International Marketing Report: Woolworths' UK Market Entry Plan

This report presents an international marketing strategy for Woolworths' entry into the United Kingdom market, focusing on the sale of potatoes. It begins with an executive summary outlining the objectives of the report, which include evaluating market attractiveness and selecting an appropriate entry mode. The report then provides a detailed analysis of the company and its product, including a comparison of potato prices between Australia and the UK, and examines the macro-environmental factors in the UK using a PEST analysis (Political, Economic, Social, and Technological). Further analysis includes product market analysis, competitor analysis, distribution analysis, and buyer analysis to understand consumer behavior. The report concludes by recommending a suitable market entry strategy for Woolworths to successfully establish its presence in the UK market. The analysis covers key aspects such as the company's background, its current financial standing, and the competitive landscape in the UK retail sector. The report aims to guide Woolworths in making informed decisions to expand its global reach and increase profitability.

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

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Executive Summary
This report deals with the international marketing strategy that will be adopted by the
Woolworths group so that it can enter the United Kingdom market. The product will be potato,
as it is seen that it is mostly imported from the European Union countries at a higher price. The
establishment of the company will help in buying the products at a cheaper price by the
consumers. This will help the company in expanding its reach on a global scale and increase its
profits. The company needs to evaluate the attractiveness of the market and select the best entry
mode that it can help in earning revenues. This will help the company in understanding the
consumption pattern of the consumers.

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Table of Contents
PART A...........................................................................................................................................5
Step 1...........................................................................................................................................5
Step 2...........................................................................................................................................6
Step 3...........................................................................................................................................7
Step 4...........................................................................................................................................7
Step 5...........................................................................................................................................8
PART-B...........................................................................................................................................9
Introduction......................................................................................................................................9
Company and Product Analysis.......................................................................................................9
Macro environmental analysis of UK............................................................................................12
Political......................................................................................................................................12
Economic...................................................................................................................................13
Social.........................................................................................................................................13
Technological............................................................................................................................14
Difference in the PEST framework...........................................................................................15
Product market analysis.................................................................................................................16
Competitor analysis.......................................................................................................................18
Distribution analysis......................................................................................................................19
Buyer analysis................................................................................................................................20

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Consumer analysis.........................................................................................................................20
Market selection with justification................................................................................................20
Entry strategy.................................................................................................................................21
Reference List................................................................................................................................22

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PART A
Step 1
The list of European Union countries are:
 Austria
 Belgium
 Bulgaria
 Croatia
 Republic of Cyprus
 Czech Republic
 Denmark
 Estonia
 Finland
 France
 Germany
 Greece
 Hungary
 Ireland
 Italy
 Latvia
 Lithuania
 Luxembourg
 Malta

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 Netherlands
 Poland
 Portugal
 Romania
 Slovakia
 Slovenia
 Spain
 Sweden and
 The United Kingdom
The European Union exports large number of products to the UK such as:
i) Spain exports potato at a value of 13991000 USD
ii) France exports meat at a value of 3823000 USD
iii) Netherlands exports eggs at a value of 4024000 USD
iv) Germany exports coffee at a value of 8440000 USD.
Step 2
A 2.5 kilogram Redmere Farms White potato costs £1.29
The Beef Lean Steak, which contains 5 percent fat and is packed in 500 grams pack costs £4.00
The pack of 12 eggs in Tesco supermarket costs £1.75
The 227 grams Italian blended ground coffee costs £2.29 at a Tesco supermarket.
Step 3

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On converting the values to AUD it can be seen as follows:
Potato costs 2.193 AUD
Meat will cost 6.8 AUD
Eggs will cost 2.975 AUD
Coffee will cost 3.893 AUD
Step 4
Comparing with Australia
The price of potato is AUD 4.90 for a pack of 1 kilogram
The price of meat is AUD 6.50 for 500 grams pack
The price of eggs is AUD 6.00 for a pack of 12
The price of coffee is AUD 4.00 for 100 grams.

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Step 5
(Source: www.afgc.org.au/wp-content/uploads/AFGC_State-of-the-Industry-2016, 2017)
(Source: Abs.gov.au, 2017)

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PART-B
Introduction
The purpose of this report will be to analyze the strategies that have been taken up by
Woolworths so that they can enter the United Kingdom market. The company will adopt various
strategies that will help them in successfully entering the market, which will help them in
expanding their business and earn better revenues (Schultz, Patti and Kitchen 2013).
The scope of the report will be that it will help the company in establishing the company
in a better manner within the country so that they can attract the customers in purchasing the
products from their stores. The structure of the report will be that the analysis of the product that
the company will be offering to the customers of the country (Belch et al. 2014). The
attractiveness of the market that is present in the UK will be evaluated according to the product
with the help of macro analysis of the environment. The environmental analysis will help in
providing the differences and the similarities that are present in the new country and the parent
country of the company. The competitors that are present in the UK market will be analyzed so
that it can provide a better opportunity for the establishment of Woolworths in the market.
Company and Product Analysis
The Woolworths Company was established in the year 1924 at the Imperial Arcade in
Sydney by Percy Christmas. The company was successful in selling its products and was able to
open its second chain of stores by the year 1927 in Brisbane. The company also opened its first
overseas chain in New Zealand in the year 1929 and by 1930 the company was able to establish
itself in different locations in Australia (Akbar and Ahsan 2014). By 1959, the company was able

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to establish its 300th store in New South Wales, which showed the rapid development of the
company on the Australian market. The products that are offered by the company are given at
low and competitive prices, which make it difficult for other brands to survive in the market. The
company provides a wide range of products of the customers to choose from, which helps the
customers to purchase according to their buying capacity (Dos Santos, Svensson and Padin
2013).
The aims of the company are to give preference to the choices of the customers in all the
brands that are being provided by the company. For achieving the aim, the company uses a team
that is diverse in nature and listens to the choices of the customers, which helps them in
generating better sales for the food products (Methner, Hamann and Nilsson 2015).
For the past 3 years, the company has been witnessing a change in their profit ratio. The
year 2016 turned out to be a $1.2 billion dollars loss for the company, as the company was not
able to sell its food products and the petrol pumps that it has had suffered major losses. By the
mid of 2017, the company was able to earn a revenue of $1.5 billion dollars, which helped them
in covering their losses and earn an extra of $0.3 billion dollar, which will help them in
continuing their business for the coming years. The company has been facing difficulties in the
last 3 years but is able to manage themselves by pulling out different strategies that has helped
them in surviving in the market (Spillan and Ling 2015).
The company offers wide range of products for the customers, which has made it easy for
them in generating better revenues. The company is known to provide better quality of potatoes
to the Australian customers than any other supermarket. The vegetable that is provided by the
company is procured freshly from their suppliers on a regular basis, which has helped the

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Australians in consuming more of the product from their store. The consumption of potatoes in
the Australian market has increased on a rapid manner, as it contains the essential carbohydrates
that are required by the people in the country to carry on their tedious jobs (Stindt et al. 2017).
The company has targeted most of the customers, as this particular vegetable serves the
purpose of most of the households that are present in Australia. Moreover, the restaurants in the
country also have a huge demand of this product, as most of the dishes that are made by the
restaurants require the product at some point of time. The customers who are in to various kinds
of activities require the product so that it helps them in gaining the energy, which will result in
carrying out the tasks in a better manner by the customers (Schu and Morscett 2017).
The major supplier of potato in the Australian market has not been able to meet up to the
expectation of the customers, which has led to the loss for the company. Thus, Woolworths have
taken up this strategy, as it has helped them in generating better revenues for the company. The
product has been helping the company in generating better revenues, as most of the customers
are in need of it (Ragland, Brouthers and Widmier 2015).
The company has been established long back in Australia, which has helped them in
earning the goodwill from every household. The company provides the goods at a cheaper price,
which makes it difficult for the rival companies to match the prices. The company promotes its
products by using better advertisements methods so that the customers can be aware of the
products that are being sold by the company. This has helped the company in attracting more
number of customers towards it and increases the opportunity of generating revenue. The
advertisement of the company is done through electronic and print media, which includes the ads
that are being shown on the television and provided in the newspapers and magazines as well.

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This helps the company in attracting the customers who are readers of newspapers and are part of
regular viewers of television (Buckley and Ghauri 2015).
The company has enough profit and capital resources for entering in to an overseas
market such as the United Kingdom because of the accumulated profits that the company has
managed to earn in the past years. This will help the company in hiring an expert who will
provide better strategies to the company for its settlement in the United Kingdom market with its
first chain of supermarkets (Lin and Yang 2015).
Macro environmental analysis of UK
Political
The political landscape of the country is that it follows a democratic style of governance,
which helps them in maintaining consistencies with the policies that are being formulated. The
country has developed in to a global force after the end of the world wars and has been
developing ever since. The strength of the country lies in its setup of democracy and the
governance policies that are effective in nature, which is led by the prime minister of the country.
The country is successful in applying the laws so that it can control the rate of corruption and the
effectiveness of the government according to the World Bank. The country is a permanent
member of the Security Council in the United Nations and is a member of G8 and NATO.
The challenges that the country face with respect to the political scenario is the tensions
that are present in the alliance between the ruling parties and the decrease in the popularity of the
government has created a major impact on the politics of the country. The disputes between these
parties are creating major impacts on the retailing business and the overseas firms that are trying
to set up their business in the country (Bogomolova et al. 2015).