1. Situation Analysis
Australia’s grocery giants go head-to-head before a panel of industry judges to determine which supermarket is winning the marketing war. Coles, is one of the giants in Australian supermarkets industry, which always compete price of products with its main competitor, Woolworth. In 2012, the market of supermarket had grown compare to 2011, while customers go to supermarket two to three time a week in average (Kruger, 2012). Coles and Woolworths hold 56% of the Australian grocery market. The concentration of competition has made the rivalry palpable. Meanwhile, Coles aims to continue a price war it kicked off in 2011, recently Coles is confirmed that it is continually close the gap with Woolworths. Other than the supermarket business, Coles also operates liquor, online, fuel and convenience store. In 2012, the food and liquor market shares in price of Coles and Woolworth are 30% and 42% relatively. Compared to 2011, Coles has an increased in sales growth and business growth in most of their business line in 2012. Richard Goyder, Chief executive of Coles, said Coles will continue to have a very strong focus on delivering value for its customers and persistently put effort on price, as long as the company can get more customers, and sell more product, get efficiencies in business and also through the supply chain (Courtney, 2013).
1.1 SWOT
Strengths Opportunities
• Domestic market
• Loyalty: Flybys
• Physical location
• Pricing power
• Ambassadors and sponsorship
• Exclusive products • Adding new services
• Prospect of supermarket is favorable
• Increasing globalization of food production and retail markets
• Income level at a constant increase
Weaknesses Threats
• Weak cost structure (high cost)
• E - commer...
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...r Devondale would feel pleased and happy for this deal since it enables them to supply more dairy products (Coles’ home brand and Devondale). This has the potential to lift the returns for farmers by maybe two or three cents per liter and reduce the volatility of farm gate prices.
In conclusion, Coles has to stop using coercive power on the suppliers and stop unethical or illegal activities, which contribute to build trust with its suppliers and beneficial for their long-term business. At the same time, it can increase the price of its home brand milk, by using strategic methods to attract more customers. Other than the fair trade label, Coles could state that they would donate 10 cents to charity if a customers purchase their home brand milk to boost their purchase pattern, as well as a good opportunity to develop its reputation.
They anticipate competition between supermarket chains will be fierce this year as food prices continue to stay low. The Canadian grocers have been grappling with declining food prices, especially for meat, and Loblaw’s said “The notion of a shift into a steady inflationary environment is going to be offset by what we see as a continued level of competitive intensity”
Devondale is an Australian company that specialized in selling wide span of dairy categories, such as, milk, spreads, and cheese products. This company is formed in 1950 with dairy farmers as their major suppliers. In 2013 – 2014, Devondale is contributing around 3.4 billion liters of milk or estimated around 37% of the Australian market, and generating $2.9 billion dollars as the revenue in excess.
The framework that will compare Publix Super Markets and its competitors is the Five Forces Model of Competition. The five aspects that will be discussed are the threat of new entrants into the market, the bargaining power of suppliers and buyers, threat of substitute products and rivalry among competing firms. Striving for the optimal position in each of these categories has given Publix Super Markets the reputation it has pride towards earning. It is important to every compa...
From a financial and marketing standpoint, the effects have been catastrophic. In some areas, milk production has decreased by an average of two liters daily and calving index (efficiency at which new calves are produced) went down by an average of twenty days (Davies NP). Th...
In general, it is clear that the company’s main focus is profitability at the expense of consumers. These results are consistent with the initial assertion by the President of the company noted earlier.
Citicorp Case Analysis 1. What is the difference between a. and a What is the difference between primary and secondary capital? What is relevant to this case? Primary capital consists of common stock, perpetual preferred stock, surplus, undivided profits, mandatory convertible instruments (debt that must be convertible into stock or repaid with proceeds from the sale of equity), reserves from loan losses, and other capital reserves. These items are treated as permanent forms of capital because they are not subject to redemption or retirement.
Primark is a subsidiary company of the Associated British Foods (ABF). It was first opened in Dublin in June 1969, which under the name Penneys. Four more stores were launched within a year in Ireland afterward. Currently, Primark operates in over 270 stores in 9 different countries in Europe such as United Kingdom, Germany, Spain, etc. Primark capitalised on the fast-fashion tendency that began in the 1990s as well as the capability to produce garments cheaply in Asia where clothing values fell dramatically (Shawcross, 2014). It offers a diverse range of products which includes kids clothing, menswear, womenswear, accessories, home ware, beauty products and confectionary. According to TNS market research ranking, Primark ranks the second
However, because of its demographic it was losing a high customer base because of its prices. The text book Chapter 10 emphasized the importance of pricing and creating profit. The investor Marcus Lemonis showed the owners how to evaluate demand and the price sensitivity of their products. He introduce product that could be brought in with lower price points that would compete with their competitor and still crate the high-end prestige the company wish to create. Taking advantage of the income statues of the company’s customer with in their demographic. One major problem the company had was the price point of a bag of dog food was around $100 per bag that was a high price for the consumers within the area. By bring in a brand that had high quality and prestige at a price point of $20 allowed for a greater customer
Wal-Mart’s competitive environment is quite unique. Although Wal-Mart’s primary competition comes from general merchandise retailers, warehouse clubs and supermarket retailers also present competitive pressure. The discount retail industry is substantial in size and is constantly experiencing growth and change. The top competitors compete both nationally and internationally. There is extensive competition on pricing, location, store size, layout and environment, merchandise mix, technology and innovation, and overall image. The market is definitely characterized by economies of scale. Top retailers vertically integrate many functions, such as purchasing, manufacturing, advertising, and shipping. Large scale functions such as these give the top competitors a significant cost advantage over small-scale competition.
At present they Coles are regularly checking 8000 product to ensure that they remain in the lowest possible price. At the same time, Wesfarmers must come out with a different segment of own individualistic product lines where they will focus on lowest profit margin. The segment can’t be big at first. But within 10 years, they can have a reasonably strong product line consisting of 1000-2000 products. Remembering the huge market capital they have, it is not a big problem. For any foreign competitors like Aldi, it is difficult to adopt local culture completely. Wesfarmers in that case have a big advantage. Supermarkets must contain products based on the region they operate and local mangers and employee must have some freedom regarding selection of these products. At the same time, they can look out for product of local entrepreneurs representing local culture and it can increase revenue. At the same time, that will be very effective as a patriotic campaign and the image developed by such step will help to further enhance its position as the no 1 conglomerate in
The competitive pressures that Oliver’s Market must be prepared to deal with are the pressure associated with the market maneuvering and jockeying for buyer patronage that goes on among rival sellers in the industry and the pressure associated with the threat of new entrants into the market. They must be prepared to face with the rival stores, Trader Joe’s, Costco, and Whole Foods who had recently entered in the sales territory with brand new stores and so far Wal-Mart and Target also had announced plans to develop regional supercenter, that is, large –format discount center into their territory.
Burberry today is considered one of the leading luxury brands of the word. Here is a synopsis of rise of Burberry:
The food and staples retailing is an increasingly competitive industry. The market giants (competitors) are Coles (owned by Wesfarmers) which has 741 stores across Australia and plans to add 70 m...
Woolworths is one of the biggest retail group in Australia. Its motto is to provide fresh food to customer with in an affordable price. The company procures goods from the manufactures and also produces few products from their manufacturing plant. With its corporate office in Sydney it operates all the distribution channels, petrol sites and support centres. It has a trusted food, liquor and general merchandise brands.
customers convenient shopping that aims to fulfil all of their expectations and requirements under one roof. A major focus for Coles has been to tailor store product ranges and concepts to meet the needs of the local residents.