Expanding Coles Supermarket In The Japanese Market

Suitable Target Market for Coles Supermarket in Japan

Examining the situation in international market, it has been identified that Coles Supermarket has various benefits in the Japanese market to expand its business. It cannot be denied that Japan is being considered as largest market in the global industry. In case of gaining the competitive advantages from the market, the growing economy of Japan can bring various opportunities. It cannot be denied that in case of gaining the competitive advantage, the Japanese market is suitable for Coles supermarket. Analyzing the impact of business elements in the global market, it has been assumed that the Japanese food industry can easily accept the organization. Target market plays an important role in business develop in the Japanese market Coles supermarket has targeted the premium and middle class customers in Japanese market. Depending on the customers’ preference the target market has been selected. Mainly the children and young people have been targeted by the company in Japanese market. It has been identified that in case of entering in the Japanese market, the company has decided to use, exporting, licensing and direct investment mode. It has been identified that the company has decided to use the traditional tools for entering in the foreign market. Using the licensing mode, Coles can be able to use different property and resources in the Japanese market.

In the words of Pérez, Pieri and Rodriguez (2015), the term product Life cycle is being considered as an important concept of marketing. There are five stage in the PLC. Product development, introduction, growth, maturity and decline. In case of Japanese market, with the retail products Coles supermarket can be placed in the introduction stage as it is new in the market and has not created any product development process.

Analyzing the product quality of Coles super market, it has been identified that it has established its strong customer base for providing standard quality of products. In the new market, it will be the aim of the company to provide standard quality of product so that it will be able to develop strong impression on customers mind.

It cannot be denied that branding plays an influential role in case of increasing the value of the company in market (Todor, 2014). It is also very important for encouraging the purchasing decision of the customers. Branding has higher level of contribution in the market, therefore, in this case the both the online ad off line promotional activities can be beneficial for branding. As the organization has already expanded its business in international market, therefore, it will be easier for the people to accept the products of the company with the attractive branding.

Product Quality of Coles Supermarket in Japan

Labelling and Packaging are another important element in sales distribution as it provides the information regarding brand name, price, quantity and grade of the product (Baumeister, Scherer & Wangenheim, 2014). In the Japanese market, the Prime labels can be used by the company. In this types of labelling the business practices the products are being labelled at the center so that it can be easily noticed. In case of packaging user defined packaging style will be followed by Coles supermarket in Japanese market.

In the demographic segment, the company has chosen age, gender and income level. In case of entering in the Japanese market, Coles supermarket will target the children and young customers who have interest in the branded products. Depending on the psychographic segmentation lifestyle, aspects and opinion of people have been highlighted by the company. Depending on the behavioral segment, the brand performance, desire and prior purchases have been selected by the company. Urban area will be chosen from the geographic segmentation so that large number of target customers can be attracted.

The Coles Supermarket needs to follow the market development strategy in the Japan market. With this initiative, it will be easier for the company is to gain the competitive advantage from the retail market. It cannot be denied that the company has already established its strong image in the international retail industry. In this situation, if the company will focus on the cost leadership strategy, it will be beneficial for developing its sustainable position in the Japanese market.

On the other hand networking and connectivity in Japan is well structured, which can influence the supply chain process (Christopher, 2016). It will help the Coles supermarket to maintain the uninterrupted raw material supply chain. The distribution intensity indicates the availability of products selected by the organization in a market. Depending on the market size, target market and capacity of production Coles supermarket will distribute its products. As the target market is large and due to this reason the company has decided to involve large number of retailers for managing the product distribution process. With this initiative the meeting will be arranged with the local retailers who will take franchise of Coles super market.

Integrated marketing communication is very effective in case of dealing with the different forms of communication (Sagala et al., 2014). It is being considered as an effective promotional tool for Coles supermarket.in case of Japanese supermarket, both the direct and indirect market strategy needed to be followed by the company. In case of maximizing the sales in the foreign market, the company needs to focus on introducing different campaigns that can help to grab large numbers of customers attention. Using the Facebook and twitter accounts the products can be introduced in the market. It will be beneficial in terms of developing the effective relationship between the customers and employees. On the other hand, for developing the communication with customers, a 24hrs customer service will be introduced in by the company. In the customer service center Coles supermarket will appoint the Japanese employees so that it will be easier to solve the quarries of the customers. In case of developing the public relation, different promotional schemes can be introduced by the company through different festivals. With this initiative, it will be easier for the company to get connected with the customers. In the direct marketing, different campaigns can be introduced with the celebrity endorsement. It cannot be denied that celebrity endorsement is very effective to garbing the attention of large number of customers. Through the traditional channels in Japan, the TV promotions can be done. This can help to increase its popularity in the market. Analyzing the market segmentation policy of Coles super market, it can be suggested that it can sponsor different sports events for attracting the large number of customers.

Importance of Branding in Increasing the Value of the Company

People are essential element in the marketing mix as in the current business scenario, the products are being sold through different retail outlets.  People are important in case of handling the entire process. It cannot be denied that in the service marketing, people are important for the product development process (Le Roy & Czakon, 2016). By recruiting the efficient people in different positions of the company, Coles will be able to gain the competitive advantage in the market. Therefore, it is clear that the people who are associated with an organization are essential for influencing the organizational performance. In case of Coles, it needs to focus on improving its efficiency for developing sustainable position in the market. With this initiative it will be easier for the organization to deal with the foreign market. Effective leadership strategies needs to be developed in the workplace. In case of Japanese market the transformational leadership strategy will be followed by the company. As the Japanese market tis totally new for the Coles supermarket, therefore, the company needs to focus on understanding the market situation. Research and development is needed for understanding the needs and demands of the customers. In this situation, recruiting large number of Japanese employees can help to gain the trust of the local people. on the other hand, contributing in the Japanese employment rate, the company can be easily highlighted in the Japanese retail industry. In case of maintaining the employment standard, the proper healthy and safety regulations need to be followed by the company. It will be beneficial in terms of avoiding the employee movement in the foreign market. On the other hand, it is true that proper training and development process needs to be followed. In this case the experimental learning theory can be applied for increasing the efficiency of the employees.

The term economic evaluation is being considered as the systematic process that helps to valuate and measure the output and input of the two alternative activities. It is also very important in case of understanding the competitive advantage from the market. It cannot be denied that depending on the economic evaluation process has higher level of impact on the innovation adaption cycle. In case of adaption process of Coles supermarket by the Japanese customers, in the below diagram the 5 stages have been shown.

Figure: Adaption Cycle

(Source: Kolarik et al., 2016)

In the above diagram, file categories such as innovators, early adaptors, early majority, late majority ad laggards have been shown. Innovators are those who can easily adopts the new ideas. They have the nature of exploring thinks on their own risk. Early adaptors have similar quality of the innovators, they are conscious regarding their reputation and due to this reason they appreciate the innovation for gaining popularity. Early and late majority are similar in case of gaining the practical benefits. In case of early majority, they easily accepts the ideas, however the late majority people always search for someone’s support to take the risk.  Laggards very slowly adopts the new idea. After accepting by the society, the Laggards accept the innovation. Therefore, it can be sad that these 5 types of adopters can impact on the sales revenue of Coles supermarket in Japanese market.

Packaging and Labeling Strategies for Coles Supermarket in Japan

In the year 2016, the total population in japan was 127 million. The Coles supermarket has decided to target the innovators and early adaptors within coming 2 years. On the other hand, the company also aims to grab the attention of early majority within coming 4 years. The company has aimed to increase its market share near about 10% within coming 5 years.

Total population of Japan= 126.75 Million

The target market of the business will be children and young generation belonging to upper class in society in the first year and the target segment will expand gradually in the second and third year`.

Total market in the first two years is deemed to be 126.75 Million (3.5% + 14.5%) = 18%

So the target market that will be focused on by the business for the next three years will be = 126.75 Million * 18% = 22.8 Million

The business has estimated to attain 15% market share over the three years span focusing on the target consumer population of 22.8 Million.

In such scenario, the anticipated revenue of the business is = 22.8 Million * price ($ 15) = $34.2 Million. This is the anticipated revenue the business will earn after three years span per year.

In the first year (Year 1) the business anticipates to attain market share of 5% for attaining revenue of $ 25.8 Million.

In the second year (Year 2) the business anticipates to attain market share of 10% for attaining revenue of $ 30.1 Million.

In the third year (Year 3) the business estimates to attain market share of 15% for attaining revenue of $34.2 Million.

(Source: Created By author)

In the market research it has been identified that both the macro and micro environment of Coles Supermarket is in favorable condition for the company. With increasing economic and technological opportunities, it will be beneficial for the company to develop its business.  In case of Japanese market, the Raw materials will be collected from the local suppliers. On the other hand, for developing effective relationship with the local retailers, the company aims to develop different meetings. The company will recruit the local employees and will provide training for increasing their efficiency. In case of gaining the large numbers of customers’ attention different promotional schemes will be introduced by the company.

(Source: Created by author)

In the Japanese market, Coles super market will promote its products through social media such as Facebook and twitter. On the other hand, through the traditional channels the product will be promoted in the market. For the promotional cost, the company has decided to invest 20000 dollar for first year and second year it will reach 25000 dollar. In case of understanding the growth strategy of the company, the annual report from the previous years will be analyzed.

Factors Affecting Coles Supermarket’s Business in Japan

To: Director of Coles Supermarket

From:[email protected]

Date: 12/12/ 2018

Subject:

Analyzing the business opportunities of the company in japan market, it can be assumed that in the increasing economic opportunities in the market, it will be easier for the company to achieve its business objectives. In the environmental analysis, it has been identified that technological innovation in this country can help in terms of increasing its market share. In the market research, both the secondary and primary data have been collected so that the needs and demands of the customers can be analyzed. After the research plan, with in three months meetings have been arranged with the local suppliers to get the knowledge regarding sourcing of raw materials. Through the agents advertisements will be done in social media and local channels. After completion of budgeting the products will be launched through the celebrity endorsements.

After examining the entire marketing plan of the company, it can be said that as the company has decided to invest big amount in the initial stage, therefore, it may be quite risky for the organization. As it is new in the market, therefore, if the market plan will be discussed with the local renowned authority, it will be beneficial for the company. On the other hand, it has targeted the premium customers, where there are also other organizations those have targeted the same segment, this can create the challenges for the company. In this case it can be suggested that the company can increase its budgeting for the promotional activities so that large number of customers can get attracted. Merge and Acquisition can be effective strategy for this organization if any case the business will face the failure. By merging the similar company, it will be easier to manage financial loss will be faced.

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