Company Analysis - Report On Wesfarmers Ltd.
11 Pages2627 Words226 Views
Australian National University
Financial Statement Analysis (BUSN2036)
Added on 2020-03-01
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In this document, we will discuss Wesfarmers which is a renowned conglomerate headquartered in Western Australia in the capital city of Perth. It initiated operations in the year 1914 with the distinct aim of providing merchandise to farmers in Australia.
Company Analysis - Report On Wesfarmers Ltd.
Australian National University
Financial Statement Analysis (BUSN2036)
Added on 2020-03-01
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RUNINING HEAD: Company analysis ContentsIntroduction – Company background:.............................................................................................1Department Stores – Service Detail:................................................................................................1Kmart...........................................................................................................................................1Target2TargetMarket:.............................................................................................................................................21.Gender...................................................................................................................................22.Income Group.......................................................................................................................2Target Department Store:................................................................................................................3SWOT Analysis:..........................................................................................................................3Strengths:..................................................................................................................................3Weaknesses:.............................................................................................................................4Opportunities:...........................................................................................................................4Threats:.....................................................................................................................................5Marketing Strategy:.........................................................................................................................61.Celebrities as brand ambassadors –......................................................................................62.Bull’s eye –...........................................................................................................................63.Social Media Marketing –....................................................................................................6Key Recommendations:...................................................................................................................71.Selling Kmart to Revive Target............................................................................................72.Trim Portfolio.......................................................................................................................7Wesfarmers Ltd.Department Store – Target Corporation
Wesfarmers – Target Corporation1Conclusion:......................................................................................................................................7References:......................................................................................................................................9Introduction – Company background:Wesfarmers is a renowned conglomerate headquartered in Western Australia in the capital city of Perth. It initiated operations in the year 1914 with a distinct aim of providing merchandise to farmers in Australia. It was founded by a group of farmers guided by Walter Harper and was then known as ‘The Farmers’ Company’ (Wesfarmers, 2017). Wesfarmers takes immense pride in being one of the largest employers in the private sector with over 222,000 full time employees (Wesfarmers, 2017). The giant conglomerate aims to provide a satisfactory return to its’ enormous shareholder base of 530,000. This group of companies is listed on the Australian stock exchange with a stock price of AUD 41.35 and is a part of AUX50 which lists top 50 companies of Australia (Australian Stock Exchange, 2017). This colossal enterprise is diversified into various businesses like Office supplies, liquor, Chemicals, Energy, Fertilizers, Department stores and coal.Department Stores – Service Detail:Wesfarmers recently launched this new division of department stores predominantly comprising of two of the biggest retail chains of the country Kmart and Target. It is one of the leading businesses of Wesfarmers generating annual revenue of $8646mn (Wesfarmers Annual Report, 2016).
Wesfarmers – Target Corporation2KmartKmart is one of Australia’s leading retail chains with over 200 stores throughout Australia and New Zealand. Kmart has positioned itself as a department store that provides low prices every day with a grand variety of merchandise.TargetTarget offers a sundry variety of merchandise, apparels and home wares. It functions across 300 outlets with the help of a 16000 member team. Sourcing for Target products is predominantly done via Asian markets (Wesfarmers, 2017).This report lays emphasis on the market strategies used by the Department stores divisionparticularly their brand ‘Target’. In order to grasp the same, a brief introduction of the division followed by their marketing strategies has been explained. The tool used in this report is SWOT analysis.Target Market:Phillip Kotler defines target market as a set of well-defined set of customers whose needsthe organization plans to satisfy (Creighton University, 2002). Analyzing target market forms thelaunch pad for introducing any new product or service into the market.Target department stores offers a broad spectrum of products in their outlets and hence they appeal to a large audience. 1.Gender: Essentially women tend to take more responsibility for grocery, home ware as well as apparel shopping in a family and hence they form a significant part of their target market.2.Income Group: Business objective of Target department store is to ensure low price to their customers. Therefore their target market would fundamentally include lower and middle class families who seek good quality products at a lesser price.
Wesfarmers – Target Corporation3Target Department Store:Target is the flagship department store brand of Wesfarmers. The store sells an extensive range of products ranging from clothing across all age groups and gender, home ware items and all-purpose merchandises. This report reflects upon marketing strategies used by Target department store. For better understanding of the firm, SWOT analysis has been used.SWOT Analysis:The foremost objective of a SWOT analysis is to make organizations aware of their internal and external environment and how they can best put that information to use. This method was created in the 1960s by Edmund P. Learned in the book "Business Policy, Text and Cases" (R.D. Irwin, 1969). Strengths: 1.Strong brand name: Inheritance of a strong brand name ‘Wesfarmers’ is one of the biggest strengths of Target Corporation. Brand name helps in establishing a positive goodwill for the company and builds trust among consumers.2.Variety of available merchandize: Target Corporation takes immense pride in the sundry varieties available. This gives consumers a great deal of options and thus helps the firm insatisfying a larger number of buyers.3.Number of stores: Target corporation operates in over 300 stores nationwide (Wesfarmers, 2017). Large number of stores led to increased visibility and greater brand presence.4.Online store available: The availability of an online store creates convenience for consumers and an entirely new customer base of online shoppers. This also gives them anadded advantage over their competitors.5.Designer Tie-ups: Target corporation is recognized for its Tie ups with renowned designers for apparels like Stella McCartney, Dita Von Teese, Zac Posen and even Joshua Goot (Wesfarmers, 2017)
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