The Marketing Strategies for Learn to Surf Strap - Case Study Example

Marketing Plan: Learn To Surf Strap Executive summary The marketing plan prepared as part of the requirements for the marketing management course. It contains a situational analysis of the internal and external variables that are likely to affect the marketing of learn to surf strap. The paper also outlines the various strategies to be used to achieve the objectives. The final part of the plan discusses implementation, evaluation and control and then ends with a conclusion. The accompanying objectives and strategy are outlined as: Objectives To achieve 35% market awareness within one year of launching To achieve 30% sales within one year To become the leading provider of children surfing training equipment Strategy The strategy of the product is to set itself from its competitor, by using a unique product development strategy, pricing strategy, distribution and promotion strategy. These strategies are discussed in detail within the content of the paper. Table of Contents Executive summary…………………………………………………………………………….1 Introduction…………………………………………………………………………...……… 4 Situational analysis…………………………………………………………………………….4 Customer environment ………………………………………………………………..4 External environment……………………………………………………………… …5 Competition …………………………………………………………………………..5 PESTEL framework …………………………………………………………………..6 I. Economic growth and stability………………………………………………...6 II. Political trends………………………………………………………………... 6 III. Legal and regulatory framework ………………………………………………6 IV. Technology trends ……………………………………………………………..7 V. Environmental trends…………………………………………………………...7 SWOT analysis …………………………………………………………………………………7 I. Strengths………………………………………………………………………………..7 II. Weaknesses……………………………………………………………………….……..8 III. opportunities ………………………………………………………………………..…..8 IV. Threats ………………………………………………………………………………….8 Marketing strategy………………………………………………………………………..…….9 I. Primary target market……………………………………………………..……………9 II. Secondary target market……………………………………………………….…10 Product strategy/ unique selling points ……………………………………………….…10 Pricing strategy…………………………………………………………………………..11 Distribution/ supply chain strategy……………………………………………………....12 Promotion strategy………………………………………………………………………..13 Market implementation…………………………………………………………….……..13 Evaluation and control…………………………………………………………………….13 Recommendations……………………………………………………………………….. 14 Conclusion ……………………………………………………………………………….14 References ……………………………………………………………………………….15 Appendix ………………………………………………………………………….…….17 Introduction Learn to surf strap is a new product for helping young kids to learn how to surf. Learn to surf strap is a stylish tool that makes it easy to teach young children to learn how to surf safely. The product enables kids who are three years and above to stand on a surf board and ride on the waves. It was invented and developed by Mick Slattery a project manager in Loftus in New South Wales who also runs a surf company on the side (The new inventors 2011). The marketing plan includes a review of internal and external environment and provides recommendations for helping achieve the marketing objectives. The strengths and weakness of the product were identified by examining the company website and new inventor’s television show on ABC. External factors outside the company were scanned to identify the threats to avoid and opportunities that it can take advantage. This information is has been formatted into SWOT. The next part of the plan involves setting the marketing objectives that develops the marketing function into achieving its function. Strategies to achieve this are also given in the plan including implementation and evaluation process that should be undertaken. Situational analysis This is a review of the internal and external environment variables that will influence the market for learn to surf strap. Customer environment The value added by the product is aimed at people involved in water sports or have young children who would like to be involved in water sports. Research has identified that water sports is one of the major sports that people from UAE are involved. The United Arab Emirates has some good beaches that attract tourist with one of the main sports at the beaches being surfing. In the UAE, most of the people who go on holiday have to visit the beach as it is a major attraction. The people who visit the beach are families, and young children usually accompany them. Primary research via observation and that done by beach holiday companies indicates that the families who visit the beach enjoy water sports especially surfing. Going by this, there exists a potential market for a product that will help young children learn how to surf. The local population as well as the tourist who visit the beach creates a huge demand for this product. However, even if the product is introduced into the market the purchase intentions of the buyers may not translate into purchase behavior due to external influence like family, friends and online reviews as they influence the decision to buy. The website that has the details about the product enlightens the customers on how to use the product safely and easily through demonstrations which encourages people to buy. However, it does not rank highly in search engines as it does not interact with many people even via social media. External environment These includes an analysis of the competitors as well as the external variables that influence the market via PESTEL framework Competition Consumers spend their time and many in a number of ways. Leisure activities such as surfing compete for the consumer’s time as well as money. People in the United Arab Emirates have not been taking sporting very seriously. However, this has not reduced the purchase of sporting equipment. People still shop for sporting gear. In particular, the target market for people who engage in water sports are offered a number of other water sports equipments by competitors. While they may not be for the same purpose as learn to surf strap, it’s important to note that the customer has the ultimate power to buy whatever equipment that he thinks will offer them more pressure in water sporting. The main competition will be from shopping malls. which sell similar equipments. PESTEL frame work This is an analysis of external factors that have a potential to influence the market for learn to surf strap according to PESTEL framework Economic growth and stability Despite the recent global economic crisis, the United Arab Emirates has a good economic outlook in their trend (Nations Encyclopedia 2011). This is good because people will have money to head to the beach for holidays. The demand for learn to surf strap may increase from these. Political trends There are many assistance schemes that are available for business in the UAE. This is in terms of tax concessions as well as income offsetting. This type of financial support helps the new business to grow to new levels. Legal and regulatory issues The financial regulations and institutions make it easy for anybody to access business opportunities. This is an advantage; however, the low trade barriers to international trade, pose a big danger to the failure of the business. The product safety laws provide an opportunity as the product meets the standards required by law. Technology advancement The use of social media has increased in the United Arab Emirates. This provides an opportunity for market growth. The use of social media is one of the influential tools that are influencing what consumers purchase. Taping into the social medial would increase sales and also reduce the consumer’s perception of risk towards the product. Social cultural trends The increase in the population especially the number of families with young children is a factor that can influence the market positively (UAE interat 2011). The projection that the number of families is likely to increase provides an opportunity to lunch learn to surf strap. Environmental trends The beaches in the UAE are a critical factor to the success of product. If the beaches are destroyed, no one will be willing to visit them. The people in the United Arab Emirates understand the dangers and therefore take good care of their beaches SWOT analysis This provides a summary of the SWOT analysis for the product as identified through environmental scanning. Strengths Products can be sold direct to the consumers cutting down the cost of intermediaries and bringing distribution costs down. The product can be expanded further to meet the customer’s needs. The product is a fast moving consumer good; therefore, the company which sells the good can control the market. Weaknesses The product is new in the market therefore lack of marketing partners will lead to lack of awareness of the product. The product is for young children and, therefore, targets just people with young children. Opportunities The economic recession may force people to cut on international holidays and choose to spend in local beaches. This presents an opportunity for growth. There is an opportunity to form an alliance with other companies that supply sporting equipment within UAE. There are opportunities for increased market penetration particularly through government initiatives to promote tourism. Threats This is a single product to put into the market. The returns from the sale of the product might not justify starting the business. The use of social media poses a threat to the success of the venture because it influences the people’s decisions to buy. That means that it may slow down the purchases. There is a decrease in the number of people engaged in outdoor activities especially surfing. There are many older people who do not understand surfing and therefore may influence how the children view the sport. Market objectives The situational analysis identifies the opportunities and threats that the company should exploit or avoid respectively. This helps come up with the following marketing objectives that support the overall objectives of selling the product. Trying to achieve 35 per cent market awareness of learn to surf strap within one year of lunching the product as a water sports equipment. To achieve 30 percent market acceptance and sales in twelve months. To become the leading provider of children surfing training equipment. Marketing strategy When we look at water sporting in UAE, it’s important to distinguish between the different market segments for the product. This is because they have different needs from their customers. Under this plan, there is the primary market and secondary segment. Primary market The primary target market is the young couples aged between 20 and 44 years. These are the couples who like traveling to the beach with their young children for water sports. The potential market is mostly local people who are socially aware, technologically savvy, value their safety, budget conscious and enjoy surfing. The target market that has been identified embrace technology especially the internet as a tool of communication. The use of social media by this segment for communication will enable easier communication to inform, update and continually persuade them to buy the surfing equipment. While the product is not a necessity, it taps into the target market by providing convenience and safety needs of the user while training to surf. The average expenditure for recreation equipment for this target group has increased because of the need by young children for leisure. Secondary market The secondary target customers are consists of two group there tour water sporting clubs who have an interest in training on surfing and tourists who holiday on the beach with their young children. These two groups have demand for water surfing equipment emanating from their interest in training their kids to surf. Product strategy / unique selling points The main benefit that will be emphasized while marketing the product is its convenience and safety which enhance its ability to make learning to surf more enjoyable. The protected patent by the producer prevents imitations and substitutions from getting into the market. This guarantees the safety of the product and is reflected in the skimming pricing strategy. The brand name is recognized linguistically and reflects what the equipment does in helping the kids to surf. Differentiation –the convenience of use and safety elements differentiate the product from what the competitors provide. To maintain the competitive advantage, more value can be added to the product or to the company, to add more superior value in the market. The Ansoff’s matrix gives some of the methods on how to add value to the product or company (Ansoff 1957, p. 45). The first method to and value to the product is through product development. The product can be reshaped or redesigned for different groups of people including men, women, adults and kids. This will also help in development of a new market for the product. The packaging can be designed to be very attractive to help the customers in gauging the price and quality. The product can also be endorsed by the famous surfing clubs in the United Arab Emirates. These unique ways will help in marketing the product more effectively. In marketing, value is also recognized if it comes from the service element of the product. All the tangible evidences that show the existence and completeness of the service should be controlled. This will ensure superior customer satisfaction, and a positive image for the product. The strategy for controlling these includes providing longer guarantee, advice at the point of sale, many payment options and after sales service. Positioning – perceptual mapping, which is a method used to determine how the customers view the product, should be used (Connor & Tynan 1999, p. 342). The perceptual map should portray the product as quality with extended customer service. Pricing strategy The product should be introduced in a skimming price strategy to achieve an increase in sales over an extended period of time. The product should be introduced at a high price which should be reduced over time to target price sensitive customers. The pricing policy should also be maintained to reflect the quality of the product, to differentiate the product from competitors and to achieve a break even within the first 12 months (Dean 1950, p. 234). When setting the price it’s also important to compare prices with existing competitors. Offering discounts can be used to attract more customers, however, there is a danger of risking the product from being luxurious and enjoyable (Solomon et al 2009, p. 234). The best alternative from offering it at a cheaper price is to include more incentives to the buyer which will make him more open to buying. This incentive includes providing advice at the beach to surfers. Distribution /supply chain strategy The way the product is presented to the customer has a big effect in the mind of the customer on how he perceives. The best distribution strategy to start with is directly distributing to the customers. This will enable personal service, which is important in controlling superiority, price, and delivery. This will also help in collecting information about the customers purchasing behavior and to address the complaints by the customers. The second distribution strategy is organizing for the product to be distributed through retail sports stores. The advantage of these is that the person can physically see and physically see the product (Adcock, 2000 p. 78). The consumer is more emotionally satisfied as there is no distance between him and the distributor. The other strategy that can be used to reach a large market is using online marketing. This will generate customers from different locations. The problem with this method is getting easily found via search engines. To achieve good marketing via the internet where the product is visible in search engines the business has to strategize on getting web visibility. These strategies include setting up blogs, having enough content on the website, using the right key words, using webmaster tools and having more links to the website. Promotion strategy According to Percy (2008) to build the product brand and improve customer relations, there is a need to integrate the different promotional tools used by the business to communicate through different media to make the complimentary as well as consistent (p. 433). The main promotional tool to be used is advertising. The ads should be directed to customers and placed on websites dealing with water sporting or beach activities in United Arab Emirates. Secondary advertising will be done on magazines for beach activity. The adverts will be based upon the safety elements of the product showing how it’s convenient to learn using the product. Marketing implementation To implement the marketing strategies, there should be an implementation leader to manage staff and resources necessary to complete the plan. A consultant in web technologies is needed to implement web and social media strategies. Sales representatives should be employed to meet the marketing strategies. The marketing mix used should involve all the strategies discussed above. Evaluation and control The program for implementing the above strategies should also be evaluated and controlled for effectiveness. Control procedures should be in place to be measured with the declared objectives. Most of the evaluation can be done from the information collected by the sales representative and feedback from customers. Recommendations The business should start by developing a mission statement that is market oriented, realistic, motivating and specific to support the overall business objectives. The business should also differentiate and position the product effectively to have a competitive advantage. This should be done through competitive pricing, promotional campaigns, product development and good distribution strategies. Conclusion The product is new in the market, but it has great potential. Time and resources are needed to move the product to the market. The strategies outlined above should be properly implemented to achieve the goals of the business. Implementing the strategies properly will give the owner the financial support as well the satisfaction List References Adcock, D 2000, Marketing strategies for competitive advantage. Chichester, John Wiley and sons. Ansoff, HI 1957, “Strategies for diversification,” Havard business review, Vol. 35, No. 5, p. 113-124. Connor , P & Tynan, C 1999, “In sickness and in health: exploring and redeveloping measures of marketing effectiveness,” Journal of marketing management, Vol. 15, No.1, p. 733-756. Dean, J 1950, “Pricing policy for new products,” Harvard business review, Vol. 28, No. 6, p. 45-53. Dubai city 2011, Sports capital of the Middle East, Viewed October 20, 2011 Nations Encyclopedia 2011, United Arab emirates: future trends, Viewed October 20, 2011 < http://www.nationsencyclopedia.com/economies/Asia-and-the-Pacific/United-Arab-Emirates-FUTURE-TRENDS.html > Percy, L 2008, Strategic integrated marketing communication, Butterworth- Heinemann, Oxford. Solomon, MR, Marshall, G & Stuart, E 2009, Marketing, real people, real choices, 5th ed, Pearson education Australia, Frenchs forest. The new inventors (Television series) (2011). Melbourne. ABCTV The new inventors 2011, Viewed October 20, 2011 < http://www.abc.net.au/tv/newinventors/txt/s3169051.htm > UAE interact 2011, UAE population up by 65% in four years. Viewed October 20, 2011 < http://www.uaeinteract.com/news/default.asp?ID=134> Appendix 1 instructions on how to use learn to surf strap Read More