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JB Hifi Marketing Analysis Essay
In this business competitive world, organisations are striving towards achieving their respective goals and objectives to flourish successfully in the business (Kirca et al.2005, p.25). New strategies are developed with the changing market conditions and consumer needs. Organisation are utilising their every available resources to ensure that they are able to attract new consumer and retain the old consumers. With the emergence of technology and contemporary business process, organisations are creating challenges in the market to gain dominance. This report discusses the marketing process of JB Hi-Fi and analyses their marketing strategies and compares their competitors through valid discussions and using appropriate models to analyse their effectiveness and strategies towards building a sustainable business operation.
Marketing background of the company
As every organisation designs their strategies towards attracting consumers, it is essential for them to understand the demands of the market and develop appropriate strategies to inform the consumers of the availability of the products and services offered by the company. Speaking of JB Hi-Fi, the organisation is considered to be effective in terms of marketing and promotions. The organisation has gained huge popularity in a small timeframe and therefore is considered to be one of the most influential companies in the market to provide consumer products and services at a lower price. The organisation is equipped with highly professional candidates, resources and capital to fund their business operation. Since the organisation has been in the market for approximately 43 years, the organisation has understood the pulse of consumers and has accordingly made appropriate pricing strategies that can benefit both the organisation and consumers. The organisation uses some of the most traditional form of advertisement to support the promotional activities of the business and therefore is said to be always in the limelight. The organisation has a good consumer base and good marketing prospects when launching new products and services. Harvey Norman is considered to be the biggest competitor of JB Hi-Fi. Competition between the two companies are said to be immense and both the organisation uses highly sophisticated marketing strategies to attract their consumers.
However, with the advent of technology, JB Hi-Fi remains under the influence of traditional media publicity and uses advertisement forms such as billboard advertisement, transit advertisement, print advertisement and broadcast mediums to inform their public about the new varieties of products and services that they cater. The business organisation has been in the industry for a long time and believes in the efficiency of traditional media style to promote them in the market.
Marketing Mix is considered to be one of the most effective ways to determine the efficiency of an organisation in the domestic and international market (Manchanda et al. 2004, p.467). Organisations often use this tool to understand their business process in comparison with their competitor (Oliver, 2000). Marketing mix includes several stages to determine the effectiveness of the business process in the market and develop strategies according to the need (Leonidou et al. 2013, p. 170). JB Hi-Fi has been in the business which gives them the leverage to attract more consumers due to their unique pricing strategies and offers for their loyal consumers. By integrating the 4ps of marketing mix, the marketing position of JB Hi-Fi is,
Even if the organisation markets the products and their services in a traditional form, the organisation is equipped with new technological products like CD player, Blu Ray disc players, home entertainments, and other electronic products that attracts the new generation of today.
The organisation sells the products and the services at a lower cost to ensure that they are able to attract more consumers. Being of the popular stores in Australia, the organisation considers using the psychological pricing methods to attract the consumers to their stores. In order to retain them, the organisation offers loyalty card benefits for cash back and reward points so that they can redeem the points later.
Australia and New Zealand are the two countries that the organisation operates in. The organisation believes that expanding to different markets gives them the leverage to increase their market efficiency. New Zeeland is considered to be one of the most promising markets for the company as the market competition is less when it comes to product pricing. This gives them the leverage of attracting the new market and improves their business operation.
Promotion of a company in a new market requires funding that enables them to gain market visibility (Srinivasan and Hanssens, 2009, p.294). The organisation heavily depends on the traditional media management to promote them. It is considered to be the most effective form of business promotions by them. The organisation mostly being located at central places of the market uses the newspaper advertising strategy as most of the residents acquire newspaper for information consumption. In addition to this, the organisation also uses the transit advertisement to promote their products and services to gain maximum exposure in the market.
Despite so many advantages, the organisation has recently seen a pitfall in the business competition as new organisations are emerging in the market and implementing new business strategy to snatch away the consumers. In order to retain the consumers, the organisation has to develop new strategies and business methods to increase business efficiency. Nowadays organisation is using conventional business activities to attract the consumers. With the advent of technology, JB Hi-Fi has entered the e-commerce industry to attract more consumers. Since the preferences of the consumers have changed with time, organisation has to adjust themselves with the changes in business process. Consumers prefer to use the online services offered by the organisations. Therefore in order to sustain in the market, JB Hi-Fi has entered the e-commerce industry. However, online services are not effective enough since the consumers are now addicted to the technology that Cellular devices presently offer. Developing application software of the company and launching the same in the market stores such as Play Stores, Apple store and other to name a few. Since other organisations have already entered into this segment of business, it is high time for JB Hi-Fi to make the much required changes to increase their business market.
The Competitive Analysis allows a company to make an in-depth assessment of the strengths of the competitor and their weakness (Rosenbloom, 2012). This study represents the needed adjunct for conducting an investigation about the present industry circumstances. The industry provides information regarding the appropriate sources and includes the possible organisational strategies and actions with the objectives increasing the organisational revenue and profit. Competitor analysis provides evaluation about JB Hi-Fi with another organisation, they are in competition with.
The primary objectives which are essential for a competitor analysis includes the following points:
- A perceptive about how the competition is getting rated by the potential customers (Armstrong et al. 2012)
- An identification about the strengths and weakness of the competitors (Olson et al.2005, p.60)
- A mechanism of development about the effective strategies within the target market
Competitor Analysis of JB Hi-Fi:
Sales Last Year
CD, DVDs, Blu-ray discs, video games, large home appliances of $80m
Large Home appliances of $95m
Last year $2.8m after four previous years losses of almost about $7.9
Similar to its prevailing years it made a total profit of $5m
Mainly focussed to the continent
Besides Australia, they make export to Croatia, Kosovo, Montenegro and Russian Federation
Several industries are there where identifying the competitors is relatively easy (Czinkota et al.2013). Such can better be tagged as concentrated markets where only some competitors exist. But in home entertainment sector, JB Hi-Fi is in toughest competition with a lot of companies of which Harvey and Norman, Good Guys, Devid Jones and Target Australia are just to name a few. Thus footing in such a market with soo many competitors, JB Hi-Fi functions perfect by implementing the old ‘80-20’ rule. This implies 80% of the entire market revenues get accounted by 20% of their competition. And it is this 20% which the company needs to examine closely (Kotler et al. 2015).
Preparing and Conducting of Competitive Analysis
It includes the following steps:
Conducting a research: To be informed about the current competition status, a professional research will give the company every detail. As the business is undergoing growth and expansion, the organization is required to consider complementing their own research efforts with another research that has been conducted by its competitor firm (Fleisher and Bensoussan 2015). For example, below are mentioned some questions that can enhance the idea of supplementing their own research efficiency:
- Who is the competitor?
- What are the grounds for which the company can be the competitor
- What type of services or products they are offering
- What is their period of existence in the market
Collecting competitive information: For making an initiation to the industry and competitive analysis, secondary sources are regarded as one of the recommended starting point (Hollensen, 2015). Marketing reports are composed with company information and henceforth it provides every knowledge about the organization and its functioning aspects. The other sources include:
- Advertising: This can be taken as one of the primary information source which indicates the strength of their product as well as promotional activities of their competitor.
- Sales Brochures: It indicates the current benefits the competitor company in provisioning as well as the techniques which they are following for positioning their products in the respective market.
- Magazine articles and newspaper: This provides an insight about the competitor about how they are going to implement their improvisation plan for putting their products in the highest category
- Databases and reference books
- Annual Reports of the rival company
Analysis: With annual report, an organization finds the annual financial information about the other company. An annual report includes revenues, sales volume and the total share in market.
Determination of the competitive position of the company: Being an organization owner, the person might have met the owner of the rival company in association meetings, trade shows or in social gatherings. Therefore maintaining a social relationship and having simple conversations can actually allow the organization in taking into account the foresight with future vision about their strategies. If a cordial relationship gets maintained then even information regarding product launching and the places where they have brought down improvisations can be identified (Kotler et al. 2015).
Thus summarizing the entire scenario it can be said that scheduling a quarterly analysis on their competitive trend, an organization can implement a lot of innovation in their products or services and achieve their organisational objectives (Hollensen, 2015).
App: Operating in an era where technology dominates, companies who have not yet implemented the idea of mobile application are far behind in standing to the competitive market. In fact surveys finds that the last few years have witnessed record number of people rushing to develop app for showcasing their company products and services in Android and iOS. According to published figures, Google is dominating the mobile market with almost 900 millions of people as their potential users, 600 million of purchased iOS devices purchased from Apple and 12million of Windows phones being sold by Microsoft.
24x7 supports: Being a home retail shop, it is absolute necessary to get tech support during the time of need. Thus companies who lack this kind of assistance will not be considered as a smart choice by the users. For JB Hi-Fi they are still in need to implement this facility, as it will be enhancing their brand popularity as well as enable their potential customers to consider their choice as ideal.
Social Media Advertisements: With the daily up gradation of internet facility, people are more glued with the web world. Being informed about some particular product is either through mouth advertisement or via social media. Nowadays, technology has largely affected the daily life of humankind and henceforth when JB Hi-Fi is yet to design their social media advertisement, they are lagging back in a great while to commercialize their product showcasing. Online product selling in today’s market stands as the pivotal element which will be enabling more customers to be introduced with the brand popularity. Henceforth the organization poses to be in a threatening position if thought in its long run.
Product Variations: JB Hi-Fi although have earned a name in the home retail industry but in competition with its other competitors like Harvey
Norman, The Good Guys as well as Myer, David Jones and Target Australia its is missing its track. With their manifold options in terms of benefitting the clients these companies are actually proving to be the toughest competitors for JB Hi-Fi. Improvising their business strategies as well as taking a look to the client needs, the company is needed to be tactical enough to implement all the modus operandi in terms of making their customers content about what they have opted for.
Product Innovation: Starting from its inception, the company is serving their customer with the same old options of CD, DVDs, Blu-ray discs, video games, and large home appliances. To excel and stand in this toughest competition, JB Hi-Fi is needed to implement innovation as their competitors are continuously updating their products. Company intends to get satisfied customers and that remained their only mission to strive. But with getting more customers they missed the vital part of putting innovation to their selling and product implementation strategy.
Putting themselves in a pedestal where they are the largest Home Entertainment Retailer, the company is yet to improvise their range and brand popularity. Although a known name among the mass with its cracking deals, the above mentioned recommendations can give them a position from which reaching to the zenith of success will be just a matter of minimum time.
Offering the largest options in home entertainment the company has become one of the most known names among the mob. Serving for years, it is into a process of increasing its brand popularity. But certain hindrances have made the company in facing the biggest threat from its competitors. Thus the report has sketched some techniques with improvisation plan using which the company can again become the only choice for its potential customers. With instance of genuine services, the company also need to implement some other plans that can actually enhance their position as being the best choice.
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