Answer To: This assignment gives you the opportunity to examine how companies operate in the business...
Pushpa answered on Oct 29 2020
Marketing Management
Table of Contents
1.0 INTRODUCTION 1
2.0 INTRODUCTION OF THE COMPANY 1
2.1 Five years Total Shareholder Revenue (TSR) performance 2
3.0 IDENTIFYING COMPETITORS 3
3.1 Strengths and weaknesses of competitors relative to Dulux group 3
4.0 RECOGNIZING PRODUCTS, TARGET MARKET, SUPPLIERS AND CUSTOMERS 5
4.1 Identification of major three products and target market 5
4.2 Suppliers of selected products and the strengths 6
4.3 Major customers of Dulux group and their strengths 6
5.0 IDENTIFYING SECONDARY DATA FOR MARKETIG PURPOSE 6
5.1 Types of secondary used for marketing of products 6
5.2 Criteria for evaluating quality of secondary data and use in decision-making 7
6.0 MARKETING MIX 7
7.0 IDENTIFYING TWO MACRO ENVIRONMENTAL TRENDS 8
7.0 CONCLUSIONS 9
REFERENCES 10
List of Tables
Table 1: Strengths and Weaknesses of competitor's 3
List of Figures
Figure 1: Last five years performance of TSR 2
1.0 INTRODUCTION
Marketing management is the process of handling the marketing activities of the business in order to promote the products and services (Baker, 2016; Wilson and Gilligan, 2012; Shaw, 2016). With the help of the marketing management, organizations can offer the desired products to the target markets and perform the activities of planning, analyzing, implementation and controlling for the achievement of set goals. The current report is based on the marketing activities of Australian based business; Dulux Group that deals with diversified products and out of them major three products has been identified. For this purpose, three customers and two suppliers has been identified. Further, target market has been identified for the selected products along with competitors. Apart from these, marketing mix theory has been applied for the three major selected products involving wood stains, primers and effect finishes.
2.0 INTRODUCTION OF THE COMPANY
Dulux is an international paint company which is established in Sydney, Australia. Dulux Group is operating its business from 1918 with a leading marketer in the Australia and New Zealand market place (Dulux Group ltd, 2018). The company is operating the business at large scale and has various brands in other countries also such as Papua New Guinea, China and South-East Asia etc. Further, Dulux Group has different locations of business including Malaysia, Dalian, Dongguan, Auckland, Wellington etc. (Dulux Group ltd, 2018). The company has 4000 workforces to all over the branches and producing the quality products. Further, the company is the manufacturer of plenty of premium brands involving paints and coatings such as powder coating, protective coatings, woodcare, industrial, texture coating and decorative paints etc. (PPG Industries ltd, 2018). These brands can be used for construction of buildings, infrastructure, existing homes, industrial markets and new houses. Further, the company has a brand image in all over the world because it always produces innovative products for the satisfaction of customers. Moreover, Dulux Group has huge portfolio of premium brands like British paints, Cabot’s, Dulux, Selleys, Hortico, Berger etc. (Dulux Group ltd, 2018). The paint is heavily demanded in Australian market due to stable rate of GDP, higher prices of homes and low interest rates.
The construction products of Dulux Groups are; Concrete Plus ltd., EMER, Parchem, Avista and Flextool etc. (Dulux Group ltd, 2018). The Products of Dulux Groups are Interior and exterior paint, Wood stains, Primers, Effects finishes, Caulks and Sealants etc. (PPG Industries ltd, 2018). Moreover, specialty paint and primers are also the high-quality products which are involved in the product portfolio of respective company. Apart from this, the company has different types of product range such as Duramax, Wash & Wear, Weather shield, Design effects range, Texture etc. (PPG Industries ltd, 2018). Beside this, Dulux Groups uses both types of businesses including Business to Business (B2B) and Business to Consumers (B2C). Moreover, both customers such as business professionals (B2B market) and end consumers (B2C market) can be easily catered by the company with the help of a unique web existence. Further, by this both, professional painters and DIY consumers can be attracted towards providing the best possible results (The Olive Global, 2018).
2.1 Five years Total Shareholder Revenue (TSR) performance
The company has generated consistently strong position in the market place with solid performance. In last five years, the share price of the Dulux Group has been increased from $2.52 to $6.60 and the dividend pay-out ratio of the company is maintained approximately as 70% of Net Profit After Tax (NPAT) without involvement of non-recurring items. However, the profits of paints of Dulux Group Ltd has been risen 9% in half year profit (Dulux Group, 2016). According to figure 1, it has been found that the share revenue of the company is enhancing on continuous basis from 2011 to 2016.
Figure 1: Last five years performance of TSR
(Source: Dulux Group, 2016)
3.0 IDENTIFYING COMPETITORS
Dulux Group is a leading brand in the international market; however, it has several competitors such as Henkel, Unilever, Proctor & Gamble (P&G), H.B. Fuller, etc. Moreover, there are other several competitors of Dulux Group including Soudal, Bostik, Den Braven and Sika etc. which creates the tough competition in the market (Owler Inc, 2018). Even that Dulux is investing a lot of money in manufacturing of quality goods and focusing to meet customer’s demands. Further, the company has effective network of sales which is helpful to attain sustainable competitive growth, advantages and stable income (Dulux Group, 2016).
3.1 Strengths and weaknesses of competitors relative to Dulux group
Table 1: Strengths and Weaknesses of competitor's
Dulux Group
Berger Paints
Asian Paints
Kansai Nerolac Paints
Strengths
· Brand image in decorative industry
· Quality products
· High market share
· Innovative products
· Higher growth rate (Trevor, 2018; Market research.com, 2018)
· Wide range of decorative products
· Strong supply chain network
· Coverage of eco-friendly and low energy products
· Strong brand position
· Higher quality products (Hitesh, 2018)
· Huge market share
· Berger is the single supplier of Nuclear power plants
· Best deliver of automotive coating (Report buyers, 2018)
· Control over 50% market share
· Different way of advertising to attract the professionals and consumers
· Strong brand name Asian market (3rd largest company in Asia)
· Leadership in decorative paints (Scribed Inc., 2018)
· Strong supply chain system
· Strong financial position
· Effective supply chain management
· Market leader in automotive...