1. Situation AnalysisAustralia's grocery giants face off in front of a panel of industry judges to determine which supermarket wins the marketing war. Coles is one of the giants of the Australian supermarket industry, still competing on product prices with its main competitor, Woolworth. In 2012, the supermarket market increased compared to 2011, as customers visit the supermarket two to three times a week on average (Kruger, 2012). Coles and Woolworths hold 56% of the Australian grocery market. The concentration of competition has made the rivalry palpable. Meanwhile, Coles aims to continue the price war it launched in 2011. Recently, Coles confirmed it is continually closing the gap with Woolworths. Apart from the supermarket sector, Coles also operates liquor stores, online stores, fuels and convenience stores. In 2012, the food and alcohol market shares by price of Coles and Woolworth were 30% and 42% respectively. Compared to 2011, Coles recorded increased sales and business growth across most of its business areas in 2012. Coles Managing Director Richard Goyder said Coles will continue to have a very strong focus on creating value for its customers and constantly putting effort on pricing, as long as the company can attract more customers and sell more products, achieve efficiencies in business and also throughout the supply chain. supply (Courtney, 2013). power• Ambassadors and sponsorship• Exclusive products • Adding new services• The outlook for the supermarket is favorable• Increasing globalization of food production and retail markets• Constantly increasing income levelWeaknesses Threats• Low cost structure (high cost)• E - commer... ... middle of paper ......r Devondale would feel happy about this deal as it allows it to supply more dairy products (Coles and Devondale's own brand). This could potentially increase farmers' incomes by perhaps two or three cents per liter and reduce producer price volatility. In conclusion, Coles must stop using coercive power on suppliers and put a stop to unethical or illegal activities, which help build trust with its suppliers and beneficial to their business in the long run. At the same time, it can increase the price of its private label milk, using strategic methods to attract more customers. In addition to the fair trade label, Coles could state that it would donate 10 cents to charity if a customer buys its own brand milk in order to improve their purchasing habits, which would also be a good opportunity to develop your reputation..