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Wesfarmers- Marketing Plan

Executive Summary

Wesfarmers Company is one of the famous companies located in Perth. The following report consists of developing a marketing plan for the company in terms of identifying issues as well as developing strategies. Further, the marketing mix variables have been identified in terms of 4Ps.  Global marketing strategy is one of the leading and best strategies that Wesfarmers Company using because the company operates in different countries. 

Contents

1 Introduction 

2 Develop a marketing plan 

2.1 Identify the objectives and issues 

2.2 Budget and controls 

3 Marketing mix variables 

3.1 Define a clear value proposition 

3.2 Evaluate the business situation 

3.3 Product 

3.4 Price 

3.5 Place 

3.6 Promotion 

4 Conclusion 

5 References 

Introduction

Wesfarmers is one of the leading companies in Perth (Martinus & Sigler, 2016). The company sells products such as coal mining, fertilizers, industrial, chemical and safety products. The company has an industrial division with business in the energy, chemical, energy fertilizer, and chemical products. It has the largest employers and has a shareholder base of approximately 490,000. The following report consists of the marketing plan of the Wesfarmers Company in terms of marketing strategies, value proposition strategy, as well as marketing mix strategies. This assessment is required to suggest an organization to develop a winning marketing plan. 

Develop a marketing plan 

Identify the objectives and issues 

The primary objective of the Wesfarmers Company is to deliver products and satisfy the consumer needs. The primary objective of the organisation is to deliver the satisfactory returns to the shareholders through financial discipline and exceptional management.  The key focus of the company is to ensure the expansion of the business and develop a strong management. Besides these, the company also has a key objective is to act in all dealing ethically.

The Wesfarmers Company faced various problems and issues recently that affect the business and growth of the company. One of the biggest issues that company is facing is limited scope in international markets. The company currently operates in various countries but cannot expand its business in Turkey market due to result in stiff competition. It has limited scope in the international market due to lack of marketing strategies. 

Develop marketing strategies

Based on the above issue, it is recommended that the company can expand its business in Turkey market through marketing strategies. The company can cope with this problem through a global marketing strategy. Mainly, the global marketing strategy is the act and process of focusing a product on the needs of potential buyers. The company can expand its business in the Turkish market with the help of ‘Global marketing strategy’. The key matter is before implementing a marketing strategy; it is important to identify the needs and demands of the buyers. For example, if Wesfarmers company is going to capture the international market, it is important to focuses on the needs of the buyers in that country. It is recommended that in order to address this issue, the company can develop a global marketing strategy through the following steps:

The very first step of implementation of global marketing strategy is understanding market (Kotler, Burton, Deans, Brown, & Armstrong, 2015). The company can understand the nature of the market through the behavior of the customers as well as the whole market. Every region has various behaviors and norms as deals with marketing scope. Therefore, the company, first of all, focuses on understanding the needs and demands of the customers. 

The second step in the implementation of global marketing strategy is to create a marketing plan (McDONALD, 2016). The company then will have to create a marketing plan consistent with local efforts. After making a marketing plan, the company will decide a communication plan. What communication channel will be used to capture the market and what media can be used will be discussed in the communication plan. The company will capture the Turkish market through advertisement and social media awareness. The company will market its products through social media marketing strategies and online pages. Airbnb and Coca-Cola are famous and best examples of global marketing strategies. 

Budget and controls 

The target market of the company will be the Turkish market. Mainly, when Wesfarmers Company establishes, it was co-operative to provide the services and merchandise to Western Australian farmers. The positioning strategy will help to explain how to capture customers and how to advertise the product in such a way people get the benefit. A clear defined positioning strategy that a company can adopt is a differentiation marketing strategy. The more effective differentiation strategy company will use, the more it will create the positioning of the product (Banerjee, 2017). As the name indicates, differentiation is a process of differentiating itself from others. While companies are involved in making a differentiation strategy, they try to differentiate themselves from others.

The company will make positioning of the products or services through positioning strategies. It is recommended that the company should market its product or services through constant advertisement and marketing. The successful way to make positioning of the product is displayed through continuous advertisement on television (De Mooij, 2018). It aims to expand its business outside such countries in which it currently operates. Being a recognized leader in the retail market, the experts have always been scrutinizing the organization in regard to the event of making critical decisions.

The company will facilitate farmers of the country and create awareness among buyers. The differentiation strategy will attempt to position the value of the product itself in the mind of customers (Porter & Kramer, 2019). For example, if a company is going to make market its products and services through social media, TV ads, marketing through billboards, and other useful communication channels, it would have to come at front to take challenges. For the positioning of the product, the company can do continuous marketing on these channels. At the same time, the company can make the positioning of the product through a description of products and service in advertisements. If the company aim is to take a business on the next level, it is essential to understand the marketing strategies and communication plan. 

The value proposition of the company indicates that the primary focus of the company is on shareholder’s wealth maximization (Rezaee, 2017). Shareholders’ wealth can be raised if the company expands its business. Based on the value proposition, the differentiation strategy develops for the target customer. The positioning strategy will help the company to make a profit in a new market. 

Marketing mix variables

Define a clear value proposition 

The main objective of the company is to deliver a satisfactory return to the shareholders. Wesfarmers had a market value of just $2.7 million. The company has a huge number of stores, which contains a large number of staff members. There are about 220,000 employees working for Wesfarmers. It is one of the big organizations that has now emerged out as the most reputed reliable among consumers. The most important thing about the company is its framework and core values that enable the company to achieve the primary objective of providing a satisfactory return to the shareholders.

Wesfarmers uses culture as its value proposition, which basically includes a large number of co-operative people run by the passion to serve and improve a lot of men and women on the land (Gilchrist, 2017). However, the founder of the company sees a great value proposition with some of the core business, such as Bunnings Warehouse stores. Its main business has also attracted a large number of consumers. Wesfarmers has also started to shift their portfolio positions in order to reflect greater exposure. Wesfarmers basically focuses on indigenous people and follows an indigenous culture that gives a lot of value to the culture. They believe that culture can be used as a value proposition to the supply chains of Australian companies.

Evaluate the business situation 

Marketing Mix strategies

According to the current business situation of Wesfarmers is not better due to the Global Financial recession, due to which the business has been threatened to grind its operation to a halt.  Moreover, there are some financial issues due to the vast competition. The company also has a limited scope outside Australia, which results in a lack of expansion. It also might further result in stiff competition. However, the main issue that Wesfarmers is facing is linked to gaining a competitive edge and becoming one of the greatest retail industries across the Australian region. However, the earning of Wesfarmers is dropping time to time, due to which the position of the company is also reducing.  The current situation of the company examines the retail business operation and industrial business.

 The company operates under the diversification of services, and the successful venture of the company is the coal mining industry. The company’s industrial activities are successful because it provides safety concerns and safe chemical to be used. The sales of the coal mining sector of Wesfarmers Company decreased last year. The executive manager of the company highlights the reason which was time management. Time was the biggest factor that set forth the decline sales of the company. The current situation of the company is positive regarding acquisition or merger. Recently a report indicates that Wesfarmers had spent $12 billion on merger and acquisition and presented the list of 40 companies looking for expansion. The current situation of the company is not out of control; it reflects the success of the company. The investment schedule of the company will also have amendments. The company now focuses on investing other bigger companies and wishes to increase profit. Wesfarmers could use some marketing mix strategies to improve its growth and financial issues. 

Product

The main objective of the company, however, is not just related to selling cheap products but also to provide customer delight by offering them personalized services. However, the company needs to make sure that people visit the store again and again, and for this purpose, they need to provide an excellent service regarding quality products at an affordable price. In this case, the company can provide discount vouchers or free shopping vouchers, which can attract the customer and increase the value proposition.

The Wesfarmers Company operates in different segments such as industrial, retail, and other notable sectors. The company makes and sells products for farmer use, such as fertilizers and coal mining products. Thus, the company currently involves working in various divisions and try to satisfy the basic needs of the company. Based on the marketing mix process, the initial step is usually the description of the product. The company provides different products for each segment. Therefore the attributes and features of the product in each segment is different. 

Now, the three-level that usually accompanied by the product of a company is given below, 

  1. The core value of the product

  2. Actual product

  3. Augmented product 

The first level under the description of the product is its core function or benefit (Nagle & Müller, 2017). Such as, the company provides fertilizer products to farmers. The core benefit of the provision of fertilizer product is to save farmers money as well as time by helping them apply the more accurate amount of nutrients needed by their crops. Another core benefit of fertilizer products is that these help for adding organic materials, and it increases the ability to hold water. The fertilizer products help farmers to make a crop and plant the fields. 

The second level in product value proposition is a description of the actual product. The description of the actual product consists of different elements, such as quality level, design, package, and features. The company supplies the chemicals and fertilizers to agriculture, mining as well as industrial sectors. The company can provide the products to customers under the attractive design and packaging. This will help the company to attract customers and increase the sales. 

The third level of the product is a description of the augmented product and describes the augmented level. A product passes through three distinct levels (White, 2016). It means the delivery method of the product, installation, warranty, and after-sales service. The company can make its product effective and differentiated through offer warranty of product and after-sales service. This will not only help to make a successful product but also help to increase the sales and revenue of the company. 

Price

Price plays a very crucial rule in the process of marketing, and in gaining a competitive edge to the Wesfarmers. In this case, there is a need for the company to search for the prices of the same product offered by other countries instead of fixing prices. For example, the famous competitors of Wesfarmers, such as Amazon and Woolworth, are doing quite well due to their pricing strategies. Similarly, Wesfarmers also need to focus on pricing strategies, such as keeping it a little bit flexible.

The company aim is to expand its business in the Turkish market. As it is a well-known that Turkey is the vast country with a lot of resources, skills, and opportunities. For the Wesfarmers Company, in order to reach each and every customer segment, it is very important that products are available at every location. While in order to capture and reach each and every customer, it is important to keep the prices low. The company will adjust the low prices in the international market in order to get high outcomes. It is not compulsory for companies to lower the prices in order to get a high return. Sometimes, the prices kept low in order to capture the maximum audience. 

It is important to discuss that Wesfarmers is currently using the low pricing strategy in all sectors and markets. However, the low prices affect the sales pattern of the company, but in new international, it is compulsory to set low prices. It is recommended that the company should set low prices initially when start operating in the Turkish market because to attract maximum customers and retailers. The low pricing strategy is recommended to the company because through this way, Wesfarmers can capture maximum customers, and once the trust builds among customer and company, the prices can be slightly increased. However, initially, the company should have to keep its prices low. 

The lower prices at the very start will also help the company to understand the behavior of the customers. It will help to understand what customers want and what are the needs of the customers. It will also help to understand the purchasing behavior of the customer at the same time. Therefore, the low pricing strategy recommended to Wesfarmers Company. 

Place

Generally, place describes the distribution strategy of a company as well as product. The distribution strategy indicates how a company will distribute its product to end-users (Joyce & Paquin, 2016). Most of the companies distribute their products or services through supply chain analysis. The company can reach its products through outlet distribution, through supplier or with the help of online channels. Thus each company has a different distribution strategy for the provision of products. 

The distribution strategy represents the presence of outlets or franchise explanation.  Currently, the company operates its business into many well-known countries. Now, it is recommended that the company can expand its business into the Turkish market. It is recommended that the Wesfarmers Company is to distribute its products or services through establishing outlets. The company can locate different outlets at different locations of the country and can distribute its products to end customer. Moreover, the company will locate its own outlets in the new market instead of franchising. 

It is recommended that the company can distribute its products to end customers after identifying the need in that market. The company will locate its own outlets and will maximize its wealth. Now, the matter is where the company will locate outlets and how it will benefit Wesfarmers in terms of success. The company will locate the outlets at different locations, such as near the farmer’s position. For example, the company will initially capture the big cities of the country, such as Istanbul, Izmir, and other famous cities. Moreover, the company will distribute products to end customers through the most successful distribution way.

Manufacturer- Retailer- Company- End customer

First of all, the manufacturer will manufacture the product and give it to the retailer. Then the retailer will supply the product to the company, and the company will finally deliver the product to end customer. The matter is distribution strategy should be optimized and effective to get the possible outcomes. The entire success of the company depends on a successful distribution strategy. Further, the distribution strategy will also be helpful in the growth phase. The effective distribution strategy will accelerate sales and will help in space growth (Grant, 2016). It will also be helpful in extending the leadership success of the company as well as supply chain growth. 

Promotion 

The last element of the marketing mix is promotion strategy. Generally, the promotion strategy explains how a product will be promoted in order to get the maximum sales. While entering a new market, it is highly essential to use different promotion strategies and attract customers. Now, the promotion strategies that a company can be used in the new international market are,

  1. Social media promotion 

  2. Branded promotional gifts 

  3. Point of sale promotion 

  4. Personal selling and advertisement 

  5. Direct marketing as well as publicity

  6. Sponsor events

By using the above promotion strategies, the company can get a lot of benefits and can also increase the sales pattern. For example, social media users in every country. It cannot be denied that people do not use social media. One of the best way through a company can promote its product is the use of social media marketing or branded promotional gifts. The company can offer gifts, discounts to promote its products. The company can arrange sponsor events and direct selling to foster publicity.

The most common way through a company can promote its products or services personal selling at specific points and through advertisement. Thus, the whole marketing plan indicates that if a company wants a successful growth in the international market, the company should focus on market strategies, marketing mix, and clearly defined promotional strategies. If a company focuses on these strategies, the company will get higher success. 

Conclusion

The company Wesfarmers operates in different countries and have approximately 490,000 employers. After thorough analysis of all the factors, it can be concluded that Westfarmers will surely have positive impact on its business after having its new outlets in new locations. Though several factors may also decline their business growth, but can be taken care of by higher management and following proper strategies, The company implements global marketing strategies under different steps, such as planning , analyzing, and implementation. 

References

Banerjee, S. B. (2017). Corporate environmentalism and the greening of strategic marketing: Implications for marketing theory and practice. In Greener Marketing . Routledge., (pp. 16-40).

De Mooij, M. (2018). Global marketing and advertising: Understanding cultural paradoxes. SAGE Publications Limited.

Gilchrist, D. J. (2017). Imperial Theory and Colonial Pragmatism. Palgrave Macmillan.

Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.

Joyce, A., & Paquin, R. L. (2016). The triple-layered business model canvas: A tool to design more sustainable business models. Journal of Cleaner Production, 135,

Kotler, P., Burton, S., Deans, K., Brown, L., & Armstrong, G. (2015). Marketing. Pearson Higher Education AU.

Martinus, K., & Sigler, T. (2016). Boomtown globalizing: Perth as an internationally connected resource hub. Planning Boomtown and Beyond. Perth: UWA Publishing. 

McDonald, M. A. (2016). Strategic marketing planning: theory and practice. The marketing book. Routledge., 108-142.

Nagle, T. T., & Müller, G. (2017). The strategy and tactics of pricing: A guide to growing more profitably. Routledge.

Porter, M. E., & Kramer, M. R. (2019). Creating shared value. In Managing sustainable business . Springer, Dordrecht. (pp. 323-346).

Rezaee, Z. (2017). Corporate sustainability: Theoretical and integrated strategic imperative and pragmatic approach. The Journal of Business Inquiry, 16. 

White, L. A. (2016). The evolution of culture: the development of civilization to the fall of Rome... Routledge.

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