Marketing Principles of Company

Marketing Principles
A Marketing Plan for American
Communication Network (ACN) in
Australia

About the Company
ACN is a multilevel
marketing company dealing
in services like
telecommunication, energy
and merchant services.
ACN is present in 25
countries including
Australia (ACN, 2018)
 It has patterned with
Vodafone to bring its
services to its customers
(Acnpacific, 2018)
Multilevel marketing or
pyramid selling is a concept
where a firm pays its sales
force to enrol more sales staff
or members to sell goods its
and services (Hill, 2012)

Assessing Market and Situation
• Political Environment- Political system in Australia
supports expansion of telecommunication. However, the
organisations needs to take a license for operations.
• Economic Environment- Telecommunication market in
Australia is rapidly growing. It has grown to $42 Billion in
the last financial year (Government of Australia, 2018).
• Socio-Cultural- Social trends favour the growth of
telecommunication services. Use of digital devices
enabled by high speed internet has become a social fad.
Therefore, there has been an increase in growth
opportunity for ACN (Lampe & Ploeckl, 2014).

Assessing Market and Situation
• Legal- ACN has to abide by licencing policies along with work
and safely Act and competition policy of the country. The firm
was accused by Australian Competition and Consumer
Commission of being an illegal pyramid. However the firm was
cleared by the courts (ACCC, 2018)
• Environmental- Telecom services pose no visible threat to
environment. However, researches show that radiation may be
dangerous to human health. Therefore, the firm needs to take
stock of health issues (Hill, 2012)
• Competitive- There is heavy competition in the telecom sector
in Australia. Various large companies like Vodafone, Telstra and
SingTel etc. are there. However, ACN has partnered with
Vodafone to being telecom services to its customers (Hill, 2012)

SWOT Analysis
Strengths
• A motivated workforce
through multilevel
marketing
• Multinational Company with
brand awareness
• Partnership with Vodafone
reduces cost (ACN, 2018)
Weaknesses
• Research in new technology
increases cost
• Comparatively less reach of
pyramid schemes (Hill, 2012)

SWOT Analysis
Opportunities
• Huge market growth
potential
• Rise in demand for cellular
technology like 4G
Threats
• Huge competition in the
market
• Distrust spread due to legal
case by Australian
Competition and Consumer
Commission
• (Hill, 2012) (ACN, 2018)

Market Segmentation
Segmentation is the process of
dividing the target market into
groups on the basis of perceived
similarities.
This helps in fulfilling the needs
of each group in the target
market
Target market consists of
potential customers of the
company
ACN can divide its target market
into geographic, behavioural,
psychographic and demographic
segmentation (Baines, 2013)

Market Segmentation
• Geographic- ACN can divide the market based on urban
and semi urban usage. For example, high powered data
packs for urban areas and more emphasis on voice calls in
semi urban and rural areas.
• Behavioural Segmentation- ACN can also segment based
on user behaviour. For example, more offers and discount
for frequent buyers.
• Psychographic- Lifestyle can also be a segmentation
criteria for ACN. The firm can have more extensive data
packs with large data and speed for businessmen and for
students it can have packs like night free data etc.
• Demographic segmentation- ACN can also segment based
on age and family size for example, family sharing data
packs or special discounts for students.

Goals and Objectives
• Setting of goals and objectives is important to marketing
planning. Based on the market and situation analysis following
goals can be set for ACN
To become a leader in telecom technology
through active participation in research
and development with in five years
To enhance customer base by 10% within next five
years to improve sales volume and net profit. To
be achieved through active marketing practices
To become one among top five telecom providers with
in next 5 year. To enhance market share, improvement
in technology and customer base to be sought

Strategies and Tactics
 Product-Telecom services are
homogenous. Hence, company
should focus on differentiation
factors like better quality and
higher technology.
 Place-in addition to pyramid
schemes the firm should also sell
through stores and web portal
 Price- The firm should use
discounts and special offers for
frequent buyers and keep the
price low
 Promotion- As the market is
competitive the firm should use
advertising , sales promotion, bill
boards etc. for reminding the
customer
 Marketing mix strategies are
strategies pertaining to
product, place, price and
promotion used to influence
customer purchase decision
(Baines, 2013)

Conclusion
 Telecommunication industry is a growing industry in
Australia. However, the industry is technology driven and
competitive.
 Therefore ,to be successful in this market ACN needs to set
its goals after minute study of market environment.
 The firm can segment the market based on usage, needs ,
family type and region. This will help in reaching larger
customer base
 The firm should keep its prices low and use advertising and
sales promotion as a tactic to increase sales volume
 Through use of extensive research and enhanced marketing
strategy the firm can become a leader in telecom technology

References• ACCC. (2018). Court finds Australian Communications Network scheme is a
pyramid selling scheme. Retrieved April 30, 2018, from
https://www.accc.gov.au/media-release/court-finds-australian-
communications-network-scheme-is-a-pyramid-selling-scheme
• ACN. (2018). ACN-Company. Retrieved April 30, 2018, from http://acninc.com/
• Acnpacific. (2018, May 15). Home. Retrieved from ACN Pecefic:
https://www.acnpacific.com
• Baines, P. (2013). Essentials of Marketing. Oxford: Oxford University Press .
• Lampe, M., & Ploeckl, F. (2014). Spanning the Globe: The Rise of Global
Communications Systems and the First Globalisation. Australian Economic
History Review, 54(3), 242-261.
• Government of Australia. (2018). Licencing and Regulation. Retrieved April 30,
2018, from http://www.acma.gov.au/Industry/Telco/Carriers-and-service-
providers/Licensing/telecommunications-licensing-and-regulation-carrier-
licensing
• Hill, C. (2012). Strategic Management: An Integrated Approach. New York:
Cengage Learning.