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Marketing Mix Strategies

1.0 Introduction

It is very important to market the products in a proper way, especially in retail industry. However, before implementing a strategy in order to market the goods, the organisation needs to engage in research, analysis and planning. Every organisation follows the fundamental four elements of marketing mix strategies and these four aspects are also known as the four Ps(price, product, promotion and place). In this followed report the marketing initiatives taken by the company and the total target market of the organisation are discussed.

 

2.0 Method

The research was done based on secondary data collected from company websites. Moreover, the manger also has enhanced the study by extracting useful information regarding marketing mix strategic plan from different authentic journals and articles. Particularly, for the theoretical part, the manger has followed variable and lawful books.

 

4.1 Marketing Initiative

4.1.1 Marketing Initiative

mix strategies and these four aspects are also known as the four Ps(price, product, promotion and place). In this followed report the marketing initiatives taken by the company and the total target market of the organisation are discussed.

 

2.0 Method

The research was done based on secondary data collected from company websites. Moreover, the manger also has enhanced the study by extracting useful information regarding marketing mix strategic plan from different authentic journals and articles. Particularly, for the theoretical part, the manger has followed variable and lawful books.

 

4.1 Marketing Initiative

4.1.1 Marketing Initiative

4.1.2 Marketing objective

The marketing objectives of Cole Australia are,

  • Improving direct marketing
  • Promoting the products and services effectively

 

Specific

In order to attract more customers and stay in the competition at the same time, the organisation is ensuring that the suitable message regarding the product is sent to the potential customers.

Measurable

The fulfilment of the objectives can be detected from the official website of the company by measuring the number of the page views, subscribers, and comments.

Actionable

The marketing objective of improving the direct communication with the customers is actionable objective as it is helping to market the products more.

Realistic

It is realistic to communicate with the consumers properly in order to increase the sales and also maintain the customer relationship.

Timetabled

Three months to six months.

 

Specific

The company is promoting their products and services effectively after understanding the needs of the consumers.

Measurable

The effectiveness of the objectives can be known from the official website of the organisation by following the numbers of subscribers, page views and the comments of the customers.

Actionable

Promoting the products and the services is an actionable objective. After arranging a strategic plan to promote the brand, the company is marketing their products accordingly

Realistic

It is realistic to promote the goods in order to increase the number of customers.

Timetabled

Six to eight months.

 

The above mentioned marketing objectives will help the company to achieve its goals by helping the current consumers to consume more and increasing frequency of usage. This will also help to strengthen the Positioning strategy of the company as result it will be very effective to meet with the consumer demand.

 

4.2 Target marketing and positioning

4.2.1 Target Marketing and positioning

 

Psychographic

Highly calorie consciousness

Medium calorie consciousness

Low-calorie consciousness

Behavioural

High drinker

 10%

 25%

 65%

Medium drinker

 12%

 35%

 53%

Low drinker

 15%

 30%

 55%

No drinker

 25%

 35%

 40%

 

https://lh3.googleusercontent.com/qD8Vgv5sxhggiL4lKuty84LZ-Y-1wpjARcNDLL2r-E61RFHvhLme1K3tQNSOZHS8yvgV6d_HwXXvYaFVQLvlKh7wl287r67Wa3WrMSbTwOUDEd0tz8N3s0kaJQaMLmq02UiajwS7

Figure 2: Sales of Coles and Woolworths

(Source: Huang et al. 2013, p.514)

4.2.2 Segmentation

The tools of behavioural and psychographic are used in this segmentation to determine the potential market for the disposal of new beer which has also low calorie. Behavioural and psychographic marketing tools have been used because t it helps to gather the psychographic data as well as behavioural data, the behavioural data helps the company to make much better strategies for the increasing profits it also helps to analyse the buying decisions of the customers along with the information on how the customers actually make consumptions.

It is very important to identify the needs and interests of the customers to sell more beers. In Australia, approximately 1.6% of the population was drinking low-calorie beer in 2006 (coles.com.au, 2018).  However, by the year of 2011, the interest on low carbohydrate beers was increased as 11% of adult Australians were purchasing it. The trend of the high demand for low-calorie beers has been stabilised since then. According to the analysis of "Roy Morgan Research", it has been known that now, low-calorie beer is purchased by 8.5% of Australian people.

 

4.2.3 Targeting

Depending on the behavioural segmentation the company will mainly focus on the customers those who are much shopaholic and will have various products in order to target customers of ll age group. For a Home Delivery Trial which would be Hi Tech Taxi Service like Uber which use lower cost uber structure will mainly target the people who are very busy in their lives and do not have much time to visit the super markets and customers are middle class financial background. Therefore, cost leadership strategy is implemented in the organization in order to deal with organizational development initiative. Furthermore, Suitable market segmentation process also helps to find out target customers.

The company will lay stress on the local people for targeting the market the company will focus on the following marketing tactics:

Undifferentiated Marketing:

Television commercials will be helpful to introduce the new marketing initiatives in the public forum it is also considered as the best example for the mass media advertising. This will be helpful to garb the attentions of the people during a commercial aired during prime time.

Billboards advertisement can also be helpful at it reaches the large group of people so it will be easy to connect numerous people through one platform. An example of a mass market billboard ad would include an image of a model enjoying a product that has been delivered past by the Uber cars or any other such product that has potential wide appeal across many demographics.

Differentiated marketing:

Practical differences

This w ill helps the company to provide the improved services and product much faster with very high market share which will appeal to the broad audiences. Coles will launch Uber delivery this will help the company to provide the quality goods to their customers at reasonable price short period of time.

Eye catching Luxury

Providing the faster delivery options with highly visible services and products will help the company to gain attentions of the public.

Concentrated marketing

This marketing strategy will be used by the company to focus on the chosen market segments that is the behavioural segments and psychographic segments. The company will market specifically for the residents in the specific town where the stores are located.

4.2.4 Brand Positioning

The most significant competitor of Coles Australia is Woolworths. According to market analyst Craig Woodford, Coles can increase the sales by simple management and cultural changes like advertising competitive pricing. In accordance to Khedher (2014, p.29), Woolworths, Coles is also following this strategy of reducing the price of the products in recent times. However, this plan has not been that successful as Woolworths. The organisation Coles Australia has never built a strong bond with their customers, unlike Woolworths. In the recent analysis, that from the trust perspective Woolworths (44%) is received as being ahead of Coles (25%).

Product quality of the company has given competitive advantages to the company The cost of the products will be relatively less and will be customer concentric The product that is offered by Coles is famous for its design reliability, durability, consistency, and reparability. As per the report it can be said that Consumer in Australia is low spenders.

- This association benefits enormously offering low cost items to the clients.

 - Lessening in the purchasing power of the providers

- Ability to offer items to the clients at low cost.

The products have Cost based advantage which means it mainly focus upon saving the consumer money by being the cheapest in the marketplace.

 

4.3 Marketing Mix Strategies and Tactics:

4.3.1 Product/Service

Pricing strategies are often referred to the method that the company used for their service and products. As Coles Australia is a retail market of supermarkets they also follow some unique and efficient pricing strategies in order to fulfill the needs and demands of their customers. In accordance to Huang & Sarigöllü (2014), the company offers fresh groceries, food, liquor, financial services, general merchandise and fuel. The brand offers various offerings which form the mix product strategy. The main business segments of the brand are: Coles online, Coles express Cole's liquor, Cole's supermarket, spirit hotels, financial services of Coles. The products that are sold in the supermarket of Coles are Bakery, Baby products, Deli, Dairy, Fresh vegetables & fruit, Coles Gift cards, Mobile, Liquor,  Heston, Kosher, Gluten free, Meat.

In accordance to Mintz & Currim (2013), the company also offers their own brands like BonSucro sugar and Grass-Fed Beef. The companies also have exclusive contracts with the company like shells and also offer various other fuels at Coles express easily available stores. The company’s liquor stores offer hundreds of the liquor brands along with having various local and imported wines. Financial services also offer insurance that includes car, home, landlord and life insurance as well as credit cards.

4.3.2 Pricing

The main objectives for pricing strategies are the survival along with enjoying maximum profit and market share. The company also wants to price skimming on the products that is changing the high initial price which the customers will pay. This is because when the demand of the first customer will be satisfied then the company lowers the price of the product in order to attract more customers and more price sensitive segments. This technique is mainly used by the company to recover the cost of development. The new products will be helpful to create price sensitivity of the customers as the customers can buy best quality products at cheap price. Coles is said to be the cost leaders that is the company offers low prices to their customers at the same time provides high-quality products. The company try hard to reduce the cost of the weekly basket of goods, on the other hand, the living cost in Australia conscious to remain high thus it is considered as the competitive advantage for the Coles. In accordance to Leonidou et al. (2013  from the last 6 years the company has been lowering the prices and thus the Australian households nearly save $640 by shopping at the Coles as per the annual report made of the company. The company invests in simplifying processes, store network, retaining as well as training best talents. As well refurbishing the stores in order to maintain the low prices as well as provide the good experience to their customers.

4.3.3 Promotion

Coles advertising, as well as marketing strategy, revolves around the lower price which is offered in their supermarkets. The company also uses the taglines like "why to pay more" in their supermarkets in order to add extra value for their customers. The company also conduct interactive campaign where they ask their customers about why did they are shopping at Coles and about the quality of the products or good they have purchased and their records their valuable responses. The company has the discount, promotional schemes and loyalty. As opined by Long et al. (2015, p.3431), its fly buys rewards and loyalty program is considered as one of the largest brands of Australia with approx 5.5millions of active users from Australia.

4.3.4 Distribution

The company has around eight distribution channel those are pack and pick, Cross Dock, Pick-Zero, Fresh Produce-Cross Dock, direct Store delivery and many more. The pack and pick distribution channel that mainly deals with grocery, fresh produce as well as frozen products, this channel also includes suppliers delivering into fulfilling the replenishment order of DC, then  DC products are stored or are picked in order to fulfill the store orders. Then Pick-Zero channel is associated with the products that need to deliver fast as well as includes supplier delivering total quantity which is needed in order to fulfill the order of the stores and the products that gets immediately dispatched to the outlets. No products are stored in DC for Pick-Zero channels.

Image result for distribution chain of coles

Figure 3: Distribution Channel of Coles

(Source: Maarit Jalkala & Keränen 2014, p.253)

4.3.5 Evaluation and Control

Metric

Method of Measure

Timing

Responsibility

Outcome A

Outcome B

 

 

 

 

 

 

Control Profitability

This will start with target profit plan

This plan will analyze the customer's profitability

Increase the company’s portability

Implement TQM

6 months

Managers are responsible for control profitability for the company

This will demand conditions to be same in the next year just like the current year

No changes will be done in the marketing strategy

 

 

 

 

 

 

Determine the corrective action

Change the product's design

Bring changes in manufacturing procedures

Withdraw the products from distributing chain

3 months

Distributors and the producers are responsible for determining the corrective action for the company

New products with new design

Will be helpful for the customers as it will provide information about the correct usage of the product

 

 

 

 

 

 

Analysis of market share

Comparing the sales of the company with the competitors

Company financial managers must also analyze the global market as well as the sakes within market segment

1 month

Financial managers are responsible for analyzing the market share 

The analysis of the market share will help to understand the company that how well they are reaching their customers

This will also help to analyze the competitors

 

4.3.6 Implementation and Schedule

 

PROCESS

Down Arrow: PROCESSImage result for gantt chart for marketing mix example

 

MONTHS

 

 
  Right Arrow: MONTHS

 

 

Table 1: Gantt chart

(Source: Created by Author)

5.0 Conclusion

This report helps to analyze the initiatives taken by the renowned company Cole Australia is discussed along with the business objectives. Initially, Coles Australia has taken marketing initiative of promoting indigenous products and services in low price aiming to attract more customers. However, the target market of a product and the segmentation of its market are also provided. According to the segmentation the target market is deducted and the reasons behind choosing that market are mentioned. Further form this report it can be concluded that the most significant competitor of Coles Australia is Woolworths. According to market analyst Craig Woodford, Coles can increase the sales by simple management and cultural changes like advertising competitive pricing. Whereas various marketing mix tactics and strategies to fulfil the market objectives are depicted. The company has around eight distribution channel those are pack and pick, Cross Dock, Pick-Zero, Fresh Produce-Cross Dock, direct Store delivery and many more. Coles has the advantage in competition from the various private brands. In this followed report, the marketing objectives of the company and diverse tactics and strategies to market their products, along with their target market are discussed.