Digital Marketing Strategy Report for Bunnings Hardware - MKG203

This report presents a digital marketing communications (DMC) plan for Bunnings Hardware, Australia. It begins with an executive summary outlining the report's structure and key findings. The introduction defines digital marketing and its role in attracting customers. A company introduction provides background on Bunnings, followed by a competitive analysis identifying key rivals and their impact. A SWOT analysis assesses Bunnings' strengths, weaknesses, opportunities, and threats. The report then details the target market, positioning, and branding strategies. DMC objectives are established, focusing on brand awareness, sales, and customer base expansion. A DMC mix plan recommends best practices including social media marketing, online PR, SEO, email marketing, and display advertising. The report outlines a monitoring and control framework, using KPIs to measure the effectiveness of the proposed strategies. Finally, the conclusion summarizes the report's discussion and recommendations for Bunnings to improve its digital marketing efforts.

Running Head: Mkg203: Digital Marketing Communications
MKG203: DIGITAL MARKETING COMMUNICATIONS

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Mkg203: Digital Marketing Communications
Executive summary
This report has focused on mentioning the competitive and internal business
environment of the Bunnings Hardware, Australia. It has been mentioned that this company
may use digital marketing communication tools to improve branding. Aim of this study was
to design a Digital marketing communication (DMC) plan for this company. DMC objectives
and DMC mix plan have been determined based on research and both of these parts have
been mentioned clearly in this report. DMC mix plan has recommended the best practices of
DMC to Bunnings. Additionally, monitoring and controlling of this plan has been designed.
At the end of this report, a conclusion has been drawn from the overall discussion of this
report on DMC.

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Mkg203: Digital Marketing Communications
Table of Contents
Introduction................................................................................................................................4
Company introduction................................................................................................................4
Competitive analysis..................................................................................................................4
SWOT analysis...........................................................................................................................5
Target market, positioning, and branding..................................................................................6
DMC objectives.........................................................................................................................7
DMC Mix plan...........................................................................................................................7
Monitoring and control..............................................................................................................9
Conclusion................................................................................................................................10
Reference list............................................................................................................................11

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Mkg203: Digital Marketing Communications
Introduction
Achievement of marketing objectives through digital media refers to digital
marketing. Digital marketing communication (DMC) helps to attract potential customers
towards business. This report is focusing on digital marketing objectives and digital
marketing mix of Bunnings hardware Australia. Competitive and internal business analyses
of this company help in understanding the needs of DMC.
Company introduction
Bunnings warehouse and hardware is a trading firm located in Australia and founded
in 1887. Headquarter of this firm is located in Victoria, Australia. They are having large
warehouse stores, small-format stores, and trade centers. In 2018 financial year they have
gained around $12.5 billion revenue (Bunnings.com.au, 2018). In 2018, they have a total of
375 trading locations that includes 265 warehouses. Around 43000 employees work for this
firm (Bunnings.com.au, 2018). Bunnings provides a wide range of products to its customers.
This includes gardening equipment, flooring, lighting, indoor, outdoor, plumbing and
electrical products. At present, they offer around 45000 products to their customers.
Competitive analysis
Competitive rivalry (high): The main competitors of Bunnings include Mitre 10,
Masters and Home timber and hardware. They produce the same products and have increased
market competition. Improving product quality and increasing communication with
customers can help Bunnings to eliminate competition.

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New entrants (medium): Bunnings is an old firm which has established in the
Australian market. Hence, for new entrants, it will be tough to provide competition. However,
masters have opened jointly with Woolworths that is expected to gain 14% of market share.
The risk from suppliers (high): Bunnings have around 1500 suppliers who supply
different raw materials that determine the cost of products. Source suppliers are located both
locally and globally. A large number of suppliers maintain a stable supply of materials hence
cost remains under control (Kannan, 2017).
The threat of substitution (low): This firm sells a variety of essential products that
are important for building houses. Hence, risk of substitution is low for this firm.
Risk from buyers (high): This threat is high because of availability of competitors in
the market. This threat can lead to loss of customers. Hence, Bunnings must offer products at
competitive prices, which can help to reduce the threat from competitors.
SWOT analysis
Strengths Weakness
● A wide network of approximately
250 stores in Australia
● Availability of low prices and loyalty
programs
● Consultants are well-trained and
skilled.
● Non-availability of a well-designed
online platform
● People can associate them in a
wrong way as less communication is
occurring.
Threats Opportunities
● Increase in competition is seen in the
market.
● This firm can offer a well-designed
online platform for customers.

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Mkg203: Digital Marketing Communications
● Global economic scenario can lead
to less investment by customers on
hardware and houses.
● The number of homeowners in
Australia is increasing.
Analysis
Strengths: The wide network of this firm is their main strength that helps Bunnings
to reach customers effectively. They provide low price services that increase consumer
satisfaction. Hence, these strengths can help this firm to gain a competitive advantage.
Weakness: Lack of well-designed online media is the main weakness, which can
impact on brand awareness and image. More communication with customers helps in
establishing a strong bond by increasing consumers' loyalty (Jackson & Ahuja, 2016).
Threats: growing competition in the market and poor economic scenario can impact
on revenue collection of this company. Hence, proper design of marketing mix needs to be
done.
Opportunities: offering a well-designed digital platform can ease the interaction
between the company and customers.
Target market, positioning, and branding
Homeowners and contractors are a target market segment of the Bunnings. Self-
dependent consumers, builders, and contractors are the main target customers of Bunnings.
This organization understands the needs of these types of customers and off hardware product
accordingly. This organization has positioned its brand by offering a wide range of hardware
products at an affordable price. As mentioned by Rodney & Wakeham Dr (2016), affordable
price of products help organizations to attract maximum potential customers towards their
business. High product quality is helping Bunnings to maintain their brand image. People can

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rely on this brand due to their high-quality products and well-behaved staff. However,
Patrutiu Baltes (2015) have suggested that organizations must use digital marketing
communication tools for promoting their products to a broad market segment. For example,
they can modify their products and price for maintaining higher brand position and they need
to promote these modifications over their website.
DMC objectives
DMC objectives of the Bunnings are mentioned below,
● To enhance brand awareness through digital marketing within the next 8 months
● To increase the rate of sales within the next 1 year
● To enhance customer base within the next 6 months
DMC Mix plan
Several elements can be considered to employ effective digital marketing
communications. Recommendations of best practices are included below,
❖ Social media marketing
This practice allows organizations to use social media platforms to promote their
products. As mentioned by Opreana & Vinerean (2015), Facebook, Twitter, Instagram, and
other social media platforms are being used by a huge number of people. Due to this reason,
it is possible for promoting products on these sites to reach maximum audience within
minimum time and cost. For example, Facebook allows users to consider their advertising
program as a digital communication tool. Bunnings may use these platforms to attract
maximum customers towards their business. On the other hand, management of this company
can communicate with their existing and potential customers through social media.
❖ Online PR

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Mkg203: Digital Marketing Communications
This is one kind of digital marketing communication tool that helps to develop a positive
perception of the business and it is also known as digital PR. Re-tweeting, Positive blocks
and Facebook shares are the best practices that can ensure online PR for particular offers of a
company (Chaffey & Smith, 2017). The Bunnings may consider these practices for their
online PR. They need to invest in both cost and effort to develop good content for online PR.
It is important to mention online PR related facts on the official website to aware website
visitors.
❖ Search Engine Optimization (SEO)
Considering SEO, a company can ensure the best position for their business in popular
search engines. According to Batra & Keller (2016), owners must position their websites on
the top of the search result in Google, Bing, Yahoo and other popular search engines. If
Bunnings can attract new visitors towards their website, they will be able to keep them on
their site. Positioning of Calls-To-Action (CTA) and text may help this firm in this regard.
Hence, it can be stated that SEO is a good recommendation of good practice of digital
marketing communication for the Bunnings.
❖ Email marketing
Email marketing allows organizations to send personalized promotional messages to their
different customer segments according to market demand. As stated by Sahni, Wheeler &
Chintagunta (2018), large organizations send promotional emails to each of their existing
customers based on their buying pattern. The Bunnings may rely on this strategy to retain
their existing customers and they can attract them towards their new product lines. For
crafting the appropriate message and designing the emails, staff of the Bunning must have
special skills including CRM and database analysis.
❖ Display advertising

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Mkg203: Digital Marketing Communications
This digital marketing communication tool allows organizations to attract potential buyers
at the moment they visit their website. As opined by Jackson & Ahuja (2016), it is the advert
that a visitor sees when they visit the official website of an organization. For example, the
Bunnings can include a banner advert or a video advert on the top of their website for
attracting customers to specific hardware products. They may think about designing a Google
Adwords advertisement for ensuring display advertising. Hence, digital advertising is an
effective recommended practice that can help the Bunnings to ensure digital communication.
Monitoring and control
The strategies can be monitored and controlled through measurement of KPIs.
Strategies KPI
Social media marketing ● Measuring post reach
● Measuring likes, comments, and
shares
Online advertising Number of clicks and engagement of people
is a good measure for monitoring this
strategy.
Search engine optimization (SEO) ● Increase in number of leads
● Measuring conversion rates
Email marketing Measuring CTR (Click through rate)
Display advertising ● CTR
● Measuring the reach

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Analysis
Performance of different strategies like email marketing and display advertising can
be measured through CTR. As opined by Key & Czaplewski (2017), CTR helps in measuring
number of people has clicked in particular advertisements or links in email. Hence,
engagement rate of people can easily be measured through this KPI. On the other hand,
performance of social media strategies like facebook, youtube can be measured through
monitoring the interest of target customers. Measurement of post reach and likes, comments
can be considered as a KPI. Feedback of customers can be collected by analyzing the
comments and reviews (Taiminen & Karjaluoto, 2015). If strategy of search engine
optimization works then engagement of people will increase. This can be measured by
analyzing the number of leads and conversions. Conversion rate increases in SEO, if
customers click on a link and perform a specific action like booking of products (Killian &
McManus, 2015).
Conclusion
Bunnings is facing different challenges like huge market competition and poor
planning of digital communication with customers. Application of these digital strategies can
help this firm to gain competitive advantage and mitigate the issue of market competition.
Different modern techniques of market communication like social media can help to establish
strong relationships with consumers.

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Reference list
Batra, R., & Keller, K. L. (2016). Integrating marketing communications: New findings, new
lessons, and new ideas. Journal of Marketing, 80(6), 122-145. Retrieved
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305079910_Integrating_Marketing_Communications_New_Findings_New_Lessons_
and_New_Ideas/links/58499b8108ae686033a768be.pdf
Bunnings.com.au (2018), About, retrieved on 26th august 2019
fromhttps://www.bunnings.com.au/
Chaffey, D., & Smith, P. R. (2017). Digital marketing excellence: planning, optimizing and
integrating online marketing. Taylor & Francis. Retrieved
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Jackson, G., & Ahuja, V. (2016). Dawn of the digital age and the evolution of the marketing
mix. Journal of Direct, Data and Digital Marketing Practice, 17(3), 170-186.
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Kannan, P. K. (2017). Digital marketing: A framework, review and research agenda.
International Journal of Research in Marketing, 34(1), 22-45. Retrieved
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Key, T. M., & Czaplewski, A. J. (2017). Upstream social marketing strategy: An integrated
marketing communications approach. Business Horizons, 60(3), 325-333. Retrieved
from:http://iranarze.ir/wp-content/uploads/2017/10/E5023-IranArze.pdf

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Killian, G., & McManus, K. (2015). A marketing communications approach for the digital
era: Managerial guidelines for social media integration. Business Horizons, 58(5),
539-549. Retrieved from:http://iranarze.ir/wp-content/uploads/2016/10/E2598.pdf
Opreana, A., & Vinerean, S. (2015). A new development in online marketing: Introducing
digital inbound marketing. Expert Journal of Marketing, 3(1). Retrieved
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Patrutiu Baltes, L. (2015). Content marketing-the fundamental tool of digital marketing.
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