Marketing Concepts Applied on Branded Products Sold in Coles

This document discusses the application of marketing concepts on branded products sold in Coles. It covers market segmentation, marketing strategy, customer relationship management, production concept, and societal marketing concept. Examples of branded products and their marketing strategies are provided.

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Marketing Concepts Applied on branded products
Market Segmentation
Biggadike (1981) expressed that marketing concepts and techniques such as perceptual
mapping, market segmentation, and positioning assist in analyzing the business environment and
implement strategic decisions in consumer terms. Market segmentation is one of the vital
contributions to strategic management. Biggadike (1981) defines it as the subdivision of an
economic environment into prominent groups of clientele based on their wants and patterns of
how they purchase and use the products and services. Positioning, serving a subset of consumers
with a plan modified to meet their specific needs, is an enhancing factor to market segmentation.
Marketing managers use geographical segmentation which is about the location of the
customers, psychographics segmentation focuses on the lifestyle of customers, behavioral
segmentation is done on the basis of behavioral, usage and decision-making patterns and lastly
demographic segmentation is the most extensive type of segmentation because its variables
depends on age, gender, income, occupation, religion, race, and nationality.
Arnott Biscuits, sold in Coles, demonstrate market segmentation. Arnott’s Tiny Teddy, a
brand of sweet biscuits, has its primary market focus on children aged between 3-7 years old.
The biscuits are small in size and are shaped as bears to attract children (“Situation Analysis,”
2014). The package of the product is decorated with bees, mushrooms, leaves, three teddy bears,
and ladybugs to attract a young audience. The biscuits also have unique flavors such as
chocolate, honey, and choc chips, intended to satisfy different taste preferences of the
consumers. The biscuits also have health factors making the parents loyal to purchase it. The
product is found on upper, middle, and lowers shelves of all the stores; displaying the biscuits to
the maximum to their customers (“Situation Analysis,” 2014).

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Marketing Strategy
Marketing strategy helps a company to identify and analyze a target market and develop a
market mix to meet the necessities of that market. It involves mixing price, product, distribution,
and promotion to suit a particular group of consumers (Peter, 1999). The main characteristic of a
market strategy is to reflect on the overall goals and direction of the company. All the marketing
mixing decisions should be in harmony with business strategies. Consistency and flexibility are
primary components of significant market-mix choices.
The marketing strategies should be specific, measurable, actionable, relevant, and time-
bound. An analysis of the strategy should provide a report which will further enlighten the
company in making decisions. The decisions are purely based on the content and branding of
products, connection with audiences, the business objectives ensuring the brand has consistency,
and lastly, there is excellent communication with clients, and satisfaction. Due to the frequent
change in consumer lifestyle, preference and tastes, Coca Cola innovates, develops, and launches
new brands that have recognizably different identities. The labels present its customers with a
range of varieties in terms of sugar, caffeine percentage, and flavor while maintaining the great
Coke taste that consumers love. The products have an element of sustainability that cannot be
easily copied by competitors. More than 10,000 soft drinks are consumed in Coles every day due
to a market strategy that meets the needs of every consumer
According to Dickson (1987), Coca Cola uses segment based product differentiation
strategy to cater for demand in heterogeneity. The company has produced diet coke, no caffeine
coke, classic coke, no caffeine coke, coke lime, cherry coke, and many more flavors to satisfy
the needs and desires of each segment. Sales depend on the probability that the unique product

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meets the taste and preferences of the specific group of buyers targeted (Dickson, 1987). The
strategy seems to be working since Coca Cola’s market share has grown intensively over the
years. They have exploited the opportunity of differentiation to the maximum, increasing their
long-term profitability.
Customer Relationship Management (CRM)
Customer Relationship Management (CRM) involves the usage of facts and statistics
about clientele to build marketing strategies that advance and support expedient customer
relationships (Deshpande, 1999). It consists of the use of technology to enable marketers to
improve customer satisfaction. Its main goal is to estimate customer lifetime value (CLV). Face-
to-face communication and relationship building are also critical components of services
marketing (Constantinides, 2006). If internal exchanges between a company and its employees
cooperate, the role of each employee in ensuring customers’ needs are met is outlined. CRM
helps a business to achieve a successful feedback initiative (Akroush, 2011). The primary vital
factors of CRM should, therefore, include principles, practices, and strategies that companies
should adhere to networking with their customers. It should further help manage external
interaction with customers with its technology (Raab & Resko, 2008). It’s important to note that
the essential growth in CRM is majorly in technology, which includes software, cloud
computing, and artificial intelligence.
The head of customer research and insights marketing for Coles, affirmed that they are
always changing their market strategies based on their consumer feedback. Australians change
their norms of shopping, and they have to adjust rapidly. They have been collecting data on
Smith’s products to gather information on the flavors their customers prefer. Consumer feedback
directly influences the decisions on the amount of each Smith’s potato crisps ordered. The

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relationship formed with the consumers helps Coles in identifying the flavors to buy in large
quantities and the flavors to ditch altogether. Based on customer data collected, and previous
purchases, they can give their customer the brand experience they want. From the companies
point of view, the whole customer relationship management should include direct interactions
with customers. Such interactions include after sales and service related processes and
predicting, critically looking at the customer trends and behaviors which will ultimately enhance
the customer's overall experience (Brink, 2009).
Production Concept
Production concept has a philosophy that a product creates its market through the forces
of demand and supply that control the price of the particular product (Martin, 2016). The concept
proposes that consumers are often attracted to utilities that are inexpensive and can be accessed
quickly (Bhasin, n.d). If a company decreases the price of its goods and services, alternatively
the supply of the goods and services will also increase. Emphasis is highly on mass production to
enhance the supply of utilities at a lower cost. The company is, therefore, able to maximize sales
by decreasing its production cost per unit. The production concept is mainly focused on
operations (Martin, 2016).
A business that is production oriented, the needs of the customers are secondary
compares with the need to increase output. An approach as such is advantageous in a company
where has very high growth markets, and the economies of scale are significant. A business
cannot deliver quality products and still suffer from interpersonal behavior problems from their
customers. The company will, therefore, produce more and more products because the product is
practically selling itself to the consumers.

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Twisty is an example of a product that applies the production concept. The brand
products have low prices and are produced in large quantities to cut on costs. Twisties Chicken
Snacks Party Bag is sold at an offer of three dollars instead of four dollars. Coles offers a
discount of one dollar to attract consumers to purchase the product. The method of marketing,
offering a discount, increases sales because a lot of buyers end up buying the crisps due to its
low cost. Consumers always like a bargain in which they can save some money.
Societal Marketing Concept
Societal Marketing Concept involves the production of goods and services to give back to
society. The welfare of society is put into consideration while producing goods and services
(Hackley, 2003). The products target the interests, need, and wants of the community to satisfy
them more efficiently and effectively than its competitors (Edvardsson, 2011). However, the
concept has a significant limitation in the times of environmental degradation, unethical
practices, and shortage of resources. Societal marketing insists on social responsibilities and long
term success that develops and provide value to customers and the social well being. It further
creates a favorable image for the company to increase its sales because it balances the three
considerations in a business which includes satisfies consumers, a society that’s focused on the
human welfare and a profitable company.
Companies may satisfy consumer wants but do not necessarily act in the best interest of
the consumers and society (Reibstein, 2009). The marketing concepts overlook the conflict of
interest between consumer wants and the welfare of the community in the long-run. Nestle
epitomizes the limitation of this concept. There have been grievances about contamination of
products, usage of a lot of water, endangerment of children, and breaking other ethical rules. As

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much as they satisfy the needs of their clientele, they do not act in the best interest of society.
However, the world’s largest beverage company has worked hard to increase social benefits in
the world. They have created a shared value to maintain high standards of codes of conduct and
law. They have also committed to corporate social responsibility to create value through their
business for all the stakeholders. The commitments they have made helped to increase revenue
due to a reduction of mistrust on the company.

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References:
Akroush, M. N., Dahiyat, S. E., Gharaibeh, H. S., & Abu-Lail, B. N. (2011). Customer
relationship management implementation: an investigation of a scale's generalizability
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https://www.marketing91.com/concepts-of-marketing/
Biggadike, E. R., (1981). The contributions of marketing to strategic management. Academy of
Management Review, 6(4), 621-632.
Constantinides, E., (2006). The marketing mix revisited: towards the 21st-century
marketing. Journal of marketing management, 22(3-4), 407-438.
Deshpande, R., (1999). “Foreseeing” Marketing. Journal of Marketing, 63(4_suppl1), 164-167.
Dickson, P. R., & Ginter, J. L. (1987). Market segmentation, product differentiation, and
marketing strategy. Journal of marketing, 51(2), 1-10.
Edvardsson, B., Tronvoll, B., & Gruber, T. (2011). Expanding understanding of service
exchange and value co-creation: a social construction approach. Journal of the academy
of marketing science, 39(2), 327-339.
Hackley, C. (2003). Marketing and social construction: exploring the rhetorics of managed
consumption. Routledge.
Martin. (2016). Major Marketing Concepts You need to know. Marketing concepts. Retrieved
from https://www.cleverism.com/marketing-concepts/
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Raab, G., & Resko, S. (2008). Customer relationship management. Burlington VT 05401-4405:
Gower Publishing House.
Reibstein, D. J., Day, G., & Wind, J. (2009). Guest editorial: is marketing academia losing its
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