Greenins-Coowin Composite Wood Products - Case Study Example

Branding Campaign Name: Tutor: Course: Date: Executive Summary Western Australia is one of the fastest growing markets for homeownership and construction. Greenins-Coowin is a brand specialized in composite wood decking. It has satisfied the market in Singapore by being the market leader of 100 percent eco-friendly wood products. The brand is making entry into the Western Australian Market and is in the process of establishing an effective branding campaign. The first section introduces the brand and its engagement in Singapore The second section explores the current market trends in the decking industry in Western Australia by establishing the trends of homeowners, existing homeowners desiring extensions and increased number of builders specializing in composite decking. The third section looks into the profile of customers and the target market. It provides the characteristics of the customers and their behavior The fourth section obtains the branding analysis which also unravels branding strategies and branding systems. It also lists down branding objectives. The last section makes some recommendations on how the brand will venture into the Western Australian Market. Table of Contents Table of Contents 3 1.0 Background of the Brand 4 2.0 Current Market Situation/Trends 4 2.1 Competitor Evaluation 9 3.0 Objectives 9 4.0 Brand Analysis 10 5.0 Recommendations 11 Reference list 13 1.0 Background of the Brand Greenins-Coowin composite wood brand is based in Singapore and popular in some parts of Asia. It’s a brand of Alliancz International which handles regenerated and enhanced products from natural wood. The brand produces decking products which are water, fire and corrosive resistant. They can withstand deformation, nailing, gluing or painting malfunctions offers very short material and duration execution. It is not susceptible to air pollution and the additional execution cost is little (Schept, 2010). The products have indoor and outdoor applications such as decking, trellis, ceiling wall cladding etc. Some of the customized decking projects are sea-scape, residential projects, KTP hospital, and Skyline 360. The company has the material and human capital competencies to handle huge and complex projects. The staff is also adaptive to new environs and consistent in producing and maintains quality products and services (Alliancz International Ltd, 2013). 2.0 Current Market Situation/Trends The current market conditions in Western Australia will be assessed and evaluated based on trends and the impact of competitors. This will comprise the target a new market of homeowners and builders. Traditional market was mainly the public and private companies involved in massive construction and decorations (Harris, 2009). In Western Australia, statistics show that in 2012 and 2013, there were 2450 new homeowners with more than 125 builders. This was a rise from the lows of 2009 and 2010 at 1855. With favorable economic conditions and employment, the government of Western Australia has provided an incentive to new home owners in the form of subsidized imported wood materials. The trends of new home owners and builders for the last five years are as shown in the graph below; (Source: Australian Bureau of Statistics, 2013) Figure 1: Market trend of new Homeowners, extensions and builders From the graph above, it shows that there is a growing market for new extensions to old building using decking materials and also increasing number of new homeowners who have found decking as very attractive (Kotler, Michi & Pfoertsch, 2006). Popularity of composite wood decking has also increased among businesses intending to establish resorts and hospitality services (David, 2011). This has been a common trend for outdoor applications in Perth where visitors would love to sit back on wooden decking adjacent to swimming pools. (Source: Australian Bureau of Statistics, 2013) Figure 2: Popularity of Natural wood to composite wood From the figure above, it shows that composite wood has superior features as compared to natural wood. The general trend is inclined to composite wood which is a credit for Greenins-Coowin which has specialty in composite wood products and finishes (ABS, 2013). The economic environemnt in Australia is favorable for growth and unemmployment is at its low at 11.8%. Interest rates are also low and determines the performance of businesses in Western Australia as products are imported from Singapore (Picasso, 2009). (Source: Trading Economics Australia, 2014) Interest rates have been on the decline in the last for years while unemployment rate has been steadily rising. Interest rates are likely to influence borrowing and investment on stocks within Western Australia. Besides, young people are able to buy homes at lower interest rates. However, work pattern dynamics is making it difficult for households to retain homes (Schept, 2010). Increasing unemployment means that the minimum wage will be lower as more job seekers consider reduced wages on contractual agreements. Overall, there has been a general trend towards composite decking especially on outdoor applications (Srivastava & Thomas, 2010). This means that Greenins-Coowin will find a favorable market and conditions to obtain customers and expand to uncharted territories. Western Australians like the rest of Australians aspire for the ‘Great Australian Dream’ which is through ownership of a detached house built on a fenced block of land. Politically, this is seen as being a responsible citizen and having a stake in nation building. 70 percent of Western Australian households live on own homes since the federal government encourages home ownership by provision of tax incentives (ABS, 2013). More than 55 percent of low-income and 80 percent of high income households live in their own homes. Australian suburbs demonstrate socio-economic co-existence unlike those of Britain and the US. (Image: Alliancz International, 2014) Figure 4: Palatial homes preferred by new homeowners in Western Australia 1) Consumer Profile / Target Market The target market is mainly hoteliers (hotels and resorts) and homeowners. Builders buy for these three segments. The most lucrative are the homeowners because they are motivated and determined to own homes (Srivastava & Thomas, 2010). The customer profile of homeowners is as shown in the table below ID Homeowners Hoteliers Age: 25 to 40 years 35 to 60 years Gender: Married male and female members Couples with grown children Marital Status: Couples or Single with one or two children Married or single Family composition: Nuclear families of utmost five members Currently living as a couple Education: Professionals and most are degree holders or college educated from the various universities and colleges in Western Australia and other states. College certificate and years of experience and acquisition of technical and hands-on jobs. Income: Couples consist of working professionals earning a combined income of AUD$10,000 per month. Business income of AUD$120,000 per month Residential areas: Currently living in inner city and aspire to relocate to suburban areas once they own homes Live in suburban areas Psychographic factors Prefer lawn mowing and tending flowers in own compounds. Love reading beneath cool shades. Preference of sitting on the floor while watching a TV or talking to friends Like resting on the deck watching the seashore, prefer composite decking for their ceiling and yards. The target market is huge and includes more than 2500 new homeowners each year and more than 150 existing resorts and hotels intending to have decking extensions (ABS, 2013). Homeowners have aspirations for mansions and bungalows while hotels will go for 3-5 star constructions. They have huge appetite to consume industrial materials and furniture. Some of Greenins-Coowin successful hotel and residential decking photos (Image, Alliancz Int.) Hoteliers have bigger demand for decking services compared to homeowners but they comprise a smaller market compared to homeowners (Manning et al. 2007). To increase the market share and profitability, it will be wise to increase the coverage to new and existing homeowners who are getting acquainted with decking products. 2.1 Competitor Evaluation The major competitors are Deckmaster, Jarrah decking and Grand Rodwell. They remain some of the major competitors in Western Australia Decking business (Pablo 2009, 77). Deckmaster provides quality, innovative fastenings systems in construction. It distributes Stainless Steel Concealed Decking, Deck Bone End, Weather Strip and Match Joiners. The deck installer is faster and provides long lasting and superior deck finishes especially to home owners. Grant Rodwell uses premium materials for a perfect finish (Ashworth and Kavaratzis, 2010). It has skilled and experienced installers able to delight DIY tradesmen and enthusiasts in Timber, Composite and Passport decking. Customers perceive it as an expensive brand hence become price sensitive when quality is very close to being differentiated. Jarrah decking does flooring and floorboard decking in which they sell directly to the public. It provides outdoor and remilled decking of high quality. However, it has lean financial base and limited range of products. The opportunities for homeownership in the form of tax incentives have brought in other few competitors. Fortunately, Greenins-Coowin uses 50 percent of recycled materials hence increased tolerance and environmentally friendly processes. This will be acceptable in the long-term by the environmental department (Kotler, Michi & Pfoertsch, 2006). 3.0 Objectives a) To develop a new brand extension for Alliancz International’s decking products for market entry into Western Australia in the next six months. b) To build and develop a brand identity for the new brand in Western Australia in the next two years. c) To build visibility and awareness for Alliancz International’s decking brand to at least 20,000 people. 4.0 Brand Analysis Brand Analysis Brand Strategy Brand Systems Customer Analysis: The primary audience is homeowners and hoteliers while the secondary audience remains builders and construction regulators. The key influencers are the media and existing homeowners. There is increased desire for homeownership and construction of decking services. The demand for composite decking is on the increase in Western Australia. The brand is perceived as environmentally friendly, sound quality and beyond excellence (Bredenberg, 2009). Competitor Analysis The Points of Parity (POP) are in use of recycled materials, fire and water resistant materials. The Point of Difference (POD) is in the percentage of recycled materials and the price of decking products. Greenins-Coowin uses 50% recycled materials which are inclined to quality and performance. Cost of manpower is cheaper in Singapore than Australia. The competitor brands are positioned as customized and innovative in the Western Australian Market. The brands personality is appearance in multiple colors hence behavior (Anholt, 2006). The brand promise is inclined to application both indoors and outdoors. Current brand audit The current brand is effective and sustainable with a listening personality. It is positioned to create a lasting impression in the mind and heart of customers. It has seven years in existence with excellent and well trained staff. Lean financing limits its expansion but may benefit from increased market demand. The values are customer focus, integrity and reliability. Market position Greenins-Coowin will be positioned as 100% eco-friendly and adaptive to the needs of Western Australian customers. The point of difference (PoD) will be pricing which will be customized and localized depending on the customer. The brand is well established and endowed with the best staff in Singapore. Value Proposition The benefits of will be improved brand perception regarding its performance and quality. Customers will be emotionally stable and so will be the brand. The brand will have a green label and showcase some of the successful architecture (Manning et al. 2007). Verbal system It will bear the name ‘Greenins-Coowins’ under the descriptor ‘composite wood’. Domain name will be info@greenins-coowin.au Visuals System Digital Templates Web: www.alliancz-intl.com Blog: greenins-coowins blogs Audio logo: Composite wood Printed stationery Letterheads, business cards, envelopes and note cards Office templates Memorandum, reports, eBook and invoice Event, advertising and signage will be observed 5.0 Recommendations a) The brand should seek for a joint partnership with reputable dealers in the distribution channel such as suppliers and retailers of decking products. This will protect the brand from being tainted by low reputed firms b) The company should retain the name ‘Greenins-Coowin’ since it is already established in the Singapore market and has a goodwill in the Western Australian market c) The brand should specialize in the homeowners target market since it is huge and steadily growing d) A substantial marketing budget should go into advertising and promotional activities. This will be about 40% of the budget. e) The branding personality and promise must be consistent to all customers irrespective of the income or ethnic affiliation. f) The company should locate an office in Perth and advertise through the major TV and magazines in Western Australia such as Golden West Network, ABYZ News and Seven West Media. Reference list Alliancz International Ltd. 2013. Greenins-Coowin Composite Wood Products, Singapore. Anholt Sam. 2006. Competitive Identity: The New Brand Management for Nations, Cities and Regions, Palgrave MacMillan. Australian Bureau of Statistics. 2013. Australia Social Trends 2012: Housing-Housing Stock: Housing the Population. Bredenberg, Johns. 2009. How to Cheat at Home Repair: Time-Slashing, Money-Saving Fixes for Household Hassles and Breakdowns, Sterling Publishing Company, Inc. Coowingroup China. 2014. About Coowin. http://www.coowingroup.com/ David, Fred. 2011. Strategic management: concepts and cases (13th ed). Upper Saddle River, NJ: Pearson Prentice-Hall.  George Hopkins and Charles Goodwin. 2011. Living Architecture: Green Roofs and Walls, Csiro Publishing. Graig Ashworth and Mark Kavaratzis. 2010. Towards Effective Place Brand Management: Branding European Cities and Regions, Edward Elgar Publishing. http://brainzooming.com/16-articles-on-defining-brand-strategy-and-business-branding-topics/11648/ Harris, Arnold. 2009. Design at the very core. Engineering & Technology, 4(16), 60-62. Hybrideck decking systems. 2014. Composite decking products online. http://www.hybrideck.co.nz/composite-decking Lenny, Anderson, Tom Heebink, and Alice, Oviatt. 2002. Construction Guides for exposed Wood Decks. Agriculture Handbook No. 432. Washington. Forest Service. Manning, Hans., Temkin, Bonn., Bodine, Ken, Dorsey, Meth, & Geller, Stanley. 2007. Topic overview: customer experience. Forrester Research. Mary Glynn and Woodside Arines. 2009. 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