Marketing Strategies for Bunning: Global Trends, Online Business Model, and Differentiation

GLOBAL MARKETING MANAGEMENT
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Introduction
Bunning is the leading retailers of home improvements and outdoors products in New
Zealand and Australia, major suppliers to projects builders, housing industry and commercial
tradespeople. Operating from networks of larges warehouses stores, small format stores, truss
sites and trades centres, Bunning caters for consumers and business users. Revenues across the
2017 financial year totalled to $11.5 billion. As from December 2017, there were 253
warehouses, 77 smaller format stores, 33 trade centres and three trusses operating across New
Zealand and Australia. As at 30 June 201, the company employed over 40,000 team members.
The Bunning warehouses brand is founded on three strategic pillars: lowest prices, wide ranges
and best customer service. In the late February 2016, Bunning completed an acquisition of home
base, the second largest home improvement and garden business operating in the United
kingdoms and Ireland. At the same period, the company opened in St Albans with further pilot
stores. There were 15 Bunning warehouses and 234 home bases stores operating across the
Irelands and UK1. For the better understanding of the Bunning’s marketing mix, I decided to
collect my information on a weekly basis on the street and also, more importantly, decided to
seek further information from Bunning branch in Perth, Australia.
Of recent, Bunning discounts retailer has been encountering a continuous reduction in the
profits. The reason behind the steady decline is due to higher clearance stocks and ongoing
decline in the sales growth. According to the suggestion from one of the loyal users, For the
Bunning to re-establish in both local and international market, it has to adopt the differentiation
approach from other players in the market. One of the tactics it has taken is the changes in the
physical and service surrounding as its stores as well as business operations.
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Online business model: being constant online users, I think in the contemporary context,
technology is the primary aspects that impact every element of the life. Thus, use of the
technology in the business cannot be overlooked. For the company to improve the situation, it
has implemented an online business model in existing business frameworks to attract
technologically savvy users. On visiting the firm the marketing manager claim, selling more
products at the first price rather than a discounted price is of an essence. He still adds that policy
would assist the company to avert high stock clearance and grow the firm’s revenues generation2.
With the above strategies in place, I contemplate the company will improve the business
situation by promoting sales and reestablishing or repositioning company's' presence in the
Australian retail segment through differentiation3.
Stocking global trends; the company is one of the biggest retailers in the Australia
markets that offer solutions to the customer’s attires, home care, and general merchandise. As
part of the strategy change, the company provides the users with a further collection of various
commodities that are in line with the global demands and trend. The strategic objective adopted
by the firm is to enable it to gain a competitive edge over its opponents. Company’s manager
says that it has taken a differentiation business strategy to regain market share by offering a
better assortment of products and collection as the global trends, better service delivery to the
customers and integrated online business model. The above statement goes along with the
interviewed customers.
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Differentiation through unique business model: through the collaboration of online and
bricks and mortar business model, the company creates a unique opportunity in the market.
According to the literature, most companies in the retail industry depend on either physical
business segments or online business framework to market their products4. Therefore, I guess the
business models have created a competitive advantage for the company as it has a presence and
virtual world that competitors lack.
Marketing mix
Products
The finest marketing components are towards selling quality products which a lack of
demand. I think the marketing executives of Bunning need to improve and examine different
kinds of the products with differing consumer’s preferences. The managers also ought to
comprehend the associations of the goods in the marketplace as it will expand the overall needs
of the firm. Diversity through product differentiation: the company has focused on offering
users with merchandise in line with the global trend. It has enabled the firms to differentiate
itself from the competitors; it has a better understanding of the latest trends and demands in the
international markets. On the visiting the company’s outlets, I can understand the diversity of the
products assortment is one enabling the customers to have several options in the buying decision.
To further understand why the outlets are always full with costumer, I interview one of the
shoppers who say that, the company has created its range of merchandise with the aid of well-
renowned fashion designers that keep track of the global trends, providing values to her
preferences5.
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