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Place strategy-dairy farmers (milk)

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Introduction

Name:Tingting Peng SID: 40796213 MKTG 806 APPLIED MARKETING STRATEGY Case study 1: place Place strategy-dairy farmers (milk) Current situation I do the research in Woolworths supermarket of the maquarie shopping center. When I enter into the supermarket, The first products I saw are the fresh vegetable and fruits, such as banana, strawberry, apple, etc. on the left is the fresh bread aisle, and there is a single aisle which provide the valued produces. Walk along the bread shelves, then I see the deli which sale lunchmeat, bacon and the like. When you turn right, you can see the frozen area, customers can choose refrigerated items here, and White milk fridge is on the left end, just near the deli. In Woolworths Home Brand is placed in the left, Pura is in the middle of the fridge, and they provide full cream milk, skim milk, and Lite milk, In the right section is Dairy Farmers, And they only provide Dairy Farmers Best, 1 liter, 2 liter, and Lite White, 2litre, That means a range of limited pack sizes and categories for consumes to choose. The fridge is divided into 4 shelves, on the top is the Skim Milk with small pack size, the second is displaced with 1lt milk, the third is 2lt milk, and the bottom is the 3lts. ...read more.

Middle

Certainly, Woolworths also provide car-parking place for their customers who drive a car to go shopping, and I found that customers could have a quick access to the Woolworths from parking place. In conclusion, the location of the Woolworths is very convenient for their customers. Produce Section No one likes their bananas bruised or their strawberries smashed, so it makes sense to buy produce at the end of a shopping trip. However, because produce is perishable, supermarkets want to get rid of it quickly. And since consumers tend to spend more money at the beginning of their shopping trip than at the end, produce sales are markedly higher when it is placed at the beginning of the store 1. Therefore, fresh fruits and vegetables are usually located in the first aisle. So as milk, since it's dairy product, supermarket want to sale it as soon as possible, so the staples like bread, milk, meat, and produce are usually spread throughout the store and generally on the outside walls. This means that there are lots of items between the things you really need and more opportunities for impulse buying. Consumers tend to shop more quickly as they approach the shelf, which contain the products they want. ...read more.

Conclusion

So some consumers are still confused by specialty milks. May be we should consider a new approach to grouping products in the fridge to help the shoppers decide which is the milk for them. For example, we can clearly differentiate milks in the fridge by customer type rather than milk type; maybe have a section for families, a section for young males, and a section for organic and biodynamic milks. (2). We should try to provide 3lt size milk to encounter the competition of Home Brand and Pura Milk. (3). We could put some milk in small pack size in the fridge near the checkouts, because I found that Woolworths just put coca and juice in the fridge. So while customers are waiting in the queue for payment, they can get milk instead of coca or juice when they feel thirsty. Reference 1. Dairy Farmers: our product. Retrieved August 20, 2005, From: http://www.dairyfarmers.com.au 2. Larson, Jeffrey S., Bradlow, Eric and Fader, Peter, "An Exploratory Look at Supermarket Shopping Paths". International Journal of Research in Marketing, 2005 http://ssrn.com/abstract=723821 3. Stella Lee, Caroline Liffman, and Cindy McCulligh 2002, The Supermarket Tour, OPIRG McMaster, Canada 4. Steve Brearton, "Grocery-store Confidential," Toronto Life Magazine, September 15, 1997 5. Robert Matas 1987, "Stocking Shelves Has a Hidden Cost," Globe and Mail 6. Tom Eklof, "Triggering More Sales Through POP, Progressive Grocer 67, vol.9, no.19. ...read more.

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