Non-price Based Marketing Strategy

Running head: NON-PRICE BASED MARKETING STRATEGY
Non-price Based Marketing Strategy
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NON-PRICE BASED MARKETING STRATEGY 2
NON-PRICE BASED MARKETING STRATEGY
Introduction
Many stores and other business have based their marketing strategies on the price of
commodities and have neglected other factors for a long time. Cutting of prices has been used by
very many businesses in an effort to gain competitive advantages over their rivals. However,
price-cutting is associated with many inconveniences and does not serve the purpose of product
promotion fully. Therefore, we need to ask ourselves whether this is the most effective way of
product promotion. If not then what are the strategies that can be used other than cutting prices to
be able to secure the largest share of the market? The following is an analysis of the current
market situations in the food industry in French and the grocery retail sector. It looks into the
current strategies used in marketing the products and the reasons why there is a lot of shift of the
strategies to new one other than price-cutting. Other strategies such as advertisement have also
been looked into and the justification of the best strategy given.
The food industry is a crucial sector in the Australian government and contributes a lot to
the growth of the economy. It also contributes to employment and finances to the government.
The marketing strategies that are currently used in the country have incorporated many changes
that are very significant to the promotion of market in the country. The industries are well known
for the production of fresh and quality food (Norkaew, 2018). This has enabled the country to
remain the top food producer in the world. The production processes have also improved by the
incorporation of high-quality raw materials to improve the quality of food produced by the
industry. The marketing strategies that are currently being used in the food industry revolve
around lowering the prices of the commodities. Different chain stores such as Coles use taglines
such as “why pay more, cheap groceries” and others in their advertisement to promote their sales
(Ma, Dewally, & Huang, 2017). The company gives a huge discount to their consumers to be
able to compete with other companies. However, the company is recently in a campaign to shift
from the price strategy to other strategies.
The initial marketing strategy of Cole supermarket
Cole’s current strategy is based on price adjustments that use tones such as down down
and cheap cheap. Their competitors apply this in their efforts to bring the chain store down. Its

NON-PRICE BASED MARKETING STRATEGY 3
competitors have been on their shoulders wondering what the company would do next after the
strategy of price reduction. This is in their effort to reduce the effect of Cole’s strategy and
bemoaning the strategy success (Fung, & Liu, 2018). They would come up with similar tones
such as cheap cheap that would push the marketers away from a green corner. However other
than the woollies supermarket, there have been new players who are now coming up to challenge
the chain store's values and grip (Gnanapragasam, et al 2018). For instance, Aldi is one of the
businesses who are bringing a great threat to Coles. The company has a fresh approach to the
market and therefore has become an alternative for those people who are bored by Coles and
Woollies tit for tat games. They are also bored with the down tones and are willing to hear
something else.
From the argument, it is clear that Cole ought to change from the down-down campaign
to some other strategies that will have more impacts. The down down and cheap-cheap tones are
supposed to be left for some other small food businesses such as chip and fish wrappers. This
strategy is outdated and people are now shifting to a more reasonable and convincing strategy
(Cole, et al 2018). Retail as per now is not about cheap cheap and down-down but is about “new
news”. Therefore, there is the need for the business to change from their initial magic to be able
to compete with other retail businesses. Coles need to change their companies to a different
thing other than down-down tones. Some other business changed a long time ago and is now
enjoying the benefit.
The rationale for shifting from the price-based strategy
Now one may ask why there is need to shift from the price based marketing strategy and
yet it has been used for a long time by successful business (Dean, Griffith, & Calantone, 2018).
The price based marketing strategy is accompanied with some very critical inconveniences that
can be avoided by application of other strategies. First, when the price is the main selling point
there will be an automatic decrease in the shopper’s royalty. Therefore, customers change to
become more conscious about price. On the other hand, price strategies are very costly for retail
business operators. This is because the cost of operation remains constant and yet there is a
reduction in the price of commodities. At the end of the day, the business will be out of the
margin and thus make losses. For instance, Cole's result for half a year shows that there is a
decrease in the earnings. This is from $920 to $790 million, that is a 14.0% decrease (Sexton, &