C-Kayak Australia Pty Limited - Case Study Example

Marketing plan Table of Contents Table of Contents 1 Introduction 2 Marketing Objectives 2 Target Market(s) and positioning 3 Demographic, psychographic and behavioural segmentation 4 Segmentation approaches needed 4 Positioning the product for the target segment 5 Overall approach to an appropriate marketing mix 6 Product 6 Price 7 Placement 7 Promotion 8 Conclusion 8 References 9 Introduction C- Kayak Australia Pty Limited is an Australian Kayak company; it is a market leader in its niche. The company mainly deals with promotion and selling of kayaks in retail markets in the industry. C- Kayak has managed to stay competitive in its niche because of providing its customer base with wide range of products which are also affordable. SWOT analysis reveals that despite the weaknesses and threats facing the company, C- Kayak have more strength such as its position in the market and many opportunities including increasing its product varieties and further customizing them to address different market targets. C- Kayak has also gained from the growing market as well as the shifting customer focus toward more environmentally savvy products. More so, the core segment is also focusing on becoming physically fit and hence forming the basis of the company’s success in its niche. This market plan focuses on creation of market objectives, analysis of the current market mix and recommendations based on the existing framework. Marketing Objectives The key market objectives of C-Kayak in the 12 months period are as identified below: Ensure market sustainability- This is an important objective amidst increasing competition from existing and new kayaks distributors in the country. It is expected that the kayak industry will grow in the next few months because of economic advantages offered by kayaks; they are cheap and not costly to operate as they do not consume fuel. Maintain market leadership – This is an important objective for C-Kayak as competition intensifies, the company will therefore concentrate on reorienting itself to the existing market as global competitiveness grows. Grow market share by 20 % within 12 months- This is an ambitious but imperative objective of C-Kayak , through effective strategies, the market share can be increased substantially through the recommended strategies (Ranchhod, Gauzente & Tinson,2004). To become the most trusted and known brand in the industry- This objective can be achieve within the next 12 months by putting mechanism and strategies in place that will not only boost the sales of kayaks in the industry but also ensure excellent strategic positioning in the minds of the consumers in the industry. Target Market(s) and positioning The target market segment is the age group of 20-60 years of age; the lucrative sub segment is the 40-60 years old people. The rationale for this statement is mainly because this segment is more interested in keeping fit; they also have the money to spend in leisure and exercising activities as compared to younger demographics. More so, the target market segment incorporates people living near bodies of water, this is important because such people within this demographic have a higher likelihood of purchasing fishing vessels such as kayaks (Stole & Livesay, 2007). Demographic, psychographic and behavioural segmentation Psychographic and behavioral segmentation approaches that will be employed in this case are as follows. Psychographics analysis will focus on values, attitudes, interest and lifestyles of the target demographics. A careful study of what these people value, such issues include cost aspects, their hobbies and interests (Libman, 2006). A number of old people from age 40-60 enjoy relaxing activities such as fishing, swimming and jogging. This is important for them as they keep fit and maintain their health. This sub segment also has adequate money to spend because most of them have old children who have left home to establish themselves elsewhere and commence new life. This consideration means that this demographic has the money to spend on other leisure activities and hobbies. The sub segment of 20-39 is in their active life period but differ in priorities with the 40-60 years market segment (Loibl, Diekmann, & Batte, 2009). They are more concerned with long term investment and also have limited resources to spend in leisure. However some section of this sub segment value leisure time and hobbies and will therefore spend money in buying fishing or other leisure equipments. Based on this information, the identified customer segment is 20-60 years where the sub segment of 40-60 is expected to be more lucrative segment because of their current lifestyle (Temporal, 2002). Segmentation approaches needed Based on the analysis of the psychographic and behavioral segmentation, it is clear that there are two distinct customer demographics, the 20-39 and the 40-60. The former is less lucrative than the later; this is because of the immediate life priorities to these individuals. In order to reach both of these sub segments, different approaches will be used. In the 20-39 year segment, emphasis on the need for leisure activities will be ensured amidst busy schedule. This will be implemented through social networking sites (almost 98 % of this group is in the social media), print media will also be employed in order to ensure that the message reach the intended target group (Maritz, 2008). With the 40-60 year bracket, the social media may not be the best place to reach them however, utilizing TV and radio as the medium will be the most appropriate means of reaching this target segment. Emphasis on the need to exercise old bodies will be the message. C-Kayaks can also optimize on the availability of varying kayaks makes and what they contain in terms of accessories which are important during fishing experience. Cost of these products will also be emphasized for both of these segments (Wilson & Gilligan, 2005). Positioning the product for the target segment C-Kayak Australia Pty Limited (hereon referred to as C-Kayak Australia) is one of the most successful kayaks distributors of kayaks in Australia. C-Kayak has won majority of the Australian market through ensuring that there are many varieties of kayaks available and at different affordable prices. C-Kayak has achieved this by effectively handling the suppliers power of bargain through purchasing from varying suppliers and hence getting the best prices which are passed on to consumers. C-Kayak products have managed to get into the minds of its consumers relative to its competitors because of their effective strategies (Lee & Chen, 2005, p.27). In order to improve their positioning in the market, C-Kayak needs to define its clientele in basis of attributes. In this case, C-Kayak will optimize on the two sub segments and create more unique products for both the old and the young demographics. As an example, music systems with connections to latest music can be integrated into fishing kayaks of 20-39 years and the same integrated to 40-60 years but varying in music taste. Country music for instance will work for old people. By implementing these positioning strategies, C-Kayak will be able to differentiate itself from other competitors and hence hold on to its market niche amidst developing competition (Berthon, Ewing, & Napoli, 2008). Overall approach to an appropriate marketing mix The current market is receptive for further variations of the market mix element in order to ensure sustainability in the market. C-Kayak has been operating in the market for the past years successfully because of ensuring that the product is quality and of many varieties for the customer to choose, at the right price (with price variation depending on the product), by placing the product at the right place at the right time and by using effective promotional strategies especially online platforms and retailers in different regions (Cui, & Choudhury, 2003). C-Kayak has succeeded in the current market condition but sustainability demands constant evaluation of the current strategies and fine-tuning them in order to reorient the company to the future as competition increases. Recommendations on the key market mix elements are proposed as follows. Product C-Kayak provides a wide range of products to its customer base because of its many international suppliers. In order to improve on the product quality, C-Kayak needs to enhance its products after purchasing them from the manufacturer. This can be done through further customization and value addition. As identified in market segmentation, value addition can be done by integrating a music system to the 20-39 year sub segment and installing current mp3/mp4 players which the young adult can enjoy (Provost, 2007). The same thing can be done with the 40-60 year sub segment but the music variation can be adjusted in order to fit their test. It is also important to consider integration of more advanced and assistive accessories especially in the 40-60 year sub segment because this group is more lucrative and ready to spend on value added services (Groucutt, Leadley, & Forsyth, 2004). Price Currently, C-Kayak offers a range of pricing to its wide range of products. This has enabled the company maintain a high customer base. Despite the current success, there are a number of recommendations necessary for C-Kayak to implement in order to fight off new competitors entrants. The first and the most important consideration for C-Kayak to implement is psychological pricing strategy. This can be implemented by adjusting the pricing of the kayaks to reflect change psychologically. This can be done by setting new prices for products such as; for a fishing kayak costing $1000, the price can be adjusted to $999 (La Roche, 2005, p.52). This will reflect a price reduction which is in real sense insignificant. Secondly, matching the prices with the competitor’s prices is essential; this will always keep these competitors at bay. Placement C-Kayak has worked hard to ensure that its customer get their products at the right place at the right time. This is the reason why they are the market leaders. There are however recommendations for improvement in order to enhance its competitiveness. One of the major recommendations is for the company to ensure better placement strategy especially in regions well known for fishing in Australia. The company can begin this by ensuring presence in regions such as Karri valley, Walpole, Green heald/leeman, exmouth, Rottnest Island, Kalbarri, Montebello Island, Blackwood River, Rowley shoals and Fitzroy River among others. The other strategy will involve studying the areas demographic distribution and providing the right products to the relevant market (Kaynak, 2002). Promotion C-Kayak has mainly relied on online marketing portal for the promotion of its products. However, ensuring that the promotional strategies implemented are more focused is beneficial to the company. Following the segmentation approach, online platforms of promotion such as the social media will be employed mainly to target the 20-39 sub segments, the rationale for this is because majority of these segments are in the social media and hence getting the message through the right channel will yield more positive results for the company. On the other hand, the 40-60 sub segments will be reached through print media, TV and radio (Kahle & Riley, 2004). This old age group is more likely to be involved in TV watch as compared to the younger generation. The emphasis in this case is using the right medium to target the right group of customer groups as elaborated by the psychographic and behavioral segmentation approaches. Conclusion This marketing plan is important for the company, the reason for this is because it helps the company reorient itself in the industry and optimize on its current market position to achieve the stated objectives. In the current competitive world, it is important to continuously make amendments to the current marketing strategies in order to avoid falling to the hands of competitive new entrants. The objectives clearly stated in this case are useful for the company because they provide a fundamental framework for the company to achieve its targets. The objectives focus on increasing market share, ensuring sustainability, maintaining market leadership and enhancing the company’s brand value. All these aspects are imperative in ensuring that the company survives through the next 12 months. The proposed market mix strategies aim at achieving the goals/objectives set. The key elements selected in this case add variations that should be integrated in the company’s operations in order to improve sales, market share and brand popularity. The proposed strategies can be employed tactically and strategically by the company to increase market share and maintain market leadership by ensuring that they are implemented correctly and at the right time. These are important considerations in ensuring that the program is successful. In summary, the role of the marketing plan is to ensure that the current roles of the business are focused towards achieving sustainability through increased market share and sales volume. References Berthon, P., Ewing, M. T., & Napoli, J. (2008). Brand management in small to medium-sized enterprises. Journal of Small Business Management, 46, 33-36. Cui, G., & Choudhury, P. (2003). Consumer interests and the ethical implications of marketing: A contingency framework. Journal of Consumer Affairs, 37 (11), 48. Groucutt, J., Leadley, P., & Forsyth, P. (2004). Marketing: essential principles, new realities, Atlanta, GA: Kogan Page Publishers. Kahle, L. R., & Riley, C. (2004). Sports marketing and the psychology of marketing communication book, San Diego, CA: Lawrence Erlbaum Associates. Kaynak, E .(2002). The Global business: four key marketing strategies, London: Routledge,. La Roche, M. (2005). Cultural perspectives on marketing functional drinks. Journal of services marketing, 42 (7), 52. Lee C., & Chen, W. (2005). The effects of internal marketing and organizational culture on knowledge management in the information technology Industry. International Journal of Management, 22 (11), 25-27. Libman, A. (2006). Government-business relations and catching up reforms in the CIS. The European Journal of Comparative Economics, 3 (10), 38. Loibl, C., Diekmann, F., & Batte, T. M. (2009). Consumer self-confidence in searching for information. Journal of Consumer Affairs, 43 (2), 24. Maritz, A. (2008). Entrepreneurial services marketing initiatives facilitating small business growth. Journal of Small Business and Entrepreneurship, 21 (7), 5-6. Provost, C. (2007). Marketing: My Best Friend's iPod. Journal of Advertising Research, 136 (14), 44. Ranchhod, A., Gauzente,. C & Tinson,J.(2004).Marketing strategies: a twenty-first century approach. Boston, MA: FT/Prentice Hall, Stole, I. L., & Livesay, R. (2007). Consumer activism, commercialism, and curriculum choices: Advertising in Schools. The Journal of American Culture, 30 (6), 45. Temporal, P. (2002). Advanced Brand Management, From Vision to Valuation, Sydney: John Wiley & Sons. Wilson, R ., & Gilligan, C .(2005).‘Strategic marketing management: planning, implementation and control’, International Journal of Business, 9 (2), pp. 27-31. Read More