Markets Segments and Decision Making

Marketing Management

Table of contents

Contents

1.        Introduction        3

2.        Industry analysis and market trends        4

3.        PESTLE        7

4.        Competitors analysis        9

5.        Segmentation analysis        12

Demographics        13

Attitudes        13

Activities        13

6.        Level of involvement and decision making        14

7.        Perceptual map        15

1. Introduction

Company         coles supermarket

Location         dandenong vic

Consumer         families

Coles supermarket, managing under Wesfarmers is one of the leading supermarkets in Australia with the use of new technologies and convenience stores located in all over Australia, 774.(Coles website)

Dandenong is a suburb of Melbourne, Victoria and it is one of the biggest and famous multicultural suburbs in Australia full of with different food tastes. Dandenong is the second most diverse community in Australia, with different nations, races including many of Asians such as India, Sri Lanka, Vietnam, china, Pakistan, Afghan and as well as many English people like newzeland,Greece and Italy. (Community profile) “’The diversity of this city is reflected in the range of religious faiths, including Buddhism (18 per cent), Islam (11 per cent), Hinduism (4 percent) and Christianity (50 percent).”(Community profile).one of significant factor of this area is independent youth makeup the largest people living in this area that is 26.5% and Maturing & Established Independence indicate 16.5%.among people who residents in this area many are occupied from labour work and trade works. Use Below graph for more information.( Latest REMPLAN data incorporating Australian Bureau of Statistics’ (ABS) 2011 Census Place of Work Employment Data.)

[pic 1]

Figure 1

The population of in this location is mostly occupied by not professional level jobs, but from trade and labour works, since the income of this area is moderate (fig2) level but it is fluctuate. Since this is a multicultural city, there are many local grocery shops around by city. Examples Marmara halal meat shop, MKS Indian grocery, and IGA supermarket.

[pic 2]

Figure 2

1. Industry analysis and market trends

1. What is the Supermarkets and Grocery Stores Industry?

“Industry players primarily retail groceries. Supermarkets and grocery stores, retail a range of groceries and food products, including fruit and vegetables, bread, cigarettes, canned goods, toiletries, meats, dairy goods, delicatessen items and cleaning goods. Specialist retailers, niche retailers and convenience stores are excluded from the industry.”(IBIS World). Many companies in this industry offer more than two thirds of products are food items (50 %). But in this era most of groceries and supermarkets leading to provide more different categories of items other than food like cosmetics’, baby products, home appliances and so on (examples Aldi provide their own brand of baby nappies-Mamia).

Following list is provided by IBIS for industrial products that are available in grocery and supermarkets.

Industry Products

Dry and packaged foods
Bread and bakery products
Meat products
Milk and other dairy products
Fresh fruit and vegetables
Beverages
Cigarettes and other general merchandise
Toiletries and health products

IBIS mention that industry activities of this market are two types, operating supermarkets and grocery stores.

Australian supermarket and grocery industry is big competition and advanced since there are number of and stabled companies engaged in this industry. Coles supermarket is one of them and its history goes beyond 1914.there are a number of competitive companies in Australia for COLES supermarket namely, Aldi stores, Woolworths, Metcash, IGA supermarket, and Marmara Halal meat shop and MKS grocery shop if take in Dandenong area. And according to IBIS world report, there are higher barriers to entry in this industry and these have remained stable over the past five years. The entering cost in this industry is high and expensive (establishing new stores, technology, purchasing a franchise license) in Australia when comparing to other countries. And current operators also face difficulties to find suitable sized premises since retail sites are becoming even more expensive and difficult to find. This will directly impact on store size, “ALDI stores are expected to measure approximately 830 square metres on average, compared with the projected average of a Coles or Woolworth’s store, which measures approximately 4,000 square metres. The availability of prime real estate sufficient to house large-format stores may also be an issue for international operators planning to launch stores in Australia.” (IBIS WORLD)

ALDI, the German supermarket has significant rapid growth in the industry over last five years. (IBIS WORLD)” As of December 2015, ALDI holds 12.1% of the total supermarket market (up slightly from March 2015, when it was 11.6%). With its first South Australian stores now open and its expansion into Western Australia due to start rolling out mid-year, the future is looking bright for the German supermarket chain’s quest for a bigger slice of the Aussie supermarket pie.”(Roy Morgan research, “Supermarket sweep: ALDI’s share of the Aussie market still rising”, Friday, 15 April 2016) 

[pic 3]Figure 3 

Although the Woolworths own 37.3% of market share it has declined from 38.5% and Coles supermarket increase its market share from 31.8% to 32.5% by same period.( Roy Morgan research)

ALDI store has forced two other market giants (WOOLWORTHS,COLES) in the industry to cut price down and introduce their own label products since ALDI use discounted private label products( baby products comes as Mamia )

 [pic 4][pic 5][pic 6]

Over the last five years in this industry companies use to stay in competition by reduced prices and lower margins since that industry wide profit margins has fallen down.