The aim of the report is to develop and document a three-year marketing plan with a strategic plan for implementation in the upcoming year for the organizations as a comprehensive entity. The company that has been selected for the analysis is Coles for the marketing strategy and plan. The report includes details are essential for the marketing plan of Coles supermarkets such as objective, core marketing strategy, marketing mix strategies, tactical plan and budget along with the targets.
Coles is highly recognized Australian supermarket, retail and customer service chain with its headquarters in Melbourne and company is owned by parent company Wesfarmers. The company believes in providing the quality products with the delight customer service. The company came into existence in the year 1914 by young GJ Coles who initiated and opened the first store in Smith St, Collingwood, Victoria (Coles, 2018). The products that are offered by the company that comprises of the bakery, baby products, deli, fresh fruit and veg, Coles mobile, gift cards, liquor, meat and many others. Coles marketing plan is discussed along with this it will address some issues related to environmental factors, demand forecast, market research, customer requirement and implementation of marketing strategy (Coles, 2018).
This section of the report includes the analysis of the market with the help of different framework and tools. The market audit for the Coles supermarket has been discussed in the previous assessment which includes the analysis of macro and micro along with the BCG matrix and SWOT analysis.
The analysis related to the Micro Environment factors reflects that the stakeholders of the company influence the decisions of the Coles (Kotler, 2015). These stakeholders include employees, customers, government, investors, and competitors.
The company makes use of Porter’s 5 forces framework to evaluate the microenvironment factors. The Porter’s Five Force Model Analysis of Coles Supermarket is conducted which reflects that the company is facing a rise in the bargaining power of the buyers and in the competitive rivalry. There are many retailers who are present in the market due to which most of the buyers switch with no cost to grab the best deals. This shows switching of customers as an issue for the company due to which the company will not be able to accomplish its goals and objectives (Kotler, 2015). Woolworth and Aldi are highly recognized retailers in the market who are giving strong competition to Coles Supermarket. Considering the analysis, the company has to make some strategies through which the company will be able to face their competitors in the competitive market which is going to be included in the marketing plan of Coles (Coles, 2018). For the remaining factors company has found the low level of efficiency.
BCG matrix is designed in such a way that it will help the company in forming long-term strategic planning which is essential to support business considering the development opportunity by studying its portfolio of products to decide whether or where to make the investment. This matrix has been discussed which reflect the growth of the company (David, 2011). Cole supermarket has acquired the second position with approximately 33.2% market share but the aim of the company is still not fulfilled to be in the number position in the market. Along with this, from the past few years, it has been found that the customers of Coles are switching to Aldi. (Refer Appendix 1.1)
Considering the BCG matrix, it is identified that the company lies in the segment of Cash Cow Segment which shows that the company will face the lowest market growth possibility in the near future. Therefore, to sustain in the market with increasing market share the company needs to form a partnership with more of the local manufactures (Lowy and Hood, 2011).
The macro environment analysis includes the external factors that might affect the decision and working of the company (Hollensen, 2015). The companies make use of the PESTLE analysis framework or tool to evaluate and monitor the macro-environmental factors.
The Pestle Analysis of Coles Supermarket has been discussed in the previous report which reflects that the company might get affected due to which they have to bring changes in their policies and working. The company might face the major issue with the changes in the political rules and regulations (Keegan and Green, 2015). Though, this will make the Coles supermarket to think before making the investment in the business. Along with this, the legal obligations are barriers to the company’s growth and development. Cole’s supermarket is looking for the expansion of the business but before selecting the place for the expansion the company has to fulfill the legal responsibility. Apart from this, with the change in the preference of the society the sales of the company fluctuate which ultimately affects the revenue of the company (Van Tuyckom, 2011). Therefore, the Coles supermarket should make the plan in such a way so that they will be able to meet the requirement of customers.
Market size defines the number of potential customers of the products or services in the particular area. According to the market audit report, Coles acquire the second position after Woolworths in the market of Australia.
The image reflects the position of the company with the 33.2% of share in the market of Australia. The competition for Coles Supermarket is getting tough nowadays with the emergence of other retailers in the market such as Aldi and IGA. Thus, it is a high time when the company has to form some strategies to deal with the competitors.
SWOT analysis refers to as the strategic planning technique that is used by the company to identify the strength, weakness, opportunity, and threats of the company. The strength of the company is to offer good quality products at attractive prices which are possible with the effective supply chain management of the company (Kotabe and Helsen, 2014). Though, the company has lack of skilled employees which is essential for the company for the growth and development of the business. Moreover, the customers are aware of the fact that the company negotiates with the suppliers which exploit the image of the company in the market. The company has the vast opportunity of expanding the business across the nation and the company has the opportunity to bring innovation in the products and services (Coles, 2018). Over here, the company should grab the opportunity which is essential for the growth of the business. Further, the company has a threat from its competitors which include Woolworths, IGA, and Aldi which is an issue.
The marketing research is an effective activity that helps the company in acquiring the detailed information linked to the surroundings in which the company is performing its business operations. The company can conduct the research in two ways through primary data collection or secondary data collection (Witell, et.al, 2011). Cole’s supermarket managers understand the value research in business due to which they make sure that they are able to conduct the research. The manager can make use of secondary data which is available with the company as it includes the past sales, strategies and the facts and figures related to the inventory records and annual sales. Though, it is recommended to the company to conduct some research with the help of which the company will be able to analyze the environment more thoroughly. This will help the company in acquiring accurate and reliable details which can be used by the company in making strategies (Levy, Weitz, and Grewal, 2012). While conducting the research the company should ensure that they are not exploiting any legal obligations.
A consumer is a person who pays a certain amount to consume goods and services that are produced by the Coles Supermarket. The customer of the Coles includes the people who want all the things under one roof irrespective of family type, income level and geographical or demographical (Solomon, et.al, 2014). A change in the customer buying pattern is an issue faced by the company which occurred due to the presence of the cross-cultural population in the market of Australia. Consumers like to purchase the products where they find the availability of fashionable products with quality. This might make the customers switch from Coles to other supermarkets where they can get the best product.
A consumer of the product and services goes through various stages before making the purchase of the product and service and these stages are: –
Cole’s supermarket works with the motive to satisfy the needs of the customers due to which the company might face some business to business issues (Jang, Prasad and Ratchford, 2012). For instance; to meet the requirement of the customer for quality products the company might have to switch the suppliers or manager have to give the instruction to provide quality in raw materials. Apart from this, the company is facing the issue of high switching of customers from Coles to another supermarket. This issue leads to numerous different issues related to the cash, borrowing and resource management.
Conclusion and key issues/assumptions emanating from audit
It can be concluded from the understanding of market audit and research proposal that the company is a highly recognized business in the market of Australia. Though, the business is facing some of the issues which affect the strategies and working with the company. Some of the issues are strong competition from the Woolworths, Aldi, IGA, and others, switching of customers, changes in political rules and regulations, and many others. Furthermore, it shows the research requirement for preparing the business plan for the company (Dontigney, 2018). Though, while conducting the research the company might face legal issues which the company should take care. The analysis also reflects the customers of Cole’s supermarket and their buying preference which is nowadays becoming an issue for the company.
Cole’s supermarket has determined some short term as well as a long-term objective for the growth and betterment of the company. These objectives play a vital role for the company in accomplishing the mission and vision of the company (Baker, 2014).
Short-term objective: – The short-term objective of the company is to enhance the customer base and traffic of company as this will help the company is making customer loyalty towards the brand which will reduce the switching of customers from Coles to other retailers (Coles, 2018). The company should consider the online marketing ideas and sales strategy which is essential to compete with the rivals.
Long-term objective: – The long-term objective plays a vital role in the company as this is the only way through which the Coles Supermarket can achieve the growth and success in the competitive market (Coles, 2018). The company has targeted to increase the sales and revenue along with this the company can improve the business ratings and competitive advantage in the market of Australia. Further, the aim of the company is to resolve the issues faced by them.
Core marketing strategy of the company includes the strategies associated with the segmentation and targeting of the Coles supermarket.
Segmentation is a process that divides the broad consumer or business market. This process helps the company in identifying the different segment to which the company can target. Coles supermarket segment the customers on the bases of the demographic and psychographic (Kumar, et.al, 2012).
Target market refers to a particular group or segment on which the company is aiming to offer the products and services (Hassan and Craft, 2012). Cole’s supermarket makes use of differentiated segmentation strategy in which the company targets all the segments. The primary target of the company is middle-class people and the premium household of Australia irrespective of the age.
Moreover, the company also targets the people who are bachelors or belongs to working class. These people don’t have plenty of time to visit each and every retailer to check the price and product due to which they visit the supermarkets where they can easily get all the products under one roof. Therefore, Cole’s supermarket targets these people who believe in buying the products under the one roof.
The marketing mix talks about to as a set of manageable, tactical marketing tools that a business makes use to fulfill the desire of their target market. This tool includes the strategies related to product, price, place, promotion. In the competitive market, it is vital for the coles to form the plans that help the company in achieving the growth (Lovelock, 2011). These strategies are formed considering the issues faced by the company due to the environment.
Product refers to as an item that stratify the needs of the customers and for which the customer pay value to the company. It can be in the form of tangible and intangible goods and services. The products that are offered by the Coles in their supermarket include a bakery, deli, fresh fruit and veg, Coles mobile, gift cards, baby products, liquor, meat and many others (Coles, 2018). These products are offered by the company of different brands so that the customer can choose the best according to their requirement (Luca and Suggs, 2010). Moreover, the company is offering the products that are produced by the company under its own brand such as Coles Smart Buy. This product strategy is one of the unique strategies of the company.
It is suggested to the company to offer home delivery service of the products for the certainly fixed km as this is one of the effective ways through which the business can enhance the satisfaction and sales of the product. This is tactical for the company to achieve the objective of maximizing the sales of the product (Refer Appendix 1.2).
Prices refer to as the amount that a consumer pays for the particular product. Cole’s supermarket believes in low-cost price strategy for the customers in the market of Australia. This strategy will support the company in grabbing the attraction of the customers. Apart from this, the company doesn’t bring any fluctuations in the prices of product which makes the customer stick to a single brand. Thus, the company is able to create the customer loyalty which is one of the issues faced by the company. Cole’s supermarket provides low prices for the products and services which is a beneficial aspect for the company but on the other hand, the company will not be able to generate more profit. It is suggested to the company to keep the flexible price through which the company will be able to generate profit.
The place is one of the significant elements of the marketing mix. Coles Supermarket objective is to increase the number of stores in the market so that customer can easily access. This objective is contributing to the long-term objective of the company. Currently, the company has more than 720 stores in Australia. To accomplish the objective of the company the company makes use of the intensive distribution strategy with the help of which the company can offer its products on every store (Mintz and Currim, 2013). Though, to achieve the objective the company should use tactics to open its maximum outlets on the prime locations in Australia.
This element of the marketing mix is most important for the company as with the help of this strategy the Coles supermarket will be able to enhance the sales. This is the fact the company is highly recognized in the market of Australia due to which it doesn’t need brand recognition but it needs brand position in the market. To achieve the objective the company introduced Flybuys loyalty and reward program with 5.5 million active users.
Moreover, the company makes use of advertisement, personal selling and many other tools to promote the product. These tools help the company in making the strong customer base in the market of Australia where the company face the strong competition from other retailers. Other competitors of the company also make innovative promotion strategies with the help of which they are promoting products and attracting the customers.
It is suggested to the company to make use of the online media effectively with the help of which the company will be able to accomplish the objective.
The tactical plan refers to as the steps or tactics that are essential to accomplishing the goals defines in the strategic plan (McDonald and Wilson, 2016). The tactical plan is formed by the company for the shorter period of time. The below given is the one-year tactical plan of the Coles Supermarket: –
|
Strategic Goal |
Description |
Tactics to Achieve Strategy |
|
Increase in the market position |
· Sales · Revenue |
Increase in sales by forming new tie-ups with maximum suppliers. |
|
Strong customer base |
· Loyalty of customers · Attracting the customers |
Offering quality products at low prices. |
|
Online marketing ideas to enhance sales |
Strong online presence |
Offering customer the online order of products until 5km. |
A budget is an estimation of the expenses and revenue for a certain or particular period of time. These budgets are based on the target set by the company (DRURY, 2013). The targets and budget related to the Coles supermarket is given below: –
|
Coles Supermarket |
||
|
Targets |
Category |
Amount |
|
Increase in the tie-ups with suppliers |
Product |
|
|
More investment for product extension |
$2,00,000.00 |
|
|
Total |
$2,00,000.00 |
|
|
Increase in number of outlets |
Place |
|
|
Lease of outlet |
$50,000.00 |
|
|
Maintenance of outlet |
$5,000.00 |
|
|
Total |
$55,000.00 |
|
|
1. Direct Marketing |
||
|
Increase in online presence |
Online media |
|
|
|
$1,000.00 |
|
|
|
$5,000.00 |
|
|
E-mail Marketing |
$800.00 |
|
|
Total Amount of Online Media through Direct marketing |
$6,800.00 |
|
|
2. Advertisement |
||
|
Communication of offers through advertisement |
Print Media |
|
|
Newspaper |
$2,000.00 |
|
|
Online advertisement |
$1,500.00 |
|
|
Total amount of Print Media through Advertisement |
$3,500.00 |
|
|
3. Personal selling |
||
|
Conducting Seminar and training |
$5,000.00 |
|
|
Funding |
$10,000.00 |
|
|
Total amount of Personal selling |
$15,000.00 |
|
|
Total amount |
$2,80,300.00 |
The monitoring and controlling process oversee all tasks and metrics that are essential to ensure that the approved and authorized project is within scope, time, and on a budget so that the project proceeds with the fewer risk (Berard, et.al, 2013). This is the continuous process that is performed by the company throughout the project. The process of monitoring and controlling include the comparison of the actual performance with the planned performance so that the company can take the correct steps to yield the desired outcome when important different takes place. Coles Supermarket conducts the monitoring of the strategy and tactics formed by the company along with this the managers ensure that they are able to control the activities performed by the company.
It is recommended to the Coles supermarket to form the tie-ups with the other suppliers who can offer quality products so that the company can establish the strong customer base in the market. This will not only increase the sales and revenue but will also increase the market share of the company. Moreover, it is recommended to hire the skilled labors so that they can enhance the productivity and outcome of the company. Though, for this, the company has to pay high wages to their employees.
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