Coles Supermarket Case Study for Promotion -myassignmenthelp

Question: Discuss about theColes Supermarket Case Studyfor Product and Promotion. Answer: Introduction Marketing is a mix of activities that companies used in trading to attract and keep customers (Investopedia LLC, 2017). This is essential to build and sustain the companys brand in the market. However, ethical issues must be taken into consideration while utilising different strategies in marketing. Coles is a supermarket giant operating across Australia for more than 100 years. Its rebranding of its own-brand products became a topic in 2009 because it was previously being criticised for having a similar logo with the Australian Heart Foundation. The tick symbol on the label of the products means that they meet the requirements of the Foundation regarding nutritional content. However, some of the products of Coles contains ingredients that causes health risks despite of its claims. Because of this, product and promotion of the 5Ps of marketing (Australian Government, 2017) are the main focus of the arguments regarding ethical issues. A Brief History of Coles Coles is a supermarket retailer founded by GJ Coles on 09 April 1914. Its first store was opened in Collingwood, Victoria (Coles Supermarket Australia Pty Ltd, 2017). During the last century, the history of the company includes: first electrical appliances sold (1946), launched cosmetic range (1948), converted the shop to self-service (1956), opened the first freestanding supermarket (1960), introduced home brand products (1970), used electronic scanners (1982), established liquor interests and creation of Coles Myer Ltd (1985), adopted new technology (1990), set up Flybuys program (1993), trialled online shopping in Melbourne (1999), inaugurated Coles Express service stations (mid 2004) and was acquired by Wesfarmers (2007). Currently, it has more than 780 stores operating around Australia. This supermarket offers a variety of products and services for consumers including grocery items, alcohol, insurance and credit card services, loyalty cards and many others. For over 100 years, Coles is committed to improving the quality of service they provide to their consumers. Their aim as of today according to Wesfarmers website (2017) is to provide a shop that Australians can trust, delivering quality service and value. They are trying to continue their efforts to sustain in the market while delivering quality fresh food for a cheaper price. Arguments Mislead Consumers Incorrect labelling This is mainly by using cholesterol free on the label even though the Trans fats that it contains make the cholesterol level to increase which can be harmful to consumers health once consumed. Label is an essential factor for consumers in deciding the right product that they need. According to Singh and Gupta (2016), label provides helpful information on the description and contents of a product, instructions on how to use it as well as its manufacturer. This is the first contact of a prospective buyer when sales agents are not around to help them decide which product to use so it should be accurately described. Because of its usefulness, there are different governing bodies created to ensure that label complies with the standards. By law, it is important to note that any form of misleading or deceptive conduct is illegal. Similarly, if a company did the same with their claims on their products or services, they will be held liable. Food Standards Australia New Zealand website (2015) states that Australian Consumer Law (ACL), which is confined in Competition and Consumers Act 2010, is enforced by Australian Competition and Consumer Commission (ACCC) to protect consumers in Australia. In the Coles Branding case study, Coles made a claim on its canola and vegetable oils that is misleading to consumers. Putting a cholesterol free on the labels of the product is a misrepresentation because the Trans fatty acid ingredient of the oil could potentially increase the level of cholesterol of a person. This is critical to people especially those who have heart problems history in order to avoid any unnecessary consequences on their health. It appears that their cholesterol free claim is contradicting with the effects of the oil in the body. This should be explained by giving advisory statement to consumers about this issue. Free riding with the Heart Foundation logo Due to the similarity of logos of the Heart Foundation and Coles SmartBuy and Youll Love Coles as shown in the images below, it suggests that lower price items are as nutritious as the expensive ones and it is easily recognisable as a healthy option. (SMH Fairfax Media, 2009) Coles Branding Case Study (Cohen et al 2013) The National Heart Foundation of Australia (2016) is enthusiastic in improving the heart conditions and saving the lives of Australian. A white tick with a red circle background is its logo which indicates that an ordinary customer can distinguished healthier options compared to similar food since this is only put on labels of companies that meet their standard for nutrition including fat, salt and fibre. Because of this, it seems like the supermarket brand is somehow using the tick resemblance logo with the foundation to attract customers. Although this is legal, this can still potentially mislead the consumers on buying the right healthy product for them especially some of them are relatively cheaper. An ordinary consumer who has no enough knowledge regarding this matter may not understand this unless it is pointed out to them. In some cases, this may be too late as harm has been done already. Oppositions Argument or Position The consumers should read the label before buying the product. Every individuals needs are different with each other so every consumer has to carefully select the products that they need. This is in particular with the people who are health conscious and needed to limit the amount of certain food ingredients they intake. Sometimes, researching is necessary to avoid consequences as most of the food products are manufactured for everyday consumers and not for any specific types unless stated otherwise. However, this will not be achieved if there are no information included on the product itself by the manufacturer. As suggested by Boatright (2012), ensuring adequate information lies between the buyer and the seller. This means that customer shares responsibility with the seller when they purchase the product. In Australia, there is a contract when a customer chooses a product from the shelf of the shop and pay it in the counter (ACCC, 2017). This is legally binding so the terms and conditions must be understood before buying the product. Penalties may apply if breach in contract happens depending on the scenario. Ethical Decision-Making Approaches and Theories The different ethical decision-making approaches and theories used to reach the conclusions are: Fairness or Justice This is one of essential moral requirement of any market transaction which involves providing adequate information as a form of right. The labelling of vegetable and canola oil could have been provided with more information like warning that even though it does not contain cholesterol, it can still cause to increase its level when taken. Well-being Although the contents of the oil are not harmful, if the person who will consume it has health problems and was not informed properly due to inadequate information, the company is still not protecting the person from any harmful products. Freedom Every consumer has the right to choose the product that they really want. If Coles indicated that a warning, for example, indicating the effects of trans fatty acids or just simply removing the cholesterol free to avoid misleading the consumers, the customers can decide carefully on which product they truly need. Manipulation and Deception The way Coles SmartBuy and Youll Love It brands were being advertised as likely manipulating the minds of consumers into thinking that their products are cheaper but healthy alternative option because of its similarity with Heart Foundations logo. Also, it is likely deceiving the consumers due to misleading information about the claims they made on some of their products. Recommendations There are various ways on how this can be done ethically correct to prevent any unnecessary circumstances to arise. Some of these are: Seller should add advisory statement on the label that once the product is used and consumed, cholesterol level may increase. This is to ensure that customers can choose freely the products that they need base on the adequate information given. Customers should look closely at the products written information and do relevant research if necessary Every customers need is different thus every consumer has to select the products they need. Particularly people with issues needs to limit certain ingredients they take. Thus the manufacturer should include all the information about the product in the label. Ensuring satisfactory information lies among the seller and the buyer. There is contract in Australia that states that when a customer picks manufactured goods from the shelf, must pay for it in the counter before use. This bids legally the terms and the conditions which must be understood before purchasing the product. If the contract is breached, it attracts a penalty depending with the scenario. First and foremost there should be justice which is an essential requirement in any transaction in the market. This involves the provision of right and adequate information. Secondly, even though, the contents in the oil maybe not harmful, if the customer consumes and gets health problems due to inadequate information, the company is n ot protective to their customers from harmful products. Conclusion Lastly, there should be no deception or manipulation. The way Coles SmartBuy was advertised is manipulative to the mind of the consumers, making them think that their products are cheap but healthy. Likely, they deceived the customers with the misleading information of their products. There are ethically correct way of preventing unnecessary circumstances that may arise. First, the seller should include advisory statement when labelling the products that once the product is consumed, there will be an increase in cholesterol level. This will ensure customers can freely choose products that have adequate information provided. Customers should closely look at the written information in the product and research about the relevant information if necessary. References Singh, S Gupta, S, 2016, Business Studies, revised edn, viewed 28 September 2017, https://books.google.com.au/books?id=DxS8DQAAQBAJpg=PT401dq=product+label+importancehl=ensa=Xved=0ahUKEwign6WzyMfWAhXHS7wKHT2tDvYQ6AEIJjAA#v=onepageq=product%20label%20importancef=false. Australian Competition Consumer Commission 2017, False or misleading claims, Advertising and Selling Guide, ACCC, viewed 28 September 2017, https://www.accc.gov.au/publications/advertising-selling/advertising-and-selling-guide/avoid-misleading-or-deceptive-claims-or-conduct/false-or-misleading-claims. Food Standards Australia New Zealand 2017, Truth in labelling, weights and measures and legibility, Food Standards Code, Food Standards Australia New Zealand, viewed 01 October 2017, https://www.foodstandards.gov.au/consumer/labelling/truth/Pages/default.aspx. Grace, D. and Cohen, S. (2013) Business Ethics: 5th ed., Oxford University Press Australia New Zealand. Burke, K 2009, Exposed: home brand deception, The Sydney Morning Herald, Fairfax Media viewed 27 September 2017, https://www.smh.com.au/news/national/exposed-home-brand-deception/2009/01/16/1231608986605.html. National Heart Foundation of Australia 2016, About us, Heart Foundation, viewed 02 October 2017, https://www.heartfoundation.org.au/about-us. Coles Supermarket Australia Pty Ltd 2017, Our History, Coles, viewed 02 October 2017, https://www.coles.com.au/about-coles/centenary. Wesfarmers Limited 2017, Coles, Wesfarmers viewed 04 October 2017, https://www.wesfarmers.com.au/our-businesses/coles. Investopedia LLC 2017, Marketing, Investopedia, viewed 04 October 2017, https://www.investopedia.com/terms/m/marketing.asp. Australian Government 2017, The 5 Ps of marketing, Business, business.gov.au, viewed 04 October 2017, https://www.business.gov.au/info/plan-and-start/develop-your-business-plans/marketing/the-5-ps-of-marketing.