UUMK 5400 - Macpac's Marketing in Practice: Strategy and Analysis

This report provides a detailed analysis of Macpac's marketing practices, including its background, internal analysis, environmental scanning, competitive environment, social responsibility, ethics, impact of technology, consumer-generated information, and segmentation and targeting strategies. It explores Macpac's mission, vision, and values, its product line catering to various outdoor activities, and its recent acquisition by Super Retail. The report also examines political, economic, socio-cultural, and technological factors influencing Macpac's operations, along with its competitive landscape and ethical considerations. Furthermore, it discusses the impact of digital media and consumer reviews on Macpac's brand and its segmentation and targeting approaches based on demographic and geographic factors. The analysis concludes by highlighting Macpac's strategic actions and their implications for the company's success.

Running Head: Marketing in Practice of Macpac 0
Macpac
Marketing in Practice
(Student Name)
9/11/2018

Marketing in Practice of Macpac 1
Executive Summary
Macpac is one of the Old brands for the Hikers & outdoor recreational equipment.
Due to high quality of products, it is one of the most trusted brands. New innovative products
are introduced by Macpac helps the users in the usage and create brand loyalty. It designs its
products through extensive research which makes it cost effective and better utilization of the
product.

Marketing in Practice of Macpac 2
Table of Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Background and Internal Analysis.............................................................................................3
Environment Scanning...............................................................................................................4
Competitive environment.......................................................................................................5
Role of social responsibility and Ethics.................................................................................5
Impact of Technology and trends...............................................................................................5
Consumer Generated Information..........................................................................................6
Segmentation and Targeting......................................................................................................6
Target Segment Profile..............................................................................................................8
Conclusion..................................................................................................................................9
Reference..................................................................................................................................10

Marketing in Practice of Macpac 3
Introduction
The concept of marketing plays a vital role in the business world. The consumer
awareness of the different products with the help of marketing tools which is adopted by the
business house. The manufacturer ensures that their product reaches to the ultimate consumer
all over the world (Sidorchuk, 2015).
In every organization, there are external and internal factors that create a great impact
on the development of the product and services (Kerr & Patti, 2015). In the following
context, there will be a detailed analysis of the company of Macpac. The Macpac is the brand
of frivolous equipment which is recognized for travel and equipment camping. There are
certain internal and external factors that create a positive and negative impact on the
development of good and services of the organization. All these points will be discussed
further.
Background and Internal Analysis
Macpac was established in 1973 by Bruce. It is the brand specialized in outdoor
recreational equipment. The company is recognized for equipment related to travels and for
camping. The company was originally formed as New Zealand Company (Eaqub, 2014). In
1987, the company began the process of exporting to the Netherlands and Switzerland which
was followed by Germany and the UK (Pech, 2015).
The mission of Macpac is to contribute to the creation of a future where the aspiration
of the people can be fulfilled. The company has a mission to engineer the highest quality of
equipment and lead in the world of business (Murphy, 2017). The vision of the company is to
become a global business enabler that can meet the needs of the company throughout the
world. The company follows the value to build trust among the customers and employees

Marketing in Practice of Macpac 4
with humility and fairness (Macpac, 2018). Contribute to society and aspire to set high
standards, also embrace the challenges to constant innovation, promote a culture of non-
judgmental attitude and to achieve full potential, strive to develop others and oneself (Macpac
Films LTD, 2018).
Macpac is the organization of equipment. The company manufactures and designs a
different variety of outdoor equipment which involve technical garments, backpacks, sleeping
bags and varieties of the tent that was designed to serve in a different environment. Macpac
has been a chief sponsor of the New Zealand Alpine Team since 2013 with the variety of
alpine-specific clothing and packs. The collection of apparel and equipment of the company
are suitable for any climate and scenario. The product line of the company caters to campers,
mountain climbers, hikers and also suitable for those, who love travels and adventure
(Bloomberg, 2018).
In recent, the company has been acquired by Australian retail group Super Retail for $
144 million. The Super Retail plan to combine Macpac with the other retailer which is Rays.
The Macpac has 54 stores across Australia and New Zealand, while Rays has 15 stores in
Australia which will be combined under the brand of Macpac. The existing management team
of Macpac will lead the combined business. The company has been performed extremely well
in the recent years, the company is planning to open new stores in near future and growing its
digital and commercial channels (Britomart, 2018).
Environment Scanning
There are certain external factors that create a great impact on the development of
product or services of Macpac that could be positive or negative. The external factors are
explained on below points:

Marketing in Practice of Macpac 5
Political
The relation of labor to laid-off workers, the relation of labor to military contracts and
Asian countries. The Macpac has to compact with different political orientations for the
Filipinos, Vietnamese and Chinese therefore, it would be difficult for Macpac for committing
to fair labor practice. However, New Zealand is one the world’s most stable democracies
which promote Macpac to work in the Stable environment and there is a broad array of
economic and social legislation, a large-scale public works program, social safety, and
minimum basic wages policy which make the employees of Macpac healthier. The countries
political stability promoted considerable Foreign Direct Investment which induces the
Macpac to work more efficiently and effectively (Bulmer & Buchanan-Oliver, 2010).
Economic
Macpac is vulnerable to the rate of exchange with fluctuations and depreciation, as the
company introducing the brand on the sphere of domestic and international. Exposure to the
economic phase, in general, alters the plan of the business which cause operational, financial
and administrative risk of the corporation. The economy of the country extremely depends on
trade with other countries, therefore, the import and export policy is lenient which create an
opportunity for Macpac to expand worldwide. The economy of the country enjoys a low rate
of inflation that contribute to the low rate of interest and increasing purchasing power parity
which help the Macpac to work more efficiently and effectively (Chan & Dana, 2008).
Socio-culture
The terrorist attack on the country has devastated effect on the purchasing behaviour
and travelling lifestyle of the individuals around the globe, which created an insightful effect
on the trade of Macpac. Individuals are nowadays more conscious of safety and security in

Marketing in Practice of Macpac 6
addition to insurance. Macpac had perceived a trend shift to the lower end business of
fashion. Customer desired the quality commodities at a low price, which created an benefit
for Macpac because the company possesses the image of quality. Macpac resorted in flaring
the portfolio of their product by uplifting the range of design pool and the target market
which include the student and universities thus, creating Macpac a design-oriented yet
product-led company.
Technology
The Macpac recognized that China is the most complicated to deal with because the
nation has the advantage of hi-tech advancement. The country has low spending in the
activity of Research and Development which cause a high rate of external dependency for
new technology. Therefore, it creates a great impact on the Macpac, it increases higher
dependency on new technology that the company has the greatest challenge. The system is
also considered which involve measurement, logistic communication and planning, all for the
enhancement of integration with outsourced manufacturers and for cutting air travel cost.
Competitive environment
It is a huge task for the company to becoming and staying as the market leader in the
world of business. The Macpac keep ahead the hard work to enhance the reputation of the
brand and coupled with the innovation of product based on market research that helps the
business to understand the nature of the competition adequately and define the market
accurately. Macpac faces the high level of challenge in the equipment of outdoor industry.
Macpac pursues the strategy to broaden the range and scale of economics, to greater extent
competitors of fluctuating size will be encountered. The company may have an edge when it
comes to brandings such as Adidas as well as Nike, these companies have a specialized
segment or supply channel. The Macpac has a benefit of a quality product; the company can

Marketing in Practice of Macpac 7
take pride of fabric used in the products and the design of beliefs that will separate the
company from the competitors (Benson-Rea & Shepherd, 2008).
Role of social responsibility and Ethics
Macpac majorly contribute in plummeting footprints of carbon emission which cause
global warming and climate change. Macpac consider five principles of the environment to
raise the awareness of environment such as high quality equipment is an upbeat
environmental choice, repair, durability, and reduce, reuse, recycle and return the favor to
environment which is the social responsibility of Macpac towards society.
The Macpac has able to feel the importance of their stakeholders such as investors,
customers, and the employees. The company always give priority to the ethical business with
the aim to build strong relationships with the stakeholder. With the help of CSR, the
company takes participation in the social service and employee welfare (Gordon, 2003).
Impact of Technology and trends
Macpac is known for its high-quality product which has expanded to online shopping.
The company created two online shops in the market of New Zealand and Australia which
are fully integrated and scalable (Macpac, 2018). The digital media and electronic marketing
play an important role in the business of Macpac such as:
 Macpac provides quick service and easy accessibility to the customer through online
shopping which provides convenience to the customer.
 With the help of digital media and electronic marketing, the Macpac reduces the cost
of the operation because online marketing is cheaper than the traditional method of
advertisement.

Marketing in Practice of Macpac 8
 The Macpac now able to track and measure the result and take corrective action, if
required.
 With the help of digital media and electronic marketing, Macpac able to market their
product and services globally which help the company to reach beyond the geography
to offer the products to customers worldwide.
 The core benefit of electronic marketing is, the Macpac is able to handle millions of
customers at the same time, simultaneously numerous transactions can easily take
place.
Consumer Generated Information
The information generated by the consumer for the company has a great impact on the
brand of the company. The consumer of Macpac created contents which include a review of
the product on blogs, articles, message board, and e-newsletter. Some of the customers also
review videos on YouTube, sharing pictures of products which are the popular and effective
multi-media. The customers of Macpac pass their reviews which cover both aspect negative
and positive reviews through emailing, social networking, and posting in different sites which
plays as an effective tool of marketing for the Macpac because with the help of the reviews of
the customer, the other individual get aware about the products of the Mcpac (Macpac, 2018).
Segmentation and Targeting
Macpac segmentation, posting, and targeting involve a set of actions performed in a
sequence. These activities constitute the essence of Macpac marketing strategy. Segmentation
includes categorizing the population into a different group on the basis of their common
characteristics. The segmentation is explained in below points:
 Demographic

Marketing in Practice of Macpac 9
The demographic segment divides customer of Macpac into segment based demographic
values such as gender, lifecycle, income, and occupation of the customers (Gerke & Benson-
Rea, 2012). The product of Macpac has been introduced according to the criteria which are
explained below:
Gender – the Macpac cover both male and female for their product. their product can be used
by a female as well as male.
Life-cycle stage – The targeted area of the Macpac is mainly bachelor, who are young and
people not living at home, newly married couple without children and the youngest child who
is above eight.
Income – The Macpac seek to target middle and high-income customers who believe in
traveling.
Occupation – The targeted occupation of the company are students, employees, professionals,
and sportspersons.
 Geographic
It is important to segment according to geographic because buying habit of the customer
is influenced by the place where they work and live. Thus the Macpac customize their
product, promotion, efforts in advertising and sales to robust the requirement of the
geographical variables. The geographic segmentation categorised customers of Macpac into a
segment based on graphical areas which involve region, density and age group which are
explained in below points.
Region – The targeted region of Macpac is domestic as well as international.

Marketing in Practice of Macpac 10
Density – the main target product of Macpac are for rural people, who have continued the
work of traveling.
Age Group – the age group of the product covers the range of eight to forty-five years old
people.
 Behavioral
The Macpac has believed that the behavioral variables such as the degree of loyalty,
benefit sought, and personality and user status are the points for constructing market
segments. These are explained in below points:
Degrees of loyalty – The Macpac mainly focus on the customers of hardcore loyal, soft core
loyal and who are switchers.
The benefit sought – the customers who have a sense of belongings, believe in high quality,
the perception of trendiness is the target of the Macpac.
Personality – the customer who are determined, ambitious and trendy are the target segment
of Macpac.
User status – the individuals who have potential and adventurous are the target of Macpac.
 Psychographic Segmentation
Psychographic segmentation categories people according to their attitude, values, interest,
lifestyles, and opinion. Macpac has used personality variable to segment the markets. These
are explained in below points:
Social class – the Macpac mainly target the middle class and high-class customers.

Marketing in Practice of Macpac 11
Lifestyle – Macpac targets the customers who are a mainstreamer, explorer, succeeded and
reformer.
Target Segment Profile
Demographic:
 Age of the individual is 27
yrs
 Professional Hiker
 Runs school for new
students
 Bachelors
 Income $40,000
Geographic:
 Hails from Rural area
 Age Group – 25-35 yrs
 Adult age group
 Moderate Temperature for
hikers
Behavior:
 Loyal customer of Macpac
 Use different products of
Macpac
 Preference for high quality
products which Macpac is
providing
 He is professional hiker
hence huge network
Psychographic:
 High standard of living
 Huge network of
professional
 Day to day routine for the
usage of Macpac products