Our situations start out with problem recognition. Problem recognition is the perceived difference between an actual and ideal state. In this case, it is a necessity to buy groceries. No one wants to spend their money, but you have to eat to stay alive. The ideal state is the way consumers want things to be. At Coles, Australians ideal state would be that every item on their grocery list would be at Coles, and would be on a discount. In reality, the actual state or the way things really are, is that consumers will have to make another brand work when they can’t find exactly what they want, and that nothing is on sale. After consumers recognize that there is a problem, then they go into an external search or internal search. External search …show more content…
Going through these searches help consumers make their decisions. In this case, it would help Australian consumers make decisions on what to buy at Coles. As listed above, information search is where consumers search for external or internal data that will help them make a selection. For Coles grocery store, that is consumers decide what to buy based on what they know from their memory or outside sources. Recalling of brands, attributes, evaluations, and experiences can be a big factor in how quickly consumers can make decisions. Recall is the ability to retrieve information about a stimulus from memory without being reexposed to the stimulus again. For example, if consumers recall information, they would remember what products they would prefer over others. When it comes to grocery shopping, if a consumer recalls information that they had a good experience with the Coles brand of white toast bread for $1, then the consumer would not choose the more expensive brand of Tip Top white sandwich bread for $3. Same goes with the other way around, if consumers had a better experience with the $3 loaf of bread and can recall that information, than next time they were …show more content…
This is where our mind will compare the alternatives. In Coles, this could be deciding between two peanut butter brands in Australia, for example, a popular brand Bega for $6.27 or the off brand Coles version for $3.50. Consumers looking for peanut butter in Coles would have to evaluate their options and make a selection depending on if the higher price is worth it. For consumers in this situation, their selection could become quicker if they know the brand image and trust it. Brand image is where a specific type of schema captures what a brand stands for and how favorably it is viewed. So, if a consumer knew the brand image of the Bega brand of peanut butter and they favored the brand, they would most likely pick that brand over the Coles peanut butter. This is because they already know they like and trust the Bega brand. On the other hand, price could play a big role in whether they pick one brand over the other. Even if a consumer knows and trusts a certain brand, they could go for the cheaper option just to be able to save money. Anchoring and adjustment which is, starting with an initial evaluation and adjusting it with additional information, can also play a role in consumer decisions. For example, if consumers believe the Bega peanut butter brand is better they can anchor and adjust that belief to become better or worse. To better the belief, they would use confirmation bias to confirm their
1. Introduction The intended purpose of this report is to outline the nature of the Australian retail market, specifically the retail food sector. This report will then discuss the role of market segmentation and how it has resulted in the emergence of new retail channels available to consumers. The emergence of ALDI as a new retail channel will be the focal point of the report along with a brief overview of other new-coming organizations such as Costco. Through the use of current journal articles, books, internet sites and government publications, this report will outline the benefits of the new retail channels available to consumers, especially in regards to saving on common expenses. This report will also discuss the possible room for
An example is when a consumer decides to visit a store; some of the factors a consumer might be looking for are the store’s opening hours, car park and most importantly its location. Taking Melbourne’s CBD area into consideration, we can notice that there are
In this article Michael Baker discusses the livelihood of small retailers in a market subjugated by the financially dominant oligopolies, Woolworths and Coles. While the small independent retailers in direct competition with Woolworths and Coles provide some competitive respite for consumers, as they encourage competitive pricing, albeit predatory pricing, it is clear that Woolworths and Coles control the supermarket industry in Australia, in the formation of a duopoly. It is evident that Woolworths and Coles engage in predatory pricing in an attempt to eliminate independent retailers from the market. This article discusses recent efforts made by the Australian government and the Australian Competition
In the case of Stephanie Riesling, you can see the consumer go through the five steps of the consumer decision process as she goes through the journey of purchasing a new car. Stephanie is a senior about to graduate college, in the consumer decision making process, she is about to embark in a life stage change. This leads her to recognize her need for a new car. The next phase of the process was information search, she was not sure what car she wanted to purchase, but knew she needed something that was nice looking, in her price range and was known to last a long time. She narrowed her car search down to a consideration set of four vehicles. She did a lot of external searches for information, using non-marketing sources. She used personal sources from acquaintances and independent sources like consumer reports. She has a high involvement in the determination of information search, since this was an expensive purchase for herself. The consumer final reaches the third step of the process and had the it narrowed down to one car brand, but had alternative things to consider, like features on the car and the color of the car. She had an evaluation criterion that she set of things that must be on the car and the rest was negotiable depending on cost. Based on the case it sounds like the consumer
Cole is an Australian supermarket with large influence and market share in the country. In addition, the company contributes significantly to the nation’s economy. In essence, the company has acquired more than 30% of the market share of the supermarket industry in this nation. Specifically, the company’sproduct line consists of daily products, grocery, meat, deli, fresh produce, bake house, cigarettes, liquor, apparel, general merchandize and over head products. Notably Cole has a culture of low price as its marketing strategy of attracting and retaining customers.
Founded back in 1914 in Victoria by George James Coles, Coles Supermarkets Australia Pty Ltd has undoubtedly developed and expanded over the century since its humble beginning. Starting out its early days as an average retail store selling groceries, Coles has now successfully become a well-established brand as well as having its name known to the majority of households throughout the nation. Looking at the rapid progress of the company, Wesfarmers, one of Australia’s biggest public company announced its purchase of Coles for 22 billion dollars and officially took control of the entire group’s retail businesses on the 23rd of November 2007, making it the largest successful take-over in the Australian corporate history yet (Peters, 2007). However, in terms of market share in the industry, Coles comes only in second place with 37 per cent of the $83.7 billion grocery sector losing out to Woolworths at number one with 43 per cent based on the analysis released (Morgan, 2014).
4. Promotion: - Coles promote their products by providing a good quality products and services to their customers. Moreover Coles advertise their best quality products through television and radio. Also it promotes their new products into the shelves of the supermarket stores. It also gives all the details of the product on its website.
Memory is a property of the human mind. It describes the ability to retain information. There are different types of classifications for memory based on duration, nature and retrieval of items.
The article ‘Coles, Woolworths, Aldi price war gets personal with cut-orice tissues and toothpaste’ discuss how they through the price war to win more consumers, so as to occupy a large market share. To start with, Coles and Woolworths both cut the price of their top selling items, such as rice, tissues and toothpaste, as well as the grocery brands, Kleenex, Sunrice and Colgate (Catie, 2016). For these top selling items, the most common logic which is customers are welling to see it in a conspicuous (Sharp, 2013, p.290). People will buy these items not just one time or buy it in another supermarket. It is easily to see then cut down the price, this action will prevent the customers from going to their competitors.
Brand competitors and the diversity of choice that is available to consumers, puts brands under pressure to offer high quality products and service, excellent value and a wide availability (Clifton et al., 2009). Brands must differentiate themselves from the competition and create an unforgettable impression.
In the case study, Bob’s Supermarket was a small, family-owned grocer. Many of Bob’s potential customers relied heavily on discount retailers such as Wal-Mart for their grocery needs, and many of those that did not shop at Wal-Mart shopped at Kroger or Aldi (Parnell, 2014). These competitors are large, well-resourced companies that have purchasing and distribution economies of scale. Unable to compete on price, Bob’s struggled to find any type of competitive advantage. Bob’s did experience some level of success with its fresh-cut meat and ready-to-eat food products. However, economic conditions had the potential to make consumers more price sensitive. Political, legal, and economic forces all coalesced into a rise in the federally enforced
According to the American Marketing Association (AMA), a brand is a “name, term, sign, symbol, or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition”. However, as Keller highlights, a brand is also “something that has actually created a certain amount of awareness, reputation, prominence, and so on in the marketplace”. Therefore, a brand is an identity created to differentiate itself from the competitors and to be remembered in consumer’s mind.
The Australian Supermarket Industry is the very hot topic that’s why very interesting topic now days. The Australian supermarket and grocery stores have a very severe competition in Australia mainly because of organizations competing in this mature industry are going towards cost reduction initiatives with competing advantage rather than product differentiation strategies, In other words business in this industry increase market share by charging lower prices while making reasonably fair profit. The growing popularity of ALDI – German based company of introducing its own label goods (products manufactured and sold under the retailers own brand) with low cost has forced the two giants –Woolworths and Coles to cut price
For instance, McDonald's is a well-known brand for its fast paced service. For buying McDonald's food, customer will think about food content and the values against the money, effort and compare McDonald's with Burger King and Subway and select the one that gives them the greatest delivered value.
supermarkets like Tesco offering the biggest discounts in the UK and Sainsbury 's offering of substitute products too (Mintel, 2010). This shows the responsiveness and flexibility towards consumer needs in the supermarket industry.