Co-Op Marketing Communications
Co- Op Report
Section 1:
Introduction
The questions that need to be addressed in this report are: • Where are we now? • Where do we want to be? • How do we get there?
With a 5% market share before the takeover of Somerfield, which had a market share of 5% as well, resulting in a new market share for the group of 10% the feel is that with the correct marketing strategy, the Co-operative group can overtake Morrison’s, who have a share of 11%, and become one of the top 4 players in the UK food and drink retail market. To do this, brand image must be improved from its current down-market image to widen the group’s customer base, especially targeting the younger market, and promotion of what the Co-op really has to offer must be stepped up to let the consumer know that it isn’t just a convenience store. The goal is gain a 2% increase in market share to put the Co-op ahead of Morrison’s in the rankings and really start to contend with the competition.
Barriers
• The Co-Op has an outdated image which is alienating a large demographic of their target population especially young people which means that they are failing to capitalise on their potential target audience. • A recent survey showed that 55% of the people surveyed expressed the view that the Co-Op had a down-market image which needs to be addressed if they are to compete with the big players in the convenience store and supermarket scene such as Tesco’s, Marks & Spencer and Asda. • This is especially important as these competitors have also “turned green” eliminating the Co-Op’s distinctive way of operating. • However, even this may not have been enough to set them apart from the competition as the survey also produced results stating that only 20% of the people surveyed were aware of its ethical heritage in food retail. • Only 5% of the respondents to the survey said that they would shop at the Co-Op because of its ethical heritage in food retail. •
Section 1:
Introduction
The questions that need to be addressed in this report are: • Where are we now? • Where do we want to be? • How do we get there?
With a 5% market share before the takeover of Somerfield, which had a market share of 5% as well, resulting in a new market share for the group of 10% the feel is that with the correct marketing strategy, the Co-operative group can overtake Morrison’s, who have a share of 11%, and become one of the top 4 players in the UK food and drink retail market. To do this, brand image must be improved from its current down-market image to widen the group’s customer base, especially targeting the younger market, and promotion of what the Co-op really has to offer must be stepped up to let the consumer know that it isn’t just a convenience store. The goal is gain a 2% increase in market share to put the Co-op ahead of Morrison’s in the rankings and really start to contend with the competition.
Barriers
• The Co-Op has an outdated image which is alienating a large demographic of their target population especially young people which means that they are failing to capitalise on their potential target audience. • A recent survey showed that 55% of the people surveyed expressed the view that the Co-Op had a down-market image which needs to be addressed if they are to compete with the big players in the convenience store and supermarket scene such as Tesco’s, Marks & Spencer and Asda. • This is especially important as these competitors have also “turned green” eliminating the Co-Op’s distinctive way of operating. • However, even this may not have been enough to set them apart from the competition as the survey also produced results stating that only 20% of the people surveyed were aware of its ethical heritage in food retail. • Only 5% of the respondents to the survey said that they would shop at the Co-Op because of its ethical heritage in food retail. •