Analyzing Marketing Strategies Of Bunnings: A Qualitative Essay.

What Industry Is It?

Is It Consumer Goods?

Supermarket?

Hardware Store?

Characteristics Of Industry?

Type Of Market Structure?

The business environment has meant to consider the external and internal factors that affect the organisational functions including, customers, staffs, supply, demand, and management of the business. In this, the purpose of the report is to properly analyse about the Australia’s leading hardware store Bunnings which is determined through effective marketing strategies. The research is based on the qualitative research with secondary sources of information. The analysis help in marketing strategies that is based on the credible and the academic sources to understand about the trick benefits Bunnings to obtain a better scale of economy. The market trends are defined through the marketing segmentation with strength and weakness which is set through marketing mixtures. The company extends the services which is not only for the aiding clients to make the decisions for shopping in stores but also to drop by stores and shop.

The company has been working on extending itself to the different pillars of services which is not only to aid the clients to make the decisions for shopping in stores but also make it easy for the others to shop. There are potential competitors like the Woolworths which has covered approximately 8% of the vast Australian marketing share through use of the Home Hardware and the Master Home Improvements. Metcash has acquired approximately 7.3% of the market share with using the True Value Hardware and MITRE 10.  

The industry of hardware caters and fulfills the daily basic and extraordinary requirements of the consumers by concluding consumer-driven businesses activities and attributes. The supermarkets or this business giant works in an intermediary position; the industries foster the overall sales growth of the business. The intermediary production including the increased revenue and growth has shown the invariable earning over last four years. Australia’s largest and the profitable home improvement retailer works with 9 lakh customers who are able to shop at Bunning with numbers going up in 2012 of July to 2013. Bunnings potential competitors are Mitre. In the current report, Bunnings has shown an effective approach to be a market leader in the Australian retail industry. The main competitors of the industry have also been identified where Masters have 1,217,000 regular customers, of the overall market share (Sutton-Brady et al., 2015).

Economical aspect: Bunning need to focus on the economic and the central government funding decisions that affect the financial standard of the school.   Economic and financial aspects are the same subsidiary of the concept that depends on the different levels of spending in the discretionary products and goods. (Schaltegger and Wagner, 2017).

Industry Overview

Legal and Political aspect: In the concerned case, the legal and political factors have shown its focus on the legal regulations and laws. Here, the company has focused on the company tax rate at 30% where the unions are set for the Fair work to support the employees with enforcing the consumer laws. The training programs are mainly to ensure the employees who are aware of the rights as employees with the safety in workplace (Schaltegger and Wagner, 2017).. The Trade Practices Act are set for a better support from union.  

Demographic: Demographic environment is defined by the demographic factors that include ethnicity and gender in concern. It includes the concern about how 22.3 million people are knowledge about the different languages and then working between the age of 24-52 years. Therefore, the present situation has shown the change in technological aspects that have created a definite impact on consumer needs and demands (Bennett et al., 2016).

Socio-cultural Factors: Bunnings is mainly focusing on the sustainable plans which include the factors related to supporting the different local communications with diversification in the workforce as well. Here, there are 46.5% of women and 53.5% of men where the company tends to work on the sources of products.

Global:  Global concept states the overall dimension that has comprehensively emphasised the organisational requirements into its considerations. The factors reflecting the market survival has aligned the specific needs of the consumers, the operations have been processed in the course of de-regulation of the trading hour (Schaltegger and Wagner, 2017). Organisations have also offered products that are to maintain exponential growths staying within the global dimensions.

Political: In the present situation, Bunning is able to handle the safety measures with focusing on the enforcement set with WOHS with heavy icon labels.  The organisation has prioritised the company social responsibilities that have included these factors positively in the business operations.

Technological: Bunning includes the technological standards work on the online store with the improvement of the stock inventory with the different levels. Bunnings has been installing the IBM with storage systems with 54TB for the storage available (Schaltegger and Wagner, 2017). In respect to the innovative, the trends have optimistically harnessed the organisational survivals that stimulate the organisation with long-term approaches. In concern to the operational process including business inventories and supply chains, the technological innovation is considered to be involved. (Botha, Kourie, D. and Snyman., 2014).

General environment Analysis

Rivalry among the existing market competitors: The focus is on market competitors with structure set to handle the cost based and competition which is set at the indispensable role of Bunning. The change occurs with the need of installation of new ACs with focus on the integration of boost with business (Forsyth, 2018).

Substitution threats: Bunning threats are of the new entrants with Bunning business that has not been affected by the entrant’s threat. Here, Bunning is considered wit marketing leader in Australia. One need to sort the threats of new entrants (Im et al., 2016). The increase in competitors has also influenced the product innovations to increase in the market. The organisation has introduced products to curb the increased competitors in the market.  

Suppliers Bargaining Power: The supplier bargaining power includes the varied ranges focusing on the best suppliers of Australia and New Zealand with supplying the raw material. Bunning is depending upon the power of the supplier. Therefore, the intermediate selection of the products is delivered within the specified time.

Buyers Bargaining Power: Bunning needs to focus on facing competition with similar companies focusing on the economic instability which results in the investments of the less amount by the customers than the other usual amounts which lead to the diminishing sales (Bradford & Gerard, 2015). Consumers have been ensured with a variety of products and choices that they are able to compare in terms of price and utility through different e-commerce websites and sources.

The threat from New Entrants:  The threats are related to how Bunning is able to work on the customisation with product innovation and household hardware merchant. The increased intensity of this threat has lowered the chances of sustained business future for the organisation (Seethamraju, 2015). The organisation has to incorporate frequent innovative changes and operations in the technological, manufacturing and in its distributional channels.

Bunning has been focusing on the poor scrunity of the competitors, where it is working on tracking the rivals with competitors that does not tend to overtake the siutations. The organisation need to work on the performance with effective for better productivity. It includes power dsitribution for thriving and working of the employees. The setup is based on the boasting of information which is related to the quanity and quality with better presentation at the workplace (Schaltegger and Wagner, 2017). The Australian market has also shown the situations that have reflected the increase of low paid individuals and consumers where the direct. There are certain frameworks and the risks that are related to the poor supplier selection with handling the monitoring of competitors in an effective manner.

Industry Environment

The opportunities are based on offering the online purchasing platform where the people tend to work on building the outdoor hangout places in the homes. The growth is depending upon the country home owners. Online portals, connectivity, and consumer preferences have benefited the company with substantial consumers (Sadgrove, 2016).

The threats have been mainly related to the competitive standard which are from the similar hardware retailers in the country. The growth is for the different companies which takes through the contract maintenance jobs that lead to reducing the hardware purchasing with global economic scenario. It might lead to people investing in the less on houses and more on the hardware industry which can be affected easily. The increase in magnification forces in the Australian market has accustomed the company with limited market shares and threatened the channels with proper product delivery to the consumers (Kapp et al., 2016). The other threat recognised was to compromise the reinforcement of the unskilled workers or staffs affecting the organisational functions.

Being the leading company of Australia, Bunning has been focusing on the leading household hardware with handling the water house catering to the needs of domestic standards. The segment with working on how the services are offering to the organisation with proper designing of the kitchen and setting up tailored air conditions with properly installing the hot water setup. The organisation is to focus on the present assigning with organisational emergence to portray the brunt of environmental forces (Schaltegger and Wagner, 2017). It will identify the specific business activities compromising the various factors including value chain and organisational processes responsible to enhance the company functions.

The tangible assets work on the firm resources with focus on handling the intangible resources that are strong. The company focus on the management with the human resources, with wide range of product. The product innovation skills with the well designing logistics management with strong brand image and reputation. With this, quality and fresh food, with partnership and alliance management with stronger relationship set with vertical integrated business (Sutton-Brady, Kamvounias & Taylor, 2015).

The capacities and capabilities with organisation skills in coordination of resources with putting them to productive use. The running business incudes how the right positioning is set for the right use of resources (Tenhiälä & Helkio, 2015). Distributional channels showing bound-to-bound services and time deliverance system has led the company with better customer hold and loyalty in the marketplace (Im et al., 2016).

Competitive Environment

Brand Marketing: To ensure a positive brand image, Bunning is based on helping the people to understand the strategy. With the in-depth understanding, the advice is about handling the quality and the product ranges in an effective manner.

Innovation: The Company has increased the ability to ensure the products meeting the customer requirements and amends in incorporating innovation through online services and product initiations (Starkie, 2016).

Integration: Bunning has ensured the integral aspects of managing different deals with the contractors and suppliers in synchronising the business activities efficiently.

Supply class chain: In order to gain the competitive advantages in the market, Bunning has focused on the innovation aspect in enhancing the ability to develop R&D section of the company and to focus on its potential consumers (Starkie, 2016).

ERP (Enterprise Resource Planning) is based on the business process management software with allowing the organisation with integration of the applications to manage the business. The automation is based on product planning and development with sales and marketing. The ERP is about the software designed factors with use of larger business to customise and analyse the setup with upgrading and setting the deployment. The study is about the configuration of processes with facilitation of better planning of project (Starkie, 2016). It includes the reduced redundant tasks with assessment of the needs of business. It leads to lowering of the costs of purchasing with management of human resources and payroll. Management Information System (MIS) has shown a high relevance to meet the suitable corner of the organisation. The system will successfully manage the different processes in the market while intending to procure the necessary data for the company (Laudon and Laudon, 2016).

ERP works on providing the repository of information with improving the flow of data in and across the organisation. The cloud ERP is set with the focus on planning production, with the logistics execution and quality management. It includes the project preparation with the business blueprint with final preparation (Starkie, 2016). The current company system has shown advanced technology and with complete automation processes in the organisation. The system and process focus on monitoring, recording and controlling the databases that are essential to be reviewed (Singh et al., 2017). The social media enhancement has generated innovative ideas to the customers and helped the organisation to function better in the marketplace.

Conclusion

The research has successfully provided the substantial information and knowledge about the pricing strategy associated with the company Bunning (Starkie, 2016). The research process has identified the multiple techniques that have allowed the company to gain competitive advantage and to manage the different revenue aspects and enhancing the profits for the organisation.   Analysing the present competitors has led Bunning to maintain market dominance efficiently taking necessary steps to implement augmented systems (MIS) to work competitively in the market.

Reference List

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