COLES leading since forever.

Back in my country, India, we have small grocery stores, a lot in number and easily available. They are owned solely by different individuals and the stores were named on their family names, for example “Singhla Provison Store”. And when i landed in Melbourne, all my memories of Indian groceries were replaced by an Australian household name, COLES.

ColesSource : ( Coles store, Google )

Coles is an Australian Supermarket Chain, started by C J Coles in Smith St, Collingwood, Victoria in 1914 and today it has around 776 markets all over Australia.

“The customers themselves really

decide what goods we shallstock in our stores.”

— GJ Coles, 1928

Ever thought, what is it that distinguishes Coles from other grocers, or products that are not sold in Coles?

It is the Brand, the brand value.

According to Douglas J. Dalrymple and Leonard J. Parsons, ” A brand is a name, term, sign, symbol, or design intended to distinguish the goods and services of one seller from another.”

And Russell S. Winer says that one product is chosen over the other, and even bought on higher prices, because of the brand name as according to him, “Brand provides, Expectations of quality, Risk Reduction and Prestige.”

The brand name has seen slight variations over the past 100 years. In 1914, it was inaugurated as Coles Variety Store, further from 1962, it was called Coles New World, in 1991, the stores were re-branded as Coles Supermarkets and finally since 1998, its just Coles.

Coles’ logo and taglines have also changed several times. From Serving you better, to Save Everyday, till the present, A little better everyday.

 

 

Source : (Coles Logo History, Google)

Coles has always kept expanding and improving its products to have a competitive edge over its competitors like Woolworths, Aldi etc.

Post World War II, Coles kept innovating itself according to the consumer needs,wherein a large number of woman stepped into the work field, hence Coles introduced ready made food stuffs. They also introduced Coles Express Stations in 2000-2009 providing food at petrol pumps. Coles has always been innovative and at high end with the technology, and trying the best to serve its customers and employees in the best possible manner.

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Source : (Google)

Coles uses the corporate umbrella brand approach, in this the brand name is attached to the products. KOTLER & KELLER say that development costs are lower with the umbrella names because there’s no need to run “name” research or spend heavily on advertising to create recognition.

Despite following the Umbrella Approach, Coles also has seven levels of private label branding. But all are still sold under the broader name of Coles only. These 7 are by the names of Coles, Coles Smart Buy, Coles Finest, Coles Green Choice, Coles Organic, Coles Simply Less, Coles Simply Gluten Free, and Coles also has a clothing line that offers basic clothes for woman and children, known as Mix Clothing. All these products vary from each other on the basis of the feature offered by them, but they highly enjoy the brand value of Coles and its goodwill.

Source : ( Coles product variety, Google )

In 2015 Annual Report of Coles, they claim that We’re not just about food and liquor – we’re a multichannel retailer, offering our customers a range of products and services to suit their needs.”

Coles keeps extending its products and services. According to Philip Kotler, “A product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need . It includes physical objects, services, persons, places, or organizations, and ideas” whereas, for a service, Kotler says, “A service is an act of performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product.”

Flybuys, powered by Coles are the reward programs to customers. And in October’15 Etihad Airways joined Flybuys, it enabled the customers to convert their reward points into air tickets. Further,Coles Financial Services bring everyday services of Insurance and credit cards to its customers. In July’15, new Coles Low Rate Master Card was launched, which promoted low interest rate and additional feature to enhance the flybuy points.

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Coles enjoys a high degree of customer loyalty as in 2015, Coles was ordered to pay a penalty of $2.5 million, for misleading the customers by falsely advertising “Freshly Baked” bread, but it was found out that it was baked off site and months ago.  Coles accepted that they could have done a better job at explaining and advertising. Even past this, it didn’t lose its customers.

REFERENCES :

  • Marketing Management : 14E : Kotler Keller
  • Marketing Management : 7E : Douglas J. Dalrymple & Leonard J. Parsons
  • Marketing Management : 2E : Russell S. Winer
  • Annual Report 2015 : Coles
  • N.p., 2016. Web. 29 Aug. 2016.
  • Coles fined for false bread claims
    In-text: (“Coles Fined For False Bread Claims”)
    Your Bibliography: “Coles Fined For False Bread Claims”. Theaustralian.com.au. N.p., 2015. Web. 29 Aug. 2016.

 

 

 

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