Swinburne University MKT60010: Demand Ecosystem Report Analysis

This report presents an external audit and demand forecast for the 'Get Your Beauty On' mobile app, designed to connect customers with beauty and personal care services in Australia. The analysis includes a PESTEL framework to assess political, economic, social, technological, environmental, and legal factors impacting the business. The report examines the demand ecosystem at macro, meso, and micro levels, identifying key actors and influences. It highlights the app's unique value proposition and lack of direct competitors. The demand forecast utilizes a vicarious approach, considering expert opinions due to the app's novelty. The report anticipates market expansion based on increased consumer and service provider adoption, emphasizing the importance of flexibility in booking and service offerings. References and a bibliography support the analysis.

Running head: DEMAND ECOSYSTEM
Demand Ecosystem
Name of the Student:
Name of the University:
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1DEMAND ECOSYSTEM
Part B
External audit
'Get Your Beauty On', the mobile app is the one stop solution for the customers who prefers to
get many things done at once while going for their beauty and personal care services. The app
not only helps in getting the service appointments at a convenient time in a 25 km radius of the
customers’ current location, but it also helps the customers by showing an overview of all other
types of shops and services around their beauty service provider along with the direction to those
places so that the customers can plan their day accordingly. It aims to capture the market of
Australia initially before entering foreign markets. The following table provides a snap shot of
the external audit, that is, external environment analysis for the app that includes, macro, meso
and micro level of analysis.
Demand-product alignment audit outline
Demand-product alignment audit outline
Level External tools and
factors
Influence/connection
s
Macro
PESTEL
1. Australia has a constitutional monarchy with
Queen Elizabeth as the Head of State. The nation
has a stable political scenario and that has been
quite beneficial for the business growth in the
country. Stability increases confidence of the
investors. That would help in the growth of the
business of the app. The government also supports

2DEMAND ECOSYSTEM
(Political, Economic,
Social, Technological,
Environmental, Legal)
economic changes and policies which also boosts
business growth (Coleman 2016).
2. Australia holds the record for achieving longest
positive economic growth, which continued for 26
years. It also holds 13th position among the largest
economies. The housing prices are extremely high,
company tax rate is 30%, inflation rate 1.8% and
unemployment rate is 5% (Schofield et al. 2019).
However, for a digital business platform, the
growth opportunities are high as almost all
services are moving towards digitalized
businesses, opening new scopes in market.
3. The social factor includes demographics and that is
based on highly tech-savvy generation of
customers. The millennials are highly tech-savvy
and they prefer online services due to higher
convenience (Cheers 2019). Hence, a new online
app would be helpful for them to not only book a
beauty service, but can also help them to run
errands if required.
4. Being a developed nation, the technological
advancement in Australia is quite high. There are
highly advanced electronics and gadgets in the
market and for an app, the level of technological
support is also very high.
5. Australia has highly diverse environment and they
are taking much initiatives for increasing
sustainable development in almost all possible
sectors. A mobile app based business is much
environmental friendly as it consumes less
electricity, less carbon emission, less amount of
paper, less water resources, etc. and such
businesses are encouraged by the government for
protecting the environment (Cristescu et al. 2019).
6. The legal structure ensures a fair trading between
buyers and sellers, and violation of those rules
results in penalties. The labour laws and minimum

3DEMAND ECOSYSTEM
wages are fair and there are laws to protect all the
parties’ interest. The future laws are expected to
provide more reliable and encouraging
environment for the online-app based businesses
as these online based businesses are more
sustainable in nature.
Meso
Demand ecosystem
(information flows, cash
flows, product flows)
In the Meso level of analysis, the groups, such as,
political groups, ethnic groups, committees, and
organizations, are examined to find the effectiveness of
information flows, product flows and cash flows in the
demand ecosystem (Milford and Tippett 2019).
For the success in the online service providing
industry, various organizations must come forward.
The meso level analysis examines those intermediary
and competitors in the market to assess the
competitiveness of the business. In this case, ‘Get Your
Beauty On’ offers a unique service of giving choices of
beauty services in a particular area based on price,
rating, reviews and distance. There is no other
competitor app in Australia that provide similar
services to the customers.
It will itself work as the intermediary service or Head
Enterprise maintaining the information flow, cash flow
and product flow between the service providers and
customers. Hence, the Actor-Activity-Group (AAG)
and the touchpoint targets will be controlled by the app
for efficient service to the customers.
Micro Critical
actors/agents/value adders
in the demand process
(ecosystem touchpoints).
Could be consumers,
purchasers, influencers,
retailers.
Micro level analysis examines the smaller systems,
such as, the immediate people who are associated with
the businesses and the people who are received the
services. In this case, the service providers, consumers,
suppliers, influencers and retailers can be addressed as
the variables under micro level analysis (Goretzki et al.
2018).
The app will connect the consumers with the service

4DEMAND ECOSYSTEM
and product providers in a particular area, such as,
grocery stores, departmental retailers, medicine shops,
bakeries, dry cleaners, eateries, shoe retailers, jewelry
shops etc. The flow of information, cash and products
and services will occur between consumers and the
buyers. These will establish connection between
different actors in demand ecosystem.
Hence, at the micro level the app will cater to a large
group of customers, who prefer to enjoy beauty
services but after a thorough review of the cost,
distance and ratings of the providers, and at the same
time, would like to enjoy other activities also such as,
shopping or eating. A large scale collaboration is
possible between different service providers and
retailers in an area based on distance and those will be
mapped with customers’ location.
Demand Forecast for three years
As the app will be a new product in the market, hence, it will not have historic sales data
to base the prediction on. The companies must rely on the experience and insights of the experts
for demand prediction for the product or service and qualitative market research becomes
necessary for the demand forecasting.
The app for ‘Get Your Beauty On’ is bringing unique services in the market which has no
competitor. However, the aspect of distance based sorting of the services in a particular area is
somewhat similar to the results of searches in Google maps, although the mobile app provides
beauty service booking options along with information about nearby services and shops. This
booking option is not available in the Google maps. Hence, the demand forecasting will be based

5DEMAND ECOSYSTEM
on Vicarious approach (or Experts’ opinion) as no historical data can be found for estimating
(Ivanova, Minutolo and Marcus 2016).
The demand ecosystem for the app and the service provided will be controlled by the
primary actors, that is, consumers, followed by the beauty service providers. The entire
ecosystem is based on the meeting the needs and wants of the customers as well as for the beauty
service providers. The consumers want convenience in their beauty service booking, followed by
easier options to run their errands while they go to avail the beauty service. On the other hand, it
is also beneficial for the different service providers located in a particular region to work in
collaboration to provide a better experience to the customers while they get another service in
that area. Therefore, the demand forecasting of the app must consider the demand for other
services available in the neighborhood of a beauty service provider in Australia.
It is assumed that if the demand for beauty service provider increases due to high quality
service, and affordable price, the demand for neighboring services and shops will increase too.
Secondly, the more flexibility the app will offer regarding booking time, discount offers,
reward points, service preferences etc., the demand for the app will go up in the next few years.
Therefore, by applying the Vicarious approach (or Experts’ opinion), it can be said that
the in the next three years after the launch of the app, the popularity among the actors, that is,
consumers and service providers will increase and the market will expand as more service
providers would join the app.

6DEMAND ECOSYSTEM
References
Cheers, B., 2019. Welfare bushed: Social care in rural Australia. Routledge.
Coleman, W. ed., 2016. Only in Australia: The history, politics, and economics of Australian
exceptionalism. Oxford University Press.
Cristescu, R.H., Scales, K.L., Schultz, A.J., Miller, R.L., Schoeman, D.S., Dique, D. and Frère,
C.H., 2019. Environmental impact assessments can misrepresent species distributions: a case
study of koalas in Queensland, Australia. Animal Conservation, 22(4), pp.314-323.
Goretzki, L., Mack, S., Messner, M. and Weber, J., 2018. Exploring the persuasiveness of
accounting numbers in the framing of ‘performance’–a micro-level analysis of performance
review meetings. European Accounting Review, 27(3), pp.495-525.
Ivanova, A., Minutolo, M.C. and Marcus, A., 2016. Direct and Vicarious Learning and Firm
Performance. Journal of Behavioral and Applied Management, 17(2), p.1186.
Milford, T.M. and Tippett, C.D., 2019. Introduction: Setting the Scene for a Meso-level Analysis
of Canadian Science Education. In Science Education in Canada (pp. 1-12). Springer, Cham
Schofield, D., Shrestha, R.N., Zeppel, M.J., Cunich, M.M., Tanton, R., Veerman, J.L., Kelly, S.J.
and Passey, M.E., 2019. Economic costs of informal care for people with chronic diseases in the
community: Lost income, extra welfare payments, and reduced taxes in Australia in 2015–
2030. Health & social care in the community, 27(2), pp.493-501.

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Bibliography
KelloggInsight 2017, 'How to Predict Demand for Your New Product', KelloggInsight, 10
March. Accessed 24 March 2020, <https://insight.kellogg.northwestern.edu/article/how-to-
predict-demand-for-your-new-product-2>.
Ulanoff, L 2014, 'Amazon knows what you want before you buy it', Predictive Analytics Times,
27 January, Accessed 24 March 2020,
<http://www.predictiveanalyticsworld.com/patimes/amazon-knows-what-you-want-before-you-
buy-it/3185/>.
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