Detailed Analysis of Coles Supermarket's Marketing Mix and Strategies

This report provides a detailed analysis of Coles Supermarket's marketing mix, encompassing its strategies, segmentation, and target market. The introduction highlights Coles' establishment, market position, and key strengths, including cost-saving products and services. The report delves into Coles' marketing strategy, emphasizing its focus on fresh food, supply chain management, and customer experience. It examines Coles' segmentation approach, identifying key customer groups such as liquor shoppers, grocery shoppers, and online customers. The report also explores Coles' marketing concept, which prioritizes efficient store design, technology integration, and customer feedback to enhance the shopping experience. The report also mentions Coles' competitive advantages, pricing strategies, and promotional activities, including loyalty programs and interactive marketing campaigns. The conclusion summarizes the key findings and suggests the importance of online retail advancements and supplier relationships for future sustainability.

Running Head: COLES 0
MARKETING MIX

COLES 1
Table of Contents
Introduction................................................................................................................................2
Coles Marketing Strategy...........................................................................................................2
Coles Segmentation....................................................................................................................4
Marketing Concept.....................................................................................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................7

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Introduction
One of the giant Australian supermarket and retail chain i.e. Coles was established in
1914. At present, the organisation set up its presence in more than 807 locations. The number
of employees employed in the company is around 112,298 and Coles earned A$ 39.28 billion
in the year 2018 (wesfarmers.com.au, 2018). The biggest competitor of Cole’s supermarket is
Woolworths, however, with their strength and capabilities including cost saving products and
services, the company standouts to second largest player in the Australia grocery sector
(Keith, 2012). Majorly, Coles marketing strategy is comprised of fresh quality food, superior
consumer experience, smart stores and offering greater value. The company have various
opportunities in the future considering private label products, growth in national liquor
market and skilled HR resources. In addition, Coles stores complemented up with the food
necessities of Australia based on their store of cooking and the culture.
Coles Marketing Strategy
In relation with the marketing strategy, Coles is being increasingly focused on
offering fresh food to the customers with its enhanced supply chain system. The company
believe in enhancing their relationship with the key suppliers to simplify the supply chain
management system and thus provide superior services to the consumers at lower prices. The
company also drives to look for various relevant channels to reach to the consumers with the
help of mobile applications and click and collect sites. The main objective of the organisation
is to provide the Australian people a unique shop experience that they belief for its brought
value, service and superiority (Dwivedi et al, 2012). In addition to this, there is surplus of
initiatives being taken up by Coles to come across the requirement of the current consumers.
Considering its products, Coles liquor offers hundreds of liquor brands. The company also
has an extended variety of native as well as imported brands. Coles also offers financial
services including insurance of car, home, life and credit cards. It has more than 1 million
customers (Wilkins, 2016). The company also undertake various hotels under the brand name
Spirit hotels.

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In extent with pricing strategy, Coles is considered as a cost leader. The company
offers high quality products at lower prices in order to retain customer over longer period of
time (Johnston et al, 2017). In Australia, cost of living is high and this signifies a competitive
benefit for Coles. In extent with lowering cost, the company invest more in store network,
shorten process, offers training and retain skilled HR resources to provide quality customer
experience. Coles express brings out Everyday Value pricing to its superstores comprising
food-to-go and 80 cent coffee. The company offers various programs where the customer can
save more such as price-capped discount for New Year and Christmas. Other than this, Coles
offers various loyalty programme where the consumer can save $10 while redeeming
respective flybuys points (Brabender, 2011). This not only helps the organisation to raise
brand loyalty but also attract number of customers with the growth of organisation.
In terms of place strategy, Coles target to develop better store network with growth
rate of 2-3% per year. Other than their 2300 plus outlets, the company also offers customers
an online platform where they can check the product online and place an order anytime as per
the convenience. Various Coles express stores also opened with an improved range of
accessibility and food in relation to many offers. All this offers customer a greater
convenience and accessibility towards the brand products.
The promotional mix of Coles revolves around lower price strategy that their stores
offer. The company sells products with using of attractive taglines such as “why pay more”
“Extra value for you – and me” and “Cheap Groceries” signifying the value for customer
with shopping at Coles. At various times, Coles launch interactive marketing campaigns
through which they record various response of the customers like why they shop from Coles
and so on. The company have various loyalty and promotional schemes including reward
programme. One of them is flybuys loyalty connecting more than 5 million Australian active
users. During New Year and Christmas, the company also offers various promotional
schemes.

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Coles Segmentation
Coles primary segment includes the liquor shoppers, grocery shoppers, household
shoppers and web customers. Segmentation is always a significant aspect of Coles promotion
strategy. It benefits the enterprise to acknowledge the consumer behaviour of diverse groups.
Target market is related to the market identification catering to specific segment so as
to attain its goals of revenue earning (Goyat, 2011). The target consumers for Coles are the
Australian individuals having dissimilar cooking practices and are happy with the services
offered by Coles. Coles primary target market has been the household segment of the retail
marketplace; this is imitated by the considerable trades that have taken place in terms of
groceries sales tailed by home products. It is deeply involved in the decision making of Coles
supermarket authorities. An enterprise like Coles is always recognized for its commitment
headed for its consumers. The consumer response of Coles allows company to analyse the
consumer demand proactively and these are mix-up for improving their product and services.
Secondary buyers will be elder people and single male and females working experts and the
international market.
Individuals in the target market are searching for greater value products and also
ready to give high price for the food and number of these consumers gain collective position
from their purchasing behaviour. Typically, these consumers belong to upper middle to upper
collective class and have a proclivity for higher status brands. They are less desirable for
loyalty programs and are not price receptive. They frequently do experiment with products
and enjoy extensive ranges of products.
Below are the targets markets including proposed marketing tactic -
Section Primacy Ages Effort Planned
Market
strategies
Old generation Middle 50 – 67 Old – Fashion,
Price concern,
Occasional
concern
Freshness to
prices strategy,
occasional and
low price
approach.

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New generation Middle 25 - 40 Concern for
innovative
technology
e-commerce,
low price tactic
Working
generation
High 35 – 50 Need
convenience,
Price concern,
Product quality
concern
Pick up today
strategy,
freshness to
price strategy,
occasional price
strategy
Young
generation
Low 10 – 25 Availability in
campus brand
repeatable
Brand
recognition –
Coles-on-
Campus,
Society support
Marketing Concept
Under marketing concept, the company designed stores in such a way that all space
utilized efficiently and place a significant role towards productivity of stores. The company
have smartly invested in various technology in the stores offering superior experience to the
consumer through ease of shopping. The supermarket stores of Coles also have very fast
decision making practice that rapidly resolves the inquiries of consumers. It also offers click
and collect services to all its consumers in align with mobile application allow customer to
pay online for order and attains timely delivery. The company is also planning for practical
display with installing shallower shelving that can easily upright and rearranged freezers
enabling consumers to watch products more effortlessly (Bedo, 2018). Coles also said that it
will listen to customer feedback carefully as the company is planning to roll out smaller
format stores in the upcoming years. In addition, a Coles representative also stated that it was
constantly investing in refurbished and new supermarkets to raise customer shopping
experience. It can be done by providing the latest in fresh food technology as per the market
style layout mound grocery shopping more convenient and enjoyable (Bedo, 2018). This
strategy helps the customer to raise their in-store sales as well as also raise customer base of
the organisation.

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Coles has been changing its marketing strategy on a continuous basis in order to
deliver greater shopping experience to the consumers. The central marketing strategy of
Coles includes embracing on HR resources, supermarket stores, its products and financial
earnings with a following of six step point plan. It includes providing better value, superior
customer experience, providing fresh and quality products to the consumers, operating
smarter stores, increase availability, serving and selling with personality. This six-step point
plan helps Coles to attain its corporate goals while delivering best and quality services to the
customers by setting up market trust.
Conclusion
Hence, it gives comprehensive descriptions about the present marketing strategy of
Coles and their future perspective. Coles is having a culture of doing great in saving cost and
offering quality products to the customers (Grewal, Levy & Kumar, 2009). However, to
ensure future sustainability, it is suggested to implement online retail technological
advancement measures. Other than this, mounting online sales along with greater association
with suppliers can serve as best planned solution for Coles Supermarkets and will also benefit
in gaining various viable advantage in the industry.

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References
Bedo, S. (2018). Supermarket designs created especially for time-poor customers with a
focus on fresh produce. Retrieved from
https://www.news.com.au/finance/business/retail/supermarket-designs-created-
especially-for-timepoor-customers-with-a-focus-on-fresh-produce/news-story/
35dcc9b13a631762afc76b1bccfbc51d
Brabender, C. S. (2011). The Secret Diary of a Coles Girl. Meanjin, 70(2), 94.
Dwivedi, A., Merrilees, B., Miller, D., & Herington, C. (2012). Brand, value and relationship
equities and loyalty-intentions in the Australian supermarket industry. Journal of
Retailing and Consumer Services, 19(5), 526-536.
Goyat, S. (2011). The basis of market segmentation: a critical review of literature. European
Journal of Business and Management, 3(9), 45-54.
Grewal, D., Levy, M., & Kumar, V. (2009). Customer experience management in retailing:
an organizing framework. Journal of retailing, 85(1), 1-14.
Johnston, R., Stafford, J., Pierce, H., & Daube, M. (2017). Alcohol promotions in Australian
supermarket catalogues. Drug and alcohol review, 36(4), 456-463.
Keith, S. (2012). Coles, Woolworths and the local. Locale: The Australasian-Pacific Journal
of Regional Food Studies, 2(1), 47-81.
wesfarmers.com.au. (2018). 2018 Half-year Results Briefing Presentation. Retrieved from
https://www.wesfarmers.com.au/docs/default-source/asx-announcements/2018-half-
year-results-briefing-presentation.pdf?sfvrsn=0
Wilkins, G. (2016). Coles enters deal with Citi over $880m credit card business. Retrieved
from https://www.smh.com.au/business/companies/coles-enters-deal-with-citi-over-
880m-credit-card-business-20161117-gsr6iv.html