Coles Supermarket Marketing Mix and Performance Analysis

This report provides an in-depth analysis of the marketing mix strategies employed by Coles Supermarket, focusing on the 8 Ps: product, price, distribution, promotion, processes, physical evidence, people, and partnerships. The report examines how Coles implements these strategies within the Australian retail market, providing insights into its product offerings, pricing strategies, distribution channels, and promotional campaigns. It also includes an analysis of Coles' competitors, particularly Woolworths and Aldi, and discusses contemporary issues affecting the company. Furthermore, the report evaluates the effectiveness of these strategies and offers recommendations for improvements, aiming to enhance Coles' market position and overall performance. The analysis draws upon data from Coles' annual reports and other relevant sources to provide a comprehensive understanding of the company's marketing approach.

Marketing and Management

Running Head: Marketing and Management 1
Executive Summary
The purpose of the report is to examine the effectiveness of the marketing mix strategies and its
impact on the performance of Coles. To understand the marketing mix strategies of the company
data has been collected from the annual reports of the company. The results of the evaluation
indicate that the strategies formed by the company are successful due to which the company is
able to face the competition in the market. It is concluded that the company should bring some
changes in the strategies of the company to lead in the market. It is recommended that Coles
should bring some changes in their strategies for achieving goals of the company.

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Table of Contents
1. Introduction..............................................................................................................................3
1.1 About Company.....................................................................................................................3
1.2 Product and location..............................................................................................................3
1.3 Customer................................................................................................................................3
2. Marketing mix..........................................................................................................................5
2.1 Product...................................................................................................................................5
2.2 Price.......................................................................................................................................6
2.3 Distribution/ place.................................................................................................................7
2.4 Promotion..............................................................................................................................7
2.5 Process...................................................................................................................................9
2.6 Physical evidence.................................................................................................................10
2.7 People..................................................................................................................................10
2.8 Partnership...........................................................................................................................11
3. Competitor’s analysis.............................................................................................................11
4. Contemporary issues..............................................................................................................12
5. Recommendations..................................................................................................................13
Conclusion.....................................................................................................................................17
References......................................................................................................................................18

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1. Introduction
The report outlines and describes the theories related to the marketing mix concept and
implementation of theories to a particular product of the company. 8p's of the marketing mix are
discussed which include product, price, promotion, distribution, partnerships, people, processes
and physical evidence. Further, the report includes the competition and the contemporary issues
faced by the marketers. Along with this recommendations are provided to the company related to
the marketing mix strategies.
1.1 About Company
The business segments of Coles Groups include Coles supermarket, Coles online, Coles express,
Coles financial services, Coles liquor. Cole’s supermarket is an Australian supermarket, retailer,
and the customer services chain with the headquarters in Melbourne, Australia. The chain of the
supermarket is among the second leading retailers after Woolworths (Coles, 2018).
1.2 Product and location
The product of the Coles group that has been selected is Cole’s supermarket in Australia. The
Cole's supermarket operates its business from approximately 720 stores in Australia with more
than 90,000 employees along with this the supermarket has a customer base of approximately 4.5
million people in Australia (Coles, 2018).
1.3 Customer
The desire target market of the Coles supermarket are people who prefer all the products under
one roof. This supermarket ensures that they are offering high-quality products and services
which help the company in satisfying the needs of the customer. Thus, the company mostly
targets those who people are looking for unique and special products with high quality in

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Australia. The image shows how the different customers with diverse demands are buying
products under one roof. Cole’s supermarket is the shoppers of all the economic levels in
Australia.
(Source: McDonald, 2012)

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2. Marketing mix
Marketing mix is the base of the foundation model in marketing. The marketing mix is defined
as the set of marketing tools that the firm uses to pursue its marketing objectives in the target.
The marketing mix strategies of the Coles Supermarket are discussed below.
2.1 Product
The product is an item that is produced or manufactured with the aim to satisfy the needs of the
customers. The product can be tangible and intangible which means it can be in the form of
goods or services. The products sold at the supermarket consist of baby products, dairy, deli, gift
cards, liquor, meat, fresh fruits and vegetables and many other products (Mba Skool, 2017). In
the supermarket, the company provides its own brands such as Graze Grass-Fed Beef and
BonSucro sugar.
The company offers seven levels of private or generic label brands in their supermarket. For
instance: Coles Smart Buy: - A budget label which covers the household essentials and groceries
and it is easily recognized by the customers because of its white and red accented packaging.

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The product mix of the Coles supermarket includes 3 levels that are core, actual product and
augmented product.
 The core product is defined as the supplying of goods and services in the supermarket.
 The actual product includes the freshness and good quality of the products that are
offered by the company to their loyal and potential customers. They keep the supermarket
stores neat and clean with organized shelf (Baker, 2014).
 The augmented product includes the extra customer’s benefits that are offered by the
company. The extra benefit includes a receipt for the free parking, apps, free magazines
and many other facilities.
Overall, the strategy of the company for the product is good as they are forming the alliances
with different companies so that they can provide the variety of brand in the same products to
their customers (Cox, 2011). The company also offer some of the products which are
manufactured by the company Coles. In the supermarket, the company ensures they are offering
the good quality products to their customers.
2.2 Price
The price of the product is the amount that the customer pays to buy the products. Price is one of
the important factors that affect the buyer of product or items. Cole’s supermarket makes use of
the low price strategy in the Australian market. This price strategy is formed with the motive to
attract a large number of customers that helps the company in generating profitability in the
market. Moreover, the price kept the Coles supermarket for the grocery item is 15% low
comparing it with the other Australian retail market (Pratap, 2017). The prices of the products
offered by the Coles supermarket are constant and there is no rise in the prices which helps the

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Coles to add more profit. The Coles supermarket believes in providing the volume discount at
the wholesale price. The evaluation of the strategy says that it is good for the company because
this is the way through which the company is able to make a profit (Booth & Coveney, 2015).
2.3 Distribution/ place
Distribution is an important part of the marketing mix that affects the Cole’s supermarket
business. Cole's make use of the intensive distribution strategy which helps the company to sell
its products in every store present in Australia. Coles has opened new stores to enhance the
accessibility and to grab more customers (Armstrong, Adam, Denize & Kotler, 2014). The
company has more than 720 stores in Australia where the company provide products. Apart from
this, the company distributes its products or service to retailers and wholesalers.
Above image shows the distribution channels that is followed by the Coles supermarket as the
company distribute its products through direct or indirect channels (Lovelock, 2011). Overall,
with the help of this strategy company is able to provide convince to the customers by proving
products at every store.
2.4 Promotion
Promotion helps the company to boost its brand recognition in the market along with the sales of
the company. Cole’s supermarket makes use of sales promotion, personal selling, advertisement

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and public relations to attract the customers towards its brand and stores. Not only this, the
company spends the amount to inform the investors and the customers about their policies,
programs, and strategies (Knox, 2015). The company makes use of the attractive taglines while
promoting the product through advertisement such as "Why pay more", "Cheap Groceries" and
"Extra value for you and me" that helps the company in attracting the potential customers.
Recently, Cole’s supermarket started an innovative campaign in which they asked many
customers why they like to do shopping at Coles and recorded all their responses. The customers
get loyalty, discount and the promotion scheme in the stores of the Coles. Flybuys loyalty and
reward program of Coles supermarket is one of the largest programs in Australia with more than
5.5 million Australian active users.
(Source: Etihad Airways, 2017)
This strategy of promotion is helping the company to form the strong customer base which is
essential for Cole's supermarket to become a leading company in Australia.

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2.5 Process
The system and processes of the organization affect the execution of the products and services of
Cole’s supermarket. The process of the business entities provides the breakdown to elaborate the
structure of the company.
(Source: Steeneken & Ackley, 2012)
The above graph shows the four core processes of the Cole’s supermarket. The image shows that
the subsystem layer is overlaid with a sequence of four core process which shows the life-cycle
of the Coles supermarket. The company seeks to enhance its processes in the supply chain to
provide better services to the customers. Streamlining of processes is used by Coles to cut the
cost which add value to its customers (Thampapillai, Tan, Bozzi & Matthew, 2015). Cole’s
supermarket brought changes in the buying process now the customer can buy the product using
online site. The company is working on the extended marketing mix elements and are focused
towards the process of supermarket.

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2.6 Physical evidence
It is significant factor in the current competitive market because competitors are making strong
physical evidence in the market which impact create an impact on the working of Coles. The
physical evidence of Cole’s is in the form of its stores available in Australia (Lyons, 2007). The
stores of Cole’s supermarket reflect good layout, ambiance and branding. The company took step
to renovate the stores of Australia that helps the company in attracting new customers. The
supermarket shelf are organised so that the customers don’t find it hard to find any particular
product (Khan, 2014). Overall, Physical evidence strategy is good which helps the company to
attract new customers.
2.7 People
Over here, people stand for the employees of the company who plays a vital role in marketing
and promoting the company. Currently, there are more than 90,000 employees who are working
with the Coles supermarket across Australia. These employees require appropriate knowledge,
skills, and aptitude so that they can deliver the quality services to their customers (Smutkupt,
Krairit & Esichaikul, 2010). The Coles supermarket provides training to their employees in order
to enhance the customer service. The employees of the company can proactive share their
opinions to provide satisfaction to the customers. The company has numerous programs for its
employees like The First Steps Program and Retail Leaders Program. Most of the employees of
the company are underpaid due to the cosy deal among the Coles supermarket and the national
retail union which indicates the negative aspect of the strategy. The company is concern about
their employees but Cole’s supermarket need to pay attention towards the strategies related to
this element.

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2.8 Partnership
This is a new marketing mix element which shows how partnership can help the company in
improving their performance (The Marketing Mix, 2017). Cole’s supermarket has partnership
with the Flybus that helps the company to enhance the brand reputation and position in Australia.
Flybus has the largest reward and loyalty program in the country. This partnership contributes in
the sales of the Cole’s supermarket which ultimately leads to the profit. The company make use
of profit in expanding its outlets. The partnership among Myer and Coles is growing and has
become the largest growth and acquisitions ever in Australian corporation. Myer operates a chain
of mid-market departmental stores in Australia on the other hand Coles operates in supermarket
(Fillis, 2011). Overall, strategy of the company is good but company should bring improvement
in their overall strategy.
3. Competitor’s analysis
Cole’s supermarket has many competitors in the Australian market and the main competitors are
Woolworth and Aldi. Woolworth and Aldi operate the business in the same industry in Australia.
Woolworth is acquiring the leading position in the supermarket business and Coles is acquiring
the second position after Woolworth along with this customer base of Woolworths is more than
Coles (Arup, Beaton-Wells & Paul-Taylor, 2017). Thus, both the companies are giving strong
competition to each other.
In the year 2008 and 2009, Woolworth Company continued to improve but Coles managed to
narrow the gap but in the year 2011, there was a gradual decline in the business operation of
Woolworths. Though, on the other hand, the business operations of the Coles improved (Knight,
2015). The issue behind this was the pricing strategy of Woolworths; the company provides the