Analysis of Coles

Analysis of Coles 1
AN ANALYSIS OF COLES
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Analysis of Coles 2
An Analysis of Coles
Issue 1: Company Background
Coles is an Australian based supermarket, retail, and consumer service chain. It was
founded by George Coles, and the entity has been in business for the past 105 years. The
operations of the company cover 807 locations all over Australia and have managed to employ
over 100, 000 people. While operating in the retail industry, the company has been growing to
reach AU$39.217 billion in revenues as at the end of 2017 (Wesfarmers, 2017). However, after
the business experienced some challenges in 2007, it was acquired by Wesfarmers which later in
2018, demerged Coles to let it become a standalone entity in the Australian market (Coles,
2018).
The company does not have a publicly announced mission statement. However, its vision
is to make life easier for its customers, team members, suppliers, and partners. With the firm
having carried out several marketing campaigns in the past, its slogans have been changing all
the time. Its original slogan was “nothing over 2/6”. From 2010, the company started a campaign
to regain its dominance in the market and the slogan “Down, Down, Prices are Down” which has
been in existence since then until March 2018 when it was dropped after the company demerged
from Wesfarmers.
Marketing Orientation
Coles follows a social marketing concept as its orientation. The primary focus is on
giving the consumers and local suppliers better and quality services in different ways that benefit
both the target groups and the company. Ideally, this approach seeks to unlock the potential in
society by solving any societal problems present (Gordon, 2013). In the same context, Coles
embraced this kind of marketing orientation by deciding to source most of its products from local

Analysis of Coles 3
farmers whenever possible. Furthermore, it is involved in promoting urban farming through its
Coles Nature Fund initiative (Coles, 2018). Accordingly, the approach improves customers and
society’s wellbeing as described by a study by Gordon (2011).
Company Products
With the aim of promoting healthy lifestyles among the Australian communities, Coles
Supermarkets offers a wide range of foodstuffs, both fresh and packaged. Among the key fresh
products offered includes fruits, vegetables, and seafood. For packaged products, they include
items such as beverages, food supplements, deli, and dairy products. Other than foodstuffs, the
company also sells apparels, fuel, liquor, and general merchandise. In essence, the company
offers more than 5000 products in its different stores across Australia.
With Coles being an already established brand that has been in the market for over a
century, the name of the company has become a valuable aspect of its marketing strategy.
Ideally, the brand defines how marketing messages are perceived by the consumers in the
market. This forces the company to align its marketing strategies with its core value and
corporate culture for better outcomes.
Issue 2: The 5Cs of Coles
Company
Coles has three critical strengths that enable it to remains sustainable in the market. First,
the company has attractive pricing strategies that are convenient for price-conscious buyers.
Second, due to its long history in the market, it has the largest share. Lastly, Coles proud itself
for having unmatched advertising and branding in the Australian market. However, it has two
weaknesses than limits its success in the market. First, the company operates with lower margins
due to the shrinking retail market and its low prices (Letts and Chalmers, 2019). Second, there is