Case Analysis
The digital audit of an organisation includes an assessment of active media channels used by the company and evaluates how effective their digital marketing is (Manita et al. 2020). The main purpose of this digital audit is to discuss about the issue Wesfarmers are facing in relation to its digital strategy on the basis of interview conducted. The digital audit will provide a background information of Wesfarmers along with steps taken by company to incorporate emerging technologies and marketing practises within its marketing mix. Apart from this, the ethical issues in the digital marketing will be discussed along with evaluation of Wesfarmers digital capability. Furthermore, the key drivers and barriers to digital integration will be examined and recommendations will be provided to Wesfarmers so that they can improve their digital strategy in order to gain competitive advantage within the industry.
The selected company for this assignment is the Wesfarmers Ltd which is an Australian conglomerate and is headquartered in Western Australia. The company had a revenue of AU$30.8 billion in the year 2020 (Wesfarmers, 2022). Australia is a technologically advanced countries and every organisation has adopted to advanced technology in order to cater their customers better. Wesfarmers Ltd has focused on going digital as they have continued to invest in e- commerce as well as efficiency competences along with enhancing its backend system and processes in order to support the future growth of the company (Campbell, 2017). Apart from this, to connect with the target customers, the organisation has even implemented digital marketing strategies on the social media platforms. The emerging venture team of Wesfarmers are also searching for several digital acquisitions to enlarge the online retail presence of the group and deliver intellectual property that might help the company in boosting their digital capabilities (Coal, 2018). The primary objective of Wesfarmers is to deliver satisfactory returns to their key stakeholders with the help of strong management and financial discipline of a diversified portfolio.
This section of the assignment will discuss about the integration of emerging technologies and marketing practises from the context of Wesfarmers company. In order to analyse the current marketing practises and emerging technologies, marketing mix will be used including 4Ps; Product, Price, Promotion and Place.
Product- The company of Wesfarmers Ltd sustains products of high quality by adding value during the diverse phases of value chain process (Tarrant, 2021). The company purchases raw materials from reliable and consistent suppliers only, and these raw materials are processed under a cautious and preserved environment in order to offer a consistent and high- quality products to their customers.
Price- The organisation focuses on a hybrid strategy for their pricing in order to achieve maximum value for their products. Premium pricing is used by the company for some of its product ranges which encourages the perception of a favourable quality amongst its consumers.
Place- The company operates through both offline and online stores for offering products to their customers. In addition to this, the company even inspires sales through the social media channels where the firm directly takes orders through the messages as well as the mini shop model. In addition to this, the company also places their products in the hypermarkets and supermarkets across the region (Johnston et al. 2017).
Integration of Emerging Technologies and Marketing Practices
Promotion- The company of Wesfarmers Ltd has corporate profiles on different websites and portals of social media. These channels are used by the organisation to directly engage with their customers and attract the new ones (Mortimer, 2016). For the promotional activities, the company even offers a loyalty card program which allows the customers to convert points in exchange of exciting gifts.
There are several ethical issues in the online marketing which must be considered by the organisation as it might damage the organisation’s reputation if not handled correctly (Murphy et al. 2005). For instance: consumer privacy must be maintained by the organisation because the current use of cookies and online tracking gather data about an individual regarding their interests, where they live and how old they are. This type of data is then used by the venders to trade goods or services to their clients. However, if information is collected without the consent of the customers, then it might hamper the organisations reputation and even lead to lawsuit against the company (Chaudhry & Sharma 2018).
The company of Wesfarmers Ltd are committed to be responsible upholders of the data that they hold by protecting the privacy of customers, team members, suppliers and stakeholders and keeping them safe and secure (Rashidian, 2019). The organisation uses effective data analytics which helps them to better understand the demands and preferences of their customers and it enhances the organisation’s approach to marketing as well as to become the responsible bailiffs of their customers data (Wu, Mao & Izquierdo 2008). The organisation constantly tries to make a strong progress in quickening their digital and data capabilities by including further investment in the digital offers across several divisions. In addition to this, the company even recognise its external environment along with the expectation of their major stakeholders in regards to the use, collection and security of data and constantly evolves them.
The company of Wesfarmers has invested in the digital and data capabilities which has subsidised to the organisation’s net profit after the tax of AD$5.5 billion for the year end of 30th June 2019 (Benmedjdoub, 2019). In addition to this, the company even reported that their earnings before tax and interest was AD$6.8 billion which was a rise from AD$2.8 billion conveyed during the similar period in the previous year (Bailey, 2020). The organisation has continually focused on its well- organized approach towards the capital provision along with operational divisions which has increased their emphasis on the digital investments as well as customer offers. Apart from this, the company has even reinvested a total of AU$3 billion for advanced analytics centre which will quicken the data capabilities across different departments of the organisation (Kristoff, 2019). The organisation’s 2021 full year result observed a 50% increase in its online sales which was possible due to its digital capabilities (Chang et al. 2021).
As the company has invested in e- commerce capabilities along with technology and digital initiatives, they have been able to achieve an online sales growth of around 35%. There have been details mentioned about the digital capabilities of the organisation in enhancing the e- commerce strategies to cater their customers better (McElvogue, 2018). However, the digital marketing strategy of the company does not include much as they are majorly attracting their customers through the offline channels. The company has an active presence on its social media channels but they do not have an effective or attractive campaign through which they will be able to attract their customers in a better way. The company is well known in the regions of Australia but they have limited or no presence across the globe which might impact the global reputation of the organisation as compared to its competitors.
Ethical Issues in Digital Marketing
Some Of The Key Drivers Of Digital Integration Are:
- Digital disruptors- The new and unanticipated trends such as artificial intelligence and push notifications within the market can impact the business operations of Wesfarmers Ltd. As there is a speed and constant evolution of technology, it is extremely important for the business leaders of Wesfarmers to transform according to the modern world and think about competition in order to cater their customer better and retain them (Kenny, Pierce & Pye 2012).
- Changing demographics-With the retirement of baby boomers, the business will feel the alteration from both customer and workforce perspective. As the baby boomers or any other generation convert into the new life stages, their interests, needs and expectation from the organisations involved (Türke? et al. 2019). If the firms do not understand and adapt of the changing means of their targeted audience, then they will have to struggle in order to attract and retain customers. It is significant for Wesfarmers to offer segment wise products are services to cater each segment and it can help the company to retain the customers.
Some Of The Barriers To Digital Integration Are:
- Data and analytics- Wesfarmers often face challenges while managing big data due to lack of organisational alignment or understanding of the process (Arnold, 2022). The organisations understand that it is significant to harness data but often only a third of companies benefit from big data.
- Workforce- Every employee within Wesfarmers plays a dynamic role for its digital transformation. The workforce of Wesfarmers is extremely important for the success of digital integration however it includes some challenges as well. For instance: consent on who owns the digital transformation within the company of Wesfarmers might be problematic to find.
The company of Wesfarmers Ltd has enhanced their digital capabilities in order to serve their customers better. The implementation of data and digital capabilities has even helped the company to gain profit. However, the organisation has an ineffective digital marketing strategy due to which they often stay behind the other organisations when it comes to marketing strategy. Therefore, it is recommended that the company must invest in its social media strategies and be active on the channels as a huge number of people are currently looking forward to social media for gaining information about an organisation or its products and services. This will help the company of Wesfarmers to cater their customers in a proper way and gain a brand awareness, not only in the regions of Australia but across the globe. Also, if the company gets a good result, then they might expand into the international regions.
Conclusion:
Lastly, from the above discussion it can be concluded that Wesfarmers have adopted digital technologies which has even helped the company to achieve revenue and cater their customers better. Although, it is recommended that they must focus on the social media strategies better which will help them to connect with their customers and gain new customers from across the globe. In addition to this, it will even help the company to develop their brand awareness and reputation in the international market.
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