Detailed Internal Analysis and Marketing Plan for Adairs Company

This report presents an internal analysis of Adairs, a leading Australian home furnishings retailer. It examines the company's product line, focusing on its differentiated offerings and vertical integration strategy, which includes private brands and third-party products. The analysis delves into Adairs' ...Read More

Marketing Plan - Situational Analysis and Marketing Segmentation Profile

Internal analysis 1
Contents
Internal analysis.................................................................................................................2
Overview of product line................................................................................................2
Controllable Elements....................................................................................................3
References.........................................................................................................................7

Internal analysis 2
Internal analysis
Overview of the product line
Adairs is leading speciality retailer of the home furnishings in the market of Australia.
The strategy which is followed by the company is to offer the differentiated proposition
that gets combined with the on-trend fashion products, strong value, quality staples and
the superior in-store customer service (Rothaermel, 2015). The company offer bed
linen, bedding, towels, soft furniture's, homewares and child furnishing with occasional
and bedroom furniture (Adairs, 2017). In addition, to this, the company make use of the
vertical integration strategy due to which its 90% range is sold under its private brand
with the 10% of the product range from the third party brands.
The company manages its own private brand that allows the continuous delivery of the
quality products, value and exclusive products to their stores on daily basis. Though, the
management of the differentiation product is not easy for the company as they have to
predict the needs of the customers in which the company is lacking as this is its
weakness. This huddles the company in meeting the needs of the customers in the
market.
Adairs Mission Statement
The company was founded with the mission of helping people to bring the improvement
in the quality of life by forming the customized homes according to their needs. Today,
the mission is to motivate the team to offer the exceptional home building experience to
their team (Adairs, 2017).

Internal analysis 3
Adairs Corporate Objectives
The board committee works with the motive to maximize the performance, generating
the appropriate level of shareholder value with the effective financial returns. The
member of board ensures that interest of the shareholders is protected by the company
(Adairs, 2015).
Controllable Elements
The controllable elements are those inside elements that influence the operations of
company. Some of the elements are discussed below: -
Product differentiation
The financial year 2018 performance reflects the profitability and revenue growth that
can be offered from the strong execution of the products with the effective differentiation
strategy of the company. The strategy related to the product that leads to the success of
the brand is Product differentiation. Adairs offer a wide range of trendy products that
offer value to money to customers and are designed by an exclusive to Adairs.
Moreover, the company is able to survive in the market because of its category range
expansion of products which are similar to the competitors. The product range of the
company is strength for the brand which helps them to deal with competitors. The
weakness of the company is that they are not able to focus on the estimation of the
demand for the products and services that are offered by them due to which they lack
with the opportunities. This loss of opportunity is the benefit for the competitors of
Adairs.
Financial performance

Internal analysis 4
The financial performance of the company is one of the reasons due to which the
company is able to complete their business operations effectively (Hill, Jones &
Schilling, 2015). The below image reflects the performance of the company for the year
2015 to 2018. In the year 2018, the sale of the company was higher than in the
remaining years.
(Source: Adairs, 2018)
The high sales amount leads to high profit which provides a support to the company to
expand their business operations in the other markets. Moreover, the company is
capable enough to meet the interest of their stakeholders which is clear from the EPS of
the company in 2018 which was 18 cent. Earlier the EPS which was offered by the
company was 13 cents in 2017, 16 cents in 2016 and 15 cents in the year 2015 (Adairs,
2018). The data which is given above that Adairs is able to manage their financial
stability.
Physical facilities
The physical facilities of the company are clear from the stores. In the present scenario,
the company has 160 stores in Australia in the formats of Adairs, Adairs Kids, Adairs

Internal analysis 5
Homemaker, UHR and Adairs Outlets. Though, the weakness of the company is that
there is need to bring the improvement in the ambience of the physical stores which is
must to be considered by the company. This affects the customer satisfaction because
they didn’t get the products in the easy way as they have to search more.
The company make use of the omnichannel strategy and this is known as best in class
Omni (Adairs, 2018). The company is expanding business through online mode and this
is found that 13% of the total company sales are generated from online mode. This
approach leads to success to find high engagement and value of customers.
Firm’s technologies
The technologies are must for the company as this is the way through which they can
offer the customized products in the market which is strength. Though, the changes in
the technology can affect the operations of the company which means that the company
need to spend more amounts in expanding the technologies. The technologies will help
in integrating the processes across the board which is lacking in the working of
company and emerges as one of the weakness.
People organization structure & culture and processes
The team members of adairs are able to maintain the consistency of service, product
and in-store experience. According to the survey, the people of the company are the
one with the helpful nature with fill specialist product knowledge (Adairs, 2018). This
reflects the culture of the company is very helpful and team member is enjoying the
culture. The company is willing to improve the customer experience which is possible
through different strategies which include: -

Internal analysis 6
 Focusing on service
 Effective shopping experience
 Continuous retail execution
 Forming team product knowledge
This is found that the process of the company is one of the reasons behind the success
as in process the company ensure that they can offer the strategic initiative that
contributes in managing the business and associated risk.
Talking about the weakness of the company is high attrition rate in work force is
present. This is because of the low salary packages, improper training of the employees
and many others. This affects the working of company because they have to spend
more of their time in hiring new and talented employees. Moreover, this also enhances
the cost of Adairs.

Internal analysis 7
References
Adairs. (2015). Corporate Governance Statement. Retrieved from:
http://investors.adairs.com.au/DownloadFile.axd?file=/Report/ComNews/
20150918/01663263.pdf
Adairs. (2017). Annual Report 2017. Retrieved from:
http://investors.adairs.com.au/FormBuilder/_Resource/_module/51fbMLwe2UG-
5KJ3qHCF4w/file/Adairs-2017-Annual-Report.pdf
Adairs. (2018). Annual Report 2018. Retrieved from:
http://investors.adairs.com.au/FormBuilder/_Resource/_module/51fbMLwe2UG-
5KJ3qHCF4w/file/Adairs-2018-Annual-Report.pdf
Adairs. (2018). Company Overview. Retrieved from:
http://investors.adairs.com.au/investors/?page=company-overview
Adairs. (2018). Home. Retrieved from: https://www.adairs.com.au/
Hill, C. W., Jones, G. R., & Schilling, M. A. (2015). Strategic management theory.
Boston: Cengage Learning.
Rothaermel, F. T. (2015). Strategic management. NewYork: McGraw-Hill Education.