Bunnings Warehouse Marketing Mix

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Individual Assessment - Part One Customer Driven Marketing Strategy Matthew Adams

17th August 2012



Essay Question

Using a real life example of a company outline the key components of a customer driven marketing strategy. Illustrate how these components are utilised by your selected company in implementing a customer driven marketing strategy.

Introduction

A successful Customer Driven Marketing Strategy is centered around building and creating value for the business’ customers. I will outline and discuss three key components required to create a successful Customer Driven Marketing Strategy and demonstrate how these key components are used in an example company.

A great example of a company which has implemented a truly successful customer driven marketing strategy is Bunnings Warehouse which is a chain of over 200 retail warehouses selling home improvement and outdoor living products in Australia and New Zealand (Bunnings Warehouse 2012).1

Market Segmentation

A key component of a Customer Driven Marketing System is Market Segmentation which is the process of dividing a market into distinct groups of buyers on the basis of their needs, characteristics, or behavior. Segmentation allows the company to better reach and satisfy the needs of its customers and therefore effectively add maximum value for the consumer. (Kotler, 1978)2

It is possible to segment the consumer market through Demographic segmentation, Geographic segmentation, Psychographic segmentation and Behavioral segmentation.

An example of how Bunnings engages in Demographical segmentation is the analysis of their target market which would be predominantly Male focussed presumably as it is socially expected that Males are more interested in manual work for home improvement

1 Bunnnngs Warehouse Pty Ltd, Australia, accessed 16th August 2012, <http://www.bunnings.com.au> Used for company information and historical business analysis and progression in the Australian market.

2 Kotler, P. Mindak w. (1978) Marketing and public relations journal of marketing vol 42 no4 oct pp1320



and outdoor living products. This is shown in their Television advertisements which more commonly feature middle aged males as opposed to females or younger males.

An example of how Bunnings has segmented the market geographically can be seen in their distribution of store locations. As can be seen in the image below, the orange circles indicating store locations, are spaced not evenly but located around the most dense suburbs and cities. Most of the stores are located close to the more highly

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