Marketing Plan for Coles Supermarket: A Comprehensive Analysis

This report provides a detailed analysis of the marketing plan implemented by Coles Supermarket, focusing on its "Wellness Road" brand. The report begins with an executive summary and an overview of the current marketing situation, including market description and product features. It then delves into a product review, competitive analysis, and channels and logistics review. A SWOT analysis is presented, followed by a discussion of future objectives and marketing strategies. The report includes an in-depth look at the STP (Segmentation, Targeting, Positioning) approach and the marketing mix (Product, Price, Promotion). It also covers marketing research, organization, action programs, and budgets, culminating in a conclusion and references. The report offers a comprehensive understanding of Coles' marketing strategies within the Australian retail market, highlighting the importance of the "Wellness Road" brand and its role in the company's overall marketing approach.

Running head: MARKETING PLAN FOR COLES SUPERMARKET
MARKETING PLAN FOR COLES SUPERMARKET
Name of the Student
Name of the University
Author Note

1MARKETING PLAN FOR COLES SUPERMARKET
Table of Contents
Executive Summary.......................................................................................................2
Current marketing situation............................................................................................3
Market Description.........................................................................................................3
Benefits and Product features.........................................................................................3
Product review...............................................................................................................4
Competitive review........................................................................................................4
Channels and logistics review........................................................................................5
SWOT analysis...............................................................................................................5
Future objectives and Issues...........................................................................................6
Issues..........................................................................................................................6
Marketing Strategy.........................................................................................................7
STP.................................................................................................................................7
The Marketing Mix........................................................................................................8
Product.......................................................................................................................8
Price............................................................................................................................8
Promotion...................................................................................................................8
Marketing Research.......................................................................................................8
Marketing Organization.................................................................................................9
Action Programs.............................................................................................................9
Budgets...........................................................................................................................9
Controls........................................................................................................................10
Conclusion....................................................................................................................10
References....................................................................................................................11

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Executive Summary
The report is based on the study of marketing approaches that have been developed
and applied by a major retail organization like Coles. The analysis in the report will provide
details about the “Wellness Road” named brand of Coles. The brand mainly provides healthy
product alternatives to the customers as a part of its portfolio. The future objectives of Coles
in order to sustain its place in the market have been analysed. The marketing mix, STP and
SWOT analysis are also an important part of the analysis that has been made in the report.
The budget required to implement the objectives is also a part of the report.

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Current marketing situation
Coles Supermarkets mainly provides consumers services to the customers in retail
market of Australia. The firm was established in the year 1914 and the headquarters are
located in Hawthorn East Victoria, Australia. The first store of the supermarket was
established in Collingwood by founder of the company George Coles. The company has
started its online stores in order to offer convenience to the consumers (Coles.com.au. 2019).
The marketing based activities that are being performed by the organization are mainly based
on the improvement of its position in the market. The marketing team of Coles is responsible
for communicating with huge number of Australian customers on a daily basis. The shopping
experience of customers is influenced in a huge manner by the marketing activities that are
performed by Coles with the help of different online and offline mediums (Coles.com.au.
2019).
Market Description
The target market of Coles is quite diverse and the company aims at dividing the
customer base into smaller groups who have homogeneous characteristics. The expectations
or needs of the target market have to be based on the capabilities and resources that have
been acquired by the firm. The evaluation of attractiveness of the target market is able to
ensure development of the Coles in the highly aggressive retail market. Coles has the
opportunity to select more than one target segments in order to ensure high revenues of the
organization (Aguinis, Edwards & Bradley, 2017).
Benefits and Product features
Coles has been functioning successfully in the retail market with the help of its private
label brands that have the ability to fulfil various requirements and demands of target
customers of the firm. The brand that has been considered for analysis in this case is the

4MARKETING PLAN FOR COLES SUPERMARKET
product range that falls under the “Wellness Road” named private brand of Coles
(Coles.com.au. 2019). The major benefits that are offered by products belonging this brand
are mainly related to healthy choices that are provided to the customers. Different choices
that are offered to the consumers of Coles under the private label brand include organic
buckwheat kernels, organic flaxseed oil. Organic red rice noodles, tiger nut flour, textured
vegetable protein (Barros, Hernangómez & Martin-Cruz, 2016).
Product review
The products that fall under the “Wellness Road” named brand of Coles are thereby
able to fulfil the needs of different types of consumers at affordable rates. The choices that
are provided by Coles to the customers are related to their specific needs. The affordability of
the products of the brand of “Wellness Road” is considered to be the most significant feature
that is able to attract consumers towards the organization. Healthier choices provided by the
products of this private label brand are considered the most significant aspects related to the
review and quality of products (Daspit et al., 2017).
Competitive review
The companies that are a part of Australian retail industry have to face intense levels
of competition based on the prices and types of products that are offered to the customers as
well. Coles also faces major competition from the operations and types of products that are
offered by Woolworths to the consumers. The threats are also being faced by the new firms
that are planning to enter the Australian retail sector. The international retail organizations
like Aldi also are able to boost the levels of competition that are faced in the industry (Frynas
& Mellahi, 2015). Healthier alternatives and products are also provided to consumers by the
organizations like Woolworths and Aldi. The price wars that are faced by Coles in the retail
industry are also quite fierce in nature and have an influence on the methods by which the

5MARKETING PLAN FOR COLES SUPERMARKET
company is aiming at developing its place in the market (Ethiraj, Gambardella & Helfat,
2017).
Channels and logistics review
The distribution channel that has been formed by Coles is able to maintain the ways
by which the firm aims at increasing the reach of its products. The awareness related to
products and services that are provided by Coles are also increased by the company with the
support that is provided by the distribution channels. Coles operates more than 2300 outlets
and the company is able to reach out to more than millions of customers with the support that
is offered by the distribution strategy (Hanson et al., 2016). The company strives to develop a
better network of stores and Coles also has an objective to target the growth of net space of
the target market by around 2% to 3% per year. In the year 2015 the organization had started
its operations with the development of its state-of-the-art supermarket that is able to attract
huge number of customers. Twenty new supermarkets had been developed by Coles in the
year 2015. The products belonging to the brand of Coles named “Wellness Road” are also
provided to the consumers with the help of its physical stores and the online channels as well
(Coles.com.au. 2019).
SWOT analysis
Strengths – The reach and distribution of Coles has increased with the support of its
outlets that are available in different parts of Australia. Cost structure of Coles helps in the
production at low costs and selling the products at low prices as well. Automation is also a
major strength that has been gained by Coles in order to enhance the levels of efficiency of
the firm. The large product portfolio and diverse workforce of Coles are also major strengths
of the firm (Hitt, Ireland & Hoskisson, 2016).

6MARKETING PLAN FOR COLES SUPERMARKET
Weaknesses – The inventory based on daily sales of Coles is quite high and the
company has to maintain these with the help of various warehouses. Coles lacks the
implementation of market research in order to develop products that can be offered to the
consumers. The rates of employee turnover in Coles is quite high and this has an impact on
the operations developed by the firm.
Opportunities – E-commerce and internet are able to offer major growth opportunities
to Coles in order to enhance the consumer base related to the products that are offered under
its private label brand. The growth of social media is also a major opportunity for Coles to
communicate with the customers (Jenkins & Williamson, 2015).
Threats – Implementation of new technologies by the competitors is considered as a
major threat to the operations of Coles. The new entrants in the market are also able to
provide major threats and competition to Coles and the revenues that are earned by the
organization as well.
Future objectives and Issues
Issues
The sales of Coles have started deteriorating in the last few years due to lack of high
customer base and effective suppliers in different parts of the country. Coles has not been
able to maintain the proper implementation of marketing strategy that is related to the
effectiveness of future performance of the organization. The culture that is developed in
Coles is an important aspect that has been able to reduce the effectiveness of its operations in
retail industry in the last few years. Coles has not made high levels of investments in research
and development which has a key influence on the lack of revenues (Kenworthy & Verbeke,
2015).

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Marketing Strategy
The core marketing strategy that is developed by Coles is mainly related to the
reforming and improvement of marketing activities and providing the best shopping
experience to the customers as well. The strategy mainly revolves on the focus that is
provided to the stores, people, products, financial returns and care (Coles.com.au. 2019).
STP
Segmentation – The proper development of marketing strategy is supported by proper
segmentation based on behaviour of the customers. The various factors that are considered in
order to implement segmentation include, age, gender, income, values and lifestyle. The large
customer base of Coles can be narrowed by segmenting them into groups that include the
health conscious individuals (Johnsen, 2015).
Targeting – The target market of Coles is based on the customer segments that are
developed with the implementation of segmentation method. The attractiveness levels of the
segments are evaluated by Coles by analysing the size of segments and their buying
capabilities as well.
Positioning – The positioning strategy that has been formed by Coles is based on the
low prices that are oprovided to the consumers. The customers are placed at the centre of the
operations that have been developed by Coles in the retail industry of Australia. The
positioning strategy of Coles is a combination of pricing and customer centric nature of the
organization (Meyer, Neck & Meeks, 2017).

8MARKETING PLAN FOR COLES SUPERMARKET
The Marketing Mix
Product
The product mix or strategy that is implemented as a part of the marketing strategy of
Coles is based on the groceries, fresh food, general merchandise and liquor that are provided
to the customers. The products that are a part of the private label brand of the organization
named “Wellness Road” are based on specific needs of the customers (Lasserre, 2017).
Price
Coles is a major cost leader in retail industry that offers low priced products to the
consumers. The firm aims at lowering the costs of products on a continuous basis for
reaching the customers and maintaining a loyal customer base as well. The products
belonging to “Wellness Road” brand are also provided at low prices to customers in order to
maintain the prices (Coles.com.au. 2019).
Promotion
The marketing strategy of Coles revolves around the prices that are provided to the
consumers who visit various stores. The taglines that are used by Coles for promotions
include “Extra Value for You – and Me”, “Cheap Groceries”. The interactive campaigns that
have been developed by Coles are also able to attract consumers towards Coles (Michael,
Storey & Thomas, 2017).
Marketing Research
Marketing research is considered to be an important part of the businesses that operate
in the competitive environment. Coles has conducted marketing research of the retail sector
of Australia in a vast manner. The Rewards Programs that have been formed by the company
are able to influence the loyal consumers of Coles. The feedback provided by customers of

9MARKETING PLAN FOR COLES SUPERMARKET
Coles is considered to be important for the purpose of conducting extensive research
(Morschett, Schramm-Klein & Zentes, 2015).
Marketing Organization
The promotional and marketing activities that are performed by Coles are mainly
related to the methods by which the company can attract more consumers towards the
organization. The products that are a part of the “Wellness Road” named brand of Coles are
promoted to the customers with the implementation of various online and offline channels.
The online promotions of Coles are able to attract customers towards the healthy products of
the company (Nickols, 2016).
Action Programs
Budgets
The major objectives that have been set by Coles are related maintaining its revenue
levels are based on increasing the profitability levels and awareness related to the brand
named “Wellness Road”. The proper establishment of the healthy private label brand of Coles
in the industry is also a major objective of the firm. Online channels and social media can be
used by Coles in order to meet the needs of the consumers (Popkova et al., 2015).
Particulars Year 1 Year 2 Year 3
Survey 15000 28000 41000
Social media 13000 13000 13000
Print advertisement 11000 12000 13000
Television advertisement 9000 10000 11000

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Total 48000 63000 78000
Controls
Coles can control the operations and revenues of the company with the support of
feedback that is received from the consumers. Customer feedback will be able to play a key
part in the methods by which Coles can enhance the products that are being provided to the
consumers under the brand of “Wellness Road”.
Conclusion
The report can be finished by stating that Coles has been able to maintain an
important place in the retail sector of Australia. The private label brands have been able to
play a key part in the methods by which Coles has gained success in the market. The healthy
products that are offered by Coles under the “Wellness Road” brand can thereby help the
organization to gain a large customer base in retail sector.

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