KMart PESTEL and Five Forces Analysis

Assignment instruction

–          Assessment Description:

  • You are required to conduct a marketing mix analysis for an organization with reference to marketing management theory as covered in lectures and the textbook at write my paper 4 me.
  • The organisation this semester selected as client for assessment is the Australian discount department store Kmart.
  • you can obtain a lot of relevant information from Kmart (Australia) website and other sources without having to actually visit a branch.

o   You should represent the report as a business report as if this is a marketing analysis report submitted to Kmart.

  • The word count of the paper:
    • 2,000 words (+/-10%), excluding references and appendix (only images or tables).

–          References:

  • Use APA format for in-text referencing, and reference list

o   References should be from 2018-2020 as this is a current market analysis

  • References should include academic, trade publications, and news publications

o   You should cover most of your references from those data base sources:

  • IBIS World ReportsWARCIndustry reports, e.g. Roy Morgan, Cantar , NielsenRetail blogsNews reportsBusiness journals; ex. Mumbrella, business horizon
  •             Report Structure for your assignment should be as following: Cover page:
  1. Introduction and Background: (150 words)

Provide a brief introduction of the organisation. Use data from financial reports, current news publications, and relevant company information that you find with help of the databases mentioned earlier.

2.    Marketing Environment Analysis: (800 words)

The marketing environment consists of external forces that directly or indirectly influence an organisation. Provide a comprehensive environmental scan for the organization and indicate opportunities and threats.

  • PESTEL Analysis (External Analysis / Macro Factors ):

you should talk about all the factors under this tool, however based on the word count you can determine how many issue you can talk about under each factor, try to maximize it.

As you mention the 6 factors listed below – each factor you mention example of it and analyse it in how this is affecting the company/business and then you should end the factor by saying if it is a Opportunities and threats and why.

  • Political factor: (below are examples of issues under this factor which you should choose based on KMART AUSTRALIA search and you should reference the factor you choose):
  • Government stability and likely changes
    • Bureaucracy
      • Corruption level
      • Freedom of press
      • Regulation/de regulation
      • Trade control
      • Import restrictions (quality and quantity)
      • Tariffs
      • Competition regulation
      • Government involvement in trade unions and agreements
  • Economical factor: (below are examples of issues under this factor which you should choose based on KMART AUSTRALIA search and you should reference the factor you choose):
  • GDP
    • Growth rates
      • Inflation rate
  • Interest rate
    • Exchange rate
    • Unemployment trends
  • Labor cost
  • Stage of business cycle
  • Credit availability
    • Trade flows and patterns
  • Level of consumers’ disposable income
  • Monetary policies
  • Fiscal policies
  • Price fluctuation
  • Stock market trends
  • Weather & climate Change
  • Sociocultural factor: (below are examples of issues under this factor which you should choose based on KMART AUSTRALIA search and you should reference the factor you choose): This section should focus on consumer behaviour
  • Health consciousnes
    • Education level
      • Attitudes toward imported goods and services
      • Attitudes toward work, leisure, career and retirement
      • Attitudes toward product quality and customer service
      • Attitudes toward saving and investing
      • Lifestyles
      • Buying habits
      • Religion and beliefs
  • Attitudes toward “green” or ecological products
    • Attitudes toward and support for renewable energy
    • Population growth rate
    • Immigration and emigration rates
    • Age distribution and life expectancy rates
    • Sex distribution
    • Average disposable income level
    • Family size and structure
    • Minorities
  • Technological factor: (below are examples of issues under this factor which you should choose based on KMART AUSTRALIA search and you should reference the factor you choose):
  • Tech trends
    • New ways of producing goods and services
      • New ways of distributing goods and services
      • Basic infrastructure level
      • Rate of technological change
  • Spending on research & development
  • Technology incentives
  • Legislation regarding technology
  • Technology level in your industry
  • Communication infrastructure
  • Access to newest technology
  • Internet infrastructure and penetration
  • Environmental factor: (below are examples of issues under this factor which you should choose based on KMART AUSTRALIA search and you should reference the factor you choose):
  • Weather
    • Climate change
    • Laws regulating environment pollution
    • Air and water pollution
    • Recycling
    • Waste management
  • Attitudes toward “green” or ecological products
  • Endangered species
  • Attitudes toward and support for renewable energy
  • Legal factor: (below are examples of issues under this factor which you should choose based on KMART AUSTRALIA search and you should reference the factor you choose
  • Equal opportunities
    • Advertising standards
    • Consumer rights and laws
    • Discrimination law
    • Product labelling and product safety
    • Anti trust law
  • Copyright, patents / Intellectual property law
  • Employment law
  • Health and safety law
  • Data Protection
  • Consumer protection and ecommerce
  • Porter’s 5-Forces Analysis (External Analysis/Industry (competitive forces): Porter’s Five Forces is a framework for analysing a company’s competitive environment.
  • Competition in the industry – Rivalry among existing compatitors: Here you should mention the all types of competition with examples of the competitors:
  • Brand competitors: market products with similar features and benefits to the same customers at similar prices
  • Product competitors: compete in the same product class, but with products that are different in features, benefits, and price
  • Generic competitors: market very different products that solve the same problem or satisfy the same basic customer need
  • Total budget competitors: compete for limited financial resources of the same customers

below is example of how to mention them note that this example for another business not our case

Also the section should answer those questions:


How many direct or indirect competitors are there? What are the size of my competitors?

How diverse are my competitors? Industry

What is the industry growth rate? What are the strategic stakes?


How different is my product?

What are the buyers’ switching costs?

2.2.2  Potential of new entrants into the industry

the section should answer those questions

Production costs

Are there any economies of scale? What are the capital requirements? What is the absolute cost advantage? Brand

How different is the product? How strong is the brand identity? How high are the switching costs? Distribution

Is it easy to access distribution channels? What are the government policies?

2.2.3  Power of suppliers

the section should answer those questions


What are the switching costs of suppliers and firms in the industry? Is there any presence of substitute inputs?


What is the suppliers’ concentration?

How high is the concentration of suppliers? Integration

What is the suppliers’ threat of forward integration? What is the buyers’ threat of backward integration?

2.2.4  Power of customers/buyer

the section should answer those questions

Buyer‘s type

How strong is the difference between buyer concentration vs. firm concentration?

What is the buyer volume?

What are the buyer switching costs relative to the firm’s switching costs? Is the buyer capable of backward integration?


How much information does the buyer have? Are they attracted by substitutes?

How much does product differences effect the buyer? Brand awareness

How does the buyer judge the brand identity? How high is the impact of quality/performance?

2.2.5  Threat of substitute products

the section should answer those questions

What is the relative price performance of substitutes? What are the prices of my products comparatively?

Are the substitute prices stable? (increase or decrease) How high are the switching costs?

How high are the switching costs?

What are the differences relative to my products?

What would the costs incurred be to change my products? What is the buyer propensity to substitute?

What are the buyers preferences on the product category?

What are the differences regarding my products? (quality, prices)

after you mention the 5 Forces listed below – each Force you mention you should mention the level of impact , decision/status, reason of thinking that (you should mention reference of reason you chose this level of impact – Professor prefer to represent this tool as table example below

  • Marketing Mix Analysis: (950 words)

Provide a comprehensive evaluation and discussion of the organization’s marketing mix. This consists of two steps.

  • Analyse the organisation’s current marketing approach, applying marketing management theory (“What are they doing?”). You should address all elements of the marketing mix (the 7Ps).
  • Provide a critique of the current marketing mix approach and justify your analysis against specific marketing management theory (How well is the company doing it?). A good starting point for theories is the lecture slides (slides are taken from book – Principles of marketing for Gary Armstrong 7th edition), the textbook, as well as journal articles for those wishing to excel.

Since we should analyse the “service marketing” Mix, we should search for literature on service marketing and use the tool to analyse the below 7Ps. For example for physical evidence you can search for servicescape (ex. M.J. Bitner). Use her framework to analyse servicescape and then conclude if the client

performs good or bad.

Under each section below, I am trying to mention the theories that were discussed in the class. Choose the theories that are suitable to analyse Kmart Australia. You can use more than theory in each section

  • Product

classification of consumer products: Consumer products include convenience products, shopping products, specialty products and unsought products.

– Product Mix Decisions: (include this in the analysis as graph)

  • Price Theories:
  • Prices Elasticity of Demand: Inelastic demand, or Elastic demand
  • Pricing Strategies: value-based pricing, cost-based pricing, and competition-based pricing

–  Price level:

  • Demand-oriented approaches: skimming, penetration, prestige, price lining, odd-even, target, bundle, yield management)
    • Cost-oriented approaches: Standard mark-up, cost-plus, experience curve.

3.3  Place

  • Point of Purchase / Point of Sale
  • Type of marketing channels: direct channel, level 1, 2, 3

3.4  Promotion

3,5 People

  • Physical Evidance


3.7  Processes

General note for this section 3: Remember to provide support for your arguments a to what aspects of the organisation’s marketing approach may have contributed to problems, and what could have been done better. Which elements are effective and which elements are in need of adjustment? You need to be precise so do not just generalize or offer unsupported opinion.

4.    Recommendations: (250 words)

  • Provide two strategic recommendations of how the organization can improve its current situation and enhance relationships with existing customers (and potential customers).
  • Use a strategic framework for your discussion (Note: this may include Ansoff’s Growth Matrix (BCG) or Porter’s Generic Marketing Strategies).
  • For each recommendation, discuss how you would implement this strategy.
  • Explain how this relates to opportunities identified in your analysis of the external marketing environment. Discuss which element of the 7Ps extended marketing mix is the most relevant for implementing the strategy.

NOTE: this is the Ansoff matric

–       Report format:

  • Use 12 point font size with Arial, Times Roman or Calibri font
  • Use page numbers and at least 1.5 line spacing for ease of reading and feedback
  • Use 25mm (or 1 inch) margins top/bottom/left/right
  • Appendices
    • Only to be used for figures, images, and tables
    • Use headlines for all of your figures, images, and tables
  • If you adopt (“copy-paste”) any figures, images, or charts, you must provide the source

–       Other Information:

  • You don’t need to reference the theory of PESTEL, and FIVE FORCES
  • If you need to benchmark other discounted store, it should be in Australia
  • As post-graduate students you are required to undertake research and analysis of this organization with reference to marketing management theory to understand how this business has been marketed over the years. Your assignment should be much more than description or opinion – it should show evidence of research with clear reference to marketing management theory as covered in lectures and the textbook and, for high achieving students, further reading.

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