Marketing Management and Digital Communication

This report discusses the segmentation, targeting and positioning approach for Desklib's marketing strategies. It also outlines the marketing objectives, budget allocation and promotional mix for the brand. The report suggests that effective promotional strategies along with pre-designed marketing mix may significantly contribute towards the attainment of corporate goals and objectives in a cost-effective manner.

ASSIGNMENT 2: MARKETING MANAGEMENT AND DIGITAL
COMMUNICATION
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Table of Contents
1.0 Introduction:..............................................................................................................................3
2.0 Discussion of the segmentation, targeting and positioning approach........................................4
a) Problem statement:...................................................................................................................4
b) Market segmentation:..............................................................................................................5
c) Targeting:.................................................................................................................................9
Target areas:.............................................................................................................................9
Target customer group:............................................................................................................9
d) Positioning:..............................................................................................................................9
3.0 Discussion of objectives:.........................................................................................................11
3.1 Marketing objectives:...........................................................................................................11
3.2 Financial objectives:............................................................................................................11
4.0 Detailed marketing mix strategy and budget allocation:.........................................................12
4. 1 Marketing Mix: 4Ps:...........................................................................................................12
Product:..................................................................................................................................12
Price:.......................................................................................................................................12
Place:......................................................................................................................................12
Promotion:..............................................................................................................................13
4.2 Budget allocation for promotional mix:...............................................................................15
5.0 Conclusion:..............................................................................................................................16
References:....................................................................................................................................17
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1.0 Introduction:
Marketing management may be construed to be one of the success-critical aspects of the business
studies as the same may include the consideration of several factors that are both internal and
external to the business (Natural Evolution, 2018). A successfully designed marketing mix along
with the promotional strategies may pave a long way towards the success of the business in the
industry in the long-run. The present report focuses on the mark marketing strategies through
segmenting, targeting and positioning (STP) of the product and relate the same with the pre-
determined marketing objectives set for the given purpose. The report finally provides a
summary budget for the execution of the marketing strategies and wraps up the discussion by
way of concluding note.
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2.0 Discussion of the segmentation, targeting and positioning approach
a) Problem statement:
The situational analysis conducted in the first part indicates that value proposition and product
distinguishable factors are essential to achieving market potential in Australia. Bezawada &
Pauwels (2013) mentioned that unlike other countries, the Australian customers are more aware
of the product specification and willing to spend much for the better health care. Thus, the
products claiming to be organic, but unable to show authentication might be an issue while
targeting the potential customers.
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b) Market segmentation:
Type of
Segmentation
Segmentation
Criteria
Natural Evolution Target Customer Segment
Analysis Biodynamic
Bakery
products
Skin care products Baby food (bakery
and egg)
Geographic Area and
Population
South Australia,
Victoria and
Western region
is booming in
terms of
population and
tourism (Denver
& Christensen,
2014). Thus,
food-savvy
customers can
be attracted
towards the
organic
products.
The average
temperature is 22-
300C, which shows a
requirement of skin
toning and
moisturizing in,
Victoria, Southern
and Western territory
The new born babies
are increasing by 1.8%
yearly (Butov, 2015).
Hence, apart from
Queensland, other
regions are to be taken
into consideration for
producing organic
baby products.
Demographic Age 25-65 years 16-70 years 3-12 years
Gender Male and Mainly women, Boy and girl both
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female both some ratio of men
also
Social status Mainly family
and young
generation
Women, students,
old people and young
adults
Baby and children
group
Income More than 4000
AUD per month
Discounted offerings
for students whose
income ranges
between 1000-2000
AUD per month
Different range of
skin care products for
the working
professional whose
income ranges
between 3000-5000
AUD per month.
Specific product for
the old age group and
pension holders with
added discount and
coupons.
Driven by parents
Occupation Working
professional,
Retired personnel,
Homemaker,
School students
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Homemaker,
Student,
Business person
Students, Working
women group
Psychographic Values People are more
concerned about
the organic
certification to
identify the
authenticity
Concern about the
quality of the skin
care products and the
allergic reactions
Higher concerned
about the healthiness
of the product.
Attitudes Prioritizes on
quality product
with validation
and willing to
spend money
for getting
quality foods
Student group only
focuses on pocket
money and tries to
switch one brand
from another. All
other segments prefer
to spend money for
skin care products
No compromise with
the quality of food.
Behavioral Benefit All user
segment targets
vitamin and
protein benefits
from the
organic
products
Apart from student
group, all user
segments focuses on
getting smooth and
tighten skin from the
organic product
Ability to provide
effective nutrition and
protein value.
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elements.
Students are focused
on cost effectiveness.
Usage Everyday Everyday Everyday
Occasion Breakfast,
dinner and
special occasion
such as
ceremonies,
parties, etc.
In house usage, after
bath, and before
sleeping, etc.
All day usage, no
specific occasion.
Table 1: Market Segmentation
(Source: Created by author)
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c) Targeting:
Target areas:
Victoria, South Australia and Western Region would be the primary target area, as the
population and foot fall is increasing gradually. Song (2018) also stated that the national income
for these states has increased by average value of 15% and consumers have become more
concern about the health.
Target customer group:
Working professional and families could be the primary target group for food items and beauty
care products. Australian consumers are more interested checking the product certification before
purchasing and shows lesser trust in cheap products (Urde & Koch, 2014). Thus, working
professionals, corporate executives and families can be the primary target. However, for
grabbing the beauty product market, students can be attracted towards the brand by offering
discount coupons and a varied range of items. Finally, calcium and vitamin enriched products
can be offered to the old people with promotional coupons to position in the selected target
segments.
d) Positioning:
The overall organic market is estimated to reach AU$ 2 Billion by the FY 2018 (Australian
Organic, 2018). Song (2018) stated that the main competitor is Bubs Australia Limited, who is
primarily focused on Baby Food segment. On the other hand, the consumer confidence in
organics is increasing sharply. As mentioned in figure 1, the consumers’ priority is:
 83% chemical free product
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 75% additive free product
 58% antibiotic free product and
 57% GMO free product (Australian Organic, 2018)
In addition, the dominant players have positioning in supermarkets, while the alternative retail
channels are also booming (Zia & Kumar, 2016).
Hence, the chosen brand can position on alternative retail channels followed by the
supermarket channels. The product diversity awareness satisfying the perceived benefits
through alternate marketing communication channel would also help in positioning the brand
across selected target areas.
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3.0 Discussion of objectives:
3.1 Marketing objectives:
 To promote PR communication by 40% to aware consumer regarding the labeled organic
product offered by Natural Evolution
 To introduce online retail channels to grab more than 50% of the consumers within FY
2022.
 To capture at least 65% organic product market share in Victoria and Queensland region
by the end of FY 2022.
3.2 Financial objectives:
 To experience higher cash flow compared to its competitors and achieving more than
55% growth earnings within FY 2020
 To increase sales by 45% within FY 2020 in the Australian market
 To improve market value added for maintaining stakeholder’s commitment and
welcoming greater investment for the brand.
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4.0 Detailed marketing mix strategy and budget allocation:
4. 1 Marketing Mix: 4Ps:
Product:
The majority of the competitors offer dairy and baby products to the Australian consumers.
However, the beauty care products are mostly exported to Asian and American regions (Salai et
al 2014). Thus, bakery product lines, beauty care, egg and baby food can increase the brand
attractiveness in an Australian and international market. In addition, Deeter-Schmelz (2007)
stated that certified organic products could improve the consumer awareness and loyalty index.
Price:
Competitive pricing would be the primary agendas of the brand since the other marketers are
offering at the lesser price, which enhances the question mark on the quality offered by the
brands. The consumers are ready to spend on quality products. Thus, certified organic products
can be offered with the premium pricing to attain optimum trustworthiness (Krstic & Becic,
2011). However, student groups and the senior citizen can be offered discounted pricing to attain
the higher market share.
Place:
Alternative retail channels and supermarkets of Victoria, Southern Region and western areas
would be the primary target of the brand. The government survey indicated that Victoria is the
most consumed area for the organic products compared to Queensland (refer to figure 1).
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Figure 1: Consumption of organic food by regions
(Source: Australian Organic, 2018)
Kastberg (2015) also stated that the growth revenue can be doubled by employing these
channels.
Promotion:
The promotional mix would be innovative so that all targeted customers can be attracted towards
the brand. Janssen & Hamm (2012) mentioned that an organic certificate labeling can be a part
of promotions to increase the consumer trustworthiness and loyalty towards the brand. Moreover,
as the product is related to the healthcare segment and need for the regular consumption, a
profound promotional mix can help the brand meeting the business objectives. The proposed
promotional mix considering the degree of relevance is as follows:
Objective 1: Application of digital marketing:
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 To improve the brand awareness as a producer and retailer by 45%, through the ‘Digital
Advertising media’, with respect to the proportion of certified business operations (refer
to figure 2)
Figure 2: Growing proportion of organic food retailer
(Source: Australian Organic, 2018)
Objective 2: Sales promotion:
 To employ ‘sales promotion’ through traditional and digital marketing in order to
enhance the overall customer loyalty by 80%
Objective 3: Personal selling:
 To resolve customer queries about the product features by employing online and offline
personal selling mechanism. It would help to enhance customer retention by at least 75%.
Objective 4: PR communication:
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 To employ events as a brand building exercise through various areas such as corporate
house, residential complex, leaflet sells near school and universities.
 It would help the brand improving the customer base by at least 40%.
4.2 Budget allocation for promotional mix:
Budgeting plays an important role in finalizing the marketing and promotional strategies through
4Ps of the marketing (Abdullah Saif, 2015). While preparing the budget the emphasis has been
put on every element equally. However, it has been observed that the “product” and “promotion”
have been two most crucial factors as compared to rest two (i.e. “Price” and “Place”) and hence
the management may need to evaluate the budget on a regular interval in order to revise and
match the same with the changing market conditions.
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5.0 Conclusion:
Based on the discussion and analysis performed in the preceding sections of the report, it may be
concluded that the effective promotional strategies along with the pre-designed marketing mix
may significantly contribute towards the attainment of corporate goals and objectives in most
cost effective manner and thereby achieve the sustainability in the industry in the long-run.
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References:
Abdullah Saif, N. (2015). How does Marketing Strategy Influence Firm Performance?
Implementation of Marketing Strategy for Firm Success. International Journal Of
Innovation And Economic Development, 1(3), 7-15. doi: 10.18775/ijied.1849-7551-
7020.2015.13.2001
Australian Organic, A. (2018). Australian organic market report. Retrieved from
https://d3n8a8pro7vhmx.cloudfront.net/ofa/pages/74/attachments/original/1492724931/
AOMR-2017-REPORT.pdf?1492724931
Bezawada, R., & Pauwels, K. (2013). What Is Special About Marketing Organic Products? How
Organic Assortment, Price, and Promotions Drive Retailer Performance. Journal Of
Marketing, 77(1), 31-51. doi: 10.1509/jm.10.0229
Butov, A. (2015). Organic Potato Product for Baby Foods and Dietetic Food. Indian Journal Of
Science And Technology, 8(29), 55-78. doi: 10.17485/ijst/2015/v8i1/84226
Deeter-Schmelz, D. (2007). Personal Selling and Sales Management Abstracts. Journal Of
Personal Selling & Sales Management, 27(4), 389-399. doi: 10.2753/pss0885-3134270408
Denver, S., & Christensen, T. (2014). Consumers’ Grouping of Organic and Conventional Food
Products—Implications for the Marketing of Organics. Journal Of Food Products
Marketing, 20(4), 408-428. doi: 10.1080/10454446.2013.807404
Janssen, M., & Hamm, U. (2012). Product labelling in the market for organic food: Consumer
preferences and willingness-to-pay for different organic certification logos. Food Quality
And Preference, 25(1), 9-22. doi: 10.1016/j.foodqual.2011.12.004
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Kastberg, P. (2015). Promoting communication, participation, and learning with regard to
organic food products: a communication theoretical approach. Ecology And Society, 20(1),
123-142. doi: 10.5751/es-07139-200103
Krstic, I., & Becic, S. (2011). Implementation of marketing strategy: Factor of competitive
advantage. Marketing, 42(2), 118-126. doi: 10.5937/markt1102118k
Salai, S., Sudarevic, T., Djokic, N., & Pupovac, L. (2014). Marketing research for choosing the
promotional message content for domestic organic products. Ekonomika
Poljoprivrede, 61(2), 501-515. doi: 10.5937/ekopolj1402501s
Song, M. (2018). A study on the Repositioning Strategy for Competitiveness of Enterprise in
Low-Cost Cosmetics Market. Asian Journal Of Beauty And Cosmetology, 16(3), 405-416.
doi: 10.20402/ajbc.2018.0225
Supplements, H., buy, W., Flour, B., Pizza, P., Juice, W., & Starch, R. et al. (2018). Natural &
Organic Superfoods In Australia | Natural Evolution. Retrieved from
https://www.naturalevolutionfoods.com.au/
Urde, M., & Koch, C. (2014). Market and brand-oriented schools of positioning. Journal Of
Product & Brand Management, 23(7), 478-490. doi: 10.1108/jpbm-11-2013-0445
Zia, M., & Kumar, N. (2016). A Three Dimensional Vertical Differentiation Model: Implications
for Segmentation, Targeting and Positioning. SSRN Electronic Journal, 3(8), 37-56. doi:
10.2139/ssrn.2758430
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