Marketing Strategic Planning and the Theory of the Firm - Case Study Example

I Battery’; power back-up towards convenience Executive Summary The imperative role played by one’s iPhone, iPad and iPod cannot be downplayed. From entertainment, data storage, communication, the merits attached to these devices are enormous. In recent past, different companies have made extensive efforts in the production of rechargeable batteries for these devices. This is best exemplified by the Just Mobile Gum Plus PP-168 which is a reserve battery with high capacity which is ideal for recharging the iPhone among other devices which are portable. This battery features up to 4400mAH in terms of power storage (Pendlebury, 2010). Contents Executive Summary 1 Contents 2 1.1: Introduction 3 1.2: SWOT Analysis 3 1.3: Segment-target positioning 4 1.3.1: Market segments 4 1.3.2: Customer behavior 5 1.4: Feasibility plan 6 1.5.1: Product concept 6 1.5.2: Pricing 8 1.5.3: Promotion 9 1.5.4: Channels 13 Conclusion 14 References 14 1.1: Introduction Anderson (1982) cited that the role of marketing in strategic planning entails the identification of the most suitable long-term positions. This will be key in ensuring the support and satisfaction of the customers. This is applicable to the introduction of I Battery to the market. Apart from strategic positioning, ideal marketing strategy develops a capacity to cope with prospective competitors, identification of market opportunities and commercialization of new products among other fundamental tenets. This paper will analyze the most ideal marketing mix that can be can put into utility to enhance the penetration of I battery into the Australian market, all aimed at attaining a favorable niche in the market. This product will be introduced into the market by "Just Mobile" company "Taiwanese company". 1.2: SWOT Analysis Al-Rousan and Qawasme (2009) determined that an explicit relationship exists between dimensions of competitive advantage and SWOT (Strength, Weakness, Opportunity and Threat) analysis. One of the major strength associated with Just Mobile and Taiwanese companies is that both of them possess very efficient distribution procedure in terms of fulfilling orders. However, one of the weaknesses that will confront this new battery is based on the advertisement strategies that were used to introduce the products from Just Mobile. This is whereby there has been a widespread notion of inaccurate information on the batteries capacity. For instance, Pendlebury (2010) cited that the fact that the rechargeable battery were claimed to have the potential of charging an iPhone up to 90% in an hour with potential four charges available. However, this latter claim was discovered to be inaccurate in the sense that the rechargeable batteries were only able to deliver twice, rather than the presumed four times. This is bound to pose some challenges by denting the consumer confidence in ‘I Battery’. Nonetheless, amazing opportunities are available for the rechargeable I Battery in terms of unexploited market, mostly with the recent advances in technology which has heightened the demand for rechargeable batteries due to innovation of more advanced devices. This includes newer iPhone, iPads and iPods. The potential threat that is bound to confront I Battery is the elevated competition in the production of the rechargeable batteries in Australia from other companies, for instance, Rocket Australia Pty Ltd. In addition, unfamiliarity by distributors of this new product in regard to the newest technology in the industry might serve as an extra threat to the promotion of the products. 1.3: Segment-target positioning Tronstad, 1995 cited that the positioning of a product has a great influence of how the consumers think of a company’s products, in terms of best service, lowest price in the market and accessibility 1.3.1: Market segments The market for I Battery is differentiated in terms of class, age, occupation, values and behaviors of the prospective consumers. Most of the target users of this product are people with a relatively high lifestyle, middle aged and liberal in terms of values and behaviors. This category of users is bound to be conversant with the recent technology and have quest for convenience. This segment is currently being served by other rechargeable batteries producers like Sanyo Corporation, Ultralife Batteries, Inc., Rocket Australia Pty Ltd, Battery Technologies Inc., Eagle Picher Industries among others. This market perfectly meets the criteria for good segment in the sense that it is measurable, substantial, actionable, accessible and differentiable. This is an attractive market to serve in the sense that it is easy to identify and due to the predictability of its procurement trends. In terms of positioning, I Battery will be creating a unique and consistent customer perception in regard to high quality, competitive price and long-term benefits. This will trickle back to the producing company. 1.3.2: Customer behavior Carroll and Heiser (2010) asserted that in relation to most electronic devices owned by consumers, particularly the mobile phones, there is stern restriction in regard to the capacity of the battery as a result of the constrictions on the weight and size of the device. Consequently, many customers are bound to opt for the rechargeable I Battery which is light and relatively small in order to overcome these impediments. In the Australian market, potential consumers for the rechargeable I battery mostly include those people who spend most of their time without regular access to power sources. For instance, people going for camping or hiking spend most of their time in places which are not electrified. Another category of customers is that of travelers, mostly those embarking on long journeys without access to power sources for their devices, for instance explorers or those in aircrafts. On the other hand, natural disasters like cyclones which are prevalent in Australia may interrupt power supply for a long time and thus necessitating alternative power source by the users to for devices like iPhones, iPads or iPods. The purchasing trends for rechargeable batteries in the Australian market are influenced by several factors. Cost of the product is a major consideration for the consumers, while the quality of the battery influences their preference. According to a survey by Planet Ark (2010), among 319 respondents who don’t purchase rechargeable batteries, 49% of them stated that the barrier was because the batteries were too expensive. Other personal factors like social class, age, occupation, and lifestyle will greatly determine the purchasing trends of most consumers. This battery has limited risks whereby some are real and others may be presumed. This will be overcome through intensive public awareness in regard to the overwhelming advantages of this product and the probable risks. The decision by the customers to purchase ‘I Battery’ will be founded on the subsequent feasibility plan. 1.4: Feasibility plan 1.5.1: Product concept The rechargeable I Battery possesses some unique features that are based on color, weight, durability, size and fashion orientation. These will make it outstanding among other products manufactured for the same purpose in the market. I Battery is made from aluminum which has a great impact in determining its overall weight. In this regard, it is lighter to carry around even when the user has other heavier loads to put into consideration when moving from one place to the other. This advantage is coupled with the fact that it is easy to use and thus convenient across users from diverse age groups and social classes. This will help in defining the brand. This gives I Battery a unique selling proposition in the market. Its other merit which puts it above other rechargeable batteries produced by competitors is based on its size. I Battery is less than half an iPhone in size, making it far much smaller than the products from competitors like Sanyo. As a result, it occupies limited space and can conveniently be placed among other luggage by a user when traveling. This makes it more potable when compared to other brands. This will be critical to the successful introduction of the product to the market. In terms of cost, I Battery is relatively cheaper when compared to other rechargeable batteries from different competitors. This makes it more preferable among users across different economic scales based on the fact that its lower price does not compromise its quality and durability. In addition, parents can comfortably afford it for their children without extreme strain and thus an ideal option for those parents with unemployed children in need of its services. I Battery is also appealing to different classes of users based on its fashion orientation. It is made to suite the contemporary taste and preferences, mostly among the young generation and this makes it a perfect option for the users. Moreover, this product will be remodeled to suit the changing demand trends in future. This will entail adjustments on color or use of cartoons aimed at creating a positive appeal among the different user. This factor will be chief in attracting and maintaining the customers. Changing technologies in future will also necessitate modifications of the product to enable it to be in track with the dynamics in the modern world. Lastly, I Battery is endowed with a long life time making it ideal to user in search for a durable backup power source for their devices. This service will assist in defining the brand. 1.5.2: Pricing The producer of I Battery should divorce herself from the assumption that it has to offer the lowest price in the market so that it can attain competitive advantage. This is because the idea that having the absolute low price in the market sends a negative signal of possible low quality of the product which can adversely affect its sales (Ehmke, Fulton & Lusk, 2010). Thus, the pricing approach should end in a price that encompass the cost per rechargeable battery and also include a substantial profit margin. However, the price should be balanced, not be too insatiable or too timid. This is because the prior will price the company out of operation while too low price will not only cast doubt about the quality of the product among the customers but will also make the growth of the company impossible. The pricing strategy combination for I Battery will entail; Value-based pricing: This is founded on the perception of the buyer in regard to the value as opposed to the cost of the product. This perception is determined by all the features of the product which include those not related to price, for instance, prestige and quality. This will make the buyers willing to pay for the product. Competitive: This is founded on the range of prices being offered by other competitors. For instance, it will be lower than the price offered by Sanyo for the same product as well as the price for the new rechargeable battery model introduced by Just Mobile company. This will make it achieve a competitive niche in the market. Discount: This is founded on the reduction of the advertised price. This will include things like vouchers. This combination will ensure that the consumers will be assured of quality and value for their money which will allude cost sensitivity to consumer needs. 1.5.3: Promotion This entails the mechanisms that I Battery will utilize to inform the consumers what type of rechargeable batteries that it have in regard to quality, price, outlets, quality, merits above other brands among other aspects. In her promotional endeavors, the advertisement will contain a clear message targeting the specific consumers through an appropriate channel. The message will inform the customers which specific outlets where they can get the I Battery, the unique features that will make them identify the product, the cost of the battery and the overall advantages of using I Battery. This intended message will ensure that the consumers are aware of the various features of the battery and the compatibility of this product with their devices. Moreover, based on the fact that advertisements regarding the I Battery will start streaming into the market even prior to the launching of the product, this will help in increasing the awareness of the consumers, triggering their anxiety to try the new product and fostering their preparedness even before ‘I Battery’ is rolled into the market. The promotion of this product through various channels will target the entire realm of prospective customers who are analyzed in a preceding section. In addition, the advertisements will pay close attention to users demand in terms of communication mode preferences as well as keeping a close touch with the changing trends in technology. This includes aspects like the dynamism towards e-commerce in the modern times, for instance Australia Online shopping sites, as opposed to other lesser preferred modes like newspapers. In regard to media plan, the producer of I Battery will exploit channels like radio, television, print, internet among other channels. For instance, Yannopoulo (2011) inferred that the internet has a massive influence on the pricing strategy of a firm in regard to increased suppliers, research in pricing, provision of more information to consumers among other merits. The chief media which will be used in promotion include; Internet: The internet based technology will have a significant impact in reducing the marginal cost for producing the adverts. This is founded on the fact that the adverts will reach a wide range of consumers, not only in Australia but also across the globe. I Battery will also be advertised through the websites of other companies like Apple, and also the companies responsible for introducing the product to the market. The use of the internet in advertising will increase the convenience of online shoppers by providing them with the information they need when purchasing the product. This is supported by Coughlan, Anderson, Stern and El-Ansary (2001) who cited that one of the biggest merits associated with electronic shopping is that by allowing the consumers to shop in the comfort of their home, this increases the level of convenience. Radio and Television: The utility of the television in promoting I Battery will be higher than the radio. This is because the prior medium combines both the audio and pictorial advertisement unlike the latter which is limited to audio advertisement. The most favorable time for running the advertisements in both media will generally be in mid-to-late week which will have more impact in reaching the international, national and regional audience. Print and word of mouth: The print promotion will entail the use of printed material like newspapers, flyers and magazines which will give the producer a chance to explain the where, why and when the consumers can purchase the product, both at the national and regional level. On the other hand, word of mouth promotion will be spearheaded by the satisfied customers. This will be encouraged through offering incentives to customers who bring back other users to the I Battery outlets. This will be ideal among restaurants, hotels and airlines analyzed below. All these media will be integrated using a harmonized message to the consumer. The effectiveness of this mix will basically be assessed through internet based research where the consumers will give feedback in regard to their satisfaction with ‘I Battery’ and any possible improvements. In addition, the producer of I Battery will concentrate on sales promotion to encourage purchases by using coupons, incentives, prizes and free samples. This will be through the companies responsible for introducing the product to the market. It will also utilize other programs like customer sensitization through trade shows, exhibitions and workshops. The promotion will target specific businesses which will be pivotal in the efforts to release the product to the market (B2B promotion). These businesses are analyzed below. Airlines: This will be the chief position of the business. The principle strategy that will be utilized in this endeavor will entail selling the rechargeable I Batteries to the airline and they in turn rent them to the customers. This will be geared towards convincing the travelers that I Battery is a perfect backup power source for their passengers, mostly those undertaking long flights. The company producing I Battery will also give quantity discounts to the airline whereby they will get a 10% discount if they purchase 1000 items. Towards this end, the company will send sales person to the airline to give them some samples as trail products. Afterwards, the company will collect feedback from them which will be used to improve the product in the long-term. This exercise will be regular to ensure that the quality of the product will be reviewed from time to time in order to meet changing consumer demands. Rosen, Schoroeder and Purinton (1998) infer that it is imperative to be cognizant of the need to clearly identify and profile a target market, and bear in mind that the profile of the target market will change overtime. In addition, the producer of I Battery will print the logo of the airline on the I Battery which will heighten the popularity of the airline among the users of the battery who comprise majority of the travelers. On the other hand, this will be an ideal channel for promoting the battery among the users of the airline, culminating in a mutually beneficial relationship between both firms. The producer of the I Battery will also adopt a captivating slogan “You’re never fly alone, ensuring more happy hours in your journey with the long life I Battery on your side”. This will be key in triggering the feeling and showing the brand’s claim and philosophy. According to McKnight and Paugh (1999), slogans can appear on products, propel marketing and an advertising operation and or assist in identity change. The brand name, vision and mission, merits and slogan of I Battery will be advertised in travel magazines like Australian Travel & Living, Traveltalk Australia, Australian Traveller, Scoop Traveller WA, Arrivals + Departures, Cruise Passenger, Cruise Passenger, Vacations & Travels among others. Also, both national and regional newspapers like The Advocate, Australian Financial Review and Business Day will be utilized to advertise the product as well as online shopping websites and private companies’ websites like Apple Corporation. This will capture the outstanding merits of I Battery among travelers as opposed to other brands. In these magazines, the website of I Battery producer will be published as well as social networks’ I Battery fan page. To meet the latter objective, the company will publish its homepage links in search engines like Google not forgetting publishing the “I Battery, ultimate convenience” adverts in social networks such as Facebook and Twitter. Some of these strategies will also be utilized in advertising the product in other secondary positions which include; Restaurants which use iPads for their menus: This will entail sensitizing them about the benefits of using the I Battery with their iPads. Towards this end, the company’s sales team will be dispatched to these firms to convince them of the various merits of I Battery. In addition, the company will give these firms free versions on how to use the product. Hotels: This will be targeting the guests in these resorts aimed at convincing them that I Battery is ideal for them. This will be mostly among those on long-term board and don’t have regular access to power sources in order to frequently recharge their devices. The advertisement will be through displaying the I Battery brochures and flyers in their firms, giving their staff free training on how to use the product, giving them free samples and commission on each sold I battery. This will not only motivate them, but also aid in reaching the target customers. 1.5.4: Channels The channel of distribution will be tailored to ensure maximum accessibility by the consumers. This will chiefly concentrate on retailers based on the recent popularity of retail outlets in the Australian market. These retailers include JB, HI, Fi and other electronic stores. In regard to the retail plan, the producer of I Battery will opt for selective distribution as opposed to either intensive or extensive distribution. Selective distribution entails narrowing the distribution to limited businesses (Ehmke, Fulton & Lusk, 2010). The chosen retail distributors will mostly be those primarily engaged in distribution of high quality electronic products. The most preferred place of displaying the product will be next to the devices like iPhones, iPads and iPods. Conclusion The producer of I Battery will exploit the aforementioned tenets in its efforts to introduce a new rechargeable battery into the market. Apart from doing an exhaustive customer analysis and SWOT analysis, it will utilize the preceding strategies and tactics to ensure successful penetration of the product to the intended to the market. References Anderson, P.F 1982, ‘Marketing, strategic planning and the theory of the firm’. Journal of Marketing, vol. 46, no. 1, pp. 15–26. Al-Rousan, M. & Qawasme, F 2009, The Impact of SWOT Analysis on Achieving a Competitive Advantage: Evidence from Jordanian Banking Industry, International Bulletin of Business Administration, vol. 243, no. 6, pp. 82-92. Carroll, A & Heiser, G 2010, An Analysis of Power Consumption in a Smartphone, NICTA, University of New South Wales, Wales. Coughlan, AT., Anderson, E., Stern, LW. & El-Ansary AI, 2001, Marketing Channels, 6th edn, Prentice-Hall, Upper Saddle River, New Jersey. Ehmke, C., Fulton, J & Lusk, J., 2010, Marketing’s Four P’s: First Steps for New Entrepreneurs. Available from: < http://www.ces.purdue.edu/extmedia/ec/ec-730.pdf>. (22, March, 2009) McKnight, O. & Paugh, R 1999, Advertising Slogans and University marketing: An Exploratory Study of Brand-Fit and Cognition in Higher Education. Marketing Management Association, Vol.1, no.1, pp. 50-55. Pendlebury, T.Y, 2010. Just Mobile Gum Plus Backup Battery. Available from: < http://www.cnet.com.au/just-mobile-gum-plus-backup-battery-339306642.htm>. (22, March, 2009) Planet Ark, 2010, Battery Use, Disposal and Recycling in Australia, Research report, Australian Battery Recycling Initiative (ABRI), Australia. Rosen, D.E, Schoroeder, J.E and Purinton, E.F 1998, Marketing High Tech Products: Lessons in Customer Focus from the Marketplace, Academy of Marketing Science Review, vol.1998, no. 6, pp. 1-17. Yannopoulo, P., 2011, Impact of the Internet on Marketing Strategy Formulation, International Journal of Business and Social Science, vol. 2, no. 18, pp. 1-7. Read More