Where is Cole Group vulnerable? What should it watch out for?

Question 2 Where is Cole Group vulnerable? What should it notice out for? As a company with millions of node throughout 2, 900 stores, The Coles Group certainly be one of the top companies in Australia and New Zealand. However, it has lost its market plowshare to the more enhanced and focused Woolworths company. The loyalty program battleground between two companies seemed more advantages over the Woolworths side since it gained 40% of market share with less on 50% advertizing spending. There are some possible problems the Coles Group has to consider while managing its broad relationship marketing programs.First, their customer may find it very difficult to understand and remember all the complexity of saving points promotion. Second, it may cost even more in advertising and marketing to inform the customer all the benefits they can get from the diverse collection of Coles Group promotions. People are confused to count all the points, discount, existing value they can get from th e FlyBuys card. On the other hand, The Woolworths offered the simple, logical program of discounts points via WoolworthsCredit Card, so the Woolworths can deliver these loyalty programs to the customer better. Moreover, with millions of members through FlyBuys and Coles Group ascendant MasterCard, the system may misreport the reward points for the customer and cause some serious customer complaints.ReferencesBianca Hartge-Hazelman. (2012, 11 July). The loyalty program battle ground .The Australian financial Review. Retrieved 11 July 2012 from http//www.afr.com/p/personal_finance/portfolio/the_loyalty_program_battle_ground_4hwbD00hKdMWP6verYnLpN Madeleine Ross(2012, 7 Dec). Coles vs Woolworths Whos winning?. Bandt.com.au. Retrieved 11 July 2012 from http//www.bandt.com.au/features/coles-vs-woolworths-the-battle-of-the-mega-marts http//wps.pearsoned.com.au/au_be_kotler_mktgmgt_1/85/21977/5626312.cw/-/5626314/index.html References ca CaseColes Group. (2007). Welcome to Coles Group Li mited. 1 November 2007, from http//www.colesgroup.com.au/Home/ Fenner, R. (2006, 31 July). Coles plans coming back to recoup market share Electronic Version.Retrieved 3 November 2007 fromhttp//www.iht.com/articles/2006/07/31/bloomberg/sxcoles.php. Fenner, R., & Choudhury, A. (2006, 13 March). Coles Myer to offload its department stores Electronic Version. International Herald Tribune.Retrieved 1 November 2007 from http//www.iht.com/articles/2006/03/13/bloomberg/sxcoles.php. FlyBuys. (2007). Frequent Questions Electronic Version. Retrieved 1 November 2007 fromhttps//www.flybuys.com.au/flybuys/ suffice/information/faq.html. Howarth, B. (2007, 3 October). Beer and nappies and so much more Electronic Version. The Age. Retrieved 1 November 2007 from http//www.smh.com.au/news/businessinnovations/beer-and-nappies-and-so-much-more/2007/10/22/1192941044453.html. smh.com.au. (2004, 19 July). Woolworths reports $27.9b annual sales Electronic Version. Retrieved 1 November 2007 fromhttp//www.sm h.com.au/articles/2004/07/19/1090089068573.html?from=storylhs. Woolworths. (2007). The white food people. Retrieved 3 November, 2007, from http//www.woolworths.com.au/