International Marketing Management: Woolworths' China Entry Strategy

This report provides an analysis of Woolworths' international marketing strategy, specifically focusing on its potential entry into the Chinese market. The report begins with a PEST (Political, Economic, Social, Technological) analysis to evaluate the external environment. It then recommends e-commerce strategies, technological improvements, and localization of products. Key recommendations include considering cultural differences between Chinese and Australian employees, providing training, conducting thorough market research, utilizing social media for customer feedback, focusing on herbal products, and seeking local partners for raw materials. The report emphasizes the importance of the marketing mix (Product, Price, Promotion, Place) and the use of foreign direct investment for market entry. The report also highlights the need for competitive advantage through innovation and environment-friendly products. The report concludes with a discussion of e-commerce strategies, logistics, and the importance of engaging with Chinese consumers. The report uses the references to support the analysis.

INTERNATIONAL MARKETING
MANAGEMENT

PEST ANALYSIS
• Political
• Economic
• Social
• Technological

Government intervention in economy
• Market expansion
• E-commerce strategy
• Logistics operations
• Engaging more people

Economic integration
• Global financial crisis
• Socio-economic condition of China
• Price skimming strategy

Strategy related reasons
• Competitive advantage
• Innovation
• Environment friendly products

Choice of entry strategy
• Foreign direct investment
• High Control Strategy

Marketing Mix
• Product
• Price
• Promotion
• Place

Recommendations
• They must use the e-commerce strategies to get a hold in the Chinese market.
• They should focus on improvement of the technological factors so they can
cater to the needs of the customer in the best ways.
• The managers should take into consideration the cultural differences between
the Chinese and Australian employees. They should give their employees
training of how to behave properly in the workplace.
• The products of Woolworths should be localized and launched in the market
after doing important market research within China.
• The feedback from the Chinese customers should be sought through the social
media platforms and their websites.
• Woolworths should focus on bringing the herbal products in the market as the
Chinese customers like that.
• Woolworths should also look for the local partners who will supply them with
the raw materials.

References
• Alfaro, L. and Johnson, M.S., 2012. Foreign direct investment and growth. In The evidence and impact of financial globalization (pp. 299-309).
• Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction. Pearson Education.
• Camisón, C. and Villar-López, A., 2014. Organizational innovation as an enabler of technological innovation capabilities and firm
performance. Journal of business research, 67(1), pp.2891-2902.
• Duncan, R. and Martínez-García, E., 2015. Forecasting local inflation with global inflation: when economic theory meets the facts.
• Frankenberger, E., Badke-Schaub, P. and Birkhofer, H. eds., 2012. Designers: the key to successful product development. Springer
Science & Business Media..
• Gordon, R., 2012. Re-thinking and re-tooling the social marketing mix. Australasian Marketing Journal (AMJ), 20(2), pp.122-126.
• Gupta, A., 2013. Environmental and pest analysis: An approach to external business environment. Merit Research Journal of Art, Social
Science and Humanities, 1(2), pp.13-17.
• Ho, J.K.K., 2014. Formulation of a systemic PEST analysis for strategic analysis. European academic research, 2(5), pp.6478-6492.
• Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
• Kogan, L., Papanikolaou, D., Seru, A. and Stoffman, N., 2017. Technological innovation, resource allocation, and growth. The
Quarterly Journal of Economics, 132(2), pp.665-712.
• Li, P. and Xie, W., 2012. A strategic framework for determining e-commerce adoption. Journal of Technology Management in
China, 7(1), pp.22-35.
• Triandis, H.C., 2018. Individualism and collectivism. Routledge.
• Turban, E., Outland, J., King, D., Lee, J.K., Liang, T.P. and Turban, D.C., 2017. Electronic Commerce 2018: A Managerial and Social
Networks Perspective. Springer.
• Woolworths.com.au (2018). {{metaController.metaData.title}}. [online] Woolworths.com.au. Available at:
https://www.woolworths.com.au/ [Accessed 18 May 2018].
•