Country Road: Business Activities, Strategies, And Marketing Concepts

PESTLE Analysis of Country Road

The paper focuses on the business activities and operations of Country road. It is the biggest retail corporation in Australia who deals in clothing, accessories, and footwear in the market. The paper explains that how the company uses PESTLE model to identify and evaluate the plans and strategies of the competitors. Further, it also describes the marketing mix strategies and marketing concepts of Country road. The marketing mix strategy is an effective tool to overcome the competitors in the international market. It also explains the primary market as well as the secondary market of the company. Along with this, contemporary issues which are faced by the company have been explained in the report.

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Country road is a middle market clothing retailer in Australia, South Africa, and New Zealand. South African corporation Woolworths holding limited is the parent company of country road. The firm produces women’s footwear, clothing, accessories, men’s clothing, accessories, footwear and children’s clothing. The company was founded in 1974 with its headquartered is located in Melbourne, Victoria, Australia. Further, there are approx 10001 employees employed in the company. The firm closed its American stores and started producing childrenswear products.

Country road provides clothing, footwear, and accessories to men, women, and children. Therefore, industry target market includes women, men and children’s.  Country road is one of the significant and well-known brands in Australia and highly respected for stylish apparel and top quality of accessories and homeware. The limited choices of people live in Australia. Therefore, the firm focuses on the needs, requirements, and expectations of the women, men, and children. In addition, the organization diversified its products into men D2D wear, women D2D wear, accessories and homewares products. Along with this, the geographical market includes Asian, New Zealand, and US market. It creates value for customers through variety and quality. PESTLE analysis can be applied in country road Australia. It is a strategic and dynamic tool in order to evaluate and understand the market growth and business opportunities. Pestle analysis stands for political, environmental, socio-cultural, technological, legal and economic etc. The pestle analysis has been discussed below (Bennett & Chorley, 2015).

Political Factors: These factors play an integral role to determine the factors that have an impact on the company’s profitability and revenue. The country road analyzes and identifies the political factors such as level of corruption, trade regulations and tariffs, pricing regulations, wage legislation, tax rates and product labeling. These factors influence the success and growth of the company (Clapp & Dauvergne, 2011).

Opportunities and Threats

Economic Factors: The macro environment factors such as saving rate, interest rate, inflation rate, foreign exchange rate and unemployment rate. Country road measures and identifies these factors to gain the competitive advantages in the global market. Thus, the company uses pestle model to measure these factors in the competitive market (De Bruyn, 2012). ).

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Social Factors: These factors influence the culture of the organization. The culture factors include beliefs, values, customs, religious and culture of the people. Country road analyses and identifies socio-cultural factors to increase the sale of clothing, accessories and footwear products across the world (Berkman, Kawachi & Glymour, 2014).).

Technological Factors: The technological factors disrupt several footwear and accessories industries in the world. These factors affect the trading activities and operations of the company to gain the competitive advantages in the world.

Environmental Factors: The environmental factors include climate change, weather, and environmental pollution act which affect the goals and objectives of the firm. Country road evaluates and identifies the environmental factors before entering intio a new market (Epstein & Buhovac, 2014).

Legal Factors: Country road measures and analyses legal factors in order to run the business activities successfully and powerfully. The legal factors include discrimination law, copyrights, intellectual property law, employment law, antitrust law and health and safety law.

After various researchers, it has been evaluated and analyzed that country road faces various opportunities and threats. The opportunity available to the country road is growing and expanding demand for clothing, footwear and accessories products across the world. It is the biggest opportunity for the company. In addition, the firm has an option to make a good position and image in the market by providing attractive fashion products to the consumers. Apart from this, immense and high competition is one of the biggest threats to the organization. The competitor’s sale the products at low prices, therefore, country road has to face several challenges in the competitive market.

Various marketing concepts are used by the companies to beat the competitors in the market. These concepts also help to identify and evaluate the needs, expectations, choices, preferences, and tastes of the customers across the world (Baker & Saren, 2016). The marketing concepts have been discussed below.

Production Concept: It is one of the significant and oldest marketing concepts. This concept is used by many companies to reduce the risks and to attain the long-term objectives and goals of the organization. By using this concept, companies focus on the production and distribution process. In today’s era, this concept is essential and useful for every organization.

Marketing Concepts Used by Country Road

Product Concept: By using product concept, the company is able to offer a good and unique quality of fashion products to the customers. Further, it also helps to improve the product quality, size, and quantity. Product improvements and quality are a significant part of the marketing strategies through which the firm can maximize its revenue and profit within the organization.

Selling Concept: The Company cannot sell the products without using selling concept effectively. It is the effective tool to increase and enhance the sale of the fashion and footwear products. The firm can maintain a dynamic and unique relationship with customers by using this concept. The main aim of this concept is to increase and maximize the revenue and profit of the firm.

Marketing Concept: The success and growth of marketing concept depend on the target audience. The firm focuses on the needs, wants and desires of the customers by initiating this concept in the organization. Under this concept, customer values and beliefs are the effective routs to achieve profits and sales of the company. The selling concept and marketing concept are two dynamic concepts. These concepts are totally different from each other (Armstrong, Adam, Denize & Kotler, 2014).

Country road follows marketing concept in the global market. For example, Country road produces accessories, footwear, and clothing for the women, men and children in the international market. Further, this concept is suitable for any type of fashion products and market. Along with this, promotional and advertisement strategies are used by the company under marketing concept. The company uses this concept to reduce the uncertainty and risks of the market. Apart from this, selling concept is also used by the firm to maximize the sales and revenue across the world. By using this concept, Country road is able to hold the customers across the global world. For example, the company uses online purchase system to promote the selling concept.

The marketing concept is a significant concept to gain the competitive benefits in the competitive market across the world. The marketing mix has been discussed below (Peter & Donnelly, 2011).

Product: It is the important strategy of the marketing mix in order to differentiate the company products from the competitors in the market. The firm focuses the needs, desires, and preferences of the customers to produce the dynamic products in the market. Country uses this concept to increase the sale of accessories in the market.

Marketing Mix Strategies

Price: It is an integral element of a marketing plan to determine the profitability and success of the firm. This concept can be used by Country road to attract more customers in the market. The company set the appropriate and reasonable prices of accessories to retain the customers in the competitive market. 

Place: It is the important part of the marketing mix strategy. Country road uses this concept in order to hit the competitors across the world.

Promotion: It is the important component of marketing which help to enhance and maximize the profitability and sale of the company. Advertisement strategies are used by country road to maximize the sale of accessories products in the market.

People: People play an integral role in order to maximize the number of customers in the international market. The company provides training and development coaching to render the services effectively.

Process: Effective and unique processes and systems are followed by the companies to run the business activities and operations successfully and effectively. Country road uses effective processes to sale the accessories and footwear in the market.

Physical evidence: The marketing mix strategy is not completed without physical evidence. The company uses this concept in order to maintain a good position across the world (Baker, 2014).

Market segmentation is one of the biggest marketing strategies in the market. Country road uses market segmentation strategy to reach its target audience in the international market (Babin & Zikmund, 2015). The company divides its market into different segments to attract the more customers across the world. It helps to identify and evaluate the needs, wants, choices and demands of the customers. The four types of the market segment which are used by Country road in order to measure and identify the desires and expectations of the customers. The four market segments have been discussed below (Wedel & Kamakura, 2012).

Demographic Segmentation: It is one of the simplest market segmentation which is used by Country road. This segmentation can be implemented in the accessories and footwear market. The company divides its target market on the basis of demographic (Weinstein & Cahill, 2014).

Behavioral Segmentation: Country road divides the market on the basis of their usage, behavior, and decisions making a pattern. For example, women will prefer accessories, and children will prefer footwear and clothing. It is an example of behavior based segmentation. It is the important segment of the marketing.

Market Segmentation

Psychographic Segmentation: The psychographic segmentation is one the biggest segments of the market. It is quite similar to behavioral segmentation. Under this segment, country road divides the market on the basis of lifestyle and activities of the people (Kahle, 2014).

Geographic Segmentation: This segment divides the market into different people on the basis of geography. This segment is very easy and it is used by many companies across the world in order to beat the competitors in the market (Boone & Kurtz, 2013).

Primary and Secondary Market of Country Road: Country road is the biggest market retailer in New Zealand, Australia, and South Africa who offers women, men and kid’s homewares, accessories, clothing, and footwear products.  The primary market of the company is women’s, young girls and boys and secondary market is men’s, and kids. The primary market and secondary market help to increase and enhance the sale and revenue of the company.

Country road is the biggest brand in Australia that deals with the clothing, footwear and accessories products. Country has been considered as a subsidiary company for Woolworths South African Corporation. In today’s world, the company has been able to maintain a separate and unique identity in the international market (West, Ford & Ibrahim, 2015). The country road competitors include the TJX companies Inc, food lion, Poundworld, and Trader Joe’s. The company uses marketing mix strategy to overcome the competitors across the world which has been discussed below (David, 2011).

Product: Country is the biggest company that deals with several products such as clothing, footwear, and accessories. A portfolio has been maintained by the company for each segment such as women, men, and children. The main products of country road accessories related to the footwear and sports. Accessories are the significant products in the organization in order to increase the profit across the world. Country road uses effective product strategy in order to provide maximum comfort to the customers.

Place: The Company manages and operates its business in Australia. Mainly, the firm distributes its products in Australia, South Africa, and New Zealand. Highly investment is done by the company in the field of distribution and advertisement to fulfill the needs and requirements of the customers. It also helps to maintain a dynamic and favorable working environment within the organization. Along with this, the brand has exclusive dealer outlets and stores outlets. Further, the company has appointed professionals to select the suitable locations in order to sale the accessories in the international market. Apart from this, the firm uses official web system to tackle the product distribution. Online channels are also used by the organization to increase and encourage the sale and profit.

Price: Country road follows pricing policy to capture the market across the world. Low prices have been fixed by the company to maximize the sale of accessories in the competitive market. This policy also helps to know and understand the plans, policies, and strategies of the competitors. This policy provides a good option to capture the whole market.

Promotion: The effective and dynamic promotional strategies are used by the company in order to promote and encourage the accessories and fashion products in the international market. Along with this, various other mediums are also used by country road to connect with the target audience in the market (De Mooij, 2013).

People: The target audience directly related to the business and trade. Further, the employees are essential in marketing because they are the ones who render the accessories and other services to the customers. It is important to appoint and train the suitable people to render the best service to the customers.

Process: The dynamic processes and systems of Country road influence the execution of accessories products and services. The well-tailored process is used by the firm to reduce the cost of the company. The effective and dynamic strategies help to maximize the profit of the firm.

Physical evidence: Physical evidence plays a significant role in order to increase the number of customers in the market. Physical evidence is necessary while selling the accessories to the customers across the world. Now it is assumed that marketing mix strategy help to stand out against the competitors in the international market.

The target market of country road includes men’s, women’s, kids and niche market. In today’s era, the company also focuses and measures the needs, tastes, preferences, wants and requirements of the young girls and boys in order accomplish long-term objectives and goals of the company. The target market of country road is wider. Country road uses effective strategies to meet its target audience across the world. The company can take several opportunities by fulfilling the needs, requirements, and desires of the customers (Zenker & Beckmann, 2013).

Various recommendations have been given to country road in order to improve the marketing mix strategies in the competitive market. The firm should produce fashionable and designer clothes and footwear to attract and retain more women’s and kids in the world. Along with this, suitable prices must be fixed by the organization to stand out against the rivalries. In addition, location and place must be set by Country road to increase the demand for footwear and clothing in Australia, New Zealand, and South Africa. Apart from this, promotional and advertisement strategies should be used by the firm to increase the demand for the products to beat the competitors. In addition, Country road should provide training to the people in order to improve the services within the organization. Furthermore, effective processes and systems must be implemented by the organization to run the trading activities effectively and powerfully. Country road also focuses on the psychical evidence concept to attract and retain more consumers. Along with this, business level and corporate level strategies should be used by the company to determine the success and growth in the competitive market.

The contemporary issues include CSR, ethical concerns, globalization and environmental concerns. All these issues affect the success and growth of Country road and its marketing strategy. If the company is unable to follow CSR practices then it will affect the sustainability of the environment. It will also influence the profit and rights of shareholders adversely. In this way, it will also affect the revenue and success of Country road. On the other hand, globalization will also affect the long-term mission and vision of the firm because it increases the communicable diseases in the organization. Globalization ruins the local economies and environment the country thus, it affects the growth and success of Country road. Ethical and environmental issues also affect the long-term goals and objectives negatively (Weiss, 2014). Ethical issues also disrupt the culture of the company negatively. As a result, it also affects the performance and efficiency of the employees adversely (Smith & Murphy, 2012). Along with this environmental concerns will affect the behavior, needs and preferences of the target audience. It will have a negative impact on the sustainability of Country road. All these issues will influence trading activities and operations of the company adversely. The company should manage and control these issues in order to increase the revenue and profit in the market.

Conclusion

On the above aforesaid information, it has been evaluated that Country road is one the biggest brands in Australia which provide fashionable and attractive clothing, and footwear products to the customers. Apart from this, pestle analysis is done by the company to evaluate and identify the external factors. The firm uses marketing and selling the concept to increase the sale of the products. In addition marketing mix strategies are used by Country road to beat the customers across the world.

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