Written report
An individual assignment on microeconomics
Instructions
This assignment covers the topics of market structure (Week 5) and the growth and pricing strategies of businesses (Week 6).
Write a report entitled, ‘The competition between Australia’s major grocery retailers and their pricing strategies’.
The report should have the format of an academic report. There should be a title page (containing the title of your report, your name and student ID number), an abstract (a summary of what your report is about and its key findings in no more than 200 words), an introduction, body, a conclusion section and a references section (which will contain details of the sources of secondary data that you refer to).
The word limit for your report is 2,000 words. The word count applies to the introduction and body of your report and excludes the title page, abstract and references section.
The use of primary and secondary data
In producing your report, you are expected to use both primary and secondary data.
Primary data are those collected from first hand observation. Secondary data are those already collected by others and can be obtained from sources such as news reports, government reports, industry publications, reputable websites, books, academic journal papers and university working papers. These sources should be credible. Certain blog articles and information written by users of social media may not be credible sources of information and should not be used.
In Week 7, you will gather primary data during a site visit to the outlets of two major Australian grocery retailers, Coles and Aldi. Gather data about
1. pricing strategy
2. strategies involving nonprice competition
For the first part of your report, therefore, describe these strategies and analyse their usage (that is, explain why a strategy is being used by a particular retailer). At the supermarkets you visit, you may like to record (with photographs and/or in writing) visual evidence of the varieties of these strategies that are used. Craft your report with these photographs and notes.
For the second part of your report, search for and use secondary data to put into context the findings from your primary data. Write about
1. the nature of the competition between the major grocery retailers in Australia
2. their strategies for growing their businesses, and
3. the implications of these for how the major grocery retailers in Australia, namely, Coles, Aldi and/or Woolworths, compete price-wise
The conclusion section of your report should not introduce any new material but should instead highlight your main findings and address the ‘so what’ question (that is, what your findings suggest for the industry).
To support your analysis, to condense your data or to make your report an interesting read, you may use figures and tables containing statistics or informative illustrations.
The questions
These are meant to serve as a guide. Keep them in mind while carrying out your research for primary data and for secondary data. They can also help you keep your report writing focused.
Questions that relate to your research involving primary data:
A. Pricing strategies in general
1. What types of pricing strategies are used? How are they used? Why are they used?
2. Is there evidence of strategies involving nonprice competition (packaging, advertising, longer opening hours etc.)?
3. What kinds of discounting are used?
B. Pricing strategies used against a retail competitor
1. What kind of pricing or nonprice strategies are these grocery retailers using against each other in relation to particular products? For example, are the prices of cans of Coke cheaper in Aldi than in Coles?
2. From the nonprice aspect, are there differences in the quantities offered, in the branding or in the packaging used?
C. Pricing strategies used against the producer of a product
1. What kind of pricing or non-price strategies are being used by these grocery retailers to compete with producers of specific products (for example, for nuts or milk)?
2. When it comes to prices and the appearance of new products, what are the dynamics in pricing strategies that you see?
Questions that relate to your research involving secondary data:
A. The nature of competition in Australia’s grocery market
1. Who are the main players in this market? What kind of market structure best describes it? How would you describe the competition in this market?
2. Are there (or have there been) emerging competitors or recent entrants in this market? If competition has grown in this market, what has driven it? If competition has not grown in this market, what hinders it?
B. The growth strategies used by the major retailers
1. What kind of growth strategies have the major grocery retailers used to expand their market share, company size or their profits? What actions have they taken to grow their businesses, to reduce costs or to further reach out to their consumers?
C. The pattern in the competition between the major retailers
1. Has it mainly been a case of collusion or intense rivalry along the lines of pricing, advertising and branding?
2. Is there published evidence of collusive behaviour between these competitors? Is there published evidence regarding price competition between the major retailers? What does the evidence say?
Referencing
For a guide on how to reference the books, journal papers, news reports and Internet articles that you would be referring to and citing in your report. Alternatively, follow the referencing and formatting guidelines that your lecturer will provide you.