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An Australian Luxury Fashion Accessories Company - Essay Example

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Summary
The essay explores the luxury Australian fashion. During the contemporary period, it can be noted that to a greater extent, the success of an organisation mainly depends on the strategy used such as the “marketing mix” which is described as a set of marketing tools…
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An Australian Luxury Fashion Accessories Company

Download file to see previous pages... The paper "An Australian Luxury Fashion Accessories Company" talks about Australian Fashion Accessories Company. The report starts by outlining the historical background of the company which will be followed by an analysis of the company’s micro and macro environments in a bit to establish the degree to which these have an impact on the operations of the organisation. The main body of the report will focus on a critical analysis of the marketing strategy used particularly the current marketing mix in order to evaluate the effectiveness of this strategy. The last part of the report will look at the recommendations section where suggestions are given in order to improve the marketing offering of the chosen product or brand. “OrotonGroup Limited is a retailer, wholesaler and brand manager operating in Australia and the principal activities of the Company include retailing and wholesaling of leather goods, fashion apparel and related accessories under the OROTON and POLO RALPH LAUREN labels, and licensing of the OROTON brand name.” Details about the historical background of the company can be viewed from its official website. This organisation is wholly owned subsidiary that includes OrotonGroup (Australia) Pty Limited, Polo Ralph Lauren Australia Pty Limited, OrotonGroup (New Zealand) Pty Limited, Macbray Pty Ltd, Marcs Wholesale Pty Ltd and Oroton Share Plan Company Pty Limited. The company operates approximately 60 retail stores and is listed on the Australian stock exchange. Critical analysis of Oroton’s Micro Environment According to Kotler & Armstrong (2004), the micro environment is comprised of actors close to the company such as suppliers, marketing intermediaries as well competitors while the macro environment consists of demographic, economic, technological as well as cultural factors. The first section of this analysis of the microenvironment is mainly going to look at the company’s competitive environment, its financials as well as the structure of the business. According to Ibisworld (2010), the major competitors in the luxury brands industry include Luis Vuitton Australia Pty Ltd and Proud Jewellers Pty Ltd. Competition in the market is always a threat to the other actors operating in the industry given that they will be competing for market share. Oroton does not operate in a vacuum since it can be seen that the luxury brands industry is a bit different from other conventional industries. The company’s financials show an upward trend since 2007 according to Au Stocks (2011). This can be attributed to the management strategy that was adopted after the company had witnessed a decline in the revenue generated owing to decline in business. This is a major strength for the company. The company embarked on a drive to cut costs through laying some of the workers while at the same time offering affordable luxury brands. Another important factor about Oroton’s micro environment is that its structure is a typical brick and mortar model. This model mainly relies on linking the organisation directly to the customers through personal interaction but it can be noted that the organisation has also adopted e-commerce in its marketing strategy. However, a critical analysis of the factors characterising the micro economic environment of this organisation shows that the company is better positioned to operate viably in the market given that these factors do not pose serious challenges to it. The other advantage of this ...Download file to see next pagesRead More
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