Essays on Positioning Strategies In A Mature Marketplace Case Study

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The paper "Positioning Strategies In A Mature Marketplace" is a perfect example of a Marketing Case Study. According to Rose (2007), Australia is at present both the 19th largest importer and exporter in the world. It is also the 12th biggest economy in the world. The Australian dollar has, over the past two years, floated near parity with the U. S. dollar. However, it has currently fallen to nearly 0.9 per U. S. dollar. Inflation rate hovers around 2.5%, and it is expected to be contained at that level. There are signs of upturns in gift-giving businesses although the levels of consumer spending appear to have remained relatively average for long.

Importantly, online business activities have risen by nearly 27% compared to the 0.4% increase in the traditional retail business sales (IBIS World 2016) The Australian gift and home-ware industry is diverse and competitive. It is composed of numerous small to medium, specialized gift-giving businesses struggling for market share with larger merchandisers. However, major players include the Brandconnect, Gifts Australia, RedBalloon, and Bindle among others. In terms of growth, the industry can be described to be at a mature stage of its life cycle, and the heightened, aggressive retail climate has seen many companies resort to consolidation as means to expand their market shares.

According to IBIS World (2016), specialty gift products account for nearly 35% to 45% of all gift sales in Australia, with the balance made up via supermarkets, departmental stores, and other retail businesses. Niche operators also aim to establish themselves within the market by stocking novelty or specialized products (De Brito, Carbone & Blanquart 2008). This move is a valuable addition that can result in elevated profit margins to online gift providers like Bindle.

Additionally, an increase in the strength of the Australian dollar has boosted demand for online retail businesses, specifically for imports. This has subjected many companies with a new challenge since consumers get products directly from the manufacturers to evade paying higher prices. Bindle is an Australian company that deals in a boutique gifts business (Bindle 2016). The company was founded in 2012 with a mission to impress consumers through superior styles, designs, quality, and presentation. It is committed to supporting and celebrating local growers and designers.

Packaged with exceptional styles, Bindle gifts boxes are designed around particular occasions and concepts. Every occasion is accompanied by its own bindle and the choice of products to be included within a given bindle is sought carefully. The Corporation provides a diverse range of tailored and specialty gift products. These include gift hampers, loyalty gifts, event gifts, baby gifts, bespoke gifts, wedding & event favors, birthday and occasional gifts, settlement gifts as well as corporate gifts. The company’ s corporate gift-giving service has been in a way to assuage stress linked to gift purchases for clients and employees. Based on the projection of industrial growth over the four years through 2019-20, the company hopes to expand its market share by introducing a new product.

The company bases its decision on the BCG matrix analysis which is indicative of a strong portfolio within the Australia markets (Teryima & Aondona 2014). The increased market growth rate is suggestive of more earnings which can translate into profits. Therefore, to maintain or expand future market share, Bindle has to invest.


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