Marketing Management Strategies of Myer Australia

This report outlines and analyses various marketing and planning strategies of Myer Australia. It acknowledges industry competition and provides SWOT analysis to understand the strength and weakness of the brand in the internal environment. With the help of 4Ps, several recommendations are also justified in order to achieve strategic objective of the firms.

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Marketing Management

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Executive Summary
This report outlines and analyses various marketing and planning strategies of
Myer. It acknowledges industry competition and provides SWOT analysis to
understand the strength and weakness of the brand in the internal environment.
With the help of 4Ps, several recommendations are also justified in order to
achieve strategic objective of the firms.

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Table of Contents
Introduction................................................................................................................................3
5 Cs of Myers Australia.............................................................................................................4
Collecting of information of about 5Cs.....................................................................................6
Developing marketing strategy..................................................................................................7
Justification of marketing mix of the company..........................................................................8
Conclusion................................................................................................................................11
References................................................................................................................................12

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Introduction
Myers operates in the retail industry which generally includes the higher level of competition
as due to larger in size (Matsa, 2011). In 1911, Myer brothers established this departmental
store in Australia. From then onwards, the company has expanded in more than 64+ locations
considering all Australian states.
The aim of the company is to focus on greater investments into their best stores and most
valuable customers. They also need to enhance merchandise and increase the superiority in
the shopping experience to achieve the customer needs effectively. For this, they have to
meet several challenges faces in the retail industry.
The mission statement of Myers Australia states that it wants to become the trusted resource
all over the globe in order to gain success among all the local retailers (Hayward, 2013). The
company also stated that Myer Market is a platform for all Australians to discover
international lifestyle brands and entrainment at one place. This platform is also a user-
friendly shopping destination which is managed by the Australia biggest Department store.
The company use distinctive strategy for the customer awareness by using of slogans which
help them in connecting with the customer on a continuous basis. For example – “There no
other store like Myers”.
Myer Australian makes continuous investment in the digital strategy so that to target
customers and also make strong customer experience towards the brand (Lin, Huang and
Tseng, 2007). The CEO of Myers also stated that they are working on four pillars of strategy
which is based on customer led offers, wonderful experiences, Omni-channel shopping and a
productivity step change. This plan needs the investment of around $600 million which is
divided into five year transformational plans. This gives them significant opportunity to make
deepen their relationship with the customers.
In the current phase, Myers is specialised in 11 main product categories which includes
Women swear, Menswear, Miss Shop, Cosmetics, Accessories and handbags, Intimate
apparel, Homewares, Toys, Electrical goods Children wear and General merchandise. This
shows that Myers has a strength of diversification in their product line which also provides
the company a competitive edge in the retail industry (Newell and Peng, 2007).

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5 Cs of Myers Australia
This analysis is a marketing framework, which help the organization to evaluate the
environment in which they operate. The include –
 Company – In respect to company, the internal and external analysis need to be made
which can be done with the help of SWOT tool. In this tool, a company can evaluate
their internal environment by finding their strength and weakness whereas the
external environment can be analysed by focusing on opportunities and threats in the
industry (Helms and Nixon, 2010).
Strength
 Prolific brand identity in the
Australian retail industry.
 Product diversification and
quality.
 Well maintained customer
relationship.
Opportunities
 Expansion into the online
shopping environment.
 Expand the range of services by
using customer relationship
management applications.
Weakness
 Customer ambiguity relating
with product prices.
 Weakening in the product
positioning due to the needs of
further investments.
Threats
 Complexity of the political
factors in the environment.
 Customer attractions towards
online shopping rather than
purchasing the products by
visiting the stores.
In addition, one of the biggest benefit that is enjoy by Myer is due to their
departmental stores which all are available at prime locations of the Australia. This
also constitutes as a major strength of the company. In terms of weakness, they have
under developed distribution channel, which makes them limited to Australia, and

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thus do not have global presence. In spite of all these weakness, they have an
opportunity as the company can make partnership with the foreign player so that to
develop innovative and creative strategies. Although, this will be difficult for the
company due to the continuous change in business environment and customer taste
and preferences (Mokaya, 2012).
 Customers – The company is offering majority of their product range to the middle
class and upper middle class individuals in all cities of Australia. It is hard for the
retail departmental stores to target all the segments of customers in Australian due to
the dynamic environment as because of this customer taste and preferences are
continuously changing. Most of the customer of Myers, Australia is now more
conscious about health and fitness (Michaelidou and Hassan, 2008). They used to go
for short holidays on most of the occasions and use gadgets considerably. This makes
Myers to plan their marketing strategies and promotional activities for their brands.
 Collaborators – With the help of Myers Supplier of the year award, the company
distinguish all those brands and designers who help them in providing innovative
retail experience to the customers (Ong, 2014). In 2016, Myer key business partner
M.A.C and Toni Maticeski was acknowledged as the best designer of the year for
making innovation presence in the fashion creations. Other collaborators of Myers
includes the advertising agency who gives community assistant to the company and
also the Group Managing Director who play a significant role in the creative and
innovative process of retail business at Myer.
 Competitors – One of the biggest competitors of Myers is David Jones Limited
which is also an Australian departmental store (Goleby et al, 2009). The marketing
and competitive strategy of David Jones is giving strong competition to Myers and
also David Jones has about 45 departmental stores across whole of Australia. Myer
and David Jones follow similar business strategies and that is the reason that they are
not reaching to their target sales figures. However, the sales margin is higher in the
case of Myer with David Jones but Myer is under more debts compare to its other
rivalries. In 2017, the CEO of Myer introduces new competitive pricing policy so that
make a competitive edge in the Australian retail industry.
 Context – Various political affect Myers business operation and challenge their
policy and strategies. Most of the political development unhappy with GST tax levied

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on imported goods. The GST applies for imports worth more than $1000 and they
believe that this will create an unfair playing field for other local retailers and
business. In addition, there is also a question aroused with the cost of GST (for items)
and income benefit of the tax. However, Australia is currently governed by a
parliamentary democracy and this considers that the business environment will be
framed in fairly stable condition and does not have a significant impact on any
departmental store industry. In respect with economic aspect, with the increase in the
Australian GDP by around 2.27%, there will also increase in the retail revenue. Myer
also have a social strength as most of the people who are the customers of Myer have
greater spending power because of stable incomes and established careers. In terms of
technological aspect, the retail industry in Australia has received medium digitization,
which consists of using social media as promotional tool, web advertising and online
shopping. Therefore, Myer have various opportunities in the future in terms of
technological advancement. The legal aspect of environment can be proved to be a
threat for Myer as their operational cost can be increased due to the change in policy
of the Australia government relating to 2.4 increase in the minimum wage.
Collecting of information of about 5Cs
Myer Australia converts their promotional strategy from price based to consumer-focused
promotions so that to target mostly sophisticated customers by giving wide range of products
(Gordon, 2012). The company engage many tactics like “Sunday Deals”, “One day Sales”
and many more to increase the sales. In the retail sectors, Globalization and disruptive digital
innovation also challenge the Myer business and this make Myers to deploy certain necessary
strategies with the help of four pillars to bring and rise the shopping experience in Myers.
The company also use the Roy Morgan data and do substantial research relating to Australian
customer retail segments so that to alter their strategies according to the dynamic business
environment (Siahpush et al, 2009). With this research, Myers recognizes three different
groups of customers which includes –
 High value consumers who want to up-to-date with the fashion.
 Professional successful customers who have an interest in brands.
 Customers looking for every day value products and affordable fashion.

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Myers also gets acknowledge about their rivalries in the retail market who are giving them
tough competition. These competitors are David Jones, Zara and Country Road and they all
are delivering same types of products in different target markets (Craik, 2015). These
departmental stores are also located at several prime locations offering competitive pricing
and also influenced the sales of Myers.
Myers research on their current customer base also supports them to gain knowledge of the
current context of business environment in the field of globalization, and rise in digital
technology. Myers knows that females have dominated the market and it is mainly customer
base due to high prices and brand categories. They are also acknowledgeable that their
goodwill and prestige build the floor on which the business stands and thus they try to build
strong and long-term relationships with the customers.
Myers appreciates each of their business partners and suppliers. This can be analysed through
the Myers reflection when they host the Myers Supplier of the Year award. Myers also
measure the role of each suppliers to creates effectiveness in the supply chain. In 2015, Myer
Australia gives award to PVYT Heritage Brands as the supplier of the year. PVYT help
Myers to connect with various well-known global brand like Tommy Hilfiger, Pierre Cardin
and many others (Xu, Gao and Hammond, 2017). This makes supplier to work proactively
with full passion by providing innovative products and bring the growth in business. They
will also give priority to the organization goal instead of their specific goals.
Developing marketing strategy
According to the market analysis of Myers, which includes customers, suppliers and
competitors, it can be said that Myer needs to target particular market segments to build an
effective marketing strategy. With the help of the research made by Roy Morgan, the
customers’ base can be categorised in to three different groups for the retail products. With
the research, Myer also recognise that around 80% of sales come from the Omni –channel
customer as compare to those customers who buy physically from the stores (Kesselman,
2014). Therefore, it will be recommended that the company should target those customer
bases who are belong to Omni channel segment and also takes various necessary steps to
accept digital technology as a strategy. With the help of various digital means, the company
can provide their customer in-store experience. In addition, once the pilot project is
successful, the digital hub can be rolled out for others stores nationally. For implementing

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this plan, Myer need to recruit chief digital staffs and data officers who can take
responsibility to lead this change process.
It is also recommended to form the value proposition of the local customers with the help of
exciting investment in the up gradation of the stores and altering in accordance with the local
customers fashion likings. Myer can also form value proposition with the Omni channel
customers by bringing changes in their brand makeup and continuous adding new brands to
maintain balance in the retail industry (Clark, Harrington and Myers, 2016). Myer always
consider customer first before making these relevant changes. They can also add more
wanted number of brands in their retail market as this would bring more sales margin. In
addition, the company have also scope in the middle class individuals and in the female
category which can also help the help in enhancing the business vision. Therefore, Sales
related marketing strategies and brand building could benefit the company in dealing with the
competitors as well as build more customer loyalty base.
Considering target market, “exceptional shopping experience and customer focused offer to
sophisticated customers” can also be included in the position statement. Various necessary
steps can also be taken by Myer CEO and other retail officers to improve the customer
service with the help of alteration in the flagships stores and efficient store management.
Myer can focus on low cost and high value product so that to achieve efficient store
management (Miller and Merrilees, 2016).
In respect with upgrading of stores, Myers can do alterations in the lighting and ambience of
the stores and can also give visual merchandising to online customers. The sales performance
of Myer can also be boosted if the company acquire more number of digital services
including the up gradation of their websites. Myer can also focuses on the changes relating
with productivity such as value sharing future business goals with collaborators and
evaluating issue related to occupancy cost and capital investment in each stores.
Myer can also achieve their marketing goals with its high efficient team who are ready to do
work in any culture persist in the store. For sporting the system and gaining throughout
knowledge of the digital process, the company can recruit skilled and capable employees.
They can also provide extensive training to the staff in case of specialised designation. Myer
evaluate the progress and ensures the new strategy with the help of various performance
metrics and thus measuring the growth within set period of time.

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Justification of marketing mix of the company
Four major marketing factors affect the growth of the business in any industry. These four
factors are also called marketing mix which includes product, price, place and promotion
(Martin, 2009). Below are some steps which needs to be considered by Myer in
recommendation of marketing strategy.
 Product – Myer marketing strategy based on customer-focused offer which gives the
customer a superior and exceptional shopping experience. Myer achieves this strategy
with the help of diversification in their product line that satisfy every needs of the
target market. Myer used the combination of right product mix which consists of most
wanted brands and products fulfilled by strong Omni-channel offer. For raising more
target customer satisfaction, the company can invest in brands that give fashion trends
as well as value proposition for the product. Myer can also do tie-ups with global and
well know international designers that can help Myer in delivering significant control
over their business objectives and plans (Bondos, 2017).
 Price – This is also one of the most significant aspect of the Myer marketing
objective. With effective pricing strategy, Myer can increased their profitability and
sales volume. Pricing strategy can also help in shaping the perception of the product
in the minds of customers. To stay ahead of the competitors, their plan will always
include affordable pricing with greater value offers to the customers. The company
can include many brand in their product segment like French Connection, Nine West
and Seed, which help them in fighting the market competition and also save them
from the arrival of new players in the retail market as well as online shopping
challenges. The company can also build the pricing strategies with the help of
effective survey from their customer about the significant things they are looking for
while shopping at Myer. The inclusion of well knows brands like ZARA and H&M
can also help to target affordable price and fashionable relevance in products
(Bhardwaj and Fairhurst, 2010).
 Place – The productivity can be maximised if Myer focuses on the effective
placement and distribution of their product. They can also improve their merchandise
offer by moving to selective distribution or franchising. Myer already had this
competitive advantage as all their departmental stores are located in prime places in
Australia. In respect to Omni-channel, Myer can invest in the swift digital technology

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so that to raise their shopping experience in the internal markets and much larger
platforms. This strategy of Myer to focus on superior performance stores can help
them in revising their sales figures and the restructuring in the cost of products. Their
history represents everything about the Myer as a large departmental store in
Australia. Myer can also achieve efficiency in their supply chain and store network if
they reallocate their space and fine-tune their merchandise in accordance with the
store cluster.
 Promotion – The new marketing strategy of Myer states that the company needs to
invest in attracting the new brands in their stores so that they can always stay ahead of
their competitors. Promotional strategy of Myer is important as it can enhance the
brand identity and thus improves sales. Myer can do effective promotion if they
integrate advertising and various techniques of sales promotion. The increase in the
digital world, a point-of-scale system can be proved as a significant step for stock
management. Enhancing the store network and establishing balance in the digital
marketing can also act as a fruitful step for their marketing strategy in relevance with
the retail channel. The customers can attract to their new brand if the company use
successful promotional techniques like digital marketing, social media websites for
reaching all nationwide customers and sales promotion (Tiago and Veríssimo, 2014).

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Conclusion
This report gives insight into the business of Myers includes its product line offered to the
customer. Myer is one of the largest retail chains in Australia having more than 60 stores and
130 million-customer base. Myer also operates in a highly saturated market and thus
experience difficulty in getting large market share. The critical evaluation of their strength
and weakness including the customers and partners deliver an insight view that Myer has an
advantage of strong brand reputation but now they are challenged by the new entrants in the
markets and the changing customer and preferences needs. For raising their sales volume and
keeping up the sustainable demand in the retail industry, it is recommended that Myer should
develop a new marketing strategy based on superior customer experience and they also put
more efforts on the consumer focused product offer. To be successful in the dynamic
business environment, a light has been given to Myer focusing on the key innovative
marketing concept in the field of product distribution, promotion and pricing under
fashionable products. This can also be proved as a sustainable step in keeping up business
demand in the era of digital commerce and globalization.
In addition, the future retail industry heavily involved technology for achieving sustainable
competitive advantage and in case of Myer, it can be possible if the company try to enhance
the customer satisfactions rather than simply focusing on increasing the product range in their
stores.
For achieving sustainable success, the organizational needs to evaluate their mission and
vision strategies in according with the needs of the customers. A continuous and constant
focus can bring many wonders in the operations of the business. In last, innovative business
should be adopted which can benefit both company and the customer.

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