Principle of International business

This article discusses the importance of Coles supermarket's new products, including the launch of "Little Shop" featuring miniature replicas of customer favorites and a new own-brand range of frozen vegan ready meals. It also provides recommended strategies for the future.

Running Head: Principle 0
Principle of International business

Principle 1
Introduction
Coles supermarket is one of the main supermarkets in Australia. It is an Australian
public company operating many retail chains. George Coles established Coles in 1914 and in
July 2007, Wesfarmers acquired Coles Group for approximately $22 billion. Coles acquired a
market share of 31% in the grocery industry and the remaining of the market goes to IGA and
other independent grocers (Wu, Neal, Trevena, Crino, Stuart-Smith, Faulkner-Hogg &
Dunford, 2015). In the following, an effort has been made to discuss the specific issue to the
importance of the company and recommended strategy for the future.
Issue of “new product”
Coles is set to launch “Little Shop,” featuring 30 miniature replicas of customer
favourites such as Nutella, Tim Tams, Vegemite, and Weet-Bix. It is designed to be fun to
provide customers miniature products, which they purchase at Coles Supermarket every
week. Coles identify that their customers love collectibles and carried down into a miniature
replica for consumers to collect and swap. It aims to provide our consumers something fun as
a miniature to accumulate and enjoy. They also added a new own-brand range of frozen
vegan ready meals to its customers. It is stated that their new product line involves Vegetable
Gyozas, gluten-free vegetable Chilli, and Penang Curry (Phillipov, 2016).

Principle 2
("Australia: Supermarket Chain Coles Launches its Own Vegan Frozen Foods - vegconomist
- the vegan business magazine", 2019)
It is stated that it has seen a strong increase in demand and profitability for vegan
products and generate more variety for our consumers internationally. They have also added
certain new products in New Zealand, South Africa, and other countries involving vegan
meals, dairy-free cheese, and other products. It has sustained to develop, grow, and build a
vegan range for our consumers that is convenient, high quality, and affordable. The demand
for customers is increasing at a very fast pace and more prone to enhance their environment,
health, and sustainability. Their products and their packaging are visually interesting, which
are helpful and profitable to customers who are struggling to integrate more vegetable into
their diets. It is profitable for Coles as it assists in developing good dietary habits (Pulker,
Trapp, Scott & Pollard, 2018).
It has boosted the sales of Coles, which has also been successfully operated in several
other countries involving Netherland, South Africa, and New Zealand. It is quite evident that
people are shifting their trend towards health as well as organic food so due to this reason
people are more preferring vegan products. As Coles is an Australia, based company so
people have more trust towards new products of their brand and this brings loyalty and
dependability. It has been seen that Coles has moved on the vegan bandwagon delivering a
number of dairy substitutes and vegan style meats. People are more shifting towards a healthy
diet, which assist in decreasing the risk of heart disease, diabetes, obesity, and cancer. Coles

Principle 3
is more concentrating upon meeting the nutritional need of the customers and this is the
reason they are more prone towards vegan products (Phillipov, 2019).
Coles supermarket demand has been generated for dairy and organic products and
customers are willing to pay a premium for food produced to a greater standard. It has
assisted in advancing growth and profitability. It also shows an appetite amongst customers
for the health and environmental benefits of organic produce. The popularity of organic food
increases and more capable to contribute a high standard of product integrity and increase
prospective customers (Lawrence, Dickie & Woods, 2018).
Advantages/Disadvantages of different approaches
Coles have adopted the new product development approach for the growth and
profitability of the company. They have developed the brand corrosive pursuit of private label
at the expense of branded products. They need to implement the new product development
approach as supermarkets are induced to capture market share and profitability from premium
brands and improve their extent of market share up to 50% by 2020 (Phillipov, 2016). With
this new product development approach, they can improve revenue with the extensive
capability to attain more influence over the other brands. They can use this approach to tap
the potential market capabilities and a vast number of customers. It is stated that profit
generates market capabilities and investment into new product and technological
development so that they are more capable to invest in innovative technologies and
marketing, which assist in making their brands unique from others. This makes the desire to
maintain and develop successful brands for our customers. They have initiated the brand of
frozen vegan ready product with the objective of maximizing the potential advantages. They
have generated successfully customer focussed value proposition, which aims to target the
customers and create a pensive image in the minds of the customers. It is stated that new
product development approach assists Coles in enhancing the performance of existing
products, which enables in generating profit and revenue (Mortimer & Grimmer, 2018).
This approach has specific disadvantages, which can majorly influence the
performance, profitability, and growth of Coles. It is very important to generate new product
development approach as without it can generate unrealistic future expectation for business as
well as the brand. Coles need to maintain the external source, which is incorporated and fall
outside of influence for a brand. It is stated that there is always a risk with product

Principle 4
development as the revenue and costs of the failed idea need to be absorbed. It is a proactive
reaction to a continuous changing framework of customer taste and needs, which induced to
produce more products. At the same time, the Coles need to come up with exciting and
attractive products so that the customers will be loyal towards them (Pulker, Trapp, Scott &
Pollard, 2018).
Recommendation
 Coles is facing a specific issue of new product in the organization, as they are
launching vegan-frozen products to increase sales and profitability.
 They can adopt new product development approach for the successful implementation
of the products in the company.
 For this, they can adopt aggressive marketing strategies in order to generate success
and growth.
 They can initiate the new product development approach by promoting it on social
media and became the market leader in Australia’s retail industry.
 They need to concentrate on recognizing development opportunities and identify the
strategic position of Coles brand portfolio.
 Coles need to maintain relative growth in the competitive position in the market.
 They need to come up with more ways so that they can deliver high-quality products
to the customers at the lowest costs (Henryks, Ecker, Turner, Denness & Zobel-
Zubrzycka, 2016).
Conclusion
In conclusion, it has been stated from the report, which gave some detailed
explanations regarding the issue of new product and recommended strategy, which has
provided greater significance to the company. Coles Little Shop is the product, which gives
choice to the customers in gaining their loyalty and trust. Then they initiated vegan organic
product, which attracted the customers towards them as customers are shifting their trend
towards the organic product. They implemented new product development approach for the
successful execution in the future.

Principle 5
References
Australia: Supermarket Chain Coles Launches its Own Vegan Frozen Foods - vegconomist -
the vegan business magazine. (2019). Retrieved from https://vegconomist.com/products-and-
launches/australia-supermarket-chain-coles-launches-its-own-vegan-frozen-foods/
Henryks, J., Ecker, S., Turner, B., Denness, B., & Zobel-Zubrzycka, H. (2016). Agricultural
Show Awards: A Brief Exploration of Their Role Marketing Food Products. Journal
of International Food & Agribusiness Marketing, 28(4), 315-329
Lawrence, M., Dickie, S., & Woods, J. (2018). Do nutrient-based front-of-pack labelling
schemes support or undermine food-based dietary guideline recommendations?
Lessons from the Australian Health Star Rating System. Nutrients, 10(1), 32
Mortimer, G., & Grimmer, L. (2018). Love them or loathe them, private label products are
taking over supermarket shelves. The Conversation, (19)

Principle 6
Phillipov, M. (2016). ‘Helping Australia Grow’: supermarkets, television cooking shows, and
the strategic manufacture of consumer trust. Agriculture and human values, 33(3),
587-596
Phillipov, M. (2016). The new politics of food: Television and the media/food
industries. Media International Australia, 158(1), 90-98
Phillipov, M. (2019). Supermarkets, television cooking shows, and integrated advertising:
New approaches to strategic marketing and consumer engagement. In Case Studies in
Food Retailing and Distribution, 33(5), 255-265
Pulker, C. E., Trapp, G. S. A., Scott, J. A., & Pollard, C. M. (2018). What are the position and
power of supermarkets in the Australian food system, and the implications for public
health? A systematic scoping review. Obesity reviews, 19(2), 198-218
Pulker, C., Trapp, G., Scott, J., & Pollard, C. (2018). Alignment of Supermarket Own Brand
Foods’ Front-of-Pack Nutrition Labelling with Measures of Nutritional Quality: An
Australian Perspective. Nutrients, 10(10), 1465-1478
Wu, J. H., Neal, B., Trevena, H., Crino, M., Stuart-Smith, W., Faulkner-Hogg, K., &
Dunford, E. (2015). Are gluten-free foods healthier than non-gluten-free foods? An
evaluation of supermarket products in Australia. British Journal of Nutrition, 114(3),
448-454