Cause-Related Marketing Issues - Case Study Example

UNE Life Marketing Strategies Name Institution Executive Summary Education and hospitality has proved to be factors within universities which go hand in hand. The success of UNE Life businesses in complementing education at University of New England supports the statement. Therefore, this report will identify and discuss the relevance of the mission, SMART objectives and hierarchy of strategies for UNE Life. In addition, the report will define the industry in which UNELife will compete and describe the significance of the overall segmentation, targeting, differentiation and positioning strategies for the business. Introduction Hospitality is one of the largest growing sectors in the economy. In fact, it is rated it is rated number one in the service sector (Reid & Bojanic, 2009, p.4). Mahmood (2013, p.77) claimed that as an industry that integrates entertainment and leisure sector, it has grown to a lucrative sector within the institutions of higher learning especially if it offers product development, innovative and diverse products and service. This is because the university has students and staffs from different background that coexist together though have different aspirations and interests. Mahmood (2013, p.79) stated that education may be the key thing which has brought students and staff to the institution of higher learning, but hospitality is also needed because it compliments learning. It is the same reasoning which University of New England has embraced to start UNE Life program which encompass business like sports and fitness, café, groceries, learning material, entertainment and other services. Therefore, this report will identify and discuss the relevance of the mission, SMART objectives and hierarchy of strategies for UNE Life. In addition, the report will also define the industry in which UNE Life will compete and market attractiveness using five competitive forces, macro and micro level and other strategies. UNE Life’s Mission, SMART objectives and hierarchy of strategies Mission UNE life is a hospitality and service delivery program with a powerful mission which cuts across sports and fitness, café, entertainment, groceries, stationeries and other services (UNE Life, 2015). Founded in 2014, following collaboration between SportUNE and Service UNE, UNE Life business aims at offering a tailored and continuous facilities and services to students and staffs at University of New England (UNE Life, 2015). The mission of the UNE Life is to stimulate atmosphere and on-university activities for the students, employees and entire community. With this approach the program will make the life at campus more enjoyable and easier. Objectives and strategies Currently, UNE Life incorporates 10 businesses which provide different products or services to students, the staffs and the general community around University of New England. These businesses are established with different objectives. Some of the business within UNE Life comprise of Sportline, café life, sleek, campus essential, Belgrave Cinema, graduation services, Yarm Gwanga, The Booloominbah Collection, The Astro and Life Function and Catering (UNE Life, 2015). SportUNE was established to offer facilities for sports and fitness to students, university employees and the community throughout the week. According to UNE Life (2015), SportUNE is today one of the best sporting facility not only in the universities but also in Australia with of sporting services and facilities for gym, tennis, badminton, football, basketball, rugby, baseball and volleyball among others. UNE Life (2015) posited that the aim of this program is to create a healthy community through the week. Fitness experts claim that students who healthy physically are often attentive in class and are able to memorize what they have learnt. In addition, workers who are fit body wise are often active on their work. The SportUNE initiative also aims at providing the management with extra revenue from membership fee. The initiative also offers bar service through The stro business. With this business, UNE Life’s objective is to offer live music on every Thursdays so as to refresh student, the staff and the community’s mind after a busy week of learning or work. The UNE Life through The Stro also aims at offering music culture at the University of New England. Music soothes and relieves people from stress. Life Function and Catering on the other hand intends to offer foods and catering services at affordable cost to university community (UNE Life, 2015). Between the busy schedule, students need food and catering service to keep them active during class times. It is this opportunity which Life Function and Catering is capitalizing on to offer high quality foods while getting revenues in return for a standard period of four years when student are in campus. The business management considers that campus students needs breakfast, lunch and dinner for the period they are in school (Williams et al, 2010). Since New England Area also does not have many catering businesses, the company intends to maximize on opportunity such as weeding, parties and other social functions. UNE Life objective is to offer built a social life outside education and prepare students on how to coexist with others in organization and society. This objective is manifested with Belgrave cinema where students can converge to watch different movies. According to Mahmood (2013, p.79), students needs to inculcate a movie culture between their tight busy schedule so as to understand lives and culture of other members of the university to curb cultural conflict. Furthermore, Mahmood (2013, p.80) argued that watching movies also helps students and general UNE community in relieving stress. The company offers unique, blockbuster and life teaching movies to students of University of New England the whole of their academic years. The industry’s five competitive forces UNE Life is initiative which provides varieties of products and services which can generally be described as hospitality. However, in real sense, UNE Life is comprised of 10 businesses which belong to different industries including sports, entertainment, hotel, supermarket, fashion, grocery and education. This initiative belongs to a competitive industry which contains several market players. However, the location might favour its various businesses. The competitiveness of UNE Life busineses “can be analyzed through five competitive forces such as threats of entrants, threat of substitute, the bargaining power of customers, competition and the bargaining power of suppliers” (Kotler & Keller, 2013, p. 45). The threat of new entrants Most industries which UNE Life’s businesses operate in face threats of new entrants because they are not regulated. Café Life for instance faces high level of threats to entrants who wants may want to venture into fast foods, breakfast foods, and drinks. Armidale city where University of New England is situated is rapidly growing in terms of population and number of businesses including tourism attractions sites (UNE Life, 2015). The situation forms a good platform for business especially fast foods and other products and services offered by cafes. The café business also needs low capital to start hence encouraging more players to venture into such business. It implies that Café Life which offers café product such coffee, Tea, snacks, take away and home-made foods must come up with new strategies to gain competitive advantage. Most UNE Life businesses including Café Life use Prospector’s strategy like “developing new product and adopt effective marketing approaches hence solidifying their position in the market” (Johnson & Richard, 2010). These strategies scare new entrants. Threats of substitutes UNE Life businesses face moderate level of substitutes. It means that while some businesses have substitutes, others have no substitutes at all. For instance, the Café life, Life Function and Catering, Yarm Gwanga, The Booloominbah Collection and campus essential products and services have substitutes, Sportline, Belgrave Cinema and graduation services have no substitutes. “Café life and Life Function and Catering are businesses which deal with fast foods, homemade foods and drinks” (Johnson & Richard, 2010) which normally have a high level of substitutes. To overcome threats of substitutes, the UNE Life businesses use “defender strategies such as improving their products and services, lowering prices whilst insisting on quality customer services” (Drummond & Ensor, 2014). The bargaining power of customers UNE Life is made up of several businesses which are offered within by both the university and other people outside the campus. Alcheva, Cai and Zhao (2009, p.17) argued that this means the program is facing a lot of competition in the market hence the customers faces a high level of bargaining the customers. For that reason, business like Café Life, SportsUne, Life Function and Catering, Yarm Gwanga, The Booloominbah Collection and campus essential, Sportline, Belgrave Cinema and graduation services must use defender’s strategies such lower their prices and offer quality products and services to lower this bargaining power. Market and industry attractiveness through macro and micro level analyses The market and industry attractiveness is one aspect that is analyzed through assessing micro and macro levels of business environment. Kotler and Keller (2013, p.67) stated that at the micro levels business experts analyze market and industry attractiveness through macro levels’ demographic, economic, natural, socio-cultural and technological factors. UNE Life Business market attractiveness is general high. UNE Life (2015) opined that the business has attracted large number of students at University of New England which is estimated to be 21,000 people. Similarly, the business attracts staff and the whole community around the campus. The attractive of both market and industry is attribute to demographic factor such high population who are will to buy sporting, café and entertainment products and services. The situation is boasted by the fact the UNE Life business offer low prices (UNE Life, 2015). In contrast, micro level of UNE Life’s environment entails elements like the suppliers, intermediaries, customers and the distribution centers (Hartmut & Scranton & Spiekermann, 2012). The market and industries have become highly attractive because of the strategic distribution centers which are located within or new the campus which is accessible (Total Market Exposure, 2010). The situation reduces the duration the students, the employees and community take to look for products and services which meets their needs. Relevance of the marketing research for the strategic decision-making of the UNE Life’s business Williams et al (2010) asserted that marketing research has increased among companies in the recent times due to globalization and market dynamics. The marketing research of has become of relevance because it enables business to connect with customers so as to draw various information such as what the clients need (Chand, 2015). Such information is relevant for UNE Life business because it helps in determining and clarifying opportunities, and in making decisions. According to Marketing Hartmut, Scranton and Spiekermann (2012, p.34) contended that marketing research is an element of marketing intelligence and offers decision or policy with information concerning marketing mix efficiency and required changes on such mix. UNE life management has relied on the marketing research to establish the viability of the market especially their major target market which is the university students. Marketing research has also helped UNE Life businesses to set marketing mix such as product, promotion, price and place (Marketing Plan.net, 2012). For instance, marketing research has helped Café Life to establish prices of its products and a discount of 10 percent to students. The same strategy has also helped UNE Life to understand the products and services which are in high demand at the university including café, cinema, sports and grocery. Significance of the general segmentation, targeting, differentiation and positioning strategies for the SportUNE Marketing strategies are crucial for the competition and success of UNE Life. Over the years, marketing strategists have recommended various strategies to companies comprising segmentation, targeting, positioning and differentiation (Marketing Plan.net, 2012). Segmentation has played and will continue playing part in UNE Life business competitive advantage. Oasis500. (2013) argued that segmentation has enabled UNE Life businesses to understand the needs, aspiration, lifestyle and interest of students, staff and community hence planning to satisfy them. For instance, most students have interest in various sports hence SportUNE has been established and offers various sports and facilities. As stated earlier, UNE Life businesses majorly targets all students at University with offering such as café services, bar services, movies, groceries, stationeries, graduation services and sports. Market targeting helps the company to tailor its services or product to match the needs of students and university employees (Total Market Exposure, 2010). Positioning has also played part in remaining business choice of students. Most UNE Life businesses position as low-price companies offering discounts. An example is Café Life which offers product and services at discounted rate of 10 percent. The strategy has helped the company in attracting more students who join UNE each year. Frossell (1998) posited that positioning helps the customers retain brand or product in their minds. Differentiation is another key strategy which has played part in the performance of UNE Life businesses. Café Life and SportUNE use differentiation in terms of low price to attract and retain customers from joining the competition outside the university compounds Sales and (Marketing for “YOU”, 2013). Conclusion UNE Life Business is an initiative which is just one year old and growing rapidly not only within University of New England but also Armidale city as a whole. The success of these businesses has been attributed to various strategies such as marketing research, segmentation, targeting, differentiation and positioning. UNE Life has made life easier to students as it facilitates quick shopping and services which are highly needed by the students. In return, the university gets revenue to improve service delivery to students. The project therefore is an eye opener to other university in improving hospitality within higher institutions of learning. References Alcheva, V., Cai, Y., & Zhao, L. (2009). Cause related marketing: how does a cause-related marketing strategy shape consumer perception, attitude and behavior? Kristianstad University College, 1-37 Chand, C. (2015). Marketing Research: Meaning, Elements, Areas and Objectives. YourArticleLibrary.com. Retrieved August 4th 2015 from http://www.yourarticlelibrary.com/marketing/marketing-research/marketing-research- meaning-elements-areas-and-objectives/30000/ Drummond, G., & Ensor, J. (2014). Introduction to marketing concepts. UK: Oxford University Press Frossell, S. (1998). Perceptual positions. Rapport Magazine. Hartmut, B., & Scranton, P., & Spiekermann, U. (2012). The Rise of Marketing and Market Research. New York: Palgrave Macmilla Johnson, G., & Richard, W. (2010). Competitive Strategy – Techniques for Analyzing Industries and Competitors, 3rd ed, London: Prentice Hall Kotler, P., & Keller, K.L. (2013). Marketing Management. Prentice Hall Mahmood, I. (2013). Influence and Importance of Cinema on the Lifestyle of Educated Youth: A study on University Students of Bangladesh. IOSR Journal of Humanities And Social Science, 17(6), 77-80 Marketing Plan.net. (2012). Marketing Mix. Retrieved August 4th 2015 from http://www.marketingplan.net/marketing-mix/ Oasis500. (2013). Market segmentation. Retrieved August 4th 2015 from http://www.oasis500.com/market-segmentation Sales and Marketing for “YOU”. (2013). Market segmentation: Know your customer. Retrieved August 4th 2015 from http://www.sales-and-marketing-for-you.com/market-segmentation.html Total Market Exposure. (2010). Demographic Targeting. Retrieved August 4th 2015 from http://www.totalmarketexposure.com/demographic-targeting/ Reid, R.D., & Bojanic, D.C. (2009). Hospitality Marketing Management (5 ed.). John Wiley and Sons UNE Life. (2015). UNE Life Official Website. Retrieved August 4th 2015 from http://unelife.com.au/ Williams, K.C., Petrosky, A.R., Hernandez, E.H., & Page, R.A. (2010). Multi-generational marketing: descriptions, characteristics, lifestyles, and attitudes. Journal of Applied Business and Economics, 11(2), Read More