Marketing Plan

Marketing Plan – Adventure Hire Company

Task 1-Devise Marketing Strategies

Summary of Organization

Adventure Hire is a company that has a core business of hiring a full range of vehicles for the tourists as per the statewide “Adventures”. In this way, it is determined that Adventure Hire was established in Western Australia.

In addition, Adventure Hire Company has been declared the potential of a “Survival Kit” and these kits are purchased by the vehicles hirers.  Moreover, the company is thinking to market into another market segment with its new products of survival kits.

On the basis of this, the company mainly wishes to servers its customers through survival kits as its products. Now, the company is trying to expand its business so that requires an effective marketing plan for the successful company.

Organizational Objectives

While discussing the company, it is determined that the company needs to develop its organizational objectives so that it can make a plan accordingly. In this way, the key objectives of Adventure Hire Company are:

  • To promote and market its new product in several areas of Western Australia
  • To develop effective and long-term customers relations mainly in remote areas
  • To attract more customers towards the company by offering a new product with various market segments

Risk and Return Highlighted

Risk Highlighted

  1. Product Development Risk

The company has the risk of product development because new products generally have a reasonably high failure rate at the time of launch. Product development risk also includes project risk and innovation risk.

  1. Price Risk

In addition, the company also has the risk related to its new product’s price as the target customers of the company is a tourist that does not want to spend more on these kinds of products rather than they wish to expand on their self enjoy so the company has high price risk.

Return Highlighted

If the company grabs the number of opportunities provided to it, then it will be capable to capture its target market with more effectiveness. In this way, it company successfully introduces its new product in Western Australia, the company can earn more profitability and it can also develop customer relations by offering quality products.

SWOT Analysis

Strengths

·       Excellent employees with effective skills and knowledge.

·       Quality product that exceeds the offerings of competitors

·       Large fleet of vehicles

·       Affordable product’s prices

 

Weaknesses

·       High maintenance and cost of repairing

·       Weak position in the Western Australian market

·       The product cannot be differentiated enough

·       Not so good brand image in

 

Opportunities

·       The trend for survival kits at road trips

·       Business opportunities under the emerging market

·       Addition to premium quality products

·       Acquire market share by branding

Threads

·       High Intense Competition

·       Increasing prices of raw materials

·       Lack of differentiating can lead to a price war

 

 

(Source: Bull et al, 2016)

GAP Analysis

Company will analyze the gap in its performance through applying the different marketing metrics. In regards to this company will review the customer feedback, clicks on the company websites and rate of ROI. According to the indentified gap company will adjust its marketing plan for achieving the set targets.

Marketing Mix (4P’s)

  • Place

The company can offer its product in the remote areas of Western Australia at which the demand of rental vehicle and the survival kit is relatively high from the customers.

  • Product

Adventure Hire will offer its new product with the specification of the actual product to its potential customer in order to deal with the competitive market.

  • Promotion

In respect to promoting its product as well as services, a company can select online platform such as social media tools including e-mail, online campaign etc.

  • Pricing

A company will serve its customers with reasonable prices so that they can afford survival kit along with the rental vehicle in the Western Australian market.

  • People

In respect to the survival kits, the company also needs to hire more skilled and experienced employees who have the knowledge of riding vehicles and they also know that how to use survival kit so that they can effectively explain to the potential customers.

  • Processes

Adventure Hire company also requires to adopt effective process as well as the system under the business that will create positive impact over it with an effective manner that is essential for making the customer services efficient under the company.

  • Physical Evidence

In addition, the company will work to develop customer’s loyalty in an effective manner   (Resnick et al., 2016)  In this way, the company will improve its customer services by hiring skilled employees who can serve the customers effectively.

Target Market Segmentation

Segmentation

The market segmentation for Adventure Hire Company is the population of Western Australia who is enthusiastic and curious about the road trips. In this manner, this segment’s population is capable to bear the expenses of the survival kit (Dolnicar and Leisch , 2017).

At the same time, the company can also segment the market on the basis of demographic as segmentation such as age, gender, income level etc and geographical segmentation such as city, area, region country etc.

Target Market

In concern of Adventure Hire Company, it is analyzed that the company’s target market will be the youth of Western Australia that is desperate for road trips through vehicles.

These customers will have need of survival kits for their safety. Along with the target market, the company can easily develop its new product and attract new customers towards it. At the same time, it company will target the remote areas of WA state and potential bike riders (Aghdaie and Alimardani, 2015).

Company will aim to provide the additional sources to outside visitors for road trip like “Survival Kit”. It creates the company visibility in the potential customers of WA and among the similar product manager.

Apart from that, company focus on rebuild the brand image among the existing and trip visitors by providing the additional services to them. Thus, company can develop the good customer relationship and brad image in WA and can cove the target market.

Recommendation

After discussing all the relevant facts above, it can be recommended to the company that it can adopt Porte’s generic competitive strategies that define four different competitive strategies.

In this way, differentiation strategy is more suitable for the company as under this strategy, the company offers a new product along with the unique features that are being not provided by other competitive company.

With the help of a differentiation strategy, the company can compete within the market effectively and target its potential customers efficiently. Due to this strategy, the company will be capable to develop strong brand loyalty among the customers.

While adopting this strategy, Adventure Hire will also need to ensure that its product will remain unique in order to stay ahead of potential competition under the target market for the company.

 Marketing Metrics

Company Adventure Hire will measure its performance through different business metrics. In regards to this, as company will adopt the new marketing and promotional activities through email marketing, social media, social advertisement etc

Therefore, company can measure the organizational performance through different marketing metric like, number of user clicks on company feedbacks, rate of return and conversation rates. At the same time, company can identify the business performance while reviewing the customer feedbacks and also assess the demand of services and products in the market.

Apparently, the most important factor of the good performance is rate of return. The higher percentage of ROI indicates the profit and increased market share.

Section 2- Plan Marketing Tactics

  • Tactics to implement each marketing strategy in terms of scheduling, costing, accountabilities and persons responsible

Scheduling:  Company Adventure Hire will schedule the promotion activities in accordance with formulated marketing plan.

In concern to this, company will move ahead with its promotional plan through brand management, public relations, email marketing and website development that is required for good customer relationship (Ehrlich and Fanelli, 2012.) Furthermore, company will promote the survival Kit along with vehicles.

Accountabilities:  .Marketing manager will be accountable to improve the customer relationship and educating them to additional services provided by the company while driving in remote areas.

Apart from it is his duty to review the company’s most concerning areas that are the possible damage to its vehicles like tear and wear in accident and maintenance etc.

Person Responsible: The responsibility for executing the marketing tactics lies with the respective executive managers of sales, marketing, distributions and promotional department.

Costing: Company Adventure Hire will occur the different kind of cost regarding launching the new products, marketing and promotional activities. In regards to this, company will prepare the budget in order to execute the marketing plan (Abdullah et al. 2014).

The marketing department will prepare the budget sanctioning the sufficient amount to each head.  Following is the budget plan.

Cost HeadAmount ($)
New Product Launch$60,000
Promotion Cost

Digital Advertising ($5,000)

Email-Marketing ($5,000)

Social Media (5,000)

 

 

 

$15,000

Selling & Distribution Costs$ 20,000
Total$95,000

 

  • Identify coordination and monitoring mechanisms for scheduled activities

It is essentially important to have sink between majorly, Production Marketing and Product Promotion managers in order to coordinate and monitor the scheduled activities.

Apparently, their backup needs to educate about scheduled activities (Handley and Benton Jr, 2013). Such activities will be monitoring through email exchange and written feedbacks and formal meetings on progress of company sale, marketing and market completion twice in a week.

Following task are come under monitoring mechanism:

  • Information related to best practices can be applied in both departments.
  • Staff Training as per the developed marketing plan and strategies.

At the same time, Production department will determine the adequate amount of production for the new product according to the demand of supply. As the new product is survival kit therefore, it is essential for to maintain the quality of the product.

Apparently, the main considerable point is that new product will also in various marking segment along with hiring vehicles. Hence, activities of different department will coordinate through below Mechanism:

Procedural coordination mechanism: Production manager, marketing manager and Product promotion manager will formally and freely share the required details. These details will include the demanded product quantity, packaging, supply and distribution details, pricing transportation for supply and promotional strategy.

(c) Tactics are achievable within the organization’s projected capabilities and budget

Company will use the services of digital advertising and email marketing tactics according to the projected capabilities and budget of the company. In regards to this, digital marketing is quite economical as company need to invest once for setting up this mechanism and for promoting the new product that is survival kit.

Company will promote the new products and enhance the awareness about the company in market through social media, company websites, native advertising, newsletters etc to enhance the customer base. Furthermore, company can further sustain this marketing tactics for business growth.

Apart from this the other marketing  strategy fin into the company capabilities and budget is email marketing,  In relation to this, company will maintain the contact details of the customer and trigger the email afterwards the registration for haring the vehicle (Morgan et al., 2012).

At the same time, this email will contain the entire rules and regulations in respect to vehicle hire and terms conditions and redemption money in case of vehicle loss and damage. Apart from that, it will educate the customers for its new product, range and the availability into various market segments. Additionally, it can explain the procedure to use the survival kit containing the different items.

  • Explain how the tactics meet legal and ethical requirements

The email marketing helps to meet the ethical requirement of the company. As to why it fulfills the honesty, transparency and fairness while taking place the transaction with customers. It describes the complete information regarding the “Survival Kit” and mention the while step to use it at the right point of time.

Hence, it adds the ethical values to the business and enhances the value of the product in the society. By accomplishing the ethical requirements also develop the customer satisfaction as email marketing provides the platform to the customers to ask queries and get resolved.

In concern to this, company marketing plan for launching the new product in accordance with the legal documents. At the same, company fulfills the entire legal obligations like, registration of new product and revealing the list of components and chemical are used in production and Intellectual property, agreement with supplier, HSE requirements risk management etc.

  • The tactics provide for ongoing review of performance against objectives and budgets and allow marketing targets to be adjusted if necessary

Company will design the marketing plan and tactics in such a way so that these practices could helpful in measuring the business performance according to budget and marketing targets.

At the same time, the marketing tactics adopted by the Adventure Hire are helpful to demine business performance through knowing the customer satisfaction level by their feedbacks and reviews.

Apart from that, business tactics play an important role to project the demand of product and services and indentifying the built customer base (Järvinen, 2016).

The most important provide the review of current market share captured by the company and also enable the company to know the changes in product and pattern of services demanded by the price, effectives and packaging etc. According to which company can also change the marketing targets if the sale of the product is not able to cover the business costs.

Section 3 Prepare and Present Marketing Plan

  • Marketing Plan
Items Q1Q2Q3Q4
Business Objectives

 

·       New product Launch in W.A.

 

·       Long term strong customer relationship

 

·       In increase the customer base

 

Marketing Strategy 

·       Digital Marketing

KPIs·       Increase Sale

·       Good Customer Feedback

·       Increased Market share

 

Marketing CampaignsPromotion tactics

·       Email marketing

·       Digital Advertising

 

Marketing MixLaunch of new product in all remote areas  of WA targeting the young visitors on affordable price
Follow up Plan ROI review by Product Manager, Marketing Manager and sales Manager to adjust the marketing plan as per business performance 

 

 

 

  • Ensure marketing plan contains a rationale for objectives and information that supports the choice of strategies and tactics:

Adventure Hire aims at following objectives that are in accordance with the selected marketing statistics:

  • To promote and market its new product in several areas of Western Australia
  • To develop effective and long-term customers relations mainly in remote areas
  • To attract more customers towards the company by offering a new product with various market segments

In relation to this, company has adopted the appropriate and economical marketing plan including the digital marketing strategy to launch the Survival Kit and enhance the customer base.

  • Present marketing plan for approval in the required format and timeframe:

Company Adventure Hire will present the following marketing plan before the stakeholders mentioning time for time frame for the accomplishment

Marketing StrategyBudgetResponsible PersonTime Frame
Print Media$10,000Sales Manger7 Days
Email Marketing$5,000C R M  Personal7 Days
Social Media$5,000C R M  Personal7 Days
Company Website$7,000C R M  Personal7 Days
Digital Advertisement$12,0000Product Promotion Manger30 Days

(d) Adjusted Marketing Plan for Q2 according to received customer feedback

Items Q1Q2Q3Q4
 

 

 

Business Objectives

 

 

·       New product Launch in W.A.

 

·       Long term strong customer relationship

 

·       To increase the customer base

 

 

·       New product Launch in W.A.

 

·       Long term strong customer relationship

 

·       To increase the customer base

 

 

 

 

Marketing Strategy

 

·       Digital Marketing

 

·       Digital Marketing

 

·        Diversity marketing

 

In order to capture the longer market share

 

 

 

KPIs

 

·       Increase Sale

·       Good Customer Feedback

·       Increased Market share.

 

·       Increase Sale

·       Good Customer Satisfaction Level

·       Increased Market share.

 

Marketing Campaigns

 

Promotion tactics

·       Email marketing

·       Digital Advertising

 

Promotion tactics

·       Social Media

·       Email Marketing

 

Marketing Mix

 

Launch of new product in all remote areas of WA targeting the young visitors on affordable price.

 

Price of products needs to be determined based on demographic factors and according current market of similar products.

 

 

 

Follow Up Plan

 

ROI review by Product Manager, Marketing Manager and sales Manager to adjust the marketing plan as per business performance.

 

Follow up plan will be based on the indentifying the customer satisfaction level, Product effectiveness and revenue and ROI.

 

 

References

Abdullah, M.F., Putit, L. and Teo, C.B.C., 2014. Impact of relationship marketing tactics (RMT’s) & relationship quality on customer loyalty: A study within the Malaysian mobile telecommunication industry. Procedia-Social and Behavioral Sciences130, pp.371-378.

Aghdaie, M.H. and Alimardani, M., 2015. Target market selection based on market segment evaluation: a multiple attribute decision making approach. International Journal of Operational Research24(3), pp.262-278.

Bull, J.W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb, C., Lambini, C.K., Rawlins, M., Baral, H., Zähringer, J. and Carter-Silk, E., 2016. Strengths, Weaknesses, Opportunities and Threats: A SWOT analysis of the ecosystem services framework. Ecosystem services17, pp.99-111.

Dolnicar, S. and Leisch, F., 2017. Using segment level stability to select target segments in data-driven market segmentation studies. Marketing Letters28(3), pp.423-436.

Ehrlich, E. and Fanelli, D., 2012. The financial services marketing handbook: Tactics and techniques that produce results (Vol. 150). John Wiley & Sons.

Handley, S.M. and Benton Jr, W.C., 2013. The influence of task-and location-specific complexity on the control and coordination costs in global outsourcing relationships. Journal of Operations Management31(3), pp.109-128.

Järvinen, J., 2016. The use of digital analytics for measuring and optimizing digital marketing performance. Jyväskylä studies in business and economics, (170).

Morgan, N.A., Katsikeas, C.S. and Vorhies, D.W., 2012. Export marketing strategy implementation, export marketing capabilities, and export venture performance. Journal of the Academy of Marketing Science40(2), pp.271-289.

Resnick, S.M., Cheng, R., Simpson, M. and Lourenço, F., 2016. Marketing in SMEs: a “4Ps” self-branding model. International Journal of Entrepreneurial Behavior & Research22(1), pp.155-174.

 

 

 

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