Australia Consumer Market Behaviour - Report Example

Marketing Report: Woolworth Marketing Report: Woolworth Executive Summary Consumer market behaviour plays a significant role to develop the marketing strategies. Woolworth is one of the famous retailing and merchandising stores operating worldwide. This report analyses Australian consumer market behaviour and its impacts on company’s marketing strategies. In addition, the report shall focus on the theoretical concept of the external influences of Australian market on consumer behaviour. Table of Content Executive Summary 2 Introduction 4 Company and Market Overview 4 External Influences 5 Demographics 6 External Influence- Profile of Woolworths 7 External Influences assisting Business 8 External Influence assistance to Woolworths 9 Consumer Profile 10 Conclusion 11 References List 12 Introduction Company and Market Overview Woolworth is Australia’s largest supermarket and grocery chain stores in Australia. The company was first established in 1924 (Ferrell & Hartline, 2012). The company grew sufficiently after December 1924 and established several stores and branches across Australia. Woolworths sells a variety of goods at cheapest prices claiming money back guarantee (Ferrell & Hartline, 2012). The company with in twenty years of its establishment had stores in every sates of Australia. The company provides a range of grocery, fruits and vegetable and different ranges of food and other products. Woolworth has now become one of the exclusive grocery stores in Australia. Australia is the thirteen largest economies with the Gross Domestic Product of about US$ 1.4 trillion. There has been about 3.25 percent annual growth in the economy. The stats reveal that the economy has uninterrupted annual growth to 2014 since more than 20 years (Mills, 2002). The economic growth and sustainability has enhanced consumer’s behaviour, people have higher purchasing power and seek to acquire goods at competitive prices without compromising on quality (Mooij, 2010). There has been about 2 percent increase in revenues from the retailing industry (Ferrell & Hartline, 2012). The National Australian Consumer Report highlights that the consumer seeks to attain more satisfactory services and customer relations. In addition, advancement in the technology uses of application has highly influenced the Internet retailing and marketing (Ferrell & Hartline, 2012). In addition, the report highlights that the grocery retailing in Australian grew to 51 percent, whereas the non-grocery retailing grew by 49 percent sales revenues. This shows that the consumer market is strong due to its economical sustainability that has eventually increased the consumer efficiency in the retailing sector (Ferrell & Hartline, 2012). Consumers are the prominent features that drive an economy. Therefore the all the marketing strategies and decision are based on the consumer behaviour. It is essential for an organization to understand patterns of consumer behaviour to develop marketing strategies with respect to the consumer behaviour (Ferrell & Hartline, 2012). In addition, consumer behaviour also allows the organization to perceive trends in the market so that they may introduce or transform their product and services accordingly. Marketing strategies are the marketing plan designed to attain market objective (Sullivan & Adcock, 2002). The marketing plan involves determining the demands of the market and setting goals with respect to these demands (Ferrell & Hartline, 2012). While planning a marketing plan and objective it is essential to determine external and internal factors that highly influence the consumer behaviour, therefore the marketer shall carefully determine these factors to develop effective marketing strategies. External Influences A market planner shall carefully determine consumer behaviour of its targeted market; therefore it is essential to understand external and internal influences on consumer behaviour (Ferrell & Hartline, 2012). Business operates in various dynamic environments; the political, legal, economical, political and technological conditions in these regions are different from each. Therefore, while operating in a certain region the business management shall carefully determine the external influences to design compatible business strategies. External influences play a major for the organization to make adequate business decision regarding its operations, management, marketing etc. Studying and understanding external influences of the region allow the organization to make adequate changes in their product design to meet the demands of the market. It also allows understanding the social pattern and behaviour of people towards the business motives. According to the study of Ferrell and Hartline (2012), social patterns and behavior drives the society, therefore it is essential for the organization to understand the overall patterns of society to develop coherent understandign about the preceptions of the society while developing their business strategies (Ferrell & Hartline, 2012). This allows organization to understand the taste, preference and demands of the society, that can be take under consideration. The information can be used to understand consumer psychology and behaviour. Organization can make use of it to design, innovate or introduce product line to anticipate demand. External influences involve, culture, lifestyle, references group and household. Organization various external influence understand consumer behaviour, one of the prominent factor is demographics. Demographics Demographics are the statistical information regarding a population, the quantifiable subsets of the demographics are used to characterize or generalize a certain population at a specific point. The demographic data is used widely all around the world to understand public opinion polling and marketing. Hence, it can be said that demographic data can be examined to perceive gender, age, and ethnicity, knowledge about languages, employment level, mobility, home ownership and location. In addition, it allows understanding the historical changing patterns and trends of a population over a time period. According to Mills (2002) as cited in ‘Retail Pricing Strategies and Market Power’ demographic data provide a complete overview about the trend, patterns and behaviour of the society. It allows understanding the general public their requirement with the population. For example, Toyota in realized the purchasing power of women and (Kardes, Cronley, & Cline, 2010) therefore created campaigns targeting female market. External Influence- Profile of Woolworths Woolworths carefully identify these external factors to develop an effective marketing strategy. The company emphasizes on demographic data to anticipate demands of Australian. The national demographic statists shows that the in last two years Australian there has been increased of about 407,000 people in the population of Australia. Increase of about 24 percent in he overseas migration has been determine, this shows the Australian society has multinational cultures and people from different regions. Therefore Woolworths has increased international food items in their stock. In addition, Australia has 5.8 percent (2013) unemployment, the purchasing power of people is relatively higher that has increased consumption of grocery items. Woolworths has increased grocery items more than non-grocery items. In addition, women workforce has increased to 3.2 percent in last two years this shows the number of working women due to which trend of processed and ready made food items have increased. Woolworths also focuses the age groups in the region, for young people. Woolworths provides innovative product designs, technology advancement and online store facilities to its customers. The culture and strategy of company illustrates that Australian economy is more focuses towards time saving and processed food. In addition, working women in Australia has increased in last two decades therefore; Woolworth is now focusing increase stock and ready-made variety. In addition, the stats show that the grocery products of the company have also increased through out the time. Moreover, the workforce in Australia is composed of 40 percent of international workers. Woolworths has also included different international food range and products to meet the demand of international consumers. In addition, the cultural occasion such as, New Year, Easter the company facilities special discounts and promotions. The company has also realized that the purchasing power of female has increased through out the time. In addition, the technological advancement and inducement has highly influenced the lifestyle of people of Australia (Smith & Taylor, 2004). People are more inclined towards online shopping websites and application, therefore Woolworths is now focuses on expanding it marketing on the Internet forum, it is also forecasted that the company may enhance its shopping and introduce shopping application (Woolworths, 2014). Australia has high status of living because of low unemployment; people are looking forwards for effective customer services relation and quality products. Woolworth is now focuses to enhance its customer services and include more variety of high quality products for its customers (Lamb, Hair, & McDaniel, 2008). External Influences assisting Business A consumer goes through several purchasing process, they make several choices about the several product and services they may choose to purchase the product. The external factors of consumer behaviour allow understanding the overall perception, behaviour and attitudes of people (Quester, Pettigrew, Kopanidis, & Rao Hill, 2014). The demographic profiles allow understanding the employment rate, workforce, age groups, and ethnicity etc. in a certain region. The information provides a complete cultural and lifestyle overview of the population. For example if the demographic profile of certain population shows that the age group of 18-25 years are more this reflects educated demographic. It allows understanding the segment and subgroups existing in the population. Secondly, it provides an overall picture of the typical member and characteristics of each segment. According to age, gender, income level, race and ethnicity these demographic profiles are classified that are used to develop marketing strategies. If females are more in the populations than males, the marketer may think to make the marketing plan with the females perspective adding pink colours, sentiments etc. If income level of people is high, then this shows strong purchasing power and people are more inclined towards quality goods than cheaper products. Race and ethnicity allows understanding their cultural foods and cuisines. Retailing companies use the information make decisions about product designs, advertisement mediums and product line considering democratic profiles. It may allow to identify the problem that might the company may encounter to introduce the product with respect to their beliefs, values and morals. External Influence assistance to Woolworths In order to make effective consumer purchasing decision, Woolworth’s analyses external factors affecting consumer behaviour. The information about the Australia demography has assisted Woolworth to trace its customers throughout the region. The age group has allowed the company to determine the most running items between different age groups. It has allowed company increase it grocery products more than its non-grocery product. Through the statistical report, the company is able to identify the number of working women and overseas workforce in Australia, due to which the processed food range and international food items in its stock are increasingly demanded. The stats reveal that Australia has about 1.8 percent increase in the overseas migrants in Australia, due to which Australia has eventually turned to be multicultural country. Woolworth has increased its international goods, halal foods, and other species in the food category. In addition, young people (age group 18-24) are the major focus of the market; their interests towards the technology and gadgets have been increased with time. Woolworths takes this an opportunity to enhance its online stores and Smartphone application (Marketing, 2012). Furthermore, the company is now focusing to induce more technology facilities and customer services for its customer in the stores to attracted more customers. The demographic stats also reveals about the average death rate of people dying of health issues. The company uses the information as a source to promote healthy and hygienic food persuading people for a healthier lifestyle. In addition, People are more inclined towards the safety and health care assurance; therefore, the company is including environmental friendly and energy saving appliances in the stores. Consumer Profile Woolworths offers wide range of household products, it has more than 700 supermarkets and serve about more than 13 million customers. The company aims to provide fresh and quality products to its customers at the best prices. The customer of the company ages between 18-35 years, mostly females is a frequent customer at the superstore (Tellis, 1986). The main focus customers of Woolworth are the Australian citizens but now the company is also focusing demands of foreign customers living in Australia. Almost every social group is Woolworth’s customer, as the house holding products are the bare necessary. With the passage of time, workingwomen and young people have gradually increased their visits because they are more inclined toward eating fresh and healthy. Therefore, Woolworths has now increased its food range and products. In addition, it has enhanced its advertisement and marketing campaign as the competition in the retailing industry has gradually increased. Conclusion Analysing the information it can be determined that the consumer behaviour is the dominant feature to direct the marketing strategies of the company. Though, internal and external factors play a vital role to understand consumer attitudes, perceptions and behaviour. Therefore, it is essential for a market planner to understand consumer behaviour of the particular market. External factor provides a complete overview and insight of the behaviour attributes, purchasing potential and priorities of people. These are helpful for the organization develop its marketing plan and strategies. This external factor also allows the organization to understand purchasing decision of the customers. The information can be helpful to understand the customer behaviour in the long run. References List Barrett, J., Donaldson, W., Kiwiets, E., & Pearson, M. (2009). FCS Marketing L4. Capetown: Pearson South Africa. Ferrell, O. C., & Hartline, M. (2012). Marketing Strategy, Text and Cases. New York: Cengage Learning. Kardes, F., Cronley, M., & Cline, T. (2010). Consumer Behaviour. Mason: Cengage Learning. Lamb, ‎., Hair, J., & McDaniel, C. (2008). Marketing. Mason, OH: Cengage Learning. Marketing. (2012, February 20). Woolworths launches virtual stores to promote mobile grocery shopping. Retrieved from http://www.marketingmag.com.au/news/woolworths-launches-virtual-stores-to-promote-mobile-grocery-shopping-10917/ Mills, G. (2002). Retail Pricing Strategies and Market Power. Melbourne: Melbourne University Publishing. Mooij, M. d. (2010). Consumer Behavior and Culture: Consequences for Global Marketing and Advertising. London: SAGE Publishing. Quester, P., Pettigrew, S., Kopanidis, F., & Rao Hill, S. (2014). Consumer behaviour: Implications for marketing strategy. Sydney: Irwin-McGraw Hill. Porter, M. E. (2008). Competitive Strategy: Techniques for Analyzing Industries and Competitors. NY: Simon and Schuster. Smith, P. R., & Taylor, J. (2004). Marketing Communications: An Integrated Approach. London: Kogan Publishers. Sullivan, ‎., & Adcock, D. (2002). Retail Marketing. Mason: Cengage Learning. Tellis, G. J. (1986). Beyond the many faces of price: An integration of pricing strategies. Journal of Marketing , 50 (1), 146-160. Woolworths. (2014). Woolworths Online Shop. Retrieved from http://www.wowlink.com.au/wps/portal/!ut/p/c0/04_SB8K8xLLM9MSSzPy8xBz9CP0os3izQB8jJydDRwMDA2djA6Mg_zDHsNBgYwN3U_2CbEdFAI9eKqI!/?WCM_GLOBAL_CONTEXT=/cmgt/wcm/connect/Content%20Library%20-%20WOWLink/WOWLink/Topic%20Centre/BuyingMarketing/WWonline Read More