First of all, In order to occupy more market share and make more profit, Coles and Woolworths both cut the price of roast chicken (Low 2016). This measure will make Aldi lose some of their customers. According to Sharp (2013), Market share allows performance to be measured independently of categories growth or decline, it provides another way to judge the performance of the market. Since this metric is in respect to different brands, it is autonomous of the time frame used to calculate …show more content…
This strategy is utilized daily products by Coles, which implies that Coles diminishes the cost of products, for example, salvo, to make it lower than Woolworths (Low 2016). Therefore, Coles can attract more clients than Woolworths. Meanwhile, Coles's aggressive pricing strategy is all about strengthening the value of the brand, attracting new clients out of the competition, the main players and the reward of their existing customer loyalty. According to sharp (2013), brands sometimes change their normal price, usually on the basis of cost increases or decreases, or when there is a major shift in the competitive price. Changing price is a good way to increase volume, profit and attract new customers.
In conclusion, Coles and Woolworths both have their individual advantages, Coles reacts more quickly to its competitors and Woolworth has an integrity supply chain. These advantages help them catch more market share from their competitors and also give support to the price war. This is a clever use of the market pricing theory which can give loyalty clients sentiment freshness and attract new