Marketing In Australia Analysis 2022

Running Head: MARKETING 1
Name
Institution
Date

MARKETING 2
Marketing
Executive summary
Cole supermarket is among the most developed organizations in Australia. It deals with
retail stores. The organization was established in early 1914 during the Second World War. Just
like any other organization, Cole Supermarket started as a small retail store and grew to a large
supermarket that it is today. It controls more than 31% of the market share in Australia being the
second largest supermarket in Australia. The organization promotes customer satisfaction by
providing goods and services that meet the customer’s preferences and wants. Besides customer
satisfaction, Cole supermarket has also incorporated technology in its operations.
Technology has enabled the organization in achieving computerized management. The
organization has also been able to sell most of its products through the internet. This has been
essential in solving business management challenges that are faced by many organizations today
such as delayed salaries and decrease in productivity. Moreover, online selling plays a crucial
role in attracting new customers for the organization. Cole Supermarket majorly competes with
Woolworth Supermarket in the Australian supermarket.

MARKETING 3
Introduction
Business analysis is an essential tool that every business organization must be aware of,
regardless of the type of products or services they produce. According to Mao (2018), Phillipov
(2016) and Pulker et al. (2019), analyzing the business will ensure that an organization is aware
of its market share. Therefore, it will be easy to produce goods and services that meet the current
demand. Business analysis is also crucial since it depicts the business trends as well as future
uncertainties. The focus organization in this paper will be Coles Supermarket which is one of the
leading organizations in Australia that supply fresh fruits and other products to customers.
Just like any other organization, growth of Cole supermarket will depend on its strengths
and weaknesses (Kobets & Yatsenko, 2018). Cole Supermarket will also benefit from reduced
operational costs. This is because the analysis will ensure that processes are run in an efficient
and effective manner. Cole supermarket will also have to analyze its structure if it has to achieve
a competitive advantage over competitors such as Woolworth. To achieve a competitive
advantage, Cole supermarket will also have to adopt competitive strategies that are rare, valuable
and hard to imitate. These strategies will also ensure that the organization is able to prioritize
their operations thus improving productivity.
Market Size and Trends
There is a very stiff competition in the Australian markets especially in supermarkets and
grocery stores. Most supermarkets have adopted methods such as price reduction initiatives to
attract new customers rather than price differentiation. According to Ma (2015), Shabanova et al.
(2015), Jensen & Sommer (2017), and Steele et al. (2017), there are five major competitors in
this industry with that shares market with Cole Supermarket. They include Woolworth, ALDI,
other supermarkets, Franklins and Specialty foods. Their market shares are as shown;

MARKETING 4
Retailer Market Share in %
Woolworth, 41.1%
ALDI 14.0%
,Other supermarkets, 7.3%
Franklins 5.9%
Specialty foods 1.2%
Coles 31%
Table1: Market Shares for Australian Food Stores.
From the data provided, it can be seen that Woolworth has taken lead in the market;
hence Cole Supermarket has to devise strategies which will ensure that it increases its market
size. Although there has been a slight increase in the market share as compared to previous years,
the increase is very minimal which means that Cole supermarket is at a risk of losing its
customers to competitors. This drives the need to adopt new techniques that will ensure that Cole
Supermarket is able to attract new customers while still retaining the existing ones.
Trends
Although Cole Supermarket is not the leading organization in Australia based on the
market share, it has managed to increase its overall sales by $4.8 billion in 2017-18 accounting
period. Kipturgo (2016), Ali & Faroque (2017), Zhang (2019) state that, increase in market share
for Coles Supermarket can be attributed to the ‘DownDown’ approach that the organization has
adopted. This approach is concerned with reducing product prices and increasing volumes, which
in return increases profitability. Coles Supermarket should ensure that it couples the
‘DownDown’ approach with other techniques to increase its market share.
SWOT and Competitive Advantage
Both the SWOT and competitive advantage analysis will be important to the growth of Cole
Supermarket. The following is the SWOT analysis of the organization.
STREAGTHS