Discuss about the Customer Analytics.
JB Hi Fi is the leading retail store that deals in supplying electronic equipments to its customers all across Australia (jbhifi.com.au 2016). The CMO of the company has commissioned an analytical study related to its marketing department such that to examine the performance of the same in the market. The study would also be helping the company to identify the opportunities associated with the process such that to exploit on the same. This study would be helpful in analysing the data about the marketing sector related to the company from the market. It would also help in developing recommendation for the current situation for the company such that to gain competitive advantage over its competitors like Harvey Norman and The Good Guys that has been operating in the market. The main objective of the study is to make the company competitive such that to remain sustainable in the market.
In order to conduct the analysis of the marketing sector of JB Hi Fi, the following parameters have to be taken into account.
The market position of a particular company depends on various factors including the quality of products, customer satisfaction level, marketing strategy of the company that could help in influencing the purchasing behavior of its customers (VanAuken 2014).
The market share of a JB Hi Fi depends on the following factors:
Penetration Share
The penetration share of a particular brand is the count of the proportion of consumers buying its products (Buoye et al. 2016). It is given by the ratio of the number of customers purchasing JB Hi Fi products to the total number of customers purchasing the categories.
Share of Wallet
Share of wallet is used in the financial companies and retail businesses (Jang, Prasad and Ratchford 2016). It is widely used to measure the loyalty of an individual customer towards a particular organization. It is also referred to as the market share of JB Hi Fi among its customers.
Usage
Usage related to a particular brand is the average total purchases in the category by the brand customers. It is specifically measured by the index known as the Heavy Usage Index which is given by the ratio of the average total purchases by the JB Hi Fi customers to the same by all customers in the category (Pilling, Rigdon and Brightman 2012).
Thus, from the above discussion, it can be evident that the market position and strategy of a particular company depends on the number of factors based on which the marketing study on the same is conducted.
|
Total Brand Purchase |
Harvey Norman |
The Good Guys |
JB Hi Fi |
|
(in US $) |
$78,192 |
$ 76,049 |
$62,166 |
Table: Total Purchase of customers in respective of each brand
Source: Created by author
From the analysis of the above table, it can be evident that the total number of purchases as per the survey conducted on the 322 respondents, the maximum purchase is for the Harvey Norman Company. From the table, it can be evident that the customers have a least tendency to purchase from “JB Hi Fi”. However, it should be noted that there is huge difference between the total purchases of JB Hi Fi and Harvey Norman where the latter has more influence on the customers related to their purchasing decisions.
|
Total Customers |
Harvey Norman |
The Good Guys |
JB Hi Fi |
|
322 |
169 |
162 |
161 |
Table 2: Total customers purchasing for each brands
Source: Created by author
From the analysis of the above table, it can be evident that the customers are more attracted towards buying the products from Harvey Norman than the other two companies. The company has been able to make 169 loyal customers whereas “JB Hi Fi” has been able to attract the least number of customers. However, it should be noted that there is no such big difference in the number of customers of the companies. This implies that there exists a serious competition among the companies in the market.
|
Total market share of |
||
|
Harvey Norman |
36% |
|
|
The Good Guys |
35% |
|
|
JB Hi Fi |
29% |
Table 3: Total market share of each brand
Source: Created by author
From the analysis of the above table, it can be evident that Harvey Norman is leading the market with the market share of approximately 36% with “The Good Guys” at the second position with the same at 35% approximately. JB Hi Fi has been able to capture the market with their market share of 29%. It should be noted that there is a marginal difference in market share as captured by the two companies viz., JB Hi Fi and Harvey Norman. From the analysis of the market share of the companies, it can be evident that the two companies are giving tough competition to each other in the market.
|
Relative Market share |
|||
|
Harvey Norman |
1.03 |
||
|
The Good Guys |
0.97 |
||
|
JB Hi Fi |
0.80 |
||
Table 4: Relative Market share of each brand
Source: Created by author
From the analysis of the above table, it can be evident that the relative market share of the Harvey Norman Company is the maximum at 1.03 as compared to the same at 0.97 and 0.8 of The Good Guys and JB Hi Fi respectively. This implies that the JB Hi Fi has been able to build a brand for itself in the market. However, it should be noted that there is no suich big difference in the market share of the respective companies.
|
Penetration share |
|||
|
Harvey Norman |
52% |
||
|
The Good Guys |
50% |
||
|
JB Hi Fi |
50% |
||
Table 5: Penetration share of each brand
Source: Created by author
From the analysis of the above table, it can be evident that the market penetration share of the Harvey Norman is the maximum at 52% as compared to the other companies lying at 50% for both The Good Guys and JB Hi Fi. From the statistics, it can be evident that although Harvey Norman has been able to gain competitive advantage, the other two companies are also not far behind and have been equally influencing the market in respective of the purchasing behavior of the customers.
|
Heavy usage index |
|||
|
Harvey Norman |
0.361319181 |
||
|
The Good Guys |
0.351416544 |
||
|
JB Hi Fi |
0.287264275 |
||
Table 6: Heavy usage index
Source: Created by author
From the analysis of the above table, it can be evident that the heavy usage index or the relative purchase of the products of the customers form the companies has been the maximum for Harvey Norman and the least for JB Hi Fi. However, from the analysis of the statistics related to the companies, it can be evident that there still exists serious competition among the three companies in the market with the customers being unable to decide on the reliability of the companies.
From the analysis of the survey data, it can be found that Harvey Norman has been leading the market and has been the most popular among the customers as evident from its performance. In comparison with the other competitive companies, JB Hi Fi has been the least consistent in its performance in the market. The company needs to plan and implement appropriate strategies within its business processes such that to increase its market share, penetration share, usability index, and relative market share. Moroever, the company also needs an urgent requirement of raising its standards such that to be able to influence more customers in respective of their purchasing decisions.
Although the results show the rank of JB Hi Fi to be low, the statistics reveal that the other two companies are in tough competition with the company and have also been impressive in their performances at the competitive level in the market. Thus, for JB Hi Fi to be gaining market recognition , it should be determining the opportunities and exploit on the same to remain sustainable in the market in the future.
The company has been influencing the purchasing decisions of its customers through its quality products. Hence, it should be maintaining the quality of its products in order to remain competitive in the future as well (Homburg, Stierl and Bornemann 2013).
The company should be implementing an appropriate retention polices in order to retain its customers in the future. By raising the standards of its produictrs and services, it should be able to attract more customers in the future.
Conclusion
The project aims at conducting a marketing study on the case study organization, JB Hi Fi. The company, JB Hi Fi is a retail store that deals in supplying electronic equipments to the customers. The project deals in analysing the market situation of the company in respective of its competitors. The project would also be helping in identifying the opportunities associated with the process such that to exploit on the same. This project would be helpful in analysing the data about the marketing sector related to the company from the market. It would also help in developing recommendation for the current situation for the company such that to gain competitive advantage over its competitors that has been operating in the market. The main objective of the study is to make the company competitive such that to remain sustainable in the market.
References
Buoye, A., Komarova Loureiro, Y., Kabadayi, S., Nejad, M.G., Keiningham, T.L., Aksoy, L. and Allsopp, J., 2016. Is Share of Wallet exclusively about making customers happy or having more customers? Exploring the relationship between satisfaction and double jeopardy. Journal of Service Management, 27(4).
Homburg, C., Stierl, M. and Bornemann, T., 2013. Corporate social responsibility in business-to-business markets: How organizational customers account for supplier corporate social responsibility engagement. Journal of Marketing, 77(6), pp.54-72.
Jang, S., Prasad, A. and Ratchford, B.T., 2016. Consumer spending patterns across firms and categories: Application to the size-and share-of-wallet. International Journal of Research in Marketing, 33(1), pp.123-139.
jbhifi.com.au, (2016). JB Hi-Fi | Australia’s Largest Home Entertainment Retailer. [online] Jbhifi.com.au. Available at: https://www.jbhifi.com.au/ [Accessed 16 Aug. 2016].
Pilling, B.K., Rigdon, E.E. and Brightman, H.J., 2012. Building a Metrics-Enabled Marketing Curriculum The Cornerstone Course. Journal of Marketing Education, 34(2), pp.179-193.
VanAuken, B., 2014. Brand Aid: A Quick Reference Guide to Solving Your Branding Problems and Strengthening Your Market Position. AMACOM Div American Mgmt Assn.
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