HI6006 Competitive Strategy Editing Service
Delivery in day(s): 4
We will have a clear understanding of the market and all its related terms. This explains the knowledge required for developing a product and skills required for its better performance. We will also discuss the marketing segmentation together with the profiling target consumers. We will define the target market for our product and learn how to effectively position them in the market. We will discuss some basic questions related to market segmentation and profile the market and then discuss a case study of Aztec Rose which emphasis on the role of brand manager. And in the last part, we will develop a market positioning strategy for one of the mobile phone provider in Australia.
Criteria:A benchmark or a standard when established or laid in order to make judgements of something is known as criteria. It is a touchstone for an activity to be accomplished. It is an indicator used to make any judgements. In the context of marketing, criteria are defined as the bases on which the market is segmented, targeted, and positioned. These criteria's may vary depending on the type of requirements. Market segmentation criteria should be measurable, substantial, differential, accessible, and actionable. Similarly in marketing evaluation criteria is also followed which is utilised to assess the decisions and plan accordingly. These entire criterions should be measurable, standard, obtainable, valid and relevant (Armstrong, et al. 2015).
Positioning:It is a process of establishing the identity of the product in such a way that it earns from its brand name or identity of its products to customers. It is a way how a brand occupies the mind of the customers and retains them by standing out of the competition. Once a strong brand name is established it becomes difficult to reposition it as it is established in the minds of the customers. It forms as one of the most important concepts of marketing. It is the continuous strategy to target the audience and building the reputation of the product. It is a strategy to occupy a position in the market by conquering on the minds of its consumers. Positioning is usually done according to a competitor, product category, occasion, price lines, attributes, and cultural symbols. Positioning is the vital step and should be done in a much-planned manner so as to take a competitive advantage in the long run (Blankson, et al. 2013).
Targeting strategy:It is a strategy which aims to target the customers in order to sell its products and services. Targeting involves selecting the potential customers by segmenting the market and choosing the segment of the market which is appropriate for the business in relation to its products and services. Targeting strategy involves consideration of the various aspects which involves mass marketing and multi-segmentation. It helps the sales team to customise their message according to the focus designed keeping in mind the target audience and customers. Targeting strategy involves mass marketing, differentiated marketing, niche marketing, and micromarketing and so on (Capon and Go, 2016).
Demographic descriptions:when we talk about demographics it explains the division of population on the bases of the age, race, sex, caste, and other variables. This involves division of the whole group of community or society on the criteria of the education, nationality, and ethnicity and so on. In marketing demographics segmentation is also made according to the family size, income, age, race, gender, religion and so on. It helps to target the customers in the market more accurately. Demographics descriptions are the statics and data which a company keeps as a record with it about the information related to its clients and consumers. This statics may be based on the common demographics (Armstrong, et al. 2015). These demographic descriptions help to gain more understanding of the ideal customers, managing the marketing costs, identifying new opportunities and increasing sales by creating a unique selling point.
Prospective users:A user that is likely to buy or who can buy the product of your business is known as the prospective user. He is financially and physically equipped with the sufficient resources that allow him to buy. A user who has a specific want or need and in order to fulfil it he is ready to exchange something of value is termed as the potential user. The possibility to make that particular purchase is high as he is sharing that need or wants in particular (Blankson, et al. 2013).
Psychographics descriptions:This is the data related to the attitudes, values, opinions, personality and lifestyles of the consumers. This description is guided by the interests and opinions of the consumers. The psychographics description is used to segment the market on the basis of the personality of the consumers, their values, traits, attitudes, and lifestyles (Daas and Sinha, 2015).
Marketing plan:It is a blueprint that outlines all the activities of marketing for coming years. This describes the time frame and all the necessary information related to the activities of the business. It is usually prepared for the one year term. It includes all the marketing tactics and strategies which cover all the information of the goals, costs, and action steps over the time period. It is a roadmap which guides towards the business objectives and is crucial for the success of any business (Daas and Sinha, 2015).
Australian Bureau of Statistics (ABS):It is an Australian national statistical agency that provides information relating to the wide concepts of economic, environmental, and the social issues of the nation. The main aim of this agency is to provide assistance and facilities by providing the national statistical services to make informed decision making (Schlegelmilch, 2016).
Australian Marketing Institute code of conduct:It is an association for the marketers in Australia which provides a benchmark for the marketing theory and practice in order to boost the progress in the marketer’s profession. It has a professional code of conduct which lays guidelines for its members to conduct their activities in the public interest without providing misleading information to the clients. It lays the ethical practices and codes that should be followed by its members (West, et al. 2015).
This is a process which follows certain steps for segmentation which are as under:
Identifying the needs and similar wants of the consumers
Identify the characteristics and economic viability of the customers
Select the target markets and consumer groups
Develop a positioning strategy for the target market
Six criteria for market segmentation are as follows:
There is some basic criterion which needs to be given a thought before considering the segmentation of the potential groups. These may be categorised as under:
Homogenous:We need to check the level of differences of the people in a particular segment. They should not have differences at large they should be similar to each other on the basis of certain traits. Example of homogeneity is when we define a segment of people as a right-handed people (Hollensen, 2015).
Heterogeneous:This need not fulfil the criteria for the homogeneity of the people if the market segmentation is on the basis of the pull-on boots. The people that follow in these segments should be very different. Example: as we considered the above example in this segment the right handed and left handed is not worthwhile.
Substantial:the size of the group should be large enough as the large group itself is sufficient enough to generate the sufficient amount of sales that too at low cost and reasonable profits. For example, the segment of the right-handed men should be large enough rather than their personal traits of languages and tastes.
Competition:The level of competition should be analysed properly before targeting a market. They should be able to cope with the competitors in an effective manner. For example: in market segmentation of company like Toyota it should not sell its truck in North America as they cannot withstand the competition there.
Resources:The capacity and availability of the resources available to the company should be considered before the segmentation of the market. It should be able to manage the variations and proper analysis should be made before taking any decisions. For example, the waste costs and additional costs incurred in the fabric company for designing the plus sizes should be properly analysed (Solomon, 2014).
Measurable:The segment and its sizes, profile, and other characteristics should be properly measured and obtained in terms of meaningful data.
When we identify a target market it helps to gain information of a set of individuals who have the same characteristics. This helps to develop effective marketing strategies. It allows drafting a specific message for s specific target group. It also allows focusing on the potential consumers in order to obtain highest profits. Identifying a target market helps to reach the right audience at right time by proper formulation of cost-effective strategies. It also helps to decide which marketing tool to use. It ultimately will help in increasing the sales. Identifying the target market helps to strengthen the base and find the appropriate market. It also helps to avoid the inefficiency in reaching a huge mass of consumers. Market aggregation strategy of target market helps to adapt to the changing market with time. This leads to the rich exposure of the products brand that too at a reduced cost. This also reduces the cost of warehousing and inventory. One product is produced for the entire market. Another strategy is the single market strategy which concentrates on the single market segment by achieving the knowledge of a single market and its needs. It helps to penetrate the markets by acquiring reputation in a limited market. Another target market strategy is multiple- segment strategy which uses more than two groups of customers. It is useful in case of seasonal demand (Weinstein and Cahill, 2014).
In order to select the right positioning strategy we should need to consider the following questions before selecting the most appropriate one from the available alternatives at a marketplace (Solomon, 2014):
What is the competitor’s position in the market?
How much can a company afford?
What is important to a potential customer?
Is it the correct time to re-position the market?
Is there any implication of the marketing mix?
Once a target market is identified next difficult step is to profile the target audience. There is a need to convince the people harder to choose our product. Consumer profiling can be done to increase the sales by knowing their needs of the products, customer buying behaviour, their motivation behind the purchases made, their decisions behind the purchase and other reasons. Target audience profile can also be made by maintaining a customer relationship as it helps to better understand the clients and attract them through various campaigns in order to create a long-lasting relationship and bonds. And in order to create a relevant profile, we should profile the target audience on the bases of the factors that do not change fast and should conduct the periodic research in order to address the changing need of the customers (Daas and Sinha, 2015).
It is important to listen to the feedbacks from the target market in order to gain a deep insight of the overall consumer experience and the business products and services in the markets. It helps to take corrective actions about any product or services in the target market and it measures the customer satisfaction by creating an insight into the customer experiences. It also helps to improve the customer retention as they feel they are being heard and their problems are resolved on time. It also helps to make better decisions in future and identifies the customer advocates (Armstrong, et al. 2015). It overall helps in improving the customer and business experience as the whole.
If there is no adjustment made even after the feedbacks are passed to the company it will lead to the distress and lack of the customer satisfaction. It will decrease the sales and lead to the bad impact on the reputation of the company. Because the customers are the king and their feedbacks are more valuable to maintain the relationship with them in the long run (Yakimova, et al. 2017).
Aztec Rose is the creative design brand for the product range of swimwear, fashion and effortless lifestyle for the women that head on a beach. The company was launched in 1993 and became one of the leading swimwear brands. It includes tankinis, bikinis and turning heads with the global trends of the fresh and new designated team. It creatively draws the attention that comprises excellent fits and easy to wear fabrics. They offer different collection aspects that match back with the range of dresses, kaftans, over swim pieces and glamorous edge for the people in the range of swimwear.
It has been surveyed that the global market of the swimwear is utmost grown up to 6.5 per-cents over a period of time and has marked its value to US$20 billion. It has been identified that the major countries that involve in such participation are the UK, Australia, Japan and Germany that are relatively developing and has the range the macroeconomic fundamentals that are coupled with an increasing preference for the recreational activity. Variety of the material and adoption of the latest styles and trends have increased the growth relatively in the western countries and dominating the market (Skard and Thorbjørnsen, 2014).
Aztec Rose has analysed the global market with the process of innovation and advanced technology that were used to develop fabrics that improve their elasticity and efficacy which figured with the new features like embroidered patterns and premium swimwear that manufactures with the high impact of consumer's decision of purchasing. It has added value features that include the trendy prints and enhancing slimming effect.
Australia is the largest revenue generator for the swimwear witnessed that Aztec Rose has an outstanding Australian fashion voice that covers the supplies management in the form of retailers in Singapore, Bali, New Zealand, the UK, the US, Hong Kong and European markets. They can be segmented with the category that demonstrates their product analysis- Women's Swimwear, Children's Swimwear, Men's Swimwear that is provided to the people based on their asymmetric designs and classic silhouettes based on their size. Being the oldest in terms of a launched company the buying trends of the people residents follow the criteria that indulge with the trust and loyalty towards the brand. This deters in the quality and services as it is very important to separate the merged retail chains. The Aztec Rose have launched their new product ZINI that separates their current market positioning as they targeted on the young female group to ensure that outlet that is provided must fickle with the fashion trends (Okonkwo, 2016).
Branding is the most important term when the fashion and apparel wears are involved. As it pictures the unique fashion elements that range with the swimwear. It keeps looking for the goods at the beaches and profiling with the strong and attractive images over catalogues and posters in order to overseas their clients. Aztec Rose is now an international brand that fortunately provides the modern and fashion products that are quality assets and well-ranged price that marks with the major vendors dealing in the same market and operates globally (Cross, et al. 2015). They have large vendors competitor that forecast in the market with the distribution technique and severe the market opportunities and growing infrastructure with the countries like UK, China, India. Some of the leading vendors in the market are- Wacoal, Speedo, Perry Ellis, American Apparel and Arena Italia. Other prominent vendors of the swimwear are O'Neill, Rue Royale Diana, Billabong, ACACIA SWIMWEAR and others. They all contribute to the positive growth of the market and also target their customers through e-retailing while some target through web portals attracting to peculiar age groups.
Encouraging the global growth in the fitness activities fuels the sale of the swimwear that has established the private swimming pools and growth enrolment of adults for swimming and covering the product categories that focus on the young females and identifying the demand and quality of the product as they deal in the competitive intelligence with 209 major and niche players (Yakimova, et al. 2017).
5 sources of information for segmenting and profiling the market of Vodafone:
Country’s growth prospectus
Life of service
Three groups targeted by Vodafone are:
Middle-class people (Bickhoff, et al. 2014)
The characteristics of the targeted groups above are:
Middle-class people are more interested in the maximum benefit plans at the least cost. They take decisions according to their income level.
Rural area customers are more pocket-friendly they are least aware of the benefits available and the uses of the new technology available to them.
Youth segment customers are more interested in the new products and are technology friendly. They utilised the technology provided by Vodafone and are most prospective clients (Bickhoff, et al. 2014).
The consumer market potential of Vodafone on the following dimensions is:
Geographic:Available at all locations in Australia covering high density of population and is suitable for every climate in Australia.
Demographic:It basically has potential consumers of age above 16 and covers both genders. It is affordable to all income groups of people and of all religions and nationality.
Psychographic:It has the potential market in all classes of society especially the middle-class people. The lifestyle of the potential consumers is regular so it is applicable to all.
Behavioural:It segments the market on the basis of the behaviour of the people who are ready to pay more for a premium service (Parente and Strausbaugh-Hutchinson, 2014).
odafone uses the targeting strategies which target the people of small towns and rural areas of the low-income group. It also targets the youth by providing attractive plans and services. It also covers the business people by providing the mobile phones with a reasonable price.
Vodafone has been successful in positioning itself by providing efficient and reliable services to the customers that too at the lower cost. It is having the services and products at a premium as well as basic price. The promotional tools that it uses to attract and grab the customers are exceptionally attractive this helps to increase the customer base and enhance the brand name of it (Bickhoff, et al. 2014).
Market and its main components are understood which provided us the basic knowledge of the marketing strategies of a company that is used in a new product development. The basic terms and process have been learned together with the segmentation, targeting, and positioning strategies of a company in order to attract and retain the potential customers. The importance of customer relationship management has helped us to know the benefits of relations with customers so as to earn the advantage of them in long run. We have also learned the market positioning strategy of Vodafone in Australia which is a mobile service provider. The way it segments, targets and positions the market is analysed in the assignment above. We have also gained knowledge of the branding strategy and brand positioning in the market of Aztec Rose that is into offering a range of swimwear, beachwear and other fashion labels. In marketing importance of the brand name is now known together with the competitive analysis of other brands.