BSBMKG608 Student Assessment Project
Section 1 Indentify Strategic Direction
- Mission, Vision, Values and Purpose
Mission: Adventure Caravans work towards building wonderful family memories by facilitating them quality family caravans in order to achieve the target market.
To act as responsible organisation aiming at creating the healthy working environment for the employees
Vision: To move ahead to be leading caravan and camper manufacturer and supplier in Australia.
Values
- Quality Service Delivery
- Customer Satisfaction
- Accountability for employees
Purpose
The main objective of this organisation is to produce the quality commercial caravans and campers to build the achievable market share in order to become the number supplier and manufacturer of it market. At the same time, facilitate the good relation and working atmosphere to internal stakeholders.
- Adventures Caravan’s strategic organisational documents to identify organisational directions and targets
- Memorandum of Association
- Article of Association
- Sustainability Report
- Annual Report
- Situational analysis identifying factors impacting the direction and performance of Adventure Caravan.
The direction and performance of the company can be impacted by the current market trend of the over production of the caravans and campers at the same time, there are 130 companies in the market to give the competition to the company.
Therefore, company need to bit change its selling strategy as company should start open the stores in the market along with direct selling from the factory. This practice will create the company recognition in the market and increase the sale that will definitely improve the company performance.
- Legal and Ethical requirement
Legal Requirement
- Compliance of Caravan Act for production
- Production License
Ethical Requirement
- Demonstration of Accountability for road safety and parking system
- Follow the traffic rules
- Strategic Direction of the Adventure Caravan with owners, directors or senior management and impact on marketing activities.
It has been discussed among owners, directors or senior management in company meeting while formulating the strategic direction for company that company will open the physical stores in the market in next three years.
It will boost up the company’s direct connectivity to the market and growth of the business. At the same time, company will hire the executive’s sales man and hire the office to start the stores. Moreover, the decision of management is based on the industry forecast that caravans manufacturing industry will grow in next ten years.
Organizational Chart
Section 2 Review Marketing Performance
- effectiveness of previous marketing and positioning strategies to identify lessons learned
The previous marketing and positioning strategy was quite effective as company delivered the quality goods and services. The main element that benefited the company that it produces its own products and sell in the market that leads to cost saving and higher rate of return.
At the same time, it majorly targeted the average income families providing the mid-priced family caravans priced $30,000- $ 70,000. It created the space for the company into upper end of market segment. Apart from that, the strategy of selling the 90% of adventure caravans directly from factory makes the marketing cost economically.
- Current key products or services and major markets for strengths, weaknesses, opportunities and threats
SWOT Analysis
| Strengths
· Company has its own manufacturing factory. · It also deals in product part repairing. · It has earned good amount of profit and revenue.
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Weakness
· It majorly sells its products majorly through direct selling from factory. · It has less visibility in the market.
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| Opportunities
· As per the market research and forecast the possibility for growing the caravans industry. · Company has opportunities to expand its business by opening physical stores in market (Patterson et al., 2015) |
Threats
· There are 130 Companies in the Caravans manufacturing sector that are in the competition of the Adventures caravans. · The trend of flat pack vans can threat to the company in local market. |
(c) Previous marketing opportunities captured by the organisation, and examine and document their profitability
The profitability of the company can indentified through the annual sales number that company sold the 200 caravan in per year. At the same time, company earned the good profit and provided to the stakeholders. It kept the product price economic targeting the middle class section customers and mobilize the market by delivering the quality products.
- Organisation the marketing performance against previous objectives, targets to identify critical success factors, and areas for improvement
PEST Analysis
A PEST analysis (political, economic, social and technological) assesses a market, including competitors, from the standpoint of a particular proposition or a business.
The subject of PEST analysis
| Political | Economical |
| The political environment of Australia includes regulatory considerations. In this way, the political system of Australia is not impacted by political factors. The canvas business industry takes the benefits from Australian trade agreements with other countries such as New Zealand.
In addition, it is also determined that Australia is considered a constitutional monarchy with Elizabeth II. At the same time, the Australian political environment develops a very close association with the US so it is beneficial for the businesses to expand their businesses in the UK along with Australia. |
Under Australia, it is identified that the country has relatively high prices of the property in relation to income levels in Australia, creating a great demand for rental properties. In fact, this demand is too high in some main cities in which rental prices are firmly set to increase, completing any purchase into a buy-to-let property market potentially profitable.
The current company tax rate in Australia is 30%. However, a base rate entity company with an aggregated turnover of less than $25 million can apply for the lower company tax rate which is 27.5%. This would not be better for the company as it has to pay more tax according to the Australian government. |
| Social | Technological |
| Australia is one of the best countries to live and stay as well as operating business in the world in the manner of wealth, education, health, and quality of life. Compared to other major economies, Australia has a relatively small population of 22.9 million.
Australia adopted a policy of mass immigration after the Second World War; however, migration is a politically sensitive issue in Australia. On the basis of this, the company has to face the problems due to social factors in Australia. |
Australia is one of the most technologically advanced countries in the world. It is well-known for adopting new technologies at a faster rate than many other developed countries. The country has witnessed an enormous growth in technology over the years. Technology purchases will grow 4% in 2018 to $63 billion and to $65 billion in 2019.
Local companies are investing in technologies to meet the growing demands of their customers. In a similar manner, Adventure Caravans also has to spend on its technology while manufacturing the products. |
Section 3 Indentify Strategic Direction
- Analyse marketing opportunities for viability and likely contribution to Adventure Caravan
According to the market research that caravans manufacturing will be growing in coming ten years and presently at the highest production levels in 37 years. At the same time, the reason behind growth of this sector is increased customer demand that is proved by the caravans’ registration report and registration rate is increased by 4.9% in Australia.
In this scenario Adventure Caravan has great opportunity for the business expansion because of caravans has been enhanced due to growing sector and caravans parks. In relation to this, company can supply its products to the caravan parks and colonies to maximize the profit.
- Use an assessment of external factors, costs, benefits, risks and opportunities to determine scope of each marketing opportunity
Costs: In order to set up the outlets in the market company and export the components from overseas will invest the cost related to licensing, transportation, salesman hiring, office rent and advertisement cost and initial capital.
Benefit: This business is benefitting economy in terms of employment to the local communities and resolving the housing issue of the immigrants.
Risks: The risk factor in this industry is associated with government policy. Short viewed government decision made by the local governments affected the growth rate of this business.
Opportunity: Company has bright opportunity to expand its business in caravans manufacturing sector. At the same time, opportunities are also increased as this sector is benefited in terms of employment and the caravan facility has been appreciated by the visitors. Apparently, requirement of such products has been growing due to increased demand.
Apart from that, there are external factors that impact the business like, demographic trends, retail trend and workforce trends in the industry. As number of international visitors, holyday parks and high investment in caravans leads scope of marketing opportunity.
- Opportunities for likely fit with Adventure Caravans goals and capabilities
Adventure Caravans has discussed with the marketing consultant in order to formulate the strategic plan for next three years the business. At the same time, company has great opportunity for expanding business. Through the delivery of quality and economical products it has build up the covered the middle section group of the customer.
Company can mobilize the good image and credibility in targeting the higher section of the society. Apart from this, company have chance to open the office and outlets in the market and it can also launch the separate repairing stations. Such practices will increase the sale, revenue and visibility in the market.
- Opportunity to determine its likely impact on current business and customer base
Company can enlarge the customer base by providing the after sales services like, repairing, maintenance, insurance and modifications. Apart from that, company can also wide the range of products according to the demand and purchasing power of the company that will also increase the customers to the business.
In order to sustain in the current market and competition company also need to start the supplying the flat packing caravans.
Section 4 Formulate Marketing Objectives
- Objectives in consultation with key internal stakeholders:
- To deliver the flat rap caravans exporting from overseas and assemble in Australia like other competitor companies
- To launch the office and outlets initially in two cities (Lynch, 2015).
- To start the retailing the major parts of caravans along with direct sale from factory.
- Objectives are consistent with forecast needs of the business and market
Company objectives are accordance with organisation and market need as supply of flat rap parts of caravans will enable the company to stand in the competitive marketing environment. At the same time, this practice is the trend of the industry that in future there is immense growth opportunity of this business.
- Objectives are compatible with the organisation’s projected capabilities, resources and financial position
The above set objectives are compatible in terms of capability, resources and financial position as company has significant amount of profit. The reason behind projecting the good financial position of the company is that it has sold the 200 caravans annually costed to $ 30,000- $70,000. At the same time, it majorly supplied the products direct from the factory that saves cost for the company.
- Objectives are compatible with the organisation’s direction and purpose, and meet legal and ethical requirements
The objective of business expansion is alignment with the purpose to become the leading company of the region with geographically aspects.
(e) Long term Strategic Goals
- To manufacture the diverse range of caravans according to the customer demand and location and cost
- To expand the business globally (Barcus, 2014)
- Company will formulate the risk management strategy including following component:
Think Work Safe: According to the Work Healthy and safety Act implies that it is responsibility of employer as well as employer to ensure the safe working environment at work place. At the same time, recording to unpleasant events and taking actions for safety.
Identify Hazard: Management need to list down all the potential hazards can take place at the workplace.
Hazard Control: Company can control the hazard by following actions:
Elimination of hazard – complete hazard removal
Isolation of hazard -separating the people from the hazard (Cummins et al., 2012)
Engineering – earth leakage device, mechanical lifters
Reporting Injuries- Reporting to all injuries at the workplace.
- Marketing Objectives
- To promote the company product and services through online platforms along with traditional methods including newspaper advertisement and editorial industry publications
- Alignment with dedication resellers for smooth and timely delivery of products.
Marketing Strategy for Adventure Caravans
While concerning about the caravans business, the company needs to adopt an appropriate marketing strategy that can be helpful for it in order to make the company effective as well as efficient at the time of performing its operations. In this way, marketing 4 P’s can be effective for the company as its marketing strategy. The 4 P’s of Adventure Caravans are defined below:
- Product
Adventure Caravans is one of the best companies that provide best products of quality family caravans with respect to meet the needs of its target market in Australia. These quality products can be helpful for the company to increases its target market by providing the best products.
- Price
The company also provide its product at affordable prices through adopting dynamic pricing strategy to its potential customers that are from various segments. In this manner, the company now needs to adopt an effective strategy so that the company can serve its customers at the cheapest prices.
- Place
In this concern, it is found that the company includes a physical location at which the company offers its products to its customers. After analyzing the present situation of the Melbourne market, the company should expand its business at another place that will be beneficial for it to develop a new customer base.
- Promotion
In respect to market its products, the company adopts a number of techniques that more effective when these techniques are implemented by skilled and talented employees. Through this, the company promotes its brand as well as its products within the potential market. In addition, a company can use social media tools as its promotional tool to promote its products in Melbourne, Australia.
Australian Manufacturing, 2016. Australia’s caravan and camping industry crates “trifecta of growth” for the county. Online [Available at] : http://www.australianmanufacturing.com.au/39838/australias-caravan-and-camping-industry-creates-trifecta-of-growth-for-the-country ( Accessed on 22th February, 2019).
Barcus, H., 2014. Sustainable development or integrated rural tourism? Considering the overlap in rural development strategies. Journal of Rural and Community Development, 8(3).
Cummins, J.D. and Santomero, A.M. eds., 2012. Changes in the life insurance industry: efficiency, technology and risk management (Vol. 11). Springer Science & Business Media.
Lynch, J., 2015. Configuring the Strategic Orientation of Manufacturing Firms for Economic Sustainability: A Study of the UK Touring Caravan Industry (Doctoral dissertation, Cardiff University).
Patterson, I., Pegg, S. and Mahadevan, R., 2015. The benefits of short stay caravan travel based on the lived experiences of grey caravanners in Australia. Tourism Analysis, 20(5), pp.539-549.
