Bunnings Warehouse Communications Strategy
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BUNNINGS WAREHOUSE COMMUNICATIONS STRATEGY ANALYSIS JUNE 2018 FRANCES GUASTALEGNAME 698669 The University of Melbourne PUBL90004 Business and Professional Communications 2,492 words Frances Guastalegname 698669 TABLE OF CONTENTS Executive Summary………………………………………………………. 3 Introduction……………………………………………………………...... 4 Communications Strategy Analysis……………………………………... 5 Television Adverts………………………………………………..... 6 Social Media……………………………………………………...... 8 Recommendations………………………………………………………… 10 Conclusion……………………………………………………………….... 10 References…………………………………………………………………. 11 Appendix…………………………………………………………………... 12 2 Frances Guastalegname 698669 EXECUTIVE SUMMARY This report analyses and evaluates the current communications strategies of the brand Bunnings Warehouse. An introduction of Bunnings is provided as context for the reader, considering the brand’s three strategic pillars of lowest prices, widest range and best service. An analysis of two of the brand’s current communications strategies is conducted, providing a description and evaluation of Bunnings’ current television advert campaigns, as well as the brand’s current online social media presence. The evaluation considers both benefits and missed opportunities for Bunnings through these two strategies, and concludes to recommend a shift towards an integrated marketing communications approach for the Bunnings brand. Overall, the report finds that although Bunnings Warehouse operates as a market- leading retailer, there is opportunity to improve communications efforts between the brand and its key consumers segments. 3 Frances Guastalegname 698669 INTRODUCTION Bunnings Warehouse (Bunnings) is the leading home improvement retailer in Australia and New Zealand, supplying hardware essentials and outdoor living products to tradespeople, commercial businesses and do-it-yourself (DIY) enthusiasts (Bunnings Warehouse 2018). As of 31 December 2017, Bunnings employs more than 40,000 team members, and operates from 253 warehouses, 77 small format stores, 33 trade centres and three frame and truss sites across Australia and New Zealand (Bunnings Warehouse 2018). Between 2016-18, Bunnings expanded into the United Kingdom and Ireland (BUKI) markets, piloting 15 BUKI stores and continuing operations of a further 324 Homebase stores with propositions to rebrand (Bunnings Warehouse 2018). However, Bunnings’ parent company Wesfarmers announced the closure of BUKI stores in late May 2018, due to an inability to build and maintain favourable customer relationships in the international market (Hatch 2018). As Australia’s market-leading home improvement retailer, Bunnings possesses a market share of 35.2% within the hardware and building supplies industry (IBISWorld 2018, p. 23). The brand’s primary competitors of Mitre 10, True Value Hardware and Home Timer and Hardware all possess a combined market share of less than 5%, highlighting Bunnings’ superior position as a substantial market leader (IBISWorld 2018, p. 24). The Bunnings brand positions itself as a big-box retail warehouse, providing its customers with the widest possible range of products, at everyday lowest prices. Bunnings relies on experiential value added through employee participation and growth within the brand, so as to positively instil the brand’s primary vision of “we’re building the best, our team make it happen” (Bunnings Warehouse 2015, p. 7). Additionally, the brand places importance on its guiding values of achievement, respect, teamwork, integrity and innovation in fostering relationships between the brand, its team members and its primary target consumers – that being, tradespeople, commercial businesses and DIY enthusiasts (Bunnings Warehouse 2015, p. 7). Holistically, Bunnings identifies as a brand that is driven by community involvement and relationship building, as supported by leadership from its team members, to positively create resonance through such identity. 4 Frances Guastalegname 698669 COMMUNICATIONS STRATEGY ANALYSIS To adequately analysis Bunnings’ current communications strategies, it is important to understand the ‘three strategic pillars’ on which the brand builds all its campaigns. Lowest prices, widest range, and best service exist as the three strategic pillars on which all branding and communications efforts for Bunnings are foundered, so as to ensure consistency and reinforcement of brand purpose and vision across all aspects of communications (Bunnings Warehouse 2018). Ultimately, these pillars aim to provide Bunnings’ customers with “the best service and widest selection of products at the lowest prices every day”, and are therefore crucial within the brand’s communication strategies (Bunnings Warehouse 2018). The strategic pillar of lowest prices is primarily represented through the brand’s price- beat policy, “If you find a competitor’s lower price on the same stocked item, we’ll beat it by 10%. That’s our policy.” (Bunnings Warehouse 2018). Bunnings is able to provide lowest prices to its consumers through the use of warehouse pricing strategies as well as in store pricing departments, who monitor market fluctuating product pricing (Bunnings Warehouse 2015). All Bunnings communications strategies highlight the price-beat guarantee policy, as it exists as a branding point of difference for Bunnings when compared to its competitors, and further reinforces the brand’s primary vision and values. Widest range is a fundamental strategic pillar in Bunnings’ communications strategies, as it again highlights a branding point of difference, while further reinforcing Bunnings as a market leader due to its ability to supply to three distinctly large key customer segments. Large warehouses and small format stores range up to 45,000 different product lines, with an additional 400,000 products available to order through the brand’s Special Orders service (Bunnings Warehouse 2018). It is crucial for Bunnings to include its large stock range within its communications strategies, as consumers will more readily engage with the brand when they are aware of the benefits they receive in relation to product availability, when they shop with Bunnings. Most importantly, the strategic pillar of best service must always be communicated throughout the brand’s campaigns, as it places emphasis on the importance of always 5 Frances Guastalegname 698669 addressing and meeting the needs of each individual customer. Through thorough customer service and product training, employees on the store floor aim to provide friendly, knowledgeable and helpful service, ensuring the presence of a reliable team who can offer expert advice as a competitive point of difference for the brand (Bunnings Warehouse 2015, p. 18). It is this outstanding in store communication between team members and customers that provides substance to the best service pillar, to ultimately build customer engagement into a loyal and resonant relationship with Bunnings. Although Bunnings makes use of a number of different communications strategies to engage with and build customer relationships, this report will analyse two approaches so as to thoroughly consider the effectiveness of each strategy for the brand’s key consumer segments of tradespeople, commercial businesses and DIY enthusiasts. Television Adverts Bunnings’ television (TV) adverts campaign is one of the brand’s longest standing communications strategies, existing as a traditional form of media advertising of which Bunnings continues to use today. Fundamentally, Bunnings’ TV adverts have remained rather consistent since the campaign launched, featuring current team members highlighting the benefits of Bunnings’ lowest prices, widest range and best service (see Figure 1). Created by the brand’s in-house marketing communications and advertising teams, Bunnings’ TV adverts star current team members in their ‘home’ store, to highlight the importance of employee growth and participation in the success of the brand’s communications with its consumers. All team members featured in the adverts are encouraged to speak on a particularly topic, depending on the purpose of the specific advert, yet no formal script is written. This allows team members to naturally incorporate their experiences as store team members, and to bring to light what benefits they believe consumers should know about. Products are displayed in the adverts through Bunnings’ signature line illustrations, which also feature in the brand’s print media catalogues (see Figure 2). These illustrations exist as a unique selling proposition for the brand, and help to reinforce brand identity for the consumer. Each TV advert ends with the featured team member quoting the brand’s slogan, “Lowest prices are just the beginning. 6 Frances Guastalegname 698669 That’s our policy.” as repeated exposure to the slogan helps to reinforce brand awareness through familiarity of brand identity (Holt 2003, p. 10). Arguably, Bunnings has continued to use their well-known TV adverts primarily to maintain creative consistency in a campaign that is favourable within its target market. As mentioned above, Bunnings aims to reach three key target segments - tradespeople, commercial businesses and DIY enthusiasts, all of which are noted to respond well to these adverts as they prompt brand recall through easy identification, in turn effecting overall brand awareness (Keller 2009, p. 141). The key message delivered to these segments through the campaign remains the same across all adverts – that Bunnings can and will provide for all hardware and DIY needs because