COLES MARKETING PROPOSAL

Coles Marketing Proposal



Name of the Consultant

Address_________________

#__________________

Mr Ian Mcleod,

Chief Executive Officer,

Coles supermarkets,

Australia.

Subject:Marketing Proposal for Coles

Respected Sir,

Thank you for taking some precious moments out for us. As discussed in our meeting the other day, attached is the proposal which I would like to present to you for revitalizing your retail chain of store, Coles.

After carefully reviewing your existing strategies and future potential using SWOT analysis and Michael Porter 5-Forces analysis, we would like to review our suggested strategies and possible actions for attaining them. For your review we have attached the SWOT analysis as Attachment 1 and Porter 5-forces analysis as Attachment 2.

Please feel free to discuss with me if you have any query. I will like to come in person and discuss this proposal with you and will appreciate if you can spare some time for me.

I will be looking forward to your feedback.

Thanks.

Name of Consultant

Date:Coles Marketing Proposal

Vision

“To give the people of Australia a shop the trust, delivering quality, service and value.” (Coles, 2011)

Current Situation

Coles supermarket is the leading countrywide convenience, liquor and food store in Australia. Coles is committed towards the relationship management approach by offering discounts, training its customers to eat and spend better. It has also taken several steps to enable it suppliers, especially farmers to earn better.

As per the porter generic strategies (Griffin 2011, pp 39) , Coles supermarket seems to be following “Cost leadership strategy” as it is catering to a broad market while reducing the cost of its products over the years. The Coles following this strategy have achieved economies of scale and has improved its supply chain by paying more to suppliers for their produce while driving the prices down from their own profit and cost savings in the processes (Stubbs 2011, pp 33).

An increase of 6.9% over FY2010 was recorded in revenues in the Coles segment amounting to A$32,073 (approximately $31,717 million) in FY 2011. Coles completed a third profitable year following above stated vision.

Situational Analysis

In order to assess the Coles' situation, we have carried out SWOT (Strengths, weakness, Opportunities and Threat) analysis in which we have summarized the internal analysis of the company and external analysis of the company (Keillor 2011,pp 171-177). The SWOT can be located at the end this report (Attachment 1: SWOT Analysis of Coles). We have also conducted a Michael Porter's 5 competitive forces analysis which can be located at the end of the report (Attachment 2: Competitive 5-Forces, applied to Coles) (Roy 2011, pp. 22-33). Together using the SWOT and 5-Forces analysis we have developed some goals and strategies to be followed by Coles.

Goals and Strategies

Based on our analysis we propose the following strategies:

Carry out backward integrations into farming to have its own food grown and produced as per it own quality standards (Porter 1998, pp. 25-35). Also in other supplier categories.

We are recommending improving profitability through economies of scale. To ensure that quality standards are met in ...