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Coles is a chain of supermarkets based in Australia. The first store was opened in 1914 and for over 100 years, Coles has become one of the biggest supermarkets in Australia. The chain has over 100,000 employees working in more than 787 supermarkets, 865 liquor stores, 89 hotels and 690 convenience outlets across the nation. Coles has gained 28.8% market share in the total grocery market in 2017 and achieved total revenue of $39 billion dollars. Coles provide a wide range of products such as groceries, vegetables and fruits, liquor, dairy products and meat. Coles also sells its own product brands.
Coles’ marketing strategy
Product:
Coles offers fresh food, groceries, liquor, general merchandise, fuel and financial services. The various offerings form the marketing mix product strategy of the brand.
The business segments of Coles are Coles supermarket, Coles online, Coles liquor, Coles express, Coles Financial Services, Spirit Hotels
The products sold at the supermarket include- Baby products, Bakery, Dairy, Deli, Fresh fruit ; veg, Coles Mobile, Gift cards, Heston, Liquor, Meat, Gluten free, Kosher
Coles also offers its own brands such as Graze Grass-Fed Beef and BonSucro sugar. Coles has exclusive contracts with Shell and offers fuel at its Coles express convenience stores.
Coles Liquor offers hundreds of liquor brands. They have a wide variety of local as well as imported wine, beer and spirits. Coles financial services offers insurance which includes home, car, life and landlord insurance and credit cards. Coles Financial Services more than 1 million customers. Coles operates hotels under the brand name Spirit hotels. Coles sells fashionable on trend apparel at its Target stores.
Price:
Coles is a cost leader. Coles offers customers lower prices while at the same time providing high quality of products. Coles aims to continuously lower the cost of the weekly basket of goods whereas the cost of living in Australia remains high thereby being a competitive advantage for Coles. Coles has been lowering prices for 6 years and Australian households can save an average of $640 a year by shopping at Coles according to their annual report. Coles invests in store network, simplifying processes, training, retaining the best talent, refurbishing stores to maintain low prices and provide a very good customer experience. Coles Liquor is dedicated to delivering lower prices, an improved range and a better store network. Coles express introduced Every Day Value pricing to its convenience stores which include lower priced food-to-go and 80 cent coffee. Coles express also had with price capped discounts for Christmas and new year enabling customers to save more. There are many discounts, loyalty programmes and promotions by Coles which customers can use to their benefit and get even better prices. Flybuy is one such loyalty programme in which one feature is such that a customer saves $10 when 2,000 flybuys points are redeemed while buying a Coles Insurance policy online.
Place:
Coles has a total of 2,300+ outlets and reaches out to millions of users as a part of its marketing mix distribution strategy. Coles strives to build a better store network and has an objective to target supermarket net space growth of 2-3% per year. In 2015 Coles opened a new state-of-the-art Coles supermarket which offers the latest supermarket features. The supermarket has an open market-style fresh produce section and an in-store bakery, butcher and deli. Coles opened 20 new supermarkets in 2015. Coles online is an online supermarket where customers can view the products offered by Cole and place an order anytime. Orders of fresh food are delivered within a specified time by Coles Online drivers in temperature-controlled vans. Coles Online achieved on a weekly average more than 25 per cent growth.
Many new Coles express stores were opened with improved range of convenience and food to go offers. Coles Liquor operates under three brands 1st Choice Liquor superstore, the Liquorland convenience offer and the specialist chain, Vintage Cellars.
Promotion:
Coles marketing strategy and advertising revolves around lower prices that the supermarket offers. It used taglines such as “why pay more” “Extra Value for You — and Me” and “Cheap Groceries” highlighting the lower prices and the value customers get from shopping at Coles. Coles had an interactive campaign wherein customers were asked why they shopped at Coles and their responses were recorded. Coles has loyalty, discount and promotion schemes. Its flybuys loyalty and rewards program is one of Australia’s largest with over 5.5 million Australian active users. It was judged Australia’s most popular rewards and loyalty programme by an independent research agency. Customers can get up to 6x more points on all Coles Supermarket shops when they take up a Coles Credit Card and Coles Insurance products. Coles also has promotional schemes during Christmas and new year.

Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Coles.
Physical Evidence:
Coles 2,300+ outlets serve as physical evidence. Coles works towards building bigger and better stores. The stores are refurbished to improve customer experience. The products are arranged in such a way that it is easy and efficient for customers.

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People:
Coles being a superstore customer relations are very important. The employees are continuously trained to interact and enhance customer service. Coles gives freedom for its employees to be proactive and find ways to increase value to customers. Coles is committed in providing market leading customer service. Coles also has various programmes for its employees such as Retail Leaders Program and The First Steps Program.

Process:
Coles seeks to improve its processes in the supply chain to deliver better to customers. Streamlining of processes is used to cut cost which adds value to its customers. Coles has simplified process of buying by using online supermarket. Hence, this covers the marketing mix of Coles.

1) Primary and secondary target market
• Target market: A specific group of customers on whom an organization focuses its marketing efforts
• Demographics
• Who is shopping for Cole’s and what are they like?
DEMOGRAPHIC INDEX
Under 24 83
25-34 95
35-44 113
45-54 104
55-64 82
Over 65 77
African American 70
Asian 31
Caucasian 115
Hispanic 59
Under $20k 99
$20k-40k 104
$40k-60k 105
$60k-80k 114
$80k-100k 101
$100k-125k 93
Over $125k 79
No College 113
College 103
Adv. Degree 76
Has Kids 114
No Kids 83
• Brand Affinity
• What other brands are Cole’s shoppers buying most often?
TOP PARENT BRANDS AFFINITY
Totinos 5.8x
Prego 5.5x
Bob Evans 5.1x
Stouffer’s 4.9x
• Channels Shopped
• Where are Cole’s shoppers most likely to do their shopping?
TOP CHANNELS INDEX
Beauty 1
Club 0
Dollar 0
Drug 1
Food 133
Gas ; Convenience 5
Mass 129

ITEMS IN BASKET INDEX
Urgent Need (1-2 Items) 5
Express Lane (3-10 Items) 44
Fill Up (11-20 Items) 168
Pantry Stocking (21+ Items) 641

TIME OF DAY SHARE PURCHASED
Morning 13%
Noon 16%
Afternoon 37%
Evening 29%
Late 6%

Select Specific Target Markets
• In selecting a target market, it must be determined if the customers’ needs differ enough to warrant use of market segmentation.
• Segmentation analysis will show if the customers’ needs are homogeneous and would benefit from an undifferentiated targeting strategy.
• Or, if the customers’ needs are heterogeneous, one or more target markets must be selected.
• Assuming one or more segments offers significant opportunities, marketers must decide in which segments to participate.

2) How do they segment their market
A market is a group of people – individuals or organisations – who have needs for products and have the ability, willingness and authority to purchase such products
• Market segmentation – the process of dividing a total market into groups with relatively similar product needs to design a marketing mix that matches those needs
• Market segment – individuals, groups or organisations with one or more similar characteristics that cause them to have similar product needs
FIVE CONDITIONS FOR SUCCESFUL MARKET SEGMENTATION
• Customer needs for the product must be heterogeneous.
• Segments must be identifiable and divisible.
• Different market segments must be comparable in terms of sales potential, costs and profits.
• At least one segment must have enough profit potential.
• Guaranteed access to reach the chosen segment

Factors to consider when assessing relevant market segments:
– sales estimates
– competitive assessment
– cost estimates

3) Concepts of consumer behaviour

• Consumer behaviour
– Behaviour of people who purchase products for personal or household consumption and not for business purposes

5) Elements of promotional MIX
PROMOTION VARIABLE
• Inform individuals or groups about the organization and its products/services
• Increase awareness of new products.
• Educate customers about product features.
• Urge people to take a particular stance on a political or social issue.
• Sustain interest in established products.

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