In this report I will analyse Country Road Clothing Company (CR) and the CR customer. Specifically, I will be analysing the marketing environment and Country Road’s approach to this environment and how CR market to their customers. I will look it why the marketing in Australia is so successful but how this same success was not translated in overseas markets. I will also discuss the different macro and micro environmental influences to this failure in the U.S. markets and make recommendations on how CR might have learnt from previous marketing mistakes and show how they are striving for success in the future.
1.02. Critical evaluation of the chapter:
Kotler describes the Marketing environment as “ The actors and forces outside marketing that affect marketing management’s ability to develop and maintain successful transactions with its target customers” (Kotler 2010)
Figure 1. ( www.marketingteacher.com, 2010)
Before embarking on new ventures, a company should analyse the marketing environment to gain a more solid understanding of any opportunities or possible threats that may influence the success of the proposed venture. “The organisation’s marketing environment can be divided into the microenvironment and the macro environment”. (Kotler, 2010). By analysing the microenvironments and macro environments before undertaking major changes in business, companies will have a better understanding of what their customer is looking for, and how the customer behaves within the marketplace. It can also determine trends in buying behaviour and possibly minimise losses due to potential competitor threats or may even reveal cultural occurrences that may make the venture impractical. Companies that choose to enter into new markets without this research can suffer major financial losses. This is not only a crucial factor when starting out but it will also assist in maintaining success and ensuring longevity in the global market place.
2.01. The microenvironment:
This involves aspects of marketing that have a direct relationship to the market, for example, its customers and the marketing channel it operates within, suppliers and all other external factors that have an immediate contact or effect on the success of the business. When talking about marketing in this microenvironment we consider building our client base, advertising, performing market research and increasing our customer profile.
“Micro tends to suggest small, but this can be misleading. In this context, micro describes the relationship between firms and the driving forces that control this relationship. It is a more local relationship, and the firm may exercise a degree of influence” (www.marketingteacher.com, 2010).
2.02. The macroenvironment:
This area consists of those elements that are not directly related but can still have an effect on the business, for example culture, economy, technology and political forces. These elements are sometimes referred to by the acronym PEST (Political, Economic, Social and Technological). These factors can have a very strong influence in the success of a business, yet they can be very hard to predict. For example a new government can slow down consumer spending until confidence is re-established in the marketplace. Some macroenvironment elements can be one or more PEST factors. A prime example of this is the terrorist attacks on September 11. The effects of this were so major they affected business in countless ways and will surely continue to do so in future. “The terrorist attacks of September 11 therefore hit the USA – but not only the USA – at a moment of economic instability, and have led to considerable intensification of the anxiety felt among economic agents on all of the industrialised countries” (Weinert, 2002)
2.03. Country Road Clothing Company:
In 1974, Jane Parker and Steve Bennett saw a gap in the Australian fashion marketplace and seized the opportunity to produce...