Situation Analysis for Canberra Gardening Company - Case Study Example

Assessment 3 Name: Institution: Date: Assessment 3 Situation Analysis Introduction The situation analysis for this assessment is about Canberra Gardening Company based in Canberra, Australia. Canberra Gardening Company is a company that offers various services including garden refuse removal, lawn mowing, tree lopping, plant pruning, fertilising and watering plants and lawns and some basic landscaping services. The company at being the leading garden services provider within the next ten years from its inception. In this assessment, a solid analysis of the uncontrollable environment, major market competitors, type of competitors, as well as an understanding of the consumer behaviour trends in the entire gardening industry in Canberra. A further geo – demographic data about Canberra will be provided to be able to decide on the location for this business. The second part of the assessment will carry out a marketing strategy that Canberra Gardening Company will use to start the gardening business in Canberra (Australian food statistics 2012-2013). Industry Analysis In Australia, the gardening part of the economy is under the Nursery and Gardening Industry that is represented by a body referred to as the Nursery and Gardening Industry, NSW and ACT ltd (NGINA). Companies are expected to obtain membership with the representative body The industry provides services such as training, consultations and technical support among others to companies, government departments and consultants. The industry has experienced extensive and progressive growth from 2015 to 2016 and the statistics on revenue, annual growth, employment and business stand at $ 3bn, 3.1 %, 22,080 and 11,459 respectively (Australian food statistics 2012-2013). The implication is that the gardening industry is thriving well and this provides a good avenue for other similar business to start and flourish. The businesses in the industry have continued to grow to meet the growing demand from the income rich and time poor households. Another demand for the industry services is the private companies and the multi - unit households. It is through these market segments that the industry has experienced extensive growth and a steady industry revenue growth for over the years (Budget 2016 -2017). Factors of Uncontrollable Environment Political and Legal factors Australia is under the Commonwealth realm and has two territories including the Australian Capital Territory (ACT) and Northern Territory (NT). With favourable and stable political will in Australia, it is safe to make an investment in the country (Australian food statistics 2012-2013). Australia has an open, progressive, stable ad environment and provides the investors with a high degree of certainty and confidence. The effectiveness and the transparency of the government have received high ratings together with the government flexibility and adaptability to changes in the economy. The legal framework is transparent, efficient and open making people gave trust with the judicial systems. Australia is the host to growing economies, stable political and business environment, well – educated, skilled and multi – lingual workforce. This, therefore, makes Australia a competitive cost base and a strategic time zone for businesses. With this kind of an environment, it drives many MNCs as well as innovation and technology. Economic Factors The Australian economy is ranked thirteenth largest country in the world which makes it a very prosperous country to venture in. The country’s national performance is high in terms of political rights, public education, human development, health care, quality of life, economic freedom and protection of civil liberties and political rights. The ACT economy has been reforming after the difficulties years that were experienced under the Commonwealth Government job cuts. However, this has seen the increase of the private sector jobs and the economic growth is expected to be trending at 2.5 % for the year 2016 to 2017 and the future (Budget 2016 -2017). The resurrection of the economy has been augmented by the pickup in the labour market and any company wishing to venture in Australia can enjoy the exemplar labour market. The international tourism which provides market for major services were worth more than $ 200 million last year. In monetary terms, Australia is ranked fifth as the country with the most traded dollar currency. Social factors Approximately 82 % of the Australian population speaks English but others languages such as Mnadarin, Itaina and Arabic being spoken too. Educating the citizens is in the hands of the individual territories and states. A major advantage of the social aspects of Australian people is that 99 % adults are Status and power drive the social and lifestyles of the Australians. A majority of the citizens live their lives not based on obligations but options which bring the issues of preferences (Dirkey, 2015). With a high number of people owning their homes and suburbs, it will provide markets for the gardening services. Additionally, the luxurious, power and status lifestyles favour the gardening industry as there will certainly be a need for the gardening services. Technological factors Australia has a highly skilled and experienced professionals who have worked to provide the country with equipment and kind of services that have previously been difficult to attain (Dirkey, 2015). This has offered the country with a competitive advantage in technology access. Cultural Factors Although the country has started experiencing global warming effects, it is still an avenue for growth and investment for a number of business. Demographic data shows that there is slightly higher number of female than the males which lays the foundation for the mateship ideology (Dirkey, 2015). Australia is a country composed of a multi – societal cultural people and they have the right to express their cultural practices and beliefs as well as participate in the national life. Competitor Analysis This competitor analysis restricts itself to the agricultural services market in Australia and will delve into the marketing environment factors and the key players who would determine the commencement and success of Canberra Gardening Company in the Australian market. The importance of this is to accept the role that competitors play in business. While sometimes they can frustrate a business, if analysed well, they become sources of strength and new innovation (Shoham & Albaum, 1995). Canberra Gardening Company will be seeking to enter an industry that has other key players. Even with this, the agricultural sector is a fast growing industry in Australia, and the company will need to have more than astute judgment to ensure that it is able to beat the other competitors in the industry. This company will offer monopolistic competition. This is so because there are other companies which offer similar products and services. Some of the competitors include GrainCorp Limited, AWB Limited, Batlow Fruit Co-operative Limited. GrainCorp Limited has its main offices in 201 Sussex Street (Erbisch & Maredia, 2010). It is a renowned supplier and handler of bulk products and agri-products in Australia. It operates more than 250 agricultural handling sites and offers research, storage, agricultural care and supply chain solutions to the Australians. The company’s vast presence could be a great blow to Canberra Gardening Company. AWB Limited is an agribusiness company with another vast influence in Australia. Its activities include fertiliser, lawn mowing, merchandise, wool and livestock. This could be a hard tussle to deal with for Canberra Gardening Company as it has an international presence with outlets not only in Australia but also in Switzerland, Singapore, Japan, China and India. Batlow Fruit Co-operative Limited has its headquarters in 74 Forest Road in Batlow Australia. It is one of the largest fruit and packing operations in Australia (Farmar-bowers, Millar, & Higgins, 2013). Apart from packing operations, this company also ensures that it has taken care of the trees until fruits are produced. This through offering services such as tree pruning, mowing and such related services. This would pose yet another great competition as it is owned by growers who grow and pack their own fruits estimating to more than one million cartons every year. Customer Analysis The gardening service industry in Australia has performed quite well for the last five years (Anderson, Lloyd, & MacLaren, 2011). The industry has witnessed great demand fundamentals that have underpinned the steady growth in spite of some mixed economic and social climate for the past five years. The main customer base for this company mainly consists of gardening services such as pruning, lawn mowing and tree lopping for those high-income earners who are too busy ever to get time to take care of their own gardens. Agriculture is a major pillar of the Australian economy. It is one of the greatest employers offering more than 350, 000 jobs according to a survey done in 2014. With this information, it is evident that a majority of the country’s population are involved in agriculture in one way or the other. Canberra Gardening Company will target those higher earners who are too busy on other duties so that they do not have enough time to attend to their farms. The company will come in to close that gap offering quality services to their tree lopping, fertilising, lawn mowing, and basic landscaping services. Due to the tightness of their schedules to attend to such practices, Canberra Gardening Company will reap big from such people. With the agricultural sector accounting for a meagre 4% of the Australia’s workforce, the company is expected to reap big as it covers the gap that is left by the high-income earners. SWOT Analysis Strengths • Efficient communication between Canberra Gardening Company staff • Use of modern technology and equipment • Strong brand image • Vigorous, young and well-trained staff members • Paul’s prior experience in the industry which has equipped him with the necessary skills and exposure • Viable communication between Canberra Gardening Company staff Weaknesses • A stronghold distribution from competitors • The services offered by Canberra Gardening Company are new to a majority of Australians • Small business customer target • Small company which may require experienced marketing agents to enter the market Dirkey, M. (2015) stated that the high economic earners account a less demographic population of the Australia. Those who do not earn high wages prefer performing farm chores on their own. This leaves Canberra Gardening Company with a less customer base. Opportunities • Australia’s economy is drastically improving meaning that more and more people can now be categorised as high earners • Canberra Gardening Company’s ability to perform a range of farm activities • Australia’s increasing demand for agricultural products • Agriculture is one of the major employers in Australia Threats • Even unskilled labourers can perform a wide range of agricultural activities • Competition is high with major competitors like AWB Limited diversifying their operations • Other competitors command a large portion of the market • Stiff business policies in Australia such as high taxation could lock new industries from establishing a solid foundation Marketing Strategy Overview A study has stipulated that gardening services industry in Australia has been performing well for the last five years through 2016. The growth of the industry has been witnessed over the years despite the economic changes. There is a large market for the business in Canberra, Australia which consists of the elder who is physically unable to garden their compounds and the high-income earners who have no time for gardening activities. Paul’s gardening business would definitely have a place in Canberra. Marketing objective Paul’s business would face competition because of there other gardening business which is in operation in Canberra. This will necessitate for through marketing of the business for it to make maximum profit. Since the business is very new, a lot of awareness has to be created for the business to be known to the potential customers throughout Canberra and Australia at large. The following is a list of the things which must be done for the purposes of marketing of the business. i. Have a clear and attractive vision and mission statements that will help in convincing the potential customers to consider and perhaps try the new service provider (Shoham & Albaum, 1995). ii. Work on creating awareness so that every person in Canberra is aware of the business and existence. iii. Provision of the communicating channels and contacts should a customer need to enquire about the services. iv. Provision of a customer care personnel who new handle all the issues related to service delivery to the customers and see it that the customers get satisfactory services. Competitors and their prices, the economy, the people awareness Product strategy The businesses will offer a variety of services. These will include landscaping, lawn mowing, tree lopping, plant pruning, fertilising and watering of lawns and also garden refuse removal services. Landscaping is the act of marking of a piece of land appears more like a natural like any other countryside with the intension of achieving its beauty. Lawn mowing is cut grass to one level leaving the compound looking attractive and clean. This is done a machine known as a lawn mower. Tree lopping is to interfere with the tree terminals by cutting them off. The idea behind tree lopping is to reduce the size of the tree. It is the removal of the growth points of the tree or the branches. Plant Pruning is basically trimming of the trees in order to achieve the desired shape. Also, pruning can be done to reduce the size of a plant or remove dead or infected branches. Garden refuse removal entails the collection and disposal of the waste from the gardens in order to keep the gardens clean. The above-listed services will be offered as per the client's instructions. A team of technicians and gardeners will be diploid to the customers’ places to do the work. The customers will be availed with different brands of the products for them to choice according to their test. Pricing Strategy A thorough study of the market has to be done and put into consideration when pricing the services. The business should offer prices that are affordable to the potential customers in the prevailing economic situations in Australia (Singh & Kundu, 2002). The prices must be competitive for the business to be able to win of the customer from the existing businesses because this is a new entry business in an industry where other businesses exist and well established. The business should have a pricing chart whereby the prices per service will be well indicated. Discounts should be given to customers with a lot of work to be done for them as a way of encouraging them and making them loyal to the business. In coming up with the prices, there are the thing that should be considered. These include; the travel costs to be incurred, the bulkiness of the work a clients gives out, the grade of the service required, the after services to be offered such as maintenance and the general cost of service delivery. The competitors pricing must be looked at while coming up with the prices (Power, 2003). The prices must not be higher than those of the competitors because that may easily translate to a loss of customers to a very competitors. Mechanisms should be put into place to make the prices below but at the same time be profitable. These mechanisms may include; lowering the cost of production, offering a wide range of services and lowering the internal expenses. Promotion strategy Promotions are very crucial in selling any given business. The business should consider doing the most appropriate way of promoting the services offered in order to reach the potential customers. The use of billboard with attractive pictures along highways can be useful. This will help the business reach the people who are always travelling and may have no time for other for watching TV and going online. Adverts on the local Televisions should be done with the good elaboration of what the business does. Through TV well demonstration of thing like lawn mowing can be staged (Strauss & Frost, 2001). Social media platforms such as Facebook, Twitter and Instagram should be widely used to reach all categories of customers including the young people who might be in need of the services or who they inform their parents and guardians. Also, some marketing personnel will be sent to the field to meet potential customers face to face. They with carry bronchus and fliers to distribute in the streets. Distribution strategy The organisation will have the main office where the managerial issues are done from. A main distribution premises where all main operations can be carried from. Other centres should be open all over Canberra near the customers and especially where there is a concentration of them. Technicians and experts should be readily availed in these centres so that they attend to the customers when they are required. The location of the business must be statistically near the customers’ premises and places of dwelling. The location must be easily accessible to the customers. Implementation The implementation of this business will follow the procedure and sequence give below. i. ii. The second weeks it will be the processing and coming up the right personnels. These will include the managing team, the marketing officers, the technicians and the gardeners. iii. The second thing to do will be getting the right machines and tools. The prices, efficiency and durability be highly considered. Several suppliers will be consulted. Target Market Segmentation Customer segment In order for the business to be effective, the target customers ought to be made aware. This will be done through various advertisements and promotions. Most of the target customers will be from the areas that are within Canberra and especially the working class. The other customers will be targeted include the gated communities that are very well developed in the areas. In addition, customers from hospitals, schools, and other communal based institutions will also be established. The people who will mostly be targeted include the people of ages between 30 and 65 years. The reason for the selection of this segment is because it was identified that most people who are between these ages are employed and have their homes. It would be very inappropriate to have the market for people who are younger since they will not have established homes. Moreover, it was discovered that most people who are above the ages of 65 years have already retired and wish to do the gardening themselves. Geographical market segment The area of the target is mainly Canberra. However, further developments might necessitate expansion of the target market. This implies that other states will be eventually targeted once the business is a success in this area. The reason Canberra was selected is because it has a huge market potential and the networks are not as developed as other places within the country. Also, there is a huge number of working place in the area. Distribution Channel segment Distribution is a very important aspect of any business. However, our business will not entail a lot of distribution chains since it is service based. However, it will include a local distribution of services through available road transport methods that are available in the area. In addition, customers will be reached through a walk to the areas that are target places. Evaluation According to the analysis conducted, it can be deduced that the gardening business that ought to be established by Paul offers a great opportunity. In order to realise success, Paul has set up various measures and considerations that are very important in order to ensure that the set- up is successful. Some of the very important undertakings that the business owner will carry out include the promotion strategy. Promotions are very important for any business especially the new businesses. This ensures that the entry to the market is a very fundamental aspect (Styles, 1998). Through the use of promotions as the business gets to the market, the business owner will be able to attract new markets and establish competition from the already existing markets. In addition, the business has identified some effective methods of marketing. Marketing strategies are very important for any business and should, therefore, be taken with a lot of consideration. In fact, Paul has offered numerous choices just to ensure that all measures are taken effectively in the market. As noted in the analysis, Canberra has well established gardening business which has been doing absolutely well in the last few years. In order for the business to do well, Paul has to adapt an effective entry strategy in the market. However, a platform has been created which shows a lot of potential for success. Conclusion and Recommendations From the analysis of the business, it can be concluded that Paul will have a successful business. Some of the most important undertakings for a successful business especially if it is new is to have a working entry strategy in the market. This is a very important aspect which has been taken into consideration. However, some more issues might arise regarding the costing and keeping of the already existing customers. Although it was identified that some of the methods that will be used include the lower costing and bonuses to the long-term customers, Paul ought to be considerate not to overdo anything. In order to have an effective business, I would recommend several measures to be taken by Paul. Some of them are to be aware of the mowing council hours. It should be noted that in some places, the mowing hours start as early as 7 am in the morning for weekdays while other places the mowing hours will start as late as 8 am. In addition, some places mowing could start at 8 am on weekends while in others it could start at 10 am. Understanding these legal requirements is very important for the business success. Another very important aspect that has encompassed every gardener is a failure to effectively maintain the tools of work. It should be noted that every livelihood for a gardener will be determined by this business. Failure to maintain the tools of work in good condition is a very negative step that should not be taken. Moreover, safety considerations will be very important for the success of the business. Customers will be attracted to people who can ensure that they not only maintain safety for themselves but also for the one around them. Considering that a loan mower is a powerful machine, a lot of care ought to be taken. However, the business well set to succeed and with a few recommendations in place it is bound to succeed. References Anderson, K., Lloyd, P., & MacLaren, D. (2011). Distortions To Agricultural Incentives In Australia Since World War II. Washington: The World Bank. Australian food statistics 2012-2013 http://www.agriculture.gov.au/SiteCollectionDocuments/ag-food/publications/food stats/australian-food- statistics-2012- 13.pdf.  Budget 2016 -2017, ACT Treasury http://apps.treasury.act.gov.au/__data/assets/pdf_file/0004/870880/Chapter-2 Fiscal-Strategy.pdf. Page31-40Power, P. (2003). Starting your own gardening business: An insider guide to setting up as a professional gardener. Oxford: How To Books. Dirkey, M. (2015). Agricultural sector. London: Down Valley Road Economic Outlook, ACT Budget 2016 –2017, http://apps.treasury.act.gov.au/budget/budget-2016- 2017/budget-in-brief/economic- outlook.  Erbisch, F. H., & Maredia, K. M. (2010). Intellectual property rights in agricultural biotechnology. Wallingford: Cambridge University Press. Farmar-bowers, Q., Millar, J., & Higgins, V. (2013). Food security in Australia : challenges and prospects for the future. New York: Springer Verlag. Shoham, A., & Albaum, G.S. (1995). Reducing the impacts of barriers to exporting: a anagerial perspective. Journal of International Marketing, 3(4), 85-105. Singh, N., & Kundu, S. (2002). Explaining the growth of E-Commerce corporations (ECCs): an extension and application of the eclectic paradigm. Journal of International Business Studies, 33(4), 679-697. Strauss, J., & Frost, A. (2001). E-Marketing. New Jersey: Prentice-Hall. Styles, C. (1998). Export performance measures in Australia and the United Kingdom. Journal of International Marketing, 6(3), 12-36. Read More