New International Markets Waitrose Marketing Essay

Waitrose is one of the taking retail merchants in the UK market being a subordinate of John Lewis departmental shops. In the aftermath of the emerging economic systems, there are many chances which the concern can take advantage of by spread outing its operations internationally. The study will analyse the internal and external factors which affect operations and public presentation and place the states where the concern will spread out its operations to. The study makes recommendations for the market entry and issue schemes, functional schemes and the control system to guarantee that the execution is done successfully for a period of 5 old ages from the twelvemonth 2012 to 2017.


Waitrose opened its first supermarket in 1955 and has shops throughout England, Scotland and Wales locations runing from high streets to inch of town sites and varies in size from 7,000 square pess to about 56,000 square pess. The Waitrose trade name is now owned by John Lewis partnership with a specific purpose of uniting convenience of a supermarket with expertness and service of a specializer store. ( Waitrose Company 2011 ) .

Market choice Criteria

Australia – Australian capital

Australia is a market that has a comparatively small exposure to foreign concern. ( Tunny 2006 ) . The handiness of little concern support in Canberra increases little concern growing supplying market for retail merchant. ( Australian Business 2011 ) . The market has besides demonstrated growing potency in retail concern with departmental shops gross revenues lifting by 2.3 % in January 2011. ( Australian Bureau 2011 ) .

Canberra is a booming capital metropolis in Australia located 150 kilometres off from the coastal lodgers of the state. It has town centres such as Balcones, Tuggeranary and Woden which are known for their immense shopping place. Its shopping zone stands in locality of major tourers ‘ finishs of the metropolis pulling attending from the tourers. The shopper ‘s zone has late gained repute for their night life with a broad scope of amusement and stylist eating houses. ( Asiatic suites 2011 ) . Waitrose enlargement to the metropolis would be appropriate to take advantage of the strategic location which offers an chance for a retail mercantile establishment functioning the demands of the tourers and the occupant. The concern would besides take advantage of the metropolis ‘s drawn-out hours of making concern to the dark. ( Canberra 2011 )

Canada – Manitoba

Most of consumer ‘s outgo by Canadian families is chiefly through retail mercantile establishments which consist of 50 to 55 % of the family. ( Industry Canada 2011 ) . Retailer ‘s concentration has resulted to some retail merchants keeping important market portion like the instance in which the largest supermarket in Canada held 31.1 % of market portion in 1998 compared to US ‘s 5.8 % and Britain ‘s 15.4 % . ( Industry Canada 2011 ) .

Manitoba has a five twelvemonth economic program to taking a balanced attack which will seek to heighten among other things occupations creative activity and protection of services in its command to return Manitoba to surplus. This is reinforced by the 2011 budget which seeks to increase investings in wellness attention enabling all people in Manitoba who would wish to hold a household physician by 2015 to make it, constructing the topographic point with increasing substructure like Bridgess, roads theodolite and community Centre every bit good as seting households foremost with illustrations of recognition on revenue enhancement on kids activities, senior citizens and those who take attention of them. ( Budget 2011 ) .

Manitoba is a strong trading state with a strategic cardinal location within Canada and has critical links by rail, route, air and sea. ( Laubler 2008 ) . With a population of 1,148,401 people, 448,780 families as at 2006 and a important urban population, the debut of Waitrose will be good positioned to capture the mark the chiefly urban population. ( Munroe 2011 ) . The part has transit agencies runing from curries services like Purolator, Looms and DHL. Freight bearers include Canada Pacific while there is air conveyance through the modern regional airdrome. The part besides has coach services across the towns adequate for consumer and concern conveyance. Communication means in the part include newspapers, like the hebdomadal newspaper ; the modern times, fortnightly newspaper ; the southern shopper and day-to-day newspapers. Radio Stationss supplying communicating in Manitoba include CFAM, KAUF, the bird of Jove and the modern town ‘s local CKMW. Digital overseas telegrams and internet communicating are besides available in the part. ( Transport & A ; Communication 2011 ) .

The state besides has high figure if experienced and skilled labour force. ( Manitoba Business 2011 ) Manitoba states have been posting strong retail gross revenues. An illustration was retail clients passing up to $ 1.26 billion worth of gross revenues for the month of September in 2009 which was a 0.8 % addition from $ 1.25 billion in August. The tendency shows a strong market sing the 2009 economic adversity hence showing a possible growing and resilient market. The state is besides an appropriate choice as it had the least bead in gross revenues with the 2009 economic downswing consequence compared to other Canadian states. ( McNeill 2009 ) . The market has besides demonstrated a growing potency with the retail gross revenues lifting for a 3rd back-to-back month by 0.5 % in 2011. ( Statistics Canada 2011 ) .

Pestel Analysis consequences

The internal factors that would impact Waitrose operations in the market would include:

In its enlargement to international markets, the concern will be capable to a wider range of concern environment determined by assorted factors including internal factors that would include: ( Contemporary issues 2011 ) .

Workforce/staff is one of the strengths of Waitrose given that all of its staff are stockholders therefore increases their committedness to the concern. The staff ‘s accomplishments affect the ability of the concern to present to its clients and remain competitory therefore will be a cardinal success factor. ( Waitrose 2011 ) .

Fundss handiness is a factor that affects concern operations. Availability of fundss enhances the concern operations in developing new merchandises and trade names relevant to the market.

Suppliers determine how the company beginnings its inputs and natural stuffs. Supplier ‘s efficiency affects ability to present to clients in footings of cost and timing. ( Pestel Analysis 2011 ) .

Rivals affect the concern market portion by cut downing it therefore negatively impacting its public presentation. ( Pestel Analysis 2011 ) .

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Stockholders affect the determinations that are made sing the investings that a concern is to do therefore finding its ability to stay competitory in the market. Waitrose being owned by John Lewis has its workers being its staff therefore understands the concern operations. ( Waitrose 2011 )

Customers determine the relevant merchandises that a concern should supply in the market. This is besides faced by the altering demands from the germinating penchants, gustatory sensations and life styles which require the concern to stay advanced in order to fulfill the client ‘s demands. ( Pestel Analysis 2011 ) .

The external factors impacting concern in the two select markets include:

Australia- Canberra







Canada- Manitoba

Sociable: Canadian consumers easy place and acknowledge US retail goods increasing the entry of US based retail merchants into the market. Canadians nature demonstrates consumers who are non comfy with individualized merchandising. ( Industry Canada 2011 ) .


Political: The authorities ‘s policies leting foreign direct investing and free trade is increasing presence of liberating retail merchants particularly from US are altering the market construction. The concerns are presenting new retail constructs in the market including low pricing, ‘big box ‘ format and logistic systems. ( Industry Canada ) . The authorities cut downing limitations on foreign investings ( OECD Economic 2006 ) .

Technological: addition in usage of engineering is altering retail market construction. This is through the manner the cyberspace is impacting the agency of consumer ‘s entree of information and purchasing of goods in Canada. It is besides increasing selling in the retail sector. Technology has besides increased in shop invention like usage of saloon codifications and point of sale monetary value scanning. This has enhanced direction of the shops in the market. ( Industry Canada 2011 ) .



Demographic: Age difference determines the suitableness of the retail system service to clients. This was demonstrated by 77 % of Canadian consumers aged 18 to 34 indicating in a study they they would probably shop in self service while those aged 55 old ages and supra would prefer the in shop shopping. ( Industry Canada 2011 ) .

Competition: The increasing competition is transforming the Canadian retail merchants with their command to accomplish a competitory border in the market. The foreign retail concerns presence has resulted to about disappearing of independent local retail merchants with the market going homogenous. Wall marketplace is one of the largest retail merchants in the market credited with presenting invention into the industry. Other retail merchants from US include Old Navy, Best Buy and Staples and victors. ( Industry Canada 2011 ) .

Hazards Considered

The increasing acceptance of self service engineering in the Canadian market may non be suited with some consumers who would instead utilize the traditional retail system. Schemes. . ( Industry Canada 2011 ) .

The increasing usage of cyberspace by consumers besides increases the consumers negociating power over retail merchants since they can entree information about comparing many retail merchants ‘ quality and monetary values. ( Industry Canada 2011 ) .

The different Torahs and ordinances regulating retail industry in Both Canada and Australia may show a challenge to Waitrose impact its operations and public presentation. ( Industry Canada 2011 ) .

High revenue enhancements in Canada like the highest fringy effectual rates experienced in 2005 are a factor that could cut down the investing returns. Large concerns like Waitrose would more like face high revenue enhancements. ( OECD Economic 2006 ) .


Overall scheme

Selected Markets

Winnipeg is the capital and the largest metropolis of Manitoba in which Waitrose should sett up its concern. Its capital part has more than 60 % of Manitoba ‘s population. By 2006 nose count there were 633,451 persons in the town of which 51.7 % were female while 43.3 % were male. 24.3 % of the population were 19 old ages or younger while 27.4 % were between 20 and 30 old ages. Having 409,500 people employed in the metropolis and environing countries and the metropolis holding been ranked by KPMG in 20067 as one of the least expensive locations to make concern in Canada makes it an appropriate location for Waitrose. ( Winnipeg 2011 ) .

Time frame and sequence of Strategy

Entry and Exit schemes

Australia – Australian capital

Strategic Alliances: A more recent phenomenon is the development of a scope of strategic confederations which are different from traditional joint ventures in which two spouses contribute a fixed sum of resources and the venture develops on its ain. In an confederation, two full houses pool their resources straight in a coaction that goes beyond the bounds of a joint venture. ( Luostorinen & A ; Gabrielson 20002 ) . Although a new entity may be formed, it is non a demand it could be supported by some equity acquisition of one or both of the spouses. In an confederation, each spouse brings a peculiar accomplishment or resource-usually they are complementary-and by fall ining forces, each expects to gain from the other`s experience which will be the cardinal driver behide the scheme for Waitrose to set up its trade name in the Manitoba market. The confederations will affect distribution entree, engineering transportations or production engineering with each spouse lending a different component to the venture. The type of the confederation to be applied will be a distribution-based 1. ( Global market 2011 ) .

Sing that confederations with two equal spouses are more hard to pull off than those with a dominant spouse every bit good as acknowledging that the demands and aspirations of spouses may alter over the life of an confederation and in divergent ways, the spouses will be chosen to hold Waitrose as the dominant spouse. The challenge in doing an confederation work lies in the creative activity of multiple beds of connexions or webs that reach across the spouse organisations. It is envisioned that the confederations will finally ensue in the creative activity of new organisations out of the cooperating parts of the spouses. In that sense, the confederations will be merely an intermediate phase until a new company can be formed or until the Waitrose assumes control of the concern. This will be applied in the Manitoba ‘s Winnipeg and Modern metropoliss. ( Global market 2011 ) .

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Canada – Manitoba

Amalgamations and Acquisitions: The demand to come in international markets more rapidly than through constructing a base from abrasion or come ining some type of coaction has made the acquisition path highly attractive aided by the gap of many fiscal markets, doing the acquisition of publically traded companies much easier. The method will be used for the Australian market to complement the Joint venture scheme will besides use in the same market. A major advantage of acquisitions is that they will rapidly place Waitrose in a new concern as it will non hold to take the clip to set up its presence or develop for itself the resources it does non already possess. The scheme will besides be a agency of taking a possible rival out of the market. However the scheme is expected to be an expensive manner to come in a market and incorporating an acquired company into the concern will be a ambitious undertakings facing top direction which will necessitate qualified staff, important support all resources of which Waitrose has. ( Global market 2011 ) .

Functional schemes

In the chase of the international market ventures, functional schemes will be geared towards:

Understanding the connexions between the life style and outgo features of clients, their leaning to buy one merchandise or trade name over another and purchase this apprehension to accomplish competitory advantage.

Bettering direct selling response by guaranting that publicity is aiming the right market section at the right clip, utilizing the right media with the right message.

Leveraging consumer informations to do better strategic determinations about merchandises, selling and locations.

Increase client trueness and keeping with a scientific, informations driven approach to analytical CRM.

The schemes will besides be in consistent with the five pillars of retailing which include:

Connecting with client emotions.

Solving client ‘s jobs.

Puting the fairest and non the lowest monetary values.

Treating clients with regard.

Salvaging client ‘s clip. ( Pavithira 2011 ) .

Marketing mix schemes

A Product placement

The placement of Waitrose will be of much important in gaining client trueness and trust. This will be done by guaranting that service in the mercantile establishments will be satisfactory and convenient to the clients. The shops and mercantile establishments will hold modern engineering to heighten service to clients every bit good as be able to pull off demand decently and guarantee that clients will ever acquire what they expect. Customers will be provided with on-line shopping system and partnership cards where they will gain verifiers or redeemable points whenever they shop. ( Henderson 2011 ) .

Improved compared to the market bing trade names concentrating on niche market will imply being advanced in the market topographic point. The enhanced merchandises will vie with the bing trade names in the market, pull new sections every bit good as pulling new clients who are non a portion of the current mark market for the bing merchandises. ( Kalyanaram 2011 ) .


The pricing will be done in consideration of rival ‘s monetary values and to reflect value to clients. As a new venture in the market, the concern will hold a end of gaining a market portion therefore will necessitate comparatively lower pricing and perceived greater value for premium goods. ( Marketing mix 2011 ) .

Reduced monetary values will be aimed at geting clients where merchandises will be sold at lower monetary values pulling clients who would hold non bought the merchandises. The decreased monetary values will besides be targeted at winning clients from the rivals. ( Kalyanaram 2011 ) .

The concern will do available in the market premium trade names like the royal label ; Duchy Originals which Waitrose was licensed to fabricate distribute and sell. Such merchandises will be good positioned to capture market particularly for the tourer finishs like Canberra in Australia. ( Finch 2010 ) .


The concern will make consumers through different gross revenues channels, shops, web sites catalogues. As a retail merchant, the cardinal facet of distribution will be where the concerns will be located. In Australia Canberra and its town centres, the concern will be located in the shopper ‘s zone in order to do it convenient for the mark market to entree what they need. In Manitoba Canada, the concerns will be located in the City centres of Winnipeg and Modern City where the urban population, bulk of who are working will be the mark market. ( Exforsys 2009 ) On the other side the concern will do consumers more comfy with cyberspace shopping since leting clients to return online purchase to their offline shops in instance of any job. ( Pavithira 2011 ) .

A Promotion

The concern will use a figure of publicity schemes including advertizement, free samples publicity for private label trade names and packaging. Ad will hold three aims of ; making consciousness, go throughing information on available goods and carrying them to purchase. Ad will be done utilizing the traditional media like Television and wireless where the mature aged section can be easy reached and besides utilizing the societal media where the younger consumers can be easy reached particularly sing their important figure in Manitoba Canada. Free samples will be offered in organized competitions which will be used to bring on the clients to seek the new merchandises. ( Promotional mix 2011 ) .

Use of the partnership spinach beet will be good suited where clients will gain verifiers each clip they will pass in the mercantile establishments. The card will besides be used to supply the clients information to the concern where it will be easier to understand them and supply them with good suited merchandises. ( Partnership 2011 ) .

Operational schemes tactical actions agenda

In order to turn over out the internalisation plan successfully, some tactical actions and operations will necessitate to be carried out as identified on the tabular array below with their clip line throught the plan.




Strategic spouses designation

This will be done for all the markets in Canada and Australia to place the spouses for joint ventures and confederations and place the concerns which can be acquired in amalgamations and acquisitions



Mandate and incorporation

For the three schemes of entry, the concern will seek to acquire mandate from the relevant governments during this continuance.

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Staff enlisting and preparation

The concern will engage extra new staff and train all including the acquired concerns ‘ staff about the Waitrose merchandises, service and systems in order to assist them run into client satisfaction.



Radio musca volitanss & A ; Television adverts

Radio and Television Stationss will be identified which will be used to go through information to the markets. The identified medias will be used for advertisement throught the plan.



Online system and other system ‘s update.

The necessary systems for the concern will be installed including the partnership card system and online shopping system for the intent of E-retailing.



Point of purchase

The suited placement of the goods will be identified in all mercantile establishments so that the mercantile establishments can hold the most efficient agreement for client ‘s convenience.



Business shops stock up and launch.

The identified and acquired concerns will be stoked up with Waitrose merchandises and service will be launched.



Personal merchandising.

Will be done so as to make relationships with clients and seek to place what clients will be looking for in a merchandise.


Public dealingss.

Will be a cardinal success factor in seeking to heighten good client dealingss and managing unfavourable events, rumours and negative perceptual experiences about the merchandises and the company.



Contests and publicities

Will be organized so as to interact with consumers and make consciousness every bit good as acquiring their feedback.

EVERY November and December of the twelvemonth from 213 to 2017.

Customer satisfaction study.

This will be done to place whether the concern meets the client ‘s demands satisfactorily and what needs to be improved.

Every June from 2013 to 2017.

Organizational construction

Organizational Structure

In the international market enlargement the concern will accommodate an organisation construction which will place the activities to be performed by specific employees and finding the line of authorization and duty in the business.A These undertakings are divided into four major classs ; strategic direction, administrative management/operations, ware direction, and shop direction. ( Svjrao 2011 ) This will affect stipulating all undertakings that need to be performed and spliting their duties among assorted persons or channels. The undertakings besides need to be grouped and classified into a occupation with a rubric and description. The construction will besides see the market entry scheme used. ( Retail Organization 2011 ) .

The strategic market and finance determinations will be under taken chiefly by senior direction: the CEO, COO, Vice presidents, and the board of managers stand foring stockholders sing that the acquisitions and joint ventures will convey in some portion holders in the concern who might non be needfully employees of the concern as has been with Waitrose operations in the UK.A Administrative undertakings will be performed by corporate staff employees who have specialized accomplishments in human resources direction, finance, accounting, existent estate, distribution, and direction information systems. Peoples in these administrative maps will develop programs, processs, and information to help operating directors in implementing the retail merchant ‘s scheme. ( Svjrao 2011 )

The primary operating or line directors will be involved in ware direction and shop direction. These operating directors will implement the strategic programs with the aid of administrative forces. They will be required to do the daily determinations that straight affect the retail merchant ‘s public presentation. ( Svjrao 2011 )

The followers is the lineation of some of the divisions in the retail organisation which is much the same as John Lewis organisation construction.

Owner/CEO or President

Shop Operationss: Management, Cashier, Gross saless, Receiving, Loss Prevention

Selling: Ocular Displays, Public Relations, Promotions

Selling: Planning, Buying, Inventory Control

Human Relationss: Personnel, Training

Finance: Accounting, Credit

Technology: Information Technology ( Retail Organization 2011 ) .

As the shop grows and the retail concern evolves, the kineticss of the organisation ‘s construction will alter turn toing the new undertakings and duties involved in the international operations. Therefore it will necessitate redesigning the organisational chart to back up the decision-making, coaction and leading capablenesss. ( Retail Organization 2011 ) .

Structures ‘ tantrum with scheme

Strategic control

Control system overview

Control can be chiefly classified as formal and informal with the formal controls being applied by the direction in supervising that undertakings are carried out to the specified criterions while informal control is work related and is implemented by those working on the undertakings as the operations advancement without needfully seeking managerial mandate. Thus informal controls are the most frequent relating to how workers handle themselves and the service bringing. ( Jawarski 1988 ) . The steps will be appropriate for commanding and mensurating accomplishment of the aims like accomplishing the targeted market portion, increasing gross revenues and set uping an effectual and efficient distribution web in the new markets.

Elementss of control

Formal control will include procedure control on how the set criterions are to be achieved. It will besides include end product control and selling audits to set up advancement degrees.

Procedure control

The Company will concentrate procedure control on both direction and organisation control. Management control will guarantee there are in topographic point all resources and committednesss necessary for the aims achievement while organisational controls will concentrate on internal selling guaranting cooperation between sections for smooth operation. ( Jawarski 1988 ) .

two. Output control

Output control will seek to guarantee that the quantifiable aims are been achieved. This will be done by measuring information from the production and other operation sections and from independent studies to assist put accomplishable aims and place necessary steps to accomplish them. ( Jawarski 1988 ) .

Marketing audits

Marketing audits will be performed before the executing of the selling plans to place the cardinal factors. Two methods which will be used are ; SWOT analysis and PESTEL theoretical account to analyse competition, selling mix and macro environment factors. ( Jawarski 1988 ) .

Informal control will include developing an organisation civilization for the concern and making a contributing working environment.

Control tantrum with scheme and construction