Coles Supermarket's Marketing Management and Planning - Case Study Example

Marketing management and planning Name of the Student: Name of the Instructor: Name of the course: Code of the course: Submission date: Marketing management and planning Introduction It is an apparent fact that Coles Supermarket in Australia operates in a highly competitive business environment. This is with core competition coming from Woolworths which commands almost 42 % of the market share in the country. Additionally, it is imperative to note that the retail industry in Australia has transformed with the advent of new technologies which have elevated the level of entry into this industry in the recent past. This has led scholars like Wardle and Baranovic (2009, p. 477) to perceive the supermarket retail sector in Australia as being distinct in the sense of being one of the most concentrated in the globe. This heightened level of competition can be perceived to have a direct contribution towards the decrease of the supermarkets which are owned by Coles in Australia which dropped from 742 in 2010 down to 741 in 2011 (Keith, 2012, p. 48). Nonetheless, despite this competitive environment which is detrimental to Coles’ operations, this retail giant is endowed with opportunities whereby it could increasingly adopt strategies like elevated supermarket investment, training of store teams and supermarket managers, improving its loyalty programs as well as transforming its IT system and supply chain among other strategies. This ought to be coupled with a robust marketing plan which is integral in the efforts to attain the desired competitive advantage in the market. The marketing plan is explored in the subsequent section. Marketing objectives There are two core marketing objectives which are central to the marketing plan of Coles. The leading objective is to elevate the existence of this company in the cyberspace, for instance, in the social media and in corporate websites. The second objective is to ensure that the promotional campaigns are meeting the dynamic consumer demands, mostly in relation with the increased consumer awareness on environmental issues. According to Laroche, Bergeron & Barbaro-Farleo (2001, p. 503), it is revealed that consumers who are progressively concerned about the welfare of the environment and have profound understanding of environmental matter regularly attempt to buy only eco-friendly goods. Target market(s) and positioning The target market(s) will comprise primarily of the younger generation aged between 20-40 years who have been revealed as having high consumption of internet based promotion. This is with previous empirical research findings on demographic profiling of internet users revealing that majority of the people who consume internet promotions belong to the young age categories (Anwar, 2012, p. 201). In regard to gender, women will form a key component of the target market. This is with recent studies having continuously revealed that more than 50% half of the persons doing e-shopping are now ladies and that females are spending more than men in online consumption. (Jayawardhena, et. al., 2007, p. 5). From a psychographic approach, this category of consumers has been discovered to depict increased value on contemporary trends and fashion. Therefore, they are expected to buy specific products based on their rating in the contemporary fashion rankings which is mostly fundamental at Coles where they mix clothing and grocery with their exclusive collection of accessories and clothing. On the other hand, the second category of target consumers which is chiefly founded on the second marketing objective is the middle class. This is founded on increased interest of this class of consumers on environmental issues and their purchasing behaviour is bound to be influenced by environmental considerations. This information is revealed by Mawdsley (2004, p. 81) who evaluated that current times have seen heightened attention amongst the affiliates of the middle class on issues of environment, and also the whole effect of the richer middle class in persuading matters on city environment. Additionally, members of this group who from a demographic point of view are from both genders and young in terms of age have been found out to exert considerable influence in molding the conditions of public debates on environmental issues in different countries. In regard to the psychographic characteristics, this category of consumers is bound to exhibit high lifestyle taste and preferences in terms of fashion. Moreover, they have high environmental awareness which is bound to impact on their purchasing behavior. Thus, they are bound to purchase particular products based on their niche in the contemporary lifestyle trends as well as their overall impact on the environment. In this case, the psychographic and behavioral segmentation approach will be centered on ensuring that the marketed products are linked to high lifestyle standards and at the same time adhering to environmental considerations. Based on the aforementioned target market(s), the products/services will be positioned to reflect a high fashion and lifestyle and at the same time portraying a high compliance with environmental standards. This will be central in capturing the target markets aforementioned in the previous section. Overall approach to an appropriate marketing mix According to Armstrong, Kotler, Wong, & Saunders (cited in Tanveer & Riaz, 2012, p. 44), marketing mix is perceived as a set of controllable tools of marketing which a particular firm puts into utility aimed at creating a desired response in the targeted market. These set of variables are basically referred to as the 4Ps of marketing and they constitute product, promotion, place and price. In regard to the product, the products/ services ought to reflect the basic needs of the consumers in terms of quality and price among other characteristics. Additionally, the products ought to reflect significant adherence to environmental standards if at all the second objective in this marketing plan is to be fulfilled. Additionally, the product ought to meet the fashion and lifestyle preferences of the target consumers. This will ensure that Coles will gradually regain its declining market share and attain sustainable competitive advantage in the market. In regard to promotion, this can be defined as the means of informing the consumers on what a certain good does and what it can do (Bhardwaj & Sharma, 2009, p. 464). In this case, the company ought to increasingly elevate its presence in the internet in order to conveniently reach out to the first target market explored in the preceding section. Additionally, the scholars like Bucklin (1966) have determined that the place tenet of the marketing mix is aimed at accomplishing the task of delivering specific products in the market at the right time, quantity, place and at a minimum cost. In this case, Coles ought to ensure that it positions its products in its various outlets in a manner which is attractive to the consumers and priced to meet the economic reality among different consumers, for instance, those in the middle class who constitute a key component of the target market. Lastly, the pricing strategy of this company ought to be revised to ensure that the needs of the target market in this marketing plan are met. This is best epitomized whereby the company ought to ensure that the price needs of the middle class are met, even if this means reducing the prices of some products. This is founded on the inference by Gronroos (1994, p. 11) who determined that a company which offers lower prices or better terms is bound to be a dangerous competitor. This is founded on the fact that in transaction marketing, there is often a high tendency of price sensitivity among the consumers. Links between marketing plan elements There is a very robust link between the marketing plan elements as mentioned above. This is founded on the fact that based on the two objectives mentioned, this has an influence on the target market(s) mentioned in terms preferences and tastes. Additionally, the target market(s) have an influence on the marketing mix which is assumed in this marketing plan in terms of price, products, promotion as well as place. Thus, it is apparent there is a robust link between the market elements of objectives, target market(s) as well as the marketing mix as expounded in the preceding section. Conclusion It is evident from the preceding analysis that this plan will be extensively fundamental to Coles Supermarket both in its short as well as long-term plans. This is founded on the fact that the identified target markets will be integral in the efforts to expand the market share of this company which will be instrumental in ensuring that it regains its favorable niche in the Australian market. Additionally, it is imperative to mention that this marketing plan will both be strategically and tactically utilized by Coles Supermarket. From a strategic perspective, it will be critical in identifying the specific needs of the target market(s) as well as informing the efforts to meet these needs. From a tactical point of view, this marketing plan will be instrumental in defining which resources which will be required to ensure that the preceding objectives are attained. This is in terms of the human resources, financial capital as well as the infrastructure which will be necessary for the attainment of the targeted outcomes. Thus, it is prudent to infer that it is both strategically and tactically useful to Coles Supermarket. References Anwar, S., 2012, ‘Young consumers’ attitude towards television advertisements in the internet age’, International Journal of Multidisciplinary Research, Vol.2, No. 4, pp. 201-208. Bucklin, LP., 1966, A Theory of Distribution Channel Structure, IBER Special Publications Berkeley, CA. Gronroos, C., 1994, ‘From Marketing Mix to Relationship Marketing: Towards a Paradigm Shift in Marketing’, Management Decision, Vol. 32 No. 2, pp. 4-20 Jayawardhena, C. et. al., 2007, ‘Consumers online: Intentions, orientations and segmentation’, International Journal of Retail and Distribution Management, Vol. 35, No. 6, pp. 515-599. Keith, S., 2012, ‘Coles, Woolworths, and the local’, The Australasian-Pacific Journal of Regional Food Studies, Vol. 1, No. 2, pp. 47-81. Laroche, M., Bergeron, J., & Babaro-Forleo, G., 2001, ‘Targeting consumers who are willing to pay more for environmentally friendly products’, Journal of Consumer Marketing, Vol. 18, No. 6, pp. 503-520. Mawdsley, E., 2004, ‘India’s Middle Classes and the Environment’, Development and Change, Vol. 35, No. 1, pp. 79–103. Riaz, W. & Tanveer, A., 2012, ‘Marketing Mix, Not Branding’, Asian Journal of Business and Management Sciences, Vol. 1 No. 11, pp. 43-52. Sharma AK. & Bhardwaj, S., 2009, ‘Marketing and Promotion of Library Services’, retrieved 07 December, 2012, < http://crl.du.ac.in/ical09/papers/index_files/ical- 79_73_172_2_RV.pdf> Wardle, J.& Baranovic, M., 2009, ‘Is lack of retail competition in the grocery sector a public health issue?’, Australia and New Zealand Journal of Public Health, Vol. 33, No. 5, pp. 477–581. Read More