Promoting Darebin City to Outsiders - Essay Example

www.academia-research.com Sumanta Sanyal d: Report: Promoting Darebin to Outsiders Executive Summary This report has been prepared by a team of two. Its prime motive is to promote the inner suburban area of Melbourne, Australia, the City of Darebin to outsiders in such a manner that the city benefits in a socio-economic sense. The report method of preparing for this marketing objective is to first select a management analytical tool that can allow it to analyse prominent variables in the external and internal environment of Darebin. The tool selected is SWOT analysis and the rationale for this selection is presented in the introduction. Thereafter environmental scanning of the immediate surrounds of Darebin, the greater metropolitan area of Melbourne is conducted. Individual and comparative studies of these two regions reveal some prominent trends that are later used in the SWOT analysis. The principal analysis reveals that property in most of Darebin's suburbs is historically undervalued and this continues to attract residents and others from neighbouring regions to come and settle in the city. This trend is not strong enough to enable vigorous socio-economic development of the city, which is found to be disadvantaged in comparison to many other municipal council areas of Australia. So the report prepares a marketing strategy whereby this unique advantage Darebin has is utilised. The principal component of the strategy is to induce existing and lure outside investors, builders, architects, designers, property agents and others related to the trade to develop property in Darebin so that built-up space at attractive prices can be sold to outsiders. This venture is expected to generate employment as well as other local economic activities that can, together, benefit Darebin's disadvantaged population and uplift them to a higher status. Finally, a two-day event, appropriately titled 'Destination Darebin' has been proposed to initiate this venture. Details are available in the conclusion. Also, finally, the report states that it has been thoroughly responsible in seeking solutions that will benefit the existing population within Darebin instead of pushing them off somewhere else while replacing them with affluent outsiders. Contents 1. Introduction 4 1.1 SWOT Analysis: Significance 4-6 2. The Macro-Environment 6 2.1 Darebin Trends 7-9 2.2 Special Note 9 3. SWOT Analysis 9-11 4. Key Marketing Objectives 11 5. Conclusion 12 References 13 Bibliography 14 Word Count: 2892 (Including headings) 1. Introduction The City of Darebin may be taken to be a large municipality located in the northern suburbs of Melbourne in the state of Victoria, Australia. It is a local government area and comprises of 53 square kilometers (Darebin, Wikipedia, 2006). The city had a population of approximately 131,000 people (2002 Census) but the population is increasing. The local council website notes that though the area has been governed since the earliest times when white settlers set up their homes in the greater Melbourne area the modern City of Darebin was formed in June, 1994. It was formed by the amalgamation of the Cities of Preston, Northcote and small parts of the Cities of Coburg, Heidelberg and Diamond Valley (Darebin City Council, History Section, 2006). Since it is germane to the purpose of the report the exact geographical location of the municipality is being given. As mentioned earlier the city lies to the immediate north of Melbourne within the inner and middle metropolitan areas. It is bounded in the south by Heidelberg Road, to the north by Mahoneys Road, in the east by Darebin Creek and in the west by Merri Creek. It is comprised of seven principal suburbs of Kingsbury, Bundoora, Reservoir, Preston, Thornbury, Northcote and Fairfield and parts of the suburbs of Macleod and Alphington (Darebin Facts No. 6, 2002). These are the very basis facts on Darebin and more precise and detailed information will be incorporated in the report later. The purpose of the report is to conduct a market analysis of the products and services available indigenously in the city so that the analysis throws up pointers on what products and services can be most competitively marketed to outsiders so that the city residents benefit not only economically but also socially as a result of interaction with outsiders. The analytical tool selected in this case is specifically SWOT analysis. Why SWOT analysis is chosen as the main strategy is being posited in the next section. Later, a two-day event shall be pinpointed to test market the products and services that find favour with the analysis. SWOT Analysis: Significance SWOT (Strengths - Weaknesses - Opportunities - Threats) analysis, also known as TOWS (Threats - Opportunities - Weaknesses - Strengths) analysis, is a powerful technique for assessing an organisation's, or a particular locality's, as in this case, strengths and weaknesses in a particular business sector, in this case the entire business environment of the locality is being analysed, as well as the opportunities it can avail of and the threats it is susceptible to. The strengths and weaknesses are the organisation's internal factors while the opportunities and threats are its external ones. (Manktelow, James, 2006) This business framework is particularly powerful because it helps an organisation spot its strengths that it can then utilise to discover opportunities it can avail of. Also, by understanding the weaknesses it is liable to an organisation can eliminate threats that would otherwise catch it unawares. The technique, used to study both an organisation and its competitors, can allow the organisation to craft a strategy by which it can compete successfully against its competitors. To develop the necessary points for analysis the following questions should be asked to assess the strengths of the organisation. What advantages does it have What does it do better than others What unique or lowest-cost resources does it have access to What do outsiders see as its strengths These questions must be answered with an internal perspective and they should be thought of in relation to competitors, customers and other outsiders the organisation deals with regularly. Only then can the real strengths come out and assist in the analysis. The next set of questions can be utilised to assess the weaknesses of the organisation. What can be improved within What must be avoided What do outsiders perceive as weaknesses within the organisation These also must be answered with an internal perspective but they should be done so with outsiders like customers, competitors and others in mind. Questions that may reveal opportunities are as follows. Where are the good opportunities facing it What are the latest trends it is aware of Factors that can promote good opportunities may be such as: changes in markets or technologies both broad and narrow, changes in relevant government policy, changes in social patterns, lifestyle changes, population profile changes, etc., and local events. Opportunities can also be revealed by querying if existing strengths can promote them or if eliminating existing weaknesses can open up new ones. Questions that may reveal threats are as follows. What are the obstacles What are the competitors doing Are the required specifications of the marketed product or service changing Is changing technology threatening the organisation's position Could any of the existing weaknesses seriously threaten the present business The SWOT matrix is a powerful business analysis tool and it can also be applied to competitors, as it will be in this instance.(Adapted from: Manktelow, James, 2006) 2. The Macro-Environment In particular context of Darebin City its macro-environment would be its immediate surrounds - the larger Melbourne metropolitan area. This is the particular target area that is being focused on by the report to elicit information on prospects for marketing commodities inherent to Darebin. It is also the target area from where competitors may make hostile forays against Darebin's bid to increase benefits flowing from such marketing of its commodities. This process of gathering information for organisational of the report team is known as environmental scanning. The specific definition as per Chun Wei Choo, 2001, is 'Environmental scanning is the acquisition and use of information about events, trends and relationships in an organisation's external environment, the knowledge of which would assist management in planning the organisation's future course of action'. In this case the organisation is the City of Darebin and the management in this case is probably the City Council that may take heed of this report's findings. The specific needs of the scanning has been settled to be the major trends in recent times in correlated variables like demographics and business sectors both in the external and internal environment. Sources have been restricted to official websites that are the steadiest repositories of information of this type. The degree of dynamics in the trends have been allowed to determine the degree of scanning (Chun Wei Choo, 2001, James L. Morrison, 1992) and in this case it is found that the degree of dynamics is fairly moderate and certain prominent trends have been focused on and emphasised under 'Darebin Trends' as hereafter. Managerial effort is accepted to be proportional to the level of management - the higher the level the more effort at scanning (Chun Wei Choo, 2001, James L. Morrison, 1992). In this case the management is the report team and it is accepted as the top level in the absence of any other management entity within the scope of this report. Thus, the scanning has been fairly comprehensive. In the process of scanning the report has unearthed some singular trends, both positive and negative to the marketing prospects, from individual and comparative studies of Darebin and the rest of the Melbourne metropolitan area. These are bulleted hereafter. 2.1 Darebin Trends: 1. Darebin has five major business sectors contained within its precincts. These are 'Property and Business Services' (2426 employed), 'Construction' (2228 employed), 'Retail Trade' (1603 employed), 'Manufacturing' (1138 employed) and 'Transport and Storage' (1120 employed). All employment figures are of 2001 (City of Darebin Business Structure, 2001). The report notes that the two highest employers are 'Property and Business Services' and 'Construction'. This has special significance in the subsequent parts of the report. Though figures are relatively old other sections of the Darebin City Council website indicate that the employment trends have not changed significantly in current times. 2. The 'City of Darebin Business Structure, 2001' document also notes that, particularly, that is significant minimal presence of the business sector 'Finance and Insurance Services' in Darebin. This should be increased and made more proportional to the greater Melbourne area. 3. Residential property sales figures (dollar estimates) derived from Darebin City Council 'Darebin Facts' document of 3rd quarter, 2003, indicate that many suburbs of Darebin, particularly Bandoora, Preston and Reservoir, have lower average property prices than the average for the rest of the Melbourne metropolitan area. The 'Facts' document also notes that all Darebin suburbs except Preston had higher rates of increase in median house prices compared to other Melbourne suburbs. The highest rates of turnover in property across all Melbourne suburbs were Reservoir (1st) and Northcote (4th), both Darebin suburbs. 4. It is also notable from the Darebin City Council Business Structure document that 'Transport and Storage' and 'Construction', both major businesses in the city, have a very large proportion of business entities with turnovers under $50,000 signifying small businesses. The same is true for 'Property and Business Services'. 5. Reservoir and Preston have the largest representation of business entities in the city followed by Northcote (City of Darebin Business Structure, 2001). The document also states that as of 2003 it was observed that this representation increased across all suburbs of the city though Reservoir and Preston continued to prosper most. 6. It is also notable from the document that both 'Construction' and 'Property and Business Services' have the highest representation in Preston and Reservoir. 7. The 8th 'Darebin Facts' document brought out by the City Council in the 3rd quarter, 2003, states that Darebin is home to a diverse community within which a third have been born in a non-English speaking country and of whom 40% still prefer to communicate at home in a language other than English. 8. The same document also states that the population in Darebin tends to age more than that in the neighbouring metropolitan Melbourne. This has some significance to the purpose of the report. 9. The 8th 'Darebin Facts' document also states that the current trend in employment is away from traditional manufacturing jobs to more professional and managerial ones. This signifies increasing diversity of employment and stems from increased educational choices and other positive socio-economical factors. 10. Despite the above fact that employment range has increased Darebin remains an area where unemployment is higher than in the neighbouring metropolitan Melbourne areas (8th Darebin Facts, 2003). 11. Another significant fact is that the proportion of Darebin residents earning less than $15,000 per year is five times the rest of Melbourne average. The proportion of Darebin households earning more than $100,000 per year is only 6.3%, less than half that of the Melbourne statistics (Darebin City Council, Community and Diversity Profile, 2006) The macro-environmental scanning has revealed these eleven trends conducted by the report team and it will subsequently constitute the main base of the SWOT analysis by being differentiated to aid in the constitution of strengths, weaknesses, threats and opportunities. 2.2 Special Note: The statistics contained within the City of Darebin Business Structure, 2001, document, from which some of the eleven trends have been derived, have themselves been derived from data collected from the 'Australian Business Number' registration offices and they are based on area postcode. The document notes that this may cause some approximation as some area postcodes are shared with other Melbourne metropolitan areas but also assures that any discrepancies that may arise therefrom will be slight (City of Darebin Business Structure, 2001). 3. SWOT Analysis The Darebin Situation: Strengths: Darebin is an inner suburban area of Melbourne and thus is attractive to many for residential purposes as it is near the commercial hub of the whole metropolitan area. Residential property prices have been historically undervalued in Darebin, as is observable from 'Trend 2' with some suburbs of the city having lower average prices than other metropolitan areas of Melbourne. Darebin already has active and well-entrenched 'Construction' and 'Property and Business Services' sectors though average business sizes are small. There is already an existing trend (Trend 2) in residents moving into Darebin from elsewhere. Both residential and non-residential activity in Darebin (Darebin City Council, '8th Darebin Facts, 2003) was comparatively less than in the greater metropolitan area. This may be taken as strength as it provides an opening for new activity undertaken with pioneering effort. The Darebin City Council is highly interested in increasing socio-economic opportunities for its residents and, as such, is willing to assist any effort in that direction. There is a significant trend in increase in employment in professional and managerial categories (Trend 9). Weaknesses: The size of businesses in the 'Construction' and 'Property and Business Services' sectors in Darebin is small on an average (Trend 4). There is significant absence of the 'Finance and Insurance Services' sector in Darebin posing problems for acquisition of funds for any new business venture (Trend 2). The average age of Darebin residents is increasing at a greater rate than other Melbourne metropolitan areas (Trend 8). Opportunities: The Darebin 'Construction' sector, in conjunction with the 'Property and Business Services' sector, can start a renewed and increased activity in converting undervalued properties into higher-priced built-up space for sale to outsiders for both residential and non-residential purposes. Darebin has a higher unemployment rate than the rest of Melbourne and this excess idle labour can be diverted into the proposed new activity, generating fruitful employment. Darebin is ranked 27th in 2001 within the 32 metropolitan councils in Australia in the socio-economic disadvantages index (Darebin City Council, 8th Darebin Facts, 2003). Induction of new residents to the area with higher socio-economic advantages will increase local business activity, such as the retail trade, and thus increase income and socio-economic levels of existing residents. Increase in economic activity as proposed in itself should increase socio-economic levels in the immediate neighbourhood. Threats: One major threat is that property prices may be driven up by the proposed activity to levels that may make them unattractive to outsiders in comparison to property in the rest of Melbourne. Already the suburbs of Alphington, Northcote and Thornbury have median residential prices that are higher than the Melbourne average. 4. Key Marketing Objectives The key marketing objectives are presented here in a slightly different form as the usual objectives can already be derived from the opportunities presented by the analysis. These are as follows. Position Darebin as a highly attractive location to acquire built-up space within. Ensure that the 'Construction' and 'Property and Business Services' sectors have high competence in diverse fields such as financial liquidity and integrity and architectural design and that the entire business structure is ecologically safe and conscious, in step with present trends. This competence should then be positioned before prospective customers so that they are attracted by the entire business proposition. Ensure that building activity is a concerted effort so that attractive mixed residential and commercial complexes lure customers to their amenities. 5. Conclusion The SWOT analysis reveals that it is indeed practical to take efforts in converting undervalued Darebin property into higher valued built-up space for sale to outsiders for both residential and non-residential purposes. The report notes at this stage that upon review of relevant literature there is no significant detrimental report of Darebin as a destination for residential and non-residential purposes. This is in lieu of civic and other amenities and is backed up by reports that many relatively high-income singles and couples have recently acquired property in the city. The city council activity promotes and assists urban renewal and this assists in overall transition of a disadvantaged suburb to an advantaged one. The report also notes that it has been consistent in its effort to uplift existing disadvantaged residents in city instead of simply uprooting them to induct more advantaged persons. This will serve both social and economic purposes. The report now touches upon a two-day event it has prepared for marketing built-up space in Darebin. The event is titled 'Destination Darebin' and is proposed to be a two-day meet at any spacious and attractive locale within the city itself. A choice selection of invitees comprising of financiers, architects, builders, designers and others related to the trade as well as a set of prospective customers will be notified of the event. One purpose of the event is to initiate contact between Darebin's existing 'Construction' and 'Property and Business Services' firms, most of which are small, with outside financiers so that they can form alliances whereby the proposed venture can take off. Financiers, builders and property agents and others from outside will also be encouraged to set up business in Darebin proper. Talented architects and designers will also be given a call so that they too can come and size up the proposition and probably get involved. It is too early for customers but, still, a select set of notable persons who are likely to settle in the city will be invited to promote the venture. The primary purpose of the event is to make those who can contribute to its future aware of its existence. The report ends on the note that it has been a satisfactory effort on the part of the team and it is hoped that its findings will be of use in the future of a more successful City of Darebin. References Chun Wei Choo, Environmental scanning as information seeking and organizational learning, Information Research, Vol. 7 No. 1, October, 2001. Extracted on 31st September, 2006, from: http://informationr.net/ir/7-1/paper112.html City of Darebin, Wikipedia Free Encyclopaedia, 2006. Extracted on 31st September, 2006, from: http://en.wikipedia.org/wiki/City_of_Darebin Darebin City Council, Darebin Facts, Issue 6, 2nd Half, 2002. Extracted on 31st September, 2006, from: http://www.darebin.vic.gov.au/page/Page.aspPage_Id=241&h=0 Darebin City Council, Darebin Facts, Issue 8, 3rd Quarter, 2003. Extracted on 31st September, 2006, from: http://www.darebin.vic.gov.au/page/Page.aspPage_Id=241&h=0 Darebin City Council, Darebin Statistical Fact Sheet - 1, Business Structure 2000-2001. Extracted on 31st September, 2006, from: http://www.darebin.vic.gov.au/page/Download.aspname=statistical_fact_sheet_business_structure.pdf&size=214025&link=../Files/statistical_fact_sheet_business_structure.pdf Darebin City Council, History Section, 2006. Extracted on 31st September, 2006, from: http://www.darebin.vic.gov.au/Page/Page.aspPage_Id=40&h=0 Manktelow, James, 2006, SWOT Analysis. Extracted on 1st October, 2006, from: https://www.mindtools.com/cgi-bin/sgx2/shop.cgipage=orderform_sections_tmc.htm Morrison, J. L. (1992). Environmental scanning. In M. A. Whitely, J. D. Porter, and R. H. Fenske (Eds.), A primer for new institutional researchers (pp. 86-99). Tallahassee, Florida: The Association for Institutional Research. Bibliography Correia, Zita, Wilson, T. D., Factors influencing environmental scanning in the organizational context, Information Research, Vol. 7 No. 1, October, 2001. Extracted on 31st September, 2006, from: http://informationr.net/ir/7-1/paper121.html Danca, Anthony C., Undated, SWOT Analysis. Extracted on 1st October, 2006, from: http://www.work911.com/planningmaster/SWOT_Analysis/ SWOT Analysis for Participatory Research in the Pacific, 2000. Extracted on 1st October, 2006, from: http://www.unescap.org/mced2000/pacific/background/swot.htm Read More