Bandido Firm Marketing Operations

Subject: Company Analysis
Pages: 5
Words: 1166
Reading time:
5 min
Study level: College


Marketing is a crucial function of any business because it assists in communicating and delivering the products and services of the business to its target markets. All business firms should essentially analyse and concentrate on their target markets to build long-lasting relationships with their customers. Challagalla, Murtha and Jaworski (2014) define a target market as a group consisting of customers that a business aims at, using all its marketing efforts and product distribution. With effective market segmentation, a business would be able to determine the most promising target market for its products (Rix 2003). Rotfeld (2009) asserts that the marketplace success of a firm’s product does not only depend on choosing the appropriate target market, but also on the adoption of the four principles of marketing. As shown in the appendix, effective marketing strategy should involve the marketing mix of product, price, place, and promotion. The elements ensure the production of high quality and affordable products as well as effective product promotions through advertisements (Rotfeld 2009). This marketing report focuses on the marketing operations of the Bandido firm.

Bandido Description

As a marketing company

According to Gray and Chapman (2004), before any company decides to produce a product for a particular target market, it should carry out a thorough market research and gather enough information regarding the specific needs of its target customers. Effective market research avails information such as the market size and tips on how a company could maintain competitiveness. Besides conducting a well-detailed market research, Bandido has been keen on observing the 4Ps of marketing. The company produces footwear products that are appealing to customers and they are bought at affordable prices (Rix 2003). The company also spends about $1.5 million annually in its worldwide product promotions. The international distributors of the company also focus mostly on the high quality of Australian leather used to make the footwear. Hence, Bandido is a typical marketing company.

As a selling company

Successful sales of the company’s products depend on the product planning and development practises that it utilises. According to Stockstrom and Herstatt (2008), product planning assists a company in identifying the products that satisfy customers while product development evaluates whether or not the design of the product is in agreement with the planning phase. With the increased sales and the rising demand for Bandido boots worldwide, the company has had to increase its workforce to approximately 330 employees for appropriate planning, production and other related processes. The demand for more products of the firm has prompted it to increase its production from the previous 850 pairs of boots a day to the current 5500 pairs per day. Thus, it is a selling company that concentrates on selling a number of products that can meet the needs of customers.

As both a marketing and a selling company

In the mid 1980s, Bandido underwent a cultural change with regard to production from the exclusive manufacture of work footwear to include the production of miners’ boots, fashion boots and shoes. This was in a bid to fill the global demand gap of its products. Apart from filling the sales demand, the company also works with distributors both in the UK and in the USA to facilitate the marketing of its products. Hence, Bandido is both a marketing and a selling company.

How is Bandido Applying the “Marketing Concept” to Their Marketing Endeavours?

The marketing concept is a business philosophy that asserts that, instead of focusing on its competitors, a firm should critically analyse the needs of its target market and make effective decisions towards meeting those needs (Rotfeld 2009). Bandido has also adopted the marketing concept in its production by focusing on the needs of its customers before developing its footwear. Drawing from the increased demand for its products, the company has been keen in ensuring the manufacture of authentic and high quality goods. Rix (2003) explains that Bandido’s footwear products consist of eighty percent of original Australian leather. Besides this, the firm has ensured that it meets its customer needs by distributing its products to more than twenty-two countries worldwide.

There have been three consecutive expansions of the Bandido factory that is based along the Gormaston Road with the sole purpose of increasing its production capacity (Rix 2003). The factory produces more than eighty varieties of shoes and boots with strategic plans of producing more footwear as the changing trends in the fashion industry.

Finally, Bandido has also been accumulating profits from its efficient marketing strategies. Rix (2003) explains that the company has been able to segment its market into various sections such as the domestic market, the international market and the market composed of children.

Why is It Important That Bandido Should Remain “Australian”?

There is a need to build the Bandido brand name and to maintain competitive advantage in the marketplace.

The strong customer base that is enjoyed by Bandido is because of the originality of the footwear that the company produces. As the company’s marketing manager, Smith, admits that the brand combines product toughness, quality and a clear portrayal of the real Australian heritage and authenticity. The global target market for the company has a positive view of the brand. Hence, if the company suddenly starts producing products of low quality, then Bandido would gradually lose the customer base that it enjoys because customers would not be getting the value for their money. Consequently, the company could end-up shutting down because of losing its target market.

Challenges of the marketing environment.

The marketing environment is a combination of both the internal and the external factors that surround a business and significantly influences customer needs and processes of a business (Challagalla et al 2014). There are both macro and micro marketing environmental factors. In the production of low quality products, a directive from the government, perceiving the company to be incompetent and requiring its immediate closure, would be classified as a macro environmental factor.

Reduction in the prices of products and a general loss of income for the company.

With the production of high quality products, it is possible for a company to define the prices of its products. However, if the target clients realise that the products are of low quality, they would probably pay less for the products (Scockstrom & Herstatt 2008). The company’s general income also reduces because the company loses its long-term reputation.


Bandido is a brand name with a good reputation, both in the local Australian market and the global market. The production of high quality, durable and affordable products, coupled with a clear understanding of its marketing environment, is a key factor in the company’s growth. The introduction of current technology in production is a crucial component of increasing the productivity of Bandido with the aim of satisfying the growing demands for a variety of Australian boots and shoes. However, in order to produce new boots and shoe varieties, the company would need to adopt effective product planning and development phases. Innovation and creativity should be the key guidelines in the production of these new varieties of products to enable the company to explore opportunities that none of its competitors have endorsed.


Challagalla, G, Murtha, B, R, & Jaworski, B, 2014, ‘Marketing Doctrine: A Principles-based Approach to Guiding Marketing Decision-Making in Firms,’ Journal of Marketing, vol. 22, no. 4, pp. 140-197.

Gray, B, J, & Chapman, C, 2004, Essential skills for marketing graduates, Marketing Performance Centre, Dunedin, N.Z., the University of Otago.

Rix, P, 2003, Essential marketing skills, McGraw-Hill, New York, NY.

Rotfeld, H, J, 2009, ‘The marketing myths and consumers’ fear of marketing,’ Journal of Consumer Marketing, vol. 26, no. 5, pp. 309-310.

Stockstrom, C, & Herstatt, C, 2008, ‘Planning and uncertainty in new product development,’ R&D Management, vol. 38, no. 5, pp. 480-490.