Comprehensive Marketing Management Analysis of JB-Hi-Fi Limited

This report provides a comprehensive analysis of JB-Hi-Fi Limited's marketing management strategies. It begins with an overview of the company and its industry market, followed by a Porter's Five Forces analysis and a PESTLE analysis to assess the external environment. The report then delves into competitor analysis, focusing on Myer, and examines JB-Hi-Fi's marketing mix (product, price, place, promotion). Furthermore, it explores the company's market segmentation strategy, including demographic, behavioral, and geographic segmentation, and identifies its target market. The report also includes a positioning map to illustrate JB-Hi-Fi's market position. The analysis aims to provide insights into JB-Hi-Fi's marketing effectiveness and its competitive standing in the Australian retail industry.

Running head: MARKETING MANAGEMENT
Marketing Management
December 30
2018

MARKETING MANAGEMENT 1
Executive Summary
Marketing is the most important aspect of every business. Marketing not just help in increase
brand awareness but it also supports in increasing sales of the business and engages
customers. On a ground level, marketing support in educating customer regarding the
services and products of the company. As per the investigators, marketing is the only
operative way that can communicate the value proposition of the business to the customers.
In the 21st century, marketing has become less expensive because social media platform is
supporting businesses to communicate their marketing message to the customers. The aim of
this paper is to increase the understanding regarding the different marketing management
concepts used by the business in order to target customers and increase market share. The
report has highlighted different aspects of JB-Hi-Fi Limited's marketing strategies such as an
advertisement, segmentation, and targeting, positioning, and marketing mix. From the
analysis, it has been identified that the company is effectively planning its strategies to give
strong competition to its present rivals and attract more and more customers through new
product development.

MARKETING MANAGEMENT 2
Table of Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Overview of JB-HI-FI............................................................................................................3
Industry Market of JB-Hi-Fi..................................................................................................4
Porter 5 Force Framework.................................................................................................4
Growth and Profitability in the Australian retail industry.................................................5
PESTLE Analysis of JB-Hi-Fi Limited.............................................................................5
Competitor Analysis...............................................................................................................7
Marketing Mix of JB-Hi-Fi Limited......................................................................................9
Product...............................................................................................................................9
Price....................................................................................................................................9
Place...................................................................................................................................9
Promotion.........................................................................................................................10
Market Segment Strategy.....................................................................................................10
Demographic segmentation..............................................................................................10
Behavioral Segmentation.................................................................................................11
Geographic Segmentation................................................................................................11
Target Market.......................................................................................................................11
Positioning Map of JB-Hi-Fi Limited..................................................................................13
Conclusion................................................................................................................................14
References................................................................................................................................15

MARKETING MANAGEMENT 3
Introduction
Marketing management is the procedure of emerging approaches and planning for services or
products, promotions, sales, advertising to reach a preferred segment of customer. The heart
of every organization success lies in its strategies of marketing (Iacobucci, 2016). Marketing
management shortened the functions and activities, which are included in the services and
goods distribution. As per Philip Kotler, “Marketing management is the study, development,
execution, and regulation of the programs created to bring anticipated relations with the target
audience for the aim of attaining objectives of the organization.” Similarly, marketing
management is the procedure through which a service or product is introduced and advertised
to the potential target market (Zimmerman & Blythe, 2013). The intent of this report is to
consider the market of JB-HI-FI Company and evaluate its present market opportunities and
threats that have a major influence on its operations. The report will be comprised of a
detailed analysis of the industry of which JB-HI-FI is a part along with its external
environment analysis. It will also discuss the level of competition present within the industry.
Besides this, it will discuss the market segment of the business in order to recognize its
primary and secondary target markets.
Overview of JB-HI-FI
JB-Hi-Fi is one of the known consumer goods retailers of the Australian market. The
company majorly deals in Ultra HD Blu-rays, CDs, video games, DVDs, Blu-rays, mobile
phones, Telstra services, electrical home appliances, and electronics/hardware. The head
office of the company is in Melbourne and in 2007; it introduced its operations in New
Zealand. Mr. John Barbuto founded JB-H-Fi in 1974. However, in 1983, the business was
sold and in 1999 another nine stores were introduced in the market (JB-Hi-Fi, 2018a).

MARKETING MANAGEMENT 4
Industry Market of JB-Hi-Fi
Porter 5 Force Framework
In order to evaluate the structure of a company and its corporate strategy within the industry
it operates, the framework of Porter's five forces is utilized. This model, have used five forces
which perform an essential part in shading the industry and market. These forces are utilized
to evaluate the intensity of the competition and profitability of the market and industry
(Magretta, 2012).
The threat of New Entrants
The threat of new entrant in the retailing industry is high because it brings new and
innovative ways of performing a task, which increases the pressure on JB-Hi-Fi Limited by
reducing the prices and offering a new value proposition to the consumers in the market. The
company needs to handle all these challenges and generate effective barriers for the
competitors in order to safeguard its competitive advantage (Fern Fort University, 2018d).
Bargaining power of Suppliers
The bargaining power of the suppliers in the retailing industry is low due to the presence of a
number of suppliers who provide raw material to the companies. JB-H-Fi is the one who
deals in different types of products and therefore it deals with diverse suppliers, which
increase the negotiating power of the company (Fern Fort University, 2018d).
Bargaining Power of the Buyers
The bargaining power of the buyers in the retailing industry is high due to their demanding
habits. The customers desire to buy superior products at lower prices. This increases the
pressure on the profitability of JB-Hi-Fi Limited in the long-term.

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Threats of Substitute Products
The time a new service or product fulfill the similar need of the customers in diverse ways,
the profitability of the industry suffers. For instance, Google Drive and Dropbox are the
substitute products to the storage hardware drives. The substitute product threat is high in the
industry as it provides a unique value proposition in the industry (Fern Fort University,
2018d).
Competition among existing players
The level of competition in the retailing industry is very intense. This competition affects the
long-term profitability of JB-Hi-Fi as it is enforcing it to reduce the prices of services and
products in the market.
Growth and Profitability in the Australian retail industry
The retailing of consumer goods sector has fought with hard retail situations in the last five
years. Low disposable income growth and unstable sentiments of the customer because of
uneven financial markets stemmed in deprived trading circumstances, as households scaled
back their spending on goods that are included in the category of non-essential goods.
Additionally, advancement in the technology has added to a decrease in the demand of retail
for numerous customers good over the period, like video games, recorded music, and
photographic equipment, stationery, books, and newspapers. Operators of the Subdivision are
dealing with intense rivalry from the online retailers because customers are increasingly
becoming comfortable with online shopping in the last five years (IBIS World, 2018a).
PESTLE Analysis of JB-Hi-Fi Limited
Political Factors
Political factors perform an essential part in defining the factors that influence the
profitability of JB-Hi-Fi Limited in a market or country. JB-Hi-Fi Limited is functioning in

MARKETING MANAGEMENT 6
different country’s retailing which uncovers it towards diverse kind of political risk. In order
to attain success in this type of dynamic retailing industry in different nations, the company
needs to expand the regular risks of the political environment (Fern Fort University, 2018c).
Economic Factors
The economic factors like savings rate, foreign exchange rate, economic cycle, and interest
rate define the aggregate investment and aggregate demand in an economy. Whereas, factors
of microenvironment like competition norms influence the company’s competitive advantage.
JB-Hi-Fi Limited can make use of economic factors of the country like inflation, growth rate,
and economic indicators of the industry like Retailing industry consumer spending, growth
rate, etc. in order to forecast the growth route of the sector as well as the company.
Social Factors
The culture of the society and means of performing task influence the organization’s culture
in an environment. Attitudes and shared beliefs of the society perform an essential part in
how vendors at JB-Hi-Fi Limited will comprehend the consumers of a target market and how
they plan the message of marketing for the customers of retailing industry (Fern Fort
University, 2018c).
Technological Factors
Technology can quickly affect the competitive landscape and price structure of an industry in
a short period. Therefore, it becomes very essential for continuously innovating, for the sake
of not only increase profits and to be a leader in the market, but also to avert undesirability in
the coming future. It is very important for JB-Hi-Fi Limited to continuously innovative
products for customers in order to maintain a competitive advantage over its competitors.

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Legal Factors
In different nations, the legal institutions and framework are not strong enough to guard the
company’s intellectual property rights. A business must prudently assess before arriving in
such markets because it can result in the theft of secret of the business. Therefore, in order to
successfully operate in different countries, JB-Hi-Fi Limited always go through the anti-trust
law in the industry of retailing.
Environmental Factors
Diverse markets possess diverse standards and norms related to the environment, which can
influence an organization's profitability in the industry. Even in a single nation, many states
can possess different laws related to liability and the environment. JB-Hi-Fi Limited is very
much focused towards the safety of the environment (Fern Fort University, 2018c).
Competitor Analysis
Competitor analysis in strategic and marketing management is a valuation of the weaknesses
and strengths of existing and potential rivals. This examination offers both a defensive as
well as an offensive strategic framework to recognize opportunities and threats. Profiling
syndicates all the pertinent competitor analysis sources into a single framework (Fleisher &
Bensoussan, 2015).
JB-Hi-Fi deals with intense competition from numerous players in the market some of them
are David Jones, Harvey Norman store, and Myer (Brown, 2008). In order to analyze the
position of JB-Hi-Fi, the report will evaluate the strength and weaknesses of Myer in the
Australian retailing industry.
Analysis Strength Weaknesses
JB-Hi-Fi Limited Successful record of
accomplishment in new
JB-Hi-Fi Limited is not
capable enough to cope up

MARKETING MANAGEMENT 8
product development and
innovation
JB-Hi-Fi has extremely
skilled labor force through
effective learning and
training programs.
with the challenges from the
new entrants in the market
and due to this; it has lost a
small part of its market share.
The company is investing the
very low amount in the
research and development in
comparison to the fast
developing players in the
industry (Fern Fort
University, 2018b).
Myer Myer is known to offer a
wide variety of products in
the market (Fern fort
University, 2018a)
The company offers a high
level of consumer
satisfaction as it is devoted
towards the management of
customer relationship with
Company lacks in proper
financial planning due to
which it deals with different
issues such as management
of liquidity within the
organization.
Myer lacks in forecasting the
product demand in the
market due to which it is
missing huge opportunities in
comparison to its
competitors.

MARKETING MANAGEMENT 9
present customers as well as
potential customers.
Marketing Mix of JB-Hi-Fi Limited
The marketing mix is the set of tactics or actions that are used by a company in order to
market its product in the market. The marketing mix is comprised of 4Ps that are a product,
price, place, and promotion (Richter, 2012).
Product
JB-Hi-Fi Limited is known for marketing its services and products in the market in the
traditional form, but it is equipped with advanced technology products such as home
entertainments, Blu Ray Disc Players, CD player and different electronic goods that appeal
the new generation (JB-Hi-Fi, 2018b).
Price
JB-Hi-Fi Limited vends its services and products in the market at affordable prices in order to
confirm that it is capable to attract a maximum number of customers. Being one of the
famous stores in the Australian market, it makes use of psychological pricing strategy in
order to attract the customers. To recall the customers, the company provide reward points
and loyalty card benefits such that they can use the benefits of those points in the future (Data
Group, 2018).
Place
JB-Hi-Fi major deals in two nations that are New Zealand and Australia. It believes that
growing the business operations is the efficiency of marketing. According to the company
New Zealand, the market is said to be the most promising markets because there is low

MARKETING MANAGEMENT 10
competition in the market in terms of product pricing. This offers them the chance to attract
potential and new market and enhance their operations of the business (IBIS World, 2018b).
Promotion
Promotion in the new market of the organization needs funding that allows them to increase
market visibility. JB-Hi-Fi is majorly dependent on the traditional media in order to advertise
its products and services because it is said to be the operative manner of promoting business.
As at most of the locations the stores of JB-Hi-Fi Limited are located at the central area of the
market due to which company uses the strategy of newspaper advertising. Besides this, the
company also make use of transit advertisement in order to advertise its services and products
to gain higher disclosure in the market.
From the above analysis, it has been identified that JB-Hi-Fi Limited is positioned as one of
the leading brand retailers, by offering a variety of branded products in the market at
discounted rates. JB Hi-Fi mainly functions its stores from the stand-alone destination sites
and shopping center locations (JB-Hi-Fi Limited, 2018).
Market Segment Strategy
Market segmentation is said to be the act of distributing a comprehensive business or
consumer market, generally comprising of potential and existing consumers, into sub-groups
of consumers depending on certain kind of shared characteristics. The market segmentation is
of four types that are demographic segmentation, psychological segmentation, behavioral
segmentation, geographic segmentation (McDonald, 2012). JB-Hi-Fi makes use of
demographic segmentation, behavioral segmentation, and geographic segmentation.
Demographic segmentation – Demographic segmentation is the simplest kind of market
segmentation strategy used by the business. JB-Hi-Fi targets its market based on age and
income of the customers (Thought Works, 2018).

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Behavioral Segmentation – Behavioural segmentation divide the market depending on their
usage, decision-making, and behavior pattern. Under this segmentation, it majorly targets
retail customers and wholesale customers.
Geographic Segmentation – Geographic segmentation divides the market based on the
geographic because of the needs of the customer change according to the geographical area.
JB-Hi-Fi Limited target its market based on geographic segmentation. The company majorly
deals in New Zealand and Australia market and it makes use of different strategies for both
the markets (Thought Works, 2018).
Target Market
The target market is said to be the end customer to whom a business desires to vend its
services and products in the market. Target marketing includes breaking down the whole
population into different segments and planning strategies of marketing accordingly for every
segment in order to increase the share in the market (Mirgani, 2017).
Target Market
Primary Market Retail Consumers
Secondary Market Wholesale Consumers
JB-Hi-Fi Limited has segmented its market into divisions that are home retail consumers and
wholesale customers. Retail customers buy home consumer products and tools in both the
markets i.e. New Zealand and Australia. The wholesale consumers majorly focus on huge
commercial projects, bulk buying by businesses and comprehensive business fit-outs.
Wholesale division majorly vends the products to corporate consumers at wholesale prices
(Christian, 2017).