Market Analysis

Written Report

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Word Count 2446

Executive Summary

Wesfarmers is headquartered in Western Australia that operates with more than 10000 employees. It has branched out from apparel to fertilisers. The market analysis will study its external and internal environment to identify potential strategies. Among all its product categorisation including clothes, office supplies, safety products, health, beauty, and wellness it will majorly focus on the ‘chemicals, energy, and fertilisers’ segmentation. Using marketing tools, Wesfarmers’ market strategy to fulfil customers’ needs and providing competitive goods and services will be thoroughly studied. The use of STP analysis, Porter 5 Forces and SWOT analysis will to assess Wesfarmers’ fulfilling work environment and corporate issues. With appropriate and effective recommendations, the organization will be able to produce, supply source its Fertilisers and chemicals ethically and sustainably to the target market.

Table of Contents

Introduction. 3

Overview of the Organization. 3

Market situation analysis. 4

Market segmentation. 8

Recommendations. 10

Target market recommendations. 10

Positioning recommendations. 10

Conclusion. 11

References. 12

 

 

 

Introduction

 

In 1914, the Western Australian farmers’ cooperative was established. Since then, the organization has evolved to become one of Australia’s largest publicly traded enterprises with a revenue of 6.8 billion (Wesfarmers).  The growth is effective, influential and competitive among diversified commercial operations. It is important to evaluate how supporting the communities in the organization is currently operating. Also, it is important to examine the organisational value and caring for the environment. Using marketing tools, the study will be assessing the organizational role in developing and producing ‘chemicals and fertilisers’ with integrity, sustainability, responsibility and honesty.

Overview of the Organization

 

WesCEF (chemicals, energy and fertilisers) is exported oversees that creates a strong portfolio of outstanding, sustainability, collaboration and long-term enterprises in international markets. The primary focus is ‘fertiliser’ that is recognised as safe, environment friendly, dependable, and creative by several leaders. This segment has 1,300 varied and talented team members who are dedicated to satisfying the demands of the customers (domestic, national and international).

The CSBP Limited is a subsidiary of Wesfarmers Limited. It segments its products a fertiliser and chemicals (Wesfarmers Chemicals, energy and fertilisers). The firm is headquartered as a subsidiary in Kwinana, Western Australia. It is named WesCEF, serving as the organization’s conglomerate’s industrials business.

Figure 1: Subsidiaries of Wesfarmers

Source – (Wesfarmers Chemicals, energy and fertilisers)

 

In major parts of Australian agriculture industry, it is the CSBP Fertilisers that are used. The subsidiary is responsible for manufacturing, exporting, importing, and distributing nitrogen, phosphate and potassium-based fertilisers that are eco-friendly and affordable. The fertilizers are in blended form. It is available both compound and liquid form. Using the fertilizers, the agricultural industry of Australia, especially Western Australia is benefited. The farmers in regional WA are befitted by the NUlogic interpretation approach and strong supplying network (Wesfarmers Chemicals, energy and fertilisers).

 

Market situation analysis

“The key of success is sustainability” according to Wesfarmers. In the production of chemicals and fertilizers, the organization has focused on understanding and controlling the minerals and chemicals used that are not harmful or the environment. They intend to operate in order to continue producing value in the future and safeguard the natural ecosystem.

Current market of Wesfarmer’s Fertilisers

 

The CSBP manufactures and provides fertilizers, ammonia, industrial chemicals and ammonium nitrate for Wesfarmers. As Australian agricultural industry is wide and serves majorly to the economy, it ensures that they are resourceful, eco-friendly, less harmful and affordable. The fertilizers and chemicals are also hugely purchased by the industrial sectors of Western Australia accounting to higher profitability (Jones et al. 2014). Both b2c and b2b market segmentation results profitable.

Figure 2: WesCEF investment

Source – (Sustainability, WesCEF)

Currently, the Ammonium nitrate is also supplied by CSBP in broken bulk shipments. They have an intricated supply and distribution channel both domestically and internationally. The CSBP Fertilisers manufactures has been importing and distributing popular potassium-based fertilisers in blended gorm. The compound form has raised its profit outcome in the industrial sector (McLellan, 2014).

The subsidiary provides monthly complete soil and plant analysis services to the organization. It also takes into farmers account in regional WA. This help in maintaining a unilateral measurement that is backed by the NUlogic interpretation approach. It provides how the soil and plant are responding to these fertilizers. This strategy has allowed WesCEF and CSBP to build a network of personnel and approved partners and gain trust from its regional customers (McLellan, 2014).

 

SWOT Analysis

 

Wesfarmers’ has huge potential to stand out in international markets with Corporate Social Responsibility, Sustainability and SDGs. The impact of the administration’s regulations and policies are attuned with environmental safeguards. The current growth and upcoming opportunities of Wesfarmers will accelerate the market development in regional, national and internal markets.

Strength

 

  • The organization believe that Wesfarmers believes that sustainability is an awareness that is not only a responsible for businesses but people. They not only allow their products to be eco-friendly and reusable but also arises awareness among all. They lay positive influence in the people and surroundings in which they are currently operating in order that will add value in the future.
  • It covers the largest Australia Ammonia Market. They have been able to produce with greater growth and expansion than competitors in the market.
  • The organization has a history that dates back to 1914. It not one of the Australian leading brands in 21st century.
  • They have set priorities to community development projects and environmental safety.
  • Their team are providing ease and excellent client service to customers and other businesses.
  • They have a large number of stores that operates with in-store personnel, skilled and professional managers and employees, robust workforce. Together they aim at high quality and performance.
  • They have built customer loyalty and trust through promotional offers and discounts.
  • WesCEF has online sales which are easily booked with secure payment and delivered across various regions of the world.
  • The fertilisers and chemicals have a wide range of pricing ranges
  • The WesCEF is providing nutritional service offerings for farmers at an affordable range (Shekhada, 2019). It is through a network of skilled employees and accredited partners that they are successfully ruling in regional Western Australian markets.

 

Weakness

 

  • The brand’s weakness is that its chemicals and fertilisers are constantly scrutinised for each crucial move they make.
  • There is insufficient geographical presence due to limited experience in Australia. WesCEF is dependent in of export in international market for higher revenue.
  • There are WesCEF’s goods that are dangerous by nature of their business production. They are often carried in large quantities to a variety of sites both locally and foreign which requires proper packaging and monitoring.

Opportunities

 

  • WesCEF has a potential geographic growth in regards to its product enhancements and extend beyond Australia.
  • They can raise the quality, service, and customer experience standards across businesses in the international markets.
  • WesCEF need to focus on the enterprise-wide employee recruitment.
  • It may introduce customer loyalty programmes.

 

Threats

 

  • Among other product ranges, it is the competitors that pose a danger to its chemical and fertiliser unit. As Australia does not have potential market, it is dependent in the international market.
  • There are economic slump, different policy and laws in international countries that are resulting in decreased customer confidence and weaker demand for the WesCEF.
  • There are competitors who provides specialised products and services at reasonable prices.

 

Porter 5 forces

 

Competitive rivalry

 

For Wesfarmers, it is Kmart and Target that are its key retail brands or strong subsidiaries. The industrial segment of Wesfarmers includes partnerships with companies CSBP Fertilizer, QNP, Australian Vinyl, Gold Reagent ad others (Shekhada, 2019). They have successfully restricted competition in the chemical, energy and fertiliser unit. Also, with its sustainable and safety products they are the highest selling brand. For Wesfarmers, Woolworths and JB Hi-Fi Limited are most prominent competitors.

Threat of substitutes

 

The retail sector is extremely competitive all around the world which becomes a threat for WesCEF. As it has less market entry in Australia, the competition in international market is high.

Figure 3: Contribution to environment by reducing carbon emissions and operational waste

Source – (Wesfarmers annual report)

In Australia, Wesfarmers competes with the Woolworths group which restricts any competition from smaller units. There is a modest advantage over its competitors due to its diverse product offerings and global presence (Banerjee,  2022). Also, there are less companies who are producing environmental safety products. They have a strong CSR and Sustainable goals.

 

Threat of new entrants

 

The start-up has to compete with existing business giants like Wesfarmers and Woolworths that has a strong market share. There are various online retail outlets of WesCEF that are increasing at an exponential rate. With the online or internet shopping section the organization has seen remarkable growth. There is an increasing the reliance on technology in retailers that makes competing with Wesfarmers is difficult. Also, the brand’s credibility and heritage quicken the response to market demands (Lodhia et al. 2022).

Bargaining power of buyers

 

Wesfarmers is known for its diverse product line that attract consumers from various regions. Maintaining sustainability also keep them engaged in building client base.  It helps them to caters to a greater number of individual consumers through diverse product lines while maintaining without negotiating power (Assainar et al. 2018). With the mass purchaser (consumer and business) they will have more bargaining power strengthening globally diverse portfolio.

Bargaining power of suppliers

Wesfarmers is supplying to a massive population. WesCEF’s material’s supply chain is quite long.  Therefore, the supplier does not have a greater effect with little bargaining power.

 

Market segmentation

 

Segmentation

B2C

It is observed that WesCEF maintains a high level of control over its goods and transportation operations. In the regional base its premises have a level of control on the road users, transport, supply and environmental conditions. They have employed specialised chemical transport providers with certified permits to transport hazardous materials that will reduce any damage to the society. They have strong transport management plans for all Australian routes towards its customers. They have increased delivery to 90% of international destinations are in place for its sodium cyanide goods and fertilisers (Shekhada, 2019).

B2B

It is gathered that Kleenheat and CSBP Fertilisers collaborated to aid Kalbarri inhabitants and other villages affected by Cyclone Seroja in April This has strengthened their prominence in regional and global market (Meyer et al. 2020). They have been donating gas cylinders to the evacuation centre residents and providing staple products for sustenance. They are known for organising staff volunteers to help restore agricultural fences and other possibilities.

In 2021, there is a Visible Farmer Study Guide established by the WesCEF. It is based on the award-winning Visible Farmer film project’s 15 episodes that has accelerated their repute.

Their business have grown mainly due to its WesCEF”s ‘environment and youth education’  in 2021 that brought two large community collaborations (Banerjee,  2022).

Target Market

 

The organization holds strong industry advocates that have been identified in shipping, specifically crew welfare. They are targeting regional base and foreign countries to explore new opportunities. With the introduction of the CSBP Coastal Connections Challenge the organization has culminated in June 2021. They are more focused on solutions to real environmental issues affecting the coastal environment that have strengthened their international exports (Banerjee, 2022).

Currently, there are 7 subsidiaries working effectively for WesCEF while Kleenheat collaborated with Scitech to help local primary school teachers better understand the knowledge of STEM. It is the Science, Technology, Engineering, and Mathematics that have modified the curriculum and develop practical STEM lesson plans for all (Basil et al. 2019). These collaborations stand effective in promoting WesCEF to all sections of society.

Positioning

The Wesfarmers’ CEF industry has launched a push to dispose of leftover catalyst from its manufacturing process. With the company’s efforts at several disposal methods, including recycling it reflects on a continuous improvement attitude along with WesCEF’s regulatory compliance.

The elements of value

 

  • The organization is committed to taking initiatives that will help to achieve the key goals of the Australian Modern Slavery Act 2018. WesCEF primary has added value to its portfolio but abiding the Act of 2018 it has allowed them to contribute in reducing the risk of modern slavery arising in the current businesses and supply chains. They are acting as role models for ethical sourcing.
  • They are influential in spreading awareness that modern day slavery has serious ramifications for all. It will distort global markets creating an undercut good company that will bring major legal and reputational threats in regional and international markets.
  • WesCEF’s has strengthened its ethical sourcing and human rights in the fiscal year of 2021. This has allowed them to gain notoriety in the expansion of its knowledge base. Likewise, the establishment of a defined operational structure has made them aa risk-based strategy (Nadube and Didia, 2018). With strong and qualified team, they are assessing its suppliers as well as the kind of goods and services acquired.

Evidence-based decisions on creating value for customers

 

The WesCEF is focused on the 17 SDGs. It has been able to strengthen its customer loyalty and base by providing a wide sustainability agenda. The aim of the production of ammonia, chemical and fertiliser is centred on the need to spread sustainability, provide high quality and organic product and address climate change. There have been potential outcomes that are observed by regional people from Australia. The farmers are therefore dependent on its high-end fertilisers.

Figure 4: Strategies incorporated by Wesfarmers

Source-(Wesfarmers)

With its intention to bring together a diverse variety of subsidiaries like CSBP they are able to establish objectives and ambitions for sustainable development activities around a common framework that build loyalty in the target market (Nadube and Didia, 2018). With CSR and SDGS, they can be acknowledged in attaining them. Soon, they can be the greatest global effect due to the nature, target and mission of the company.

Recommendations

 

Target market recommendations

  • The WesCEF need to focus on continuous improvement to the ongoing evaluation of its process safety performance in regards to fertilisers in international markets.
  • There is a necessity to conduct an internal audit of its existing safety measures in international market. Weather, climate and soil vary from place to place. Therefore, it is necessary to confirm that the fertilisers provide good results taking differences of soil weather and climate of other countries.
  • The WesCEF need to maintain a strong legal and other international facilities like handling, supplying, storage and distribution.

Positioning recommendations

  • They need to focus on a circular economy that will them to examine project options such as reusing by-products and supplying by-products and garbage to other sectors in international sector.
  • WesCEF holds additional prospects for carbon reuse and sequestration in regional and foreign base. It will allow them to tie up with other countries towards the development of new fertiliser products.
  • WesCEF need to strengthen feasible circular economy projects in different countries. Their will act as a pilot trial to evaluate proposed waste reuse technologies and sustainability by 2025.

 

Conclusion

The WesCEF is a strong subsidiary unit that employs around 1,400 people for production, manufacturing, selling and packaging. Across the country, they have a large market enough to provide them a strong and meaningful portfolio. As the target market for WesCEF is small, the work of the employees is focused with duties while being small enough to recognise the importance of their productivity. With strong communication and strategy team work they remain committed to company’s success. As the headquarters is located in Murdoch, Western Australia, and are manufacturing and producing products (chemicals, fertilisers) in Kwinana allows the organization to have a great profession, monitoring and segmentation while living in the city. There is no need for fly-in, fly-out (FIFO) for Wesfarmers. Successfully, it is wide range of products and subsidised companies have restricted competition in regional and rural Western Australia. They are ruling in the Northern Territory, Victoria and Queensland with high selling fertilisers.

 

 

 

References

Nadube, PM and Didia, J 2018, ‘Market_targeting_and_strategic_positioning’, International Journal of Marketing Research and Management, vol. 8, no. 1, pp. 32-45.

Basil, DZ, Diaz-Meneses, G & Basil, MD (eds) 2019, Social Marketing in Action: Cases from Around the World, Springer International Publishing AG, Cham.

Banerjee, S. 2022. A Review on Strategic Analysis of Australian Supermarkets. Journal of Production, Operations Management and Economics (JPOME) ISSN 2799-10082(06), 36-45.

McGraw, P., & Dabski, S. 2010. Corporate social responsibility reporting in Australia’s largest companies. Labour & Industry: a journal of the social and economic relations of work21(1), 390-409.

Jones, P., Comfort, D., and Hillier, D. 2014. Environmental and Social Programmes and Rapidly Growing Retailers. Economia Seria Management17(1), 5-17.

McLellan, B. C. 2014. Streamlining the use of legislated reporting to move to’life of project’sustainability reporting. International Journal of Mining and Mineral Engineering5(1), 19-37.

Rezaei Vandchali, H. 2019. Managing relationships to improve sustainability in the supply chain network for Australian food retailers (Doctoral dissertation, University of Tasmania).

Andrew, N. L., and Wickham, M. 2010. The voluntary CSR disclosure in corporate annual reports: Evidence from Australia. Corporate Ownership & Control8(1), 49-55.

Sustainability, WesCEF. (2022, September 30). Retrieved November 14, 2022, from https://wescef.com.au/sustainability-section/sustainability/

Delivering value Today & Tomorrow. Wesfarmers. Retrieved November 14, 2022, from https://www.wesfarmers.com.au/

Reports. Available at: https://www.wesfarmers.com.au/investor-centre/company-performance-news/reports (Accessed: November 14, 2022).

Wesfarmers.gcs-Web.com. Available at: https://wesfarmers.gcs-web.com/static-files/6fb0ff83-6929-4068-97eb-2d752e4ccd4b/?auth_token=f77014b8-a01a-4d5c-a2cb-28689c3d3c5d (Accessed: November 14, 2022).

Wesfarmers Chemicals, energy and fertilisers. Available at: https://www.wesfarmers.com.au/our-businesses/wesfarmers-chemicals-energy-and-fertilisers (Accessed: November 14, 2022).

Assainar, S. K., Abbott, L. K., Mickan, B. S., Whiteley, A. S., Siddique, K. H., & Solaiman, Z. M. (2018). Response of wheat to a multiple species microbial inoculant compared to fertilizer application. Frontiers in Plant Science, 9, 1601.

Meyer, G., Bell, M. J., Doolette, C. L., Brunetti, G., Zhang, Y., Lombi, E., & Kopittke, P. M. (2020). Plant-available phosphorus in highly concentrated fertilizer bands: effects of soil type, phosphorus form, and coapplied potassium. Journal of agricultural and food chemistry, 68(29), 7571-7580.

Shekhada, D. (2019). Utilization Strategy and Management of Green Waste to Improve Wasteland Fertility in Australia. International Journal of Environment, Agriculture and Biotechnology, 4(1).

Lodhia, S., Kaur, A., & Kuruppu, S. C. (2022). The disclosure of sustainable development goals (SDGs) by the top 50 Australian companies: substantive or symbolic legitimation?. Meditari Accountancy Research, (ahead-of-print).

 

 

FEED BACK FROM PROFESSOR

 

Aim of an Executive Summary | Criterion 7

I appreciate your attempt to write an ES but this executive summary read more like an

introduction – it was a lead-in to the report, rather than a summary of it, which meant that it

only achieved part of what it needed to. The aim is to provide an overview of the assignment

(for the time-poor reader) and draw the reader into wanting to read the ‘full version’ of your

report.

PAGE 3

Sub-Headings | Criterion 7

It is a good idea to include sub-headings in your TOC. Eg 5Cs – company, context etc

PAGE 4

Comment 1 | Criterion 6

This citation is incomplete, please include a year.

References are needed. | Criterion 6

References are needed to all your statements of fact about your organisation here and

throughout your report, e.g. to a website, annual report, and/or other documents such as

marketing collateral.

Comment 2 | Criterion 7

Please do not include diagrams in an introduction

PAGE 5

Some improvement is needed. | Criterion 7

Your introduction provides good background information. However, the tasks were to

analyse the current market situation, segment the market for your identified product and

provide a justified recommendation for the selection of a target market segment that will be

the focus of your capstone assessment. Your introduction should include a statement of

purpose that introduces what you will be discussing in this report.

PAGE 6

QM

QM

QM

QM

Comment 3 | Criterion 7

This is all very interesting but too much information about the organisation.

Comment 4 | Criterion 2

The purpose of the situational analysis was to discuss and implement a framework Eg

Porter’s or 5Cs – this should occur before the SWOT as this provides the research that

guides your SWOT. Your discussion thus far is lacking in theoretical context.

Purpose | Criterion 2

The purpose of this paper is to consider the situational frameworks you might use and why

you would use them. You want to ask questions such as Where are we now? Where do we

want to be? Can you give some justification as to why you might adopt the SWOT framework

Strengths | Criterion 2

Strengths are things that your organisation does particularly well, or in a way that

distinguishes you from your competitors. Think about the advantages your organisation has

over other organisations. These might be the motivation of your staff, access to certain

materials, or a strong set of manufacturing processes.

SWOT | Criterion 2

From a theoretical perspective, the situation analysis is to interpret and analyze the

information generated from the 5 C’s Analysis (or Porter’s Five Forces Analysis) and then to

extract the strategic implications for the business. The goal of a SWOT is not just to develop

a list of dot points but to be able to cull down and pinpoint the most significant, pressing,

strategically important internal and external conditions facing your business.

Comment 5 | Criterion 2

Please be mindful of the word count, which are the three key strengths (again, too much

information).

Comment 6 | Criterion 6

References??

PAGE 7

Weakness | Criterion 2

Weaknesses are the internal things within an organisation that are sub-optimal. That is,

considering things such as people, processes, systems, and resources, what could be

improved upon?

QM

QM

QM

Comment 7 | Criterion 2

This assignment requires you to analyse one market. Therefore, expansion into an

alternative market should not be part of this discussion.

Comment 8 | Criterion 2

Based on what? What did your analysis identify?

Threats | Criterion 2

Threats are the external obstacles your organisation faces, or is likely to face, in getting your

product to market. For example, supply chain issues, human resourcing shortages, Corona

virus etc

PAGE 8

Comment 9 | Criterion 2

What is the level of rivalry amongst competitors? High? Low?

Comment 10 | Criterion 2

Substitute products form part of consumer choice in almost all markets. Are there any

substitutes that need to be considered?

Comment 11 | Criterion 2

Potential new entrants in an industry increase competitive rivalry. How easy is it for

competitors to enter the industry?

PAGE 9

Comment 12 | Criterion 2

What does all this mean? what is the overall outcome of the analysis – given the five forces,

how attractive is this industry?

An introduction is needed here. | Criterion 1

It would have been good to see an introduction here to the theory of market segmentation.

Variables | Criterion 3

What are the bases and variables for segmenting B2C markets Eg Geographic,

Demographic, Psychographic, Behavioural, etc

Comment 13 | Criterion 3

QM

QM

QM

For the purpose of this assignment, are you proposing to focus on B2C or B2B?

Effective Segmentation | Criterion 3

Useful market segments must be:

Measurable: The size, purchasing power and profiles of the segments can be measured.

Accessible: Able to be reached and served efficiently.

Substantial: Segment size is profitable.

Differentiable: Segments are conceptually different and respond to different marketing mix

elements.

Actionable: Effective programs can be designed to serve segments.

Comment 14 | Criterion 3

Please review the segmentation process and identify which variables you are proposing to

implement.

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Please identify a single target market more clearly. | Criterion 3

To help further with your Persona for the purposes of the Capstone Assessment, I suggest

you need to identify more clearly a single target market segment. You will then develop a

persona for this target market segment, analyse the marketing mix and evaluate it against

the persona (who represents your target market segment) and make recommendations for

improvement.

Positioning | Criterion 4

Positioning defines where your product (item or service) stands in relation to

others offering similar products and services in the marketplace as well as the mind

of the target market. A perceptual map is a tool that you could have used here to

demonstrate the positioning in consideration of competitors.

Comment 15

Good to see a link to the scholarship article.

PAGE 11

Comment 16

It is not clear what this section has to do with a target segment? Which group are you

proposing to target?

PAGE 12

Comment 17 | Criterion 7

You have provided a lot of information that was not required. Please read the assignment

instructions and stick to the requirement.

PAGE 13

Comment 18 | Criterion 6

In your next assessment, I suggest you work on presenting them in a more consistent format

as per the AIB Style Guide.

Comment 19 | Criterion 6

Your reference list should be in alphabetical order

 

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