The paper "Myer Strategy Gaining Traction" is a perfect example of a Marketing Case Study. Myer has been able to use a differentiation strategy with a focus on the product lifecycle for a long period. This is through maintaining multiple product lines with the targets on the upper and lower-middle class. There is minimal focus on the other segments. The main focus for a long time has been on asset turnover. Despite this, the increasing competition in the Australian retail market has led to price battles. The market has seen sliding sales and increasing costs.
Myer has tried to dominate the price-sensitive market segments. This is through lowering the price and still trying to be competitive. The business has worked hard to enhance the customer experience and retain its market position. Moreover, the business has reduced the big range of exclusive and private label brands and introduced high-value brands and made concessions on the margins. These changes have led to business which is more customer-focused and localized. The main focus is to differentiate the brand from the competitors and lead in customer service (Bartholomeusz, 2017). David Jones David Jones is a major competitor to Myer.
The store main target has been the high-income group. They have been able to maintain a strong differentiation strategy. The business has sought niche differentiation as a top retailer of the good performing products in the target market. There is minimal focus on other segments and high investment in research and development. As most of the business in the retail industry, there is a high focus on asset turnover. The retailer has been able to retain the premium customers and at the moment is a leading branded department store in Australia.
Through their strategy, it has been possible to address the competition in the market. This is through an expansion of the private label brands in their portfolio. Target Australia Target Australia started as a niche differentiator. This is through efforts to be well known as a top seller for the high performing goods in each of the target segments. The business has been having multiple high-end segments with minimal focus on the low-end segment. Despite this, target started stocking low costs good which were a deviation from being a niche differentiator.
This is in response to market forces. Despite this, the business has not been doing well. Perceptual Map & Brand Differentiation High quality of overall service Premium pricing value pricing Low quality of overall service In the Australian retail market, Myer is arguably doing well based on the level of competition and the quality of goods and services offered. The next section will look at the way in which Myer is positioned in relation to other competitors. Myer has been able to maintain reasonable prices in the market compared to the competitors.
The variety of brands at affordable prices gives consumers a lot of choices. Myer has been able to differentiate itself from competitors through superior services and competitive prices. David Jones has set a benchmark on the quality of its products and has maintained a premium pricing strategy. They differentiate themselves with unique products from private labels brands and high customer satisfaction. Target has developed an interest in the lower customer segment although their main focus is on the middle class. Target sets itself apart from competitors through quality products at reasonable prices (middle-priced). Although Target and Myer have almost similar pricing, Target lags behind in customer service.
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Knight, E. 2017. British department store John Lewis to tie up with Myer in Australia. [online] The Sydney Morning Herald. Available at: http://www.smh.com.au/business/retail/british-department-store-john-lewis-to-tie-up-with- myer-in-australia-20160715-gq6bea.html [Accessed 13 May 2017].
Wilson, K. 2017. Myer partners with Brit brand Topshop. [online] NewsComAu. Available at: http://www.news.com.au/entertainment/celebrity-style/myer-partnership-to-bring- topshop-into-20-stores-across-australia/news- story/efc09b5caccd2eed26e665f83f63995a [Accessed 13 May 2017].