Digital Marketing Technological Advancements in NZ Retail - AM809001

This report analyzes the digital marketing strategies employed by two major New Zealand supermarket chains, Countdown and PAK’nSAVE, focusing on their use of technology to enhance customer satisfaction and drive growth. It examines specific tools and platforms utilized by each company, such as social media, mobile applications, and loyalty programs, and evaluates their effectiveness in engaging customers and building brand loyalty. The report also investigates the impact of these technological advancements on consumer behavior, noting the increasing preference for self-checkout systems and online shopping options. Furthermore, it identifies challenges such as theft and the loss of personal touch in customer interactions. The report concludes with recommendations for improving competitiveness, including enhanced employee training, personalized customer experiences, and customer satisfaction surveys. Desklib offers a wealth of similar solved assignments and study resources for students.

Running head: MANAGEMENT
Management
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Executive Summary
The report has helped in the identification of various digital marketing technological aspects
which have been used by the two retail organisations that have helped in improving the overall
contentment among the different customers. The diverse customer satisfaction along with
relationship marketing aspects has been identified that has developed the overall satisfaction
among the various customers. There have been different negative aspects of the implementation
of the technological advancements which have affected the overall efficiency of the firms
negatively.

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Table of Contents
1. Introduction..................................................................................................................................3
Summary of Countdown..............................................................................................................3
Summary of PAK’nSAVE...........................................................................................................3
2. The relevance of New Technological Advancements and Media...............................................4
Media and Technology Tools Utilized by Countdown................................................................4
Critical Investigation with Theoretical Aspects of Customer Satisfaction..................................4
Media and Technology Tools Utilized by PAK’nSAVE............................................................5
Critical Investigation with Theoretical Aspects of Customer Satisfaction..................................5
3. Influence of Technological Advancements for Growth of Organization....................................5
Impact of Technology on Customer Behavior.............................................................................5
The significance of Technological Advancements in Assisting Customers................................6
Implementation of Technologies at Supermarkets......................................................................7
4. Recommendations........................................................................................................................7
References........................................................................................................................................9

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1. Introduction
The report focuses on the identification of the technological advancements which are
being utilized by the two major supermarkets namely Countdown and PAK’nSAVE.
Furthermore, the usage of the digital marketing technologies will be identified as to analyze
whether the companies are making the correct utilization of the same or not.
As hypothesized by Balusamy et al., (2017), in the era of globalization, the significant
assets of the organization are the different customers as they are the ones who help in deciding
the failure or success of the company. To maintain the competitive advantage in the market, it is
essential for them to reassess the different strategies related to marketing which have been
implemented by them. There has been the inclusion of the social media tools such as Facebook
and Twitter wherein they can have their presence as this assists in attaining the maximum
benefit.
Summary of Countdown
The countdown is one of the greatest supermarket chains which are the subsidiary of
Woolworths New Zealand, and the respective store is significant in comparison to the general
markets present in NZ. The company opened their first shop in 1981, and 184 locations are being
served by the company, and the number of employees who are working in the company is more
than 18000 (Countdown.co.nz, 2019). The rival named Four Square Chain is more potent in
comparison to Countdown as they have a massive presence in the different other rural areas.
Summary of PAK’nSAVE
It is one of the discount warehouses of food that is being owned and operated by the
Foodstuffs Cooperative. The company commenced their operations from 1985, and it has been

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headquartered in Wellington which is situated in New Zealand (Paknsave.co.nz, 2019). There are
more than 57 areas served by the company, and as per September 2017, the primary policy of the
company is to help the customers with various groceries along with the food items at the lowest
prices. The company is situated in a no-frills environment; however, the customers are charged
for the plastic polythenes in different stores of the company.
2. The relevance of New Technological Advancements and Media
Media and Technology Tools Utilized by Countdown
As hypothesized by News.com.au (2019), due to globalization along with the perfect
market competition, it can be seen that the communication in digital marketing aspects plays a
significant role in gaining the trust among the customers in the competitive business
environment. As commented by News.com.au (2019), there is a thin line which is being
maintained as to improve the overall image of the brand.
In Countdown, the scan and check out aspect has been introduced by the organization to
attract the attention among the customers. However, the presence of social media is less in
contrast to the PAK'nSAVE Supermarket.
Furthermore, there is a launch of new supermarket shopping application named Click and
Collect App which helps in alerting the users which will let them know when their order is ready
to be picked up along with the store when the customers is on their way (Nzherald.co.nz, 2019).
These are the methods which have been proved efficient as it helps in engaging more customers
through the website of the company.

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Furthermore, there is inclusion of One Card Facilities which is treated as loyalty
program wherein the customers will be receiving various discounts and offers by providing the
card and it is valid for six months. However, there are few terms and conditions which are
required to be followed by customers as to avail the discounts (Countdown.co.nz, 2019).
Social Media Platform and Tools
Facebook and YouTube are the major social media platform which mainly focuses on
communicating with customers related to different products and food items.
Figure 1: Increase in number of web visitors
(Source: Countdown.co.nz, 2019)

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Figure 2: Snapshot of Facebook Profile of Countdown Supermarket
(Source: Countdown.co.nz, 2019)
Figure 2: Snapshot of YouTube of Countdown Supermarket
(Source: Countdown.co.nz, 2019)

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Critical Investigation with Theoretical Aspects of Customer Satisfaction
After the analysis of the technological advancement, it can be critically analyzed by
Domazet andNeogradi (2019), the theory of Assimilation posits that various customers have
different expectations relating to the items and it includes the overall performance perceived by
the products. As commented by Crosby (2016), the dominant kind of aspect is entirely based on
the whole sort of satisfaction which can be experienced by the customers who are being invented
by the organization.
Media and Technology Tools Utilized by PAK’nSAVE
As hypothesisedby Sinha et al. (2018), digital marketing plays a vital role in reaching
different customers in a competitive business environment.
The sticky Club Rewards Card Program has been introduced by the company to
motivate the employees, and it will encourage the customers to pay and receive gifts as per the
amount of the purchase. Furthermore, the presence in the social media channels is high which
has assisted the company in improving the brand image of the company, and it increased the
loyalty among the customers.
There is inclusion of social media platforms which are being used by the PAK’nSAVE
which helps in managing the overall sales of the organization appropriately. Through Facebook
page, they try to make the customers aware about the different kinds of offers and discounts
which are provided by them to customers.

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Figure 4: YouTube Channel of PAK’nSAVE
Figure 5: Facebook Page of PAK’nSAVE

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Figure 6: News on the Online Party of PAK’nSAVE
Critical Investigation with Theoretical Aspects of Customer Satisfaction
As commented by Gibson and Hanson (2018), relationship marketing is one of the major
aspects which has been introduced by the organization which will increase the loyalty among the
customers. Furthermore, as per the reports of Paknsave (2019), it has been opined that
personalized kind of communication in the digital marketing can have contact with the customers
in a usual manner and satisfy the different requirements of the customers. For example-The
reward cards have introduced by the company has helped in improving the loyalty of the
customers towards the brand. The official application of PAK'nSAVE is the other significant
advantage as the customers can gain a competitive advantage as there are more than 55% of the
customers who prefer online websites due to the work schedules.

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3. Influence of Technological Advancements for Growth of Organization
Impact of Technology on Customer Behavior
In according to Countdown, the different consumers in the market are satisfied with the
self to check out the system as they feel that the customers are enjoying the service in
comparison to the usage of the cashier lane (Dodson, 2016). Through conducting surveys, it has
been noticed that many customers do not prefer talking face to face with other individuals when
they are performing shopping.
Due to the inclusion of the language section option in the self-check out the system, it has
improved the overall satisfaction among the customers. The effectiveness of the speed of the
person check out system has proved to be advantageous for the customers and the company to
become more competitive in comparison to the other competitors in the business environment. It
has minimized the overall stress among the employees in a positive manner which has increased
brand loyalty.
On the contrary, it has been noticed that as per PAK’nSAVE customers, the rewards
scheme cards which have been introduced which has increased the loyalty of the customers. It
has been beneficial in motivating the customers as the trust has grown and more than 43% of the
different shoppers both male and female have been tried to influence their decision making
aspects while shopping from PAK'nSAVE.
The significance of Technological Advancements in Assisting Customers
Both technological advancements play a vital role in managing the various requirements
of the customers, and it has been useful for the overall success of the company. As per Self-
checkout system, the implementation has been done for the office goers as they are busy with

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their schedules and they do not have time for standing in the queues (Stephen, 2016). Due to the
introduction of Kiosks, the store managers can keep a proper track on the transactions which
have been done by the customers in minimal space.
In the case of PAK'nSAVE, the overall satisfaction among the different customers have
improved as the rewards card scheme which has improved the morale of the employees along
with the improvement of the purchasing power of the staffs. The customers are conscious
regarding the brand that has been improved, and the customers try to accumulate the various
benefits on the purchase, and they try to receive different discounts, and there are different offers
and prizes on every purchase from various outlets of the organization in the worldwide (Todor,
2016).
Implementation of Technologies at Supermarkets
In the case of Countdown, there was an incident of theft as all the systems are not
secured with anti-theft shoplifting technologies. To solve the same, there can be an introduction
of the different anti-theft shoplifting technologies which will be improving the situation. There
has been a lack of personal touch among customers and employees as there are customers who
prefer chatting with the employee while purchasing and it has affected the image of the brand.
On the other hand, in case of PAK’nSAVE, it has been difficult for them in matching the
bottom line wherein there is a financial loss as there are huge discounts which have been
provided to the different customers. In such situations, the organization can introduce the various
schemes for loyal customers as this will improve their stability and gain the overall competitive
advantage.

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4. Recommendations
Therefore, from the above analysis, it can be analyzed that there are different aspects
which are required to be considered by the companies to improve the overall competitiveness.
Coaching is required provided to employees is one of the aspects which can be adopted
by the companies which will be appropriate for handling the different grievances of the
employees. It has been noticed that different employees have no such knowledge on the self-
check out the system that has affected the brand image of the organization.
The customization is necessary which will satisfy the needs of customers and not
standardization by creating different kinds of experiences and engaging the customers. The
survey related to the satisfaction among customers can be appropriate for analyzing the overall
behavior in managing the aspects and become more oriented towards providing services.

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References
Balusamy, B., Jha, P., Arasi, T., &Velu, M. (2017). Predictive Analysis of Digital Marketing
Using Big Data: Big Data for Predictive Analysis. In Handbook of Research on Advanced
Data Mining Techniques and Applications for Business Intelligence (pp. 259-283). IGI
Global.
Countdown.co.nz (2019) New Zealand's Leading Supermarket Brand (online) Retrieved from
https://www.countdown.co.nz/ [Accessed on 2 February 2019]
Crosby, L. (2017). How effective is social media marketing at driving brand loyalty. American
Marketing Association, Chicago, 4.
Dodson, I. (2016). The Art of Digital Marketing: The Definitive Guide to Creating Strategic,
Targeted, and Measurable Online Campaigns. John Wiley & Sons.
Domazet, I. S., &Neogradi, S. (2019). Digital Marketing and Service Industry: Digital Marketing
in the Banking Industry. In Managing Diversity, Innovation, and Infrastructure in Digital
Business (pp. 20-40). IGI Global.
Gibson, R., & Hanson, G. (2018). Higher engagement and higher returns: The benefits of trust in
e-mail marketing. Journal of Digital & Social Media Marketing, 6(3), 211-220.
News.com.au (2019) Woolworths to trial ‘scan and go’ technology that could do away with the
checkout (online) Retrieved from
https://www.news.com.au/finance/business/retail/woolworths-to-trial-scan-and-go-

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technology-that-could-do-away-with-the-checkout/news-story/
81a41a356f5402c4501a934e2df96dce [Accessed on 2 February 2019]
Paknsave (2019) Home (online) Retrieved from https://www.paknsave.co.nz/ [Accessed on 2
February 2019]
Paknsave.co.nz (2019) PAK’nSAVE launches Sticky Club rewards programme (online)
Retrieved from https://www.paknsave.co.nz/news-and-events/paknsave-launches-sticky-
club-rewards-programme/ [Accessed on 2 February 2019]
Sinha, M., Singh, H., Gaudrat, V. F., & Ferdinand, P. (2018). U.S. Patent Application No.
15/216,360.
Stephen, A. T. (2016). The role of digital and social media marketing in consumer behavior.
Current Opinion in Psychology, 10, 17-21.
Todor, R. D. (2016). Blending traditional and digital marketing. Bulletin of the Transilvania
University of Brasov. Economic Sciences. Series V, 9(1), 51.
Nzherald.co.nz (2019) Supermarket chain Countdown launches new online shopping app
(online) Retrieved from https://www.nzherald.co.nz/business/news/article.cfm?
c_id=3&objectid=1194092 [Accessed on 7 February 2019]
Countdown.co.nz (2019) Onecard Policies and Procedures (online) Retrieved from
https://www.countdown.co.nz/onecard/onecard-terms-and-conditions [Accessed on 7
February 2019]

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Countdown.co.nz (2019) Media Hub (online) Retrieved from
https://www.countdown.co.nz/about-us/countdown-media-hub [Accessed on 7 February
2019]