Grocery Retailing in Australia

Findings 3 3. Strategies of Pricing and Non-Pricing used in ALDI and Coles. Comparison and Discussion of the pricing and non-pricing strategies 4 3. Competition in the grocery industry in Australia 6 3. Strategies of growing the grocery retail business in Australia 7 4. The groceries competition has led to the increased price intense industry with supplementary non-pricing strategies. The pricing strategy entails the subsidence of prices to attract and retain the customers for a significant time. Businesses resort to fair pricing of products to enhance their affordability and customer sustenance. The non-pricing strategies focus on the application of product based improvement and branding concepts to promote the provision of quality products in the market. Customers prefer the purchase of good and natural quality of grocery products with convenient durability periods in order to satisfy their needs and preferences.

The section establishes a clear insight of the criterion of growth the grocery industry. The last section discusses and analyses the development strategies applicable to nearly all the grocery premises. Findings 3. Strategies of Pricing and Non-Pricing used in ALDI and Coles. ALDI and Coles observe distinct pricing and non-pricing strategies. Coles and ALDI use the high-low pricing criterion as a standardizing tool by ensuring neither losses nor massive competition from other stores. However, other pricing strategies that are used in ALDI is the absorption pricing. • Non-pricing strategies are the integration of product improvement and brand management. Grocery retailing uses all the conceivable methods to guarantee that the non-pricing strategies of marketing selected are the most effective in maintaining the business stability.

One of the foremost approaches used is non-pricing strategy is the consistent mitigation product development. The approach has a high level of efficiency as ALDI has always claimed to provide grocery products of the same high quality as any other branded products in their stores. Absorption pricing, in comparison to other pricing strategies, seems to be working fine for this grocery store as it maximises on its profit gain as it offers quality products to their customers. • High-low pricing is major pricing strategy utilized by the Coles which has proved quite proficient and sustainable subject to the critical marketing policies implemented over the past many decades. The Cole stores also apply the 4P strategy which aims at integrating four major aspects of business elements which include the product, price, place and promotion.

The 4P approach determines and evaluates the most suitable range of prices executed in dissimilar places and time. Both Coles and ALDI acknowledge the effectiveness and suitability of the non-pricing strategy: this is evident from the customer feedback regarding their products. Customers prefer these stores among other grocery stores because of the distinct quality of products available compared to the rest of the grocery stores. • Brand development in the grocery retailing business is peculiar and unique to the normal branding strategies. Branding is customarily done through the corporation of health awareness teams and nutritional health agencies who focus on promoting healthy eating among consumers. Consumers tend to buy grocery products when the collaboration in branding is done in such a manner through the healthy eating campaign.

ALDI and Coles have been recorded to be the ordinary industry in terms of performance and competition. As discussed previously, pricing strategies of these companies fluctuate reliant on the sales policies and significant market factors put into considerations that they have mastered over the years. The price depicts the merchants’ recompense, the anticipated revenue, and overhead fee or the functional expenses (Canada Business Network 2015). Competition in certain correlating businesses is supposed to be healthy and aim at the betterment of the industry at large. Competition is determined by the evolving issues that affect the general production of grocery products. In the process, there are possibilities of loss of quality. Most of the progressions done by the grocery retailers are neglected hence incurring significant loss of economy of scale that grocery retailers simplify.

The agricultural and grocery retail sectors should be concurrently developed to ensure that the supply chain is conveniently intact at all time. The Food and Grocery Code of Conduct is a contemporary incipient issue that deals with competitive rates in the grocery retailing industry (Australian Federal Government, 2018). The policy of conduct importance is to ensure that the grocers handle suppliers professionally within the set terms that must be reasonable, friendly and humane towards the progression of the food and grocery sector. For instance, Woolworths has employed the use of the leverage product and management category strategies. The leverage products act as influences and facilitate simplicity feature on the consumers. The provision of other services and products in grocery retail stores has proved to be an effective method of growing the business.

The simplicity is accomplished through the amount of time saved. Management of Category approach helps many grocery retailers to develop and grow their businesses in the grocery retailing. Customer services is a retention method that involves the amalgamation of proper services, assistance and delivery of the best products according to client’s preferences. Any business that puts the needs of the clients as priorities are likely to retain clients and attract more of them. Marketing is the crucial methodology of maintaining a business and attracting more clients. The non-pricing strategies are among the best marketing strategies that grocery retailers can implement for better results. Advertisements and branding are some of the major means of marinating and facilitating the growth of a business.

Recommendation The fundamental key to optimal goal achievement in any form of business plan is establishing the most suitable strategies and goals. Both ADLI and Coles groceries illustrates a great competitiveness in the market, the two companies should assess the competitors strategy to better their contemporary strategies. Reference List: Australian Federal Government. A review of the competition between Woolworths, Coles, ALDI and IGA. Competition Committee Investigation. Supermarket Monsters: The Price of Coles and Woolworths’ Dominance. Black Inc. Makienko, I. Price Elasticity Concept in Pricing and Non-Pricing Contexts: Learning Activity.  Journal For Advancement Of Marketing Education, 2525-31.