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Coles marketing strategies
Coles marketing strategies
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Ice Creams: A Case Study: Coles
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Bargaining Power of Buyers The level of bargaining power of buyers is moderate because one of the reason is Coles does not have much competitors to compete with. Their Consumers can switch brand easily because they are very sensitive to price and will compare and choose the cheapest alternative. However, the Federal Government and ACCC has set a restriction to lower down the competition barriers to allow new competitors to enter the market which will widen consumers choice and lead to increase of bargaining power of buyer level to high. Threat of Substitutes The level of threat of substitutes is high, this means that Coles has a lot of indirect competitors such as farmers’ markets, specialist grocery stores and convenience stores. These indirect competitors posed a serious threat to Coles.
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The program named Active retail collaboration (Knox, 2014). In that program suppliers are divided into a list of top 50 and tail suppliers were need to pay rebate to Coles for improving their efficiency. Tail suppliers faced the dominance and undue power pressure of Coles. Red bull the energy drink supplier faced a $400,000 cut in supply cost with a rebate of $200,000. On the same lines Coles launched “ARC supply chain boot camp” in the same year.
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