Strategic Marketing Planning - SportUNE - Case Study Example

Strategic Marketing Plan II: SportUNE’s Case Student’s Name Institution Introduction SportUNE is considered to be one of the most formidable sporting precincts in the entire of Australia. It offers various sporting-focused activities that are flexible in nature (SportUNE, 2013). Established in the early of 1920’s through the University of New England, Australia, SportUNE is offered through numerous state-of the art complexes that allow for activities based on sports, exercise and health-related programs (SportUNE, 2013). It also offers educational programs aimed at producing graduates highly conversant with modern levels of exercise and sporting. Strategic Market Program for SportUNE The strategic marketing idea for SportUNE is focused on the fact that it has already availed its products and services to the existing sporting industry in Australia. Thus, the fundamental strategic marketing program for the entity would involve the retaining of current customers and also, acquisition of newer ones by word of mouth. SportUNE’s current customers would be retained through such aspects as being able to maintain their level of satisfaction, adhering and providing to the expectations of the underlying product competition and through the creation of increased relationship forms of marketing. Acquisition of newer customers would be met through addition of product line extensions, use of discounting on products and also, by way of selling respective products and services by way of bundling, which involves the sale of the products together at a relatively lower price. Following this line of reasoning, the proposed strategic marketing program rests with the provision of both old and new services to customers in order to maintain a steady flow of profits and sales volume by way of engaging both the staff and students into an affiliate program so that marketing is done by word of mouth (Shahin and Mahbod, 2004). Product Life Cycle There are four distinctive stages in product life cycle that attribute to numerous characteristics affecting business operations, which are in the course of trying to manage the life cycle of their fundamental products. These four stages of product life cycle are discussed as follows; first, there is the introduction stage. This phase is considered to be the most expensive phase for any given firm that is in the business of launching new products into the market (Walker, Gountas, Mavondo & Mullins, 2011). The underlying size of the market for the product and services at hand is relatively smaller, which translates to lower levels of sales volume however; there is a great chance of increasing sales in future. Notwithstanding, the underlying cost of such activities as R&D, consumer testing as well as the marketing programs needed to introduce the product or service to the consumer is considered to be relatively higher especially when operations are conducted in a competitive environment (Walker et al, 2011). Second, there is the growth stage that is characterized by a stronger sales volume and profit base given that the firm is now able to benefit from substantial economies of scale in production. This makes facets allows for a firm to put more investments towards promotions for purposes of ensuring that there is maximization of growth. Third, the product life cycle is defined by maturity phase. At this stage, the product and services of a given are deemed to have been established within the market and thus, the fundamental objective rests with maintaining and sustaining market share that has been developed over the years. It is ascertained that this stage forms a most competitive period under which businesses are advised to invest cautiously in any form of marketing activities they undertake (Walker et al, 2011). Significantly, at this stage, immediate product notifications are encouraged or in other cases, a business is advised to engage in product and processes improvements for purposes of ensuring a clear and definite competitive advantage. Fourth, the cycle is described as a declining stage, which is characterized by shrinkage of the products and services of a given business. This shrinkage of the products and services might be attributed to saturation of the market that is brought about by full purchase by all customers or it can also be as a result of customers shifting purchase to competitors (Walker et al, 2011). For SportUNE case, the affiliate marketing program that rests with retaining of old customers and acquiring newer ones through such aspects as bundling, product line extensions and creation of distinct relationship marketing with old customers falls under the third phase of product life cycle (Walker et al, 2011). This is depicted by the fact that SportUNE has already established its market in physical fitness and provision of exercise-related degrees. Thus, the fundamental objective for the business should be focused on product line extensions and also, aspects of processes improvements in order to secure a competitive advantage over local gyms and other institutions that avail the same product and services to the sporting marketing (Walker et al, 2011). The business should ensure that sensitive decision making process is adhered while investing in any given form of marketing campaign. New Market Entry In entering a new market, a business is exposed to all kinds of risks especially since it is not conversant with effective methodologies that should be employed to attract huge sales and therefore, break-even. Uncertainties within a new market might force a new business venture to either fail terribly or learn new ways of satisfying customers. Affiliate marketing program, which is a strategic marketing program proposed for SportUNE to attract new and maintain old customers, might prove effective in ensuring entrance into a new market altogether. Coupled with effective word of mouth strategies, affiliate marketing program might help in introducing other sporting related product and services offered by them to a completely new market niche. This form of strategic marketing is effective given that it is cost effective since marketing campaigns do not utilize company’s resources rather uses staff and students to refer prospective customers into purchasing new products and services. Significantly, new product lines that are proposed by the facility can easily reach and enjoy market performance through the affiliate program that allows the existing consumers of the product to recommend them to both existing customers who are unaware and also, alert new ones promptly. Pioneer Strategy For SportUNE’s strategic marketing program case, follower strategy would be employed given that the business is in a process of becoming a dominant in both the sporting and education industry. Affiliate marketing program would be much efficient for this kind of strategy since such partially dominant businesses like SportUNE, despite having fewer benefits in comparison to the largest businesses within the sporting industry, possess some favorable attributes that can be perceived as strengths (Walker et al, 2011). For instance, the institution enjoys an insignificant level of bureaucratic rules and regulations hence allowing it to adapt and respond quickly to immediate consumer demands that help attract old ones and attract newer ones. It is ascertained that pioneer focused proficiencies emanates from such aspects as technological efficacy, intrinsic market research and also, skillful product or processes improvements. In the case that the aforementioned pioneer proficiencies are maintained and also integrated within a pioneer’s corporate culture, then it is certain that an improvement would be perceived in regards to continual patterns of investments in matters related to product improvement and development, which puts much emphasis on fundamental levels of innovations (Walker et al, 2011). In consequence, competitive advantages, for pioneer proficiencies, are developed and sustained through such aspects as routine and predictable activities. For instance, market pioneers that engage in historic levels of research and development skills are more likely to experience an increase in minor projects that is characterized by product and process improvements as well as extensive product line extensions (Walker et al, 2011). The affiliate marketing program for the marketing of SportUNE products and services would entirely be executed on mass market coverage mechanism. The idea is to allow as more people as possible to have necessary knowledge and enlightenment on the existing products as well as on possible product line extensions. The relevance of mass marketing strategy in promoting the products and services of SportUNE through affiliate program rests with the following aspects; there is a potential probability that existing products and services as well as extensions will enjoy a significant level of audience. The degree programs on physical exercise as well as the provision of physical exercises life styles should be availed to all potential consumers regardless of their income and gender. This would ensure that a successful sales volume hits would be made in comparison to when the focus is made on niche marketing. The entire process of mass marketing is less risky given that losses are minimized as efforts are made to cover wider areas. Affiliate marketing for SportUNE would not face such extensive risks since the manner of campaign is wide and covers all people within the market regardless of their incomes. This means that in case efforts in one specific target fail to materialize, still the ultimate loss would be insignificant in comparison to when the efforts would have been specifically focused. The facility would enjoy lesser marketing cost since affiliate marketing highly depends on word of mouth and other affordable marketing platforms as digital and online media. Significantly, there is a higher chance that the facility would enjoy immense sales volume as well as efficiency of scale within the rather market presence. It is important to realize that pioneer strategies for this strategic notion with the customers would transpire to development of minor projects (Walker et al, 2011). First-mover pioneer strategies emanates whenever customers are experienced with the brand at hand. Consequently, SportUNE adoption of pioneer strategy to affect its affiliate marketing model would allow it to engage in shaping customer tastes and preferences in favor of its product characteristics. This underlying strong connection between the facility and the customers, in turn, has the effect of motivating the facility into engaging in minor projects relating to product innovations (Walker et al, 2011). Growth Strategy For SportUNE new affiliate marketing model notion, it would be safe to continue with the pioneer strategy coverage that is well integrated with market expansion strategy. Currently, SportUNE covers a localized area that covers a limited area. Thus, for purposes of ensuring that the expansion strategy for its related products and services is executed successfully, a number of ways would have to be adopted. First, expansion can be fairly executed by way of increasing the facility’s sales, products and services to the immediate existing market at hand. This will involve engaging in the adoption of effective pricing strategies like premium and discount pricing depending with the affiliate’s position within the model at hand. There should also be improved marketing techniques for the facility’s fitness products and services like integrating social media platform to enlighten the public of an affordable product offered by the facility. Market expansion can also involve the introduction of a new product line into the existing market. This can be in the form of a change in the manner for which services related to physical exercises are offered to customers. It would require the facility to collect substantial level of customer feedback in order to ascertain the perfect way to deliver new products or services. The new product should be launched for purposes of ensuring that there is value addition and also, that the facility takes into consideration the immediate plight of its existing customer base. Subsequently, the expansion can involve the development of a newer market segment for the existing products and services. For instance, the affiliate marketing model can embark on targeting a certain clientele base in relation to their income levels so that they can facilitate the already mass marketing coverage being conducted by the facility. Despite of the fact that the market segmentation might pose challenges attributed to pay-off risks, the methodology is deemed a formidable way to expand. Consequently, the most formidable manner for which the facility can embark on market expansion is through engaging in activities related to product innovation in order to attract those customers that are using competitive services (Walker et al, 2011). Product and service innovation would require the facility to tailor their processes in order to meet the specific needs of the customer at hand. On a contrary, the facility might decide to grow internationally by way of partnering or establishing regional institutions. The main idea behind going international rests with increasing the platform of customer spending hence attaining a significant economies of scale and also, it facilitates a favorable business environment. Affiliate marketing model might transpire fairly well when it is able to campaign on international platforms thus attracting foreign customers into the facility or for purposes of developing a significant platform for creation of international subsidiaries. Shake-Out, Mature and Declining Strategies for SportUNE Shake-Out Stage; At these markets, the strategic implications of the product life cycle involve the following; first, there might be a failure to foresee successful transition from growth to maturity. In this case, such businesses like SportUNE would likely develop unrealistic forecasts in relation to future sales for its products and services and as a result, they embark on expanding at a faster rate prompting the production capabilities to overshoot demand while the resultant growth is taken aback (Walker et al, 2011). Significantly, the excess that is created due to rapid production translates to higher levels of costs per unit. Second, at this market there are no clear and distinctive frameworks for competitive advantage leading to slower growth. It is established that businesses are likely to succeed in their operations in cases of weak competitive advantages especially in periods when there is a witnessed rapid growth (Walker et al, 2011). Retrospectively, businesses that experience higher level of costs or superior offering in regards to quality of their products or services are likely to face challenges attributed to sustaining their respective market shares as well as volume leading to slower growth and increased competition. Third, at this market, assumptions are made that an early benefit will cushion a business from aspects of price and competition. This means that in the event that customers are able to perceive that the immediate quality of competing brands has been equalized would result to attaching greater comparison on both price and service differentials (Walker et al, 2011). Thus, failures on the part of a market pioneer like SportUNE to detect such unfavorable patterns might likely leads to complacency and also, respond slowly to imminent competition threats. Fourth, at shakeout market there posits a need to sacrifice a business market share in order to enjoy short-term profits. This is especially true whenever a business embarks on cutting down on its immediate expenses for purposes of sustaining an historical profit level (Walker et al, 2011). The strategic choices at shake-out stage involves sustaining businesses immediate competitive advantage through such aspects as low costing or product differentiation and also, concentrating on satisfying customers. A business can also embark on pursuing growth opportunities through initiative brought about by market expansion strategies (Walker et al, 2011). Mature Stage At this stage, the business enjoys a stable sale volume that comes from stable loyal customers. Significantly, the possibility of formulating almost accurate future sales forecasts is certain prompting to the business engaging in optimal production (Walker et al, 2011). The most formidable strategic options that befit this stage involve increased market penetration through constant addition of newer users. This can be fairly done through product line extensions, increasing the distribution base and also, introducing added value services. A business might also embark on a strategic choice that focuses on extended use, which is focused on increasing user base or their respective frequencies of product use (Walker et al, 2011). This might be effectively achieved through product line extensions and engaging in robust promotional campaigns for company’s products and services. Declining Stage This is the last stage of product life cycle. It is characterized by such aspects as faster rate in the decline of sales revenues and also, poor customer base. This phase is affected by immediate changes in customers’ tastes and preferences as well as introduction of newer regulatory policies like environment protection act that will likely affect the business environment (Walker et al, 2011). The most formidable strategic choices that are available for this stage include; liquidation where the only option is to sell the underlying business venture. Maintenance can also be practiced whereby share of the business is held for a short period. Furthermore, profitable survivor is another formidable strategic choice for the business at hand where weaker competition is encouraged to quit the industry hence increasing the share base of the declining market. Relevance of New Strategies for Serving New Economy Markets: SportUNE First, given that SportUNE focuses on availing product and services attributed to physical exercises, the emergence of digital products will serve an effective role in availing them to even wider economies throughout the globe. For instance, the facility might embark on operating a digital academic platform where students from all parts of the globe are able to learn and acquire degree programs in physical-related activities. Consequently, the facility might establish an online website where subscribers across the globe will be able to accesses newer healthy lifestyles coaching videos at a fee. Also, the facility can go ahead and develop internet based applications for user to access physical exercise related materials anytime they need. It is important that facility adopts variability in the manner for which it conducts its product promotions. For purposes of reaching out to newer markets, a fairly integrated marketing campaign can be introduced in order to reach a wider audience. Such platforms like social media and celebrity endorsements have proven effective in promoting sales revenues. Effective changes can also be undertaken in regards to the provision of customer services and support mechanisms in order to access information pertaining to changes in their respective tastes and preferences. It is important to note that under the new mechanism, SportUNE would also be able to access immediate form of feedback that pertains to customer’s needs, which is a positive matter in bringing about efficient trust and customer relationship within the newer economy markets. Another formidable manner for which SportUNE can easily penetrate new economy markets is through exercising a distinctive variability in product campaigns. The business can embark on such advertising strategies like TV ads, Banners and also, through magazines. The medium of advertisement in this new economy markets depends with the popular channels that the population and potential customers use to access information. Organizational Structures for SportUNE The business level of management can be represented as top, middle and lower management in nature. The top management level for SportUNE will be represented by senior executive employees. These executives are tasked with higher levels of responsibilities that involve formulating a most formidable direction for the company to assume (Walker et al, 2011). They also ensure that organization’s goals and objectives are attained within any given moment in time. The chief executive officer is a fundamental leader that depicts top-level manager. Notably, SportUNE middle-level managers are tasked with the responsibility of linking top management to the rest of the organization. They should be engaged in the creation and implementation of strategic action plans that are useful for attaining organizational objectives that are set by top management (Walker et al, 2011). Lower level management team for the facility should be comprised of supervisors that are selected by the middle level managers for purposes of directing and developing morale for the entire workforce. It is important to note that since the facility; SportUNE focuses on the provision of physical related products and services, a product management basis should be deployed. This means that the facility will execute its immediate operations in regards to the products and services being offered at any given time. Marketing Plans The idea that is being analyzed for this case rest with affiliate marketing model for the products and services being offered at the facility, SportUNE. SWOT Analysis Strengths First, the facility is fairly-equipped with state-of-the-art equipment and personnel that are useful for its area of operations; physical exercises. Second, the facility boasts of a wide customer base that enjoys greater levels of amenities like the canteen. Weaknesses First, the facility is limited to the provision of only physical related programs, which means that potential customers that might be interested in other areas would not have a chance. Second, the facility operates under an industry that is highly porous given the intense level of competition from other local facilities like gyms. Opportunities First, the facility can focus to avail its products on a wider market platform given the highly developed digital platforms. Also, the facility can go ahead to broaden its educational programs in order to meet the needs of the surrounding community. Threats The major threat the facility might be exposed to rest with the intense level of competition from such local facilities like gyms. Cost Benefit Analysis Costs; $ Development costs 450,000 Operating costs 1,500,000 Equipment costs 760,000 Total costs 2, 710,000 Benefits; Tangible Benefits 3,140,000 Intangible benefits 1, 120,000 Total Benefits 4,260,000 Marketing Metrics and Marketing Audit In regards to sale volume capacity of the facility, it is noted that the feature can be maximized in the event that the both internal and external stakeholders are involved. The level of customer satisfaction is an aspect that will help trigger sales volume to higher levels given that satisfied customers will likely refer others to the facility. For this case, phenomenon customer satisfaction is dependent on the quality and value for money offered by both the products and services of the facility. It should also be noted that satisfied customer’s forms the bulk of repeat purchases, which has a way of increasing sales volume at any given moment in time. The fundamental market audit of the company rests with its ethical audit. These forms of audits are conducted in order to ascertain that SportUNE’s internal processes are reliable and validated for that matter. In conclusion, from the discussion it can be seen that the idea being argued relates to affiliate marketing model that forms a distinctive strategic marketing model for SportUNE. A pioneer growth strategy is distinctively analyzed for purposes of ensuring that the facility is able to maintain older customers while attracting newer ones. The facility’s organization structures are based on the three levels of management; top, middle and lower levels management. Significantly, the discussion also takes note on a marketing metrics that is focused on sales volume and its immediate strategic relevance to the aspect of customer satisfaction References SportUNE. (2013). Sports prospectus: University of England, Retrieved from http://sportune.uberflip.com/i/123771/1 Shahin, A and Mahbod, M, A. (2004). Prioritization of key performance indicators: An integration of analytical hierarchy process and goal setting, International Journal of Productivity and Performance Management, 56(3), 226-240. Walker, O.C., Gountas, J.I., Mavondo. F. T. & Mullins. J. W., (2011). Marketing strategy: A decision-focused approach. (2nd Ed.). North Ryde: McGraw-Hill Read More