Analysis of Bunnings Warehouse Marketing Mix and Strategies for Growth

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MARKETING MANAGEMENT
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Table of Contents
Introduction.................................................................................................................................................4
A brief description of the organisation....................................................................................................5
Issue 2.........................................................................................................................................................6
5Cs for ‘The Burning Group Company’:.................................................................................................6
Issue 3.........................................................................................................................................................9
How does the firm go about collecting information.................................................................................9
Issue 4.......................................................................................................................................................10
Marketing strategies..............................................................................................................................10
Issue 5.......................................................................................................................................................14
Developing marketing tactics for Bunning Group:................................................................................14
Recommendations.....................................................................................................................................17
Conclusion.................................................................................................................................................18
References.................................................................................................................................................19
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Introduction
Marketing management is very important for every company as it helps in promoting
manufactured products and services. Bunnings Group is being considered in this context which is
dealing in the industry of hardware. In this project, a brief description of the venture is going to
be discussed. In addition to this, 5Cs of the company will be described where the different
aspects such collaborators, competitors, strength of venture, its weakness, impact of various
macro environmental factors on its business activities will be highlighted. Different theories and
models related to marketing will also be explained in the report so that learners will get aware
about the same.
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A brief description of the organisation
Bunning is a company that works under the company name of Wesfarmers which works as the
major retailing store in Australia which is famous to provide the product at the lowest prices
possible. Bunning Group is a trading company which is famous to provide the international
household hardware products. The chain is working under the brand name of Wesfarmers since,
1994. The company owns its store in Australia as well as New Zealand (Bunnings Warehouse,
2018). The Bunning Group was founded in Perth that is the part of Western Australia. The
company was founded by the two brothers who belong to England. The company later becomes
the Public company from the limited company in the year 1952 and started dealing the retail
business of hardware products.
The mission of the company:
The company is committed to providing the customers with a wide range of products related to
home and outdoor living related to hardware at the lowest price possible in the market against
any other brand in the market. The company considers its employees and the team members as
the soul of the company as they are responsible for providing the best possible services possible
ion the market. The company communicate with its employees through the best services with
the slogan of Lowest price are just the beginning (Bunnings Warehouse, 2018). The slogan of the
company helps the company to keep and maintain the trust of the customers.
The marketing strategy of the company
The company execute it’s the effective marketing by providing the best quality of hardware
product in the market of Australia and New Zealand through its lowest price. The company also
takes the reviews and queries of the customers very seriously to implement them in the decision-
making process of the company. It helps the company to maintain its current position in the
market and enhance it for future development.
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Issue 2
5Cs for ‘The Burning Group Company’:
5Cs can be used for determining various aspects related to the corporation which is described
below:
Company: The Company is mainly dealing with the household hardware which is used for the
daily purpose in the household as well as for outdoors. The Bunning Group is a well-known
company in the market of Australia as well as New Zealand to provide the services at the lowest
price possible. The products of the company are high in quality and are considered quite useful
in the longer. The SWOT analysis of this venture is mentioned below:
Strength: The products of the company are quite high in Quality as they are best regarding their
performance in the longer. The Company provides the best price at the lowest price. They have a
strong team who are giving their best efforts in attaining the aims and objectives of the
Company. They are also having a stronger base of the active reseller (MBA Skool.com, 2018). In
addition to this, they are gaining lots of competitive advantages as they are offering better
products and services in comparison to their competitors.
Weakness: The website traffic is quite low for this company. This will create a threat in the
future. Apart from this, the area comprising of narrow product lines and are focusing on backup
and recovery. The company is also facing a hard time in receiving the funds from the market
through loans or financial resource.
Threats: The existing competition for the company in the market in another big threat for the
company as the competitions have been increases day by day and are touching the height of the
sky. The business of the firm can be influenced by the cloud disrupt.
Opportunities: The products of the company are highly demanded in the international market
due to its quality and services which makes it unique and stand out company. This shows the
wide scope for the company to grow itself in the international market (MBA Skool.com, 2018).
Customers: The customers of the company are quite loyal towards the company due to its
quality and higher shelf life which makes them quite durable to use them for the daily purpose. It
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helps the company to create strong position in the market which also helps the company to fight
through the competition in the market. They are making a good and healthy relationship with
their estimated users so that they can retain them for a long time period.
Figure 1: 5C's of marketing strategy
Collaborators: The Company works under the brand name of Wesfarmers which is another big
supply chain retailer of Australia. It helps the company to share loss and profit and also help the
company to fight through the challenges of the market together. It also helps the company to
involve new and innovative product in the market.
Competitors: The competitors of the Bunning Group are other retail stores that are existing in
the market. They are offering goods and services on the internet as well. If a company wants to
compete with these rivals efficiently, then they have to sell their goods and services with the best
possible quality possible about their rivals (Baker, 2016). In addition to this, they can also offer
innovative and unique services to their users so that they get attracted towards them and would
not move to other ventures in search of better products.
Context: There are some factors such legal, technological, social and political which are
impacting on the business of the Bunning Group. The governmental norms and policies like
taxations are giving a great influence on the performance of venture as most of the money of
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company get spends in paying such taxes only (Todorova, 2015). On another hand, by the
advancement of technology, the level of competition gets increased as all other firms are using
modern technologies in expanding their market by selling hardware via online. At the same time,
the culture and tradition of common citizens are impacting on the business of the company. They
are demanding the products as per the changing trends and if they are not satisfied with the
services of the venture, and then would not prefer them. Thereby, the sales rate of a corporation
tends to fall.
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Issue 3
How does the firm go about collecting information
The information regarding the Bunnings Warehouse is collected by doing deep market research.
The official website of the Bunnings Group is being used in this context. Hence, it can be said
that the facts and figures gathered about the company is reliable and correct (Prajogo, 2016). In
addition to this, some of the data is collected from books, journals, and newspaper. Apart from
this, some facts are also gathered from specific websites that are present over the internet.
a. What do customers want?
After doing research, it has been found that the customers are demanding quality based
household’s hardware products and services. They wish to purchase such products which are
cheap and best. In this context, Bunnings Group has to offer good quality products and
services to the customers at affordable prices so that the common public can be able to
purchase the same.
b. Which competitors pose a threat?
By doing an investigation, this has been found that some of the rivals are present in the
market that is offering similar goods and services to the people. These are Home Timber
and Hardware, Masters Home Improvement, Mitre 10, Armacell, etc. as they are giving
great competition to the corporation (Payne, Frow and Eggert, 2017). Due to the presence
of such competitors, the customer base of the Bunnings Group has been decreasing day
by day since large numbers of their customers are using the services and goods offered by
their challengers.
c. How the context of business is changing, if at all?
The context of business such as political factors, environmental, technological and social
factor is changing after a particular period (Plank, 2018). For example, the government of
a specific nation is changing and is imposing different norms and rules on the industry of
hardware. This is impacting the working and performance of the Bunnings Group.
d. What role do collaborators play in the process?
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The collaborators are playing an important role in the business activities of the Bunnings
Group. They are working with the venture and are helping them in running their business in
an efficient manner.
Issue 4
Marketing strategies
The Bunnings Warehouse should use appropriate marketing strategies to run their business
effectively. Market segmentation can be used as one of the marketing strategies. This is
commonly used to segment the business market into a specific group by some shared
characteristics. The segmentation of the market can be done by using the following tactics:
Demographic segmentation: The overall customers can be divided into specific one into the
ground different factors such as age, family size, occupation, gender, income, nationality,
religion, and race. Bunnings Warehouse can use this market segmentation theory in dividing
their expected customers. For example, they can select their users by their family size,
occupation, and income.
Behavioural segmentation: This is the way of segmenting the whole population on the ground
of their behaviours, decision making, and usages patterns. Bunnings Warehouse can use this
strategy in identifying their audiences by analyzing their buying patterns, decision-making style,
and usage patterns.
Psychological segmentation: This technique is used in dividing the population by their living
style, activities, opinions, and interests (Nagle and Müller, 2017). Bunnings Warehouse can
segment their customers on the ground of their lifestyle, interest, thinking, and views or opinions
and offer them products and services accordingly.
Geographic Segmentation: This kind of market segmentation segments the people on the
ground of geography. The needs of customers get changes on the ground of geography where
they are located in. Bunnings Group can also use this strategy in segmenting their audiences by
geographical location.
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Figure 2: Market Segmentation
Choice of the target market
Thus, by examining the above-based strategy of segmenting the market, it can be said that the
Bunnings Group should use demographic, psychographic and behavioural segmentation. Hence,
they can focus on those customers according to their income and occupation. In addition to this,
the living style, purchasing behaviours and opinions of the clients can also be considered in this
context.
The value proposition of the target market
The Bunnings Warehouse should create a value proposition statement for the targeted market so
that they seek the attention of those people who belong to such target market (Lovelock and
Patterson, 2015). The value proposition statement of the firm is following:
“Our company will provide you products according to your domestic needs and choices at cheap
rates”.
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A positioning statement for the target market
The Bunnings Group should also frame a positioning statement so that they can ensure that their
company is fulfilling the needs of the estimated customers. This is created below:
“We are offering products and services of best quality and the money will be returned if any
defect will present in the deliverables”.
Apart from this, the Bunnings Group should use different another strategy for doing effective
marketing. Some of the other marketing strategies that can be used by this venture are the
following:
Use of social media platform: The Company should make use of various social media
applications to promote their goods and services. In this context, they can make use of
applications like Facebook, Whatsapp, YouTube, Instagram, etc. The venture should convey
important to their clients at a single platform to make aware them about their deliverables (Fine,
2017). For example, at Facebook, they can post images of goods and services provided by them
along with its cost. This helps customers in selecting commodities as per their budget and
purchases the same easily without making lots of efforts.
Using LinkedIn in the right way: The Bunnings Warehouse should introduce themselves and
their business at the platform of LinkedIn. This is a very easy way of doing passively marketing
the business in an efficient manner (Kirchoff, Tate and Mollenkopf, 2016). This helps them in
reaching to a large number of audiences especially when their post goes viral.
Start blogging now: The Bunnings Warehouse should start a blog for showing their business
activities to the expected customers. A lot of people used to read the blogs of a particular
company to understand their profiles and the products that are being offered by them. They also
raise some questions regarding their deliverables if they are having any doubt (Evans and
Hempstead, 2017). Thus, the venture can reach and get more close to their clients and by
answering all of their questions — this help in seeking the attention of large some customers
easily.
Use Facebook ads with retargeting: This is considered as one of the powerful methods that can
be used in promoting in an efficient manner. By using Facebook, Bunnings Warehouse can reach
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to very specific customers, and this can be done by using advertisements at Facebook. People use
to notice adds and can set their mind regarding those products which they have seen in particular
add. Thus, a corporation can make a space in the heart and minds of people to whom they want
to reach and sell their deliverables.
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