Case Study: Global Marketing Management Strategies at Bunning

This report provides a detailed analysis of Bunning's global marketing management strategies, focusing on their marketing mix and adaptation to global trends. The report begins with an introduction to Bunning, highlighting its market presence in Australia and New Zealand, and its brief expansion into the UK and Ireland. It examines Bunning's strategic pillars of lowest prices, wide ranges, and customer service, and discusses the challenges faced by the company, including declining profits due to high stock clearance. The report emphasizes Bunning's shift towards a differentiation approach, including the implementation of an online business model and the stocking of global trends. It analyzes the company's marketing mix, focusing on product diversity, pricing strategies, promotional methods, and distribution channels. Furthermore, the report explores the importance of people, processes, and physical evidence in Bunning's marketing approach, and concludes with recommendations for improving the company's international relationships and revising its pricing policy to ensure profitability and customer value creation.

GLOBAL MARKETING MANAGEMENT
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Introduction
Bunning is the leading retailers of home improvements and outdoors products in New
Zealand and Australia, major suppliers to projects builders, housing industry and commercial
tradespeople. Operating from networks of larges warehouses stores, small format stores, truss
sites and trades centres, Bunning caters for consumers and business users. Revenues across the
2017 financial year totalled to $11.5 billion. As from December 2017, there were 253
warehouses, 77 smaller format stores, 33 trade centres and three trusses operating across New
Zealand and Australia. As at 30 June 201, the company employed over 40,000 team members.
The Bunning warehouses brand is founded on three strategic pillars: lowest prices, wide ranges
and best customer service. In the late February 2016, Bunning completed an acquisition of home
base, the second largest home improvement and garden business operating in the United
kingdoms and Ireland. At the same period, the company opened in St Albans with further pilot
stores. There were 15 Bunning warehouses and 234 home bases stores operating across the
Irelands and UK1. For the better understanding of the Bunning’s marketing mix, I decided to
collect my information on a weekly basis on the street and also, more importantly, decided to
seek further information from Bunning branch in Perth, Australia.
Of recent, Bunning discounts retailer has been encountering a continuous reduction in the
profits. The reason behind the steady decline is due to higher clearance stocks and ongoing
decline in the sales growth. According to the suggestion from one of the loyal users, For the
Bunning to re-establish in both local and international market, it has to adopt the differentiation
approach from other players in the market. One of the tactics it has taken is the changes in the
physical and service surrounding as its stores as well as business operations.
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Online business model: being constant online users, I think in the contemporary context,
technology is the primary aspects that impact every element of the life. Thus, use of the
technology in the business cannot be overlooked. For the company to improve the situation, it
has implemented an online business model in existing business frameworks to attract
technologically savvy users. On visiting the firm the marketing manager claim, selling more
products at the first price rather than a discounted price is of an essence. He still adds that policy
would assist the company to avert high stock clearance and grow the firm’s revenues generation2.
With the above strategies in place, I contemplate the company will improve the business
situation by promoting sales and reestablishing or repositioning company's' presence in the
Australian retail segment through differentiation3.
Stocking global trends; the company is one of the biggest retailers in the Australia
markets that offer solutions to the customer’s attires, home care, and general merchandise. As
part of the strategy change, the company provides the users with a further collection of various
commodities that are in line with the global demands and trend. The strategic objective adopted
by the firm is to enable it to gain a competitive edge over its opponents. Company’s manager
says that it has taken a differentiation business strategy to regain market share by offering a
better assortment of products and collection as the global trends, better service delivery to the
customers and integrated online business model. The above statement goes along with the
interviewed customers.
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Differentiation through unique business model: through the collaboration of online and
bricks and mortar business model, the company creates a unique opportunity in the market.
According to the literature, most companies in the retail industry depend on either physical
business segments or online business framework to market their products4. Therefore, I guess the
business models have created a competitive advantage for the company as it has a presence and
virtual world that competitors lack.
Marketing mix
Products
The finest marketing components are towards selling quality products which a lack of
demand. I think the marketing executives of Bunning need to improve and examine different
kinds of the products with differing consumer’s preferences. The managers also ought to
comprehend the associations of the goods in the marketplace as it will expand the overall needs
of the firm. Diversity through product differentiation: the company has focused on offering
users with merchandise in line with the global trend. It has enabled the firms to differentiate
itself from the competitors; it has a better understanding of the latest trends and demands in the
international markets. On the visiting the company’s outlets, I can understand the diversity of the
products assortment is one enabling the customers to have several options in the buying decision.
To further understand why the outlets are always full with costumer, I interview one of the
shoppers who say that, the company has created its range of merchandise with the aid of well-
renowned fashion designers that keep track of the global trends, providing values to her
preferences5.
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Pricing strategy
For me to comprehend, the prices rates of the Bunning products, I decided to sample the
price of the Bunning's products randomly. Price is one of the essential aspects which influence
the purchasing decisions of the users broadly. All the influential merchandises of Bunning fall
under the specific marketing arrangement6. The company needs to assess and evaluate all the
factors of this particular market structure in an appropriate way to accomplish the best pricing
approach in the whole marketing processes. The customers in the specific marketplace system
get various types of the products choices as all the goods and services are readily available. The
company has changed the pricing strategy by selling the goods at first price rather than a
discounted rate. Cost advantage: the company has reduced its reliance on the discounts and
concentrated on offering better quality products at reasonable rate. According to my view, it
appears like the approach of the firm to minimise the merchandise discount is bound to fails in
the market, but, the facts are Bunning has concentrated on offering high quality produces. The
users have reacted to this strategic favourably as they demand better-valued products at quite a
reasonable rate rather than purchasing inferior quality products.
Promotion
The model of promotional mix comprises different style of advertisement procedures and
approaches in the global business actions. The growth of a suitable commercial and elaboration
of the appropriate promotional mix allows Bunning to assess two-way communication course
between the sellers7. Bunning is specific towards the enhancement procedure of the products
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based on the requirement of the marketplace. According to the employers and present shoppers,
two modes of the promotional and advertisement process that Bunning advances in the
marketing plan exist. It includes the modern styles of publicity and the old-fashioned way of
advertisement. The conventional mode entails notions of using paper media such as statistical
reports, journals and articles. I approve the above statement as have severally seen the articles
about company occasionally. The modern method of advertisement has given the company
breakthrough in the marketing plan for the products. The current process of communication
method comprising using emails, television advertisement and official company’s websites. The
use of social media techniques delivered on of the critical advances and backed to the most
important portion towards the developments course of a proper E-commerce plan8. Bunning
intensely believes and agree with a specific point of the development of appropriate E-commerce
strategies which allows the organisation to assess the wants and demands of the users. The
improvement process of a proper promotional movement enables the Bunning to encompass
every component of marketing including the advertising, packing, sales methodology and sales
personnel. With the assistance of online business model, the company aims at improving the
sales figures and repositions itself in the retailer segment. At this time, I release that online
business model has enabled the company to attract more users and also offered an opportunity to
enhance brand visibility. Other essential benefits include the 24/7 business operations has been
better service delivery to the consumers9.
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Place and distributions
The place is a concept of the geographical location. A direct sales tactic places a positive
influence on the total sales procedure of the organisation. Observing the issue of the convincing
factors, Bunning need to choose the best place where every user finds it expedient towards
establishing proper availability. The organisation needs to improve a good delivery structure
which concentrates on the total business state by upholding a supply chain control and
decreasing the transportation costs.
Additional stores services: another strategy change Bunning has implemented is
broadening the services range that is offered by the firm to its clients and enhancing the service
delivery quality to the clientele. The service speed for the service delivery offered to the users at
their shops is efficient and faster. It has enabled customers to have a suitable impression of the
business operation. Additionally, the change of store structure, setting and extra facilities at the
shop outlets such as in-house coffee shops has improved the brand image in the user’s minds10.
People
Selecting people in a company is one of the critical points which are highlighted in the
development of a proper marketing plan11. The marketing managers claim that notion of human
resources management is one of the crucial aspects and essential concepts which much
10.
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organisation develops. The contributions of human resources generate a vital point towards the
organisation goods achievements. For instance, manager says that company is planning to hire
in-house stylists that would design apparels exclusively for the users by considering the
preferences of each user and also the international trends. Therefore, the strategy would improve
the brand loyalty among the users and also company profits12.
Process
On asking the marketing manager about the process of the company, he responds by
saying, process concepts are essential elements which are included in the Bunning marketing
approach to enhance customer evidence13. The organisation follows a process-linked business
approach that assists in satisfying a large division of the local and international consumers. The
functional process helps the Bunning to achieve a level of intermediate proficiency regarding its
competitors in markets both locally, nationally, and globally.
Physical evidence
According to the brand marketing branch manager, Bunning has two kinds of
possessions; tangible and intangible. The actual users are those assets which customer buys from
the organisation, but its presence can be felt. For instance, the customer’s services and proper
feedback systems are the ideas of the intangible assets which are not visible, but its presence felt.
Both of the possessions are crucial in the improvement of an appropriate marketing plan. Value
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creation: values creation refers providing better products at affordable prices than competitors.
The company has created value for its users as they offer high-end products that are in line with
the international trends14. I decided to interview one of the employers who has worked for over
seven years in at Bunning. She says that company provides a better service to its customers, both
in-store and post-purchase to retain the customer and grow the value proposition. The company
also offers value to its clients by providing personal styling options, t-shirt printing, better store
layout, a range of specialty products, coffee shops and visual merchandising to motivate
customers to linger15.
Conclusion and recommendation
From the above analysis and discussion, I can conclude that is essential to understand the
efficacy of the approach adopted by Bunning. Initially, the company has been relying on taking
the new online business model. Unlike the traditional model, the innovative methods help to
generate revenue in the online process16. Also, it is in my knowledge that current customers rely
on the internet and thus revising the existing business policy is highly essential for the
management of the firm. The Bunning can build a healthy international relationship by
integrating online model between the employees and uses17. Additionally, the company has
recommended the selling at first prices rather than discounted rate. The revised pricing policy
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ensures that corporation must avoid high stock clearance at the same period enabling a revenue
generation.
Since the total numbers of Bunning’ stores are less in the market and to gain the
customer's attraction, I think it is wise and essential for the company to expand the style of the
outlets. Apart from that, the company should have a close look at the global trends in the retail
sector and revise the existing policies based on the international market trends. Global markets
trends of the retailers offer more payments options, and at the time of incorporating the online
business model, the firm must broaden the section to upsurge the level of user’s satisfaction.
More service must be added to the click and pay facility of the mobile phone initiatives which
would help the company to get more number of the online customers. Therefore, going through
all these approaches of the company, I can state that selecting marketing strategies are justified
enough and it is projected that the firm would rejuvenate with the assistance of the approaches18.
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