The purpose for this document is to describe, and provide a framework for an optimized marketing plan for IGA Australia entering into Chinese market in the period May 2010 to May 2013. The report offers a structure for developing, implementing and controlling IGA China marketing program for the international IGA brand, in order to achieve focal objectives as followed in this plan. The Competitive Analysis points out the fact that the Retail Industry is dominated by 3 major competitors including Wal-Mart, Trust Mart and Carrefour in China. The SWOT Analysis included, helps develop the following Marketing Objectives: •
First year in May 2010-May 2011, aim at $100,000 sales income •
Achieve 2012 sales target (3-7% increase from 2011 sales results) •
Increase market share by 5%
Increase brand preference by 3%
6000 customers to visit Community IGA per month in each location •
Reach 60 customers traffic in IGA X-press per day; achieve 5% increase in sales every season •
Establish a loyalty program and acquire 3,000 new members per month in each city The plan also states that the target market for aged 25-40 elite workforce who professionally employed and pursuit high quality lifestyle, living in economic booming cities in China. The plan also lists the marketing objectives which help achieve effective outcomes. These result in developing communication activities which include Advertising, Sales promotion, Digital marketing, Events and Public relations. Finally, it is mentioned that through Internal reporting, Survey, Website Visitor Trackers, Market Research, and Retail Measurement Reports, the Monitoring and Evaluation can be conducted.
IGA organization is owned by Metcash in Australia, a South African-based retailer and wholesaler. The company supplies groceries, promotional materials and other things to a large number of locally owned Australian supermarkets, and a few smaller chains. IGA has three distribution channels: IGA Supa, IGA, and IGA X-press, which remained strong in the face of growing chain competition. IGA has mature and strong distributions to invest into a new country. 2. Segmentation
IGA operates as a retailer successfully in USA, Canada, and Australia. Chinese market is considered as a new opportunity to expand its realm in Asia countries. Unique culture and different customer behaviors in China will be emphasized in differentiating target market. Different from home countries’ strategies, some new attempts will apply in Chinese market. 2.1 Competitive analysis
Supermarket Industry in China is dominated a few players with concentrated market share. Source: Euromonitor Report- Supermarkets – China – June - 2009 As the chart illustrated, there are many strong foreign retailers have tapped into Chinese market, such as Wal-Mart, Trust Mart, Carrefour, Metro, and Tesco. In particular, Wal-Mart occupied 47.6% of the market in 2009, dominating the retail industry by strong suppliers and its global brand awareness. 11.5% of the total market was made up by Trust Mart in 2009. Carrefour represented 9.9% in 2009. Both Metro and Tesco accounted for 7.1% of the Chinese market. 16.7% of the market share was constituted by other grocery stores. Discount retailers (e.g. Trust Mart) offer consumers a narrow merchandise selection in a bid to contain costs and present competitive pricing. Larger operators (Wal-Mart and Carrefour) are the dominance in the industry as they stock an extensive range of merchandise. These supermarkets have successfully competed on prices, but the disadvantage is the location for these giant shopping malls normally out of the town. (IBIS, 2010) 2.2 Buyers Behavior
Factors effecting purchase behavior include the global trend toward health food and the economic downturn. Consumers are increasingly choosing healthier or low sugar products. (Euromonitor, 2008) Additionally, the emergence of the ethical consumer signifies a shift toward a...
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