A Research Report on Marketing Strategies of the Business Essay Example

For example, free trade policies among multiple countries can provide business opportunities for exporting and importing products. Legal regulations such as taxation and consumer protection also have an impact on how the business operates. If Victorians Basement plans to expand to other states, they will need to adjust their strategies to accommodate differences in taxation and local legislation.

Economic factors also play a significant role for Victorians Basement. The recovery of the global economy following the financial crisis has increased buying power, allowing more people to invest in luxury home wares and kitchenware. Additionally, high levels of global unemployment have resulted in lower labor costs.Victorians Basement benefits from employing people at lower rates and cheap imports due to inexpensive production labor in other countries. Sociocultural factors such as the rise of DIY and social media as a marketing tool have influenced consumer preferences and benefited businesses. Technological advancements allow retailers to reach global markets through online platforms, and RIFF technologies provide self-service options for customers. However, the store mentioned in the text has yet to implement anti-theft devices. Micro-environmental analysis using Porter's Five Forces framework reveals medium buyer power, competition, low switch costs between brands, but weakened customer bargaining power due to the lack of a buyer association. The text also discusses supplier power being low with multiple suppliers and low switching costs, medium threats from new entrants due to no barriers but a mature market with stable consumption growth.Victorians Basement faces a low threat from substitutes due to limited competition in the area. However, competitors like Woolworth Group and Coles Group offer similar products with less variety. The company also faces high threats from rivalry

in the global market, as there are numerous large and specialized retailers. This is further intensified by the lack of product differentiation among different brands. Understanding its customers is crucial for Victorians Basement to develop an effective marketing strategy. The company has analyzed its customer base and segmented it based on demographic, cryptographic, and behavioral patterns. By dividing the market into smaller segments, Victorians Basement aims to meet the specific needs of different customer groups. One category of market segmentation for the company is demographic segmentation, targeting millions of international visitors and daily commuters in Sydney who come for shopping, education, business, and entertainment purposes

The City of Sydney has a significant working population comprising professionals (over a third) and managers (17%). This indicates their capacity to afford luxury home ware and kitchenware brands that attract them. Additionally, City residents have a median age of 32 years which is three years below Sydney's average age (City of Sydney, 2013).Approximately 50% of the City's population falls within the age range of 18 to 34, making up around two-thirds of the overall population growth over the last five years. This data is reflected in Figure 1, which illustrates the potential market exposure for businesses in Sydney CBD. Victorians Basement specifically targets the largest consumer group, consisting of young adults aged 20-34, who make up 45% of their customer base. Figure 1 also highlights the demographic segmentation approach used by businesses in Sydney CBD, wherein consumers are grouped based on personality, values, social class, and lifestyle. Victorians Basement caters to a sophisticated multicultural consumer base attracted to Sydney for shopping, relaxation, and entertainment.

In terms of income levels within

the City, residents earn a median weekly wage of $717 compared to $518 elsewhere in Sydney. The City of Sydney (2013) reports that one-quarter of residents aged 15 or older earn more than $1300 per week while another quarter receive less than $250 per week. As a result, Victorians Basement can attract customers seeking high social status and a stylish daily life as well as those desiring such standards but facing financial constraints.Victorians Basement caters to both types of customers by offering salt and pepper sets at different price points. For a basic set, customers can purchase it for $4, while a designer set costs $39.95 (Victorians Basement, 2013). Located in the Queen Victoria Building (Q.V.), this popular shop holds traditional significance. The Q.V. itself hosts various entertainment events to attract tourists and city visitors, further enhancing its image. Many visitors who come to the Q.V. for special occasions often purchase souvenirs as part of their experience. They believe that visiting a historic building warrants buying something to commemorate their visit, leading them to shop at Victorians Basement since it is the most historic store in the Q.V.

The target market for Victorians Basement is primarily individuals aged between 20-34 years old based on previous analyses of various market segments. Cryptographic and behavioral patterns of this age group suggest that they are predominantly visitors or relatively affluent residents living near the city area. In subsequent discussions, we will explore their behavior and purchasing patterns in more depth.

To effectively identify individuals with sufficient purchasing power, authority, and willingness to make purchases, categorizing the target segment is crucial.Victorians Basement should develop marketing mix strategies based on the fact

that women typically make 90% of home improvement decisions and are willing to pay for high quality products with various options. Therefore, it can be assumed that the majority of their target consumers are female. Additionally, women from other age ranges (35+) also contribute to this gender segment. Women are more likely than men to have concerns about the broader impacts of consumption and take action based on those concerns, which justifies Victorians Basement's focus on quality and brand awareness.

According to a survey conducted by UBS, workers in Sydney have the second highest "domestic purchasing power" out of 73 cities, with only Zurich ranking higher. This means that residents of Sydney can afford to buy a large quantity of goods and services with their average wage. This surprising ranking is attributed to Sydney's high wages and moderate costs. Compulsive buying is common among adults aged 20-34 within this target segment.

The Australian Bureau of Statistics reports that the total balance on credit and charge cards has increased by an average of 17% over the past five years since 2002. In December 2007, Australia's credit card bill reached a record $42.98 billion.
In today's society, the ownership of status products is perceived as a means to demonstrate social power and prestige, rather than depending on personal, occupational, or family reputation (Papua & Woo, 2008). Retailers need to consider these behavioral patterns and offer pricing strategies and credit card payment options in order to maintain loyalty from this specific target group consisting of over 20,000 individuals.

Victorians Basement has undergone a remarkable transformation within the Australian retail industry. Despite its initial struggles in 1986, the store now thrives due to

an influx of tourists visiting the city. It experiences peak business during the summer months when Sydney becomes a popular tourist destination. However, Victorians Basement also caters to local customers through its diverse range of products. Regardless of the season, they ensure their presence is always felt.

During off-peak times, various advertising tactics such as '80% off,' 'One Day Offers,' 'Super Saturdays,' 'Secret Sales,' 'Half-Yearly Stock Take,' and 'Mid-Season sales' are employed by Victorians Basement. These promotions along with their catalogue promotions help maintain sales and uphold their brand reputation. Moving forward, the team at Victorians Basement aims to reduce their reliance on price-based promotions as these have gradually eroded their brand positioning over time. They aim to regain their status as a leading retail brand.A recent survey has shown that people have a desire for a souvenir shop in an ideal location. In light of this, Victorians Basement has expanded their presence by opening five suburban stores near residential areas. They have also embraced online retailing to cater to a growing audience. As their popularity increases, Victorians Basement is adjusting its business strategy to attract more customers and solidify its position as a leading retailer.

Victorians Basement is well-known for offering a wide range of products from popular brands, appealing to sophisticated consumers. This variety of brands ensures excellent product quality automatically. Their collection includes renowned names such as Westwood, Royal Dalton, Viler and Boca, Waterfowl, Dan Samuels, and many others.

Branding plays an important role in creating expectations for business services or products and encouraging businesses to meet or exceed those expectations through better offerings. The presentation of products is crucial in marketing success, and Victorians

Basement should focus on improving this aspect. While their Q.V. store may resemble a basement bargain store due to limited sales area, their other stores showcase better product presentation.Victorians Basement has a simple and similar return policy compared to other big retail giants. Their lower prices in comparison to competitors have been the most significant factor in maintaining customer loyalty. They offer a wide range of discounts, from approximately 15% to 75%, which has attracted many customers. However, they need to be cautious about offering extremely low prices as it can potentially harm their brand value.

In terms of promoting their business, Victorians Basement is highly proficient. They conduct sales promotions during special events such as charisma and New Year, both in the city and nearby residential areas. Additionally, they hold big sale events at each store opening to introduce their new business and inform customers about it. Their flagship store in Queen Victoria Building is strategically located with exposure to over 40,000 foot traffic per day.

Since 2002, Victorians Basement has expanded its reach to densely populated residential areas with above-average incomes and more spacious houses like Auburn, Earthmen, Castle Hill, and Alexandria. Homeowners with disposable income are likely to be attracted if they are conveniently located.

Currently, the store only uses traditional POS terminals that are not interconnected with other stores or their supply chain management.The lack of customer service staff at Victorians Basement poses challenges for customers seeking assistance with purchasing decisions. This is especially problematic given that many of their customers are tourists who may need guidance on specific purchases. For example, they may require information regarding liquids that exceed the allowed limit in

hand luggage, as well as understanding eligibility for tax refunds at the airport for single purchases over $300. Implementing anti-theft devices within the store is another area where Victorians Basement can improve to protect merchandise from vandalism. While security guards are present, not having these devices may make customers uncomfortable, particularly those who are unfamiliar with the bag-check culture in Australia. In addition, incorporating IT into their supply chain management will enable Victorians Basement to provide better information on product availability to customers, which would be beneficial since they have expanded to multiple branches. However, despite these limitations and challenges faced by in-store shoppers, Victorians Basement does offer online selling and bridal registry options that effectively cater to customers who are unable or unwilling to visit the physical store. This also extends their consumer base and appeals to gift-shoppers, particularly through the use of bridal registry facilities.

The Q.V. store at Victorians Basement is concerned about store decoration. Due to limited space, the floor and shelves are crowded with products, making it difficult for customers to walk, view products, or maneuver with strollers or wheelchairs. This lack of accessibility often drives customers to bigger brands like David Jones and Meyer, even though Victorians Basement offers lower prices. In addition, if customers accidentally damage a product, they are typically held responsible for the cost which leads to customer dissatisfaction.

It was discovered during our research that Victorians Basement has 4 larger locations besides the Q.V. store, despite many of us having shopped there multiple times before. This indicates that Victorians Basement does not advertise their other locations effectively. Promoting these locations within the Q.V. store could

be a beneficial strategy as some customers visit the Q.V. location because they cannot find similar items at a closer place for the same price.

In conclusion, Victorians Basement has successfully increased their brand equity and become a significant competitor in the homeware/kitchenware market without spending much on advertising, technology, or employee engagement. They have the marketing advantage of a prime location and association with the historic Queen Victoria Building.

Nevertheless, in order to maintain their brand image and meet the demands of today's globalized market, retailers must prioritize genealogy and customer service. This will help enhance the overall shopping experience for customers.