesity. This in turn is imposing a negative impact in the confectionary industry of UK
(Kotabe and Helsen 2014).
Technological Factor
Being a highly developed country, United Kingdom is technologically advanced. Supermarkets
in UK are able to promote their products through online marketing tools like social media
platforms in order to enhance their consumer loyalty. Supermarkets in UK sell their product

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through online marketing. Thus the technological advancement of the nation will impose positive
impact on the new product launched by the Woolworths organization
Legal Factor
As discussed earlier, UK has highly strict rules and regulations when it comes to import and
export. Besides that, in order to establish business in the confectionary market of UK,
Woolworths has to abide by the Health and Safety legal framework, particularly when it comes
to the preparation of food. According to the Food Standard agency of UK, the employees who
handle food products in retail outlets, restaurants and fast food chains must go through food-
hygiene Training (Cravens and Piercy 2013).
Environmental Factor
In order to eradicate environmental pollution, the government of UK has imposed several
regulations as well as green initiatives. For Instance, usage of plastic packaging is banned in
several parts of UK. Moreover, restaurants, fastfood chain and retail companies in UK abide by
the Corporate and Social Responsibility policies designed by them.
SWOT Analysis
Strengths
 High Brand value since Woolworths is
a globally recognized company.
 The high affinity of the Consumers of
UK towards the confectionary industry.
 The popularity of lamingtons across the
Weaknesses
 Lamington, being a completely new
product in the UK, there prevails a risk
that consumers may not accept the
product.

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world (Jain and Haley 2012).
Opportunities
Woolworths can expand its confectionary products
in UK if the new launched product get popular in
the mentioned market.
Threats
 The increasing health concern of the
mentioned nation can be considered as
a risk.
 The reaction of the consumers to the
newly launched cake can be considered
as another risk for Woolsworth.
Porters 5 forces Analysis of the confectionary market of UK
Rivalry among the competitors
The competition among the retail companies in UK is high. Some of the major
competitors of the Retail industry of UK include Tesco, Sainsbury, Asda and Morrison. Thus it
can be understood that the retail market of UK is highly saturated. Almost all the mentioned
company sells confectionary products. However, considering the fact that lamington is a totally
new food product in the UK market, Woolworths will gain competitive advantage (Plan 2016).
Threat from New Entrances
The threat from new entrances is low when it comes to retail industry of Australia. As discussed
earlier, the government of Australia has strict rules on import and export of products. The market
barrier of the retail and confectionary industry in UK is high. Along with that, for creating a new
supermarket chain, a high amount of capital is required.

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Power of the buyers
The power of buyers in the UK market is high. Due to the availability of a huge number of retail
organizations, it is easy for the consumers to shift from one retail store to another. Moreover, the
switching cost is low. However, considering the fact Woolworths is launching a new product in
the market, the power of consumers for lamington will be comparatively low (Kotler and Keller
2016).
Power of the Suppliers
The bargaining power of the suppliers is high in the retail market of UK. The suppliers of
the mentioned industry include food manufactures, farmers, food processors and agricultural co-
operatives. Considering the fact that majority of the suppliers of UK deliver branded food
products, the power of the suppliers are high. However, since the company will manufacture the
lamingtons by itself, the power of the suppliers for the company will be comparatively low.
Threat from the Substitutes
When it comes to retail industry in UK, the threat from the substitute is low. Major substitute of
the retail industry in UK are restaurants, electrical equipment stores and others. The treat of the
substitute is even lower when it comes to lamingtons (Armstrong et al. 2015). Since Woolworths
will be the first company to launch lamingtons in UK, the treat of substitute for the mentioned
company will be lower.
Marketing strategy:
STP:

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This strategy will help to identify the most profitable consumer segment where the selling
operation can generate the maximum ROI or Return On Investment for a particular product
(Murphy 2012). The STP strategy of Woolworth will include the segmentation of the consumers
within UK market, targeting the proper consumers of a particular segment or a set group of
segments, and positioning the market in a efficient way that can help to gain the attraction of the
targeted consumers.
Segmentation:
UK is a country of divers population where people from all part of the globe come and utilise the
market. Within several industries, retailer industry should segment the consumers into several
feasible groups. Being a retailer company Woolworth should divide the consumers by their
financial and demographic differences. The financial segmentation includes 4 basic groups
namely, consumers of low financial background, low to medium financial background, medium
to high financial background and high financial background. This segmentation is done
considering the annual spending of the consumers. Apart from the consumers are also segmented
by demographic division involving age and gender. Age divisions includes three basics segments
15 to 25; 25 to 40; 40 to 60 and above 60.
Targeting:
Targeting a particular group of consumer will help to make proper strategic plan for introducing
the selected product in most attractive way. In this case, the selected product is a specific type of
cake that can attract all consumers of all segments (Kotabe and Helsen 2014). However,
Woolworth can build a strategic supply chain that regulated by the selection of the flavour.
Therefore for targeting strategy Woolworth focusing mainly on the age group of 15 to 40. At the

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same time, the financial target group for this product is the consumer group of medium to high
financial background.
Positioning:
In this case, the positioning strategy of the Woolworth is pre-determined. However, before
implement the strategic marketing plan the company has to ensure the efficiency of local supply
chain, distribution network, warehouse and other logistical components of the business (Chen
and Bell 2012). Apart from that the cake will be produced by the retailer company that requires
additional time and recourse management plan while having an affordable budget.
4P marketing mix
Product
Considering the fact that lamington cakes are completely new products to the consumer of UK,
Woolworths must offer its products in a familiar but unique packaging to attract the consumers.
The packaging of the product will be made of paper in order to demonstrate that the company is
environment friendly. The logo of the company should be on the top of the packaging (Piercy
and Morgan 2012). Like any other cakes sold in the market of UK, the mentioned cake will be
available in five flavors that include strawberry, chocolate, vanilla, rose and cheese flavor.
Place
Apart from selling the cake through their own retail stores, the company can introduce the cake
in restaurants and get merged with fast food centers in UK. Most restaurants in UK allow
customers to drive through service with facilities such as indoor and outdoor seating and counter
service (Pope, Isely and Asamoa‐Tutu 2012).

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Price
The price of the lamington cake should be kept between higher to moderate price range. Being a
completely new company, the company should incorporate discounts and offers to attract the
consumers as well as to enhance the consumer base.
Promotion
The company should promote its product through both online as well as offline marketing.
Considering the fact that the country is highly advanced in technology, Woolworths can promote
its product through popular social media platforms. This will not only help the company to
directly communicate with the consumers but will also help the company to advertise its
products (Hair et al. 2012). By directly communicating with the consumers, the company will be
able to understand their specific requirements which in turn, will help them to enhance the
quality of their products. When it comes to offline promotion, the company can perform celebrity
endorsement.
Budget: 200
Major activity Minor activities Estimation(£) Total(£)
Market research Situation analysis 1500 x 4 6000
Competitive analysis 1000 x5 5000
Real time market environment 1200 x 5 6000
Strategic plan Communication with stakeholder 200 x 30 6000
Conducting meeting 400 x 15 6000
Developing and making changes 1500 x 6 9000
Market Promotion Online Promotion 100 x 30 3000
TV Advertisement 300 x 10 3000
Radio Advertisement 200 x 10 2000

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Evaluation Demo product launching 1400 x 5 7000
Monitoring and making changes 400 x 5 2000
Total 55000
Timeline:
Major activity Minor activities Start Date Duration (days)
Market research Situation analysis 2/6/18 15
Competitive analysis 12/6/18 10
Real time market environment 18/6/18 10
Strategic plan Communication with stakeholder 22/6/18 15
Conducting meeting 5/7/18 10
Developing and making changes 10/7/18 10
Market
Promotion
Online Proportioning 20/7/18 20
TV Advertisement 22/7/18 15
Radio Advertisement 25/7/18 15
Evaluation Demo product launching 1/8/18 5
Monitoring and making changes 10/8/18 10

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Monitoring and making changes
Demo product launching
Radio Advertisement
TV Advertisement
Online Proportioning
Developing and making changes
Conducting meeting
Communication with stakeholder
Real time market environment
Competitive analysis
Situation analysis
30-05-18 14-06-18 29-06-18 14-07-18 29-07-18 13-08-18 28-08-18
Series 1
Figure 1: Gantt chart
Conclusion:
From the above analysis it can be said that, Being a retail company, Woolworth chiefly sells
groceries that include packaged foods, fruits and vegetables. However, various households and
stationary products are sold by the mentioned company. The Lamington has been defined as a
cake which is made from butter and the outer layer of the cake is coated with chocolate. At the
same time, the mentioned product will gain popularly in the UK confectionary market which in
turn will provide the company a way to penetrate the retail market of UK. It has been identified
that due to strict regulations associated with export and import of products in food industry,
Woolworths may face difficulties in launching its product in the Uk market. On the other hand,

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Consumers are found to avoid high calorie food items in order to avoid obesity. Additionally, the
technological advancement of the nation will impose positive impact on the new product
launched by the Woolworths organization. At the same time, considering the fact that lamington
is a totally new food product in the UK market, Woolworths will gain competitive advantage.
Before implement the strategic marketing plan the company has to ensure the efficiency of local
supply chain, distribution network, warehouse and other logistical components of the business.

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Reference List
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Cravens, D.W. and Piercy, N., 2013. Strategic marketing (Vol. 8). Boston, MA: McGraw-Hill
Irwin.
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McGraw-Hill/Higher Education.
Jain, S.C. and Haley, G.T., 2012. Marketing planning and strategy. South-Western Publishing
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Kotabe, M. and Helsen, K., 2014. Global marketing management.
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Intelligence & Planning, 8(1), pp.4-6.
Plan, E.M., 2016. Marketing & Management.