Marketing Strategies of Woolworths and Coles Group
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This essay discusses the marketing strategies of Woolworths and Coles Group, two major supermarkets in Australia. The essay analyzes their marketing practices, competitive edge, and success stories. Theoretical applications of marketing theories are also discussed.
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Running head: MARKETING MARKETING Name of the Student Name of the University Author Note
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1MARKETING Introduction Marketing can be described as a thinking in the business domain whereby the customer needs and their satisfaction acts as a primary concern. The concept of marketing is very different from that of the selling because in selling the concept lies on exchanging the products of the company with the customers in return for the cash, however this is not the case in marketing whereby the main focus is to discover, arouse, create and satisfy the needs of the consumers (Armstronget al.2015). Selling is primarily profit oriented whereas Marketing is customer oriented.Marketinginvolvesselectionandthedevelopmentofaproductoraservice, determination of the price, development of the promotional strategy and the selection of distribution channel. The given essay is based on the marketing aspect of two organization. The organizations which have been chosen for the given assessment are Woolworths and Coles group. These supermarkets are situated in Australia and tend to form a large share of the grocery and supermarket industry in the country. The marketing practices and competitive edge of each company shall be discussed with evidence. About the company: Coles Group The Coles Group of companies is an Australian company which has various retail chains under its brand name. The organization is the second largest retailer after the Woolworths Limited and was under the Wesfarmers group of companies earlier, but now it plans to function independently (Coles.com.au. 2018). The primary motive of the company is to provide the different people of Australia with a unique shopping experience which they can trust and this shall help it in delivery of services, quality and values. The marketing process of the organization
2MARKETING is fairly simple in nature and tends to function on a six point plan which helps the company to achieve their strategic objectives. In order to satisfy the different needs of the customers, the company offers a large variety of products which comprise of skin care, vegetables, whole meals, baby care and other premium brand products from various parts of the globe (De Mooij 2013). The stores have matched up to the food requirements of the Australian culture. The company provides competitive pricing poly and uses various promotional strategies like reducing queue time for customers, providing flexibility, collaborating with Second Bite program and others. The primary competitive gain from this process is the flourishment of diversity, building up of the brand image and increased revenue for the organization. About the company: Woolworths TheWoolworthsSupermarketsprimarilyknownastheWooliesisanAustralian supermarketandgrocerystorechainwhichisownedbytheorganizationWoolworths supermarkets Limited, the organization was found in 1924 and along with the Coles group, the company forms a duopoly in the Australian market. The supermarket chain sells a wide variety of goods and services to the customers and has more than 1100 stores across Australia. The marketing process of the organization is quite organized in nature and uses various channels for marketing. Woolworths specially concentrates on the digital marketing platform with various online channels for reference (Woolworths.com.au. 2018). The company sells a wide variety of products like baby care, furniture, food items, home utilities, skincare’s and related goods at competitive prices. The pricing strategy as followed by the organization is the cost leadership strategy.Moreover,in order topromotethe goodsof the organizationby followinga
3MARKETING comprehensive Fresh Food campaign and a good customer loyalty program which further attracts the different customers towards the firm. Through this the organization has been able to gain a large customer base. Marketing Success Woolworths Recently, in February 2018, the company brought about a nostalgic brand image, subtle advertisement messages and innovations marketing technique in order to gain a larger market share. The main objective of the marketing campaign was to gain a larger market share with respect to it competitor, the Coles brand (Czinkota and Ronkainen 2013). The primary focus of the company was on the larger supermarket stores which attended to capture, family shops rather than convenience store at the smaller stations. Furthermore, with respect to this strategy itself, the company invested a large number of dollars to reduce the prices and repair its price positioning in the organization (The New Daily. 2018). Moreover, this strategy of it, primarily aimed to improve its image in the eyes of the different customers and the target market viewed it as less expensive than that of its competitors. Along with this, the company concentrated on the branding of the company which had ecologically friendly connotations of nature.Hence, Woolworths, subtle advertisement strategy and concentration of green marketing helped the firm to improve its profitability and in this quarter, the profits surged to 38%. Coles Group In the year 2014, Cole’s group of supermarkets came out with a marketing initiative against the Cheap, Cheap marketing initiative by formulating on the lower prices. The company used this as an extension of the Coles group`s down down strategy, with the help of which the
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4MARKETING organization wanted to signal that everyday goods which were available at Coles were priced comparativelylowandthatitportrayeditselfasatrustbasedpricinginthedifferent advertisement channels (Ward and Ward 2018). Through this marketing strategy, Coles attained considerable success and its objective of portraying itself as a lower pricing retail chain was achieved. Theoretical application Woolworths From the marketing success example, as observed in the previous section, the primary motive of the company Woolworths was to target a specific set of consumers who had a particular well defined lifestyle. Their values, perceptions and priorities were faced at the center of the focus of the company. Through targeting the retail stores which were situated in respectable areas and targeted at the family audience, Woolworths made use of the Values, Attitudes and Lifestyle theory based in marketing. According toBurns, Bush and Sinha (2014), the consumer decision making and perceptions tends to form the major part of the marketer’s activities and thus, the marketers and large organizations aiming to find success in the long run, tend to cater to the values of the marketers. According toBabin and Zikmund (2015), if the marketers believe in a certain dimension, the different companies aim to capture that dimension For instance, as the ecofriendly mantra has become considerably a popular concept in general, Woolworths aims to capture this though the logo. The subtle advertisements and the better pricing strategy gives out a message to the target audience of the chosen lifestyle that the companyisconcernedabouttheirrequirements.Hence,thecompetitiveadvantageof Woolworths in this case is the brand image.
5MARKETING Woolworths successfully captures the Values, attitudes and the lifestyle theory by successfully offering the customers goods that they well, store and location strategy as per the targeted lifestyle and the brand image hints at their attitudes (Goworek, McGoldrick and McGoldrick 2015). Coles Group From the pricing strategy of the organization discussed in the previous section, it can be stated that, the pricing strategy which was followed by the company was based on the Competitive pricing strategy of the marketing. Cole’s group was facing competition from the retail giant Woolworths organization and due to this reason, it decided to incorporate a competitive pricing technique for the welfare of the company. According toBresler and Lubbe (2014), pricing component tends to form an extensive aspect of the marketing theories and the pricing plays a key role in the success of the organization. For this reason, it is very important for the firm to ensure its pricing strategy is such that they are easily able to attain the desired target market audience. A competitive pricing strategy can be described as a strategy where an organization tends to set the price of the product or the service being offered with reference to the competition which is changing continuously. According toBoone and Kurtz (2013), when two businesses tend to sell similar products to the designated target market, this kind of pricing strategies are generally applied. Although the service appears to be different, for instance Coles promises to offer everyday goods at reasonable prices. Hence, it can be observed here that although the goods are similar, because of the differentiated service, the prices might differ. However, competitive pricing strategy seems to be the clear strategy of the Coles Group. The competitive advantage of Cole’s group is its inventory and reasonable pricing
6MARKETING Conclusion Therefore, from the given analysis it can be stated that the Marketing dimension of an organization tends to act as an essential aspect of it and any company who aims to achieve success in the long run needs to look out for strategic marketing opportunities. The given essay seeks to explain the concept of marketing followed by the importance of it. The two companies which had been chosen for the essay were the Cole’s group and Woolworths. Both the companies are engaged in retail business in Australia and take up an essential share of the Australian supermarket industry. The marketing success of each company has been discussed extensively with links to the marketing theories. Moreover, practical campaign examples along with the theories and models applicable have also been discussed.
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7MARKETING References Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction. Babin, B.J. and Zikmund, W.G., 2015.Exploring marketing research. Cengage Learning. Boone, L.E. and Kurtz, D.L., 2013.Contemporary marketing. Cengage learning. Bresler, M. and Lubbe, I., 2014. Marketing management. Burns, A.C., Bush, R.F. and Sinha, N., 2014.Marketing research(Vol. 7). Harlow: Pearson Coles.com.au.,2018.ColesSupermarkets.[online]Availableat:https://www.coles.com.au/ [Accessed 26 Jul. 2018]. Czinkota, M.R. and Ronkainen, I.A., 2013.International marketing. Cengage Learning. De Mooij, M., 2013.Global marketing and advertising: Understanding cultural paradoxes. Sage Publications. Goworek, H., McGoldrick, P.J. and McGoldrick, P.J., 2015.Retail marketing management: Principles and practice. Harlow, UK: Pearson. The New Daily. ,2018.How Woolworths are winning over consumers.[online] Available at: https://thenewdaily.com.au/money/finance-news/2018/02/23/woolworths-half-year-profit-coles/ [Accessed 26 Jul. 2018]. Ward, M. and Ward, M. ,2018.Coles focuses on 'everyday' lower prices in new campaign - Mumbrella. [online] Mumbrella. Available at: https://mumbrella.com.au/coles-focuses-261305 [Accessed 26 Jul. 2018].