Critical Analysis On Tyrepower Marketing Strategy
Assessment 2 requires students to work in groups of three on a selected company from the predetermined list below in order to prepare a comprehensive marketing audit for the company.
The aim of this assessment is to conduct a systematic, comprehensive and objective analysis
of the marketing activities undertaken by the chosen company. In addition, you are also
required to provide at least three (3) recommendations for the company. The marketing audit
report should be no more than 3000 words in length excluding the executive summary, table
of contents, tables, charts/graphs, the reference list and appendices. The written report is worth
30%. Groups are required to present only the comprehensive executive summary during tutorial
classes in weeks 10 and 11.
Your assessment should show an application of relevant marketing concepts, theories, and analytic tools learnt in the unit. The mark for this assessment will depend primarily on presenting appropriate and supporting evidence and on the ability to critically write and present the marketing audit report.
Groups are to select one company from the list below.
Lorna Jane https://www.lornajane.com.au/
In this research study, the Tyrepower marketing strategy has been focused upon. Nevertheless, in this relation, it can be highlighted that the company is under excruciating pressure for the competitive landscape of operations in Australia. There is market lucrativeness accompanied by additional pressure in the market from the competitors like MRF, Goodyear and Bridgestone and Yokohama also. Hence, it can be described here that Tyrepower marketing strategy has to decide upon a considerable mix of product and prices in order to stay ahead of the competition. The segmentation strategy that is being followed by the organisation in this case is to be appreciated by the small-scale businesses as well as the retail car owners also. The positioning strategy as a Tyrepower marketing strategy that has been followed by the company is to follow the strategy of opening majority of the retail outlets by their own-self. The moderate pricing strategy has been followed by the company. Other than the secondary services and equipment that is being sold by the company, tyre manufacturing and sales are the primary criteria. The basic recommendation for the company is to open stores in big company outlets.
This research study is based upon analysis of the Tyrepower marketing strategy which is one of the most potential tyre manufacturing commercials transporting as well as retailing Organisation situated in Australia. In this report, the researcher will try to make a detailed analysis of the company, external environment analysis with the help of the pestle analysis model and a comparative analysis involving the position of the company in respect to the major Rivals in the competitive Australian market. Nevertheless, the researcher will also make a detailed consumer analysis of the brand and highlight the main target customers sections which are responsible for the primary share of profit of the Organisation.
In addition, the researcher will commence the report with a detailed marketing mix audit based on the product, price, and distribution as well as for motions of the respective TM products of the company in the Australian market. The national conclusion will be provided in relation to the findings of the report at the end. The business conditions of the automobile accessories market in Australia are very intense, with a large number of rivals in the very lucrative market. There is significant price competitiveness among the brands, which is why the external market conditions should be carefully analysed for the brand.
Customer analysis: The biggest customer group that is being followed by the company is the set of small business that conducts servicing activities. Nevertheless, in this case of Tyrepower marketing strategy, it can also be highlighted that small clubbed orders from the intercity customers are also accepted by the company.
Company analysis: The Tyre power group has been developed in Australia bioaccumulation of 10 independent retailers of automobile tyre in the year 1977 (Gupta et al., 2019). The Organisation was established with the primary business objective of offering customers with the value propositions like flexibility, saving as well as a value even in in the independent dealer focused network of the Australian automobile accessories market. Company has now become the largest independent suppliers, manufacturers and retailers of automobile tyres in the entire Australia Asia region.
The company implements a cooperative business model by means of which the members can retain the control over their own business profession and get the opportunity of building on the brand as a very much household brand without complexities of the cost for franchise arrangement (Ibisworld.com, 2020). This means that the communication channels with the customers are very small by means of the consumers can directly your products from the brand. The higher management of the company is driven by the power-based culture, which helps in influencing the future direction of the group in a clear way. the company believes that centralisation of power and unique direction of employees is required for developing a culture of absolute success for the future.
There are many automobile tyre distributors in Australia which prefer Tyrepower marketing strategy as the leading suppliers for their brand. These are some of the biggest names in the industry and include the likes of kamho, a good year, Dunlop, Cooper, speedy wheels, century batteries and so on (Ibisworld.com, 2020). The owner and operators of the company are uniquely positioned in order to deliver business value to customers in a large number of consumer markets of the country and provide them with significant-quality products which will be suitable for the best value of the Organisation. In Australia, the company has their operations straight across almost all the major States as well as stated is and their senior management is currently based in Queensland, New South Wales, Victoria as well as in Western Australia also. Nevertheless, this business structure of the Organisation helps the company in meeting the consumer needs in quick as well as professional manner. The Organisation has stores which receive Full support from their primary supply Network and as an impact of this Organisation is gradually going to become the largest independent retailer of automobile tyres in the associated country New Zealand also (Prnewswire.com, 2020). The company has more than 10000 employees, and hence they can be granted as a big company operating under the form of a sole proprietorship. Majority of the business introductions and transactions of the company takes place by means of the website Tyrepower.com.au.
Analysing the political factors impacting the automobile tyre manufacturing industry, it can be highlighted that the inefficient proportion of Red tape implemented by the Organisation on the automotive industry is the reason why sales of indigenous automotive accessories brands like tyre power is on the decline. Enough at the external market outside Australia live New Zealand in and some areas of Asia also. In Australia, IP protection is also difficult, which is by the entrepreneurship in the country is difficult. Is trade barrier protecting the Australian automotive industry is also responsible for restriction of the business in the Australian belt only? Nevertheless, in this relation, can also be highlighted that the level of hostilities is very controlled and the political environment is stable which is my domestic sales has increased in the last few years (Tyrepower.herokuapp.com, 2020).
Economic Factors currently impacting the market is a Monopoly as well as a slightly oligopolistic condition in some of the internal markets of Australia. However, in this regard, it can also be highlighted that the GDP growth of Australia is quite attractive which is why domestic product sales have increased in the last years because of increase in the production rate of the company also. Nevertheless, it can also be highlighted that the sole proprietorship business in Australia are interested in the borrow and investment business policies which is why the market lucrativeness has increased. Exchange rate of the automotive industry in Australia has been declining, which is why the profitability of the industry is all so declining to some extent (Marketingmag.com.au, 2020).
The salary and business class male population are primarily categorised as the best buyers of the brand. Nevertheless, the big retail purchases of the company include retail automobile servicing outlets and stores. Hence, it can be highlighted that that business class customers are the biggest customer segments of the company. Because of the class division in the automotive market, it has been highlighted that the society is located in terms of selection of car brands in the market. As an impact, the connection of the tired power with a lower economic range of customers has also declined to some extent (Tyrepower,com.au, 2020). However, the sales of the Organisation have been prolific to some extent.
New technological interventions like rapid website development for contacting with the distributors as well as the regional buyers have helped Tyrepower marketing strategy to increase their sales in recent years. The increase in traffic volume of the Organisation over the internet and their own website is the primary reason because of which this sales corporation has flourished in the last few years. In the end, it can be highlighted that Technology costs of the company also increased as the Organisation has to increase their rate of operations involved in the market (Illawarratyrepower.com.au, 2020). In addition, the highest salary of the Organisation because of the increase in the minimum wage rate of the country is the reason why the profit range has decreased gradually.
What are the necessary environmental factors for Tyrepower marketing strategy?
Increase in manufacturing of the company has increased the number of factory outlets it is creating a negative impact on the carbon output of the Organisation. This is the reason why, the government has introduced the policy of asking the companies with major factory outlets with high carbon output to segregate their factories all over the country so that no pollution prone zone is created. In this connection, it can be highlighted that the recent issues of pollution file as well as carbon output quota violation has caused in the negative brand population of the Organisation (Canningtontyrepower.com.au, 2020).
As highlighted in the above section, intellectual property rights are very flexible in the country, which is why it is difficult to get a large number of products patented because of the absence of information. The discrimination law of the government in the country are not properly implemented, which is why there is a fair amount of gender discrimination in the Organisation which has been recently reported. Issues regarding health as well as safety requirements of the workers employed in the industry in Australia also (Canningtontyrepower.com.au, 2020). Therefore, provision of the health as well as safety requirements of the members of the Organisation has added responsibility and added financial liability for the higher management of the Organisation also.
The Tyre manufacturing, distribution and sales market of Australia is very lucrative, and it is expected that this industry will reach a valuation of 2.8 billion US dollars by the end of the last quarter of the financial year 2020-21. There is very much expected that Tyrepower marketing strategy will make phenomenal progress in this industry lucrative as well as an indicator of significant competition due to the modest and steady growth of automobile sales in the last five years. As highlighter above, online sales of the automobile tyres have increased over the online portals increasing sent George tyres, Bob Jane and so on (Supercars.com, 2020). This Organisation has been facilitating the sales of international automobile accessories manufacturing brands operating in Australia live Bridgestone, Yokohama, Goodyear and so on. In addition, it can be highlighted that the Global tyre manufacturing companies has been dominating in Australia, and it is anticipated that the sales of the indigenous brand are expected to reduce in the upcoming years. All the major International brands have communication with the supply line of the low-cost Chinese tyre products which is why they will be able to win over the price competitiveness with the indigenous automobile tyre manufacturing brands in Australia like tyrepower.
One of the major strength of the Tyrepower marketing strategy is there a strong brand portfolio which is why the company has been able to enter into all individual markets of automobile manufacturer is in Australia New Zealand as well as outside Australia. In this relation, can we identify that the significant market performance has help the company to maintain proper economic cycle in spite of the competitive landscape involving factors like increase in minimum wage and so on (Tyrepower.com.au, 2020). The respect full track record of the company is also on the account of the high skilled workforce available in Australia as well as Messi's brand popularity of the automobile tyre manufacturing brands in the country. In addition, it can also be highlighted that the Organisation has been able to achieve good return over capital expenditure in the country.
One of the major weakness of the Tyrepower marketing strategy is the poor asset ratio, as well as liquid asset ratio, which highlights at the company, has been investing more cash in comparison to the gain. The product gas can be mediated by the company also with the help of diversification of tyre manufacturing materials required. The inventory is are the primary source of strength of the Organisation, nevertheless, the diversification of sales trait of the Organisation implies that the sales proportion has varied over time.
The lower inflation rate of the country creates a major opportunity to increase the scope of operations of the Organisation in the market. In addition, it can be highlighted that economic crisis with an increase of consumer spending and very minimal reception in the country has been compensating for the slow growth rate of the industry in spite of the other adverbs factors operating in the market (Tyrepower.com.au, 2020).
No regular supply of innovative products has been one of the massive threats for the company in addition to the rising cause of raw materials available within Australia. Nevertheless, in this relation, it can also be highlighted that the liability law of the country is the primary reason why the Organisation has been penalised on several grounds.
Tows Matrix analysis:-
Internal strength and external opportunities
The internal strength of the Organisation is there creative technology and coverage of a large expanse of the industry and geographical domain. In this relation, it can be easily identified that the external market competition is highly lucrative as well as competitive with a large number of foreign brands like Bridgestone trying to occupy the market also.
Internal strength and external threat
The internal strength of the Organisation is an increase in production as well as sales in the Australian market as well as the New Zealand market. Nevertheless, the low-cost proposition of foreign brands gradually dominating the Australian market is a potential external threat in this regard (Tyrepower.com.au, 2020).
Weakness and opportunities
Tyrepower marketing strategy has the lucrative opportunity of increasing its market share in the foreign markets of Asia also. Focus on the Australian market is preventing them from achieving this.
Internal weakness and external threat
The internal weakness of the organisations is minimal. Nevertheless, in the face of external competition as well as low price proposition, the company might lose a measure of the market in future also.
Discussion of segmentation targeting and positioning:-
The Organisation has been primary trying to segment the customer market on the basis of the business type of customers. Has written the company has not been on emphasising on selling the majority of its products to the retail car owners. In this relation, it can be observed that less than 20% of the potential customers of the company are individual automobile owners in Australia and almost 80% of the customers of the company are the individual small businesses like car servicing companies, automobile tyre changing brands situated in the local areas of Australia. In the illustration, it can also be highlighted that in order to cash on these business opportunities all around Australia, it can be identified that the company has been spreading the business around the country.
As a part of primary targeting the small business Agencies, the sole proprietors who are opening car manufacturing and servicing business in Australia on a small scale. So far as the individual car owners in Australia are concerned, the budget car, as well as the medium-priced car owners, are primarily targeted by the brand. There has been segregation in the customer specification between the foreign reputed automobile tyre manufacturing brands of 8 in Australia and potential indigenous brands like Tyrepower marketing strategy operating in Australia (Superpages.com.au, 2020).
The company has depended on an individual product which is automobile tyre for flourishing in the market of Australia. In this relation, it can also be highlighted that the other accessory products for the automobile are developed by the brand has not been popularised. This is the reason why the company is really focusing on the market of automobile tyres and trying to diversify their market by setting up small business clogging in the interior regions of all individuals states in Australia.
Marketing mix audit:-
The potential business of manufacturing and sales of the tyre with primary brands in Australia like Kumho, a good year, Vitoria, Cooper tires, Maxxis, Dunlop and so on, has been the supreme point of business for Organisation. The company is going to follow the premium branding strategy.
The company has been operating on moderate price proposition which is why it can be highlighted that the price to the position is slightly lower in comparison to the foreign brands operating in the Australian market like Bridgestone. Nevertheless, it can be highlighted that the use of raw materials in the automobile tyre manufacturing market procured from the Chinese domain is decreasing the product prices for the companies.
The Tyrepower marketing strategy has not dependent on external distributors rather than only a few. Tyrepower has set up their own distribution and retail units and own logistics unit. This helps the company in cost management as well as reducing the end price of the customers.
As a part of the promotional strategy of the Organisation, the Tyrepower marketing strategy has worked with Bruni Dunn in order to develop our impeccable communication strategy with the customers. The major initiative in this regard includes identification of the primary customer market and measurement of the positioning in the market relative to the competitive forces in the market. The main promotional channel of the company is supposed to be social media as well as website promotions. This reason why, the company compensated the sales of all associated partners at heavy discount offer a limited period offer which was termed as Australians biggest independent stocktake sale powered by Tyrepower marketing strategy (Ibisworld.com, 2020).
One of the primary strategies that can be recommended to Tyrepower marketing strategy is that instead of bringing about campaigns for the reduction of prices of their respective products it is recommended that the Organisation should reduce the overall prices of their products to a great extent so that the future damage from massive price competitiveness can be reduced.
Development of brand loyalty in Australia by keeping up with other premium brands, other than Goodyear, is also highly recommended in this regard. Racing car business profile is also required where the personal connection with the local area distributed as well as potential retailers also need to be established. Internal communication with the retailers on a personal skill is a benefit that is only available to the brand. Hence it is expected that these vital market force have to be capitalised on in future also.
Development of promotional campaigns like teaming up with formula one brand is going to be profitable for the company also. It will give the company an edge in the international market.
In conclusion, it can be highlighted that the Tyrepower marketing strategy has to consider branding at a different label in addition to the occupancy of the local market on a large scale. The transformer in connection with tired power it can also be highlighted that the domestic market of Australia is still lucrative, however their chances of gradual market saturation in future also. In This relation, it can easily be regarded that the better prepositions of the foreign brands like raw materials, reduced overall cost and so on has to be reduced so that the competitiveness scale can be enhanced.
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