Marketing Plan for DraftServ Technology - Report Example

Marketing Plan of the of the Situation Analysis DraftServ Technology is new in the Australian market and it is going to offer beer taps and other beverage dispensing system to the customers. The initial target market of this company is Sydney and apart from that they will target other cities of Australia. Targeted consumers will be the hotels and banquets where social and corporate parties, ships & cruise companies. The mission of this company is to carry forward the expertise of company in self service bear vending machine, maintain the advanced technology and customer oriented approach. Vision of this company is to achieve remarkable reputation in the Australian market. The company is also focusing some core values which are efficient and consistent delivery services, offering innovative and dynamic products to the customers at affordable price etc (Jeffs, 2008). The political factors will not be in favour of this business activity. The corporate tax rate has increasing trend. Economic factors are also providing challenges to this company due to the high volatility of inflation rate. Social factors include belief, values and norms of the company. The beverage dispensary will create a positive impact on customers in terms of values and belief as the customers will get purified beverage from this machines. SWOT Analysis Strength – Developing good skills among employees, already established brand in Singapore and US, improved technological advancement, affordable price of the product, strong capital base. Weakness – Problem for giving training to the new employees and sales representatives. Opportunities – The Company can cover a large area in Australia for selling its products. It also can get opportunity to export its products in the other countries as the harbour is near of Sidney city. Threats – Expensive marketing campaign is required to tackle the competition in the local market. Huge price fluctuation will also hamper the business operation in a significant way (Pahl and Richter, 2009). Marketing Goal Within next 5 years after starting the business, the company wants to achieve at least 40% of market share through its business activities and also wants to gain 25% revenue of the total revenue earned in this particular industry. Marketing Strategy Marketing plan is a one of the important parts of a business plan. Effective marketing strategy can bring success in a new organization. A marketing plan involves few important dimensions that are essential for introducing a new product or new business in the market. Situation analysis, marketing goal, marketing strategy and marketing tactics are the important steps for making a proper marketing plan to introduce a new product in the market. Marketing strategy allows an organization to concentrate on the use of its resources and also utilize the optimal opportunities which are available in the market. This will help to achieve the targets and gain the growth of the company. Marketing strategy is generally focusing on the target customers and value proposition of business. There are more than 46,000 reputed hotels, bars, restaurants and shopping malls in the city Sydney and these will be the major target customers of this company. This kind of product has wide impact on the growth of restaurant, bar and hotel businesses in this country. All age group especially the young generation will be mostly influenced by this product. This will help the company to increase the volume of sale (Rao, Rao and Sivaramakrishna, 2009). Again, this machine is mostly used for celebrating party, birth days etc. Segmentation of the population age groups are as follows. Hotels- 32%, Bars- 48%, Restaurants- 12%, Ships and cruise- 8% [Appendix 1]. They are targeting to increase the volume of sale at 5% in each year and also demanding 10% return from their investment. They are targeting to achieve 8 % growth in this business at each and every year in their 1st five year’s business phase. This can be done only after framing the target market in an efficient way (Cheverton, 2005). In the festival seasons such as X-mass, New Year etc the demand of such products is increased in the hotels, bars and restaurants. Again, if the company will able to input more improved parts then quality of this machines will automatically improved and it will give a competitive advantage in the market than the subsidiary products. The company has already implemented strong refrigeration system with high power machineries. This will help to chill the beverages and beer for a longer duration. Target customers will be attracted by the above mentioned strategies. Value proposition is a promise which was given from the end of producer to the customers and through this promise company will give assurance to the buyers that they will get expected value from their buying products. In this case Draft Serv Technologies will assure their customers that they will get best quality service from these products than the other existing brands. These machines can be operated easily by anyone. Young group of customers will be attracted from such hi-tech facilities. Here the company is concerned to reduce the time which the customers have to spend in queue for getting a glass of beer (Luther, 2011). Marketing Tactics Marketing tactics can be defined as the set of strategic methods which are used to promote goods and services of business with the goal of increasing the volume of sale and amount of revenue. It also helps to maintain the competitiveness in the quality of products or services. The focus of marketing tactics is to fulfil customer satisfaction. Effective promotion is one of the important parts of marketing tactics and marketing mix is the important tool in this case. Marketing mix includes product, distribution, promotion and price. These are discussed as follows. Product – DraftServe Technologies is offering bear vending machine and beverage dispensing system to its customers. The physical characteristics and size of the product will be different to attract different group of customers. Three different sizes will be available in this case and these are small, medium and large. For example, to attract the individual customers the company is going to launch small sized machine. Quality of these machines will be superior. The company will launch such vending machines in more than one colour. Again guarantee will be given for the five years on this product and warranty will be given to next five years when the guaranteed period will get over. This information will be mentioned on the packaging of products. Technological facilities such as management solution, integrated solution, custom solution etc will be given to the customers (Allen, 2012). Distribution – Distribution channel needs to be developed in such a way which will ensure that products will be available wherever customers wish to purchase it. DraftServe Technologies will try to cover as many super markets and whole sellers as possible in Sydney and its adjacent cities. Company’s own sales force will also be involved for the work of distribution. This sales force has to play a crucial role in the distribution procedure. They will always look after the delivery of product within the scheduled time and to the right place. They will also look after that the customer will get the item within very short time after placing the order. If there will be any huge gap between order placed and delivery the product then customer will be dissatisfied and in future they will move to another brand for purchasing the same item (Draftserv Technologies, 2007). Promotion – Internet, news paper, magazine and hoarding will be used as the medium of promotion. The company can use a brand ambassador to establish a strong brand image in the market. The brand ambassador may be any famous film star or any singer or national player of the country. The voice of the brand ambassador can easily reach all direct or indirect potential customers in the country and it will generate trust and belief on the products of this company. Direct marketing will be another most effective way to increase the volume of sale. Sales representatives have to build strong corporate and professional relationship with the corporate clients and through this way the product awareness will be generated in the market. Marketing representatives also have to show few presentations to the clients regarding the usefulness, facilities and technologies of such machines. Again they have to show the comparison between this machine and other substitutes which are available in the local market. This comparison will be effective to generate interest on such item. Advertisement on television will not be an effective mode of promotion in this case as the product mainly serves the purpose of corporate clients and generally it does not target the household families. Newspaper, magazine [especially the corporate magazines] will be suitable for the purpose of promotion. Some upper income group also be influenced and can fix such kind of beer vending machine at their personal pub in home as this will be the symbol of status and high social class. This group will be attracted by the promotional activities in internet. Social networking sites and business cites can be used by this company for promoting this machine (Griffin, 2010). If some videos can be developed and posted in the You Tube then customers can get audio visual presentation and relevant information about this item. The company also can do sponsorship for promoting its product. Sponsorship can be done on the famous events such as cricket tournament etc (Sekhar, 2009). Price – The Company is offering its products at affordable and competitive prices in the market. Initially it will offer discounts on the selling price of such item to gain market share in its business. Through this way the company can get a stable position and a fixed customer range in Australia. The company will not follow the same pricing strategy in all the countries where it has expanded its business activities. As the company is penetrate in the Australian market so it would like to reduce the initial price than the competitor’s price. References Allen, M. (2012). Analysing the organisational environment. Cambridge: Select Knowledge Limited. Cheverton, P. (2005). Key marketing skills: Strategies, tools and techniques for marketing success. London: Kogan Page Publishers. DraftServ Technologies. (2007). What they are saying about DraftServ. Retrieved from http://www.draftserv.com/. Griffin, D. (2010). Business with a purpose: Starting, building, managing and protecting your new business. New York: Easy Brain Labs Inc. Jeffs, C. (2008). Strategic management. Los Angeles: SAGE. Luther, W. (2011). The marketing plan: How to prepare and implement it. New York: AMACOM Div American Mgmt Assn. Pahl, N. and Richter, A. (2009). SWOT analysis: Idea, methodology and a practical approach. Germany: Books on Demand. Rao, C., Rao, B. and Sivaramakrishna, K. (2009). Strategic management and business policy. London: Excel Books India. Sekhar, G. (2009). Business policy and strategic management. New Delhi: I. K. International Pvt Ltd. Appendix 1 Read More