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2 OUR
MARKETING MESSAGE and 3.3 OUR MARKETING TARGET, POSITIONING AND
SEGMENTATION
Project Topic
The Supermarkets and Grocery Stores industry is one of the most fiercely competitive industries in
Australia. The rapid expansion of ALDI over the past five years has significantly altered the industry's
operating landscape. The rise of ALDI (market share = 9.9%) has forced the two established industry
giants, Woolworths (market share = 37.5%) and Coles (29.6%), to cut prices and expand their
private-label product ranges in response1. Smaller supermarket chains, such as FoodWorks, have
struggled to compete in an increasingly price-intense industry. Moreover, there is a looming threat of
US online giant AmazonFresh and the European chain Kaufland soon entering the market and
capturing market share.
Coles’ performance in 2016-17 was one of its weakest in several years, with the company facing
pressure from a more buoyant Woolworths and an expanding ALDI. These pressures continued into
2017-18, with Coles recording sales growth of only 0.3% for Q1 2017-18. As a result, Wesfarmers –
the owner of Coles – recently demerged and turned the Coles supermarket into a separate
company.
For additional background information, visit the following:
• https://www.news.com.au/finance/business/retail/coles-might-not-be-around-in-10- years/news-
story/4ddfdac929ee98c80933f722c4fe919d
Project Objectives
For the purposes of this assignment, you should consider your group to be a new marketing
consultancy firm. Your first client is Coles. Considering the marketing-related issues faced by Coles,
your primary objective in this project is to propose a marketing campaign that can help boost Coles’
sales and increase their market share in the Australian Supermarkets and Grocery Stores industry.
In order to do this, you will need to interview consumers, research academic articles, figure out the
marketing problem, and propose creative solutions.