Marketing Strategies and Planning - Wellington Wines Company - Case Study Example

Name: Course; Tutor: Institution: Date: Marketing Strategies and Planning Table of Contents Table of Contents 1 Executive Summary 2 1.0 Company’s Current Situation 2 2.0 Competitors & Market Analysis 5 3.0 Marketing Objectives 5 4.0 Marketing Strategy/strategies 6 5.0 Action Plan 9 6.0 Marketing Budget 11 7.0 Conclusions 11 Works Cited 12 Executive Summary The report offers a situational analysis of the Wellington Wines Company, where through a SWOT analysis it reveals that the venture has strength in its financial status, but challenges in lack of direct links with the market and low profitability margins. A further competitor’s analysis indicates that the competition applies technology based marketing tools as well as indirect distribution channels. Based on this understanding, the report develops marketing objectives to create direct distribution channels, use technology to reduce marketing costs, increase customer loyalty, and increase the target customer base respectively. The report recommends the use of the social media marketing and direct outlets as it key strategies. If further offers a budget and the proposed action plan for the strategies execution. 1.0 Company’s Current Situation In order to develop a sufficient and applicable marketing plan, it is imperative that the existing organizational situation is analysed and reviewed. In this case, an internal analysis of such an organisations becomes pertinent. In order to review and offer a critical analysis of Wellington Wines Company, the report offers a SWOT analysis. The SWOT analysis is based on the strengths, weaknesses, opportunities and threats facing the venture internally. 1.1 Strengths Organsiational strengths are the internal features resources, and capabilities that enhance its overall competitiveness in the market. Organizations rely on these resources and capabilities in the development of relevant strategic decisions and market operational strategies such as the marketing strategies. On one hand, an evaluation of the Wellington Wines Company illustrates that the venture has a strong financial base. In this case, the venture has a relatively high sales revenues as illustrated in FY 2012 where the total revenues were $50 Million AUD. The above findings indicate that the venture has the strategic and overall potential to finance and fund its respective strategies. For instance, the financial analysis offered for the venture indicates that it offers 2% of the sales revenue for its marketing functions and strategies execution. The above analysis indicates that upon the development of relevant and market fitting strategies, the venture will successfully finance its operations in the market. The second key strategic strength exhibited by the venture is its wide brands variety. In this case, the organization has two different brands that are independent and serve as unique profit centres. As such, through the presence of such brand differences, the venture is likely to overcome market failures. For instance, if the Wellington Sauvignon Blanc led to market losses, the venture would offset the losses through the Wellington Chardonnay brand sales. As such, this provides the venture with the suitable basis for overcoming competition in the market. Thus, the above analysis indicates that the company has its key strengths form its financial stability as well as strong product brand images in the market. 1.2 Weakness An evaluation of the venture operational and marketing system illustrates a major weakness. In this case, the organisational profile information indicates that the venture relies of supermarket chains and independent distributors to avail its products in the market. Although this is perceived as a price and cost product in the market, it has major limitations. One it reduces the market relationships and contact between the venture and its customer’s base. In this case, there is no direct communication and relationships development between the organisation and the customer’s n the market. The development and emergence of this trend has the lasting impact of reducing market customer base and loyalty respectively. 1.3 Opportunities The venture has a rising opportunity to increase its market dominance and influence in Australia and beyond. The rising opportunity is the rise of international trade and global markets rise. Through the emergence of the global markets, organisations are able to successfully evaluate the international market, and as such venture into such emerging markets to reduce domestic competition. In this regard, the Wellington Company has the opportunity of investing and selling products in the international market. In this case, ease of communication and movement of goods will serve as additional support tools for its investment. Once the venture invests onto the global market, it has the potential for reducing domestic market and as such extends its product and market organisational lifecycle. An evaluation of its operations historically indicates that the venture is currently at its maturity stage in the Australian market. Therefore, the external market opportunity provides an opportunity for it’s to extend its lifecycle by reversing back to the introduction and growth stages in the new markets. 1.4 Threats Although with a large share of opportunities, the venture faces threats in the declining profitability rates. In this case, an evaluation of the 20102 FY revenues indicated that for each case of products, containing 12 containers, the venture generated $120 AUD. The above analysis I an indication of the declining profit abilities in the market, per product. In this case, the analysis indicates that only a profit of $10 AUD is attained per old wine bottle, which is minimal. With rising market competition, this trend is expected to grow and project into the future. 2.0 Competitors & Market Analysis In order to develop a concise market environment analysis, this report develops a critical focus of the Australian wine industry competition, In particular, the report evaluates the distribution strategies applied by the competition in the market, as well as their marketing approaches respectively. One major wine competition in the market is the Australian wines vintage among others. In this case, an evaluation of this organsiational as a key market leaders illustrates that the venture applies the technology based marketing. In this case, it has a strong market bran as well as a stable financial base. Consequently, the organization, similar to others in the industry have adopted modern and technology based marketing systems (Australian Vintage Limited, 2015). Moreover, an evaluation of the industry indicates a trend towards the use of chain supermarkets in the distribution process. In this case, the review indicates that the industry stakeholders opt for the less expensive and less involving distribution approach (The Australian & New Zealand Wine Industry Journal 409). The use of this distribution approach plays a critical role in enhancing the organsiational concentration on the core activities. Thus, a competitor’s analysis on the Australian market illustrates the use of modern technology marketing, as well as the indirect distribution channels respectively. 3.0 Marketing Objectives Based on the above analysis, the report offers a series of marketing objectives that the venture intends to achieve. A marketing objective is the ultimate goal that an organisation works to achieve. In this case, a marketing objective serves as a motivation basis for employees in the department, as it outlines the organsiational visions and responsibilities in the market (Strydom 207). However, although marketing objectives are a responsibility of the marketing function, they should be in line with the overall organisational goals. In the development of a marketing objective, two issues are at the fore front. One is the organizational situational analysis often evaluated through a SWOT analysis. The analysis offers a clear illustration of the organsiational resources that enables t mitigate challenges in the market. On the other hand, the second element is the market competition and landscape (Robinson 53). In this case, the competitors analysis illustrates the channels and systems adopted by the competitors, creating a precedence for the venture to follow or to differentiate, based on its strategic goals and objectives in the market. Based on the above analysis and understanding, the following are the key marketing objectives for the Wellington Wines Company: 1. To develop direct marketing channels to the customers within 5 years 2. To lower marketing costs by 40% through technology adoption in three years 3. To develop customer loyalty and retention to 50% within 2 years 4. Increase target consumer base to the least 20 years from the current 27 years 4.0 Marketing Strategy/strategies In order to achieve the listed marketing goals and objectives, it is imperative that the venture applies a wide range of marketing strategies in the Australian market industry. In this case, this section offers an overview of the different, marketing strategies that the venture will use to achieve its set marketing goals and objectives within the set timelines respectively. 4.1 Social Media Use One of the key marketing strategies to support the attainment of the organsiational marketing goals will be the use and adoption of social marketing systems. Traditionally, organizational marketing strategies were limited to the mainstream systems such as the mass media and print communication. However, there have been numerous market and societal changes in the market. In this case, the elderly generation, which the company previously targeted still, relies on these communication channels (Zimmerman 22). However, the younger generation is increasingly adapted and inclined to the use of technology and by extension the social media. In this regard, advertisements and marketing approaches through the mainstream media does not reach out to this population category. Therefore, in order to reach out to this consumer group category, the venture will use of social media marketing. These will include strategies of advertising events and product features on the social media platforms such as facebook and Twitter among others. The use and adoption of this marketing strategy will serve as a critical marketing development. On one hand, it will enable the organization reduce its marketing costs. A majority of the social media platforms operate on a low cost or no expenses model such as Facebook. Therefore, through advertising and marketing products through such platforms, the venture will reduce its operational marketing costs (Zarrella 15). This will be a major milestone towards the achievement of its marketing goal for reducing the overall marketing costs by 40%. Moreover, the use of the social media marketing platform will enable the venture reach out to the younger generation in the society. As such, this will enable it achieve its marketing goals and objective for extending its customer target base to the early 20s population category. 4.2 Retail Marketing The second marketing strategy to be applied by the venture is the adoption of wholesale and retail marketing outlets. Currently, an evaluation of the venture marketing system illustrates that it sells directly to supermarket chain and independent stores in Australia. This has been linked with a low customer loyalty and relationships level in the venture. In this case, the marketing strategy will incorporate the setting up of regional wholesale and retail outlets. In this case, although the venture aims at retaining its independent distributors’, it will set up additional marketing and selling centres respectively (Evans 39). In this regard, it will establish regional wholesale outlets, from which the independent suppliers can source the products. On the other hand, it will similarly establish retail outlets in strategic malls and locations in Australia. Through the retail outlets, the venture will employ staff to relate directly with the customers and collect their views and opinions on the organsiational different products and systems. Based on the above analysis, the use of the direct marketing and selling centres in the market will play critical roles in enhancing the attainment of the organsiational goals and marketing objectives. On one hand, the use of direct sales will enhance the attainment of the first marketing objectives of fully developing direct marketing and selling systems within five operational years (Rogers 80). Secondly, the use of the direct marketing and sales systems serves as a tool through which to develop customer loyalty and retention within 2 years to a 50% level. In this case, through direct involvement and relationships with the customers, the organsiational sales staff will learn of the challenges and issues facing the customers. In return, this will allow for flexible operational systems, and speedy response to customer feedback and needs. The key influencing factor in the development of customer loyalty and satisfaction in the global market is the response offered to their feedbacks. As such, speedy and flexible feedback systems will promote their loyalty and subsequently the retention rates to a venture. Thus, this marketing analysis argues that through a direct link form the retail outlet employees and the organsiational systems, the speed of response will enhance retention and loyalty in the long run period. 5.0 Action Plan In reference to the above marketing strategies, it is imperative that a number of practices and systems will be implemented to create the two strategies respectively. In order to develop and enhance the successful implementation of the practices, this section offers an action plan. The action plan presents a tabulated process through which the two strategies will be implemented. In this case, each of the discussed two strategies is categorized into their respective action and steps. The action plan outlines the different resources required to operationalise each of the actions, as well as the individuals responsible as well as the timelines respectively. Strategy Activities Resources Required Responsible functions Timelines Social Media Marketing Employee social media marketing staff The availability of recruitment funds as well as a competent recruitment team compilation This is the responsibility f the organsiational HR manager and function Within 1 month Train the social media marketing staff and other employees Availability of social media marketing trainers, either internally or externally. The availability of organsiational resources such as venue and financial resources to support the training PROGRAM. The responsibility of the marketing manager. This is in collaboration with the training and development manager in the venture, at times serving as the HR manager. 6 months Set up and manage the social media sites The availability of sufficient technology and financial resources to support the setting up The responsibility of the marketing manager. The first year to allow for equipments procurement Monitor and evaluate the marketing impact Tools to evaluate performance, such as number of users and views. The overall cost of the marketing function The marketing manager One to three years. Done annually Direct Marketing Market survey This will include the availability of sufficient marketing staff and financial resources to fund the marketing survey The marketing function Within three months Location Selection This will require the input of the executive management to formulate decisions The executive management, through the advice of the marketing manager Within 6 months Outlets establishment This requires capital and labour to furnish and design the outlets as well as stock them The executive manager. Implementation by the marketing manager Within 1 year of the executive location decision. 6.0 Marketing Budget Item Cost ($AUD) Staff hiring and compensation 100,000 Technology equipment acquisition 400,000 Marketing survey 100,000 Outlets setting up 400,000 1,000,000 7.0 Conclusions Based on the above analysis, it is apparent that the Wellington Wines Company has a share of its merits and demerits. In this case, A SWOT analysis on the venture operations indicates that it has a relatively high financial base, but faces the weakness of low customer relationships. Moreover, besides its international market venturing opportunity, the low profitability margin remains a threat. A further market analysis reveals that the competition in the Australian market relies on similar distribution and marketing strategies. As such, based on its marketing objectives, the report argues that the venture will apply the social media marketing and the direct marketing strategies respectively. Finally, t offers the action plan for the strategies execution based on the various activities and required resources. Supporting Documents Works Cited Australian Vintage Limited, Distributors’ 2015. Accessed at < http://www.australianvintage.com.au/ > [Accessed: 11 November 2015]. Evans, Dave. Social Media Marketing: An Hour a Day. Indianapolis, Ind: Wiley, 2012. Print. Robinson, Jancis. The Oxford Companion to Wine. 4th Rev. Ed. Corby: Oxford University Press, 2015. Print. Rogers, Stuart C. Marketing Strategies, Tactics, and Techniques: A Handbook for Practitioners. Westport, Conn: Quorum Books, 2001. Print. Strydom, Johan. Introduction to Marketing. Cape Town, South Africa: Juta, 2004. Print. The Australian & New Zealand Wine Industry Journal. Adelaide: Australian Industrial Publishers, 2011. Print. Zarrella, Dan. The Social Media Marketing Book. Beijing: O'Reilly, 2010. Print Zimmerman, Jan, and Deborah Ng. Social Media Marketing All-in-One for Dummies. Hoboken, NJ: Wiley, 2013. Print Read More