Strategic Marketing for Kogan Pantry and Alcohol

STRATEGIC MARKETING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Part 1 Background:......................................................................................................................3
Part 2 External environment analysis..........................................................................................3
Part 3 Company analysis.............................................................................................................5
Part 4 SWOT analysis..................................................................................................................7
Part 5 Recommendation:..............................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic marketing refers to the marketing process in which the company use to maintain
new strategies to improve there marketing process and develop the business in wider context and
improve working of Kogan Pantry and Alcohol. Kogan Pantry and Alcohol works in pantry and
retail sector and they are providing the retail services from 2006 and keep on growing with the
quality services and providing the variety of range product to the audience. The report will
explain all the process of strategic management and company background, external environment
of company.
MAIN BODY
Part 1 Background:
Kogan Pantry and Alcohol is one of the Australia brands which is working in the retail
sector and providing all the pantry items and alcohol to their customers. They are providing
product and services related to the pantry and alcohol sectors in their stores and helping in giving
the best services ot the audience in market within such huge competition. The net worth of the
company revenue is total of $438.7 million in 2019 (Samani and et.al., 2017). The headquarter
of the company is in Melbourne, Victoria, Australia. The company was founded in 2006 and the
founder of the company is Ruslan Kogan. The company works in online retail, consumers and
electronics, travel, mobile etc.
Part 2 External environment analysis
Pestle Analysis is conducted for the determination of external macro environmental factors that
impact its competition, profitability, turnover and situation in the market (Perera, 2017).
Political factors: The political stability of country of operation, i.e. Australia impacts the
profitability of e-commerce site Kogan pantry as retailing involves systematic risks of supply
chain, taxes and quotas which are influenced by the policies present in Australia. The level of
corruption and trade regulations, tariffs, price regulations can influence the company in
maintaining its position in the market.
Economic factors: Macro economic factors like savings rate, inflation rate, foreign
exchange, the aggregate demand and supply, income level of consumers and labour costs directly
affect the Kogan pantry. If there is high cost of labour, the delivery system gets impacted and the
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company is unable to give discounts. If the income level of consumers decreases, the sales drop
low (Wu and et.al., 2020).
Social factors: The demographics, trends, preferences, behaviour of consumers directly
influence the target market for Kogan pantry. If the consumers don’t prefer online market and
instead prefer bricks and mortar store for grocery shopping, the sales of Kogan pantry will be
affected. More young people tend to buy from e-stores while elder generations prefers traditional
way of purchasing groceries (Godrich and et.al., 2020).
Technological factors: The RFID technology incorporated in the store of Kogan pantry
can significantly improve its in-store and warehouse operation, leading to customer satisfaction.
The rate of technological diffusion also impacts the product offerings, value chain structure,
supply chain and logistics infrastructure which is the core business component of the company.
New technologies can help the company in saving costs.
Legal Factors: The legalities in terms of employee legislation, food health and safety
regulations, discrimination laws, intellectual property rights, data protection laws, consumer
protection laws Anti-trust laws of retailing industry can influence Kogan pantry and lead to hefty
fines and law suits in cases of non-adherence. There the company has to comply with all
regulations for the smooth functioning of the operations.
Environmental factors: The emergence of eco-friendly regulations for conduction of
businesses and pressures for reducing the carbon footprint and pollution created in the business
processes have influenced the functioning of Kogan pantry. The company has to indulge in
environment friendly packaging, investment in recycling, waste management, positive attitude
towards renewable energy usage for business procedures (Teeter and Sandberg, 2017).
Porters five forces will be used for analysing the competition that Kogan pantry faces across
multiple areas. It will evaluate the sustainable competitive advantages that are present for the
company and development of strategic position in the retail market.
Threat of new entrants: The entry of new companies in retailing of general merchandise
and grocery can bring innovative approaches and low pricing strategies which can increase the
pressure on Kogan pantry for reducing its costs and offer new value propositions or value-added
services and discounts. Presently, in Australia, many new emerging online retail businesses are
gaining market share, therefore this threat can be termed moderate. The only way to counter this
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