Strategic Marketing of Linnak - Research Paper Example

? Strategic marketing plan: Linnak Executive summary International designers are increasingly showing inclination towards utilising the concepts of traditional arts. Therefore the perspective of the local culture of Taiwan is gradually moving towards occupying the position of an essential cultural element among the future designs of various modern day applications. This paper presents a plan for the development of a drinking cup based on the design of the traditional ‘Linnak’ used by the Paiwan tribe. The ideas of the Linnak and the cultural connotations associated with the product evoke innovative sense of marketing among the modern marketers. The National Taiwan Craft Research Institute (NTCRI) is a renowned organization in Taiwan and its marketing division has been chosen to handle this project and promote the new product. This paper presents the detailed marketing plan for the promotion and launch of the new product, the analysis of the target market and the competitors of the NTCRI. It also mentions the indicators by which the organization would be able to measure the performance of the product after it has been marketed. Table of Contents International designers are increasingly showing inclination towards utilising the concepts of traditional arts. Therefore the perspective of the local culture of Taiwan is gradually moving towards occupying the position of an essential cultural element among the future designs of various modern day applications. This paper presents a plan for the development of a drinking cup based on the design of the traditional ‘Linnak’ used by the Paiwan tribe. The ideas of the Linnak and the cultural connotations associated with the product evoke innovative sense of marketing among the modern marketers. The National Taiwan Craft Research Institute (NTCRI) is a renowned organization in Taiwan and its marketing division has been chosen to handle this project and promote the new product. This paper presents the detailed marketing plan for the promotion and launch of the new product, the analysis of the target market and the competitors of the NTCRI. It also mentions the indicators by which the organization would be able to measure the performance of the product after it has been marketed. 2 Table of Contents 3 Rationale of the artistic product 4 Company overview 4 Overview of the new product 5 Product design 5 Relationship between the product and the NTCRI 6 Internal situation 6 Strengths 6 Weaknesses 7 External situation 8 Pest analysis 8 Opportunities 10 Threats 10 Analysis of target market 11 Competitor analysis 12 Marketing strategy 13 Marketing objectives, strategies and actions 16 Performance indicators 17 Conclusion 17 References 18 Rationale of the artistic product Taiwan is rich in cultural heritage and a new product has been chosen which would be introduced to the market for handicrafts in the country. This product would be marketed through the NTCRI. The product is a drinking cup designed with ideas borrowed from the rich cultural heritage of the country. The original product is a special traditional wine-drinking cup made of wood and consisting of one or more cups. The Linnak is very closely associated with the wine drinking culture of the tribe as a part of their sacred ritual. The number of cups in this drinking container (carved out of one single log of wood) signifies the speciality of the event in which the cup is used. If there is only one cup in the Linnak, it implies that the cup is meant for use by the chief of tribe in the special event. Two-cup or three-cup versions of the Linnak are also used in certain social events in the tribal society, such as, marriages and festive ceremonies, in which the people that share the cups of the Linnak to drink rice wine share a deep bonding. In marriages, the husband and the wife sharing the drink from the two-cup Linnak are bound by a loving relationship; in other social events, people that drink form the same Linnak share warm feelings among one another (Lin, 2007). The design of the Linnak has been found to be very articulate and rich with traditional values of brotherhood or good relationship among the people of the same origin. Hence this design has been adapted for the construction of a modern drinking cup to remind the user of these values and enrich her life with the invaluable cultural heritage of the country. Company overview The NTCRI has been established in the year 1999 in Taiwan with support from the Taiwan provincial government. The organization had been originally established back in 1954 (NTCRI, 2009a). The mission of this institute is to develop the culture and industry of the country and encourage the people of Taiwan to appreciate local crafts, cultivate the ingredients of beauty among them and help the country grow economically by bringing international recognition and currency to the currency by way of their indigenous handicrafts (NTCRI, 2009a). The organization is well organized into different departments that are trusted with various specific responsibilities. There are mainly three divisions which are further divided into subdivisions. There are three exhibition centres in the institute. This broad and detailed departmentalization of the organization shows its interest towards nurturing the art and crafts of the country and taking them to the higher levels of excellence. This organization is one of the most valued organizations in Taiwanese industry for cultural goods and deals with the cultural aspects of the country. Therefore this organization has been chosen for launching the new product in the market by implementing a unique strategic marketing plan devised for the particular product. Overview of the new product Product design A new product has been devised using the design of the ‘Linnak’ or the ‘twin cup’ commonly used by the people of the Paiwan tribe. The modern Linnak would be made out of porcelain and would ideally represent the artistic feature of the traditional Linnak. With minimum modifications the Linnak would be technically developed into a modern drinking cup. This product would have two different variants; one would be developed into a wine drinking cup that would be usable on both ends; i.e. the container would containing a cup on either side, both top and bottom; and the other one would be developed keeping in mind the relationship shared by a mother with her child. For this variant, there would be two cups, one small and the other a little bigger, and the cups would be placed on a cup stand. The smaller cup would have two handles on either side of the cup that is meant to help the growing child drink the liquids from the cup without spilling the contents. The design of the cup would imitate the original Linnak to the extent it is possible to keep the ethnicity of the container within modern technological framework. Relationship between the product and the NTCRI The product designs derived from the Linnak are good instances through which cultural features can be applied to the modern product designs, thereby retaining the essence of the cultural value while punching it with the elements of the advanced contemporary utilities. The NTCRI has the required infrastructure and human resource that are capable of modifying the distinguishing attributes of the traditional crafts and blend the concepts of modern scientific knowledge with them. Hence, it would be possible for the designers and the technicians of this institute to give shape to the modern Linnak and identify the potential marketing strategies to launch the product in the international market. Since the institution is located in Taiwan it has already gathered considerable recognition domestically. Besides, NTCRI is well known in the international forum that deals with the art and culture of different parts of the world. Promotion of the new product would be taken care of by the marketers in NTCRI since the institute appreciates local crafts and encourages the development of the ingredients of beauty lying latent within the local culture. Internal situation Strengths The NTCRI receives financial support of the government and also advisory assistance for conducting various programmes under the institute’s banner. The products that the organization deals with are of excellently high quality and sets artistic standards in the industry. The NTCRI is located in central Taiwan; therefore it is the centre of trade and other commercial activities in the country (NTCRI, 2009b). The place enjoys good communication facilities. This is a centre of attraction for the people interested in the fields of arts and culture since they would not only be able to gain visual pleasure by seeing the various unique pieces of art on display, but also would be able to satisfy their thirst for knowledge by inquiring about the items. The purchasing power of women is increasing rapidly in the Mainland China (Atsmon et al., 2012; Debnam and Qian, 2012). On this ground the NTCRI present special facilities for ladies and mothers (NTCRI, 2009c). The staff is knowledgeable, sincere and sensible to the demands of the customers. Besides the institute has a competent team of designers and a very technologically advanced department that would produce the product efficiently. The factors mentioned above stand to affect the marketing activities of the Linnak in several ways. First of all, the NTCRI is a renowned organization; therefore it would be able to attract a large number of patrons for the product through its marketing activities. The location of the institute is an added advantage, both physically and in terms of the strategic positioning in the arts industry. Once the product is exhibited through the NTCRI, it would set a high artistic standard. Therefore the Linnak would rise to a high standard in terms of artistry and also appreciation. Besides, the product would be developed by a team of highly competent designers thereby making it a very valued piece of art which is embodying a good blend of tradition and modernity. This fact would act as a special additional feature for the marketing of this product. Weaknesses At present the NTCRI experiences shortages of funds. Financial constraints are becoming hindrances in the path of marketing and conducting programmes. Promotional activity by the organization in many cases is taking a back seat due to constrained budget. Lack of resources is also barring the authority from hiring of specialized personnel or ostentatious decorations in order to increase the attractiveness of the events. The organization does not have a strong donor tracking system. Donations by the patrons are a strong source of resource for the organization. In this context, it has been identified that there is lack of marketing on part of the institution. This is because, sufficient marketing would open up new channels of resource generation. Sometimes lack of proper training, monitoring and engagement of the staff with the higher officials lead to staff burnout. It is a serious issue since the organization has to deal with their inefficiency, lack of spirit and cynicism. It also affects the productivity of the staff and in turn the performance of the organization (Actalliance, n.d.). These weaknesses of the organization would be influential on the marketing procedures of the product. Since the organization is running a lag in terms of funds, there are chances that the product would not be marketed tot hew desirable extent. Since the product is not a very common user good, but an item of intellectual value, it is expected that the marketing procedure of the Linnak would be associated with a certain level of grandeur. Lack of effective marketing would not create enough interest among the public. If all possible channels are not utilized, such as, prior advertising before the launch of the product, or hiring distinguished personnel to the program in which the product would be displayed, the product would also not reach the total target market. External situation Pest analysis Social The social conditions in Taiwan support the development of the cultural and artistic features of the country. The people of Taiwan are display awareness about their cultural heritage. Hence it is a good opportunity to take the initiative of developing a new product for this market. Political The government of the country makes efforts to support the initiatives taken by different arts organization in the country (NTCRI, 2009a). It provides financial support and also has policies to support different programmes conducted by these organizations. However, in recent years there has been a lag in provision of funds from the government. Economic The economic condition of China reflects that the middle income population are the thrust of the economy and this population group is expanding. Despite the economic downturn, China has been showing increasing trend in their pattern of demand for different consumer goods (Doctoroff, 2012). They show good taste for artistic luxury goods. Technological The country is advancing rapidly in gathering of technological knowhow. The arts organizations hence are supported by such developments. Technical expertise is leads to development of better quality products and leads to utilization of modern media channels for the promotion of the products. Opportunities Taiwan is a part of the Mainland China and the population of the country is expanding at a significant rate. Hence NTCRI faces the opportunity to extend the popularity of the product among the new customer base. Besides increasing the popularity of the item, expansion of the patron base signifies opening up of new channels of donation or resource generation. The organization would get the opportunity to tap this donor base through enhancement of community relationships. NTCRI can utilize its national character in order to achieve this objective and make the Linnak an object of national traditional importance. The Linnak wine cup might be used in modern day parties in China as a symbol tradition. Threats Consumer base for artistic products does not evolve as fast as the other consumer goods. It takes a certain level of intellect and taste to admire such products. Therefore, although the population of China is increasing along with which the proportion of population spending huge amounts of money on luxury items is rising, the proportion of population that can admire such goods of high artistic value is limited. Besides it is a challenge for NTCRI to imbibe a taste for Linnak in the preference structure of the consumers, since the taste and preference of the customer is changing very fast. Luxury goods are becoming a modern genre and also becoming outdated very fast. Besides, the current economic downturn might affect the purchasing behaviour of the customers. Although the middle income earners make the highest demand for this kind of products, lack of demand from the low income earners would mean the product is incapable of reaching the entire population. Analysis of target market The new product is named Linnak, after the name of the original product. It would evoke the sense of tradition among the customers and would make a new category of goods by offering a mix of tradition and modernity. Such commodities are mostly consumed by customers that belong to the middle income group. This is “the most consumerist group” (Goodwin, Ackerman and Kiron, 1996, p. 324) in the country and the group that is mainly responsible to boost up the economy’s effective demand (Jia, 2012; Laughlin, 2013). The Linnak can be termed as luxury item since it is not utterly necessary for leading a standard livelihood. However, there exists a group of customers that are almost tied with the consumption of such items out of various instigations. While some consumers like to flaunt these items, others simply gain personal pleasure by consuming such goods (Vigneron and Johnson, 1999). After Taiwan’s retrocession to the Republic of China, the Taiwan market for handicrafts and artistic goods has seen vast improvements (Taiwan, 2013). In China, since the last few years, luxury goods are being associated with the traditional background and cultural aspects of the country. According to some consumers and scholars, consumers enjoy a feeling of exclusivity by consuming goods that bear a cultural connotation (Radon, 2012; Chan et al., 2009; Yau, 1988; Twitchell, 2001; Husic and Cicic, 2009). Possession of such goods allows the consumer to feel that by purchasing and using the particular item they are demonstrating awareness about the culture and tradition of the country (Haiyang, 2012). Most cultural goods are different from consumer goods, due to the fact that they possess the characteristics of both private and public goods. These differences occur mainly because of the differences in values attributed to the cultural assets by different consumers (Vecvagars, 2006). The Chinese customers have recently shown significant rise in modernity of their preferences, inclination towards cultural products and willingness to pay prices for valuable items (Doctoroff, 2012). Therefore the Linnak would be acceptable by the middle class consumerist population of China. The product would be fitted to be introduced to the contemporary market of China. In this era of globalization, the Chinese market is accessible to the international shoppers as well. Therefore, with the support of the NTCRI, the Linnak is expected to find huge acceptance in the domestic as well as the international market of China. Competitor analysis The field of arts is evolving fast NTCRI is faced with moderate competition from other arts organizations. For example, the Taipei City Museum of Art is an active organization that conducts exhibitions and competitions on different themes related to art. These competitions are quite attractive since the winners are awarded with cash and certificates of honour. Designers come up with their versatile imaginations and creativity and present their product creations on this platform (E-architect, 2011). The National Taiwan Museum of Fine Arts is another well known organization that encourages artistic creations by young artists. These products are exhibited in the museum. They have a purchase program in which scholars and admirers from different parts of the world take part to purchase the products (NTMOFA, 2008). This organization has its own fund raising program and resources are gathered through private sources besides receiving grants from the government. Besides, some other organizations, such as, the Taiwan Art Gallery Association, conduct art fairs that is the convergence point of designers artists and patrons form different parts of the world (Culture, 2012). This is source of revenue generation and also method of promotion for the organization that is conducting the fair. Thus NTCRI has to actively take steps to generate resources and step up its marketing processes in order to maintain its position in this competitive industry. The NTCRI is also facing competition from some of the renowned designers, who make their individual exhibitions and display various products of art and culture designed and developed by them. These designers are gaining reputation for their creations and are celebrated for both personal aesthetic experience of the consumers and also social functions (Her, 2011). Therefore the organization has to closely study the inclination of the customers towards the kind of products they are recently consuming and mould their preferences in order to enable them realize the importance of the Linnak and the value of possessing it. Marketing strategy Product The product NTCRI is dealing with is the Linnak, which holds huge cultural value. The Linnak is a modern container designed like a cup, which is inspired by the traditional wine drinking cup, Linnak, commonly used by the Paiwan tribe in various occasion. The product would be made of porcelain and would be adorable by both the Chinese population and the culturally inclined people all over the world. Price One important parameter in every business is the price of the products or services offered. While setting the price producers consider the cost of developing the product and its marketing in order to determine the profit margin. The Linnak is a new product and market demand for the product is not yet known. Price for this product would be set according to the pricing policies followed by the NTCRI. As an introductory offer, discounts would be provided to the customers who would buy this item within one month from the first day of exhibition-cum-sale. Gift packing would also be available and customers would get the facility of getting the product delivered to any given address. Delivery within domestic address would be free; for international destinations a minimum charge would be levied. Place For marketing of any product place plays a very important role. When an outlet is selling their own product, i.e., products that are manufactured by the own production unit of the organization, location of the sales unit affects the brand image of the product. The place must be located within the close vicinity of customers. It would ensure higher rate of customer inflow. The NTCRI is an establishment with profound fame. The location is in the centre of Taiwan. After evaluating the product performance in the first few months after launch, the organization might add this product to the list of commodities that the customer might purchase online by visiting the company website. Or the organization might tie up with one or two online stores operating in the country that sell artistic products developed by different organizations. Promotion Promotional strategies are central to the success of any new product. NTCRI has to make aggressive investments for making advertisements about the exhibition in which the Linnak would be displayed and refer to the product as a ‘special attraction’ of the show. Some celebrated personality should be recruited to display the product on the first day of launching. Promotion of the event should also be made on the company’s website. People In marketing strategy ‘people’ refer to the employees of the organization that are involved in selling the product. They facilitate the process of consumption by the consumers. For an arts organization like NTCRI employee engagement with the customers the relationship shared between the two holds significant value and affects the market performance of the product. Consumption value of the Linnak refers to the enhancement of the aesthetic sense of the customers; therefore good staff behaviour and competency allows the customer to attach more value to the product. Therefore the staff should be trained properly and they should display sincerity with regard to customer reception and interaction. Physical Evidence Some visual as well as tangible clues belonging to the selling point can attract the attention of the customer. The NTCRI has years of fame tagged on to it but the construction boasts all modern technologically advanced amenities. The ambience preserves the ethnic tradition of the country and its aboriginal inhabitants, but the design and construction attracts the modern customer and soothes her taste for cultural values as well as supplements her needs with all modern facilities. Hence this is a good opportunity to introduce the Linnak to the contemporary market. Process The various procedures involved in different levels of business are interconnected and they together cast an important impact on the success of business. The process of marketing should be conducted in accordance with the operations carried out during the production level and these two must converge in order to make effective marketing. It would influence the quality of product and also its delivery service. It requires sincere efforts from the employees at different levels to maintain proper communication. Customers are aware about their purchases and they judge both what they are receiving and how they are receiving. Marketing objectives, strategies and actions The promotion of Linnak would expand the heritage of the country and extend its rich traditional values to the contemporary consumer. Research reveals that these customers are highly inclined towards possessing commodities that closely bear traditional spiritual or cultural connotations. [Radon, 2012] The marketing strategies of the modern Linnak would be based on the considerations of the preferences of this consumer base and would utilize the available infrastructure and technological knowhow possessed by the institute. The strategies would emphasize on increasing the aesthetic feeling of the customer and satisfy their demand for spiritual essence in life. By doing this the institute would move ahead towards achieving their goal of taking the culture of Taiwan to the global customer. The best possible way to extend the uniqueness of a culture is by examining the impressions made by the different signifiers (objects) of that cultural on the inhabitants and then finding out ways to apply them to the consumer goods used by the people of other cultural backgrounds. The marketing strategy is two-part. A two-part intermediate work is necessary in this process; proper modification of the original components of the object in the first step and effective and tactful marketing of the product in the host market in the second step. The NTCRI might develop and market an innovative design of a single product, however, at later times the institute might also be interested to promote other similar products. The advanced promotion would commence from one month prior to the commencement of the exhibition. As a part of promotional strategy NTCRI might use advertising vans that would run on the streets of the city and distribute pamphlets among the commuters. In these pamphlets description of the exhibition would be mentioned along with the names of certain remarkable items that would be on display. The Linnak is a new introduction; hence the pamphlets would contain pictures of the modern Linnak alongside the picture of a tribal Paiwan drinking from a traditional Linnak. Besides, NTCRI should make e-marketing, since in this era internet plays a very important role in communications. In the website of the organization, in the ‘News’ section, an image of the Linnak should be added and messages, like, “unraveling our cultural heritage through the Linnak”, should be flashed at regular intervals while the exhibition timings and hall number would be mentioned in the same place. Performance indicators The outcome of the marketing work would be measured via a number of key performance indicators. Advertising to sales ratio is an important indicator of performance. As the sales revenue rises over the costs incurred in advertising it shows the product has been well accepted by the target market. The change in revenue between the first and the second month after the launch of the product would show how the product is performing. The return on marketing investment is obtained by dividing the total revenue generated by the marketing budget made for the launch of the product. Finally the profit made out of this entire activity shows the performance of the product. NTCRI would aim at increasing profit through higher sales of the Linnak. Conclusion There is a rich base of art and culture in the Taiwanese aboriginal culture and it demonstrates huge potential for improving the value of design of the modern day consumer products. It has been found that the aboriginal culture of the country can be made the foundation stone of various contemporary artistic consumer utility products. The marketing strategy mentioned in this paper is made with reference to the Linnak and is aimed at enabling the marketers to conduct the marketing process properly so as to ensure successful performance. References Actalliance, n.d. How to monitor and manage staff 'burn out'. [online] Available at: [Accessed 17 May 2013]. 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