Market Environment Analysis: Micro Trends

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Market Environment Analysis –Micro Trends
The micro environment is one which is close to a company and influences its ability to serve its consumers. It includes competitors, consumers, the company itself, firms in its market channel and customer markets (Law, 2009). Here, the two trends that affect Masters the most would be the Competitors and the consumers.
According to Magner (2014), the Australian Hardware retail market is rather competitive with nearly 56.3% of its revenue being generated from the top 4 players. Bunning’s has a significant influence over the market and is the industry’s largest player. Masters Stores has employed rapid expansion to challenge this. A sure way for Masters Stores to triumph over Bunning’s is to provide a greater consumer value and satisfaction. Hence, they must do more than adapt to consumer needs. They must also gain a strategic advantage by positioning their offering strongly against what their competitors can offer (Kotler, Armstrong, Agnihotri and Haque, 2010)
Another important micro trend would be the Consumer. Throughout the process of Marketing, the main emphasis always falls onto the consumers as they are the most important actors in the company’s microenvironment. The entire aim of the marketing process targets the consumers need and aims to forge a sound relationship with them (Kotler et all, 2010). Masters must focus on generating commitment and trust from its consumers. These attributes ultimately result in loyalty, and therefore are a strategic goal and a sure source of profitability in the long run (Miquel, Caplliure, and Adame, 2014). The success of marketing warfare has lessened at the retail level due to the rise of independent consumers. They are not in a state to be “controll...

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...competitive advantage that is serving it well. Since its complete expansion plan is set to be completed in the next 5 years, Masters could also delve into aspects of technology like implementing the use of RFID tags on consumers who frequent the stores. This would greatly help with inventory optimization as well as help Masters serve their consumers better.
As stated earlier, the employees are a key to the success of an organization and play a vital role whilst providing service to the consumer. Masters has already provided a pleasant shopping experience through its welcome environment. An employee who is able to get the consumer exactly what they want in a timely manner and the most efficient way would enable the consumer to have a perfectly satisfying experience at Masters and this would encourage brand loyalty as well as do good for the reputation of Masters.

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