MKTG6002 Marketing Report 1 Sample

MKTG6002 Marketing. Ass 1

Marketing – Report

Assessment Task

This assessment requires you to complete a 1,500-word situation analysis of a company that includes an analysis of the external marketing environment, internal marketing environment and industry. Please refer to the instructions for details on how to complete this assessment.
Note: The company you select for analysis in assessment 1 will also be used to complete assessment 2 and 3. The situational analysis you create in assessment 1 will be used to complete assessment 3.

Instructions

Write a 1500-word situational analysis in a report format for a company of your choosing that includes the following:

• Micro-environment analysis

• Macro-environment analysis

• Industry analysis using Porter’s Five Forces Model

You have 2 options for selecting a company for your situational analysis:

OPTION 1: You may use a company you’re currently working for or have worked for previously on either a full-time or part-time basis. If using an existing company, you must change the company name in your assessment.

NOTE: Any material submitted as part of your assessment, must ensure that it does not breach upon any of the Host Organisation’s rights, including with respect to maintaining confidentiality, and sensitivity over the information shared

OPTION 2: Use the company case study provided in the Assessment 1 section on Blackboard.

1.) Choose the company for your situational analysis based on Option 1 or Option 2 outlined above. You must identify which option you selected in your report.

2.) Write a 1500-word (+/- 10 %) situation analysis in a report format. Your situational analysis needs to include the following:

• A discussion of the value propositions, core brand values and buyer behaviour of your chosen company.

• An analysis of the micro-environment of your chosen company (the company, suppliers, intermediaries, relevant publics, customers, and competitors)

• An analysis of the macro environment of your chosen company (the political, economic, social, technological, legal and environmental (PESTLE) forces to establish their impacts on your chosen company’s strategies/capabilities to serve the target markets)

• An analysis of the industry your company is situated in using Porter’s Five Forces Model

• A list of the strengths, weaknesses, opportunities, and threats (SWOT) for the company as well as suggest appropriate strategies to overcome weaknesses and defend the company from threats.

3.) Please structure your situational analysis as follows:

Introduction

Briefly introduce in up to 100 words the company that is the subject of your situational analysis. This includes an explanation of the core business of your company, including the products or services is provides to its customers, and the industry it operates within.

Body

Include the following sections in the body of your situational analysis:
Value Proposition

o A discussion of the value propositions, core brand values and buyer behaviour of your chosen company.
Microenvironment Analysis

o An analysis of the micro-environment of your chosen company (the company, suppliers, intermediaries, relevant publics, customers, and competitors)
Macroenvironment Analysis

o An analysis of the macro environment of your chosen company (the political, economic, social, technological, legal, and environmental (PESTLE) forces to establish their impacts on your chosen company’s strategies/capabilities to serve the target markets)

Industry Analysis

o An analysis of the industry your company is situated in using Porter’s Five Forces
Model

SWOT

o A list of the strengths, weaknesses, opportunities, and threats (SWOT) for the company as well as suggest appropriate strategies to overcome weaknesses and defend the company from threats.

Conclusion

Briefly in up to 100 words summarise your key findings based on your analysis of your SWOT.

4.) Include a reference list on a separate page and use appropriate in text citations using APA7th referencing.

5.) You are strongly advised to read the Assessment Rubric which is an evaluation guide with criteria for grading your assessment. This will give you a clear picture of what a successful situational analysis should look like.

Solution

Introduction

As per the MBA Assignment Expert overview, Scentre Group is one of Australia and New Zealand's major retail real estate firms. Scentre Group's main line of business is the ownership, operation, and development of Westfield retail complexes in Australia and New Zealand. The firm runs 43 Westfield shopping centres in Australia and New Zealand, totaling over 11.4 million square metres of retail area (Scentre Group, 2023). 

Value Proposition

Value propositions: The main selling point of Scentre Group is that its Westfield retail malls provide visitors an upscale experience when shopping. High-end dining, shopping, and entertainment are all associated with the Westfield brand (Ameen et al., 2020). By appealing to top national and international retail brands towards its centers, Scentre Group hopes to establish thriving community hubs. Visitors benefit from having more options, convenience, and a fun experience thanks to this. 

Core Brand Values: Service, experience, and community are at the heart of Scentre Group's fundamental brand principles. With initiatives like concierge desks and digital navigation to help visitors, the organization places an emphasis on providing excellent customer service. With the help of upmarket facilities, special events, and brand launches, Scentre also places a strong emphasis on building a premium experience. By portraying its centers as "meeting places" in which individuals are able to shop, socialize and be entertained, the firm also hopes to strengthen ties within the community (Scentregroup.com, 2019).

Buyer Behavior: The Scentre Group serves a wide range of customers that appreciate variety, unique experiences, and convenience while purchasing. Key buyer groups include fashion-focused customers seeking access to premium brands and the latest trends. There are also families who visit Westfield centres for dining, entertainment and activities. Additionally, there are convenience-driven buyers who appreciate the breadth of offerings and central locations of Scentre Group's centres.

Microenvironment Analysis

The company: Scentre Group has strengths within its internal microenvironment. As one of the largest retail landlords in Australia and New Zealand, it has scale and national footprint across its Westfield portfolio (Scentre Group, 2023). This provides strong negotiating power with retail tenants. Scentre Group also has an experienced management team with deep real estate expertise. Moreover, the Westfield brand is nationally recognized, generating loyalty and drawing customers to its centres. However, there are weaknesses to consider. The shift to online shopping has impacted foot traffic and sales at traditional brick-and-mortar retailers, affecting Scentre Group's tenants (Zuberi & Rajaratnam, 2020). Operating costs across its large property portfolio are high. Scentre Group has also carried high debt levels to fund acquisitions and redevelopment projects. 

Suppliers: Within its microenvironment, Scentre Group must manage relationships with key stakeholders. Major tenants like department stores and supermarket chains are important long-term partners, providing anchor points in Scentre Group's centres. Suppliers such as cleaning, security and maintenance companies help ensure efficient centre operations. Scentre Group also works closely with external marketing and advertising agencies to execute brand and promotional campaigns. 

Intermediaries: Intermediaries play a role in Scentre Group's microenvironment as well. Real estate agencies assist in filling vacancies across its centres (Avantaggiato & Gallo, 2019). Meanwhile, banks and other financial institutions provide capital for Scentre Group’s development projects and acquisitions. 
Relevant Publics: Within its microenvironment, Scentre Group engages with the communities surrounding its centres through partnerships and sponsorships with local groups (Scentregroup.com, 2019). It also maintains relationships with local governments who shape policies impacting its centres.

Customers: In terms of customers, Scentre Group serves a broad range of consumers who visit its shopping centres. However, its target customer base is upper-middle income households who have higher disposable incomes. 

Competitors: Scentre Group competes directly with other major shopping centre landlords like Vicinity Centres and GPT Group (tracxn.com, 2023). It also faces competition from discount department stores and emerging specialty retailers located outside traditional shopping centres.
Macroenvironment Analysis

Figure 2: PESTEL analysis factors
(Source: Bhasin, 2023)

Political factors: The political environment in Australia and New Zealand shapes the regulatory conditions in which Scentre Group operates. Government policies on taxation, such as changes to the company tax rate, can impact Scentre Group's development costs and profitability. Proposed reforms to dividend imputation may also affect returns to shareholders. Local council planning approvals and zoning laws dictate Scentre Group's capacity to undertake new shopping centre projects (Mandeli, 2019). Policies on operating hours and public holidays determine permissible trading times at Scentre Group's centres. As a major retail landlord, Scentre Group engages extensively with multiple levels of government to ensure policy frameworks support the sustainability of its centres. Ongoing political instability and uncertainty in Australia around elections can undermine business confidence to expand, impacting Scentre Group's pipeline of tenants.

Economic factors: The economic environment shapes the demand for Scentre Group’s retail space. Australia has experienced decades of economic growth, supporting rising household incomes and discretionary spending (May et al., 2019). However, variable economic conditions and recessionary risks in the future could dampen retail sales and reduce occupancies across Scentre Group’s centres. Interest rates also impact costs and access to capital for Scentre Group's development projects.

Social factors: Social and cultural factors influence shopping habits. Increased health consciousness has driven demand for fresh food offerings and wellness precincts at Scentre Group's centres. A growing culture of convenience is also prompting shorter, more frequent shopping trips. Scentre Group caters to shifting consumer preferences by curating localised experiences leveraging food, entertainment and services (Scentregroup.com, 2019). Furthermore, Demographic shifts in Australia present opportunities for Scentre Group to tailor its offerings. Urbanization has driven demand for shopping centres in inner-city areas and major hubs (Rogerson & Giddings, 2020). An ethnically diverse population also enables Scentre Group to cater to various cultural preferences. However, an aging population poses risks, as older generations tend to shop less.

Technological factors: Technological forces are reshaping Australia's retail sector. The growth of e-commerce has disrupted traditional physical retailers, reducing foot traffic at shopping centres. Scentre Group has responded by integrating digital technology like click-and-collect lockers across its centres. Implementation of new systems to glean customer data and insights comes at a high cost for Scentre Group. 

Environmental factors: Sustainability is an emerging issue as calls grow for businesses to be environmentally and ethically responsible. Scentre Group will need to address stakeholder concerns by improving waste management, energy efficiency and community engagement across its centres. Failure to adapt on ESG issues poses a risk to Scentre Group's reputation (Solana, 2020).

Legal factors: Legislative factors impact Scentre Group's operations. Zoning, planning and development laws dictate where Scentre can undertake projects (Mandeli, 2019). Changes to trading hours affect centre opening times and customer visitation patterns. Scentre Group must also comply with employment, safety and environmental regulations. Proposed tax reforms, such as changes to dividend imputation, may affect Scentre Group's shareholder returns.

Industry Analysis

Threat of new entry: The retail real estate industry has high barriers to entry, with substantial capital required to develop shopping centres (Ullah et al., 2021). Incumbents like Scentre Group and Vicinity Centres hold prime sites in high-traffic locations. New entrants struggle to secure equally attractive locations. The high costs of construction also deter new shopping centre developments.

Competitive rivalry: There is a moderate level of rivalry among existing companies in the industry. Scentre Group competes directly against Vicinity Centres and GPT Group across Australian metro markets (tracxn.com, 2023). Competition is primarily based on tenant mix, amenities, convenience and brand reputation. Rivalry is kept in check by little product differentiation and the dominance of major incumbents.

Supplier power: Tenants have moderate bargaining power in the industry. International retail chains have sway in negotiations but cannot easily forego prime locations in major shopping centres. Smaller, specialty retailers have less influence over landlords (Ali & Anwar, 2021). Overall, landlords like Scentre Group leverage their asset scale, foot traffic and anchor tenants to maintain tenant relationships.

Buyer power: Shoppers have low bargaining power. Consumers lack negotiating leverage with shopping centre landlords. However, they can choose to visit competing centres, downtown locations or online stores. This indirect power is kept low by the convenience and breadth of offerings available at major centres.
Threat of substitution: The threat of substitution is moderate. Downtown high streets provide an alternative shopping destination, but lack the scale of shopping centres. Discount department stores also pose a substitute. The rapid growth of online retail has emerged as the largest threat diverting shopper traffic away from physical centres (Zuberi & Rajaratnam, 2020).

SWOT Analysis

Table 1: SWOT Analysis
(Source: Self-created)

Scentre Group should pursue development opportunities in growing urban areas to capitalize on demographic shifts to cities. It needs to leverage technology to create interactive, omni-channel shopping experiences blending physical and digital. The company must also future-proof its asset mix by curating experiential offerings centred on services, entertainment and leisure. To address weaknesses, Scentre should review its capital structure and divest non-core assets to strengthen its balance sheet.

Conclusion

Scentre Group holds a leading position in Australia's retail property sector, underpinned by its national portfolio of Westfield shopping centres. However, the company faces both internal weaknesses and external threats from an evolving industry landscape. By capitalizing on urbanization trends, integrating new technologies and providing differentiated experiential offerings, Scentre Group can solidify its competitive positioning. Addressing its high debt levels also remains a priority. Scentre Group will need to be proactive and innovative to maintain its market dominance in the face of online disruption. 

References

Ali, B. J., & Anwar, G. (2021, June 9). Real Estates Strategies: Analysis of Strategic Management Practices in Real Estate Companies. Papers.ssrn.com. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3863632

Ameen, N., Tarhini, A., Shah, M., & Madichie, N. O. (2020). Going with the flow: smart shopping malls and omnichannel retailing. Journal of Services Marketing, ahead-of-print(ahead-of-print). https://doi.org/10.1108/jsm-02-2020-0066

Avantaggiato, M., & Gallo, P. (2019). Challenges and Opportunities using MultiChain for Real Estate. IEEE Xplore. https://doi.org/10.1109/BlackSeaCom.2019.8812780
Bhasin, H. (2023). PESTLE analysis - Analysis of external business environment. Marketing91. https://www.marketing91.com/pestle-analysis/

Mandeli, K. (2019). Public space and the challenge of urban transformation in cities of emerging economies: Jeddah case study. Cities, 95, 102409. https://doi.org/10.1016/j.cities.2019.102409

May, D., Nodari, G., & Rees, D. (2019). Wealth and Consumption | Bulletin – March Quarter 2019. Bulletin, March. https://www.rba.gov.au/publications/bulletin/2019/mar/wealth-and-consumption.html

Pleyers, G., & Poncin, I. (2020). Non-immersive virtual reality technologies in real estate: How customer experience drives attitudes toward properties and the service provider. Journal of Retailing and Consumer Services, 57, 102175. https://doi.org/10.1016/j.jretconser.2020.102175

Rogerson, R. J., & Giddings, B. (2020). The future of the city centre: Urbanisation, transformation and resilience – a tale of two Newcastle cities. Urban Studies, 004209802093649. https://doi.org/10.1177/0042098020936498

Saull, A., Baum, A., & Braesemann, F. (2020). Can digital technologies speed up real estate transactions? Journal of Property Investment & Finance, ahead-of-print(ahead-of-print). https://doi.org/10.1108/jpif-09-2019-0131

Scentre Group. (2023). About Us - Scentre Group. Www.scentregroup.com. https://www.scentregroup.com/about-us

Scentregroup.com. (2019). Our Strategy. Scentregroup.com. https://www.scentregroup.com/investors/our-strategy

Schooley, S. (2023). SWOT Analysis: What It Is and When to Use It. Business News Daily. https://www.businessnewsdaily.com/4245-swot-analysis.html

Solana, J. (2020). Climate change litigation as financial risk. Green Finance, 2(4), 344–372. https://doi.org/10.3934/gf.2020019

tracxn.com. (2023). Scentre Group - 10 Competitors and Alternatives - Tracxn. Tracxn.com. https://tracxn.com/d/companies/scentre-group/__FLC13_ZV4YzUwO8k04OUfRgv-BKomFXADK-qe8Mj2g8/competitors

Ullah, F., Sepasgozar, S. M. E., Thaheem, M. J., & Al-Turjman, F. (2021). Barriers to the digitalisation and innovation of Australian Smart Real Estate: A managerial perspective on the technology non-adoption. Environmental Technology & Innovation, 22, 101527. https://doi.org/10.1016/j.eti.2021.101527

Vaidya, D. (2022). Porter’s Five Forces. WallStreetMojo. https://www.wallstreetmojo.com/porters-five-forces/

Zuberi, M. F., & Rajaratnam, D. (2020). Measuring retail performance in an omni-channel world. Journal of Marketing Channels, 1–7. https://doi.org/10.1080/1046669x.2020.1741992