An article in the Herald Sun Review on 29 March 2011 shows Coles now declares war on the price of chickens. In addition, this article also reveals defiant Coles has vowed to expand supermarket price cuts, adding fresh chicken to its discount battle and promising the cost of more staples will soon drop.
In this article we can see what the Coles use the marketing concepts of customer wants, pricing, and satisfaction to the market. Coles’s latest product is more price cuts planned in the next few weeks.It is shown that, Coles are using market –penetration pricing strategies, setting a low price for a new product in the next few weeks to attract a large number of buyers and a large market share (Kotler et al, 2010 p7). Furthermore, there are using past of Down Down campaign advertisement of their latest product. The Coles brand poultry price cuts, which include $2.
10 a kilo savings on bulk, breast fillet, and skin-off packs. It disembosom Coles brand poultry price reduce to buyers who buy large volumes through the quantity discount strategies (Kotler et al, 2010 p7).With promotional pricing, Coles temporarily price their products below list price, and sometimes even below the cost (Kotler et al, 2010 p7). Sometimes Coles price a few products as loss leaders to attract customers to the store in the hope that they will buy other items at products at normal mark-ups and reward existing customer for their loyalty.
On the other hand, there is another paragraph explain Coles was selling two-packs and four-packs of skin-off chicken breast fillet, two-pack was selling for $1. 50 cheaper at $14 per kilo and four-packs will selling for $2. 0 cheaper at $10. 90 a kilo.
From this paragraph, it is through promotional pricing marketing strategies (Kotler et al, 2010 p7). Coles released calculation showing a basket of various items and was now more than $55 a week cheaper for big families. The supermarket is using product mix and service mix pricing strategies (Kotler et al, 2010 p7). It is reveal that product-line pricing, supermarket setting the price steps between various products in a product line based on cost differences between the products, customer evaluation of different features.
In addition, Couples with a baby were saving more than $40 and single or couples without children more than $20, Coles adjust their basic price to reward customer for certain responses. As a result, big families can gain more discount pricing and allowances. The managing director Ian McLeod said supermarket should provides price flexibility on the net (Kotler et al, 2010 p7). There are pricing products and services on the internet, so customer or shoppers can compare costs, including price decreases and increases.References: Kotler, P, Brown, L, Burton, S Deans, K Armstrong, G 2010 Marketing, 8ed, Frenchs Forest, NSW.