MKTG6002 MKT600 Marketing - Carlos D

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1
Marketing
Situation Analysis
Boat: The Indian startup scripts a revolutionizing growth strategy
Mariann Pacheco, ID Student A00085785
MKT600
Assessment 2
Dr Tanvir Ahmed
 24 of April 2023
Objectives and marketing logic to create customer value
Objective: Introduce a new line of health and wellness wearables that cater to the growing trend of fitness and wellness in India.
Marketing Logic: The new line of wearables will offer features that cater to the health and wellness needs of consumers in India. By providing a range of products that promote fitness and wellness, the company will create value for customers and differentiate itself from competitors.
Segmentation: The target market will be health-conscious individuals aged 18-45 who are active and interested in fitness and wellness.
Targeting: The company will focus on the middle to upper-middle-class segment of the market, as they are more likely to have disposable income to spend on health and wellness products.
Positioning: The new line of wearables will be positioned as a premium product that offers the latest technology and innovative features for fitness and wellness.
Marketing Mix Strategies
Product: The new line of wearables will include features such as heart rate monitoring, sleep tracking, and activity tracking. The product line will consist of smartwatches, fitness trackers, and other wearables that cater to the health and wellness needs of consumers.
Price: The pricing strategy will be value-based, as the company will position the new line of wearables as a premium product that offers the latest technology and innovative features. The pricing will be higher than the average market price to reflect the premium positioning.
Distribution: The distribution strategy will focus on both direct and indirect channels. The company will sell the wearables through its own online store and partner with select retail outlets to expand its reach.
Promotion: The promotion strategy will use a combination of pull and push marketing strategies. The company will invest in advertising, sales promotions, and public relations to create awareness and interest in the new product line. Social media platforms will be used to engage with customers and generate buzz around the new launch.
Action programs will include the following:
· Conduct market research to identify customer needs and preferences
· Develop a marketing campaign to promote the new line of wearables
· Train sales teams to effectively promote and sell the new products
· Launch the new product line in select retail outlets and through the company's own online store
· Monitor sales performance and adjust marketing strategies as necessary
Budget
The marketing budget will be allocated as follows:
· Market research: $50,000
· Advertising: $150,000
· Sales promotions: $100,000
· Public relations: $50,000
· Distribution: $200,000
· Total budget: $550,000 
Control
The following controls will be used to monitor progress:
· Regular performance reviews to evaluate sales performance
· Regular market research to understand customer needs and preferences
· Monitoring of online customer feedback and reviews
· Regular review of marketing strategies to ensure they are aligned with the company's objectives and goals.
I. Clearly define the value proposition of your chosen organisation, product, or brand
The value proposition is a statement that explains why customers should choose a particular product or service over the competitors. For our chosen organization, BOAT, the value proposition would be "premium quality, durable and stylish boating gear for adventure enthusiasts." BOAT aims to differentiate itself from other competitors in the market by offering high-quality and innovative products that cater to the needs of adventure enthusiasts. By providing products that are long-lasting and stylish, BOAT can attract customers who are willing to pay a premium for quality products. Additionally, BOAT's value proposition is centered around the idea of adventure, which appeals to a niche group of customers who prioritize exploration and outdoor activities.
BOAT's value proposition is a critical aspect of the marketing mix, as it helps to position the brand in the minds of its target audience. By emphasizing the premium quality, durability, and style of its boating gear, BOAT can differentiate itself from other competitors in the market. It is essential to note that a clear and compelling value proposition can also drive customer loyalty, increase brand awareness, and boost sales.
To further enhance its value proposition, BOAT can also leverage its brand identity and develop a unique brand personality. By creating a brand personality that resonates with its target audience, BOAT can establish an emotional connection with customers and build a sense of loyalty towards the brand. For example, BOAT can create a brand personality that reflects the adventurous and outdoorsy nature of its target audience, using bold and vibrant colors, and adventurous imagery in its marketing campaigns.
II. Critically evaluate the overall situation of the organization and suggest appropriate marketing mix strategies
· BOAT operates in a highly competitive market with several established players, and thus, it is crucial to evaluate its overall situation and suggest appropriate marketing mix strategies. Based on the findings from the previous analysis, we can suggest the following marketing mix strategies for BOAT:
· Product: BOAT should focus on offering innovative and high-quality boating gear that caters to the needs of adventure enthusiasts. The company should focus on developing products that are durable, waterproof, and stylish, and offer a unique user experience to stand out from competitors. Moreover, BOAT should expand its product line to offer a wider range of products that cater to different customer needs.
· Pricing: BOAT should use a value-based pricing strategy that reflects the premium quality of its products. Customers who are willing to pay a premium for high-quality products would be attracted to BOAT's pricing strategy, and it would also help the company to maintain its reputation as a premium brand.
· Distribution: BOAT should use a selective distribution strategy that focuses on selling its products through a limited number of retailers who cater to the needs of adventure enthusiasts. Additionally, the company should also focus on building a direct-to-consumer channel to reach a wider audience.
· Promotion: BOAT should use a pull promotion strategy that focuses on building brand awareness and attracting customers through advertising, public relations, and social media. The company should also use influencer marketing to reach a wider audience and build credibility.
III. Product - Define the product attributes/features to reflect your value proposition
· BOAT's value proposition is centered around the idea of offering premium quality, durable, and stylish boating gear for adventure enthusiasts. To reflect this value proposition, BOAT should focus on developing products that offer the following attributes/features:
· Quality: BOAT should use high-quality materials in the manufacturing process to ensure that its products are long-lasting and durable.
· Design: BOAT should focus on developing products that are not only functional but also stylish. By incorporating stylish designs, BOAT can attract customers who prioritize fashion and aesthetics.
· Functionality: BOAT's products should be designed to cater to the needs of adventure enthusiasts. For example, the products should be waterproof, floatable, and have storage compartments to accommodate various gear required for boating.
· Innovation: BOAT should focus on developing products that offer a unique user experience. This can be achieved by incorporating innovative features such as Bluetooth speakers, built-in GPS systems, and temperature-controlled storage.
· Product Line and Mix Strategies: BOAT should focus on expandingits product line to cater to different customer needs. For example, the company can develop products that cater to fishing enthusiasts, water sports enthusiasts, and those who prefer leisure boating. BOAT should also use a mix of core, complementary, and ancillary products to provide a complete solution to its customers.
Overall, by focusing on the above product attributes/features and strategies, BOAT can establish itself as a premium player in the market and attract customers who value quality and reliability. The product line strategy can be extended to include variations of the main product with different features, sizes, and colors to cater to different customer segments. Additionally, BOAT can also introduce complementary products such as boat covers, trailers, and accessories to increase revenue and provide a one-stop-shop experience for customers.
IV. Pricing
The pricing strategy for BOAT can be a combination of value-based and competition-based pricing. By positioning itself as a premium player in the market, BOAT can set its prices based on the perceived value of its product. However, it should also consider the prices of its competitors and adjust its prices accordingly to remain competitive. BOAT can also introduce financing options to make its products more accessible to customers who might not be able to afford the upfront costs.
V. Distribution
BOAT can adopt an intensive distribution strategy to ensure that its products are available at a wide range of retail locations. This can be achieved by partnering with large retailers, independent dealers, and online marketplaces to increase the reach of its products. BOAT can also offer direct-to-consumer sales through its website to cater to customers who prefer to shop online. BOAT can use a multi-channel distribution approach to ensure that its products are easily accessible to customers through various channels.
VI. Promotion
BOAT can adopt a pull strategy for promotion, where it creates demand for its products among customers through advertising and other promotional activities. BOAT can use a mix of advertising, sales promotion, and public relations to create awareness about its products and establish itself as a premium player in the market. Advertising can be done through print, digital, and outdoor channels, while sales promotions such as discounts, special offers, and financing options can be used to attract customers. Public relations activities can include press releases, events, and sponsorships to create a positive image of the brand among customers.
To further enhance the promotion strategies, BOAT can consider utilizing social media platforms as a means to connect with its target audience. Social media is a powerful tool for creating engagement and building brand loyalty among consumers. BOAT can leverage social media to showcase its products, promote its brand, and interact with customers. Social media can also be used as a platform for influencer marketing, where BOAT can collaborate with popular social media personalities and bloggers to promote its products and reach a wider audience.
Another important aspect of promotion is the development of a strong brand identity. A strong brand identity helps to differentiate BOAT from its competitors and builds customer loyalty. BOAT can develop its brand identity by creating a consistent visual and messaging style across all its marketing and communication channels. This can include developing a unique logo, creating a distinctive tagline, and using consistent color schemes and design elements in all marketing materials.
Moreover, BOAT can adopt a targeted approach to its promotion strategies by tailoring its messages and content to specific customer segments. By understanding the needs, preferences, and behaviors of different customer segments, BOAT can develop more effective and relevant marketing campaigns that resonate with its target audience. For example, BOAT can use customer data and analytics to identify the most popular products among different customer segments and tailor its messaging and promotions accordingly.
VII. Action programs
To turn the marketing strategies into specific action programs, BOAT can develop a detailed marketing plan that outlines the activities, timelines, and responsibilities of each team member. The plan should be reviewed regularly to ensure that the strategies are aligned with the objectives and that the activities are being executed effectively. Key performance indicators should be established to measure the success of the marketing initiatives and to identify areas for improvement.
BOAT can develop several specific action programs for each element of the marketing mix. For instance, for product, the company can create a new product development plan to enhance the features and attributes of its boats to reflect the value proposition. This plan can include the involvement of product designers, engineers, and marketing professionals to ensure that the new product meets the needs and preferences of the target market. BOAT can also develop a product launch plan to ensure that the new products are introduced to the market effectively, with appropriate pricing, distribution, and promotion strategies.
For pricing, BOAT can develop a cost-based pricing strategy by analyzing its production costs and adding a reasonable profit margin. This approach can ensure that the products are priced competitively while generating sufficient profits for the company. Additionally, BOAT can also explore value-based pricing by analyzing the perceived value of its products and pricing them accordingly. This can help the company to position itself as a premium brand in the market, with higher profit margins. BOAT can also evaluate the pricing strategies of its competitors and adjust its pricing strategy accordingly to remain competitive in the market.
For distribution, BOAT can develop a specific distribution strategy that includes the selection of channels, coverage, and logistics. For instance, BOAT can adopt a selective distribution strategy by partnering with a limited number of dealerships that have the expertise and reputation to sell its premium products effectively. This can help to maintain the exclusivity and high-quality image of the brand. BOAT can also explore direct distribution channels, such as online sales, to reach a wider audience and increase its sales. Furthermore, the company can optimize its logistics and supply chain management to ensure timely and efficient delivery of products to customers.
For promotion, BOAT can develop a promotional mix strategy that includes advertising, sales promotions, public relations, personal selling, and direct marketing. For advertising, the company can use various media channels, such as television, radio, print, and online platforms, to create brand awareness and communicate the unique value proposition of its products. For sales promotions, BOAT can offer discounts, loyalty programs, and other incentives to encourage customers to purchase its products. For public relations, the company can engage in sponsorships, events, and other initiatives that promote its brand and enhance its reputation. For personal selling, BOAT can train its sales representatives to communicate the value proposition of its products effectively and provide excellent customer service. Finally, for direct marketing, the company can use email marketing, social media marketing, and other digital marketing techniques to reach its target audience directly.
For budgeting, BOAT can develop a projected profit and loss statement that outlines the expected revenue and expenses for each element of the marketing mix. This can help the company to allocate its resources effectively and ensure that the marketing initiatives are financially feasible. Additionally, BOAT can develop contingency plans to address unforeseen circumstances or changes in the market.
For control, BOAT can establish a monitoring and evaluation system that tracks the progressof the marketing initiatives and identifies areas for improvement. Key performance indicators should be established for each element of the marketing mix, such as sales volume, market share, customer satisfaction, and return on investment. Regular reviews and assessments should be conducted to ensure that the marketing strategies are aligned with the objectives and that the activities are being executed effectively. Any issues or challenges should be addressed promptly to ensure that the marketing initiatives are successful.
VIII. Budget
The marketing budget for BOAT will depend on the specific activities and channels used to promote its products. The budget should be allocated based on the expected return on investment of each activity and should be reviewed regularly to ensure that it is aligned with the objectives of the marketing plan. A projected profit and loss statement can be used to estimate the revenue and expenses associated with the marketing activities.
To create a budget for BOAT, it is important to identify the specific activities and channels that will be used to promote the company's products. Some of the key marketing activities and channels that BOAT could use include:
· Advertising: BOAT could use a mix of print, digital, and outdoor advertising to reach its target audience. The cost of advertising will depend on the specific channels used and the frequency of the ads.
· Sales promotions: BOAT could offer discounts, special offers, and financing options to attract customers. The cost of these promotions will depend on the size of the discounts and the number of promotions offered.
· Public relations: BOAT could use press releases, events, and sponsorships to create a positive image of the brand among customers. The cost of these activities will depend on the specific events and sponsorships chosen.
· Content marketing: BOAT could create blogs, videos, and other content to engage with its target audience. The cost of content creation will depend on the frequency and quality of the content.
· Social media marketing: BOAT could use social media platforms such as Facebook, Twitter, and Instagram to reach its target audience. The cost of social media marketing will depend on the frequency and quality of the posts.
Based on the specific activities and channels chosen, a budget can be developed. The budget should be divided into two main categories: fixed costs and variable costs. Fixed costs are those that do not change based on the volume of sales, while variable costs are those that do change based on the volume of sales.
The following table provides an example of a budget for BOAT's marketing activities:
	Marketing Activity
	Fixed Costs
	Variable Costs
	Advertising
	$20,000
	$5,000 per ad
	Sales promotions
	$10,000
	10% of sales
	Public relations
	$5,000
	$2,500 per event
	Content marketing
	$8,000
	$500 per blog post
	Social media marketing
	$5,000
	$1,000 per month
The total budget for marketing activities would be $48,000 in fixed costs plus variable costs associated with each activity. This budget should be reviewed regularly to ensure that it is being used effectively and that it is aligned with the objectives of the marketing plan. By tracking the performance of each activity and adjusting the budget accordingly, BOAT can maximize the return on investment of its marketing efforts.
IX. Control
To monitor the progress of the marketing plan, BOAT can use a combination of qualitative and quantitative measures. Qualitative measures can include customer feedback, market research, and brand perception surveys, while quantitative measures can include sales data, website analytics, and social media metrics. Regular performance reviews can be conducted to assess the effectiveness of the marketing initiatives and to make necessary adjustments to the marketing plan.
In addition to using qualitative and quantitative measures to monitor the progress of the marketing plan, BOAT can also implement a comprehensive control system that helps to identify and address issues in a timely manner. One effective approach is to establish a marketing dashboard that provides real-time data on key performance indicators (KPIs) such as website traffic, conversion rates, and social media engagement.
Another important aspect of control is the use of marketing budgets to track and allocate resources. By creating a detailed marketing budget that outlines the expected costs and revenue associated with each marketing initiative, BOAT can ensure that the marketing plan is financially sustainable and that resources are being used effectively. The marketing budget can also be used as a tool for identifying areas where cost savings can be achieved or where additional resources are needed to achieve the desired outcomes.
Finally, regular performance reviews can be conducted to assess the effectiveness of the marketing initiatives and to make necessary adjustments to the marketing plan. These reviews can involve both internal stakeholders such as the marketing team and external stakeholders such as customers and suppliers. By soliciting feedback from a range of sources, BOAT can gain a comprehensive understanding of the effectiveness of its marketing initiatives and identify areas for improvement.
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