Post on 07-Apr-2018
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PART 1
Executive summary
The key finding
1. Accomplishments: What have we done well?2. Disappointments: What did not happen as planned?3. Critical Actions: To improve results what needs to be done the same/differently
next year?
The purpose of the audit see marketing audit elements
To help company understand how it relates to the environment in which it
operates To help company can identify own strengths and weaknesses as they relate to
opportunities and threats To support the market
ing plan serves as a roadmap that guides the context and scope of marketingactivities
Scope of the audit
The audit seeks to provide information on two key aspects of the marketing environment,
the external and internal environment.
An external marketing audit covers issues such as economic political, infrastructure,technological, and consumer perspective, market size & structure; and competitors,suppliers, and distributors.
And internal marketing audit covers aspect such as the companys mission statement,
goals, and objectives, its structure, corporate, culture ,system , operation & processes,
product development and pricing; profitability and efficiency, adverstising, and
deployment of the sales force.
Schedule of Audit Activities
1. Identification 3-4 weeks
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2. Measurement 3-4 weeks
3. Collection 3-4 weeks
4. Analysis of all facts and opinions that affect a companys problem 3-4 weeks
Participants in marketing audit what people/position will be interviewed to get
information
The key includes
1. Director marketing
2. Executive marketing support manager, Marketing development manager,
Marketing Information manager, Brand manager.
3. Product manager : National retail marketing manager
4. Sales manager
PART 3
Situation Analysis
Market:
- The apparel market in Australia is well developed, More opportunities for
niche markets for brand name products and upper/ mid range to high-endfashion.
- Trends in Australia are current with global fashion trends.Source: http://www.buyusainfo.net
Customers:- Consumers knowledgeable, discriminating and selective.
- Australian buyers attend major international collection releases andpurchase directly from the shows. Australia is in step with the leadingfashion countries.
Competitor:- Online retail occurring, they offers customized product
Distributor:- Department stores still account for a significant proportion of total clothing
sales in Australia. This channel is dominated by two national chains, DavidJones and Myer,
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PEST analysis to find out what are the changes happening from a variety ofperspectives,
Factor Details in marketing plan Finding
Political - No elements expected toinfluence this time period - No elements expected to influence thistime period
Economic -Low growth retail marketoverall due to buyer morelikely to move to fashionsbased on harder-wearingtraditional clothes
-
Social -People will be moreinterested in traditionallyinspired values i.e. realism,authenticity and certainty
-the casual lifestyle and temperateclimate in the populous Southeastportion of the country has meant that
Australians spend far less on clothing
-consumers and leading to an explosionof ''bad buys'' online.http://www.theage.com.au/national/jean-genie-your-number-is-upor-down-20110527-1f8my.html#ixzz1O4AZS1FY
Technology -Internet usage is growingrapidly in traditional market-particularly in youth market
- Internet has sped up trend awareness
Environment Natural environment isapparently interest such as
fibres, bio-sustainability,indigenous culture., etc.
Natural environment is apparentlyinterest such as fibres, bio-
sustainability, indigenous culture., etc
CommentsThe demand for personalised products is growing, are giving DIY consumers what theywant by letting them design exactly what they want.- They are a vertically integrated company performing manufacturing, distributing andretailing of their products themselves.
Competitor analysis audit
Who are our major competitors and what are their strengths and weaknesses?
MJ Miller Thomas smith Blue Hills
Product Icon of Australia Wide range Quality apparel, T-
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cloths, boots andaccessories
country cloth andshirts for men,women andchildren
shirt, polo,skirts,tops and
jumper
Price
Place
Promotion
Key message Wider rangeproduct and goodreputation brand
(Source: survey 2011)
Porters 5 forces: traditional cloth product
Barrier to entry The threat of new entrants to the apparel industry
market leaders in the clothing and apparel industry arerelatively low. This is mainly due to the fact that the bigplayers superior financial resources greatly overpowerthe new entrants.
Threat of productsubstitute The threat of substitute products for the clothing and
apparel industry is non-existent purely because there is
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no substitute for wearing clothes. Barring a huge
technological breakthrough, in mainstream society
everyone buys clothing from somewhere. This means
that because there are no substitutes, the competition
for the consumer clothing shoppers is that much more
intense.
Customer bargainpower
-In the clothing and apparel industry, the bargainingpower of buyers is relatively large. As previously statedabove, the cost of switching companies is nonexistentand as simple as walking from one store to another.-In addition, consumers do not see high-end clothingproducts as an essential commodity so, its priceinelastic.
Bargain of supplierpower
-GRC control all components of the supply chain fromraw materials all the way to the customers shoppingbag-For GRC in general, the power of suppliers is lowmerely because there are many different suppliers whoare readily available to offer up their services.
Competition a few of their main competitors target a very similardemographic.
SWOT analysis
Details in marketing plan FindingStrength - Well-established own store
distribution network-Good relationship with departmentstore
-Low awareness among newtarget segment which it couldeffects sales growth ofcompany
Weakness -Lack of direct distribution in somearea-Small target market
-Customer have medium to lowbrand loyalty, easy to brandswitching due to highcompetition.
Opportunity -limited number of seriouscompetitor in current and new
market.
- Greatest success will beachieved from participating in
the mid to upper price ranges inAustralia, with a quality productthat offers consumers a point ofdifference.
Threat -Global competition could attackcompany and market
-Global competition couldattack company and market-Store brands movement isquick and they provide similar
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product and quality.
Comments
Marketing function audit
Marketing mix Detail in marketing plan Finding- interview &Questionnaire
Product New market: GRC RangeStar: Country casual rangeCash cow: Traditional clothes,footwear.Dogs: NoneT
-For men products vary fromdenim jeans, belts, t-shirts,hooded sweatshirts and evenshoes.-Need more effort to enhancebrand acceptance as amanufactured overseas product.
Price A new life style concept casualwear retailer in a fairprice
If GRC cost is high in relation tobrand reputation, take note ofnew design elements, using abetter quality fabric or adding anew design feature.
Place How well are we supporting ourdistributors?
Promotion A strong Aboriginal/outbacktheme.
APP should participates inapproximately two dozen tradeshows annually to expand andenhance customer relationships,exhibit product offerings, andshare new promotions withcustomers while low cost.
Marketing audit Strategy
Objective Strategy in marketing plan Objective being met
Generalcorporateobjective
-Return on investment by 20%-Increase gross margin > 25%-Increase our direct retail sales65%
Performancetargets/sales
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objective
Comments To reach mission and goal of widen range of GRC products including new market is
Sales objective
Marketing organization audit
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The organization chart of Green River Clothing Company
Formal structure
Formal efficiency
Interface efficiency
How to improve relationship
Marketing system audit to find out that we achieving short- and long- marketing
objectives?
MKT info system
What training or support is needed?
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MKT planning system
Does everyone understand the marketing goals and various activities?
What changes should be made to improve the results from our marketing and/or PR
agencies?
MKT control system
New product development system initial, development, launch, evaluation
Organisations productivity audit (profitability and cost effectiveness)
Profitability analysis what is the profitability by product, market and channel
Cost-effectiveness analysis
- Are there excessive costs associated with any of the marketing activities being
undertaken by the business?
- Are there costs valid?
- Can they be reduced?
Reference:
1 www.mosbygrey.com/pdf/tips/marketing_audit_new.pdf
2
3
4
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This paper primarily provides the PEST Analysis of ABC Clothing Company in
line with the planned expansion in international business operations. This provides
insightful details regarding different factors of in the external environment that an
organization must monitor. After which, this paper will attempt to select one of the most
essential factors that must be given emphasis by the company in order to sustain their
competitive advantage among their competitors for the foreseeable future. Further, this
report will also outline the role of marketing research to support the company's decision
making process.
International expansion is one of the main representations of business success
as it suggests the companys ability to meet foreign market demands and supply
resources needed for foreign operations. Financially, operating abroad can be
demanding; in addition, the company would need to adjust a number of its standard
operation in order to adjust to foreign business practices. In other words, there are
many risks involved in global trade. As this business activity requires significant
resource allocation, the companies must then ensure that they are capable of
overcoming possible risks and will be able to achieve success.
One way of doing this is by analyzing the environment that the companies wish
to invest on. It is important that business entrepreneurs are aware of the distinct
features of each foreign setting; in this way, the investors will know how to address the
risks in the most effective way. If for example the food company is from the West,
establishing a branch in the Eastern section will naturally make western and eastern
differences apparent. In ABC Clothing Companys case, the company has been
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operating successfully based on Western standards; as it aims to expand into newer
international markets such as Asia, this concept applies very well to the company.
Foreign origins have distinct differences on various aspects like politics,
philosophy, society and history. Hence, it is imperative that entrepreneurs understand
their market prospects well. From this aspect, learning and adaptation are perhaps the
two most important factors that should be present.
The Marketing Environment
Todays market is characterized by highly competitive organizations which are all
vying for consumers loyalty. Firms are faced with the challenge to maintain their own
competitive edge to be able to survive and be successful. Strategies are carefully
planned and executed to gain the ultimate goal of all: company growth. However,
external factors are not the only elements which influence growth. There are also
internal factors, components working within the organization which shape the direction
of the company.
The companys marketing environment influences the business organization
directly. This includes the suppliers that deal directly or indirectly to the people within
the business organization, the consumers and customers who demand for the products
or services offered by the company, and other local stakeholders who influence the
decision-making process or affected by the business decisions made by the business
firm. As such, the marketing environment of a particular company describes the
relationship between firms and the driving forces that control this relationship who are
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members of a specific industry wherein the relationship is local and the firm may
exercise a degree of influence.
PEST Analysis Overview
The environment we live in can be very volatile. All organization has its
considered internal weaknesses and strengths, but the outside world will also have a
major impact on the organizations future. PEST Analysis is a popular marketing
management tool and method of examining the many different external factors affecting
an organization. The acronym PEST stands for the following: Political, this is the current
and potential influences from political pressures; Economic, the local, national and world
economy impact; Sociological, the ways in which changes in society affect the
organization; and Technological, the effect of new and emerging technology.
Since the company is offering clothing designs for all ages which depend on the
needs and demands of their customers, there are some external factors that the
company must consider in order to stay in the competitive world of business. The
following are some of the factors within the external environment that the management
of the company must consider.
Political (Legal) Aspects
A company will not be able to gain success, good reputation and trust if it will not
consider legal and political sector as part of their strategy. Political and legal sectors
include the needs of the company to follow the given policies and regulations of the
government in order to be considered as legal and authorized business company. In
this manner, ABC Clothing Company should be able to consider political and legal
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aspects so as to show that they value the policies and regulations of the government in
any of the business operations.
- tax policy
- employment laws
- political stability
- environmental regulations
- trade and tariff restrictions
Economic Aspects
It is important that a certain company must also give enough attention to its
economic stability. The economic goal of a certain industry is like an axis in which other
objectives or goals are revolving. The economic factor involves the context in which an
industry belongs, i.e. the configuration of the competition in which a company operates
the active demand of the products, general economic condition of the nation or region,
conditions in relation with other industries, and the situation of the resource markets.
- economic stability
- economic growth
- interest rates
- inflation rates
- exchange rates
Socio-cultural Sector
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Society and culture is an important factor that must be given emphasis by any
business, specifically those who are operating in the global arena. It is important that
the company must operate in compliance with the social systems in order to gain good
reputation and effective public image. On the other hand, cultural aspects is equally
essential, in order to understand the various needs of different individuals that belongs
to different cultures.
- population growth rate
- age distribution
- career attitudes
- consumer behavior
- religion and culture itself
Technological Aspects
The complexities of achieving business success through increased efficiency,
effectiveness and competitiveness, combined with innovative applications of modern
technology, has heightened the awareness of both technology and business managers
towards more strategically oriented approaches for planning and management of any
industry. Hence, it is important that a company must be able to give consideration to the
technological aspects.
- distribution and communication channels
- technology incentives
- automation
- rate of technological change
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- environmental and ecological aspect
- barriers to entry
- production level
- outsourcing decisions
Emphasis on Economics
The marketing concept has been defined as the key to achieving organizational
goals and the marketing concept rests on market focus, customer orientation,
coordinated marketing and profitability. In a profit making business the firm obviously
has to try and achieve this level of customer satisfaction as a way of staying ahead of
the competition and making a profit. Traditionally, marketing has been utilized by the
private sector in decisively increasing the capabilities of an organization. Marketing can
be considered as one of the most important element underpinning successful business
creation. The importance of marketing concept incorporates oft-repeated elements such
as: customer orientation; integrated marketing efforts; and resultant profitability.
In marketing operations, the marketing manager must have the ability to
strategically decide the most essential external environment factors to be monitored in
order to sustain the competitive advantage of the company in the future. In the case of
ABC Clothing Company, the marketing manager of the company should give focus on
the economic aspects. As mentioned, economic aspects includes the possible
conditions needed in order to gain competitive advantage within the
marketplace. Economic sectors include all the possible factors that drive an industry to
know where it belongs such as the condition of its competitors, entire economic
situation of the region and nation in which the company is operating. In this particular
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case, ABC Clothing Company is operating in different areas or regions of the world,
including Asian market.
In this manner,
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Just like what big as well as small multinational companies that are operating
globally. Herein, the marketing manager should be able to monitor the economic status
of a certain country where the company is currently operating or the economic status of
a country in which the company would plan to operate in the future. It is said that if a
country with a good economic status or which is economically stable, there is possibility
to gain more customers which would avail the quality products offered by the company.
Industry Analysis
Companies in the industry sell to a few large customers/buyers. Likewise, the
industry also displays an apparent impracticality for customers/buyers to switch from
one source of supply to another. This is reflected by the cost of raw materials as well as
the costs of operations. Moreover, the products offered by companies in the industry are
essentially interchangeable and indistinguishable. The product could also be considered
as a commodity for the retail industry especially in the clothing business. Moreover, the
industry shows that the cost of the product and service represents a relatively large
percentage of the buyers and customers total cost. Nonetheless, the customers could
if desired backward-integrate specifically by acquiring a company in the industry to
which is included. The following are micro-environmental aspects that are necessary to
consider.
Suppliers Power
Many suppliers provide raw materials to the industry. Moreover, companies in the
industry are not likely to backward-integrate. On the other hand, it could also be posited
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that the companies in the industry are the primary source of revenues for the suppliers.
This makes the competition among suppliers more rigid. Likewise, if raw -material costs
get out of line, companies in the industry would be able to have a hard time using a
different type of raw material to produce the product. The industry is also characterized
with the quality and costs of raw materials having a significant impact on the quality and
price of the products and services produced by the industry.
Moreover, the raw materials provided by suppliers are essentially
interchangeable and indistinguishable. The raw materials are essentially commodities.
Likewise, in an industry where loyalty is also considered necessary, there is also the
possibility for the suppliers to forward-integrate.
Rivalry Among Competitors
Companies in the industry considered to be diverse in their history and culture
and in how they do business. Moreover, the product/service sold by the industry has low
storage costs or is not perishable. Nonetheless, the industry is experiencing fast market
growth.
The products offered by companies in the industry are essentially
interchangeable and indistinguishable. It has also been established that the product
provided by the company is a commodity to a major part of its stakeholders. Moreover,
it also shows that there are considerable numbers of large competitors that dominate
the industry.
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In the said industry, companies in the industry have high fixed costs and spend a
lot of money on plant and equipment. Likewise, production capacity, to be economically
feasible, must be done in large, expensive increments. Significant barriers as well
hinder companies that want to exit the industry. These include regulations, labor
agreements, costs of closing facilities, and the absence of secondary market for assets.
In addition, it could also be observed that staying in the industry is of great strategic
importance to companies in the industry, probably because they have nowhere else to
go.
Threats of New Entrants
The economies of scale play a significant role in the cost of produce the product
and service. Companies in the industry have low fixed costs and spend relatively little
on plant and equipment. Moreover, competitors in the industry are not likely to cut their
price to defend their market position. In an industry experiencing fast market growth,
patents, proprietary knowledge, and brand reputation are also considered as barriers for
companies entering the industry.
Threat of Substitute Products
The price of substitute products is more expensive. This provides the industry a
great following. Moreover, the quality, features and benefits of substitute products are
generally lower.
The Role ofMarketing Research in Decision Making Process
The structured method of marketing research has enabled countless of
producers and consumers alike to better understand their relationship. Generally, the
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role of marketing research in every business environment is to provide information that
are necessary in the decision making processes for the development and benefit of the
company.
There are numerous studies conducted to verify the potential effects of
information in business environment obtained through marketing research. The value of
information in decision making is proven especially in enhancing performance, reducing
uncertainty, and processing business plans. The information collected through
marketing research, may it be qualitative or quantitative in nature is essential in the
overall being of the company.
Furthermore, there are other several experimental studies that have proved that
marketing research is indeed an important element in companies' success
formulae. give evidence that the level of use of marketing research is positively related
to company effectiveness. Every effort exerted in the research process is justified when
the by-product is the optimal performance of the business. In the same way, that more
successful companies carry out marketing research, in sharp contrast to less successful
companies. Focusing on small firms environment, found a positive relationship between
the use of environmental information and small firm financial performance.
Decisions based on marketing research information are an important factor in
overall business success. These studies show the linkage of marketing research and
companys performance. Again, the role of marketing research in the decision making
process of the company is to provide imperative information that is very vital in the
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growth, success and survival of the marketing course of the product in relation to the
business as a whole.
Conclusion
The results of the PEST analysis carried out on the macro-environment of ABC
Clothing Company indicated very significant effects for the industry and company itself.
Therefore, one could conclude that the international expansion of ABC Clothing
Company is expected to be feasible and grow faster than average. Regardless of
current trends and unpredicted circumstances, the company is now ready for the
implementation of plans.
In relation to the role of marketing research in decision making processes of the
company, it could be considered that marketing research is undeniable one of the most
important tool in starting a business. Thus, its role is indispensable in the process of
business expansion especially to the case of ABC Clothing Company who is now ready
for international take-off of its operations and products.
Read more: http://ivythesis.typepad.com/term_paper_topics/2008/02/pest-analysis-
o.html#ixzz1O4ZLtaaU