Marketing Plan: UNE Life - Case Study Example

Marketing Plan Name Institution Marketing Plan Executive Summary The major purpose of students joining university is normally to pursue higher education. However, efficient hospitality and social services such as entertainment, hotel and café services, sports and fitness, catering and fashion among others are highly needed to make education easier and enjoyable. University of New England management have realized that hospitality play a critical role towards success in education hence established a UNE Life program which ensure students get hospitality but a low prices. Therefore, this report will identify and analyze the significance of the mission, SMART objectives and strategies for the UNE Life. The report will describe UNE Life industry, its attractiveness, and analyze the relevance of the segmentation, differentiation, positioning and targeting strategies for the UNE Life businesses. Introduction University is not only a place of getting education but also to socialize, engage and interact with people from different parts of the worlds (Mahmood, 2013, p.78). To feel make the learning fun it is viable for the campus management to offer services which provide favorable atmosphere with needed facilities. University of New England (2013) argued that through the establishment of UNE Life, the University has demonstrated their commitment towards building happy students, staff and the general society. Therefore, this report will identify and analyze the significance of the mission, SMART objectives and strategies for the UNE Life. The report will describe UNE Life industry, its attractiveness, and analyze the relevance of the segmentation, differentiation, positioning and targeting strategies for the UNE Life businesses. The Mission, objective and strategies of UNE Life Blueprint to improve the quality and breadth of the university experience began in 2013 with laying a platform implementing of service offerings to the students termed the ‘UNE Life’ (University of New England, 2013). It fast started by bringing together Services UNE and Sport UNE to ensure that they offer a streamlined strategy to facilities and service provided at the university and improves students’ engagement. UNE Life (2015) claimed that a collaboration between these businesses led to the formation UNE Life in 2014 with a mission to offer a reliable and streamlined facilities and services at University of New England. The mission focuses on inspiring on-campus ambiance and activities for staff, students and to some extent the community in order to campus learning and life fun. Objectives and strategies UNE Life comprises of ten businesses which revolves around a wide range of services consisting of Sportline, sleek, campus essential, café life, graduation services, Belgrave Cinema, Yarm Gwanga, The Astro, Life Function and Catering and The Booloominbah Collection (UNE Life, 2015). Since every business offers different products or services, they have diverse objectives to meet. As the major reason for being in campus, student’s needs where they can shop stationeries and others related needs without necessarily wasting time to go to Armidale city. Therefore, University of New England has established Campus Essentials business to supply needs such as stationery supplies, phone cards, grocery items, dry cleaning, confectionery, milk, juices and soft drinks (UNE Life, 2015). As the name suggest, Campus Essentials, is a shopping hub with objective of offering students and university employees a chance to purchase essential products from Monday to Friday between 8.30am and 5.00 pm at low competitive prices. In return the university makes extra revenue for maintenance. According to UNE Life (2015), The Stro is another business which the university started to offer entertainment and bar service every Thursdays in four years students study at the University of New England. The business provides students with shuttle buses ride to attract and retain more customers. In addition, they provide fantastic music to help the relieve student from stress after a busy week of study. The university implemented this initiative with an aim of protecting their students from insecure bars with anti-social behaviors. SportUne is another business brought about by the university to offer sports service and facilities to students. UNE Life (2015) posited that this initiative provides facilities for fitness and sport including gym, football, volleyball, basketball, tennis, rugby and badminton courts seven days of the week. It also offers health workshops and training for both students and members of the staff at UNE (UNE Life, 2015). The objective of SportUne is to create a fit and healthy student community for a standard of four years they are in school. Fit and healthy students are normally active in class and are able to grasp much of the concepts which have been taught. The Booloominbah Collection has become a very population socialization place within the University of New England. UNE Life (2015) opined that the Booloominbah Collection’s objective is to enable students plan and hold special events such as birthdays, anniversary, and family get together, weddings and other parties without much hassle. The business is located in a place with security and spacious hall which can accommodate up to 300 people and provides catering, Dj’s, café, bar and dinner services (UNE Life, 2015). In general, UNE life’s objective is to enable students at University of New England to live fun and hospitable life during their study. Industry UNE Life and the five competitive forces UNE life is generally and hospitable initiative which host businesses in a wide range of industries including hotel, entertainment, retail, sports, education, groceries, fashion (UNE Life, 2015). All these business faces stiff competitive from their respective industries and ought to use various approaches such as prospector, analyser, defender or reactor strategies which matches strategic fit in order to gain competitive edge in the market. Porter (2008, p.79) claimed that competition in these industries can be evaluated through five competitive forces components’ like threats to new comers, substitutes, bargaining power of both suppliers and customers and competition itself. Threat of new entries All the industries in which UNE Life businesses operate are not regulated hence face high level threat of new comers in the market. For example, The Booloominbah Collection’s offers products and services which need less capital to establish which makes it easier for a new company to venture into such business in Armidale city. In addition, service offered like organizing a birthday, anniversary and leavers’ party “cannot be patented thus the company faces threat of competition from new market entrants” (Porter, 2008, p.83). To contain the competition in such hospitality and hotel industry, The Booloominbah Collection’s management needs to not only improve the existing products, but also develop new ones. Kotler and Keller (2013) argued that this approach gives the company to continue developing quality products and services, and is called prospector strategy. However, SportUNE faces low entry strategy since it needs high cost of land and facilities to start. Substitutes Whilst some UNE Life businesses faces high rate of threat to the substitutes, others face high rates of substitutes. Some of the business which face high threats of substitutes comprise of Café Life, The Astro, Life Function and Catering and The Booloominbah Collection, Campus Essenitals. Contrarily, SportUNe, the Astro sleek and campus essential faces has no substitutes. Café Life offers products and services such as fast-foods, drinks and breakfast foods which can be substituted with vegetables, soft drinks and juices. On the other hand, students cannot substitute sports and fitness activities for other services just they cannot substitute making their hair at Sleek for something else. Homburg, Sabine and Harley (2009, p.46) asserted that the companies which face high level of substitutes therefore must improve the quality of their products in what is called defender strategy to retain their customers. Bargaining level of customers Before the established of UNE life Businesses, students and members of the staff used to purchase various products and services in shops across Armidale city. However, they have been attracted new business ventures brought by UNE and enable them to shop inside or near the university (University of New England, 2013). Hollebeek (2011) contended that the presence of other businesses offering similar products means customers have high level of bargaining power because they have alternatives. It means the companies must adopt defender strategies such as lowering prices and effective advertisement as quality brands to gain competitive advantage and low bargaining power of customers (Shaw, 2012, p.35). Suppliers’ bargaining power Businesses within the same industry are so few both inside the university and in Armidale city where University of New England is located (University of New England, 2013). The situation implies that suppliers have low bargaining capacity hence cannot dictate or influence UNE businesses. Mullins, Walker and Boyd (2010) argued that to maintain low suppliers’ bargaining power, businesses must control the market through various tactics to scare entrants. A combination of prospector and defender strategies such as research, developing of new products, innovation, low prices and loyalty programs can work best to control the market (Johnson & Richard, 2010). Industry and the market attractiveness The industries where UNE Life businesses belong to are some of the most lucrative and attractive. For instance, sports and hotel, café and education today are regarded and some of the attractive industries due to the fact that many people seek products and services here (Reid & Bojanic, 2009). For instance, many people are joining sporting clubs for fun, for careers or for fitness. Similarly, the markets within the university have proved to be attractive due to demographic factors such as high population of students at the UNE. Products offered by these companies also resonate well with target market needs. UNE Life (2015) affirmed that students at the university often have interest on stationeries, fashion, sports, diet, entertainment and hospitality. The attractiveness is influenced by both macro and micro level factors. According to Mullins, Walker and Boyd (2010) Macro level factors consider technology, regulatory demographic, economic, social-cultural and natural factors. While population makes the market looks so attractive, economic factors create challenges to company sales since students do not have a stable income. However, UNE businesses have been able to survive because they offer even products at low costs. Alternatively, micro level environment such as the company, suppliers, and distribution centers, customers and intermediaries also influences UNE businesses (Mullins, Walker & Boyd, 2010). The management of UNE Life has created good image company so as to improve their sales. The strategy have paid offer as the companies have continued to attract many students. The relevance of the marketing research for the strategic decision-making of the UNE Life Kotler and Keller (2013) contended that marketing research is a very vital approach for the success of companies in the 21st century. Before the establishment of UNE Life businesses, the management carried out a research which helped them in finding out important information about the market (Chand, 2015). The information obtained from the market tells the marketing manager type of customers in the market, their age, population, attractiveness of the market and their needs. Therefore, marketing research is relevant to UNE Life business because enable them understand if it is viable to introduce a particular product to the market. Marketing research is also relevant to UNE Life businesses because it help managers to make marketing decision such as effective marketing mix (Chand, 2015). A business like SportUNE always needs to know the market prices to able to implement the rates which are viable to customers. Marketing research information has enabled SportUNE to implement a membership fee of $11 a week (UNE Life, 2015). The significance of the overall targeting, segmentation, positioning and differentiation strategies for the UNE Life With just one year of operation, UNE Life businesses have been very successful. However, Shaw, E. (2012, p,.42) stated that most companies under this initiative operate in some the most competitive industries hence must adopt strategies which will see them remain stronger in the market. Marketing experts suggest application of strategies such as targeting, segmentation, positioning and differentiation strategies in order to gain market advantages. Targeting has contributed to the effectiveness and success of UNE Life businesses. Targeting strategy has ensured the company settles for the right customers it can serve and meet their needs (Total Market Exposure, 2010). The market has been attractive because the companies have tailored their products to meet customer profiles. In this case, the students form the large customer target followed by staff and the community. Segmentation is close to targeting. However, Oasis500 (2013) argued that segmentation is deeper as it divided market into subsets based on their interest, aspirations and common needs. UNE Life therefore segments its businesses to suit particular needs of customers. For instance, SportUNE deals in sporting business, the company have facilities for different sports such as badminton, rugby, pool, squash and basketball among others. Another strategy which is significant in UNE Life’s success is the positioning. The company positions itself as a low cost business. For instance, SportUNE has low price membership of $11 a week (UNE Life, 2015). Frossell (1998) stated that positioning helps customers recall the brand in their minds. In addition, differentiation has also played part in the UNE Life’s competitive edge. Most businesses under this initiative differentiate their products and prices so as to create uniqueness and quality (Shaw, 2012, p.46). An example is Café Life which offers 10 percent discount on its products. Conclusion UNE Life businesses have brought ease and fun in the lives of University of New England students and the members of staff. The report has established that sports facilities, shopping mall, café, grocery, cinema and bar has been brought near the university that students no longer need walk long distance to look for products and services. On the other hand, these businesses have contributed towards to the income of the university hence effective services can be delivered. However, like any other business, UNE Life is likely to face more competition in future. Therefore, this report recommends for adoption of various exceptional strategies particularly segmentation, positioning and differentiation in order to maintain and increase its market share. References Chand, C. (2015). Marketing Research: Meaning, Elements, Areas and Objectives. YourArticleLibrary.com. Retrieved July 24th 2015 from http://www.yourarticlelibrary.com/marketing/marketing-research/marketing-research- meaning-elements-areas-and-objectives/30000/ Frossell, S. (1998). Perceptual positions. Rapport Magazine. Hollebeek, L.D. (2011). Exploring Customer Brand Engagement: Definition & Themes. Journal of Strategic Marketing, 19 (7), 26-43. Homburg, C., Sabine K., & Harley, K. (2009). Marketing Management - A Contemporary Perspective (1st ed.). London: McGraw-Hill Higher Education. 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. Mullins, J., Walker, J., & Boyd, H. (2010). Marketing management: a strategic decision making approach. Boston: A McGraw-Hill Irwin Oasis500. (2013). Market segmentation. Retrieved August 4th 2015 from http://www.oasis500.com/market-segmentation Porter, M.E. (2008). The Five Competitive Forces That Shape Strategy. Harvard Business Review 86(1), 78–93. Reid, R.D., & Bojanic, D.C. (2009). Hospitality Marketing Management (5 ed.). John Wiley and Sons. Shaw, E. (2012). Marketing strategy: From the origin of the concept to the development of a conceptual framework. Journal of Historical Research in Marketing, 4(1), 30–55. Total Market Exposure. (2010). Demographic Targeting. Retrieved August 4th 2015 from http://www.totalmarketexposure.com/demographic-targeting/ UNE Life. (2015). UNE Life Official Website. Retrieved August 5th 2015 from http://unelife.com.au/ University of New England (UNE). (2013). University of New England Annual Report 2013. Retrieved August 5th 2015 from https://www.une.edu.au/__data/assets/pdf_file/0007/68650/2013-Narrative.pdf Read More