Bunning’s Warehouse – position themselves within the market particularly through product and place. 

 

Many of its retail outlets are designed like large sheds, and the inside of its stores are also laid out like sheds. 

 

Its stores are quite large, and generally positioned near big car parks, which make it easy to access and convenient for customers to visit. 

 

It is also generally situated near a series of other, large, warehouse like stores in a lot, or by itself. 

 

Product wise, Bunning’s warehouse sells products for home renovations, gardening and other things for the house – both interiors and exterior products.

 

It specialises wholly in this, and this is what people automatically associate Bunning’s with when they think of the brand.

 

Bunning’s uses a variety of techniques to suggest to its customers that its prices are extremely competitive. It does this through its newspaper style advertising material, its radio and television ads and even its logo that is simple and represents economically sound principles. 

 

The people Bunning’s employ are trained to be very helpful and informative and also understand the importance of helping people achieve the best results. Which also plays into the concept of ensuring customers get the best deal and the best value for money that they can. Employees are polite, and given their knowledge and expertise on the products, can help customers find the best products for their needs. This is what differentiates Bunning’s from other hardware stores. 

 

Promotion – Bunning’s has regular specials on their products which they advertise though a variety of channels. Their main advertising tool is catalogues sent out to peoples homes, and ads in newspapers. 

 

Their specials position them as selling their products at the most competitive prices in the markets, and their slogan is that they will beat any lower prices of competitors. 

 

“Bunning’s warehouse – lowest prices are just the beginning” 

 

Price policy

 

Buying focusing on building relationships with customers retailers increase the likelihood of repeat business and loyal customers.
Examples;
Apple store - Multiple and knowledgable staff to assist customers quickly and efficiently.
Coffee Shops - Customer loyalty cards - buy 9 get the 10th free.
Provide a contrast with low service retailer.  

Advantages:
- Strategy is easy to grab customer's attention/ customer understanding
- Low fixed costs: Enables a store to develop infrastructure and supply chain efficiencies. 
- Clear marketing message: Every item in store will always be available for a low price
Disadvantages:
- Perception of poor quality 
- Price wars: Competitors can lower their prices to beat yours. If promised to beat every competitor's price, it may fall prey to sell below cost just to capture customers 
- Reduced profit margins
- Poor vendor relations: Aggravate vendor if haggle for lower prices constantly 

Advantages:
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Disadvantages:
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Advantages:
- Knows exactly the amount of expenditure that has incurred on making a product--> therefore they can add profit margin accordingly, helps in achieving desired revenue for a firm.
Disadvantages:
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Advantages:
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Disadvantages:
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2.     Higher profit margins than home brands that are resold because the cost of manufacturing own products is much lower. Therefore, the private label retailer can also offer competitive prices. For example, Myers has created its own brand called Miss Shop that provides similar products but at a competitive price to the other brands sold in the department store.

 

3.     Exclusivity – Have sole/exclusive rights to sell your products. Can separate yourself from your competitors, and can market it in a way that creates demand --- making you your customers’ only source. Can charge premium prices and have more control over prices, marketing, sales and distribution. For example high-end brands such as Hermes do not distribute their products to third party retailers to retain its exclusivity and maintain control of its products sales.

  

 4.    Allow retailers to provide a specific style or product to a customer quickly. 

 

2. Majority of private label products lack innovation and products improvement, as the sole purpose is to compete with other branded (home brand) products.