Accent Group's Microenvironment Analysis

This assignment requires a comprehensive analysis of Accent Group's microenvironment. Students must utilize PESTEL, Porter's Five Forces, and SWOT frameworks to evaluate various internal and external factors impacting the company. The analysis should delve into the company's competitive landscape, customer segments, supplier relationships, and regulatory environment.

REPORT

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
Marketing situation.................................................................................................................2
Micro- environment analysis of company..............................................................................3
Macro-environment................................................................................................................4
SWOT analysis.......................................................................................................................5
Objectives and Issues.............................................................................................................6
Marketing strategies...............................................................................................................7
Segmentation, Targeting, differentiation and positioning......................................................7
Marketing mix........................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

EXECUTIVE SUMMARY
In this report of Accent group limited company which is a retail industry it is an
investment holding organisation. This company owns and operates different footwear and
apparel stores in Australia and New Zealand. Therefore, study about marketing situation and
marketing mix of Accent group limited is shown over here. The present report contains internal
and external factors of the organisation. Hence, report shows strength and weaknesses of the
company. Present report is about setting target market for the customers. From this report it has
been found that the cited company is making relevant efforts to improve themselves in terms of
marketing and effectively combating with its contenders.
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INTRODUCTION
Accent group limited is a retail organisation which was founded in 1981 and is situated in
Waterloo, Australia. This company owns and operates different footwear and clothing stores in
Australia and New Zealand. It is known as regional leader in the retail distribution of
performance and lifestyle footwear (About us, 2018). This study is about marketing situation and
marketing mix of Accent group limited. Also, it will include micro environment and macro
analysis of the organisation. There will be SWOT analysis, marketing strategies, objective and
issues of the organisation in this report. Also, Segmentation, Targeting, Differentiation and
Positioning will be studied in this study.
MAIN BODY
Marketing situation
This is the situation in which Accent group limited includes research and analysis to
target market, competitors and business challenges. Therefore, organisation plans their strategies
according the dynamic situation of market. Accent group limited is doing a great job in online
delivery of their products and services and has grown their sales to a great extent (Orford, 2017.).
Also, rival company are facing tough competition in the market which has increased a need of
innovation in products. Thus, firm does not update their website on daily basis and this can
decrease market share of the company.
To bring improvement in their goods and services, they are introducing online option for
their customers. Therefore, consumer can get updated information of product on their sites. The
firm also has to face business challenges like similarity between goods with rival company where
competitors offer low price of the product to attain competitive advantage (Accent Group’s
Daniel Agostinelli talks future strategy, 2018). To overcome this situation Accent group limited
needs to bring more innovation and creative idea so that more customers are willing to buy their
goods and can perform better than rival firm. Organisation conduct market research before
introducing new product.
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Micro- environment analysis of company
Micro environment of organisation consists of those elements which are controllable by
the management. Therefore, they are internal factor of the company which affects Accent group
limited. Some micro components which affects the firm are as following:
Competitors: The competitive environment exist of certain basic things which every
firm has to take a note. Therefore, organisation cannot enjoy monopoly for long time. Accent
group has many competitors in the business world like RCG corporation limited is an investment
holding company (Rakesh, 2014). Accent group limited provides footwears of different brands
under one roof that attracts more customers. Thus, it gives huge competition to the rival firm and
with this unique features Accents group limited is better than their competitors.
Illustration:1 Micro environment analysis
Source: (Micro Environment, 2018)
Customers: This organisation is a customer oriented and they make product which are
more in demand. The firm to achieve success in business, must target segmented customers for
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its specific products. By this way customers are considered as most important element in the
micro environment of business. Thus, products sales depend mainly on the degree of consumer
satisfaction (Schalteggers and et.al., 2016). Organisation improve their market condition by
bringing innovation in their goods and services.
Suppliers: This factor affects the price of goods and demand of products in market. This
is because organisation purchases raw material at the lowest rate possible. Thus, suppliers hold
the power when they are largest provider of their goods but company does not purchase
commodity only from one supplier. This give advantage to firm for buying at low price and
reduce cost of production. Therefore, can provide customer goods at cheap cost.
Shareholders: Accent group limited operates as an investment holding company, which
owns and function number of footwear businesses. There are many shareholders of this
organisation some of them are pengana capital Ltd holds 4.95% share of the company, Ausbil
investment management Ltd has 4.75% share and MLC investment Ltd holds 3.82% share in the
organisation
Macro-environment
This is the major external factor and is uncontrollable as it influences decision making of a
company. Further, it is dynamic in nature and therefore, affect performance and strategies of
retail group (Jenkins and Williamson, 2015). PESTLE analysis of Accent group limited is as
following:
Political factor: This organisation has impact on long term profitable due to change in
political environment of different countries (Grünig and Kühn, 2015). Therefore, for every
organisation, political stability is important in order to maintain the economic status of country.
Therefore, organisation has to take intellectual property protection in every new country before
expansion.
Economic factor: As the growth of Australian economy is so good that it gives positive
impact on all retail industry in that country. This is because when there is a growth in the GDP of
a country, there tends to be higher number of customers of goods from retail store. Therefore,
this bring growth in organisation of that country and can expand their business easily in other
countries.
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Social factors: The Accent group limited retail store is affected by changing taste and
preferences of consumer. Nowadays, buyers prefer to shop in bulk and has changed the retail
sector in many ways by bringing variety in several goods instead of one particular commodity
(Carroll and Buchholtz, 2014). Therefore, should adopt changing market condition according to
changes in the taste and preferences of consumers.
Technological factors: In this technological era, retail stores have to incorporate technical
updates in their systems. Thus, it can be in form of offering Wi-Fi services and also updating
machines to digital systems. Accent group limited has adopted digital marketing to make
customers more aware about their innovation and changes in products. Also, firm has created
official website so that it becomes easier for customers to shop.
Environmental factors: Organisation has to meet certain environmental conditions set out
by the governments in an effort of raise environmental safety for both consumers and employees
of unit stores (Song, Sun and Jin, 2017).
Legal factors: The firm by following legislative condition that governs relation between
suppliers and distributors. Thus, nowadays labour law is a big issue for retail sector and company
need to form proper rules and regulations for their worker. Accent group limited is working on
employment law so that problems of workers can be solved more effectively.
SWOT analysis
Strengths
 The strengths of Accent group limited is that it offers variety of unique footwear
collection to its customers (Blockeel, Drakopoulos and et.al., 2016).
 Organisation offers many brands under one roof that is beneficial for customers and
provides products at wholesale price.
 This firm is financially strong and is expanding its business overseas.
Weaknesses
 Company is unable to provide the latest trading update on their web sites and outdated
information about their product is give on site.
 The store sells both cheap and expensive brands to customers. Therefore, it lacks defined
market in the mind of consumers.
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 Organisation has no competitive advantage that sets the firm apart from other retailers
store (Bohari, Hin and Fuad, 2017).
Opportunities
 Accent group limited provides great opportunities for their employees by
encouraging them in training and development.
 They promote equal chance for job applicant or employee’s by giving them fair
treatment (Syazwan Ab Talib and Bakar Abdul Hamid, 2014).
 Company can identify the opportunities for expansion in country where they find
large target group for increasing their market share.
Threats
 Firm provides outdated information on their web sites which lead to decrease in
customer’s demand.
 Change in taste and preferences of consumer can shift their purchasing power to their
rival firm (Shahabi, Basiri, Kahag and et.al., 2014.).
 Even the customers are changing their major shopping habits that can be a threat for both
organisation as well retail industry.
Objectives and Issues
Objectives
 Accent group limited mainly aim at providing goods and services which fulfils
needs and wants of customer’s.
 They are aiming at providing digital platform to consumers so that it becomes
easy for them to shop online (Burns, Bush and Sinha, 2014).
 Their objective is to provide good quality of product with more affordable price to
their customers.
Issues
 Company has to face huge competition in the market and don't have any competitive
advantages over their rival firm.
 Customers are facing issues in resolving their problems related to the purchasing of
products from stores of Accent company.
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 Accent group limited is using outdated technology in digital marketing which can lead to
decline in the performance of firm (Fernie and Sparks, 2014).
 Due to change is taste and preference customers are shifting to rival firm and this is
declining the profit of Accent group limited.
Marketing strategies
For increasing their existence in the marketplace, what organisation want is to create brilliant
consumer experiences. At this moment, company is focusing on 'lazy retailing' which means,
anyone can sell anything when it's discounting (Ottman, 2017). Accent group limited believe in
giving opportunity to reach more customers without devaluing their brand. Thus, they follow fix
price concept and provides no discount on trending products. Therefore, company takes demands
that existed on website and improves sales by supplying products in the market. The organisation
adopts many strategies they are as following:
 Company can increase their sales by bringing more variety and innovation in their goods
and services.
 Accent group limited adopts different pricing strategies to attract more customers and
also provides discounts to their existing customers.
Segmentation, Targeting, differentiation and positioning
Segmentation
The process of dividing a marketplace into contrary groups according to potential
customers and based on different characteristics. Accent limited uses market segmentation to
know needs, wants and desires of their customers (Cross, Belich and Rudelius, 2015).
Commonly firm uses demographic division so that they can find right group of people for their
product. Therefore, they target customers who are willing to pay more for good quality of
products.
Targeting
Accent group limited select potential consumers by choosing appropriate segments of the
market for their goods and services (Sander and Joung, 2014). They aim at earning more profit
by targeting customers who are willing to buy products of high quality.
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Differentiation
Accent group adopts these strategies to develop products which is unique and different
from the product of their competitors (Kim and Mauborgne, 2014). This, can increase
profitability of organisation and help in achieving goals of firm.
Positioning
This strategy helps the organisation to spotlight specific areas where company can
perform better than their competitor in market. Therefore, can enjoy competitive advantages in
retail industry.
Marketing mix
Marketing mix is the combination of factors which are controllable by organisation to
influence the behaviour of customers to purchase its products (Helm and Gritsch, 2014). Accent
group limited adopts those four basic P's to attract more customers they are as follows:
Product: Company build or produce goods and service according to the requirement of target
group of people. Accent group limit adopts this strategy whenever they bring new product or
innovation in their goods and services.
Price: Firm adopts this strategy whenever they want to offer price to customers which can
increase the company’s profitability.
Promotion: This concept helps organisation to promote their goods and services in market place
and bring new customers to the store. Thus, to build brand image in the eyes of consumer and
offer good quality.
Place: choosing right distribution channel for supplying of goods and services is very important
of Accent group limited.
CONCLUSION
From this report it can be concluded that it is the situation in which Accent group limited
includes research and analysis to target market, competitors and business challenges. This study
has discussed about marketing situation and marketing mix of Accent group limited. Also, it
contains micro environment and macro analysis of the organisation. This report includes
strengths and weakness of organisation, marketing strategies, objective and issues of the firm.
Therefore, file has discussed about segmentation and positioning group targeted by the
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organisation. Also, this study involves elements of marketing mix which are product, price,
promotion and place.
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REFERENCES
Books and Journals
Blockeel, C., Drakopoulos, P., and et.al., 2016. A fresh look at the freeze-all protocol: a SWOT
analysis. Human reproduction, 31(3). pp.491-497.
Bohari, A.M., Hin, C.W. and Fuad, N., 2017. The competitiveness of halal food industry in
Malaysia: A SWOT-ICT analysis. Geografia-Malaysian Journal of Society and Space,
9(1).
Burns, A.C., Bush, R.F. and Sinha, N., 2014. Marketing research. Harlow: Pearson.
Carroll, A. and Buchholtz, A., 2014. Business and society: Ethics, sustainability, and stakeholder
management. Nelson Education.
Cross, J.C., Belich, T.J. and Rudelius, W., 2015. How marketing managers use market
segmentation: An exploratory study. In Proceedings of the 1990 Academy of Marketing
Science (AMS) Annual Conference. pp. 531-536. Springer, Cham.
Fernie, J. and Sparks, L., 2014. Logistics and retail management: emerging issues and new
challenges in the retail supply chain. Kogan page publishers.
Grünig, R. and Kühn, R., 2015. The strategy planning process: Analyses, options, projects.
Springer.
Gummesson, E., 2014. The theory/practice gap in B2B marketing: reflections and search for
solutions. Journal of Business & Industrial Marketing, 29(7/8). pp.619-625.
Helm, R. and Gritsch, S., 2014. Examining the influence of uncertainty on marketing mix
strategy elements in emerging business to business export-markets. International
Business Review, 23(2). pp.418-428.
Jenkins, W. and Williamson, D., 2015. Strategic management and business analysis. Routledge.
Kim, W.C. and Mauborgne, R.A., 2014. Blue ocean strategy, expanded edition: How to create
uncontested market space and make the competition irrelevant. Harvard business review
Press.
Orford, S., 2017. Valuing the built environment: GIS and house price analysis. Routledge.
Ottman, J., 2017. The new rules of green marketing: Strategies, tools, and inspiration for
sustainable branding. Routledge.
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Rakesh, C., 2014. Pest analysis for micro small medium enterprises sustainability. Journal of
Management and Commerce, 1(1). pp.18-22.
Sander, J.D. and Joung, J.K., 2014. CRISPR-Cas systems for editing, regulating and targeting
genomes. Nature biotechnology, 32(4). pp.347.
Schalteggers and et. al., 2016. Business models for sustainability: A co-evolutionary analysis of
sustainable entrepreneurship, innovation, and transformation. Organization &
Environment, 29(3). pp.264-289.
Shahabi, R.S., Basiri, M.H., Kahag, M.R. And et.al., 2014. An ANP–SWOT approach for
interdependency analysis and prioritizing the Iran׳ s steel scrap industry strategies.
Resources Policy, 42. pp.18-26.
Song, J., Sun, Y. and Jin, L., 2017. PESTEL analysis of the development of the waste-to-energy
incineration industry in China. Renewable and Sustainable Energy Reviews, 80. pp.276-
289.
Syazwan Ab Talib, M. and Bakar Abdul Hamid, A., 2014. Halal logistics in Malaysia: a SWOT
analysis. Journal of Islamic Marketing, 5(3). pp.322-343.
Online:
About us. 2018. [Online]. Available through: <http://www.accentgr.com.au/about-us/>.
Accent Group’s Daniel Agostinelli talks future strategy. 2018. [Online]. Available through:
<http://www.ragtrader.com.au/shoe-trader/accent-group-s-daniel-agostinelli-talks-future-
strategy>.
Micro environment. 2018. [Online]. Available through:
<learnmarketing.net/microenvironment.htm>.
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