Dan Murphy, the first name that comes to many of our minds when we want to buy liquor. As stated, does Dan Murphy really offers lowest prices against the other stores? Does these lower prices attracting customers?
Dan Murphy is an Australian leading liquor super market chain owned by Woolworth limited. They have around 200 stores in the country. Dan Murphy is known for its lowest prices, biggest ranges, huge stores and friendly staff. All these factors making Dan Murphy number 1 in the competition. Dan Murphy’s claims to carry over 7,500 brands of beer, wine and spirits, they also have a Connections range linking you to the rare wines and a wine cellar release program that stores vintages of wine until their peak.
Among all the stores, the prices were low in Dan Murphy against all the other competitors like BWS, Liquor land, First choice, IGA liquor etc. Dan Murphy is spending a lot of time and effort to provide lowest prices on daily basis. The price change team is behind their successful achievement and they work outstandingly to outdo their competitor’s prices. This is why they always say “We do not match prices. We beat them”. They are proving it true by making it happen. The key success behind Dan Murphy lower prices is their pricing strategies. Every day at 5 pm, Dan Murphy price check team will check their prices against the competitors and they will match any prices that you find to be lower and make sure that the prices are the lowest.
Dan Murphy’s says: “At Dan Murphy’s we pride ourselves on offering the Lowest Liquor Price Guarantee*. That means you can shop with confidence that when you buy from a Dan Murphy’s store, you are receiving the lowest price. If anyone offers a lower price than us, show us and we’ll beat it*!” However, in their terms and conditions they state “Competitors’ premises must be within 10 kilometers of our store” (guarantees and go?, 2016).
From above, we can state that Dan Murphy is succeeded in giving the lowest prices. But does these lower prices helping Dan Murphy in getting more customers and profits? Yes. The below figure support this statement. The graph provides the percentage shares of liquor market in Australia in 2015.
The study from Roy Morgan research states that, in any given week, 1.2 million Aussies 18+ (or 23.9% of total alcohol-buyers) shop at Dan Murphy’s, spending an average of $67 each. The result? An impressive 26.3% share of total dollars spent on alcohol during an average seven-day period—well ahead of BWS (Beer Wine Spirits), which has 17.9% of the total weekly liquor spend (Roy Morgan, 2015). With the enormous and well stocked huge store, lower prices, strong online presence and well maintained staff helped Dan Murphy to achieve Roy Morgan customer satisfaction award. Especially the online market of Dan Murphy is helping it in many ways. At present, Dan Murphy is Australia’s biggest online liquor market with an estimated 2 millions of customers performing their transactions. This online market made easy and lead to profit maximization
The final verdict:
After scrutinizing the prices of several stores, the liquor prices in Dan Murphy are lower. Yes they are succeeded in proving their statement “Lowest liquor prices guarantee”. The lower prices, huge stores and friendly staff helps them to stand high in Australia’s liquor market.
The are several factors like location of the store, distance of the store, return policy etc along with the lower prices which decides the customer preferences for liquor purchase. DO you really think the prices in Dan Murphy are lower and if yes, do you prefer Dan Murphy for its lower prices? Please record your response in the comments below.
Name: Bandaru Venkata Krishna Chaitanya
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lacobucci, D. (2013). MM4. Mason, Oh.: South-Western College Publishing.
Pini, A. (2016). How Does Dan Murphy’s Guarantee Such Low Prices?. [online] drinks bulletin. Available at: http://drinksbulletin.com.au/2015/03/how-does-dan-murphys-guarantee-such-low-prices/ [Accessed 2 May 2016].
Roy Morgan. (2016). Dan Murphy’s (and Woolworths) blitzing the Aussie liquor market. [online] Available at: http://www.roymorgan.com/findings/6552-dan-murphys-woolworths-blitzing-aussie-liquor-market-201511152333 [Accessed 2 May 2016].
Wikipedia. (2016). Dan Murphy’s. [online] Available at: https://en.wikipedia.org/wiki/Dan_Murphy%27s [Accessed 2 May 2016].
YouTube. (2016). Lowest Liquor Price Guarantee. [online] Available at: https://www.youtube.com/watch?v=EYY9ZkOXBUo [Accessed 2 May 2016].