Issue 1 (Introduction):
1.0 Brief description of the industry and organisation
2016-2017 statistics reflect that the revenue of Australian book retail industry has declined by 10.2% (Ibisworld.com.au. 2017). Diversified factors like emerging competition from online operators, consumers shifting preference towards e-book material, etc. seemed to have affected the growth of the chosen industry. Dymocks Australia has been established in 1879, with its headquarter in Sydney, Australia (Dymocks.com.au. 2017).
1.1 Mission, vision and value of the organisation
The vision of Dymocks is to attain a sustainable, vibrant and profitable environment in the Australian book retail market (Dymocks.com.au. 2017). The mission and the value of the organisation are to remain loyal towards its loyal customers and serve the community with innovative operations (Dymocks.com.au. 2017).
1.3 Marketing orientation
Dymocks is not only restricted its operation to offline bookstores but also extended its business in selling CDS, DVDs and other related items to prevent product saturations. It has been identified that Dynomocks has launched its online stores in the year 2006 to adapt the changing business phase from offline to online operation (Dymocks.com.au. 2017).
1.4 Description of the product lines
The brand has both online and offline presence. The products lines are books, gift cards, gifts, music CDs, DVDs, etc.
2.0 5Cs of the organisation
· Not being able to offer greater discounts than Amazon in the Australian market.
· Greater shifting preferences of the readers towards e-books (Financial Review. 2017).
· Evolving segments like digital books
· Demands of online operations in the international markets
· Increasing demands of e-books
· Greater discounts offered by the online book distributors (Dryden, 2007)
· Amazon’s successful operation in the e-book segment can be Dymock’s potential threat in the Australian market
Hall and Gupta (2011) mentioned that Dymocks in the Australian market is not focusing on any particular rages o customers. It is specifically focusing on the book lovers and placing its product in all possible platforms to increase its product ranges in the Australian market (Mitchell, 2017). The customers spending habit is analysed, based on which the prices margins are set and also the discounted offerings.
The retailers like Booktopia, Collins Booksellers and Amazon is Dymock’s potential competitors. With regards to the present context, Varadarajan (2015) mentioned that presently almost ever book retailers are shifting its operation towards the online market in order to avoid the high pace of saturation in the offline book retail market. Therefore, the business strategies of Dymocks in the Australian market is almost flowed by the majority of its competitors, therefore, the exposure of its USP (unique selling point) is not much recognised in the market.
It has been identified that in the Australian market, Dymocks has partnered with BBC Worldwide to launch its Lonely Planet Hub (Bbc.co.uk. 2017). It has been identified that the partnership had been a testament to BBC in order to expand its present in the Australian retail market, especially Sydney. The partnership was initiated to increased exposure of Lonely Planet Hub and BBC’s products before the final customers and personalise environment.
Advancement in internet mobile, laptop and digital reading technology and readers' changing preference towards online reading materials are affecting the offline bookstores. Therefore, it can be identified from the previous example that the technological advancement and the changing social reading habits are the two factors affecting Dymocks in the Australian market.
3.0 Effort taken by Dymocks Australia for collecting information
The brand manages to segment customers based on purchase history, age, children, reading preferences, marital status, etc (Wehner, 2017). It has been observed that based on the collected information, Dymocks sends email offers to the potential customers. Dymocks introduced it franchise system in 1986 in Australia. In the George Street and Sydney store more that 1.2 million books were displayed. It has also sponsored Australian literary community via various writers’ festivals. Moreover, Dymocks has also partnered with Google eBooks in order to provide Australian customers with relevant sources of both paid and free books.
3.1 Customers’ requirements
3.2 Potential competitors
Amazon has been its major competitor in the Australian market. It has been identified that Amazon accounts for $1 billion of the total $300 billion annual retail sales in the Australian retail market. In 2013, the brand has launched Kindle store on amazon.com.au and managed to created employment opportunity for 1000 employees with its successful operation (Wahlquist, 2017). Readers are interested in the e-reading or digital reading technologies due to the convenience it offers. Kindle had been a beneficial tool where the material would be pre-installed in the device and customers can just get access to the majority of the reading sources (Wahlquist, 2017).
3.3 Business transformation
In 2012, Dymocks has closed its three stores in Hong Kong when the rental contracts were expired (Ibisworld.com.au. 2017). In 2015, Dymocks had closed its flagship IFC Mall and subsequently had to close its Hong Kong office. In the opinion of Wahlquist (2017), it has been observed that after the closure of the IFC Mall store, the figure of Dymocks stores in the Hong Kong market was brought down to five. The remaining stores were expected to operate separately by using the Dymocks name previous to being rebranded (Ibisworld.com.au. 2017).
In the 21st century, the brand had extended its business into segment like CDs, DVDs, etc. The online portal was created in order to meet the changing trends in the book retail sector. This helped the brand to hold 20% market share in the Australian market.
4.0 STP of Dymocks Australia
Varadarajan (2015) mentioned that the customers aged between 15 to 29 years in the Australian market are the majorly inclined towards the digital reading platforms. On the other hand, the customers between 24-37 years prioritised frequent offline purchases. It has been identified that offline business is more profitable than the online business, since, online business incurs greater discounted offerings. However, customers purchasing books from the offline stores are convinced by the selling price of the reading materials and are ready to pay the asked amount. It has been identified that the purchase rate amongst the customers of 15-29 years is more than that of customers who prefer to buy offline (Li, 2010). Therefore, the majority of the book retailers are shifting the offline operation to online platforms in order to tap the potential group to increase its business prospects.
In the opinion of Wahlquist (2017), it can be determined that the brand generally does have any specific target group to focus on. Dymocks generally hits on the prospects that can easily get influenced by reading documents. Therefore, the brand has created both its online and offline presence in order to tap both the segment. In the similar context, Kozlowski and Kozlowski (2017) mentioned that the purchasing rate amongst the customers aged between 15-29 years comparatively greater than the customer's segment between 24-37 years. Therefore, the primary prospect of Dymocks in the Australian market would be the age group between 15-29 years. Therefore, it can be identified that the primary target customers of the brand would be the age group between 15-29 years. Since purchase rate is greater in this segment, thus, it can be estimated that the brand can generate stable revenue from the target customers. On the other hand, the offline business is operating with a decent figure, therefore, operating in both the segment has been a smart strategy by Dymocks in the Australian to avoid the risk of product saturation (Dymocks.com.au. 2017). Against the latter statement, Abdullah Saif (2015) mentioned that the risk likelihood in the online business is comparatively higher. High percentages of customers in other sector have stopped online purchased due to cyber-attacks and crimes. Moreover, the target segments are a most inconsistent group and keep on hoping purchasing action as per new schemes. Therefore, the primary target group can help the brand for a shorter duration.
It has been observed that emphasising on both the online and offline preferences of the customers in the Australian market, the brand has positioned its product lines in both the platforms. Jeanpert et al. (2016) mentioned that with the passage of time customers reading preferences and purchasing behaviour toward the book retail industry are further changing with the advancement of technology. Therefore, customers reading preferences are fluctuating with the technical advancements and economic fluctuations.
The brand has channelized its operation in books, CDS, DVDs, and other online operation in order to tap the potential segments in the Australian market (Prange, 2016). However, readers are having a high preference towards Amazon due to its innovative creation Amazon Kindle. Customers are exhausted with the concept of visiting, purchasing and carrying reading materials. The technological advancement in the present sector has possibly made it possibly for the reading to look for the e-materials with a ‘click-on’ option (Competitionpolicyreview.gov.au. 2017). Therefore, customers are not enthusiastic to purchase products from e-commerce portals. It’s an opportune time for Dymocks to come up with a digital reading material like Kindle, which can not only help reading with reading materials but also serve other education purposes (Kozlowski and Kozlowski, 2017). The price ranges of Kindle are comparatively higher than a reading book or novels. Therefore, customers would not be convinced to purchase the product in case the price range satisfies more than two purposes.
It has already been discussed in the above section that Dymocks fails to provide a much-discounted offering in its products. Therefore, Amazon has managed to penetrate successfully in the Australian market and equivalently converted the majority of its customer’s segments (Competitionpolicyreview.gov.au. 2017). Therefore, it is necessary for the brand to at least include schemes like seasonal discounts, etc. to create a buzz in the market at least for shorter tenure. In the opinion of Li (2010), the customers who have fussy reading attitude prefer purchasing offline platform over online. Therefore, the brand has already managed to form a decent set of loyal customers for its offline business. On the other hand, the customer purchasing frequency is greater in the internet platform; therefore, the specific set of customers waits for innovative and high margin discounts (MBA Skool-Study.Learn.Share. 2017). Therefore, seasonal offerings can help the brand to reduce the price range for shorter tenure and also drawing the attention of high percentage of potential readers.
Jung (2014) stated that in the online platform, Amazon has already managed to lead the market. On the other hand, the collaboration with BBC Worldwide has helped Dymocks to increase its product exposure more in Sydney. Therefore, it can be identified that this partnership was adequate to tap the market of Sydney. Moreover, it has also partnered with Google eBook, which is a partner of almost book brands. Thus, the brand needs to increase its collaboration with further retailers in order to lead the offline retail market. Although, the offline book market is decreasing with time, but Dymocks has still managed to capture 20% shares of the Market.
Dymocks can sponsor the popular sports events in the Australian market. This can help its brand to gain exposure through various ATL (above the line) activities to promote its offline operations.
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