Coles: Online vs. Physical Store Effectiveness

This assignment evaluates the effectiveness of both online and physical stores used by Coles, a leading Australian retailer. The student analyzes the advantages of each format, considering factors like customer service, product range, and marketing strategies. The research highlights how Coles successfully leverages an omnichannel approach to cater to diverse customer preferences. Ultimately, the assignment recommends an effective omnichannel strategy for Silk Road Furnishing based on Coles' successful model.

Running head: EVALUATION OF ONLINE AND PHYSICAL STORE
Evaluation of online and physical store
Name of the student
Name of the university
Author note

1EVALUATION OF ONLINE AND PHYSICAL STORE
To: The CEO (Silk Road furnishing)
From: (TO BE FILLED BY STUDENT)
Date: 23/09/2017
Sub: Effectiveness of offline and online shop
Dear Sir,
In reference to your request of evaluating the effectiveness of the online and offline
stores, I have conducted an observation survey in Coles. Coles is being selected due to the reason
that they have the presence in both online and offline retailing and they are operating it
effectively. The research was being designed in such a way that it has denoted the advantages
being possessed from both the online and physical store. I have also shortlisted the activities that
they have designed specifically for the online and physical stores. The research is been done by
visiting the store of Coles and observing the trend in their online marketplace.
In the initial stage of their operation in Melbourne and Sydney, Coles started with their
physical store only. It helped them to cater to the customers effectively. It is been observed that,
providing service from their physical store helped them in determining the requirement of the
customers effectively. Providing of effective customer service through the salesperson is only
being applicable in the case of physical stores. Thus, the customers tend to have favorable
impression about the brand. This is not applicable in the case of online stores. Thus, Coles
initiated their physical stores in the initial stage of their operation. It helped them in generating
the initial brand equity from the market. Afterwards, they came up with the online store to extend

2EVALUATION OF ONLINE AND PHYSICAL STORE
their already established market. Thus, online store for them acted as complimentary to their
physical stores.
Another advantage being possessed by Coles from their physical store is the providence
of touch and feel to the customers. This is more effective for Coles due to the reason that, they
operate in the consumer goods category and thus, customers tend to have the access of touch and
feel before taking their buying decisions. Thus, through their physical store, Coles is providing
their customers the touch and feel of their products. This feature is also not being available in the
online store. Moreover, the initiation of spot discounts and offers can be offered to the
customers. Providing offers and discounts are one of the key marketing activities for the retail
organizations such as Coles. Thus, through their physical store, they are effectively driving these
marketing activities.
However, from their presence in the online market also, they are gathering favorable
outcomes from the market. As discussed earlier, the online store for Coles came after the
establishment of their physical store. Thus, it helped them in extending their existing market in
the Melbourne and Sydney. Moreover, the market reach of their physical store is limited to the
area of the Sydney and Melbourne. However, with the initiation of the online store, their market
reach covered the outskirts also. Customers having the knowledge of their physical store but
cannot visit due to the distance factor, availed their online facility. The numbers of targeted
audience also get increased.
Online store of Coles also helps them in offering more diverse and large range of
products to the customers. This is possible in the case of their physical store. This is due to the
reason that, Coles is having huge product portfolio, which is not possible for them to display all

3EVALUATION OF ONLINE AND PHYSICAL STORE
in their store. However, on the other hand, the online store of them displays their entire product
portfolio. It is being noticed that Coles has done an effective job in complying their Omni
channel presence. Due to this reason, several customers visit their physical store in order to have
the access of touch and feel and order the products afterwards according to their convenience and
requirement. On the other hand, some other customers search and select their required items
from the online store and visit the physical store to have that touch and feel of that particular
product. Thus, the average time being consumed in the physical store for the customers is being
reduced.
Therefore, from the conducted research, it can be concluded that, Coles has effectively
implemented the strategy for their physical and online store. In the case of the Silk Road
Furnishing also, it is being recommended that, an effective Omni channel marketing policy
should be initiated in order to manage both medium efficiently. It will help the organization in
targeting the entire available market and providing the highest level of convenience to the
customers.
It is being expected that this survey research will help you in determining the
effectiveness of both the medium. Accordingly you can decide your own strategy. Please feel
free to contact me in case of any clarification.
Thanks and Regards.