Importance of Market Research

It is essential for the company to carry out the research by the assessment of the changes occurred in the external and internal business environment as it has a significant impact on the operations of the business. In context to this, Woolworths is considered as largest retail company that operates in Australia carries out market research with the help of external research consultancies in order to access the changes occurred in the business environment as it has significant impact on the  objectives and strategies of the company (Armstrong, Adam, Denize, and Kotler, 2014). The analysis of the external business environment helps in determination of the objectives and strategies that are needed to be adopted by the company to maintain its sustainability. For example, the changes in the technological environment is considered by the company to adopt new technology that align with the strategies and the objectives and similar changes has been implemented in the processes to maintain the competitiveness and sustainability of the company (Porral, and Stanton, 2017).

The occurrence of the market research also helps in understanding the changes occurred in the taste and preference of the customers and its buying behavior which in turn allow company to make changes in the advertisement and prediction of the market trend for making optimum decisions related to the offerings of products and services made to the customers in order to attain high level of customer satisfaction (Tanner, and Raymond, 2015).  The market research can be done by the use of different methods such as engaging employees and customers by the way of gaining information in the form of views and opinions through the questionnaire and interview which helps in gaining accurate information related to the changes occurred in the market trend (Wilson, and Gilligan, 2012). This type of market research also helps Woolworths to make appropriate changes in the different aspects of the business such as lay out of the website.

The main competitors of Woolsworths include Coles group, Tesco, Amazon, Home depo and Kroger. It is essential for the Woolworths to analyses the strategies and processes adopted by its competitors to because it has a significant impact on the competitiveness of the company. The main reason behind the analysis of the competitors is that it helps the company to match its performance with the    existing players in the market (De Mooij, 2018). Besides this, it also helps in determination of the prices of the product offered by the company as it helps in attracting more number of customers to yield a acceptable profit margin by providing competitive market offer.  Apart from this, the company is also able to make appropriate changes in different activities pursued to promote its products and services in the market in a better manner (Tanner, and Raymond, 2015). The main objective of the company is to maximize its profits which has been triggered by the prices at which the products and services is offered to the customers as it helps in increasing the sale of the company. 

Impact of competition on Woolworths

It is also required by the company to analyze the product existed in the market and considered as its close substitute helps in influencing the pricing decisions of the company because there is a presence of serious threat of losing valuable customers and has a significant impact on the financial position of the company (De Mooij, 2018). The analysis of the competition also helps in the determination of the unique selling for the company which can be used by it to attract more number of customers and increases its market share (Porral, and Stanton, 2017). Carrying out of a competitive analysis helps the company to access its position in relation to the international and local competitors. This help in development of the strategies to create superior products.     

This analysis is being used by the companies to carry out the analysis of the external business environment which influence the decision relate to the introduction of a new product to enter in to new market for increasing the market share of the company. It is very essential for the company to analyze the political factors of the country in which it decides to enter as government is considered as the stakeholder for the company (Nijssen, 2017). Apart from this different economic factors like inflation purchasing power also influences the decision relate to the prices at which the company offers new products in the new market to attract more number of customers.

There are certain factors that also influences the tastes and preference of the consumer due to which it is required by the company to implement the changes in the products and services offered as per the changes occurred in the tastes and preference of the customers for increasing the acceptance level of the new products and service in the new market (De Mooij, 2018). It is also essential for the company to understand the existing technologies, laws and regulations, present in the new country or market that has to ne complied with by the company to gain success in targeting the customers in the new market (McDonald, and Wilson, 2016). The understanding of the laws and regulations existed in the market relevant to the industry in which the company operates helps in making appropriate changes in the processes and polices adopted by the company for entering in the new market to establish strong brand image in the market (De Mooij, 2018). However emergence of globalization and open economy results in bringing uniformity in the rules and regulation established by the regulatory authorities to protect the welfare of the stakeholders (Wilson, and Gilligan, 2012). This also helps in bringing ease in the formulation of policies and procedures aligned with the established legal regulations.

PESTEL and introduction of new product or service

It is found out that SWOT analysis helps in analysis of both the internal and external environment analysis in a way that strengths and weaknesses helps in analyzing the internal environment or capabilities and opportunities and threats provides the information related to the external business environment (Nijssen, 2017). Woolworths is considered as the oldest retail company that has introduced modern trade retail model which helps in provision of the information related to the new products and services offered by the company to its customers in a convenient manner (Whittaker, 2014). A part form this the weakness of the company is that it has limited global presence due to which it needs to extend its distribution network to reach to a large customer base in a timely manner.

The main opportunity that can be exploited by the company is to expand its business in new geographical areas or emerging economies by the way of strategic acquisitions and franchise models which helps in creating more number of employment opportunities in the economy and to provide several growth opportunities to employees which in turn helps in increasing their commitment level towards the organization (De Mooij, 2018). The main threat posed to the company includes rise in the prices of raw material in both food and non-food segment that has a significant impact on overall profit margins of the company this may cause rise in price of the product offered by the company to its customers (McDonald, and Wilson, 2016). The analysis of the strengths of the company helps in the identification of the core competency and capabilities that can be promoted by the company to gain competitive advantage over other players in the market (Nijssen, 2017). In a similar manner the identification of the weaknesses help the company to formulate different strategies for overcoming it in an effective and efficient manner.    

In this manner, SWOT analysis affects the marketing mix decision of the company.

Segmentation, targeting and positioning are considered as an essential element in marketing as it helps identification of the potential customers that can be targeted to increase the sale of the company. The company can segment the market by analyzing the trends existed in the market by the way of changes occurred in the tastes and preferences of the customers (Camilleri, 2018). After segmenting the market information related to the opportunities available in the market that can be exploited by the company helps in identification of the potential customers or group of customers that can be targeted to increase the sales of the company (McDonald, and Wilson, 2016).

SWOT Analysis in Marketing Plan

For example, Woolworths target low income level group by positioning its product as cost effective and create value for them. The company also focuses on targeting upper class households and working class population by segmenting the market as department retails store chain.

For the purpose of attracting customers from this group the company positioned itself in the market as a provider of convenience shopping experience under one roof with a focus on customer services (Whittaker, 2014). Apart from this, STP analysis helps the company to identify its unique selling preposition such as provision of quality products in the homes of working class group this helps in attainment of a competitive edge over other players in the market. The analysis of STP by the company helps in taking advantage of the existing trend in the market to maintain its sustainability and competitiveness and increase its market share (Camilleri, 2018).

It is found out that majority of the Australian businesses are engaged in unethical practices at micro and macro level such as entrance into corrupt dealing with local government, insider trading, contribution towards pollution without engaging in the adequate social responsibility (Armstrong, Adam, Denize, and Kotler, 2014). It also involves selling of the products to foreign government without appropriate approval, recruiting cheap foreign workers instead of Australian workers and so on. In context of Woolworths the company is engaged in extensive promotional and advertisement campaigns for the promotion of the products.

It is found out that food stuff products of the company do not meet the requirement of the consumers in an appropriate manner as it results in harming the health of the consumers. This is the reason that Australian competition and consumer commission sued the company for offering substandard products to customers (De Mooij, 2018). It is identified that Woolworths has adopted a new ethical sourcing policy for improving the monitoring of the social compliance processes such as ensuring human rights and internationally recognized labor standards met out across the global supply  chain this requires submission of the social compliance assessment by the suppliers to the Woolworths with in next eighteen months. This indicates that the company is committed to being a responsible retailer through the ensuring the protection of human rights of all the workers in the supply chain process (Blake, 2018).

The different programs that are implemented by the company to attain social compliance include Business Social Compliance Initiative (BSCI), Social Accountability SA 800, Global Goods Agricultural Practices (GAP), Supplier Ethical Data Exchange (Sedex) and SMETA.

References

Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of marketing. Australia: Pearson Education.

Blake, D. (2018) Woolworths to revamp responsible sourcing program. https://www.insideretail.com.au/news/woolworths-to-revamp-responsible-sourcing-program-201807

Camilleri, M. A. (2018). Market Segmentation, Targeting and Positioning. In Travel Marketing, Tourism Economics and the Airline Product. Springer, Cham. 69-83.

De Mooij, M. (2018). Global marketing and advertising: Understanding cultural paradoxes. USA: SAGE Publications Limited.

McDonald, M., & Wilson, H. (2016). Marketing Plans: How to prepare them, how to profit from them. USA: John Wiley & Sons.

Nijssen, E. J. (2017). Entrepreneurial marketing: an effectual approach. UK: Routledge.

Porral, C. C., & Stanton, J. L. (2017). Principles of marketing. ESIC Editorial.

Tanner, J., & Raymond, M. (2015). Principles of marketing. USA: University of Minnesota Libraries Publishing.

Whittaker, D. (2014). The Strategic Corporate Investments Handbook. UK: Euromoney Institutional Investor PLC.

Wilson, R. M., & Gilligan, C. (2012). Strategic marketing management. Routledge.