Thursday, December 12, 2019
Markets Segments and Decision Making Marketing Management Free Sampl
Question: Discuss about theMarkets Segment and Decision Making. Answer: Introduction: The current Australian market, especially the food retail business is controlled by two main companies who hold more than 80% of the revenues in the category. These two are Coles Supermarkets and Woolworths. Woolworths or in the local name woolies are a chain of food retail stores, that deal with fruits, vegetables, packaged foods, meat and many more things. The stores also sell stationary items and magazines etc. The Woolworths are a more than ninety years old company with high income (Woolworths, 2005). The main aim today is to expand the sales to more neighborhoods in this report we shall clearly provide ample text to support the fact that after a successful PESTEL and competitor analysis Woolworth employees can clearly have an advantage over the other small scale companies. The main competitor for Woolworths is definitely the Coles stores which have been making increasing impact over their competitor Woolworth. The increasing sales, their super low price sales etc. are the most i mportant determinants of how Woolworth is able to make an impact on the consumers as a food and homecare needs seller. In this report we emphasize on the Competitor analysis, study the customer segmentation process, the needs and wants of the consumer and how effectively Woolworths is able to deliver the required effects. The Woolworth is a great company for studying the planning and competitor analysis since Coles presents the scope for great competition among the two retailing giants in Australia. Even though both have their loyal customer base, there are also some who can be influenced into being a new loyal customer. For a new age person the flexibility of price and choice makes for the right decision. Here we talk about the Woolworths decision and strategic ideas (Dunford, 2006). Macro Level Study We have conducted a thorough multiple level of the PESTEL analysis. The Woolworth is a renowned company within the Australian companies and for their large share in the retail food market it is necessary that the PESTEL analysis is done in order to find out the most favorite results. The Woolworths team of marketing has done proper analysis of the market to locate the right customers, analyses the market segments that are the best and most beneficial. The need for the PESTEL analysis is required for more clear information about products that are being targeted. It is required that the market segments that need the PESTEL analysis done for assessing market structure are availed in the right way. PESTEL stands for the most procedure basic aspects of marketing and segmentation; there are different aspects of the analysis that needs to be used for the benefit of the company Political Factors: A countrys political situation is albeit important for an organization and its growth. The Woolworth is a renowned brand and is among the top two food retail businesses in Australia making it one influential company. The political factor helps the countrys economic conditional as a properly controlled country it is possible for companies to see profit and grow their businesses properly, the good political condition and help from the government ensures that the brand gets proper exposure and better growth opportunities (Budmar, 2011). Economic factors: the economy of a country is one of the leading and sometimes the most important aspect that determines the failure or profitability of a venture. The better the economic condition, the better the sales is something that is wholeheartedly true. When there are ample scopes for work, high employment and no financial crisis businesses thrive. In the badly hit United Kingdom, Woolworths had to close its operations which resulted in the unemployment of a major number of people (Australia, 2011). Society: The social factor is another very important sector that is directly linked with the success of the company. Customer centric environment at eh Woolworths has been a major reason why people love shopping from the, In order to increase customer satisfaction Woolworths introduced a lot of methods and marketing techniques. They offered cash back, introduced loyalty, provided frequent flyer mile points and also offered lower prices at their stores (Santos, 2012). Technology factors: The technology factor has been a major reason for the rapid growth of the industry. Woolworth was the first retail store that introduced printed receipts. Even today, fast and easy checkout process, online shopping features, self-service kiosks, online ordering all provide an easy to shop experience (Friedlos, 2016). Environmental: Being a sustainable business is important. The use of good and sustainable business strategies have improved how Woolworth deals with its suppliers and how they are working to reduce the amount of carbon dioxide they emit, also the introduction of recycling projects are great examples of the companys effort for greener earth (Otterpohl, 2015). Legal factors: The management, taxation and recruitment policies are usually created by governments which make it essential to work under a government that is supportive towards the different organizations doing business under it? The support from the government has been huge, with Woolworth and Coles creating a rather duopoly within the food retail market. This makes it a necessity to understand that the Government is really relaxed and supportive of the companies. The legal and tax support from the Australian Government has enabled the company like Woolworth to gain such an important part of the food retail sector with only one large scale competitor, Coles (Santos, 2012). Industry The food retail industry of Australia is dominated by Woolworths and the Coles Supermarket range of supermarkets. These retail stores are series and they are really popular in the category with the two companies hold and are responsible for controlling the food market. The food market or the retail food market t is supplied by large scale producers who produce for these two retailers exclusively. The main issue with these retailers is that there are very less competition and large scale producers are overproducing to meet the varied needs of these two retailers. The Woolworth is committed against sourcing fresh products themselves so it is seen that fresh food items as well as international branded food items do well. But since the Woolworths are a multi-state company with 900+ stores, not all food items are stored at all locations(Windberg, 2016). The food retail industry is a growing industry in the Australia. Today, every corner of a metropolis or a big town has a retail store of Woolworths. The current generation of Aussie purchasers is trying their hand at world culture and culinary taste making it essential that they have some particular items that require particular products that are sourced from original resources. This makes food industry a booming industry which makes the food processing and food sourcing easier. It is to be noted that he better the food industry, the better the retail business that makes Woolworth a successful business. Woolworth has developed contracts with supplier who has produced goods for their own requirements. The sustainable development of the industry related to food and home care is the best solution to the needs of the current Australian industry (Treadgold, 2006). Competition The main competition at the food retail industry and the most important rival for the Woolworth group is the Coles Supermarket group, which is now taken over by the Wesfarmers group. The Coles Supermarket brand is one of the leading retailers of food items in Australia. The market of the food industry is controlled by these two giants. But the Coles are the main competition for the Woolworths. The Coles supermarket is a multi outlet food and stationary retail store which works in a similar way like Woolworths. With around a decade of experience, Coles is definitely one of the largest competitors of Woolworths and is definitely a common name in the Aussie households. It is to be noted that Australians have slowly developed a sense of taste for international cuisines and products which make it a diverse option for Coles and Woolworth to stock international brands and products to help consumers be inclined towards selecting a particular store (Kotler, 2015). If Woolworth stocks a certai n product then, customers can be inclines towards getting their retail outlets only, and vice versa. The competition from the Coles and their flu buy program has also affected the popularity of the Woolworths stores. Earlier Woolworths also had a frequent flier miles program for their customers but later on it was reverted and cash back offers were started. Whereas the Coles stores offer frequent flier miles programs, petrol discounts, and also has a host of attractive discounts and low prices on daily items. The Coles Down Down campaign is the main competition for the Woolworths, where the Coles stores stock milk and other daily necessary items for only 1$. The rising prices, the recession nothing stopped them from going up with their prices, which has left them with a permanent place in the hearts of the consumers. But the main reason why the Coles Supermarkets are a great competitor for the Woolworths is that both offer similar spread of items and are great at understanding the r equirements of the customers and acting according to it (Spulber, 2007). Consumers The consumers are the main determinants of who stays in the competition and who is to be kicked out. For the last century Coles has had careful inspection of all the needs and requirements of the new generation consumers. The changing food habits have also influenced Woolworths to change the items they stock. The regional taste and preferences significantly control what items stores stock at their stores. For areas where the primary items are grown in house, Woolworths stocks the complimentary items that are required to create dishes rather than having a big aisle full of veggies and fruits (Beneke, 2015). The needs of the customer, their wants and their demands, all make their call at what should be stocked at the Woolworths store. The store also has a heavy hand in deciding which brands and products will be stocked at their aisles. It has been seen multiple times that certain brands are shifted to the back of the racks and some brands lose their spotlight at the retail chain as an unhealthy show of power. To decide the proper needs, and wants of the customer it is a necessity to try and find out what is the segment of the customer that is in question and whet type of goods and services they require. Proper segmentation is required to find out whether the products are being targeted at a certain segment is appropriate and profitable to be used for better sales (Dr Spanjaard, 2011). It is imperative to note that careful decisions are needed to understand who are the main consumers of your services and what segment your services or products fall under. The essence of the matter is that the purchasing power, needs, desire, wants of the customer are the driving point as to what products are to be used and what are to be segmented in different category. Most marketing executives will agree that the best way to guarantee the best results from a marketing process is to decide the market segment in the right way. The right way to go about the process is to segment the audience in the right way , following which the brands and the products need to be targeted to the right segment and positioned so that they are easily available and can be relative to the purchasers (Africa, 2006). The markets today have a rather few number of homogeneous group of consumers who have different sets of requirements and desires that call the decisions as to what items should be kept available and what should be discarded or not stocked at all. These groups however have a tendency of having interests or needs that are conflicting with other groups. For example a consumer who loves meat and meat based items might not be that much interested in purchasing vegetarian items or may purchase little amounts, and vegetarians might not be purchasing meat items or any non-vegetarian items. Some consumers are not keen on having certain brands and products so this creates the important issue that what products should ultimately be stocked at the stores. The need is to identify an d separate the markets where people are better satisfied with the products offered by you and target hose areas specially. It is also important that certain big segments of the consumers are left out since they may not be the right segment of people to concentrate on. Proper marketing and remarketing can help the management to decide upon the real customers who are required to build the brand and increase the sales. The Coles is a great competitor of the Woolworth and the increasing competition of the retail industry makes it important for the Woolworths to create a process of successful steps towards growth in all matters. Not only in the Australian industry but also abroad. Woolworth is also thinking of expanding its business in the other foreign countries to become a better and larger retailer throughout the globe. The systematic planning can take Woolworths into the new horizon of food retail business (Kumar, 2012). Conclusion It is to be noted that along with Coles Supermarkets, the Woolworths hold the maximum share of the food and grocery retail market. With the introduction of the new online shopping system the aim is to introduce better and quicker ways to shop for the new generation. For Woolworths, providing better ways to shop, better deals and making every deal worth the money is important. The competitor Coles Supermarkets have a strong supplier network and have employed multiple techniques to increase their sales , but with Woolworths also using multiple techniques and methods to increase brand loyalty, brand value among the purchasers, its possible for Woolworths to Compete against the other leading retailers, especially Coles and see better sales. Today, customers love to get extra benefits while shopping, so employing Smart technologies for improving business process and also using new technologies to improve the ordering, checkout and retail store shopping experience is important. The basic a im for Woolworths would be to cater to needs of the different customers based on their demography, purchase patterns, local customer buying profiles, and festivities etc. The main aim for Woolworths is top offer cheaper products that are exceptional products that are even better than the competitors. With more emphasis on keeping prices under check and using better and fresh vegetables for their everyday sales can improve the Woolworths sales. The market segmentation is important with respect to the growth and development of the Woolworths team. The proper planning and execution can result in increase in sales and better positions among the competitors. It is to be noted that properly evaluating the PESTLE macro level design should be the guideline for next setup and macro level report and guide for changes within Woolworths which are sure to get good results. References Africa, P. S. ( 2006). Fresh Perspectives: Marketing. Pearson South Africa. Australia, C. o. (2011). 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