Marketing Fundamentals Marketing Macro Models

Question: Describe about the Marketing Fundamentals for Marketing Macro Models. Answer: Introduction This report has been highlighted the concept of marketing fundamentals. In this context, Australian gym wear manufacturing company has been considered. This study has discussed the marketing macro models as well as the opportunities and the threats of the mentioned companies have been described. In order to identify the involvement level, it is necessary to understand the consumer audit's performance. Hence, this study has analysed the consumer decision making procedure. In addition, to understand the study, the positioning map is playing an important role. Therefore, in this report, the performance of Australian gym wear manufacturing company such as Reebok has been taken. On the other hand, in order to understand the performance of this company, the performance of other two gym wear manufacturing companies such as Pacific brands and Rip curl has been mentioned. Situation analysis Industry (Company) Reebok international Ltd. is familiar for the athletic and gym wear manufacturing company. In the year of 2005, Reebok has planned to opening up of new manufacturing organisation in Australia. With the increasing of time, the business of this company has been growing. By the year of 2010-2011, this company has been selling approximately 125000 gym wear jerseys. Reebok has been generating as the supplementary of Adidas (Baines, Fill and Page 2013). Size From the income statement of this mentioned company, it can be observed that total sales has been increasing over the time. Revenue of this company has also been increased whereas net income has been decreased from the year of 2013 to 2015. In addition, the amount of total current assets obtained by the company has been decreasing with the rise of time. The amount of current asset was 59.12 while the amount was 56.19 at the end of 2015 (Brunswick, 2014). Growth In order to discuss the growth of Reebok, it can be observed that the percentage of revenue has been significantly increased from 8.74% in 2013 to 9.81% in 2015. On the contrary, the percentage of net operating income has been decreased from 9.39% to 4.12% from 2013 to 2015 (Newton et al. 2013). In this essence, the percentage of net income obtained by this definite company has also been decreased from 11.23% to 4.97%. Industry trends According to Cannon and Yaprak (2014), it can be observed that the demand for the gym wear equipments has been increasing in Australia day by day. In this purpose, it can be stated that most of the people are conscious about their health and want to go to gym. Therefore, the purchase of gym apparel has been rising. Hence, it can conclude that the trend of this industry has been developing over time (Chan, Kwong and Hu 2012). Competition Major competitors Two competitors of Reebok in Australia are such as Pacific brands and Rip Curl. Pacific brands was originated in Melbourne, Australia. It specialised in the production of Athletic boots for Men (Chan, Kwong and Hu 2012). The materials they used is rubber for the manufacturing of rubber boots. On the other hand, Rip curl is also known as the Australian sports shoes manufacturer organisation. These shoes are also used as the gym accessories. Pacific brands: Strengths Weakness Environment soothing items Greater amount of burden of debt Aimed to the equipments differentiation Poor cost structure Brand name Work incompetence Manufacture different products Poor revenue Rip curl: Strengths Weakness Consider the monetary assistance Unable to estimate the future debt Appreciable profitability as well as revenue Poor tax structure Barriers to the enter in the market Lower rate of productivity Labour cost reduction Small business activity Market shares Figure 1: Market share of Reebok in Australian market (Source: Chen and Bell 2012) From the above figure it can be seen that the market share of Reebok within the industry is highest compared to the other manufacturing companies. Strategic models Pacific brands: Ansoff matrix Market penetration Rubber made of athletic shoes for males Product development Planned to manufacture other gym apparels Market development Planned to open a new branch in China Diversification This specific company focused to move to China with the production of new items (Chon 2013). BCG matrix Cash cows Focus to enhance the inflow of money Stars Aimed to maintain the at least one star in their business Question marks Transfer the predicted star to the profitability statement of the company Dogs Aimed to the production of new items and value the products (Chon 2013). Rip Curl: Ansoff matrix Market penetration Specialisation sports shoes manufacturing Product development Other gym wears Market development Planned to open in New Zealand Diversification Opening of new store in New Zealand with the production of other gym apparels (Chen and Bell 2012). BCG matrix Cash cows Focused to maintain the overall sales volume or the market share Stars Always tried to develop or raise the share of the market Question marks Adopt of new strategies Dogs Manufacture new products (Cross, Belich, and Rudelius 2015) Customer Buyers choice depend upon the individual taste and preferences. In addition, Newton et al. (2013) added that the consumer decision making procedure is necessary to estimate in this scenario. Decision making process High involvement Low involvement Track pant, Shorts for the men etc Explore more different types of Gym shoes The above table depicted that the customers of Reebok are willing to get track pants and shorts. Customer audit In the words of Dowell et al. (2012), customer audit is based upon the review of the consumers. In addition, it can be already observed that Reebok has the specialisation in the production of gym track pant and shorts for male. This company always tried to maintain the quality in their manufactured products. As a result, it can be stated among the total market share in Australia, Reebok obtained the higher market share. Explanation of the audit As it can be observed that the income statement and the operating net income has been decreasing from the past years in the current years. Hong (2012) mentioned that as this company has acquired a greater in the industry, therefore, it can be predicted that there is a possibility of Reebok to overcome this situation. As a result, the company can earn higher profitability in the next years. Climate Political As per the statement of Jones (2012), it can be seen that government of Australia imposes tax and intervene in the business procedure of the manufacturing company. This will hamper the decision making process of the companies. In this occasion, it can suggest that sometimes it is not necessary to allow for export of the produced equipments. It will effectively decrease the total sales of the company. Economic The economic equipments can influence the production of the gym wears as well as the purchasing power of the company. Ko et al. (2012) stated that increase in the purchasing power will effectively raise the spending. Social Based on the taste, preferences and choices of the several customers, it can be mentioned that sales of the manufactured products can be fluctuated. As per the requirement of the consumers such as for the track pants or shorts, production of the company will depend. Technological According to Malhotra (2012), the adaption of technology has a positive impact on the rise of the production as well as the total sales of the gym wear production. In turn, this will enhance the price of the items. Nevertheless, the quality of the product will significantly increase (Cannon and Yaprak 2014). Demographic As per the demographic demand, Reebok aimed to manufacture differentiated products. This will reflect to produce several types of gym wears based on the preference level of the customers (Morritt and Weinstein 2012). Natural In this purpose, it can be stated that different harmful gases, which emit due to the production procedure, may hamper the health condition of the workers. This in turn decreases the overall production of the company. Opportunities and threats Opportunities Threats According to Muhamad, Melewar and Faridah Syed Alwi (2012), the opportunities of Reebok can be discussed that this company acquired a larger share in the market of Australia compared to the other company. Okazaki (2012) criticised that the financial statement and the profitability statement has been decreased with the increase of time. Therefore, the growth rate of this company has been decreased as well. Collaborators Intermediaries In this context, it can be mentioned that in case of the manufacturing process of gym wears, the organisation has different intermediaries and raw materials (Palmer 2012). After the production, Reebok requires to pass through different steps, where the raw materials have perform the necessary steps. This will helpful to transfer the manufactured products to the target consumers. Suppliers The suppliers of the company are assumed as the raw materials providers, distributors etc. Sanchez-Hernandez et al. (2013) opined that they are the wholesalers or the retailers of the organisation. In order to complete the overall steps of the manufacturing or the production, these suppliers used to play an important role. Segmentation Figure 2: Market segmentation (Source: Sharma and Lambert 2013) From the above figure it can be observed there are different process, which is beneficial to divide the greater size of industry into the comparatively smaller segments. Each of the following process is necessary to yield different data for the sake of the target market. Demographic This stage is constructed based on the equipments such as occupation, age, gender, standard of living and the income level. Therefore, Palmer (2012) cited that demographic segmentation is important to identify the demand of the different age groups. In addition, it also can assumed that higher the income level of the buyers, larger will the price of the manufactured items. Geographic This type of segmentation is depend upon the taste and preferences of the different geographical region. This is helpful to determine the requirements of the consumers and the business will successful (Okazaki 2012). Psychographic as per this type of market segmentation, the business is aimed to the lifestyle of the customers. Hence, the willingness of the consumers can be evaluated. Behaviour Morritt and Weinstein (2012) mentioned that according to behavioural segmentation, the knowledge, loyalty of the consumers are important to determine the frequency of the usage of the products. Target markets Depending upon the above four discussed segmentation, the geographic and the demographic segmentation are concluded in this report. Therefore, it is relatively easier to consider the regional and the cultural disparities around Australia. Primary/ secondary target markets In the points of Jones (2012), in order to identify the business performance of Reebok international ltd in Australia, it is necessary to recognise the primary as well as secondary target market. With the help of this, the company identified that there is a higher requirement for the products of Gym tracks and shorts. After the secondary segmentation, it can be seen that with the rise in time, the requirement for the gym apparels have been increased as most of the people are now concerned about their body fitness. Strategic chosen for different segments As per the statement of Hong (2012), market segmentation is beneficial to estimate the disparities and the similarities among the consumers of several regions. This will lead to the company to understand the choices of the buyers. The demographic segmentation can estimate the benefits of the availing of the manufactured items. In this respect, the business to business technique can be adapted. On the other hand, the psychographic segmentation can measure the interest of the consumers for the products. Again, behavioural segment can differentiated the consumers between some groups based on the knowledge or the usage rate. According to Dowell et al. (2012), market segmentation is beneficial to estimate the advantage of the gym wears production. In this connection, it can be said that with the rise of focus on Reebok, the return from the business will be greater. As a result, the competition will also increase. The brand loyalty, market share will effectively increase. Positioning map Figure 3: Positioning map (Source: Jones 2012) The above figure such as the positioning map has been framed based on the business performance of Reebok. Moreover, it is beneficial to identify the competitive advantage of the mentioned company. The above figure shows that Reebok aimed to the several income group consumers and their standard of living. This concludes that Reebok is highly interested to the capacity of the consumers. In this respect, Hong (2012) opined that most of the gym wears manufacturing companies set out their prices in order to achieve higher profitability and can survive within the industry. Hence, Reebok target to fixed affordable prices of the products. Instead of this, Reebok also maintain good quality of products in their items. This will reflect to maintain a long term relationship with their customers. Therefore, the business will be significant. Conclusion The overall report is beneficial to develop the market situation of gym wears manufacturing in Australia. This study has been developed the company size, company growth and financial position of the mentioned company. In this occasion, after the observation, it can be seen that the revenue earned by the company is appreciable whereas the net operating income and the net income has been decreased over time. However, it can be predicted that there is a potential to improve their income statement. On the other hand, with the comparison of other manufacturing companies, the financial statement of Reebok is higher and the market share of this company is at good position among the industry. In addition, this study is beneficial to estimate the market segment. In this purpose, this study has mentioned several steps of this market segmentation. It can be observed that the steps are such as demographical, behavioural, geographical and psychographic segments. In this relation, this study has developed the definite marketing strategy, which has been followed by Reebok international Ltd. Recommendations After the overall analysis, Reebok is at better position compared to the other companies within Australia. As it can be seen that the profitability statement of this company has been falling over time, therefore, the company can follow some different business strategy. This will be helpful to maintain the number one position in the market and grow within the industry significantly. In this respect, the company can appoint some business expertise, who can guide to the organisation to improve. In addition, the manager can develop a waste management framework. On the other hand, to increase the business, it is necessary to invest a higher amount in the business by Reebok ltd. As the workers are a part of this business, therefore, it is required to provide higher salary that they would not like to switch to the other companies. Lastly, it is necessary to perform to the management effectively that they can supervise their worker's performance optimally. As a result, the business will be successful within the similar industry. References Baines, P., Fill, C. and Page, K., 2013. Essentials of marketing. Oxford University Press. Brunswick, G.J., 2014. A chronology of the definition of marketing. Journal of Business Economics Research (Online), 12(2), p.105. Cannon, H.M. and Yaprak, A., 2014. Cosmopolitan-based cross national segmentation in global marketing simulations. Developments in Business Simulation and Experiential Learning, 28. Chan, K.Y., Kwong, C.K. and Hu, B.Q., 2012. 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