Marketing Opportunity OZ Assignment Help

Marketing Opportunity OZ Assignment Help

Marketing Opportunity OZ Assignment Help

Part F – Evaluation of Marketing Opportunity Options

Marketing opportunity option

     Feasible

     (YES/NO)

                   RATIONALE

Strategic alliance and cooperative business models

       Yes

 It is an independent agreement between two organizations which involves less complication and can be comes to an end by the mutual consent of both the parties.

New products or services to target specific markets

     No

It may be not a good option due to some low cost competitors in the prevailing market.

Greater market penetration with existing products or services

     Yes

It can be a good option as it opens a wide range of market and also the competition is quite low.

Take- overs

     Yes

It proves to be a sound option as it can easily provide goodwill which is very beneficial in this field.

New Businesses and franchising

     Yes

 We can open market for new businesses and franchising as it stimulating public awareness about exercising (Hollenson, 2015).

Cooperative ventures

    No

This may not be a right option as there is not much scope in establishing cooperative ventures.

Exports

    Yes

It may be beneficial as it expand the international market for the business.

 

Joint ventures

   No

Joint venture can lead to increase in the cost of the company which can be critical.

(Kotler, et al, 2012)

1.2 Develop Feasible strategies

Marketing Mix

Strategy

Rationale

Alignment

Product

  1. To implement quality assurance programs
  2. Offer variety of fitness programs

These quality assurance programs will help in establishing standard quality of facilities, equipment, trainers and services at all the centres across the nation. A wide range of programs will provide competitive advantage.

This will align with the core business objective and mission which relates to promoting the quality of life in its services and become premium provider of quality services.

Price

  1. Premium pricing
  2. Special discounts for special client segments and loyal customers

The company is providing value added services such as art facilities, top-notch equipment and high cost personal trainers. Special offerings will help in retaining high value customers.

This will align with the business objective of high profitability and financial growth.

Promotion

  1. Advertisement through print media
  2. Customer loyalty programs

This will help the company in increasing its customer base and create high influence on customers through print advertisement

This will help in achieving 5% improvement in customer retention in next 5 years.

Placement

  1. Nationwide fitness centres
  2. Multipurpose fitness venues

This strategy is adopted since it will help the company in increasing its market share (Ataman, et.al, 2010).

These strategies align with the objective of enriching the brand at the national scale

Marketing Opportunity OZ Assignment Help

1.3 Plan achievable marketing tactics

Part A

Product

Tactics

Owner

Cost

Schedule

Accountability

  1. Launch quality assurance programs

Manager

Remuneration to quality inspector

Every month

Quality Inspector

  1. Identify range of fitness programs

Trainers

Research cost

Starting 5 days of each month

Trainers

  1. Design customised packages

Trainers

Cost of services and facilities to be provided

As per the arrival of customer

Trainers

Price

Tactics

Owner

Cost

Schedule

Accountability

  1. Research competitor prices

Research consultant

Research cost

15 days

Manager

  1. Design discount coupons and vouchers

Finance manager

Discount offered

5 days

Manager

  1. Communication to special client segments

Marketing manager

Cost of communication

Weekly

Manager

Promotion

Tactics

Owner

Cost

Schedule

Accountability

  1. Printing flyers

Marketing manager

Cost of printing flyers

5 days

Marketing manager

  1. Printing advertisement

Marketing manager

Advertisement cost charged by newspaper agency

Every month

Marketing manager

  1. Design customer loyalty programs

Marketing manager

Discount or loyalty bonus

Every year

Marketing manager

Placement

Tactics

Owner

Cost

Schedule

Accountability

  1. Acquire land for opening centres

Shareholders

Lease rentals

Within a month

CEO

  1. Developing infrastructure

Manager

Fixed cost for installation

1 month

CEO

  1. Procurement of resources

Finance manager

Acquisition cost of resources

1 month

CEO

Part B

Stages of Product life Cycle

1.Introduction – At this stage the fitness services will be launched by Fit life. This is the initial stage and therefore the services will not be become popular due to lack of trust among customers.

2.Growth –At this stage potential customers will become aware about the services through advertisement and the services will start gaining popularity (Stark, 2015).

3.Maturity – This stage will be best suitable for the fitness services launched by Fit life since at this stage the business will be able to effectively position its brand in the market and increase its customer base.  

4.Decline – This is the last stage where the quality of services will decline and the customer retention ratio will decrease due to market saturation.

Part C

Introduction

Tactics

Owner

Cost

Schedule

Accountability

1.Adopt effective market entry strategy

Marketing manager

Cost of market entry

Prior to launch

Marketing manager

2.Promoting the brand before launch

Marketing manager

Advertisement cost

Prior to launch

Marketing manager

Growth

Tactics

Owner

Cost

Schedule

Accountability

1.Customer loyalty programs

Finance manager

Discount or loyalty bonus

Monthly/weekly

Finance manager

2.Modify services as per customer needs

Manager

Cost of additional resources and training of staff

Yearly

Manager

Maturity

Tactics

Owner

Cost

Schedule

Accountability

1.Revise the prices

Finance manager

Increased revenue

Every year

CFO

 

 

 

 

 

Decline

Tactics

Owner

Cost

Schedule

Accountability

1.Reduction of Fixed costs

Finance manager

Opportunity cost

Within a year

CFO

2.Divestment

Shareholders

Loss on shut down

2 to 3 months

CEO

Part D

Product:  According to work health and safety act, 2011, it is the responsibility of the organisation to offer healthy products in the market.

Price:According to Trade Practices Amendment (Australian Consumer Law) Bill (No. 2) 2010, it is the duty of the organisation to check the quality of the product which they are offering in the market against the price charged by them.

Promotion:In context to the competition and consumer law act, 2010, there is a requirement to promote ethical products in the market considering the health of the citizens of Australia. The ethical consideration relate to the fair promotions with true disclosure in the advertisement (Cremer, et.al, 2011).

Placement:According to trade practices act, the organisation needs to verify that proper deeds and records are made to give effect to the transactions of the organisation.

1.4 Submit draft marketing Plan

To: Marketing Manager

From: Executive

Date: 4th April, 2017

Subject:  Marketing Plan

This is to provide information about the marketing plan of Fit life for launch of quality fitness services through nationwide fitness centres across Australia. The marketing plan will include the details of feasibility of market opportunity options, development of feasible strategies as per the marketing mix, stages of product life cycle, tactics for the marketing strategies and improving the stages of product life cycle and the legal and ethical considerations with regards to the strategies and tactics suggested.

The marketing strategies of the company include launch of quality fitness services, with premium pricing strategy, promotion in the form of advertisement through print media and by opening multipurpose fitness centres throughout the nation.  The tactics include launch of quality assurance programs and customer loyalty programs. The detailed marketing plan is enclosed.

For the marketing plan your feedback is solicited to make modifications and submission of revised marketing plan for approval. I request you to provide feedback on the plan as soon as possible.

1.5 Measure marketing effectiveness

MARKETING METRIC

                             EXAMPLE OF IMPLEMENTATION

Customer acquisition cost(CAC)

If you spent $500,000 on Sales and Marketing in a month and added 50 customers that month, then your CAC is $50,000.

Marketing per cent of customer acquisition cost(M%CAC)

For a company like fit life which has more inside sales then the M%CAC would be 20@%to 50%.

Ratio of customer lifetime value to CAC(LTV:CAC)

It is the combined ratio of LTV and CTC and according to the provisions of fit life company it would be 5%.

Time to pay back CAC

The time to pay back according to the provisions of fit life would be 5 years.

Marketing originated customer%

The marketing originated customer% of fit life company would be around 10%

Marketing influenced customer%

The marketing influenced customer% of fit life company would be around 15%

(Varadarajan, 2010)

1.6 Finalise the marketing Plan

To: Marketing Manager

From: Executive

Date: 4th April, 2017

Subject:  Revised Marketing Plan

In accordance with the feedback on the draft marketing plan the changes have been made in the marketing plan and the revised plan is enclosed.

The pricing strategy for the launch of quality services is changed from premium pricing to price skimming. Also the customer loyalty programs are planned to launch monthly. The additional costs to be incurred and resources required are included in the revised plan enclosed.

Kindly approve the revised marketing plan for implementation. 

References

Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2012). Marketing: an introduction. Pearson Prentice-Hall, London.

Ataman, M. B., Van Heerde, H. J., & Mela, C. F. (2010). “The long-term effect of marketing strategy on brand sales”. Journal of Marketing Research. 47(5). 866-882.

De Cremer, D., van Dick, R., Tenbrunsel, A., Pillutla, M., & Murnighan, J. K. (2011). “Understanding ethical behavior and decision making in management: A behavioural business ethics approach”. British Journal of Management, 22(s1).

Hollensen, S., (2015).“Marketing managemen: A relationship approach. Pearson Education.

Stark, J. (2015). “Product lifecycle management. In Product Lifecycle Management”. Springer International Publishing. pp. 1-29

Varadarajan, R. (2010). “Strategic marketing and marketing strategy: domain, definition, fundamental issues and foundational premises”. Journal of the Academy of Marketing Science, 38(2), 119-140.

Westwood, J. (2016). “How to write a marketing plan”. Kogan Page Publishers.