Discuss about the Global Marketing for Organization Development & Change.
Currently, a large number of organizations have is to expand their operations from local to international, in order to increase their market area, reduce competition in the local market and on their gains significantly. International marketing is where a company decides to sell its products further in overseas countries and hence it acquires high-profit. The decision to move international is a critical aspect and supposed done efficiently by the shareholders of the company to ensure that they will be in a position to act appropriately in those overseas countries (Czinkota & Ronkainen 2013). An organization that has recently made the decision to expand its services and operations from local to international in the Australian Retail organization, Woolworths. Among the products that the organization is aiming to offer in international markets is the soft drink brand known as the Coca-Cola zero. The organization considers the Chinese market as a good international market to for this product. This paper assesses the means through which the organization plan on penetrating the Chinese market, in order to make sales of the soft drink.
Brief overview of the company/product
Woolworths Limited is the second largest Australian retail organization that deals with a large number of activities. The recent success that the organization has obtained through its retail activities is mainly because of its effectiveness strategies which have helped it increase its market share in Australia and New Zealand where it has already expanded to. Among the many products that the organization offers is the recent Coca-Cola Company product known as Coke Zero. This is a soft drink product which is preferred by a large number of people concerned with a number of calories they consume in a soft drink. As its name suggests, the product is manufactured to contain zero calories thus making it suitable for all individuals that are concerned with the weight they may gain through their drink consumption. Since, currently, a large number of people are increasing awareness of health conditions like obesity, the product has become a high selling commodity in the markets where the organization already operates in (Pella, 2014).
Why we want the product in that particular country
The organization has a large number of regions or country to choose from when making the decision on the most appropriate market to expand its retail activities. After a thorough assessment of the countries and determining the most appropriate one to expand its services in, China is the country that the organization prefers to expand its services in. To begin with, China has a significantly large population of people, an aspect that increases the potential buyers of the product in the market (Eva, Hindle, Paul, Rollaston, & Tudor, 2014). The country also has a large number of people that are significantly willing to ensure that people remain in complete control and capability of maintaining effectiveness in all the operations that they involve in. The Chinese market is also appropriate because, to begin with, the country has one of the most rapidly rising economies in the world. Is implies that more people in China have managed to increase their gains and capabilities, thus giving them the ability to purchase the product (Fatehi, 2008).
Business Environment (PESTLE)
The PESTLE tool can help provide the environment within which the Woolworths Limited company operates. Politically (P), to begin with, the organization has managed to grasp acceptance in the country, and thus it has increased its political strengths. Being among the best retailers and the second largest, it has less political hindrances that hinder its progress. Economically (E) the organization is significantly affected by the economic condition of the countries where it operates. In Australia, the recent recession has resulted in a large number of people being jobless and earning less, thus reducing their purchasing capability (Adamski, 2016). This aspect significantly reduces the ability of the organization to gain profit. Social Factors (S), address the social issues of the society within which the organization operates. The society within which this organization operates is in significant need of lowly priced but quality products. The organization has thus attained the need to increase its effectiveness by improving the quality of services that it offers and offering fair pricing of its products (Cummings, & Worley, 2009).
Technologically (T), the organization has embraced the use of technology, in order to increase its effectiveness and manage to improve gains. For the case of the Legal Factors (L), the organization has a dedicated legal group whose main purpose is to ensure that all individuals remain in complete control of all the operations and activities that take place. The organization also ensure that it conforms to all legal requirements that are made by the government under which it operates. Environmental factors (E), act as the guide on how the organization will operate in relation to the environment within which it operates. The organization has the main aim of ensuring that it completely eliminates all forms of practices that are not environmental friendly. Environmental friendly activities, therefore help in ensuring that the society is in favor of the activities that the organization involves in (Clegg, & Bailey, 2007).
Market Analysis (Size, Growth, Market characteristics, The Behaviour)
As explained earlier, the chines market is the target market for Woolworths Limited organization in selling the Coke Zero product. To begin with, this market is significantly large. Apart from China being a country with one of the highest developing economies, it is also a home for 1.379 billion individuals, according to the consensus of the year 2016. This is a significantly large number of population, especially when it is compared to the Australian population, which is only 24.13 million. With this regard, it is clear that there are even more potential buyers in China, compared to the buyers of this product in Australia. The market size of the country is simply one of the largest in the world (Australia, 2015).
Over the years, the chines economy and population has been growing rapidly. China has on many occasions been referred to as one of the most rapidly growing economies in the world. This implies that the Chinese market is over time increasing to become much better and favorable to organizations that decide to seize the opportunity and penetrate their products in it. One characteristic of the Chinese market is that it is significantly large, mostly due to a large number of Chinese individuals who are willing and capable of making retail product purchases. The other characteristic of this market is that it has a large number of product suppliers, who also aim to make a profit from the market (Fernandes, Freund, & Pierola, 2016). The third characteristic of the market is the fact that it is also a target to a large number of organizations who seek to offer their products in it. The market behavior of consideration is the means through which individuals can manage to remain in complete capability and retain effectiveness in the activities that they involve in (Nas, 2016).
Competition (within the market, Market Share, Growth, Differentiate)
For the Coke Zero product within the Chinese market, competition is of high level. A large number of retail organizations has managed to expand their services to the region. Being a significantly large market with huge potential, the Chinese market has become a target of the world’s largest organizations. Among others, the companies that have managed to successfully expand their operations to this market include Walmart, which is currently the world’s largest retailer, Coca Cola, which is the company that produces the Coke Zero product and the local Chinese retail organization which are many and competitive. With this regard, the market share for the organization in this market is small. This is however because the organization has not fully penetrated the market with the product. Although these other Over time are large and capable, the organizational success strategies have the capability of helping in increasing its market share within the market. Another major aspect of consideration is the fact that growth can be fully associated with the Chinese market. Overtime, the market has managed to establish constant growth, and thus with this growth, the organization has the opportunity to increase its services effectiveness and market share steadily. Product differentiation is the other important aspect of consideration, the organization has the capability of differentiating the Coke Zero product from the brand that is offered by other organizations, in order to reduce aspects where people do not associate this product with the organization. This aspect can easily be achieved, by an agreement between the organization and its product supplier, which is the Coca-Cola Company (Tan, & Sousa, 2013).
Organizational Asset and skill (Why the organization does well)
For a long time, Woolworths Limited organization has managed to increase its effectiveness, both within the Australian Market and New Zealand where the organization has successfully expanded its products. The first main aspect that has led the organization to obtain this success is the large number of improvement strategies that the organizational management implement in its operations. The organization has managed to establish effectiveness and ensure that people remain in complete favor of its operations, without having to face the problems of poor services and ineffectiveness of how it operates. The other reason why the organization remains among the best is the fact that it has managed to establish a highly dedicated team of employees who operate with high levels of effectiveness in the activities that they involve in. this team of highly effective individuals helps the organization to remain effective in all the activities that it involves in (Papadopoulos, & Heslop, 2014).
In order to understand the position within which the Woolworths Limited organization stands, a SWOT analysis can offer effective aid. For the case of the organizational strengths, to begin with, the organization is considered one of the oldest retails in Australia. This has led to a large number of people being well conversant with how the organization operates, its benefits, and what they should prefer it over its competitors. The other strength is the fact that the organization has managed to establish a large number of stores and supermarkets, which has led to many people identifying with it. One of its major weakness on other hand is the fact that the organization has a significantly low presence internationally. This is because it has not managed to expand its operations to many other international markets. The other weakness is the fact that the organization only recently began to utilize online retail services and thus it gave the opportunity to its competitors (S&P 2017).
One opportunity of this organization is to utilize many promotions, in order to attract more customers. This will help the organization increase the number of individuals in the market who prefers its products to those of its competitors. The other opportunity is for the organization to carry out huge retail marketing of its products, in order to help a large number of people understand the products that it offers and the means through which those products can benefit them. A threat associated with the organization, on the other hand, is the slow growth of online retail in Australia, an aspect that reduces the gains of the organization through this channel. Another threat is the aggressive expansion of its local competitors like Aldi organization, an aspect that is significantly reducing its profitability (Bull, Jobstvogt, Böhnke-Henrichs, Mascarenhas, Sitas, Baulcomb, & Carter-Silk, 2016).
Woolworths Limited organization has for a long time been operating in Australia, until recently when it expanded its operations to New Zealand. The expansion was highly beneficial to the organization, mainly because through it, managed to increase its market share and also increased its gains significantly within a very short period of time. With this understanding, the expansion to the Chinese market is an aspect that is likely to be highly beneficial to the organization. Through this expansion, the organization will manage to get into the Chinese market by the utilization of a single product. After the expansion becomes a success, the organization can then utilize a similar strategy, to offer the rest of its products into this market. This method will help the organization to improve significantly while reducing the risk of spending too much without certainty. It is, therefore, an appropriate decision for this expansion to take place (Czinkota, & Ronkainen, 2013).
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