Drag & Drop Business Expansion Analysis

This assignment analyzes Drag & Drop's proposed business expansion. It examines market potential in Australia, evaluates their promotional budget and strategies, and emphasizes the importance of technology and digital marketing for brand building and competitive advantage. The report suggests that while Drag & Drop has promising prospects, a backup plan is crucial given its relative youth and the potential challenges with their current proposition.

Running head: MARKETING PLAN
Marketing Plan
Name of the student
Name of the university
Author note

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Executive Summary
This report has discussed the marketing promotion plan for a home delivery service at a local
town. The report is based on marketing theories and digital communication concepts for
increase the chances of sustainability for a hypothetical organization. “Drag & Drop” is the
hypothetical organization taken for the project. It has been concluded from the report that Drag
& Drop is a promising organization capable of expanding their business. However, the new
proposition developed by the organization may not work so they will have to develop back up
strategies. Moreover, as the organization is relatively new, they definitely need a backup plan in
case of failure. Therefore, use of technology and digital marketing should provide them with
better market penetration and operational efficiency. This had enabled them to position their
brand in effective way and improve the awareness about their brand to the consumers. The
conclusion drawn from the report is that digital communication and adding value to the
organization is essential for gaining competitive advantage and marinating long-term
sustainability.

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Table of Contents
Introduction......................................................................................................................................3
Background......................................................................................................................................3
Current marketing Strategy..........................................................................................................4
Research Method.............................................................................................................................5
Current value analysis......................................................................................................................7
Porter’s value chain analysis.......................................................................................................8
Competitor analysis...................................................................................................................12
Customer perceived value..........................................................................................................16
Promotional Mix............................................................................................................................16
Financials...................................................................................................................................18
Conclusion.....................................................................................................................................19
References......................................................................................................................................20

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Introduction
This report will discuss the marketing promotion plan for a home delivery service at a
local town. The report is based on marketing theories and digital communication concepts for
increase the chances of sustainability for a hypothetical organization. “Drag & Drop” is the
hypothetical organization taken for the project. The report will describe the background of the
organization, which includes vision and mission. It will also consist of situational analysis, which
comprises of macro environment analysis, competitor analysis, microenvironment analysis and
internal analysis of the organization. The report will develop the marketing strategy for the
organization that will include concepts such as segmentation, targeting, positioning, BCG matrix
and marketing mix. The report will conclude by providing the marketing budget of the
organization including generation of forecasted sales figures for the organization.
Background
Drag & Drop is an organization, which can be considered as a part of supply chain
management, and they act as intermediaries between suppliers and consumers. The organization
uses simple steps to provide fast service to their consumers. The organization receives orders for
delivery of products, prints the orders, picks, and packs and ships the products for delivery. They
are an integral part of logistic for large-scale companies and work in layers between the
consumer and the seller. Moreover, the organization deliver’s goods locally to the consumers and
have tied up with few large-scale organizations.
Mission Statement

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“We have aimed to fulfill the goals and objectives of our share holders through profit
maximization.”
Vision Statement
 To provide excellent service to our consumers at low cost
 To take safety as a priority while delivering the products
 To offer best service to our clients and consumers
 To provide customers with excellent satisfaction level by using Real Time Transmission
protocol
The main competitors for the organization are local companies and courier services
offering similar services to the consumers in the market. There are other companies
providing heavy discounts to their consumers. Thus, the Drag & Drop is facing tough
competition from the market due to these competitors that have been able to acquire
significant share in the local market.
Current marketing Strategy
Segmentation Targeting Positioning
 Customers of all age
 Social classes having
high disposable
income
 Bulk order purchases
 Frequency of
 Offices
 Institutions
 Residential buildings
 Commercial buildings
 Positioning by price
and service quality

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purchases
Table 1: Current marketing strategy
(Source: As created by author)
The segmentation, targeting and positioning shows that the Drag & Drop has chosen a
particular set of consumers as their client. They are shipping products for large organization by
being a part of their logistics unit. On the other hand, they are delivering products to the local
market, which consist of consumers with high disposable income and order in bulk. As the
competitiveness in the market has increased significantly, Drag & Drop will have to develop a
new marketing strategy for maintaining their long-term sustainability and improving their
competitive advantage (Schlegelmilch, 2016). Moreover, as the organization is a startup,
availability of funds in the market is limited so innovation has to be incorporated within the
business model for improving operational efficiency. Drag and Drop has been using holistic
marketing approach, which considers all business processes as a single entity for enhancing the
overall consumer experience. The organizational processes will have to be integrated and
building an effective brand image is essential (Osterwalder et al., 2014). Thus, the organization
will have to make changes to their marketing strategy to develop synergy among all the
organizational processes. The organization has focused on conventional marketing strategies
more so digital marketing strategies will have to be developed for increasing market penetrating
and reducing marketing cost.

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Research Method
The different methods used for analyzing the information about the consumers and target
market are PESTLE, Porter’s Five forces, SWOT, Porter’s value chain analysis and competitor
analysis. PESTLE analysis is used to analyze the macro environment of the organization in
which they operate. Macro environment factors focuses on the external factors upon which the
consumer has no control. The political, economic, social, technological, ecological and legal
factors are same for all the companies operating under the same environment. These factors are
crucial factors for any organization, as they will have to adapt to changes in the corresponding
environment they are working in (Hollensen, 2015). Porter’s Five forces is used to analyze the
microenvironment of any organization and includes factors such as bargaining power of the
buyer, bargaining power of the supplier, threat of substitution, entry barriers and competitive
rivalry. The factors are within the control of the organization and they can change their strategy
to use these factors for their own advantage. Internal analysis will consist of SWOT, which
identify the strengths, weaknesses, opportunities and threats of the organization (Armstrong et
al., 2015). The macro and microenvironment will facilitate in identifying the above-mentioned
factors for Drag & Drop. Competitor analysis will consist of above-mentioned models, which
will consist of competitor identification, identification of strengths and weaknesses of
competitors. Porter’s value chain analysis will identify the current value of the products and
processes. It simply means that the model will identify the processes that are adding value to the
overall organization.
New value proposition
Drag & Drop‘s main value proposition is providing customer with better experience. The
new value proposition will try to make the brand more appealing by providing the consumers

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with their changing needs and wants. The organization will aim to provide fast service to the
consumers and deliver the products according to the client needs. Yield management is an
essential strategy that is important in this respect. The management of inventory is essential in
this context, which has to be done by using business intelligence and data mining (Payne &
Frow, 2014). Data analysis is essential for identifying the preferences of consumers and the most
popular products in the market. Thus, maintaining inventory depending upon the products in
demand will reduce the shelf size of the organization. Moreover, the organization will be
incorporating technology in to their business model and incorporate digital marketing into their
promotional strategy. The use of digital media will balance out the cost incurred due to the use of
research and development. The organization will launch an application, which will provide
explicit details about their products and their time of delivery.
Current value analysis
The current value analysis will consist of Porter’s value chain model, which determines
the different activities that are adding value to the organization. This will consist of primary
activities and support activities. The primary activities will consist of inbound logistics,
outbound logistics, operations, service, marketing and sales. The support activities will include
procurement, human resource management, infrastructure and technology. These activities are
essential for adding value to the products offered by the organization. The second part will
consist of competitor analysis, which will compare the value proposition of Drag & Drop with
that of its competitors in the market.

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Porter’s value chain analysis
Figure 1: Value Chain Analysis
(Source: Smartsheet, 2018)
The organization is trying to create more value from the inputs within the organization by
developing output that is of higher value than the cost of the products .
Primary activities
The primary activities of the organization are divided into five elements and they are as follows:
 Inbound logistics Outbound logistics Operations Marketing and sales Service

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Inbound logistics
The organization is planning to improve their relationship with the suppliers by providing
them with offers at prices lower than other rival companies (Gereffi & Fernandez-Stark, 2016).
Drag & Drop will reduce their operational cost and other costs to improve their profit margin.
This will enable them to offer better prices to the suppliers. Moreover, the organization will
install SAP based ERM (enterprise resource management systems) so that all the internal
processes can be monitored and improved continuously.
Outbound logistics
The organization will deliver the products at minimum prices and provide them with
excellent support services by letting them track their products at all times (Mudambi & Puck,
2016). The new application that is being launched by the organization will enable them to
provide the consumers with better experience.
Operations
The packing of the products will be done with eco friendly materials, which is easy to
dispose. The products will be packed with utmost care to protect it any sort of mishaps or
accidents.
Marketing and Sales
Drag & Drop will be using digital marketing as their marketing strategy. They have been
using holistic marketing approach, which aim to enhance the consumer experience as much as
possible (Gereffi & Fernandez-Stark, 2016). This will consist of promoting their services at
social networking sites such as Facebook and Instagram, micro blogging sites such as Twitter

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and video sharing websites such as YouTube. The firm will also use SEO (search engine
optimization) so that whenever any consumer is looking any relevant information in this regard
the company websites pops in the first page of Google search.
Service
The firm is aiming to provide customized service to the consumers by letting them
choose the data of delivery, letting them track the offer and enabling them to be in contact with
the delivery captain (the person in charge of the delivery). Moreover, Drag & Drop will not be
charging any extra for fast delivery and the consumers does not have to pay extra for the earlier
deliveries. The products and their destinations will be crosschecked several times to prevent
errors.
Support activities
As the name suggests the support activities will support the primary activities and each of
them may a crucial role in fulfilling the primary activities.
 Procurement Technological development Infrastructure Human resource management
Procurement
The organization has expanded their warehouses by renting warehouses at every possible
location. The number of vehicles and the capacity of luggage they can carry has also increased

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which will enable them to deliver more products at even faster rate. This will support the
outbound logistics of the organization (Mudambi & Puck, 2016).
Infrastructure
The infrastructure of the organization will be improved even further by acquiring capital
for foreign investors and local investor by showing them the quality value of the organization.
The organization is expected to increase their profit margin by reducing their cost structure and
increasing their delivery volumes.
Technological development
Technological development is essential for improving the processes within the
organizational business model. The technological factor will help in improving the business
model of the firm by improving the operational efficiency of the processes (Gereffi &
Fernandez-Stark, 2016). The organization will spent a large sum of capital on technological
development, which includes the incorporation of ERP based systems into the organization to
ease the workload and smoother processing and dispatch of orders.
Human resource management
Workforce of any organization is crucial as they assist in maintaining the long-term
sustainability and achieving competitive advantage in the operating market. Therefore, the
organization conducts regular performance measurement sessions so that the faults o he
employees can be rectified. Moreover, they are provided with training sessions at regular
intervals, which will enable to develop their personal and professional skills.

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Competitor analysis
Elements Drag & Drop Rival
organizations
Strength Weakness Threat Opportunity
Political, legal and
Economic
The political, legal and
economic environment is
good for the organization as
the trade barriers are low
(En.portal.santandertrade.com
, 2018). The political
environment is stable. The
economy is growing and even
though there are strict,
environmental laws the
operating conditions are
favorable.
The operating
environment is
similar for the
other rival
companies in the
market

Technology and
Social
The disposable incomes of
the people living in Australia
are high and this provides
them with the opportunity of
working with classes that are
willing to pay the price for
quality service
(En.portal.santandertrade.com
, 2018). Technological
development is also rapid
The operating
environment is
similar for the
rival
organizations. 

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which has increased the use
of online media much more
than before.
Environmental The environmental laws in
the country are strict and the
organization will have to
work within the
environmental laws set by the
government
This is same for
the rival
organizations.
 
Bargaining power of
the buyers
The bargaining power of the
buyers in the market are
moderate as there are large
number of companies
providing similar services.
However, the organization
will be able to gain
competitive advantage due to
their technological advantage
and operational efficiency
they will be able to retain
existing consumer and
acquire new consumers.
The rival
companies are
using similar
strategies but
some of the
companies are
large scale having
better
infrastructure and
consumer base
with more
recognized brand.
Thus, the buyer
powers for the
local companies
are moderate but
 

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for the large scale,
companies are
low.
Bargaining power of
the suppliers
The bargaining power of the
suppliers are low for the firm
as there are large number of
suppliers available in the
market
This is similar for
the other rival
companies in the
market. 
Threat of
substitution
The threat of substitution is
high as there are large
numbers of companies
providing similar facilities
such as courier services. This
will affect the local
companies more than the
large scale organizations in
the market
The other local
companies will be
facing similar
affects. However,
the larger
companies will
not be effected
due to the brand
they have been
able to generate.

Competitive rivalry Most of the companies in the
market are using similar
strategy. However, the new
value proposition of the
organization will change the
scenario by providing them
with competitive advantage in

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the local market. 
Table 1: Competitor Analysis
(Source: Chen & Miller, 2015)

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Customer perceived value
At this present situation, the firm has been able to generate good reputation in the market
and consumers have a good opinion about the firm. However, there is no extra feature, which
could provide the organization with added value. They have similar operational strategy as the
other local companies and the large-scale companies have a large competitive advantage. The
service rating of the organization is good but they will have to improve their service quality if
they want to acquire a large share in the local market. Moreover, there are large number of
consumers still unaware of the organizations services which can only be improved by improving
their market penetration.
Promotional Mix
The organization has adapted to holistic marketing orientation so use of digital marketing
is one of the major factor of gaining competitive advantage and maintaining their long-term
sustainability (Oladepo & Abimbola, 2015). The promotional mix will consist of both digital and
traditional marketing media, as there are certain target consumers that are still not adapted to the
technological advancement.
Digital marketing strategy
The digital media marketing strategy will consist of social media marketing and online
marketing. Social media marketing will consist of social media websites such as Facebook,
Twitter and YouTube. The online marketing tools will consist of email marketing, online display
advertisements and promotional campaigns on the online medium. Social media marketing will
consist of interacting with consumers at social networking platforms to identify their changing
needs and wants (Ryan, 2016). They will also promote their services they offer on this websites

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to make consumers aware of the different types of services they offer to the consumers. The firm
will be able to directly communicate with the customers to identify the type of customized
service they prefer. This is a great approach of improving their holistic marketing approach as
the consumer behaviors are best identified on the social media websites. Facebook and Twitter
are the most popular website consisting of large number of users and this will provide great
exposure to the organization. They will be able to compete with the large-scale organizations in
the market by identifying the issues the consumers are facing and mitigating the m with effective
strategies. YouTube is a social sharing website, which has large number of users, and providing
advertisements on this site will guarantee increase in consumer base.
The other forms of online media marketing include use of email marketing and online
display advertisements. The penetration of this marketing strategy is more than the traditional
form of media and it is cost effective. The organization will have to focus fully on their digital
marketing aspect as the use of online media is more for the majority of the populations.
Traditional marketing strategy
The traditional marketing media will consist of print media, visual media and billboards.
Print media consist of newspapers and magazines where specific users will be targeted that are
daily readers. As one of the target consumers, in the market are offices print media is an
essential strategy for the organization. Similarly, business magazines are for those companies
that are looking for logistic companies for their effective supply chain management. Television is
still a popular media for users that prefer it to online platforms (Baker, 2014). Billboards are
placed at prime locations such as business centers and residential complexes so that they can
grab the attention of majority of their target consumers. However, the cost of using traditional

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media is much more than digital marketing strategy. However, if the digital communication
strategy is a success then the organization can slowly reduce their expenditure on tradition
marketing media.
Financials
Promotion Tools Amount
(in $)
Digital Media Marketing Tools
Facebook $5,000
Twitter $4,000
Youtube $7,500
Total Social Media Marketing expenses $16,500
Other Online Marketing Media
E-mail Marketing $25,000
Online Display advertisements $11,000
Other Online promotional Campaigns $28,000
Total Budget for Online Media $64,000
Traditional Marketing Media
Newspapers $15,000