Essay: Marketing Strategy For Myer." (39 Characters)

Discuss about the Marketing Strategy.

The report describes and analyze distinguish marketing and planning strategies of Myer. It provides an accurate industry competition and gives SWOT analysis in order to understand the strength and weakness of the brand, the report provides with recommendations for the brand in order to improve the business strategies in order to improve profits.

The company was established in Melbourne in year 1900 as the largest retail business in Australia. Myer was founded by a Russian immigrant Mr. Sidney Myer. He opened first store and created one of the largest retail chain in Australia. The store was expanded to Adelaide after gaining success in Melbourne Mr. Myer gain success through multiple retail outlets and became a leading philanthropist in the year 2002. Myer joined Grace Bros in 1989 and became the largest store group in Australia. Myer has employed over 14,000 employees and focus on high standards by developing stores all over Australia.  They are continuously altering the business model in order to continually transform the business in a rapid competitive environment. The department store has engaged number of personalities as the fashion brand ambassador.  It was known as Australia’s largest departmental store by the store count and revenue (Myer, 2017).

Current Organizational capabilities and level of core competencies

Myer is the largest departmental store and has a high level of competition at every level.  The industry is extremely competitive and growing at a fast pace in Australia.  The brand couldn’t engage in expanding the brand name in other part of the world. This is due to the fact that the Australian stores are restricted in their own territory. The industry is very much volatile due to impact of external environmental factors (Ryan, 2016). The retail turnover has increased in Australia due to an increase in the growth. The company has incurred revenue of AUS $3.3 billion (2016).  

Strength ·Strategic positioning of a store within an effective shopping environment. ·Market leader in retail industry and known as the largest store in Australia. .strong brand identity with consumers ·Product quality and range is also a major strength  ·Robust customer relationship marketing techniques ·special interest free promotions ·customer loyalty program ·Customer service is a principal strength ·Efficient brand promotional strategies

Weakness ·Price is the main weaknesses ·Positioning strategy might damage the brand in the time of economy downfall. ·cant decrease its prices in the form of sales promotions ·restricted to Australia only

Opportunity .Potential expansion opportunity for the brand ·Development of future strategy in order to increase sales and customer loyalty program. ·Opportunity to develop efficient customer relationship ·Increasing services can extend operations into more service oriented functions. ·Can increase efforts towards the loyalty program to improve customer base (Mullen & Johnson, 2013).

Threats ·Larger amount of threat from the government organization ·Economic downturn ·extensive number of competitors ·Threat of new entrants into the market

The major competitors of Myer are middle and upper class departmental stores. The competition is in the form of premium positioned stores in the market. David Jones and Daimaru are the two competitive brands in Australia mainly used by the upper middle class customers. They are already selling goods at a competitive rate (Varley & Rafiq, 2014). The Australian store has experienced slight fall in the sake due to rising competition. On the other hand the middle class stores like Kmart Target and Harvey Norman creates a regular in-store monitoring and maintenance (Kotler, Keller, Manceau & Hémonnet-Goujot, 2015).

Corporate appraisal

The major part of the main customers is predominantly females. The products are best known as the premium brand category are based on customer choice rather than demand basis.  The different products fulfill the need of the customer based on the individual choice. Myer specifically focus on its sale that is based on the large shopping centers (Kardes, Cronley & Cline, 2014).  These strategic locations are important from the point of view of gaining huge profits. Positioning a departmental store at a strategic place is important from the point of view of prestige (Baker, 2014).

Threat of new entrant

There are obvious barriers in the industry in terms of economies of scale in order to manage the requirements.  The large store unit saves cost by buying goods in bulk quantity. The smaller stores do not have an ability to reduce the cost. The government policies are another barrier for the new enterprise to introduce a new business unit. The new tax system can influence the business on a large extent (Lantos, 2015). The only new entrant can be the companies who are already settled in the industry. It is financially impossible for the business to seed capital in order to establish a competitive unit. This is especially necessary for the large sized business organization like Myer who has to develop strategies looking onto the needs of different department. The risk of entry is very in case of new entrant (Armstrong, Adam, Denize & Kotler, 2014).

Bargaining power of supplier

Large retailers are completely dependent on the suppliers in order to procure goods on a regular basis. There is small number of departmental stores like Myers, Kmart, and Target. Hence it has become important for the stores to develop efficient relationship with the suppliers in order to arrange goods at a competitive price. Retailers are continuously gaining more bargaining power hence it is seen that the suppliers are becoming less powerful than they used to be previously.

Bargaining power of buyers

The most powerful part of the product is its price and hence it is important for an organization to sell goods at a competitive price. Due to the difference in the price of the product it has become important to sell a product at a competitive rate. It is due to the fact that the buyers can switch to some other product which might affect the image of the brand.  It is seen that the customers in the retail sector has a high bargaining power over others.  Myers has an efficient brand image in the eyes of the customers. Myer cannot reduce the price of the products by sacrificing the brand image (Czinkota & Ronkainen, 2013).

SWOT Analysis

Substitutes

For Myer there are varieties of goods that are sold by the other retailer at a competitive price. Apparel kitchen appliances furniture fashion etc has multiple substitutes available in the market. The new trend of online shopping is again posing a threat over the company. The new trends are posing threat to Myer in realizing market capabilities (De Mooij, 2013).

Industry Rivalry

There is already lot of competition in the industry. There are various local and international retailers who are causing extreme level of competition.  There are different stores operating in the industry with the same model. In such a scenario it has become evident for an organization to develop competitive strategies in order to compete in the market.

Customer needs

Firstly it is necessary for Myers to understand the customer’s needs this will help the brand to understand the needs of the customers in order to know target customers. It is seen that the customers in the retail sector has a high bargaining power over others.  Myers has an efficient brand image in the eyes of the customers. Myers is targeting both top and middle consumers. They are supporting both the individual and strategic needs of the consumer in order to attain desired market growth (Sheth & Sisodia, 2015).

Market emergence

The current Australian market has lot of potential in terms of growth. The futuristic growth at Myers is high and the brand has lot many opportunities to expand business in the international market as well. It is highly advisable to the brand that it should develop activities by looking at the requirements of the individual customers. The customers are highly dispersed and the particular market segment requires growth in the coming years (Babin & Zikmund, 2015).

Market boundary

The position of the store is important from the point of view of the sale. In order to procure high level of sales it is recommended that the store should be situated at a place that attract people. There is already lot of competition in the market in such a situation it is recommended that the brand should strategically position its entire store in order to attain high degree of sale(Wrenn, Loudon & Della Bitta,2014).

Served market

Currently Myer is ensuring g that they have secured an effective market position in order to attain strategic difference. Due to the difference in the price of the product it has become important to sell a product at a competitive rate. It is due to the fact that the buyers can switch to some other product which might affect the image of the brand. They are efficient enough to manage the requirements of both the middle and upper class customers (Hollensen, 2015).

Understanding competition

It is evident for a brand to understand the market segment. For every b rand it is important to strategically placing itself in the market so that they can attain desired results. The major part of the main customers is predominantly females. The products are best known as the premium brand category are based on customer choice rather than demand basis (Solomon, 2014)

External Environment

PESTLE Analysis

Political ·The political environment is easy for the brand in order to carry business activity. The Australian government is continuously supporting the retail business. The taxation policies are though supporting the large sized retailers	Economic ·The economic status in Australia is good. The purchasing power of an individual is high. This enables Myers to sell goods to the appropriate customer group. They are serving both the middle class and upper class group. ·The purchasing power of the customers is high that has helped in attaining a secured market place.
Social ·The Social environment in Australia is meeting the needs and requirement of every individual. There are as such no social or cultural barriers. People are ready to make expenditure in the clothing industry. ·The social lifestyle pattern in Australia put significant impact on the individual in order to develop efficient result.	Technological ·The stores are built on high technology that has helped Myers in gaining a significant market position. By looking at the current situation the brand independent n the technology for all the needs. ·The strategic environment in Australia is promoting the individual needs as well in order to compete in the highly competitive environment.
Legal ·The legal obligation is less and retail sector has ample of opportunities to grow in the diversified business environment. ·There is certain legal compliance that is required to be fulfilled in order to attain significant market place.	Environmental ·The strategic location of the store has helped the brand to attain a significant market position. In such a competitive e environment it has become evident to take effective measures to manage the environment and the surroundings.

Conclusion

There are ample of opportunities for Myers to open stores in the global market. This will help in increasing the end number of opportunity for the brand. They should focus more on the promotion and branding strategies. It is evident that the promotional strategies will help the brand to attain a sustainable market place.  They should focus on the strategic location as it will help the brand in gaining a significant market share. In the highly competitive market it is advisable to work in an efficient manner by locating stores at a better place by attracting new customers. Lastly it needs to develop strategies by improving the brand image. This will help the brand in gaining a significant market position

To conclude it is evident that Myers is performing in an efficient manner looking onto the current situations. The report has efficiently evaluated all the strategies necessary to improve the market standing. The brand needs to develop itself looking onto the market conditions. This will help the brand in gaining a significant position in the market.

References

Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of marketing. Pearson Australia.

Babin, B. J., & Zikmund, W. G. (2015). Exploring marketing research. Cengage Learning.

Baker, M. J. (2014). Marketing strategy and management. Palgrave Macmillan.

Czinkota, M. R., & Ronkainen, I. A. (2013). International marketing. Cengage Learning.

De Mooij, M. (2013). Global marketing and advertising: Understanding cultural paradoxes. Sage Publications.

Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.

Kardes, F., Cronley, M., & Cline, T. (2014). Consumer behavior. Cengage Learning.

Kotler, P., Keller, K. L., Manceau, D., & Hémonnet-Goujot, A. (2015). Marketing management (Vol. 14). Englewood Cliffs, NJ: Prentice Hall.

Lantos, G. P. (2015). Consumer behavior in action: Real-life applications for marketing managers. Routledge.

Mullen, B., & Johnson, C. (2013). The psychology of consumer behavior. Psychology Press.

Myer(2017).(ONLINE). Retrieved from: https://www.myer.com.au/ Accessed on 20 April 2017

Ryan, D. (2016). Understanding digital marketing: marketing strategies for engaging the digital generation. Kogan Page Publishers.

Sheth, J. N., & Sisodia, R. S. (2015). Does marketing need reform?: Fresh perspectives on the future. Routledge.

Solomon, M. R. (2014). Consumer behavior: Buying, having, and being (Vol. 10). Engelwood Cliffs, NJ: Prentice Hall.

Varley, R., & Rafiq, M. (2014). Principles of retailing. Palgrave macmillan.

Wrenn, B., Loudon, D., & Della Bitta, A. (2014). Consumer Behavior: Putting Theory into Practice. Textbook Media Press.