The paper “ Coles Supermarkets Marketing Plan - Target Market and Positioning, Segmentation Approaches, Overall Approach to an Appropriate Marketing Mix" is a perfect example of a case study on marketing. A review of Coles Supermarket’ s financial report shows the retail store has experienced a steady growth rate, enabling it to gain a large market share of the Australian retail market (Condon, 2013). At present, the company owns 26 percent of the market share, which the group attributed to its major strengths and ability to capitalize on opportunities such as strategic pricing, a large customer base, and customer loyalty.
In all, we placed emphasis on how the company has been able to maintain its profitability amid intense competition in the Australian retail market in an effort to propose an appropriate marketing plan. The company’ s recent full-year report shows it made a profit of $28.1 billion from 741 supermarkets, representing an average of 5.5 percent year-on-year profit increase. It is in my view imperative that Coles adopt strategic pricing and product differential to increase its profitability and to gain market share.
The company faces stiff competition from Woolworths, which controls 54 percent of the market share (Ghodeswar, 2008). Marketing Objectives In my view, Coles objectives over the next 12 months are straightforward and are intended to ensure that the retailer runs in a profitable and ethical manner, strengthens relationships with customer, investors, and suppliers, drive sales and promotes the supermarket brand. In sum, the retail store should seek to: In the financial objective, to achieve a forecasted profit over and the 5.5 percent incremental annual profit. Achieve profitability levels that are satisfactory for reinvestment and that can ensure equitable returns to investors and shareholders. To achieve market dominance by giving the highest premium services. Provide personalized service to customers through e-retailing Strengthen relationships with its investors. Strengthen the retail store’ s position in the retail market industry. Provide customer satisfaction within each of its 741 chain stores with regards to high standards, better facilities and customized product sales at a fair price. Ensure management of the hotel through human resource policies that encourage and offer incentives to the individuals and team achievements through training and personal development.
Create a working environment where the staff can experience a real sense of job involvement. Market retail stores through the use of effective marketing strategies. Incorporate efficient commercial practice and ethical standards in managing customers, the suppliers, and its investors. Comply with Australian statutory legislation and the local authorities. Target Market and Positioning Market Segmentation Best PracticesIn segmenting the market, I had to go through two processes.
First, I had to name the broad product markets. Second, I had to segment the market to identify the target market. During this process, I realized that segmentation can fail when only one or two demographic characterized are used to segment a mass market, such as one that Coles is engaged in.
This is since customer needs and buyer behavior cannot fit appropriately into one or two demographic characteristics (Fuller, Hanlan and Wilde, 2005). The variable for segmenting the market was selected based on their usefulness in forecasting customer response and sales since an effective target marketing is aimed at appealing to the common features that individuals share within a specific segment (Baker, 1998).