Marketing Case Studies Sample Paper on City Beach (Retailer)

City Beach (Retailer)

Activity task 1.1

Founded in 1985, City Beach is one of the most successful retail businesses in Brisbane. The business falls under the retailing industry, which is one of the fastest growing not only in Australia but worldwide. It retails products such as clothes and accessories. It also retails shoes such as Converse. Moreover, the business provides surfing and skating services, and has also hosted a variety of DJs and celebrities from all over the world including Snoop Dogg. The business has undergone expansion and currently has over 60 stores in Australia, as well as an online store. Some of the prominent and top brands sold by the company include Roxy, Nixon Inc, Oakley Inc., Billabong clothing, Mink Pink, Quicksilver, and others.  The retail business serves customer of every economic level and social class. Besides, customers from every education class enjoy services and products sold by the company. A large percentage of its customers are inclined to entertainment and sports, and these include DJs and musicians, motocross teams, live bands, and pro surf teams. It should be noted that most customers of the business are interested in fashion, and this is the primary focus of the business. Customers can access City Beach’s products and services in its stores located in towns and cities such as Melbourne, Brisbane, Gold Coast, Darwin, Perth, and Sydney. The business also has an online store that has attracted more customers in the recent years. City Beach sells high-quality products, and thus, most of the customers prefer buying the goods in bulk.

Activity task 1.2

The operations of City Beach are affected by the external environment, which entails the political and legal environment. The Australian government formulates policies and laws that regulate information standards as well as product safety, and this has greatly affected how City Beach operates. Moreover, the formulation of the Australian Consumer Law (ACL) has largely affected the operations of City Beach. It should also be noted that the economic and financial environment have affected the company’s operations. The incline of Australia’s economy in the recent years has boosted its operations because funds have been availed for the company itself to expand its stores and for the customers, which has seen an increase in the purchasing power.

On the other hand, there has been a steady increase in the interest rates imposed by the Australian government and other financial institutions in Australia. This has affected the operations of most businesses; City Beach included. The increase in interest rates has been accompanied by serious inflation in the country, and this has seen the prices or cost of materials soar. All these put together have jeopardized the operations as well as revenues collected by City Beach.

It should also be noted that social, demographic, and cultural factors form part of the external environment, which greatly influences the operations of City Beach. First, Australia, like any other country in the world has a rapid evolution regarding fashion and lifestyle. Most Australians are fast shifting and embracing modern and current fashion, and this has forced City Beach to sell fashionable and trendy brands. Besides, the needs of customers in Australia, particularly Brisbane change depending on the time of the year and seasons. As a result, the company has been forced to keep pace with the ever-changing and unpredictable customer needs, and this has greatly affected its operations. Changes in size age groups can also not be ignored, as they have influenced the operations of the business both positively and negatively. First, the population of youths in the country has increased rapidly in the recent years, and thus, the company’s customer base has been expanded. This is owed to the fact that youths constitute approximately 75% of the company’s customer base. Moreover, the rise in Australia’s economy has seen an increase in income for the citizens, and this has boosted the profitability as well as revenues recorded by most businesses, City Beach included. As mentioned earlier, City Beach provides a variety of goods and services to the customers. One of the key services provided by the business to customers is entertainment. Agreeably, the fact that more youths, as well as adults, are participating in recreational activities and entertainment services has boosted the company’s operations.

            An important factor in the external environment that has boosted the operations of City Beach is the development of technology and innovation. Apparently, new computing systems, new machines for production, as well as social media platforms for promotion and advertisement have enhanced the profitability of the business. In fact, the influence of technology and innovation is evident because City Beach is currently one of the most successful retail businesses in Brisbane, and the entire Australia.

Activity Task 1.3

The external environment for the retailing industry in Australia is experiencing changing customer needs and preferences. To keep pace with the ever-changing environment, City Beach should introduce new products such as skateboards to satisfy the increased interest of youths in skating. The business should also come up with a restaurant that will provide fast food to the increasing occupational groups in towns and cities. The business should also introduce sports facilities such as field tracks, swimming pools, and open parks to capture the huge population of customers interested in recreation and entertainment services.

Activity Task 2.1

StrengthsWeaknesses
Wide customer base Trained and skillful employees Strategic location A variety of products and services Quality products and services  Insufficient infrastructure to support the increasing customer population Inability to keep pace with changing trends and lifestyles Few employees

Activity task 2.2

Target Market Attractiveness

Target Market Segments 

A: Recreation

B: Entertainment

C: Fashionable clothes

D: Leisure

Rating CriteriaTarget Market Segments
  ABCD
1.Market size98106
2Growth potential86105
3Level of usefulness to customers6894
4Affordability to customers7746
5Level of competition89104
6Quality and image8685
7Cost of entry and exit31037
8Amount of promotion needed6984
9Ease of distribution and delivery85109
10Costs+ extent of production/service production changes needed9797
 Subtotal72758157

Activity Task 2.3

As seen above, City Beach plans to venture into recreation, entertainment, leisure, and the sale of fashionable clothes to capture the wide market and customers. However, one of the potential competitors that City Beach could face in its bid is Riverlife Adventure Centre, which covers all the mentioned market opportunities.  The following, are the strengths and weaknesses of City Beach’s potential competitor.

Riverlife Adventure Center

StrengthsWeaknesses
Wide customer base A variety of leisure and recreation activities Strategic location-Lower River TerranceNo provision of retail services Few employees

Activity Task 2.4

From the above activities, it can be seen that fashionable clothes provide the greatest market opportunity for City Beach, and hence, it should focus on adding to its already existing stock. The market segment that provides a good marketing opportunity for City Beach is entertainment, and hence, it should come up with a variety of entertainment services and facilities to attract more customers.

Activity Task 3

Costs are what are incurred in terms of finance and other resources in the establishment of a business whereas benefits are the resources that are obtained or realized from a business.

Opportunities and threats are factors that exist in the external environment of a business and can influence the failure or success of the business.

Advantages and disadvantages over potential customers are the positive and negative chances that a business has in relation to probable customers.

Sales forecast is the prediction done of a business’s future sales.

Return on investment potential is the ability of an invested resource to benefit the investor.

Production capacity and equipment focuses on output and how the equipment or machinery used, is balanced with the raw materials.

Product modification is the attempt by businesses or companies to make changes to their products to extend the product life cycle; brand name is a name that is given to a product and is widely recognized by customers; packaging refers to how good or products are presented to customers; design is the pre-planning of a particular product; feature refers to a distinctive attribute or characteristic of a particular product

Pricing strategies are the factors taken into account before a given value is put to a particular product.

Promotional mix is a combination of strategies or methods used to market a product or a group of products.

Distribution channels are paths followed by goods to ensure their movement from a seller to a buyer.

Service requirement and support refers to the statement that a customer gives a service provider concerning how he or she expects a certain service.

 Budget requirement is an estimate of costs required to operate or run a business.