Competitive Analysis: Dan Murphy’s, Australia

Running head: E-COMMERCE & MARKETING
Competitive analysis: Dan Murphy’s, Australia
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1E-COMMERCE & MARKETING
Introduction and background
Dan Murphy’s is one of the largest liquor chain stores in Australia. It is owned by the
Woolworths Group. The company stores the widest range of liquors at the best and lowest
market prices. It specializes in the most exclusive range of wines. Each of the Dan Murphy’s
stores carries more than 3500 products that include all types of spirits, beers and wines, while the
online store carries more than 5000 products. (Woolworthsgroup.com.au 2019). Dan Murphy’s
also sells wines and other types of liquors directly imported from around the globe.
Dan Murphy’s was established in 1952 by Dan Murphy at 290 Chapel Street, Prahran,
Melbourne, which was less than a kilometer away from the liquor store owned by his father, Ted
Murphy. Dan sold his company to Woolworths in 1998 and since then Woolworths has expanded
the number of stores across the country to a massive number to become the top liquor seller in
the country. The core business of Dan Murphy’s include importing exclusive wines from
overseas, purchasing in bulk and selling those at the lowest price possible. Other than more than
200 stores across the country, it also has online store. The online store of Dan Murphy’s is
responsible for almost 50% of the alcohol sales in Australia via online channels
(insidefmcg.com.au 2017). The company has a wide variety of craft and imported beers too with
the product range of 6000 different products, which is more than any bottle shops in Australia.
The Dan Murphy’s Celler was opened in 2016 by Woolworths, located in the original Dan
Murphy’s store in Prahran. It sells boutique and premium liquor products, such as, vintage, rare
and hard-to-source domestic as well as international wines (Danmurphys.com.au 2018). Dan
Murphy’s also offer Lowest Liquor Price Guarantee, which promises to beat the advertised price
of any competitor, provide the store of the competitor is located within 10 kilometers form any
Dan Murphy’s store. Along with that, it has launched customer rewards programs in 2014 and
earned more than 1.7 million members as of October 2016 (Danmurphys.com.au 2018). Dan
Murphy’s has been able to form an oligopoly in the liquor market of Australia which creates
barriers for the smaller retailers.
Customer service par excellence is the main business motto of Dan Murphy’s and it holds
for both the physical and online store. The online store offers more product varieties at the
lowest price possible in the market. It also helps in increasing the convenience of the customers

2E-COMMERCE & MARKETING
by offering three types of deliveries, such as, on demand delivery, which is metro delivery within
less than 2 hours; self pick up from any Dan Murphy’s store within 30 minutes of online
ordering; and direct shopping at the stores (Danmurphys.com.au 2019).
The target markets of Dan Murphy’s include adults aged more than 18 across the country
irrespective of their gender, economic and social background. By offering liquors at the lowest
market prices, Dan Murphy’s has targeted professionals of all income groups. Moreover, people
who have a luxury lifestyle, and are price insensitive for high quality liquors. The revenue of this
liquor store grew in a massive way in the past few years and it became a part of $8 billion liquor
business of Woolworths, which also includes the BWS chain (Evans 2016). It has earned $4.3
billion in 2016 which accounts for 30% of the total alcohol sales (Insidefmcg.com.au 2017).
Key Partners
Woolworths
Key Activities
Sale of liquor
Value
Propositions
Lowest price
guarantee
Providing
imported, rare
and exclusive
domestic and
international
wine and other
types of liquor
Customer
Relationships
Providing
suggestions to
the customers
based on
purchase history
Customer
Segments
Age: 18 and
above
Economic
background: All
income groups
Social
background:
high society
people, upper-
middle class
people, with
preference for
high quality
liquor
Key Resources
Efficient man
power, for
managing price
comparison
each morning,
marketing
activities,
capital for
importing rare
and exclusive
wines
Channels
More than 220
stores across
Australia
Online store
Supply source
for imported
products