Company Background

Discuss about the Online Pharmaceutical Affiliate Programs.

Bunning is the leading retailers of home improvements and outdoors products in New Zealand and Australia, major suppliers to projects builders, housing industry and commercial tradespeople.  Operating from networks of larges warehouses stores, small format stores, truss sites and trades centres, Bunning caters for consumers and business users. Revenues across the 2017 financial year totalled to $11.5 billion. As from December 2017, there were 253 warehouses, 77 smaller format stores, 33 trade centres and three trusses operating across New Zealand and Australia.  As at 30 June 201, the company employed over 40,000 team members.  The Bunning warehouses brand is founded on three strategic pillars: lowest prices, wide ranges and best customer service.  In the late February 2016, Bunning completed an acquisition of home base, the second largest home improvement and garden business operating in the United kingdoms and Ireland. At the same period, the company opened in St Albans with further pilot stores.  There were 15 Bunning warehouses and 234 home bases stores operating across the Irelands and UK[1].  For the better understanding of the Bunning’s marketing mix, I decided to collect my information on a weekly basis on the street and also, more importantly, decided to seek further information from Bunning branch in Perth, Australia.

Of recent, Bunning discounts retailer has been encountering a continuous reduction in the profits.  The reason behind the steady decline is due to higher clearance stocks and ongoing decline in the sales growth. According to the suggestion from one of the loyal users, For the Bunning to re-establish in both local and international market, it has to adopt the differentiation approach from other players in the market. One of the tactics it has taken is the changes in the physical and service surrounding as its stores as well as business operations.

Online business model: being constant online users, I think in the contemporary context, technology is the primary aspects that impact every element of the life. Thus, use of the technology in the business cannot be overlooked.  For the company to improve the situation, it has implemented an online business model in existing business frameworks to attract technologically savvy users. On visiting the firm the marketing manager claim, selling more products at the first price rather than a discounted price is of an essence. He still adds that policy would assist the company to avert high stock clearance and grow the firm’s revenues generation[2]. With the above strategies in place, I contemplate the company will improve the business situation by promoting sales and reestablishing or repositioning company’s’ presence in the Australian retail segment through differentiation[3].

Challenges Faced by Bunning

Stocking global trends; the company is one of the biggest retailers in the Australia markets that offer solutions to the customer’s attires, home care, and general merchandise. As part of the strategy change, the company provides the users with a further collection of various commodities that are in line with the global demands and trend. The strategic objective adopted by the firm is to enable it to gain a competitive edge over its opponents. Company’s manager says that it has taken a differentiation business strategy to regain market share by offering a better assortment of products and collection as the global trends, better service delivery to the customers and integrated online business model. The above statement goes along with the interviewed customers.

Differentiation through unique business model:  through the collaboration of online and bricks and mortar business model, the company creates a unique opportunity in the market. According to the literature, most companies in the retail industry depend on either physical business segments or online business framework to market their products[4]. Therefore, I guess the business models have created a competitive advantage for the company as it has a presence and virtual world that competitors lack.

The finest marketing components are towards selling quality products which a lack of demand. I think the marketing executives of Bunning need to improve and examine different kinds of the products with differing consumer’s preferences. The managers also ought to comprehend the associations of the goods in the marketplace as it will expand the overall needs of the firm. Diversity through product differentiation:  the company has focused on offering users with merchandise in line with the global trend. It has enabled the firms to differentiate itself from the competitors; it has a better understanding of the latest trends and demands in the international markets. On the visiting the company’s outlets, I can understand the diversity of the products assortment is one enabling the customers to have several options in the buying decision. To further understand why the outlets are always full with costumer, I interview one of the shoppers who say that, the company has created its range of merchandise with the aid of well-renowned fashion designers that keep track of the global trends, providing values to her preferences[5].

For me to comprehend, the prices rates of the Bunning products, I decided to sample the price of the Bunning’s products randomly. Price is one of the essential aspects which influence the purchasing decisions of the users broadly. All the influential merchandises of Bunning fall under the specific marketing arrangement[6].  The company needs to assess and evaluate all the factors of this particular market structure in an appropriate way to accomplish the best pricing approach in the whole marketing processes. The customers in the specific marketplace system get various types of the products choices as all the goods and services are readily available. The company has changed the pricing strategy by selling the goods at first price rather than a discounted rate. Cost advantage: the company has reduced its reliance on the discounts and concentrated on offering better quality products at reasonable rate.  According to my view, it appears like the approach of the firm to minimise the merchandise discount is bound to fails in the market, but, the facts are Bunning has concentrated on offering high quality produces.  The users have reacted to this strategic favourably as they demand better-valued products at quite a reasonable rate rather than purchasing inferior quality products.

Strategies Implemented by Bunning

The model of promotional mix comprises different style of advertisement procedures and approaches in the global business actions. The growth of a suitable commercial and elaboration of the appropriate promotional mix allows Bunning to assess two-way communication course between the sellers[7]. Bunning is specific towards the enhancement procedure of the products based on the requirement of the marketplace.  According to the employers and present shoppers, two modes of the promotional and advertisement process that Bunning advances in the marketing plan exist. It includes the modern styles of publicity and the old-fashioned way of advertisement. The conventional mode entails notions of using paper media such as statistical reports, journals and articles. I approve the above statement as have severally seen the articles about company occasionally. The modern method of advertisement has given the company breakthrough in the marketing plan for the products. The current process of communication method comprising using emails, television advertisement and official company’s websites.  The use of social media techniques delivered on of the critical advances and backed to the most important portion towards the developments course of a proper E-commerce plan[8]. Bunning intensely believes and agree with a specific point of the development of appropriate E-commerce strategies which allows the organisation to assess the wants and demands of the users. The improvement process of a proper promotional movement enables the Bunning to encompass every component of marketing including the advertising, packing, sales methodology and sales personnel. With the assistance of online business model, the company aims at improving the sales figures and repositions itself in the retailer segment. At this time, I release that online business model has enabled the company to attract more users and also offered an opportunity to enhance brand visibility.  Other essential benefits include the 24/7 business operations has been better service delivery to the consumers[9].

The place is a concept of the geographical location.  A direct sales tactic places a positive influence on the total sales procedure of the organisation.  Observing the issue of the convincing factors, Bunning need to choose the best place where every user finds it expedient towards establishing proper availability. The organisation needs to improve a good delivery structure which concentrates on the total business state by upholding a supply chain control and decreasing the transportation costs. 

Additional stores services: another strategy change Bunning has implemented is broadening the services range that is offered by the firm to its clients and enhancing the service delivery quality to the clientele.  The service speed for the service delivery offered to the users at their shops is efficient and faster.  It has enabled customers to have a suitable impression of the business operation.  Additionally, the change of store structure, setting and extra facilities at the shop outlets such as in-house coffee shops has improved the brand image in the user’s minds[10].

Benefits of the Changes Implemented by Bunning

Selecting people in a company is one of the critical points which are highlighted in the development of a proper marketing plan[11]. The marketing managers claim that notion of human resources management is one of the crucial aspects and essential concepts which much organisation develops. The contributions of human resources generate a vital point towards the organisation goods achievements.  For instance, manager says that company is planning to hire in-house stylists that would design apparels exclusively for the users by considering the preferences of each user and also the international trends.  Therefore, the strategy would improve the brand loyalty among the users and also company profits[12].

On asking the marketing manager about the process of the company, he responds by saying, process concepts are essential elements which are included in the Bunning marketing approach to enhance customer evidence[13].  The organisation follows a process-linked business approach that assists in satisfying a large division of the local and international consumers. The functional process helps the Bunning to achieve a level of intermediate proficiency regarding its competitors in markets both locally, nationally, and globally.

According to the brand marketing branch manager, Bunning has two kinds of possessions; tangible and intangible. The actual users are those assets which customer buys from the organisation, but its presence can be felt. For instance, the customer’s services and proper feedback systems are the ideas of the intangible assets which are not visible, but its presence felt. Both of the possessions are crucial in the improvement of an appropriate marketing plan. Value creation: values creation refers providing better products at affordable prices than competitors. The company has created value for its users as they offer high-end products that are in line with the international trends[14]. I decided to interview one of the employers who has worked for over seven years in at Bunning. She says that company provides a better service to its customers, both in-store and post-purchase to retain the customer and grow the value proposition. The company also offers value to its clients by providing personal styling options, t-shirt printing, better store layout, a range of specialty products,  coffee shops and visual merchandising to motivate customers to linger[15].

Conclusion

From the above analysis and discussion, I can conclude that is essential to understand the efficacy of the approach adopted by Bunning. Initially, the company has been relying on taking the new online business model. Unlike the traditional model, the innovative methods help to generate revenue in the online process[16]. Also, it is in my knowledge that current customers rely on the internet and thus revising the existing business policy is highly essential for the management of the firm. The Bunning can build a healthy international relationship by integrating online model between the employees and uses[17]. Additionally, the company has recommended the selling at first prices rather than discounted rate.  The revised pricing policy ensures that corporation must avoid high stock clearance at the same period enabling a revenue generation.

Since the total numbers of Bunning’ stores are less in the market and to gain the customer’s attraction, I think it is wise and essential for the company to expand the style of the outlets.  Apart from that, the company should have a close look at the global trends in the retail sector and revise the existing policies based on the international market trends. Global markets trends of the retailers offer more payments options, and at the time of incorporating the online business model, the firm must broaden the section to upsurge the level of user’s satisfaction.  More service must be added to the click and pay facility of the mobile phone initiatives which would help the company to get more number of the online customers.  Therefore, going through all these approaches of the company, I can state that selecting marketing strategies are justified enough and it is projected that the firm would rejuvenate with the assistance of the approaches[18].

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