The paper "Coles Marketing Plan Basing on Coles Situational Analysis " is a perfect example of a marketing case study. From the situational analysis, it emerged that Coles is the second biggest retailer in Australia facing great competition from the likes of Woolworths and ALDI. Coles supplies to Australians general household requirements including groceries, electronics, snacks, laundry products among others. Coles has been able to include a high number of its own labels for goods stocked after slashing 30% of its product lines to include its own brands in 2008 to increase profitability.
Coles has relied on a strategy of competitive pricing and online sales to remain profitable in a highly concentrated market (Kruger, 2012). The supermarket has performed well in terms of profitability improving by 4% to $35780 million in 2013 (Wesfarmers, 2013), however, Coles needs to take care of tensions between it and its suppliers to ensure the long-term sustainability of its business model. All the same, Coles is a strong brand that has the capacity to expand internationally to boost profits. Marketing objectives for the next 12 months From the situational, I noticed that Coles did actually perform well considering the level of competition in the Australian retail industry.
According to Wesfarmer's annual financial results, Coles made a profit of $ 34, 117 million in the 2012 financial year and $ 35,780 million for 2013 (Wesfarmers, 2013). However, Coles needs to come up with strategies to grow its market share and most importantly retain the growth momentum that it has sustained over the years. The strategy shall be advised by the marketing objectives identified by the company. Some of the objectives I believe Coles should have as part of its marketing plan include: Increasing grocery market share to 36%- According to Deloitte's economics report, as of December 2012, Coles controlled 31% of the total grocery market share behind Woolworths which controls more than 40% of the market share (Deloitte Access Economics, 2012).
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Deloitte Access Economics. (2012). Analysis of the grocery industry- Coles supermarket Australia. Deloitte .
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Kruger. C., (2012 November 3). Coles, Woolies turn the screw on competitors. The Sydney Morning Herald. Retrieved from: HYPERLINK "http://www.smh.com.au/business/coles-woolies-turn-the-screw-on-competitors-20121102-28px6.html" http://www.smh.com.au/business/coles-woolies-turn-the-screw-on-competitors-20121102-28px6.html [Accessed: 4 November 2013]
Martin. P., (2013, June 18). Independent MPs join forces to take on Woolworths, Coles over high market share. Sydney Morning Herald. Retreived from: HYPERLINK "http://www.smh.com.au/federal-politics/political-news/independent-mps-join-forces-to-take-on-woolworths-coles-over-high-market-share-20130617-2oeg0.html" http://www.smh.com.au/federal-politics/political-news/independent-mps-join-forces-to-take-on-woolworths-coles-over-high-market-share-20130617-2oeg0.html [Accessed: 4 November 2013]
McCrann. T., (2013 March 04). Shoppers are winning in Coles and Woolworth supermarket war, but it won’t last’. Herald Sun. Retrieved fro: HYPERLINK "http://www.heraldsun.com.au/business/terry-mccrann/shoppers-are-winning-in-coles-and-woolworths-supermarket-war-but-it-wont-last/story-e6frfig6-1226589476967" http://www.heraldsun.com.au/business/terry-mccrann/shoppers-are-winning-in-coles-and-woolworths-supermarket-war-but-it-wont-last/story-e6frfig6-1226589476967 [Accessed: 4 November 2013]
Rolfe. J., (2013 August 13). Woolworth, Cole slash prices grocery discount war heats up. NEWS. Retrieved from: HYPERLINK "http://www.news.com.au/money/cost-of-living/woolworths-coles-slash-prices-as-grocery-discount-war-heats-up/story-fnagkbpv-1226696579372" http://www.news.com.au/money/cost-of-living/woolworths-coles-slash-prices-as-grocery-discount-war-heats-up/story-fnagkbpv-1226696579372 [Accessed: 4 November 2013]
Solomon, M., Marshall, G., & Stuart, E. (2011). Marketing: Real People, Real Choices. Prentice Hall.
Wesfarmers. (2013). Annual Report 2013. Wesfarmers. retreived from: http://media.corporate-ir.net/media_files/IROL/14/144042/wes/WESFARMERS%20ANNUAL%20REPORT%202013.pdf [Accessed: 4 November 2013]