Strategic Marketing Analysis and Report: Harvey Norman

This report provides a comprehensive analysis of Harvey Norman's marketing strategy. It begins with a company description and explores their strategic orientation to marketing, followed by a SWOT and PEST analysis to assess their internal strengths and weaknesses and external opportunities and threats. The report then delves into Harvey Norman's target market demographics, their use of social media for marketing, and their approach to product value creation. Furthermore, it suggests a new product and service offering in the clothing segment and concludes with a discussion of the 7Ps marketing mix. This report offers insights into Harvey Norman's marketing practices and provides a strategic overview of the company's position in the retail industry. The report is contributed by a student to be published on Desklib.

Running Head: MARKETING STRATEGY 1
Marketing Strategy: Harvey Norman

MARKETING STRATEGY 2
Table of Contents
Introduction......................................................................................................................................3
Company Description and strategies...............................................................................................3
Marketing Strategy..........................................................................................................................4
Orientation to Marketing.................................................................................................................5
SWOT Analysis...........................................................................................................................5
Strengths...................................................................................................................................5
Weaknesses..............................................................................................................................5
Opportunities............................................................................................................................5
Threats......................................................................................................................................6
Macro environmental Factors (PEST Analysis)..........................................................................6
Political factors.........................................................................................................................6
Economic Factors.....................................................................................................................6
Social Factors...........................................................................................................................6
Technological Factors..............................................................................................................7
Demographics of Target Market......................................................................................................7
Use of Social Media.........................................................................................................................7
Product Value Creation....................................................................................................................8
New Product and New Service........................................................................................................8
7Ps for clothing Segment.................................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

MARKETING STRATEGY 3
Introduction
Strategic management is an effective approach that can be used by each and every organization
to stay competitive in today’s business environment. Under this process, development of an
effective and successful marketing strategy is an important step for an organization. This strategy
enables the organization to go beyond word-of-mouth recommendations and implement different
marketing tactics to attract new customers to the offerings of organization. Organizations need to
adopt some specific steps to develop an effective marketing strategy. This report describes
different strategic aspects in context of an Australian Organization, i.e. Harvey Norman. It
includes its strategic orientation to marketing process and strategies. In order to analyze Harvey
Norman strategically, SWOT and PEST analyses will be included in the paper. Furthermore, the
report includes various aspects related to company’s target market, social media marketing and
strategic plan about new product of Harvey Norman.
Company Description and strategies
Harvey Norman is one of the largest retailers in Australia, which is dealing in a diverse range of
products, i.e. furniture, electrical products, furniture, consumer electronics, communications, fun
and entertainment products and small appliances. Harvey Norman is a public company that is
listed on Australian Stock Exchange. Primarily, it operates its business operations as a franchise
under its main brand, i.e. Harvey Norman Holdings Limited (Harvey Norman, 2017). Till the
year 2016, the company owns and franchises 280 stores in Australia, Europe, New Zealand, and
South-East Asia. This organization was founded in the year 1987 and it has acquired different
stores in 2010, i.e. Rick Hart and Clive Peeters.
The organization is running its business operations in retail industry. However, the organization
is leading Australian retail industry as a market leader, but still it is facing intense competition
here. There are so many competitors in Australian retail industry, which are creating competition
for Harvey Norman, i.e. Action, Flemings, Safeway, Target Australia, David Jones, JB Hi-Fi,
IGA etc. Among these players, Harvey Norman is one of the largest retailers in Australia. In
retail industry of Australia, this firm offers both online and offline experiences to its shoppers. It
has attained a great success due to its dedication to ensuring a strong strategic management. In

MARKETING STRATEGY 4
2016, the company has won the Best Multi-Channel Retailer Award at Online Retail Industry
Awards. This award was given to Harvey Norman, because it demonstrates better processes in
combining offline retail with online retail via implementing innovative and effective strategies.
Currently, Harvey Norma runs its operations under Business to Consumer model, in which
products are sold to customers directly (Anderson, Narus & Narayandas, 2009). There are
different products lines, which are offered by the company, are stated below;
 Portable consumer electronics: Video and audio, cameras, mobile phones
 Computer systems: Computers, Laptops, accessories, software and hard drives
 Home appliances: Air conditioners, heaters, washing machines, kitchen sets
 TV and Gaming: Television, Home theatre system, gaming system, DVD player.
 Bedding and Furniture: decorations, office, bed room furniture etc.
 Other services: Installation, finance options, photo centre services, redemption and cash
back services.
Marketing Strategy
As a leading retailer in Australia, Harvey Norman is adopting and implementing various
effective strategies to retain its existing customers and create new customers. As its marketing
strategy, it is using an effective business model, which includes various important characteristics,
like; large and diversified product category, competitive prices, strong advertising and
promotional activities, franchise ownership system etc.
Under its marketing mix, the company is using an effective pricing strategy. Harvey Norman is
refurbishing its pricing strategies because it is executing price skimming before starting its
discount series. Its pricing strategy includes some additional features, like; extended warranty
schemes and easy loans to enhance the margin on sales (Baker, 2014). In today’s high tech
world, the people are ready to pay high prices for the products with new and latest technology.
In addition, the company is executing an operative distribution strategy, in which it is positioning
new stores in growing regional areas. Moreover, it is adopting a strong distribution network,
though which it distributes its products via its distribution centers and direct product delivery to

MARKETING STRATEGY 5
customers. It offers products supplies via its online websites, where people can order products
according to their needs (David & David, 2015).
Promotion and advertising activities form a major part of marketing strategy of an organization.
Harvey Norman is promoting their products by the use of different social networking sites, like;
Youtube, Facebook, Instagram etc. Promotional strategies of Harvey Norman are working
effectively and thus the stores are identified as reliable, which offer products with high quality
and service. Along with this, it is making efforts to expand its business through market
segmentation and fulfilling the needs and expectations in diversified target market (Dibb &
Simkin, 2013).
Orientation to Marketing
SWOT Analysis
Strengths
The marketing strategy of Harvey Norman is very innovative and effective. Under this strategy,
it is offering innovative and high quality products and services. It assisted in establishing its
brand name and reputation in Australian states. The organization is continuously adjusting its
products and strategies according to the trends and changes in market. The company has made
exclusive partnerships with its suppliers and vendors (Hill, Jones & Schilling, 2014). The current
marketing strategy of the company includes an attractive appearance of retail stores. Under its
pricing strategy, the company consists of various promotional offers to entice more and more
customers. It is widespread in several nations, like; Singapore, New Zealand, Malaysia etc.
Weaknesses
Harvey Norman has limited stores than its other competitors in Australia. It is confronting
intense competition in Australia retail industry, which is limiting its market share and coverage
in the industry. Furthermore, it lacks in developing strategic relationships. During past few years,
it has faced various issues and controversies due to its illegal practices. It has affected the brand
image of Harvey Norman adversely (Kim, Shin & Min, 2016).
Opportunities
Current marketing strategy of Harvey Norman can develop several opportunities for its growth in
international markets. Offering products and services at comparatively lower prices is a

MARKETING STRATEGY 6
significant marketing tactic that it can execute for winning the consumers’ mind. Through its
effective promotional strategies, it can increase its customer base inside and outside of the
country (Lam and Harker, 2015). Along with this, it can expand its business operations in
lifestyle product section by using its own brand name.
Threats
There are some factors, which may challenge the marketing strategy of Harvey Norman. As the
company is dealing in the consumer durable division and this segment is very concerned about
the brand name and quality. At Harvey Norman, the prices of electronic products are declining
every year that can impact the profits and revenues of company (McKeever, 2016). The expenses
on promotional and advertising activities are very high at Harvey Norman.
Macro environmental Factors (PEST Analysis)
Political factors
Harvey Norman is taking the advantages of an economic stimulus scheme, organized by
Australian Federal Government to enhance the buyer purchasing under economic recession. In
the country, the tax rates are increased by government from 23% to 29% that has negative effect
on net profit of company.
Economic Factors
Economic factors have both positive and negative impact on the growth of Harvey Norman in
Australia. The company had flat sales due to customers cut back on their spending. Customers
spending cuts had made the sales of computer and electronic products weaker and furniture and
bedding covered a considerable market share. During last few years, the sales of company were
adversely influenced because of downturn in foreign currency (O'Guinn, Allen & Semenik,
2011).
Social Factors
Harvey Norman prides itself on developing a positive culture in the organization. It extends its
hand towards the community and its people by giving a percentage of its sales to the population
of Australia. It is the major reason that people supports Harvey Norman (Peppard and Ward, 20).
The people are very much concerned about new and latest technology; it is beneficial for the
organization. It positively affects the lives and lifestyle of the population of country.

MARKETING STRATEGY 7
Technological Factors
Harvey Norman is offering the products and services with new and innovative technology. In
addition, it attempts to become social media and technologically savvy. It is contacting the
customers through social media platforms, like; Facebook, Twitter, Instagram etc. Harvey is the
best example of a retail store utilizing internet to communicate with the users and shoppers.
Demographics of Target Market
In analyzing the demographic of target market, the company collect the demographic
information to consist of in the marketing plan that is used at the time of introduction of products
are services. Demographic includes age, income, gender, race and geographic level in context of
target market. Harvey Norman is considering some of these factors, like; it is targeting the
people, who are very concerned about the costs of products. Moreover, it is emphasizing on
upper middle level and middle class people (Ryan, 2016). This organization offers a product
range for an entire family.
For its online business, the company is targeting online customers using digital marketing
software. It is offering the products with comparatively lower prices, so it will make focus on
lower and middle income level people. For its household and kitchen appliances, it is targeting
women segment. Moreover, it is targeting school going children for computers. Thus, the
demographic of target market at Harvey Norman include family, as it fulfills the needs and wants
of entire family.
Use of Social Media
Social media marketing is a new and innovative way that is used by each and every organization
for the promotion of products and services. At Harvey Norman, social media networking sites,
like; Twitter, Facebook and Instagram has altered the way of communication with the customers
and followers. As most of the population is engaged in using internet and its applications, so it is
beneficial for company to promote the products on social media (Luttrell, 2016).
In this context, Harvey Norman is involved in developing and conceptualizing contests on
Facebook application with the goal of enhancing people engagement and increasing their
Facebook community. The company is posting its products on its official Facebook and

MARKETING STRATEGY 8
Instagram page, so that people can see the pop-ups and order the products online. Along with
this, Harvey Norman can adopt e-mail marketing, through which it can connect with its regular
shoppers and take their feedback about their products and services. It is creating a number of
interactive Flash Display Ads for the promotion of its product category. Thus, Harvey Norman is
using the social media in an effective and influential way (Scarborough, 2015).
Product Value Creation
The company is using different ways to create product value to its customers. Harvey Norman is
creating value to its customers by focusing on its production and distribution processes. Harvey
Norman is considering the perception of customers towards its product lines. It is constantly
working on enhancing the customer satisfaction by offering high quality services. Customer
value creation enhances customer experience and customer satisfaction. In addition, Harvey
Norman is offering the products and services at competitive prices, which are lower than its
competitors (Mahajan, 2016). This product value creation for customer is beneficial for the
organization as it enhances the customer loyalty.
New Product and New Service
Currently, Harvey Norman is dealing in the retail industry and offering various product
categories. Now, the company should expand its business in clothing section by targeting the
female segment. For introducing this new segment, the company will focus on needs,
personalities and demographics, when making market segmentation. It will allow Harvey
Norman in reaching to the non-buying customers via marketing and advertising efforts. In retail
cloth marketing, the company will target the market on the basis of age, gender, geographic,
behavior, lifestyle etc. By targeting this new product, the organization can increase its customer
base. Before launching this new segment, the company should make a marketing research for
understanding the needs and wants of customers for clothing (Scarborough, 2015).
7Ps

MARKETING STRATEGY 9
Product: The entity has been operating the business in retail sector of consumer electronics. The
products are designed and developed as per the expectations of the consumers so as to offer a
high level of satisfaction.
Price: The prices of the products vary as per the products range and features. As business entity
has been offering consumer’s electronics so the prices are also kept at an affordable range .i.e.
low cost leadership strategy can be adopted by the business entity.
Place: The business corporation should make use of contemporary platforms of distribution.
Local vendors, retailers and authorized outlets of brand.
Promotion: Harvey Norman has been making use of local means of promotion so as to
advertise the goods locally (West, Ford & Ibrahim, 2015).
People: The business organization has been making use of the local human resource as the
workforce. Skilled and potential labor is the main criteria for recruiting the workforce for the
firm.
Process: As the business entity is operating in the retail business, the main process comprises of
getting the products from the manufacturers and makes the same available for the ultimate
consumers.
Physical evidence: The entity has been operating the business through the authorized outlets,
local retailer stores and distribution centers (Mahajan, 2016).
Conclusion
Thus, the above report concludes that Harvey Norman is a well-established retailer in Australia
and international markets. The organization is dealing in different product lines. It is
implementing various marketing strategies, which are successful in Australian retail industry.
These strategies of the company will grow the business of company and make it more successful
in the future. The SWOT analysis of marketing strategy indicates that company will achieve its
predetermined objectives by adopting these strategies and tactics. Furthermore, the company can
expand its business in clothing segment, which will assist the organization in increasing its
revenues and profits in future.

MARKETING STRATEGY 10
References
Anderson, J. C., Narus, J. A., & Narayandas, D, 2009, Business market management:
Understanding, creating, and delivering value. Pearson Prentice Hall.
Baker, M.J., 2014. Marketing strategy and management. Palgrave Macmillan.
David, F. R., & David, F. R, 2015, Strategic management: concepts and cases – a competitive
advantage approach (15th ed., pp. 185), Upper Saddle River, NJ: Pearson Education.
Dibb, S, & Simkin, L, 2013, Market Segmentation Success: Making It Happen, Routledge, New
York.
Harvey Norman, 2017, Harvey Norman Australia, retrieved from
https://www.harveynorman.com.au/.

MARKETING STRATEGY 11
Hill, C. W., Jones, G. R., & Schilling, M. A, 2014, Strategic management: theory: an integrated
approach. Cengage Learning.
Kim, N., Shin, S., & Min, S, 2016, Strategic marketing capability: Mobilizing technological
resources for new product advantage. Journal of Business Research, 69(12), 5644-5652.
Lam, W. and Harker, M.J., 2015, Marketing and entrepreneurship: An integrated view from the
entrepreneur’s perspective. International Small Business Journal, 33(3), pp.321-348.
Luttrell, R, 2016, Social Media: How to Engage, Share, and Connect, Rowman & Littlefield.
Mahajan, G., 2016, What is Customer Value and How Can You Create It? Retrieved from
http://customerthink.com/what-is-customer-value-and-how-can-you-create-it/.
McKeever, M., 2016. How to write a business plan. Nolo Publications.
O'Guinn, T, Allen, C, & Semenik, R, 2011, Advertising and Integrated Brand
Promotion, Cengage Learning
Peppard, J. and Ward, J., 2016. The strategic management of information systems: Building a
digital strategy. John Wiley & Sons.
Ryan, D., 2016. Understanding digital marketing: marketing strategies for engaging the digital
generation. Kogan Page Publishers.
Scarborough, N.M., 2015. Entrepreneurship and effective small business management. Pearson
Higher Ed.
West, D. C., Ford, J., & Ibrahim, E., 2015, Strategic marketing: creating competitive advantage.
Oxford University Press, USA.

MARKETING STRATEGY 12