The paper "Kogan Targets Online Grocery Market" is a wonderful example of a Marketing Case Study. In order for Kogan to remain sustainable and reliable in the industry, it mostly targets online shoppers from most cities in Australia (Tufvesson & Skelton, 2009. Kogan being a reputable online electronics seller has diversified and identified a market that hasn’ t been tapped and ventured into it (Kitney, 2015). Kogan now targets the grocery market and seeks to serve most parts of Melbourne before advancing to other cities in Australia. This target market is proofing efficient for Kogan as it has surpassed coles and Woolworths on orders being made due to their favorable discounts (Mullin & Cummins, 2008).
Kogan targets consumers between 26-38 years, this age set spends more on electronics and latest gadgets, unlike laggard consumers who are always slow to adopt change and new innovations hence the old hardly fancy technological products, for instance, smartphones. Value provided The company aims at delivering quality electronic devices to its customers and recently it tapped into the grocery industry. Kogan products are desirable to consumers due to the flexibility the company has on its online platform ( Kogan, 2013).
Customers browse the online store at their convenience and request for orders at their will. The company’ s strategy to make follow up increases customer confidence leading to a binding relationship. Competing with giants like eBay and Amazon, Kogan prides itself on its capitalization on the Australian market as well as partnerships with giant companies like Dell and Samsung to offer customers discounts on various products (Kitney, 2015). To make their products more attractive, last year the Kogan vented and patented Live Price a technology that allows customer discounts when they purchase the product at their initial production cycles hence increasing customer loyalty and satisfaction (Kogan, 2013). Positioning The company does not rely on its brand name.
However, it manufactures electronics and sells them at affordable prices as well as selling products from other companies. The company builds customer confidence by encouraging them to look for products online and make informed decisions. The company avails product information; hence clients can clearly view product model numbers, reviews from media and customers, and this allows the customers to make wise purchases (kogan. com 2016).
The availability of product information is instrumental in the growth of Kogan; it competes against brick and mortar retailers by harnessing the opportunities online platforms offer. Thus positioning itself in consumer minds as a reputable online store that lives up to its promises (Kent and Stone, 2007). The company shares product reviews with potential customers, the addition of customer reviews makes the website relevant (Kitney, 2015). Product range Kogan is the largest online retailer in Australia, offering in-demand and latest products at the best prices.
With a wide range of products, Kogan attracts over 12000 visitors on its website on a daily basis (kogan. com, 2016). Its products range from TVs, laptops, phones, tablets, kitchen appliances, security cameras, audio, and lighting. This range of products ensures Kogan’ s sustainability as every product is sold with a warranty and free aftersales service. Kogan has the latest products ranging from iPhone 6, Samsung s7, the latest MacBook and many more thus ensuring that customers’ needs and demands are met on a daily basis without hiccups (Schwerdt, 2015). Other Marketing Mix Kogan utilizes the marketing mix elements as they are essential in its sustainability and relevance in the online retail business.
In the last ten years, Kogan invested in perfecting its systems to ensure that online retailing becomes efficient and offer its products at affordable prices, the approach increased the company customers this translates to sales. The company’ s automated customer ordering by removing manual input by its staff and used sophisticated algorithms to rank suppliers on the price of products, the speed of delivery and their credit terms. Operating in an online space Kogan is accessible to consumers globally and with its transportation services customers are not concerned about the place element whenever they need Kogan’ s products thus, they avail all the goods that customers desire.
Additionally, it boasts a range of goods such as tablets, TVs, and phones, to cater to its market base. The company has a safe return policy and offers a 14-day refund for exclusive Kogan brands. If a customer cannot obtain satisfaction from the product, they are allowed to return it(Kent & Stone, 2007). Green marketing An outsourcing business model is disruptive and as a low-cost distribution platform, Kogan combines culture and data analytic systems with its management and team technological expertise to create a vertically integrated business model that has a leading private label capability and ability to sustain the company.
The aspect compliments the increasing demand third party brands that support cash generation and website traffic, a unique combination of Australian online retailers. The company harnesses technological efficiencies in delivering price leadership across products and services that have established high consumer demand. The range of goods is third-party stock units and 28000 private labels they include general merchandise and consumer electronic products developed using Kogan proprietary and leading data and analytics processes (Kogan, 2013). Having an online business is cheaper compared to paying for advertising and the cost associated with retail businesses.
The use of social media for marketing is cheaper and sustainably efficient. An optimized website will attract traffic once a customer reviews a product the probability of them buying it increases (Johnson, et al. , 2004). The amount of energy consumed when marketing online is less, and the feedback is prompt.
The amount of waste due to online business is less compared to wastages associated with retail businesses such as paper bags wastes(Ryan and Jones, 2012). Co-operate social responsibility Kogan has policies that ensure that its supply chain meets strong environmental and ethical standards, a commitment with suppliers to improve environmental and labor practices. The policies cover ban on child labor, labor rights, living wages, and working conditions; the policy is available online (Kogan, 2013). Kogan prides itself on being a price leader in the market with its best deals on most sought out products.
As the company strives to lower its prices further, it cannot compromise business undertakings. The strategy by Kogan is not building a great business, but doing business the right way. Decent working conditions, labor rights, and environmental compliance are important factors for Kogan. The company emphasizes on working with ethical suppliers and expects its suppliers to comply with its mandatory non-negotiable requirements; the company prefers vendors who respond to desirable elements (Ryan & Jones 2012). Kogan has initiatives to help charitable organizations in Australia and in most cases, they have contributed some of their manufactured products to developing countries to help them advance technologically.
Kogan spends almost $1000000 globally per year on sensitization and charitable events (kogan. com, 2016).
DAMON KITNEY , (2015). Kogan targets online grocery market. The Australian
Retrieved on 1 October 2016 from http://www.theaustralian.com.au/business/news/kogan-targets-online-grocery-market/news-story/088bf6963a4941f08f4ac5454ebd0b79
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