1. Situation Analysis
Australia’s grocery giants go head-to-head before a panel of industry judges to determine which supermarket is winning the marketing war. Coles, is one of the giants in Australian supermarkets industry, which always compete price of products with its main competitor, Woolworth. In 2012, the market of supermarket had grown compare to 2011, while customers go to supermarket two to three time a week in average (Kruger, 2012). Coles and Woolworths hold 56% of the Australian grocery market. The concentration of competition has made the rivalry palpable. Meanwhile, Coles aims to continue a price war it kicked off in 2011, recently Coles is confirmed that it is continually close the gap with Woolworths. Other than the supermarket business, Coles also operates liquor, online, fuel and convenience store. In 2012, the food and liquor market shares in price of Coles and Woolworth are 30% and 42% relatively. Compared to 2011, Coles has an increased in sales growth and business growth in most of their business line in 2012. Richard Goyder, Chief executive of Coles, said Coles will continue to have a very strong focus on delivering value for its customers and persistently put effort on price, as long as the company can get more customers, and sell more product, get efficiencies in business and also through the supply chain (Courtney, 2013).
1.1 SWOT
Strengths Opportunities
• Domestic market
• Loyalty: Flybys
• Physical location
• Pricing power
• Ambassadors and sponsorship
• Exclusive products • Adding new services
• Prospect of supermarket is favorable
• Increasing globalization of food production and retail markets
• Income level at a constant increase
Weaknesses Threats
• Weak cost structure (high cost)
• E - commer...
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...r Devondale would feel pleased and happy for this deal since it enables them to supply more dairy products (Coles’ home brand and Devondale). This has the potential to lift the returns for farmers by maybe two or three cents per liter and reduce the volatility of farm gate prices.
In conclusion, Coles has to stop using coercive power on the suppliers and stop unethical or illegal activities, which contribute to build trust with its suppliers and beneficial for their long-term business. At the same time, it can increase the price of its home brand milk, by using strategic methods to attract more customers. Other than the fair trade label, Coles could state that they would donate 10 cents to charity if a customers purchase their home brand milk to boost their purchase pattern, as well as a good opportunity to develop its reputation.
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Devondale is an Australian company that specialized in selling wide span of dairy categories, such as, milk, spreads, and cheese products. This company is formed in 1950 with dairy farmers as their major suppliers. In 2013 – 2014, Devondale is contributing around 3.4 billion liters of milk or estimated around 37% of the Australian market, and generating $2.9 billion dollars as the revenue in excess.
From a financial and marketing standpoint, the effects have been catastrophic. In some areas, milk production has decreased by an average of two liters daily and calving index (efficiency at which new calves are produced) went down by an average of twenty days (Davies NP). Th...
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Burberry today is considered one of the leading luxury brands of the word. Here is a synopsis of rise of Burberry:
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The framework that will compare Publix Super Markets and its competitors is the Five Forces Model of Competition. The five aspects that will be discussed are the threat of new entrants into the market, the bargaining power of suppliers and buyers, threat of substitute products and rivalry among competing firms. Striving for the optimal position in each of these categories has given Publix Super Markets the reputation it has pride towards earning. It is important to every compa...
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Woolworths is one of the biggest retail group in Australia. Its motto is to provide fresh food to customer with in an affordable price. The company procures goods from the manufactures and also produces few products from their manufacturing plant. With its corporate office in Sydney it operates all the distribution channels, petrol sites and support centres. It has a trusted food, liquor and general merchandise brands.
customers convenient shopping that aims to fulfil all of their expectations and requirements under one roof. A major focus for Coles has been to tailor store product ranges and concepts to meet the needs of the local residents.
The food and staples retailing is an increasingly competitive industry. The market giants (competitors) are Coles (owned by Wesfarmers) which has 741 stores across Australia and plans to add 70 m...
At present they Coles are regularly checking 8000 product to ensure that they remain in the lowest possible price. At the same time, Wesfarmers must come out with a different segment of own individualistic product lines where they will focus on lowest profit margin. The segment can’t be big at first. But within 10 years, they can have a reasonably strong product line consisting of 1000-2000 products. Remembering the huge market capital they have, it is not a big problem. For any foreign competitors like Aldi, it is difficult to adopt local culture completely. Wesfarmers in that case have a big advantage. Supermarkets must contain products based on the region they operate and local mangers and employee must have some freedom regarding selection of these products. At the same time, they can look out for product of local entrepreneurs representing local culture and it can increase revenue. At the same time, that will be very effective as a patriotic campaign and the image developed by such step will help to further enhance its position as the no 1 conglomerate in