Marketing Mix Strategies for the Hamper Range-Samples for Students

Question: Discuss about the formulation of a Promotional Plan for the launch for a hamper range of Products. Answer: Introduction The report focuses on the problems of promotional plan required for launching a hamper range. For the purpose of the report, The Social Cup is taken into consideration. The hamper range of the products is considered and the reason behind the popularity of gifts is analysed. The duration of the promotional strategy is for one week by which the managers of the company formulate plans to make the brand famous. An analysis of the marketing mix, internal and external analysis, SWOT analysis is done to understand the scope of the product in different geographic areas. Apart from this, the report also segregates customers based on preferences and formulates the objectives relating to communication, sales and marketing. Situational analysis Marketing mix analysis Product- According to Luxton, Reid and Mavondo (2015, p.37), product is the ultimate output that results in the success of manufacturing organisations. Every organisation needs to develop a unique product that signifies its brand. The product either can be new and innovative or can be a trademark product of the company. In the case of The Social Cup, the company needs to launch a new product in the market. The product to be promoted is the hamper range for the items of the company. Price- The price of a product is determined based on the cost required for manufacturing the products and a proper market analysis. Prices need to be formulated strategically so that a company can earn a profit as well as satisfy customers. Proper pricing strategies need to be applied in order to ensure success from both ends (Parente Strausbaugh-Hutchinson 2014, p.344). In this regard, The Social Cup needs to adopt the Value-based pricing strategy in order to attract customers. Such a strategy helps in the formulation of strategies required for the development of a product and price it properly in order to meet the demands of the customers while gaining profit. For example, a market survey needs to be conducted by the managers of The Social Cup in order to determine the reasons behind the attraction towards hamper gift. Based on this the price of the hamper range can be formulated. Place- In order to distribute a product effectively in the market, it is important that a proper place be considered. The distribution or sale of a product has to be in a place that can be easily accessed by people (Armstrong et al. 2014, p.78). The product is sold directly to the buyers by transporting it to the required place. This can help in the proper promotion of the product and increase the reputation of an organisation. The destination for the distribution of product also needs to be strategically chosen. The Social Cup needs to identify the best place to sale its hamper range that consists of the demands made by the customers. Promotion- According to Hollensen (2015, p.67), promotion helps in identifying the brand image of a company or product. The method of promotion adopted by a company is an important factor for the success of itself or a product manufactured by it. In the modern era, promotion in the net via social media is a strategic move every organisation can make. The Social Cup can use this medium in order to promote its hamper range. Apart from this, the fact that the company is associated with a social cause, the promotion of the hamper range can be done via such a medium. The company can provide varieties of tea and coffee as gifts to the people for the promotion of its hamper range. Internal factors In order to ensure a successful promotion of a product, initiatives and actions are required to be taken by the members of an organisation. In most cases, it is seen that the united effort of the members of an organisation help in the successful promotion of products. According to Blakeman (2014, p.67), every department that exists in an organisation contributes in making the promotional campaign a huge success. In this regard, the support for external analysis is also required. External agencies include support from the Government, striking a partnership deal, support from customers and the society is required (Finne et al. 2017, p.445). In the case of The Social Cup, such support and coordination among the departments exist. The Social Cup is an organisation that is dedicated to retail coffee beans and tea leaves in Australia. Along with this, the organisation also helps in providing education and empowerment to women and children. Thus, the responsibility for the promotion of its new product needs to be taken by the entire organisation (Belch et al. 2014, p.90). The departments of the company need to work in harmony for the promotion of its hamper range. For example, the marketing department needs to analyse the market in order to identify the target customers. The managers can formulate strategies and finance for the promotion of the product. The finance department can also analyse the finances that the organisation has. Thus, the company have the required resources to promote the product. The partners associated with the company like Child Fund Australia and Australian Indigenous Education Foundation can help in the promotion of the product by acting as external agencies (Jin, Ji Gu 2016, p.61). Thes e organisations are selected in order to provide support to the cause that The Social Cup believes in. Thus, support from external agencies is needed. External factors Customer analysis- Every business organisation needs to identify a target market so that it can prosper in the sales of the product. The Social Cup manufactures coffee beans and tea leaves. However, the focus of the company is on the promotion of its hamper range that consists of its products (Phillips Gully 2015, p.34). The company need to use the economic model of customer behaviour in order to identify the customers. This can help in analysing the economic price effect, substitution effect and the income effect. Hence, the company can gain considerable profit by selling the products to customers that believe in a good package system. Competitor analysis- According to Grant (2016, p.112), competitors of a company help it to grow and understand the areas in which it lacks. This means that the drawbacks of the companies can be analysed by comparing it with the competitors. It helps in developing strategies to out-compete the competitors and increase reputation in the market. In the case of The Social Cup, the three main competitors of the company are Aroma, Belaroma and Coffex. These three companies are coffee manufacturers and producers that have a huge base in foreign countries like India, Brazil and Tanzania. According to Kopalle et al. (2017, p. 114), one of the biggest advantages of these companies is the fact that these businesses exist since a long time. Aroma uses a strong promotional policy such as involving famous people in its promotional campaign. Belaroma have its competencies by setting up business in core social areas like in office place or parks. Coffex provides coffee of various tastes to attract t he competitors. Hence, it can be said that the competitors provide serious threats to The Social Cup. However, one advantage that The Social Cup has over its competitors is the fact that it also sells tea and has access to modern equipment in manufacturing the products and creating an attractive hamper range. Environmental analysis- According to Calvasina, Calvasina and Calvasina (2014, p.51), environmental analysis is the ability to take a complete evaluation of the environment. Every business organisation needs to make a thorough analysis of the environment in which they set up the business. Based on these analyses, strategies are made that can help in addressing the challenges posed by these factors. For example, the political factors of the country need to be analysed in order to understand the political scenarios in the country. Similarly, the economic condition of the country justifies the financial capability of the people (Meredith et al. 2016, p.1874). The Social Cup needs to keep in mind that the manufacturing of the hamper range does not degrade the environment. Political factors Economic factors Socio-cultural factors Technological factors Natural environment The trade restrictions that exist in Australia may have a severe impact on the business. Currently, the population of Australia are on the rise. As per reports of 2015-16, it is seen that more people are coming and settling in the country. The diversity of the population can play a huge role in the marketing of products. Based on the demands of the people The Social Cup can manufacture and sale its products or innovate new products. In the modern era, technical expertise in a field of work is important as technology does about 40% of the work. The materials used for making the hamper range can degrade the environment. Materials like plastic can hamper the environment. Table 1: PESTN Factor (Created by author) SWOT analysis Strength Technical expertise Coordination between employees Popularity of the product in general Weakness Lack of expertise in employment Lack of promotional techniques Poor place for organisation set up Opportunities Expansion into global market Make a better place for the country Increase the level of competition in the market Threat Existing brands Legal and political factors of Australia Demography Table 2: SWOT analysis (Created by author) After the SWOT analysis, it has been seen that the main weakness of the company is the lack of expertise of the employees. This is mainly because the company does not employ mane people due to lack of proper financial stability. Apart from this, a poor promotional technique hinders the progress of the company in the country. The threats from competitors are a challenging factor and the political issues that exist also hinder proper trade. The fact that Australia is not a densely populated country also proves as a decisive factor for The Social Cup. However, opportunities can arise from the strengths. One such opportunity is the expansion into global market. This can be done by overcoming the weakness and the threats. The use of technologies for making the hamper range can help in increasing the level of competition in the market. The social benefits that the company can also help it to expand in the world. Target marketing Market segmentation According to Hanssens et al. (2014, p.534), market segmentation is done in order to divide customers based on various groups. This segmentation is done in order to identify target markets and manufacture products accordingly. The table provides the market segmentation of The Social Cup. Segment name Sensualists Sociable Worries Interdependent Demographic Children Young people Price Common people Behaviour Good reception Needs for products Fade away from products Maintain reputation Personality Highly involved Emotionally instable Hypocrites Autonomous Table 3: Market segmentation base (Created by author) Target market Based on the analysis of the market segmentation, the target customers of The Social Cup can be determined. The Social Cup targets to expand itself every state of Australia. The company targets customers of various age, income and education. The Social Cup needs to target young people that enjoy the tastes of beverages and provides gifts to the people. (Aghdaie Alimardani 2015, p.262). The current and future markets of the company need to be determined based on the reception of the hamper range. Target audience Target audience defines a group of people at which a particular product is aimed (Dietrich et al. 2016, p.34). This helps a business to manufacture products and gain profit by satisfying that brand of customers. In the case of The Social Cup, the influence on the target audience can be such that the company can increase its reputation. Gifts are often exchanged in order to display affection and a sense of gratitude to people. It can also be given to customers from the company as a reward for loyalty. Positioning statement After analysing the target audience and the market of the business, the positioning statement of Queensland Black can be determined. To enjoy the richness of coffee and tea at home, visit The Social Cup in order to experience the hamper range of the company Objectives Marketing objectives The Social Care aims to take control of 30% of the market share with its hamper range within the next 6 months by selling the brand manufactured from its region. For this, a SMART objective can be formed in order to meet the marketing objective. Specific The goal is to spread the hamper range among the general people of Australia via cafes Measurable This can be measured from the amount of sales that the cafes are making of the product Achievable This needs to happen among customers interested in gifts Realistic The resources required are the employees with a sense of creativity Time bound The goal needs to be achieved within a period of 6 months Table 3: SMART objective (Created by author) Communication objectives After analysing the SWOT, it can be said that The Social Cup needs to improve the promotional technique. For this reason, the communication objectives need to be setting proper channels for promotion and spread awareness among the local people. Different models can be used to guide communicators in an effective manner. Sales objectives The company can provide short-time discount promotions in order to attract customers and increase the image of the product. 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