Samteo Childcare Centre Marketing Plan - Case Study Example

Samteo Childcare Centre Marketing Plan Name: Unit: Course: Supervisor: Date of submission: Executive summary This paper presents the marketing plan for Samteo Childcare Centre, which was established in 2012 by Mrs. Hwang Yangbok, the childcare is located in Lidcombe, New South Wales. The market plan analysed the different aspects that will lead to the success of Samteo Childcare expansion Process. This included the analysis of the four stages of the product life cycle, the introduction, growth, maturity and decline and their role in ensuring maximisation of the returns on investment for the business to stay relevant. The market plan used the BCG and the Ansoff matrix to analyse the growth strategies for the Samteo Childcare Centre. This was based on the strategies set for business expansion. Objectives for he childcare centre were formulated based on the product life cycle, the BCG and Ansoff analysis, three objectives for the marketing plan were arrived and explained. After the formulation of the marketing plan objectives, the branding strategy that presents the image for the business and representation of the promise to the customers was laid down. This was done in line with the Samteo Childcare Centre mission, vision and the projected growth strategies. The marketing plan incorporated the strategies that the Samteo Childcare Centre is to apply in order to realise the objectives. The strategies for the childcare were anchored on the marketing mix of product, promotion, price and place. To achieve the strategies, the marketing plan provided a framework metrics that is to serve as the basis of analyzing the business process in achieving the four strategies. The framework was provided through a diagrammatic representation that shows the indicators to be used to assess each strategy. Finally, a conclusion on the importance of the marketing plan was drawn. Table of Contents Executive summary 2 Table of Contents 3 1.0: Introduction 5 2.0: Product Life Cycle Analysis 5 2.1: Introduction stage 5 2.2: The growth stage 6 2.3: Maturity stage 7 2.4: Decline stage 7 3.0: BCG matrix and Ansoff analysis 8 3.1: BCG Matrix 8 3.1.1: Question Marks 8 3.1.2: Stars 9 3.1.3: Cash Cows 9 3.1.4: Dogs 9 3.2: Ansoff analysis 10 3.2.1: Market Penetration 10 3.2.2: Extension of the market 10 3.2.3: New products 10 3.2.4: Diversification 11 4.0: Objectives 11 5.0: Branding Strategy and Branding Positioning Map 12 6.0: Marketing strategies 12 6.1: Product 13 6.2: Price 13 6.3: Promotion 13 6.4: Place 14 7.0: Marketing Metric Framework for the Strategies 14 9.0: References 16 1.0: Introduction Mrs. Hwang Yangbok established Samteo Childcare Centre in 2012. The childcare is located in Lidcombe, New South Wales, Australia. The childcare was established to tap into the business potential that existing due to vast majority of parents who are working and need a place that their children could regard as home from home. Since 2012, the childcare has continued to provide impeccable services to the children, which include early childhood training and good nutrition for the children. The childcare endeavors to continue providing the services and it aims to expand the market share by increasing the number of the children from the current number it has. This is a market for the Samteo Childcare Centre, the marketing plan covers the analysis of the product life cycle, growth strategies analysed by use of BCG and Ansoff analysis, branding strategy and positioning, marketing strategies and finally provide the marketing framework metrics. 2.0: Product Life Cycle Analysis A product has a life in the business and they undergo different strategies from the time they are new to the time they get old. The typical lifecycle of any product in a business is divided into four stages that are important for marketers in forecasting of the sales and projection of the market trend, each stage has unique characteristics that have different implication for the business (Bivainiene 2010, p. 409). 2.1: Introduction stage The introduction stage is the time when the product is brought in the market, customers have scant or no knowledge about the brand new product and hence, many consumers will not buy the product as the habit of the consumption are not yet developed. To ensure that the product is known, the marketing management of the business has to advertise and do promotions about the product (Arora & Stoner 2009, p. 274). Through this, the information will spread to the target customers and hence the number of the people seeking to acquire the product increases with time. Samteo Childcare is in the introduction stage as it tries to increase its market share. According to Bivainiene 2010 (p. 410) customer take time before they fully accept a service, they have to do a lot of comparisons before buying into a service. Therefore, Samteo Childcare is still not much known in the area, the childcare will invest in increased communication to ensure many residents know about the childcare and the inherent services it is offering. This will be supplemented by networking from parents who have already experienced the services. 2.2: The growth stage After intensive advertisement, which will create awareness, more potential customers will recognise the products that the business is offering. According to Arora and Stoner 2009 (p. 281) at this stage, the customers get interested with the product and utilisation of the product starts forming. It is expected at the stage the Samteo Childcare will experience exponential growth due to large volumes of the potential customers interested with he services. This stage is very crucial for any business. According to Bivainiene 2010, (p. 411) businesses are supposed to adopt measures that attract and retain customers at this stage in order to prolong its lifespan. Communication and promotion will be increased to positioning the brand image of the Samteo Childcare Centre. This will be by setting standards and increase capacity in terms of services and human resource that is expected to cater for the growing number of children who are likely to enroll in the childcare. 2.3: Maturity stage After experiencing the exponential growth, there product gains recognition from majority of the target customers. This means that the product sales stabilize and they may start to decrease as at this stage, the business is old enough and there are already many competitors entering the same market hence the market share may decrease (Bivainiene 2010, p. 413). Samteo Childcare Centre will set strategies to diversify the product and create new product lines in order to attract more customers and maintain the existing. Samteo childcare will have reached most of the target customers and hence the will integrate more strategies to keep on attracting the customers. The new strategies will involve increasing the services offered. This will include adding the age bracket for children and starting of Grade I level so that children graduate from childcare to the new level within. The provision of diversified services at this stage will ensure long attachment time for the consumers. 2.4: Decline stage This is the final stage of the product life cycle. The main characterisations of the stage is the sales volume of the product start to decrease due to the new products that are being introduced by the competitors (Bivainiene 2010, p. 414). At this stage, the Samteo Childcare important aspect will be to ensure that it retains the loyal customers. Therefore, repositioning of the brand at this stage will be very important in order to continue enjoying the market share. Arora and Stoner (2009, p.282) noted that for a business to stay relevant, the different phases of the product life cycle should be expanded by exploration of the brand identity and image issues. 3.0: BCG matrix and Ansoff analysis The growth strategies for a business are integral to the business in overcoming competition. In the product life cycle, the growth strategies are normally aimed at reaching the target market by measures that ensure that business is not overtaken by competitors, e.g. through product diversification. Samteo childcare growth strategy will be based on both the internal and external environment factors that affect the business. The following is an analysis of the growth strategies for the childcare by use of both the Ansoff Matrix an BCG matrix. 3.1: BCG Matrix The BCG is an abbreviation of the Boston Consulting Group, this a matrix that is applied in the assessing the position of a business in relation to the range of the products. Through the matrix, the management of the business is in a position to think about the services it has and make decisions on whether to continue offering the services or stop (Ghodeswar 2008, p.5). Samteo Childcare the main services include the normal day care for the children aged, training and child nutrition. The matrix is composed of four components which include the question marks, stars, cash cows and dogs. 3.1.1: Question Marks In a business, there are products that the business has to put in place. Some of these products normally have the potential to grow rapidly and hence end up using a lot of cash, however due to low market share the products do not generate the cash back hence they are marked by net high consumption. These products are represented by a question mark (Ghodeswar 2008, p.4). In the investment of nutrition, there is likely that this may consume lot cash. However, the food and nutrition service will represent the turning point for the childcare as it will serve as the attraction point. A business needs to analyse the products which are presented by question mark and establish if they are worth the investment, in the analyses, Samteo Childcare Centre, the food and the employment of the nutritionist implication will be assessed against the prospects of gaining the market share. 3.1.2: Stars These are the services that generate a lot of cash due to their relativity to the market share. The services under the star should be assessed to determine their returns, if stars have the potential of maintaining the market share they turn to be the cash cow during the decline rate of market growth (Ghodeswar 2008, p.6). For Samteo, the services provided will be geared attracting many customers and consequently generate revenue for the business. 3.1.3: Cash Cows These are real units provide returns on assets. The characteristic is that they generate more than they consume, they the source of profits for the business. They provide the money that can be used to turn the questions marks into being the market leaders (Drummond, Ensol & Asford 2010, p. 7). The attraction of many children will serve as the sources of income for Samteo Childcare Centre. 3.1.4: Dogs These represent the units that have low market share and subsequently low growth rate. The dogs tie money in the business and have minimal potential, to minimise the dogs, Samteo will endeavor to provide services that guarantee returns on investments. 3.2: Ansoff analysis Igor Ansoff designed this matrix, it entails classification of the different growth strategies for the business, it is thus integrated to the objectives that the business has set. The strategies include the market penetration, market extension, new products and diversification of the products (Cadle, Paul & Turner 2010, p. 16). 3.2.1: Market Penetration Samteo Childcare Centre strategies of the market penetration will be through advertising mechanisms and parent networking in order to reach many parents who are very busy and have not found a centre where their children are safe and well taken care. The penetration strategy will be aimed increasing market share and ensuring that the services being offered are of high quality and above the competitors’. 3.2.2: Extension of the market Samteo Childcare will increase the children base by introduction of its unique services to the market. Even though the competitors are providing similar services to the market, Samteo intents to modify the services, through employment of a nutritionist who will ensure the nutritional needs of the children, diversification of the products and increasing the age brackets for the children. 3.2.3: New products The childcare intends to increase the enrollment of the children by attracting and retaining the parents through modification of the products and introduction of new products to the market. For instance, childcare intends to increase new age category for the children and increase the working hours in order to cater for parents who are very busy and cannot pick their children by 5 pm. 3.2.4: Diversification Diversification entails provision of product to suit the different needs of the clients. The customers have varied needs which need to be met and ensure customer loyalty. Samteo Childcare Centre will develop services that satisfy the different target customers. This will entail having different products for the different market segments. The main segmentation of the market will be based on the age brackets of the children brought to the child care. Therefore, Samteo will not be providing blanket services for all the children. The services will be tailor made depending on the age groups and special needs. 4.0: Objectives Based on the product life cycle and the analysis of the business potential by use of BCG and Ansoff analysis, Samteo Childcare centre has the following there objectives that form the basis of the strategies the business is to undertake: 1. To ensure that the Samteo Childcare centre invests in services that will guarantee fast penetration to the market. 2. To introduce new product line as part of the diversification process, the product should create new demand. 3. To invest in the services those have the potential of high returns by ensuring that the services meet the divergent needs of the target customers. 5.0: Branding Strategy and Branding Positioning Map Branding strategy entails the process of creation of image that is unique aimed at propelling the business towards competing favourably (Sahaf 2008, p. 5). The branding strategy stems from the brand of the business which gives the customers a different perception from that of the competitors. According to Arora and Stoner (2009, p. 282) a good branding strategy is the key to a competitive edge. A brand serves as the business commitment to the customers. It gives the customers the assurance of what they are to get from the business. For the Samteo Childcare, the strategy for the branding will include: Setting up the mission and vision of the childcare The listing of the benefits and features of the products that the childcare offers The prospects of the already customers, i.e. testimonials of the customers The qualities that are the hallmark of the company. The branding strategy will entail creation of the voice that represents the brand message and integrating the brand to the real aspects of services provided by Samteo Childcare Centre. These brand strategies will act as the marketing tool and will entail a logo that graphically integrates the message. The brand will be disbursed to the potential customers through posters and use of the social media platform. The brand positioning maps will be anchored on the wide choice, good environment, specialised care. These three aspects will be the basis of the decisions making in relation to the marketing activities for the Samteo Childcare. 6.0: Marketing strategies The main objective of the Samteo Childcare Centre is to provide the best services that will ensure that parents are satisfied. Therefore, the main target market is the young busy mothers who have to attend many daily activities and cannot afford tending their children. In the selection of the target market the main factors that childcare is to consider is the attractiveness of the segment. The target market selection, segmentation will be based on the product mix of the product, price, promotion and place. The selected target market will posses the aspect of attainable market share based on the 4Ps (Nijssen & Frambach 201, pp. 39-41), the following are the strategies integrated in the marketing mix. 6.1: Product To come up with products that meet and addresses the needs of the parents and dispel the fears of parents in relation to childcare. The development of the product is the critical for any business, it is through the product that a business is able to enter the market and entice customers (Kotler et al 2009, p.14). The product will act as the competing tool for the business. 6.2: Price The price for the services will be based on the services provided but dictated by the market forces of demand and supply and in comparison with that the competitors are offering. Pricing of the products will be done depending on the current market situation. The prices will be based on the quality of the services the childcare is offering. 6.3: Promotion Samteo childcare will use the social media, word of mouth and networking of the parents to create awareness about the products and their market superiority. The promotion will entails telling to the target customers about the services that are being offered in the childcare centre. 6.4: Place Samteo Childcare Centre targets the immediate neighborhood as main customers. To ensure that the childcare attracts the majority of the parents with children, the childcare will offer the services that suit the target clientele base on time needs for the parents. Place represents the location or the locality where the product is to be sold. 7.0: Marketing Metric Framework for the Strategies Marketing metrics are normally linked to the strategy and are based on the four key elements which include: return on investment, satisfaction of the customers, market share and the brand equity (Capon & Hulbert 2001, p 103). The marketing metrics are crucial in ensuring justification of the marketing strategies and are based on the return on investment (AMI 2010, p 3). The strategies for the childcare will create a synergy that will lead to good performance of the business in the market and be able to overcome competition and ensure that there is return on investment. The framework will use different indicators to assess the viability of the strategies based on the initiatives taken. The following figure represents the framework of the marketing metrics for the Samteo Childcare Centre based on the 4Ps. 8.0: Conclusion The aim of Samteo Childcare Centre is to achieve a considerable market share that is to guarantee return on the investment. For any business to achieve the right market share, it has to ensure that all the product life cycle is well planned and strategies laid down on how to achieve the overall goal of the business based on the objectives. For the Samteo Childcare Centre to ensure realization of the market share, the marketing plan has outlined the various strategies that are to propel the business to its mission and guarantee good customer base. This is based on the services it intends to offer and the product diversification, pricing, promotion and positioning. 9.0: References Arora, R., and Stoner, C. 2009. A mixed method approach to understanding brand personality. Journal of Product and Brand Management, 18(4), pp.272-283. Australian Marketing Institute (AMI). 2010. Metrics for marketers: a new framework for measuring the value of marketing. AMI, pp. 2-27. Bivainiene, L. 2010. Brand life cycle: Theoretical discourses. Economics and Management 15(1), pp. 408-415. Cadle, J., Paul, D. and Turner, P. 2010. Business analysis techniques: Essential tools for success. BSC: The Chartered Institute for IT, p. 15-21. Capon, N. and Hulbert, J.M. 2001. Marketing Management in the 21st Century. Prentice Hall, pp. 102-119. Drummond, G., Ensor, J. and Ashford, R. 2010. Strategic Marketing, 3rd Ed. London: Routledge, pp.5-13. Ghodeswar, M. (2008). Building brand identity in competitive markets: a conceptual model. Journal of Product and Brand Management, 17(1), pp. 4-12. Kotler, P., Keller, K., Brady, M., Goodman, M. and Hansen, T. 2009. Marketing management. London: Pearson Education, pp. 2-17. Nijssen, E and Frambach, R. 2001. Creating Customer Value through Strategic Marketing Planning: A Management Approach. New York: Springer Science & Business Media, pp. 39-51. Sahaf, M. 2008. Strategic Marketing: Making Decisions for Strategic Advantage, London: PHI Learning Pvt. Ltd, pp. 2-7. Read More