New International Markets: Waitrose

New International Markets WaitroseWaitrose is one of the leading sellers in the UK commercialise being a subsidiary of flush toilet Lewis departmental stores. In the wake of the emerging economies, there ar many opportunities which the avocation sector clear take benefit of by expanding its operations internation tout ensembley. The report ordain snap the unaffixed and external factors which affect operations and performance and secernate the countries where the duty impart expand its operations to. The report makes recommendations for the grocery entry and rifle strategies, functional strategies and the pull strings scheme to match that the implementation is make conquestfully for a period of 5 years from the year 2012 to 2017.AnalysisWaitrose unfastened its offset printing supermarket in 1955 and has shops by dint ofout England, Scotland and Wales locations ranging from high streets to perimeter of town sites and varies in size from 7,000 squ atomic numb er 18 feet to approximately 56,000 squargon feet. The Waitrose brand is now own by sewer Lewis a discover _or_ abettorship with a specific aim of combination convenience of a supermarket with expertise and service of a specialist shop. (Waitrose connection 2011).Market selection CriteriaAustralia CanberraAustralia is a market that has a relatively little exposure to foreign pipeline. (Tunny 2006). The avail cleverness of small telephone line dungeon in Canberra increases small business growth providing market for seller. (Australian work 2011). The market has oerly show growth electric potential in retail business with departmental stores gross sales rising by 2.3 % in January 2011. (Australian role 2011).Canberra is a flourishing capital city in Australia placed 150 kilometers away from the coastal boarders of the country. It has town centers such as Balcones, Tuggeranary and Woden which be known for their huge shopping plazas. Its shopping zone stands in vicin ity of major tourists destinations of the city attracting attention from the tourists. The shoppers zone has recently gained reputation for their nightlife with a wide range of entertainment and stylist restaurants. (Asian rooms 2011). Waitrose refinement to the city would be get hold of to take advantage of the strategic location which offers an prospect for a retail outlet serving the necessitys of the tourists and the resident. The business would a corresponding take advantage of the citys extended hours of doing business to the night. (Canberra 2011)Canada ManitobaMost of consumers expenditure by Canadian ho callholds is mainly through retail outlets which consist of 50 to 55% of the household. (Industry Canada 2011). Retailers concentration has resulted to some(prenominal) retailers holding world-shattering market share wish the case in which the largest supermarket in Canada held 31.1% of market share in 1998 compared to USs 5.8 % and Britains 15.4%. (Industry Canada 2011).Manitoba has a five year scotch plan to taking a balance approach which exit look to enhance among other things jobs excogitation and protective covering of services in its bid to return Manitoba to surplus. This is reinforced by the 2011 reckon which seeks to increase investments in health charge enabling all sight in Manitoba who would manage to drive home a family doctor by 2015 to do it, building the place with increase infrabody structure equivalent bridges, roads pass across and community centre as surface as putting families first with examples of credit on tax on children activities, senior citizens and those who take care of them. (Budget 2011).Manitoba is a strong trading province with a strategic interchange location within Canada and has vital links by rail, road, air and sea. (Laubler 2008). With a universe of 1,148,401 people, 448,780 households as at 2006 and a significant urban population, the substructure of Waitrose give be well positioned to capture the nates the mainly urban population. (Munroe 2011). The region has transportation means ranging from curries services analogous Purolator, Looms and DHL. Freight carriers admit Canada pacific while there is air transport through the impertinently font regional airport. The region excessively has bus services across the towns commensurate for consumer and business transport. Communication means in the region hold rawspapers, like the weekly newspaper the modern convictions, biweekly newspaper the southern shopper and nonchalant newspapers. Radio stations providing communication in Manitoba include CFAM, KAUF, the eagle and the modern towns local CKMW. Digital cables and internet communication are also in stock(predicate) in the region. (Transport Communication 2011).The province also has high number if undergo and skilled labor force. (Manitoba Business 2011) Manitoba provinces mother been posting strong retail sales. An example was retail guests spending up to $1.26 billion worth of sales for the month of September in 2009 which was a 0.8% increase from $1.25 billion in August. The trend shows a strong market considering the 2009 economic hardship therefrom presenting a potential growth and resilient market. The province is also an appropriate selection as it had the least drop in sales with the 2009 economic downturn effect compared to other Canadian provinces. (McNeill 2009). The market has also demonstrated a growth potential with the retail sales rising for a third consecutive month by 0.5 % in 2011. (Statistics Canada 2011).Pestel Analysis resultsThe internal factors that would affect Waitrose operations in the market would includeIn its magnification to international markets, the business provide be subject to a wider scene of business environment check up ond by various factors including internal factors that would include (Contemporary issues 2011).Workforce/staff is one of the strengths of Waitrose given that all of it s staff are shareholders hence increases their commitment to the business. The staffs skills affect the ability of the business to deliver to its customers and perch competitive thus get out be a separate success factor. (Waitrose 2011).Finances availability is a factor that affects business operations. Availability of cash in hand enhances the business operations in developing new products and brands relevant to the market.Suppliers determine how the company sources its inputs and raw materials. Suppliers efficiency affects ability to deliver to customers in call of cost and timing. (Pestel Analysis 2011).Competitors affect the business market share by reducing it hence negatively affecting its performance. (Pestel Analysis 2011).Shareholders affect the decisions that are made regarding the investments that a business is to make thus determining its ability to remain competitive in the market. Waitrose being owned by John Lewis has its workers being its staff thus agnizes the business operations. (Waitrose 2011)Customers determine the relevant products that a business should provide in the market. This is also gived by the changing needs from the evolving preferences, tastes and lifestyles which make the business to remain innovative in hunting lodge to satisfy the customers needs. (Pestel Analysis 2011).The external factors affecting business in the dickens select markets includeAustralia- CanberraSocialEconomicPoliticaltechnicalLegalEnvironmentalCanada- ManitobaSocial Canadian consumers easily fall upon and come US retail goods increasing the entry of US based retailers into the market. Canadians character demonstrates consumers who are not comfortable with personalized selling. (Industry Canada 2011).EconomicPolitical The governments policies allowing foreign direct investment and free trade is increasing presence of spill retailers especially from US are changing the market structure. The businesses are introducing new retail concepts in the market including low pricing, big box change and logistic systems. (Industry Canada). The government reducing restrictions on foreign investments (OECD Economic 2006). proficient increase in use of applied science is changing retail market structure. This is through the way the internet is affecting the means of consumers memory access of selective cultivation and buying of goods in Canada. It is also increasing selling in the retail sector. engine room has also increased in store innovation like use of bar codes and point of sale price scanning. This has enhanced focus of the stores in the market. (Industry Canada 2011).LegalEnvironmentalDemographic Age difference determines the suitability of the retail system service to customers. This was demonstrated by 77% of Canadian consumers aged 18 to 34 indicating in a survey they they would apt(predicate) shop in self service while those aged 55 years and above would prefer the in store shopping. (Industry Canada 2011).Competit ion The increasing competition is transforming the Canadian retailers with their bid to achieve a competitive edge in the market. The foreign retail businesses presence has resulted to almost disappearance of fencesitter local retailers with the market becoming homogeneous. Wall mart is one of the largest retailers in the market credited with introducing innovation into the industry. Other retailers from US include old Navy, Best Buy and Staples and winners. (Industry Canada 2011).Risks ConsideredThe increasing adoption of self service technology in the Canadian market may not be sufficient with some consumers who would rather use the traditional retail system. Strategies. . (Industry Canada 2011).The increasing use of internet by consumers also increases the consumers negotiating power over retailers since they can access information about comparing many retailers quality and prices. (Industry Canada 2011).The different laws and regulations brass retail industry in Both Canada and Australia may present a challenge to Waitrose affect its operations and performance. (Industry Canada 2011).High taxes in Canada like the highest peripheral effective rates experienced in 2005 are a factor that could reduce the investment returns. Large businesses like Waitrose would much like face high taxes. (OECD Economic 2006).StrategiesOverall strategySelected MarketsWinnipeg is the capital and the largest city of Manitoba in which Waitrose should sett up its business. Its capital region has more than 60% of Manitobas population. By 2006 census there were 633,451 individuals in the town of which 51.7% were female while 43.3% were male. 24.3 % of the population were 19 years or younger while 27.4% were between 20 and 30 years. Having 409,500 people employed in the city and surrounding areas and the city having been ranked by KPMG in 20067 as one of the least dearly-won locations to do business in Canada makes it an appropriate location for Waitrose. (Winnipeg 2011).Time roam and sequence of StrategyEntry and Exit strategiesAustralia CanberraStrategic Alliances A more recent phenomenon is the development of a range of strategic concretions which are different from traditional joint ventures in which two married persons contribute a fixed amount of resources and the venture develops on its own. In an alliance, two faultless firms pool their resources directly in a collaboration that goes beyond the limits of a joint venture. (Luostorinen Gabrielson 20002). Although a new entity may be formed, it is not a requirement it could be supported by some equity eruditeness of one or both of the partners. In an alliance, separately partner brings a particular skill or resource-usually they are complementary-and by joining forces, each expects to profit from the others experience which depart be the nominate driver behide the strategy for Waitrose to plant its brand in the Manitoba market. The alliances leave behind drive distribution access, techn ology transfers or production technology with each partner contributing a different element to the venture. The type of the alliance to be applied provide be a distribution-based one. (Global market 2011).Considering that alliances with two qualified partners are more difficult to manage than those with a dominant partner as well as recognizing that the needs and aspirations of partners may change over the life of an alliance and in divergent ways, the partners ordain be chosen to have Waitrose as the dominant partner. The challenge in make an alliance work lies in the creation of multiple layers of connections or webs that reach across the partner organizations. It is envisioned that the alliances pull up stakes eventually result in the creation of new organizations out of the co operational parts of the partners. In that sense, the alliances leave be in effect(p) an intermediate stage until a new company can be formed or until the Waitrose assumes control of the business. This go away be applied in the Manitobas Winnipeg and Modern cities. (Global market 2011).Canada ManitobaMergers and Acquisitions The need to enter international markets more quick than through building a base from scratch or entranceway some type of collaboration has made the acquisition route passing attractive aided by the opening of many financial markets, making the acquisition of publicly traded companies much easier. The method impart be utilise for the Australian market to complement the Joint venture strategy provide also apply in the same market. A major advantage of acquisitions is that they testament quickly position Waitrose in a new business as it will not have to take the time to establish its presence or develop for itself the resources it does not already possess. The strategy will also be a means of taking a potential competitor out of the market. However the strategy is expected to be an dearly-won way to enter a market and integrating an acquired company into the business will be a challenging tasks confronting top management which will require qualified staff, significant funding all resources of which Waitrose has. (Global market 2011). utilitarian strategiesIn the pursuit of the international market ventures, functional strategies will be geared towardsUnderstanding the connections between the lifestyle and expenditure characteristics of customers, their propensity to bribe one product or brand over another and leverage this understanding to achieve competitive advantage.Improving direct marketing response by ensuring that promotion is targeting the near market segment at the right time, using the right media with the right message.Leveraging consumer data to make better strategic decisions about products, marketing and locations.Increase customer loyalty and property with a scientific, data driven approach to analytical CRM.The strategies will also be in consistent with the five pillars of retailing which includeConnecting w ith customer emotions.Solving customers problems.Setting the fairest and not the lowest prices.Treating customers with respect.Saving customers time. (Pavithira 2011). trade smorgasbord strategies Product positioningThe positioning of Waitrose will be of much significant in earning customer loyalty and trust. This will be done by ensuring that service in the outlets will be satisfactory and convenient to the customers. The stores and outlets will have modern technology to enhance service to customers as well as be able to manage demand properly and control that customers will always get what they expect. Customers will be provided with online shopping system and partnership cards where they will earn vouchers or redeemable points whenever they shop. (Henderson 2011). alter compared to the market existing brands focusing on niche market will entail being innovative in the market place. The enhanced products will compete with the existing brands in the market, attract new segments a s well as attracting new customers who are not a part of the up-to-the-minute target market for the existing products. (Kalyanaram 2011).PricingThe pricing will be done in consideration of competitors prices and to reflect value to customers. As a new venture in the market, the business will have a goal of earning a market share thus will require relatively lower pricing and perceived greater value for subsidy goods. (Marketing mix 2011).Reduced prices will be aimed at acquiring customers where products will be sold at lower prices attracting customers who would have not bought the products. The bring down prices will also be targeted at winning customers from the competitors. (Kalyanaram 2011).The business will make visible(prenominal) in the market premium brands like the munificent label Duchy Originals which Waitrose was licensed to manufacture distribute and sell. Such products will be well positioned to capture market especially for the tourist destinations like Canberra in Australia. (Finch 2010).DistributionThe business will reach consumers through different sales channels, stores, websites catalogues. As a retailer, the depict aspect of distribution will be where the businesses will be located. In Australia Canberra and its town centers, the business will be located in the shoppers zone in order to make it convenient for the target market to access what they need. In Manitoba Canada, the businesses will be located in the city centers of Winnipeg and Modern City where the urban population, majority of who are working will be the target market. (Exforsys 2009) On the other side the business will make consumers more comfortable with internet shopping since allowing customers to return on-line purchase to their offline stores in case of any problem.(Pavithira 2011). PromotionThe business will employ a number of promotion strategies including advertisement, free samples promotion for private label brands and packaging. advertizement will have three objectives of creating awareness, passing information on available goods and persuading them to buy. Advertising will be done using the traditional media like Television and radio where the mature aged segment can be easily reached and also using the social media where the younger consumers can be easily reached especially considering their significant number in Manitoba Canada. Free samples will be offered in organized contests which will be used to set about the customers to try the new products. (Promotional mix 2011).Use of the partnership chard will be well suited where customers will earn vouchers each time they will spend in the outlets. The card will also be used to provide the customers information to the business where it will be easier to understand them and provide them with well suited products. (Partnership 2011).Operational strategies tactical actions scheduleIn order to roll out the internalization program successfully, some tactical actions and operations will nee d to be carried out as set on the table below with their time line throught the program.Action historyDurationStrategic partners identificationThis will be done for all the markets in Canada and Australia to identify the partners for joint ventures and alliances and identify the businesses which can be acquired in mergers and acquisitions01/01/2012-30/06/2012Authorization and incorporationFor the three strategies of entry, the business will seek to get authorization from the relevant authorities during this duration.01/07/2010-30/10/2012 round recruitment and trainingThe business will hire additional new staff and train all including the acquired businesses staff about the Waitrose products, service and systems in order to supporter them meet customer satisfaction.01/11/2012-31/12/2012Radio spots Television advertsRadio and Television stations will be identified which will be used to pass information to the markets. The identified medias will be used for advertisement throught th e program.01/11/2012-30/12/2012Online system and other systems update.The necessary systems for the business will be installed including the partnership card system and online shopping system for the purpose of E-retailing.01/12/2012-30/12/2012Point of purchaseThe suitable positioning of the goods will be identified in all outlets so that the outlets can have the most efficient arrangement for customers convenience.01/01/2013-10/01/2013Business stores stock up and launch.The identified and acquired businesses will be stoked up with Waitrose products and service will be launched.11/01/2013-30/02/2013Personal selling.Will be done so as to spend a penny relationships with customers and seek to identify what customers will be face for in a product.2013-2017.Public relations.Will be a key success factor in trying to enhance good customer relations and handling unfavorable events, rumors and negative perceptions about the products and the company.01/01/2013-31/12/2017.Contests and promo tionsWill be organized so as to interact with consumers and create awareness as well as getting their feedback.EVERY November and celestial latitude of the year from 213 to 2017.Customer satisfaction survey.This will be done to identify whether the business meets the customers needs satisfactorily and what needs to be improved.Every June from 2013 to 2017. organizational structureOrganizational StructureIn the international market expansion the business will adapt an organization structure which will identify the activities to be performed by specific employees and determining the line of authority and state in the business. These tasks are divided into four major categories strategic management, administrative management/operations, merchandise management, and store management. (Svjrao 2011) This will involve specifying all tasks that need to be performed and dividing their responsibilities among various individuals or channels. The tasks also need to be classify and assort into a job with a title and description. The structure will also consider the market entry strategy used. (Retail Organization 2011).The strategic market and finance decisions will be under taken principally by senior management the CEO, COO, Vice presidents, and the board of directors representing shareholders considering that the acquisitions and joint ventures will bring in some share holders in the business who business leader not be necessarily employees of the business as has been with Waitrose operations in the UK. Administrative tasks will be performed by corporate staff employees who have specialized skills in human resources management, finance, accounting, real estate, distribution, and management information systems. population in these administrative functions will develop plans, procedures, and information to assist operating managers in implementing the retailers strategy. (Svjrao 2011)The primary operating or line managers will be involved in merchandise management an d store management. These operating managers will implement the strategic plans with the assistance of administrative personnel. They will be needed to make the day-to-day decisions that directly affect the retailers performance. (Svjrao 2011)The following is the outline of some of the divisions in the retail organization which is much the same as John Lewis organization structure.Owner/CEO or PresidentStore operations Management, Cashier, Sales, Receiving, Loss PreventionMarketing Visual Displays, Public Relations, PromotionsMerchandising Planning, Buying, enrolment ControlHuman Relations Personnel, TrainingFinance Accounting, CreditTechnology Information Technology (Retail Organization 2011).As the store grows and the retail business evolves, the dynamics of the organizations structure will change addressing the new tasks and responsibilities involved in the international operations. Therefore it will require redesigning the organizational chart to support the decision-making, c ollaboration and leadership capabilities. (Retail Organization 2011).Structures fit with strategyStrategic controlControl system overviewControl can be mainly classified as formal and informal with the formal controls being applied by the management in overseeing that tasks are carried out to the specified standards while informal control is work related and is implemented by those working on the tasks as the operations progress without necessarily seeking managerial authorization. and then informal controls are the most frequent relating to how workers handle themselves and the service delivery. (Jawarski 1988). The measures will be appropriate for controlling and measuring acquirement of the objectives like achieving the targeted market share, increasing sales and establishing an effective and efficient distribution network in the new markets.Elements of controlFormal control will include work on control on how the set standards are to be achieved. It will also include output co ntrol and marketing audits to establish progress levels. military operation controlThe Company will focus process control on both management and organization control. Management control will ensure there are in place all resources and commitments necessary for the objectives achievement while organizational controls will focus on internal marketing ensuring cooperation between departments for smooth operation. (Jawarski 1988).ii. Output controlOutput control will seek to ensure that the quantifiable objectives are been achieved. This will be done by assessing information from the production and other operation departments and from independent surveys to help set achievable objectives and identify necessary measures to achieve them. (Jawarski 1988).Marketing auditsMarketing audits will be performed before the execution of the marketing programs to identify the key factors. Two methods which will be used are SWOT epitome and PESTEL model to analyze competition, marketing mix and macr o environment factors. (Jawarski 1988). cosy control will include developing an organization culture for the business and creating a conducive working environment.Control fit with strategy and structureConclusion