Introduce a Company into Spain - Essay Example

Figure 1: Predicted Mall Distribution Space in Spain The product will be distributed through a long distribution channel whereby several middlemen will link the retailer with producers of different commodities. Although this kind of distribution channel may raise the price that the consumers will pay for the products, it will be essential to use it because the supermarkets will deal with a multiple of products and hence may not get time to deal with all the logistics of individual commodities – this role will be left for the suppliers.

All in all, the market is concentrated in the hands of few, and it is these domineering stores Coles is expected to compete with, which means that the competition will be quite stiff. The right media will be chosen to ensure the marketing plan is successful. Therefore, the communication channels will be based on their ability to convey the right message to the target audience in the most effective means. Coles will develop communication channels largely through direct mail, television, radio, as well as the internet.

These channels will be used to show consumers how they will benefit by shopping from Coles supermarkets. The products that will be sold by Coles will also act as a channel of communication with the consumers. The Supermarket stores will serve as sources of instant information regarding the sales, available products, location of in-store products and methods of getting out-of-stock items. Generally, the supermarket will exploit channels such as addressable media, interactive media, and mass media.

Coles will apply pull strategy, which involves the customers dynamically looking for the company’s products while the retailers requesting for goods in response to direct consumer demand. This strategy will require Coles to establish a strong brand in Spain, which will be achieved through mass media promotions among other strategies of similar nature. In this view, when the supermarket identifies a certain product that the consumers require, the management will ensure it is stocked – this means that the supermarket will be charged with the responsibility of creating the demand while the supply channels will ensure that this demand is met.

Coles will adopt a competition-based pricing strategy, whereby the setting of prices will be based on what the rival supermarket are charging (Cannon and Morgan 19). Business Review Coles supermarkets have operated for more than 90 years in Australia. The company has very rich history of Australia especially because it was founded by the founders of Australia’s retail industry. Coles founder, George Coles, after studying best practices in retailing from the US went back to Australia in 1914 and opened stores in Melbourne, Collingwood and Smith Street.

The company opened its first supermarket in 1960 in North Balwyn, Victoria. By 1973, Coles had managed to open stores in all the capital cities of Australia (Armstrong and Kotler 56). BI-LO is a chain of supermarket owned by Wesfarmers, which was previously known as Coles Group. BI-LO changed name to Coles Supermarkets during 2006 and 2007 when they attained 180 chains of stores. Following a poor performance of stores which had been converted