Dr Simhadri Kotapati Exec MBA UTS 1/11/2015
BUSINESS TO BUSINESS MARKETING BLOG
Prolog:
This is the blog for senior executives, MBA’s who are in
big numbers in business with high priority positions in Capital markets.
Blog:
After food retail company
Woolworths, breaking the profit zone with pricing, acquisition of
another company happened, food retail is one of the big market in Australia,
business runs seven days a week, 365 days whole year. Most of the employment,
Farmers, business suppliers are depend on this industry, so we got Coles, after
this ware we go, to invest in the market we got an another opportunity to
invest in acquisition of Grocery market in petrol stations.
Before investing in petrol stations Woolworths after
Coles entered in to retail finance like consumer credit cards to provide easy
shopping of customers as retention strategy.
Woolworths and
Coles decided to Acquisition the Grocery market in petrol stations, what they
do in petrol stations? They supply groceries to petrol stations, and most
importantly they give my pricing what they acquisitioned.
Generally the fuel petrol stations are run with margins
from groceries, margin from fuel is less, income is fixed in the fuel market,
only the
reason of guarantee income, these petrol companies run
this business, but they expect money from Groceries available in the stations
for staff salaries and expenses.
These Groceries are high price than supermarkets because
customer buy here in off office working hours, and urgency time period, customers
are ready to pay the time value.
After Woolworths and Coles invested in acquisition of
these Grocery market, after getting profits in this investments also expanded
to fuel if you buy Groceries in Supermarket you can get discount in petrol per liter,
this become ultimate competition to the existing fuel companies, Supermarket
pricing, Consumer credit cards ( customers feel easy to spend their retail
cards in petro stations), Acquisition of Grocery market in petro stations are
made tough competition like hard to exist in business competition, reached at
the level of reducing their stations, drop down the margins, all this happen
with pricing invention.
After that we don’t no how much invested and how much
business acquisitions takes place. IGA also become Australians asset, All corporate staff started work with energy
with boosting profits, famers and suppliers are very happy in their life’s.
That’s why today everyone expecting to attend my guest
lecture
Any questions about acquisitions, business to business
marketing comment in this blog, or simkotapati@gmail.com
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