Business Report: Comparative Analysis of Woolworths and Coles

This report provides a comprehensive comparative analysis of Woolworths and Coles, two major Australian supermarket chains. It begins with an introduction to both companies, outlining their profiles, market share, and overall marketing approaches. The report then delves into market segmentation strategies, highlighting how each company targets its customer base using demographic, geographic, and behavioral segmentation. A detailed comparison of Woolworths and Coles follows, focusing on differentiators such as delivery options, reward schemes, and competitive advantages. The report further examines the core values, product offerings, and pricing strategies of both companies, including the impact of government regulations. The analysis extends to promotional mixes, exploring how each company influences and informs customers about its brands and products. Finally, the report concludes by summarizing key findings and insights into the competitive landscape of the Australian supermarket industry.

Report

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Section 1.......................................................................................................................................1
Section 2.......................................................................................................................................1
Section 3.......................................................................................................................................2
Section 4.......................................................................................................................................4
Section 5.......................................................................................................................................4
Section 6.......................................................................................................................................5
Section 7.......................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business Report refers to a written document which contains the different types of plans
of the companies. Its usage can be made by the organizations so that they are able to frame a
proper plan for their business in the future (Abbasi, Ali and Bibi, 2018). This will be quite
helpful for them in the future. For this report, Woolworths has been considered. It is an
Australian chain of supermarkets which provides groceries and other related products to its
various customers in the market. Another company which has been considered is Coles. It is an
Australian company which also provides its products and services related to groceries and other
products to the customers. In this assignment, focus will be made on the different sections which
are included in the preparation of a business report.
MAIN BODY
Section 1
Profile of Woolworths- Woolworths is an Australian chain of supermarkets and grocery
stores. It has a very high market share in the supermarket sector (Becker, 2018). It provides a
wide range of products and services to its different types of customers. It is a company which
makes sure that it is able to provide the right products and services to its customers in a highly
effective manner. It has a wide range of different customers in the market in various segments
and has stores spread all over Australia. In terms of Overall approach towards marketing
Woolworths ensures that it is able to offer varied retail products to the customers, sets prices
according to the level of demand, operates its stores all over the country and uses different types
of promotional strategies in the market. The overall marketing approach of Woolworths is quite
aggressive in nature and it targets its different target groups with its promotional offers, discount
offers etc. It maintains a fine balance between its marketing tactics and the requirements in the
market which allow it to be able to achieve its goals and objectives. In this way it is able to
enhance its presence in the market in an effective manner.
Profile of Coles- Coles is an Australian chain of supermarkets and consumer services
chain. This company ensures that it provides various types of products and services to its
customers according to their different needs and requirements in a highly effective manner. In
Coles the overall marketing approach is offering retail products to the customers , setting price
according to the level of competition, operating stores across the country and making use of
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traditional as well as modern promotional strategies. The overall marketing approach of Coles is
focused on ensuring that it remains competitive in the market. In this way it is able to ensure that
by adopting proper pricing strategies it is able to achieve its marketing goals and objectives in a
highly effective manner.
Section 2
Segmentation: It refers to the process of dividing market into small homogeneous
segments to identify potential customers. Market is segmented broadly on four basis, that is,
behavioural, demographic, geographic and psycho-graphic. With the help of segmentation,
company's understanding of their customers improve which further helps in better strategic
planning and increases the predictability of upcoming trends (Coffelt, Baker and Corey, 2016).
Woolworths uses more than one segmentation strategy to understand and approach their
customers. Its focus is mainly on demographic and behavioural segmentation. Demographic
segmentation includes factors such as, age, income, gender, religion, family structure,
occupation, culture etc. on the other hand, behavioural segmentation involves brand loyalty,
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buying behaviour, etc. These basis of segmentation helps firm to identify needs and wants of
customers visiting supermarket and promotion techniques that company should adopt to
approach to potential customers. Coles makes use of geographic segmentation and thus ensures
that the various types of customers are targeted on the basis of geographical areas where they are
living. Thus the company is able to frame specific strategies for them so that they are able to
attract them in a highly effective manner.
Targeting: This approach enables business to concentrate on group of customers who are
most willing or potential in purchase goods and services that firm offers (Lopez, Bastein and
Tukker, 2019). Targeting strategy is focused on approaching end users of the product. It is often
used increase brand awareness and build effective planning to approach and target effective
buyers. While analysing Woolworths it can be identified that firm focuses on high income
customers who are not willing to compromise on quality of food purchased. Company also
launched a campaign named ' Fresh Food People' which indicates that food sold in Woolworths
is fresh, the motive of this campaign is to attract customers who are quality focused. It also sells
DVDs, beauty products, magazines etc. which are most youngster focused items because as
compared to old age people, youngsters prefer more to visit supermarkets. Firm also has home
delivery options which target people who has busy schedule and cannot manage to visit to the
store. Hence, it can be predicted that entity is building effective strategies to satisfy their target
market. In Coles also the young customers are targeted through the application of a strategy of
offering discounts, promotional offers which ensures that the profits are effectively enhanced.
Section 3
Differentiation between Woolworths and Coles-
 Coles provides free delivery to its customers for the products which are availed by them
which thereby ensures to catch their attention effectively and efficiently. Thus in this way
the free delivery option can manage to attract the customers towards the stores in a highly
effective manner. This facility is not offered by Woolworths as it offers only paid
delivery of its products to the customers. Thus in this way Coles manages to attract its
various types of customers quite effectively as they are attracted by the free delivery
which it is offering.
 The Reward Schemes which Coles has for its products ensures that it offers greater
flexibility level to its customers. While the reward scheme of Woolworths is also good it
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can create in comparison to Coles it is not as attractive for the customers. Therefore in
this manner it ensures that it is able to offer the loyalty rewards to its loyal customers
helping it in customer retention. Also this strategy can be useful for it to achieve its goals
and objectives.
Competitive Advantage-
Due to the advantage in the terms of free delivery and reward schemes it can be said that Coles
has the advantage over Woolworths because it is superior in them (McKay and Reis, 2016).
Value-
The free delivery scheme and reward schemes of Coles offers a distinct value to it over the
various customers in the market. Thus in terms of value Coles has an advantage over
Woolworths.
Positioning Statement-
Woolworths-
For the young customers who look for a nice shopping experience our lifestyle products offer
various benefits like better features, cheap prices which our other competitors are missing.
Coles-
For the young customers who are looking forward towards purchasing better grocery products
our products offer various benefits like fresh groceries, appropriate price which our other
competitors are missing.
Similarities between Woolworths and Coles-
Both of the companies are similar in the terms of the products which they offer to the customers
because both of them are supermarkets. Also they both have similar customer base which they
target.
Differences between Woolworths and Coles-
Both of the companies are different in the terms of quality of their products. The lifestyle
products of Woolworths are better as compared to Coles. Also they both are quite different in the
terms of reward schemes which they are offering to the customers as the reward scheme of Coles
is more better than Woolworths.
Section 4
Core Value of Woolworths- Quality, service innovation, integrity, energy and
sustainability are the core values which are offered by Woolworths to its customers (Rosati and
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Faria, 2019). Due to these values it creates a trust among its customers that allows them to be
able to trust the company.
Core Value of Coles- Integrity, honesty and mutual respect for people and the customers
are the core values which Coles offers to its different customers. Due to them the customers are
attracted towards the company and trust the products which it is offering.
Actual products of Woolworths- A wide range of retail products including groceries,
clothes and other lifestyle products are offered by Woolworths to its customers. These products
fulfil the different needs and requirements which the customers may have in the market.
Actual products of Coles- Coles also provides retail products in different forms to the
customers which ensures that they are able to target the customers having needs and
requirements in different forms (Vilnai-Yavetz and Levina, 2018).
Augmented products of Woolworths- In Woolworths the products which are provided
to the customers offer several benefits such as good quality, different types of features which
make them different.
Augmented products of Coles- In Coles, the various products which are offered to the
customers are the ones which which offer them benefits like discount, promotional offers which
manage to attract them.
Value created by market offerings of Woolworths- In Woolworths the market
offerings offer distinct features to the customers at a reasonable price which ensures that they are
able to give the customers a higher-level of satisfaction in a highly effective manner.
Value created by market offerings of Coles- In Coles, the various types of market
offerings offer additional features to the customers through the discounts, promotional offers etc.
which ensures that they are able to get value for the money which is paid by them to purchase the
different products.
Section 5
It is the sacrifice a customer is willing to pay in monetary terms so as to purchase a
product or rendering service. It includes various price strategy and tactics that a firm uses so that
it can have increased sales.
Woolworths- It is a firm which is well established and running its business since a very
long time. It is a supermarket and supplies essential items too in which government accordingly
uses price floor and price ceiling. In price floor there is a fixation of price such that price of a
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product can't go below that (Koh, Singer and Edmondson, 2019). While in price ceiling there is a
upper limit of price of a product such that price of a product can't go below that. Woolworths
uses different kinds of pricing strategy to lure customers like giving rewards, allowances,
cards,etc.
Coles- It is a supermarket firm that is establishes since a long time and has captured a
much bigger share in the market. Government also implies price floor and price ceiling to this
company as it also deals in providing goods and services that are of essential nature so
government intervenes in the working of this company too.
Similarities and differences-
Both the firms that are Woolworths and Coles operate in a similar industry that is
supermarket and thus deals with a same group of people and have similar type of risks and
advantages. Similarly both are operating in the same region too.
There are lot of differences in both the firms that are Woolworths and Coles as the first
company does not reduce its prices to attract customers, the latter reduces its prices and gives
allowances to lure customers.
Section 6
Promotional mix is defined as process of influencing and informing the number of
customers towards a brand and products of organisation which they wants to sales and increase
profitability. For ant organisation it is important to bring the new products and services by
understand needs and wants of their customers which can help to deliver the best services and
maintain the higher profitability. To attain the goals and objectives of organization the main
focuses of business concern is promotional channel which uses to share the information and
messages that provide right information and increases brand image. In other words, promotional
mix is a set of marketing approaches that marketers develop to optimize promotional efforts and
reach the larger audience. This is needed for marketers to find the best promotional mix activity
and implement in their organisation which can help to attracts the large number of customers and
maintain higher profitability. The Woolworth is larger size supermarket in Australian country
that uses different sources of promotion which influences number of customers. The comparison
between Woolworth and Coles are as defined:
Woolworth Coles
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In Australia, Woolworth is a larger
supermarket that provide different types of
products and services by understanding the
needs of their customers and delivering them
best services. This organisation is brining
innovation and new process of distributing the
products which helps to reach the targeting
audience and increasing the performance in
challenging environment (Sharma, Nasreen,
and Kumar, 2019).
The management of chosen organisation are
using online media, loyalty schemes,
magazines, newsletter, gift cards and their own
websites for the purpose of informing number
of customers. This is targeting its regular
customers who are expecting different new
products so that they feel good.
Other than this, chosen organisation is having
online stores where it give a good discounts
and gift awards to attracts the crowd. These all
promotional channel helps organisation to
reach the target segment and a high range of
profits by delivering best quality of products
and services.
This also defined as supermarket in Australia
which find out the current and consumer trend
for selling their products and services. Variety
of products, quality and service are offering by
such organisation by using different
promotional channel that helps to targetting the
audience which increases higher productivity
and sales.
The management of such organisation uses tag
lines such as “why pay more” “Extra Value for
You — and Me" and "Cheap Groceries" that
influences the number of customers and retain
them for long period. The organisation is also
having interactive campaign which uses to
promote their products and services in targeted
market. The company also has loyalty,
discount and promotion schemes that mainly
uses for influencing the number of customers
and deliver them best products.
Moreover, it uses flybuys loyalty and festival
season offer which can help to increase the
number of customers and maintain the higher
performance in retail sector (Qian, and et.al.,
2019).
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From the digram it has been illustrated that Woolworth organisation is using new
technology in their promotional mix such as advertising, sales promotion, You tube, social
media, and direct marketing which helps to attracts the large number of customers.
On the other side, Coles are using selling, public relation, bill boards and other sources to
reach the targeted customers which helps to maintain the higher profitability.
Section 7
Place refers to the physical or virtual location of a firm in which customer have easy
access so that it is convenient for the buyer to purchase the product easily without much hassle.
The companies do various things to improve its location of the firm by geographically locating it
correctly near the places where raw material can be easily available and the finished product can
reach to the potential customer on time without any problem.
Woolworths- It is located in Australia and has many branches all around the world. It has
covered many places that makes it one of the prominent company in the world. Also it is active
in the online market and that is proved beneficial for it in increasing its sales and subsequently
increasing the profit.
Coles- Coles supermarket firm is also located in Australia and operated many branches of
it from there on. It has established a prominent supply chain due to its geographically location
and thus it helped in directly increasing the profit of the firm and thus growth is achieved due to
this factor(Scheela, 2016).
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CONCLUSION
From the above report, it can be concluded that a business report is a form of report in
which the different types of details regarding the businesses are covered. It is framed by the
companies for the purpose of achieving their specific goals and objectives. In the marketing
strategy of the organizations different types of elements are included which are quite helpful for
them in ensuring that they are able to raise their overall level of awareness among the various
types of customers in the market thereby allowing them to achieve their different types of goals
and objectives in the future.
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REFERENCES
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employers’ perspectives. Business and Professional Communication Quarterly. 79(3). pp.300-
316.
Koh, H. K., Singer, S.J. and Edmondson, A.C., 2019. Health as a way of doing
business. Jama. 321(1). pp.33-34.
Lopez, F. J. D., Bastein, T. and Tukker, A., 2019. Business model innovation for resource-
efficiency, circularity and cleaner production: what 143 cases tell us. Ecological Economics. 155.
pp.20-35.
McKay, A. and Reis, R., 2016. The role of automatic stabilizers in the US business cycle.
Econometrica. 84(1). pp.141-194.
Qian, C., and et.al., 2019. A study on the promotional mix of pre-service in the view of service
design. Industrial Management & Data Systems.
Rosati, F. and Faria, L. G. D., 2019. Business contribution to the Sustainable Development
Agenda: Organizational factors related to early adoption of SDG reporting. Corporate Social
Responsibility and Environmental Management. 26(3). pp.588-597.
Scheela, W., 2016. Business angels in emerging economies: Southeast Asia. In Handbook of
Research on Business Angels. Edward Elgar Publishing.
Sharma, Y., Nasreen, R. and Kumar, A., 2019. Role of social network in defining the impact of
marketing-mix on satisfaction from food items at subsistence marketplace. Indian
Journal of Marketing. 49(2). pp.7-24.
Vilnai-Yavetz, I. and Levina, O., 2018. Motivating social sharing of e-business content: Intrinsic
motivation, extrinsic motivation, or crowding-out effect?. Computers in Human Behavior. 79.
pp.181-191.
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