Coles Supermarkets Australia Pty Ltd - Packaging - Case Study Example

RUNNING HEAD Name: Institution affiliated: Date of submission: Tutor: Part 1 One of the important reasons for packaging is the extension of the product life of the products when they are in circulation within the supermarkets before they can be sold to the customers. The advanced packaging has incorporated information about the time and temperature that the product should be kept in to ensure that they stay in the shelves for a longer period without getting spoilt. The packaging has also been advanced to provide information to the consumers about the products. These advancement has grown from basic information been provided in the product in form of papers to new advancements that include the microchips that are provided to offer information on the product. In this way, the product packaging has enhanced the supply chain management for the product. Finally, the packaging helps to reduce instances of spoilage and spillage. Woolworths Woolworths is the second largest organization selling retail products in the whole of Australia. The organization has tried to enhance customer service and satisfaction by providing free delivery of the products of the organization using tracks to the doorstep of the consumers. In as much as the system has improved the brand name of the organization, other companies have also taken to provide the same services to the consumers. As a result, the organization has continued to face stiff competition. As a result, the organization has been forced to shift gears to consider the change of the packaging of the organizational products. Woolworths has been in operations since 1924. The organization has enjoyed major growth in the market having developed a chain of supermarkets owned by Woolworths limited. According to the 2015 financial reports, the organization had already developed about 961 stores operating in different regions around the country. Revenues collected by the organization in the year ended 2015 were about 42.13 billion AUD. However, the directors of the organization have announced a change in the branding and packaging of the organization. This was as a result of increased competition that the organization faced from other organizations in the same industry such as Wesfarmers, IGA and Kmart supermarkets. The organization has announced that the change will affect all of their products which comprise of about 960 different products. The famous black and red label of the package of the products will be the main change that will be effected on the product. Although the organization has been reporting positive returns, they have been diminishing over the years as the consumers shift their royalty to the competitor companies. The rebranding in this case is used to improve the marketability of the different products to the consumers. The organization management announced the change of the packaging from the red and white brand for their products. This form of packaging has been the most notable way that the organization differentiates its products from those of the competitors. Coles Supermarkets Australia Pty Ltd The grocery industry is one of the most competitive industries in Australia. However, with the consideration of the high competition that the organizations in the industry faces, the organization has continue to enjoy major growth trends and revenue growth of more than 2.4 billion AUD between 2015 and 2016. The industry has also enjoyed major technological advancements which have been a proper platform for the industry to enjoy annual growth rates of up to 15.3%. Coles’ supermarket Australia Pty Ltd is one of the 481 businesses that are currently operating in Australia. Coles Supermarkets Australia Pty Ltd is also an Australian chain of supermarkets operating in Australia that was started to change the packaging of the products and reduce the competition that they face from their competitors such as Aldi, Big W and liquor land. The organization was started as a parallel chain to Wesfarmers in order to provide the same but differentiated products in the market. Convenience marketing is another factor that has forced the organization to change the packaging of their different products. By this, the organization has put into consideration the demands of the consumers such as the freshness requirement of the products in packaging, the tamper proof evidence and the labelling of the products. By freshness, the organization is expected to not only to prove that the products are not only convenient according to the demands of the consumers, but also fresh. The production of the products in modified environments and atmospheres helps to improve the product life of the products as well as maintain its freshness [Cur051]. Part 2 Packaging has been for long considered an important part of the production and marketing process for the organizations. It has been a major trend in today’s lifestyle having gained much popularity in the second half of the 20th century. The main important of packaging in today’s lifestyle is to protect the product, preserve, contain and provides the consumer with information about the products that they are about to purchase. The type of information provided by the product includes information on such matters as the description of the product, its date of manufacture and expiry and how to use the product. The main considerations that lead organizations to change their packaging include such factors as key drivers and influences of the packaging materials, key economic indicators, structure of the industry and the environmental factors. Some of the key drivers to the marketing requirements of the organization have been the electronic business processes, the improvements in the supply chain management and marketability. The products and services provided by Woolworths have been facing major challenges in competition from other companies in the same industry. The packaging of the products helps to sell the products. Some of trends that have been identified to influence the changes in the market such as the lifestyle changes of the consumers, competitive pressure and the greater need for product differentiation have placed a major need for the sales appeal to be improved as well as the retail packaging. Part 3 The ‘So where the bloody hell are you’ was an advertising campaign that was launched in Australia to create awareness in tourism industry. However, in as much as it was heavily funded, the campaign failed for a number of reasons. The first was that the campaign created controversies in March of 2007 when I was banned in the United Kingdom by Broadcast Advertising Clearance Centre since they were not for the term ‘bloody’ as used in the advert. Furthermore, in the same year and month, the Advertising Standards Authority in the same country also ordered the removal of all the roadside billboards that were bearing the slogan that was provided by the campaign. Finally, the campaign was also not well adopted in most of the countries in the America. IN Canada, the campaign also received a ban since the opining line of the campaign provided for the unbranded alcohol consumption meant that the campaign was supporting this consumption of alcohol while developing their ideas. Similarly, in Canada, the term ‘Hell’ also brought in mixed reaction and some argued that the word was used as an expletive term in advertisement. Part 4 Trade shows are usually an important way through which organizations take to advertise their products in the market. In this way, new exporters who wish to develop new products in the new markets may use the system to create awareness to the consumers of the products. Similarly, they are able to interact directly with the consumers during the trade shows and they are able to understand the preferences of the consumers. As such, then they can develop products that meet the changing demand of the consumers. This allows the organization to enjoy growth in the new market as the products are increasingly adopted in the new organization. Part 5 The direct distribution of products in the market ensures that the products are delivered clean and safely to the consumers. In this way, the retailers and distributors find it easier to handle, manage and distribute the products to the consumers. Similarly, the establishment of distribution channels directly in Australia and New Zealand allows the organizations to directly interact with the consumers of the countries, understand their need and preferences and as a result, develop products according to their demands. In as much as the direct distribution may be advantageous, there are some limitations that the organizations are likely to face. Such include the lack of proper understanding of the market in which the organization wishes to start the direct distribution may limit their performance and other organization may take this to their advantage to ensure that the performance of such as organization remains limited. Part 6 The inclusion of new retailers in the market has provided the organization with an opportunity to increase their activities and expand to other markets to help increase their market share. Having single operations zone for the organization greatly undermines the activities of the organization. In this way, the organizations fail to get their target market. However, the organizations should take to strategically place new retailers in different regions to offer the products of the organization to the different customers. However, in as much as the organization have taken to adopt such strategic plans, the organization still faces stiff competition from other organization that have also undertaken the same strategy. The product differentiation has been the main marketing strategy that has been developed by the different organizations may be used as potential opportunities to improve the supply of products in the market. Other issues that should be considered include the pricing and distribution strategies that are adopted by the organization. Given the consumers choices that they have, the prices should be set as low as possible in order to lure more consumers to purchase such products. Similarly, the distribution channels should be improved to ensure that the consumers in the different regions are reached by the products that are sold in the market. REFERENCES Cur051: , (Curtis, et al., 2005), Read More