Marketing Audit of Bunnings Warehouse: A Comprehensive Analysis of Kitchen Segment

This report provides a comprehensive marketing audit of Bunnings Warehouse, focusing on the kitchen segment. It analyzes the company's market position, target audience, and competitive landscape. The report utilizes SWOT and PESTLE analyses to identify strengths, weaknesses, opportunities, and threats. It also examines the marketing mix and provides recommendations for improvement.

Marketing Audit
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Contents
Background................................................................................................................................3
Executive Summary...................................................................................................................4
Category analysis.......................................................................................................................5
Target audience-.........................................................................................................................6
Market needs-.............................................................................................................................7
SWOT Analysis-........................................................................................................................8
Competitive analysis-.................................................................................................................9
PESTLE Analysis-...................................................................................................................10
Marketing mix..........................................................................................................................11
Recommendations-...................................................................................................................12
Conclusion................................................................................................................................13
References................................................................................................................................14
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Background
Bunnings warehouse has been a very old warehouse in the hardware manufacturing and
selling units. This chain was developed by Wesfarmers in 1994 in countries like UK, Ireland,
and New Zealand. The company has virus products such as living room, bedroom, kitchen,
bathroom, garden, and laundry. The store has more than 290 stores in the countries with
approximately 30,000 employees. The discussion on the report is on the kitchen segment and
various marketing strategies use to analyze the market position and market values of the
same. Various strategies have been studied to see the effective way to improve the market
structure (Council., 2013).
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Executive Summary
This report highlights the various market feedbacks received by Bunnings and the various
categories to study the same, there are certain strategies used by the audit team to see the
effective utilization of resources in the same. There will PESTLE and SWOT analysis to see
the future scope of the same.
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Category analysis
The various segments in the company can be defined by the total available market(TOM) for
Bunnings and the share of the market (SOM) in the same, the total size of the research can be
taken as more than 100 million in the study, thus that is a target market in the system. The
timeframe and other external factors affect the served available market (SAM) in the research
available market(Council., 2013).
The market trends that have been taken into account in order to see the effective application
of the study are-
Industry development- The development of the industry has been done as per the needs and
demands of the company in the system. The same will decide the future in terms of sales and
revenue (Vanclay, et. al., 2015).
New technology- Introduction of new technology and products in the system leads to various
sales and growth aspects of the system thus helps in dealing with future growth aspects.
Competitors- The amount and the technology that has been used by the competitors has been
affecting the overall process and development of the system. This leads to the serious market
positioning issue.
Market segments that have been studied in the overall process are demographic, geographic,
psychographic, behavioral segments. Based upon them the scope and aim of the project have
been discussed in the system and has been affecting the future of Bunnings.
As per the current trends on the market segments, the forecast has been made in order to
increase the sales to 40% and take a market share of 50 % in the overall market (Vanclay, et.
al., 2015).
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Target audience-
As per the current trend, the target audiences is that entire new house and building ventures
that have been in need of kitchen renovation and updating in the system of the current place.
Moreover, the other audience has been al the miscellaneous people in the need to do so. This
audience has so far been very loyal to the brand and other products in the system. Apart from
that, there are other internal and external stakeholders in the system that has been bringing
business to Bunnings.
The future target audience in the current market are the giant residential apartments and the
different housing societies in the countries. Renovating the places more than 20 years old.
High-end customers in order to renovate their kitchens big restaurants and small budget
restaurant kitchen development. All these along with launching new products and services to
the customers in terms of various ranges of kitchen essential gadgets and utensils. The same
has been used in developing new technologies to target the audience in the remote areas and
upcountry markets. This will help in growing the market share (Vanclay, et. al., 2015).
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Market needs-
In order to do market research in the current market needs the customer needs has been
studied in the matter of the previous services and products given to the customers. This was
done by following 3 steps-
Focus group- In this, there is a focus group that has been selected in order to study the
feedback, demands, and needs of the same. Then there are certain policies that have been
developed on the same.
Social interaction- There are huge feedbacks that can be studied on the social media platform
and other social platforms that have been continuously updating the feedbacks.
Keyword feedback- Based on a keyword there can be detailed analysis to see a particular
need or any specific feedback.
Based upon these features there are certain times a few things that are needed to be changed,
that can be marketing policy, product modification, service or delivery modification. All
these are a few ways to meet the current needs and demands of the customers, they help in
procuring the future needs and demands that can occur or any new product and innovative
technology that could have been launched in order to make the things easier for the
customers(Vanclay, et. al., 2015)..
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SWOT Analysis-
External opportunity - More resources to market the product and services in the system. The
same can be used in order to introduce new technologies.
External threats - The competitors with low cost and similar products and services.
Internal strength- Making new product innovations and provide discount and low cost
services to old customers.
Internal Weakness- Not putting much effort in the marketing on the social media and small
platforms thus ignoring that chunk of the market that has been ready to pay but are unaware
of the company
Leverage the strength- This can be done by putting some time and resources on the marketing
and innovation of the products and keeping the employees trained enough for the same
(Hovardas., 2015).
Leverage the opportunity- There can be a huge customer base in the upcountry and other
countries of the world, thus there should be other business expansion steps taken to increase
the revenue and sales at the same time.
Minimise weakness- By learning from the feedback from the customers and developing new
kitchen products and designs to meet the latest fashions and needs in the system.
Minimise threats- The major threat being the competitors growing market and serving the
same in the system, this can be done in order to see the effective utilization of current
resources to meet the market needs and demands of the system (Hovardas., 2015).
Action plan- The action plan includes:
 Make the team understand the goals
 Use team participation
 Use proper ideas not random ideas
 Allocate the duties
 Make a schedule
 Review and update
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Competitive analysis-
The major competition that has been hindering the growth aspects of Bunnings are companies
like Mitre-10 & Home Timber and hardware, they already have a market share of 2.2$ billion
in the system, the same has been affecting the market position. There can be certain new
policies and products in terms of timber and fittings that have been provided to the customers
on low cost. Although Bunnings already have stored on the major sites at the same time, there
can be a news of a merger between Mitre-10 and timber that might turn the events away from
Bunnings and lead them to a major market position in the world (Bull, et. al., 2016).
This might also increase the sale of them both from 350$ million and 450$ million to collect
more than previous ones. This has been at least 1.5$ million more than Bunnings currently
and has been giving serious competition. The major reason for their profits is that they are
putting more focus on the customer’s needs and demands. They have been working more
towards the low-cost development and overall process and relationship building with the new
and old customers both. They have been collectively entering each other market to have a
larger market in the process. The factor that has been followed by them is that they have
made the product and services easily accessible to the customers and meet their demands
(Bull, et. al., 2016).
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PESTLE Analysis-
Political factors- There are certain political factors that have been affecting the overall
business working of the system. They can be tax laws and industry policies for the kitchen
wares and kitchen services in the country.
Economic factors- The overall budget and the allocation of the resources has been directly
related to the economy of the policies and the respective inflation and deflation affect the
overall cost and delivery services of the company.
Socio-cultural factors- The respective feedback of the customers and the external and internal
stakeholders has been affecting the overall development of the brand image in the market
(Gupta., 2013).
Technological factors- The use of the digital platform in the marketing and updating the
technology in the system has been affecting the growth and development of Bunnings in the
competitive world.
Legal factors- The legal factors can be the new legal issues and the change in the laws that
lead to the change that has been affecting the laws that include the goods and services in the
industry and affecting the cost of goods and services. The same applies to the transportation
and freight charges to be built by the people.
Environmental factors - The current factors that have been doing the work ethically by
keeping in mind the environment and its features while doing the kitchen. The wood and the
other hardware should not increase noise or air pollution in the city. The other features should
be covered to take care of in the future (Gupta., 2013).
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Marketing mix
Product- The products offered by Bunnings are renovation and miscellaneous products of
home and office improvement in the place. They are living room, bedroom, bathroom,
kitchen, garden, the report is majorly focused on the kitchen and its services to the new and
old customers as per their needs and demands.
Price- The price range has been kept affordable and also as the range goes from the simple
kitchen to luxurious kitchenware. They can be seen in order to see the effective cost that can
be used in order to fulfill the needs effectively and gain market leadership in the market. The
price has been set as per the spending power of the people and the major demand that has
been coming up more frequently.
Place- The market for Bunnings is around 2800 outlets with more than 30,000 employees in
UK, New Zealand, Ireland, and Australia. There has been a plan to expand the business in
the other parts of the world in order to get more external stakeholders and business
expansion.
Promotion- The promotions have been made as per the age, gender, race and cultural needs of
the society and at the same time it has been done to cover all sections of the society (Anitsal,
et. al., 2012).
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Recommendations-
 Using digital media to do marketing and doing research on the feedback that have been
received from the customers and the stakeholders
 Using innovation in the products and services in order to achieve better market share
 Keeping competitors data updated and making the policies accordingly
 Adding more discounts and offers for the customers and stakeholders in order to make sure
they do not lose interest in the company. Add more features to the services.
 Making customized products and policies in the system (Anitsal, et. al., 2012).
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Conclusion
The overall report has been discussing the overall audit of the marketing of Bunnings and its
products. The major product studied was kitchen. There has been a study to see the category
that has been used by the company in the process and then analyzing the various factors
affecting the business internally and externally. The target audience has been discussed in
order to see the customer and the other stakeholders researchers have been dealing with. To
deeply analyze the same there has been SWOT analysis done to list the negative and positive
points of the same. Along with that, there is PESTLE analysis done to see the effective
utilization of the resources. The further plan has been developed to see what can be done in
order to use the resources and make sure that nothing is affecting the same in the achieving of
the goals and values of Bunnings.
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References
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