Retail Marketing on White Goods

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Executive Summary
This report critically examines the retail marketing activities and plans of whitegoods and household appliances, in identifying and evaluating the review of academic literature focusing the investigation on the target markets, location, store design, positioning, brands, target markets, major competitors and merchandise. The market in Australia is characterised by a high level of competitiveness and a relatively large number of competitors within the retail area (monopolistic competition). However, the suppliers of the vast majority of products sold are a relatively small number of overseas–based manufacturers offering globally accepted brands and systems (IBIS World, 2010). Increasing sales of whitegoods and household appliances especially in a substantial way, will maximise opportunities to secure better buying volumes of product and renegotiate existing contracts with manufacturers.

Table of contents

1. Introduction
2. Literature review
3. Comparison
4. Recommendation & justification
5. Conclusion
6. References
Appendix 1
Appendix 2

1. Introduction
Clive Peters is a high profile retailer of electrical appliances which has operated in Melbourne under its present ownership since 1993 and in Brisbane since 2001. The company operates under two brands, trading as Clive Peters in Victoria, Queensland, and Tasmania, and trading as Rick Hart in Western Australia and consists of 32 stores. The company is committed to innovation and to improving the shopping experience by delivering more to its customers. Its success can be attributed to exceptional staff dedicated to excellence in customer service, its very impressive range of electrical appliances, an ever-expanding services proposition and growing brand recognition around Australia. (Clive Peters: Company Overview 2011)

Clive peters is known for selling high quality whitegoods, it tends to attract the high income segmentation of people due to its characteristics and brands. Some consumers prefer to shop at Clive peters as they see they are gaining maximum benefit from purchasing high quality products.

Kmart is one of Australia largest discount retailers, with over 180 stores, including five garden supercentres throughout metropolitan and regional Australia and New Zealand. Kmart also runs some 280 Kmart Tyre and Auto Service centres across Australia Products sold at Kmart belong to the cheaper brand segments. The company aims to target people with average and low incomes. Kmart sells few whitegoods, however they are all valued at reasonable prices. House hold appliances are sold in large variates. (Kmart: Coles Group 2011)

2. Literature Review
Development of retail strategy gives the retailer a unique opportunity to assess the roles and purposes of the firm. The strategy development process helps the retailer determine what is important to the business both in current and projected contexts, and what resources including leadership and intangibles are either available or required to achieve the desired outcomes. Retailer brand should express the total benefits on offer to the customer; it should have a unique identity based on an underlying concept and brand personality Miller (2008, p. 31).

The infrastructure of the store is all based on brand category. The atmosphere of Kmart is generally tidiness not to mention all shelves neatly stacked. Other concepts of the stores design are promotional and clearance of white good brands on the end of each isle. This is to attract attention of the consumer and alert them on cost. Customers appear to recognize the uniqueness among the in-store experience that retailers are working hard to achieve. This delivery of value then seems to be an effective source of differentiation (Jason M. Carpenter 2005). Kmart has located its stores in the locations it has chosen to generate traffic and contribute to the convenience of shopping. The majority of all stores are located in...
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