Describe about the Macro and Microenvironment Analysis of Bindle.
Market Environment Analysis is a vital step that assists to understand the national, international, external and internal environment of an organization that directly or indirectly affects the business. The factors that have direct control can be managed by the companies but same factors are not in the control of the business. The management of such factors in a proper way results as an opportunity. Companies whose management is strong, converts the challenges into opportunities. It enhances the potential of the organizations and protects from the threat available in the environment. There are many tools that can help organizations to analyze the environment like- SWOT analysis, PESTLE analysis, STEEP analysis, STEEPLE analysis, PEST analysis, etc. A PESTLE analysis is the most used and effective analysis used by the companies. It stands for: Political, Economical, Social, Technological, Legal and Environmental analysis. It also analyzes the opportunities and threat of an organization.
A Political analysis means all the government regulations and rules imposed by the same, which impact the businesses of a particular country or state. For example- Taxes on imports and exports, quotas, tariffs, etc. Economic factors are those factors related to the money. It can be in the form of tax, duties, etc. for which the businesses are obliged to pay. Society refers to the social surrounding in which a business is running. The changes in the society and the norms, culture, ethics, morals of the people, that creates an impact on the business. Legal environment means laws and duties of the government that should be followed by the organization to work smoothly. Environmental factors are the factors that are not controlled by anyone. Like- Weather, seasons, disaster etc. In this way, all these factors influence the working of the business.
Bindle
Bindle is a company that sells their products online. It is situated in Australia. The company manufactures gift items using differ styles. They believe that eco-friendly production sustains the business for a longer period of time. Hence, the company blends its products with sustainability. They have eco-friendly gift stores located in various parts of Australia. Bindle has replaced the artistic license and gift hampers into attractive gifts and pickings. This company designs and presents its consumers with beautiful gift boxes and baskets. Bindle prepared gifts not only for women but also, it has a wide variety for men, babies, clients, corporate people, Christmas, birthday parties etc. The items of the gifts are manufactured by boutique Australian who prepare food, wines, cakes, desserts, cookies, and also design gift items for the company. The gifts from Bindle are the remarkable alternative of traditional gifts and hampers. Bindle is a perfect choice for those who want to keep the environment in their minds while purchasing gifts and presents for their loved ones (Upadhyay, 2014).
The gifts from Bindle came in a fully packed hand-made Bindle signature baskets or boxes. The packing is done by rich quality packing paper. The packaging of each bundle of gifts is done through stylistic nod according to the Japanese art. The tie-up of gift boxes and folding is not done by using tapes and staples which give the present holder a different experience of unfolding the gifts. The packing in itself is a valuable part of the gifts by Bindle.
A Bindle is bundles of possession carried by the hobo. Hobo means a person who is homeless, a vagrant. The company said, “I have had my hobo chapters and lived nomadically with very few possessions.” Bindle said that unlike hobos who do not have any possessions and prescribed boundaries, the company has a sense of place and locate. Everyone faced a nightmare before going to a party or many occasion to search perfect gifts for the loved ones.
Bindle was born with a vision that due to globalization the world is becoming smaller and the choice for gifts and the features is also less. With this vision, it engaged the local artisans of Australia to produce hand-crafted gift packs. They have a wide variety of gifts from every part of Australia. Their creation is unique and matched the culture over here- the gifts, its wrapping and the boxes in which they are wrapped. Each gift item produced by Bindle is a compilation of many talented people who tried to bring his or her own creativity. The inter-relationship between the artisans, friends, families, farmers, etc. makes the Bindle unique. Each delivery of gift influences the whole organization (Pierce, 2012).
Bindle is not a simple gift-packing service. Each box from this company has handmade cookies. If you want to have the goodies from Bindle, you do not have to put mush efforts to find gifts. All the gifts are carefully and uniquely chosen. Example- ties pattern packing, coffee beans, cosmetics, gourmet jams, etc. Basically, this company and its products are a shortcut to find quality presents with lesser efforts (Uddin, 2012).
The packing of the gifts is done by a designed cloth which is neatly and beautifully wrapped. They have many themes and designs depending on the gifts and the occasion on which the gift needs to deliver.
Tagline: “We assemble it, you take the credit.”
There are two types of marketing environment that influence Bindle i.e., micro and macro environment. Such factors are not in the control of the management but (PESTLEanalysis Contributor, 2015)still influence the process of strategic planning and decision making for marketing strategy (Wilson and Piper, 2010).
Demographic Environment
This environment comprises of all the demographic forces that influence bindle. It includes the country, region, the age of the target customers, education level, the lifestyle of people, the culture of that area, etc. The Demographic environment for Bindle is very comfortable and accessible. As the company situated in Australia, the people over there are very educated and elegant.
Economic Environment has an important impact on bindle. This factor results in trading of products from the market. The tools of an economic factor are inflation, deflation, taxation policy, interest rates on loans, etc. that affects Bindle. These factors become more impactful at the time of new entrants and emerging enterprises (Ghose, 2015).
It is an important factor of the macro factor of environment. This environment includes the natural resources used by the company as an input to get the outputs. The concern for Bindle enterprises is the declining rate of natural resource, pollution, depletion in the supply of raw material, government policies, etc. As the company, uses a big amount of natural resource in their company.
Technology is one of the major forces that influence the companies. Though, Bindle believes in the eco-friendly production of the products, still, they also need some technology. It is a pervasive factor of the environment. Technology means the application of updated knowledge that the science provides. The fact is that the technology helped the business to bring revolution in the business operations. Consequently, Jindle has applied to knowledge and application that are changing rapidly (Romero, 2011).
The political and legal issues are very similar to the social environment because the law and regulations are passes due to the problems arise in the society. There are certain laws that regulated the political environment like- fiscal policies, monetary policies, control on the emission from the industries into air and water, work and health, price control, wages, and salaries, etc. Other factors that come under the same are equal opportunity to all, employment contract, laws for the collective bargaining, etc. Such factors influence the business either in a positive way or negative.
Social environment refers to the environment that creates many types of obligations to the company. Bindle usually frames their decisions in accordance with the culture of Australia. Social –cultural environment deals with the beliefs and values of the society. According to this, the decisions making takes shape. It is one of the biggest challenges to the managers
Customers
Customers are the most important part of marketing environment. Customers are the individuals or the group of people who buys the goods and services of the company. Bindle in an organization who takes care of their customers and produce goods that provides maximum satisfaction to the same.
The suppliers are also the group of people or individuals who supplies the raw material used by Bindle to (Gordon, 2014) manufacture fine products like- coffee beans, wood, sugar cane, etc. The effective supply leads to long-term survival of the organization.
Intermediaries are the creditors and the debtors that may directly or indirectly influence the bindle.
Competitors are the individual’s who manufacture the same product as Bindle. In other words, the organization whose target customers are similar as your organization in known as customers. Competitors are the rivals present in the market that influence the business on a high level.
Public refers to the individuals present in the market. The opinion of public plays a vital role as it affects the organization and its reputation.
Table showing market segmentation of Bindle
|
S. No. |
Basis of Segmentation |
Category |
Identifies segment |
Importance/ Relevance |
|
1. |
By Behaviouralistic |
Beverages (coffee, tea, etc.), bouquet, chocolates, etc. |
Youth, corporate people, business meetings, family vacations, special occasions, etc. |
The basis of this segment is the lifestyle of the people and their behavior. It also includes the loyal behavior of the customers towards any brand. |
|
2. |
By Physiographic |
Cosmetics, consumer goods, etc |
Young individuals, middle aged people, status conscious, etc. |
The basis of this segmentation is also lifestyle of the people. The attitudes of the individuals, attitude, interest, value, etc. assist bindle to identify their potential customers. |
|
3. |
By Demographics |
Daily use products, basic products like toiletries, etc. (Wasserman, 2016) |
Young, young families, middles aged people, retired people. old age people, etc. |
The basis of this segmentation is according to the age, size, income, educations, ethnicity, etc. |
|
4. |
By occasion |
Show pieces, accessories, chocolates, etc |
The identified segment includes all age people. |
The basis of this segmentation is the festivals and occasions according to which the customers demand for the products. |
Bindle’s market segmentation is very easy and simple for the company. There market segment of this company depend on the products they manufacture. Marketing segmentation refers to a strategy of market that includes division of market into sets of consumers, business, and countries, perceptions, who have similar needs, interests, preferences, priorities, etc. and then implement those strategies to target them. This process in takes place to search the target customers in the market place and to position the marketing strategy on them such as positioning so that an organization can achieve objectives. Many organizations opt for product differentiation policies and indifferent approaches that include product line, specification in products, which depend on the market segment. There are various types of market segmentation depending on the nature and type of market and product.
Target market for Bindle
As we know, that Bindle is an organization that produces gift products and presents of various types. The target market for Bindle is the youth of Australia. Because they are the one who exchanges the gifts items. There are many occasions on which the youth need to exchange gifts, like- Valentine day, valentine week, birthdays, parties, anniversaries, marriages, ceremonies, etc. ( Blackford, 2015).
Generation Y (age 10-24) & generation X (age 24-37) – The young generation and the middle age people of Australia will be the target market for Bindle and its products. As they are the one who demand the most for such products. Generation X refers to the married people, raising children, individuals who are buying home for the first time, building the corporate, job class people, etc. Generation Y refers to the people who are in a frowning age and experiencing the power to spend money for others. They are career orientated and have enough money to spend on other to give gifts and present for their loved ones (Patidar, 2012).
The products differentiation and positioning of Bindle products to its target market is an easy process.
Product
Bindle has to produce unique products to attract more customers. It can be through special packaging, cost of the product can be a factor of differentiation factor, antique designs, styling, and attractive colors, advertisement strategies, etc. (Suttle, 2016) may help Bindle to differentiate their products for the competitors.
Image
Bindle can obtain completive advantage by using image differentiation strategy in their organization. It can be achieved through services, channels, people, etc. The image can be differentiated by understanding the actual needs of the target segmentation and producing goods in accordance with the same (Recklies, 2015).
Service
Service is a vital factor to impress your target market and set an image in the eyes of them. It can be through after sale services, unique services, additional services, guarantee warrant y, free services, etc.
People
The customers are the back bone of any market. Bindle has to analyze the market and research on the needs and desires for the customers in Australia. Afterwards, they have to design their product that matches the same.
Channel
It refers to the channels of the goods and services. It includes, free delivery, delivery on time, accurate delivery of products, etc.
Conclusion
Under this study, we have done marketing analysis for bindle. The company’s reputation is good with a wide range of products. The marketing strategy o this company is also very approachable. It has a completive advantage as there is no such company found in Australian markets. So the company is enjoying a type of monopoly. The company has a strong brand position in the markets of Australia. The significance of this study is that the learners will learn a lot about Bindle. They also learn to do market study for any organization. There is a description on product differentiation and brand positions are also discussed. The study is providing detailed profile of all the customers and the target segment for Bindle.
References
Blackford, C., (2015), Bindle, [Online], Accessed on: 17 September 2016, Available on: https://bindle.com.au/blogs/bindle/73477893-bindle-testimonial-love
Ghose, S., (2015), Marketing Environment, [Online], Accessed on: 17 September 2016, Available on: https://www.yourarticlelibrary.com/marketing/marketing-environment-study-notes/50811/
Gordon, A. (2014). The Empire Of Dreams Mindset. Cork: BookBaby.
Patidar, M., (2012), Marketing Environment, [Online], Accessed on: 17 September 2016, Available on: https://www.enotesmba.com/2012/12/mba-notes-marketing-environment.html
PESTLEanalysis Contributor, (2015), What is Marketing Analysis?, [Online], Accessed on: 17 September 2016, Available on: https://pestleanalysis.com/what-is-marketing-analysis/
Pierce, F., (2012), Top 10 supply chain organizations, [Online], Accessed on: 17 September 2016, Available on: https://www.supplychaindigital.com/top10/2520/Top-10-Supply-Chain-Organizations
Recklies, D, (2015), Market Segmentation- Why is it Important?, [Online], Accessed on: 17 September 2016, Available on: https://www.themanager.org/2015/02/market-segmentation/
Romero, E. (2011). Compete outside the box. [U.S.?]: Compete Outside the Box Press.
Suttle, R., 2016, What is a product mix?, [Online], Accessed on: 17 September 2016, Available on: https://smallbusiness.chron.com/product-mix-639.html
Uddin, M. (2012). Journal And Confrence Paper On (Enviornment) E – Waste Management. IOSRJMCE, 2(1), pp.25-45.
Upadhyay, A. (2014). Social Concentration on Boards, Corporate Information Environment and Cost of Capital. Journal of Business Finance & Accounting, 41(7-8), pp.974-1001.
Wilson, E. and Piper, J. (2010). Spatial planning and climate change. London: Routledge.
Wasserman, E., (2016), How to price your products?, [Online], Accessed on: 17 September 2016, Available on: https://www.inc.com/guides/price-your-products.html
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