Service Marketing Strategies and Analysis

This comprehensive assignment delves into the realm of service marketing, covering essential concepts such as segmentation, targeting, and positioning for launching new products. It also explores controlling strategies like monitoring customer feedbacks, target market sales, budgeting, and market share milestones. The assignment draws from various studies and research in service marketing, highlighting its importance in B2B marketing and the experience economy approach to festival marketing.

Service Marketing

Table of Contents
Introduction......................................................................................................................................3
Analysis of current situation.......................................................................................................3
Key issues....................................................................................................................................5
Objectives....................................................................................................................................7
Marketing mix strategies.............................................................................................................8
Action plan..................................................................................................................................9
Controls.....................................................................................................................................10
Conclusion.....................................................................................................................................11

Introduction
Service marketing refers to marketing that is dependent on values as well as relationship,
It is being utilised for marketing of products or services. The publicity of economic activities that
is being carried out by business for their clients and comprises of processes associated with
selling of health treatment, air travel, car rental, hospitality, and telecommunication services
(Åge, Cederlund and Gummesson, 2014). This report is based on KORA Organics which offers
skincare products which are made in Australia and provides a blend of certified as well as natural
organic ingredients. Furthermore, they are about to launch a product Sun Skincare cream to
enhance their product list as well as attract more customers towards them. This report contains
comprises of current conditions, key issues associated with this, their objectives along with
marketing mix. Apart from this, action plan and controls associated with the product will be
illustrated.
Analysis of current situation
KORA Organics have been featured within different magazines like Vogue Australia,
Shop, Shop Til You Drop and Cleo. They are also present within social network websites,
irrespective of this, there potential customers do not know about the services which are being
delivered by them. It denotes that there has be improvisation within the ways through which they
render their services as only 4% of population go for online shopping of skincare products, 24%
opted for department stores, 38% via a supermarket and 28% through pharmacies. With respect
to current marketing situation, they have made there promotional appearance within David Jones
when special occasion like Mothers Day or any other event takes place, bags are given to fans
and television advertisement is being carried out.
Target market: They emphasise on age group of 16 to 45 years as they are more
addicted to skin care products and are more conscious about their looks. This denotes that via
this, they will be able to attract more number of customers towards services that are being
offered by KORA Organics.
Service information: They provide the wide range of services to their customers. They
are Noni Glow Face Oil, body oil, skin food, Heart Chakra Aromatherapy oil, rose quartz

luminizer, facial sculptor, gift cards, lotions, balms and many more (Carù and Cova, 2015).
KORA Organics ensures that they make use of sustainable, sourced as well as environmentally
friendly exfoliants. They comprises of organic products for their customers. Along with this,
there services do not contains any kind of animal components and are classified VEGAN. They
are also looking forward to enhance their product list by adding Sun Skincare cream so that there
customers can prevent there skin from any kind of negative effects that are by radiations from the
sun.
Competitive situation: KORA Organics was was founded in 2009 by Miranda Kerr with
a organic skincare products. They have small range of products by which they are able to
emphasise on each product individually as this will enable to ensure the highest quality of
services (Choo and Petrick, 2014). Along with this, by adding new products within the list will
lead them to enhance the brand image which will lead them to have competitive advantage
within the market. KORA Organics needs to have their own stores so that customers can directly
opt for their services rather than indirectly selling their products via pharmacies or supermarkets.
This will lead them to enhance their sales and uphold their product image as it seems that within
own stores quality offered is more superior. KORA Organics can also provide the facilities like
trying the products before they are bought in, so that customers get satisfied with the services
that are being offered and be loyal towards services that are being offered by them. There
competitors are Dove and Neutrogena.
Macro environment: It denotes a condition which prevails within economy rather than
within a specified region. In this context Pestle analysis of KORA Organics has been illustrated
below:
Political factors: This component comprises of policies as well as rules of government in
which firms such as KORA Organics render their services. Before delivering their services, they
need to analyse the market like intellectual property protection, political stability and many
others. In case if within manufacturing of their new products sun skincream ingredients are
required from other countries or are sold out their then they also need to adhere to those.
Economic factors: This sector is resistant to the economic recessions which prevails
within country. As people are more conscious for price and they opt for services that are
mandatory for surviving (Kuada, 2014). For this, it is necessary that KORA Organics must take
into consideration exchange rates, labour cost, unemployment, inflation & interest rates.

Social factors: It encompasses of the technical trends which exists within the society.
There exists certain ethical issues which must be followed by KORA Organics for an instance
ingredients used within the products as it might be considered as a holy sin. This may lead them
to have ethical as well as social pressures on the business. But as KORA Organics is making use
of organic products only so that social beliefs of individuals are not affected.
Technological factors: Technology has impact within each sphere, like within cosmetic
industry technological factors such as trust & innovation plays crucial role. As KORA Organics
have opted for bringing in new product, technology will be crucial to understand what their
competitors are doing as well as what can be done to attract more number of customer’s towards
their services (Edvardsson and et. al., 2014).
Key issues
There are certain issues that are being faced by KORA Organics while rendering their
services such as competition, awareness about the product, availability of product, etc. The major
issue that is being faced by KORA Organics is that they are not having their own store and
delivering their products via indirect sources (supermarket or pharmacy stores), this makes their
potential customers unaware about the services that are being delivered by them. This denotes
that they need to have strong quality of their products by which they will be able to attract their
customers. Although they are making use of organic ingredients while manufacturing of their
products so that it do not create a negative impact on the skin of the individuals. This acts as their
core strength. Along with this, cosmetic industry is rapidly growing and per capita consumption
has also been enhanced. As per the market, KORA Organics formulate the price of products for
correlating value that is being perceived by their potential customers. They are looking forward
to enhance their portfolio by which they can increase the level of services that are being provided
by them within the market (Lusch and Vargo, 2014). In addition to this, they render high quality
services which are gentle as well as simple and fits in different lifestyles.
They lacks the number of customers as they do not have appropriate promotion strategies
for influencing people to a certain extent for attracting more number of customers. Basically,
they emphasise on the quality of services rather than promoting their products. This leads to
pessimistic impact within the product distribution system and creates an impact on their
performance. They rely on the third parties for delivering their services but it is not enough and
this makes them less known within the market. Furthermore, they make higher investments

within research & development and organic processes which makes them to have low profit
margins as compared to their competitors present within the market. These are some issues that
are being faced by KORA Organics while rendering their services.
There are enhanced number of opportunities that can be utilised by KORA Organics with
respect to drawbacks that are being faced by them. There is a increased demand for natural-plant
based products rather than those who makes use of synthetic beauty products in Australia as well
as international market. This means that they have the option to increase their sales as they
already deals with organic products then they need to expand the ways in which they provide
services to their customers (Orel and Kara, 2014). For an instance, along with increasing their
product list KORA Organics can deliver their services in different countries as this will lead
them to have increased benefits. Furthermore, as technology is enhancing it provides them with
an option to promote their services as well as products through the usage of internet and carry
out their sales via a online mediums. This will act as a major opportunity as through this KORA
Organics will be able to grab attention of more number of customers towards their services.
Along with this, they can emphasise on specified segment rather than focussing on the market as
a whole and differentiation strategies can also be applied within this.
The current issues along with opportunities which KORA Organics have are analysed
above but while being within the market, there exists certain threats which also creates a negative
impact on services that are being delivered. There is a enhanced competition within the market as
there are more than 600 growing firms which is raising the standard. Along with this, there are
various market leaders like Dove, L'Oreal ,etc. There is higher degree of competition in the
industry. There is a continuous updation within the demands that are made within the cosmetic
and it becomes difficult to keep with them always. There is also threat from international
marketing as online services are being delivered by almost every firm (Manthiou and et. al.,
2014). Furthermore, while furnishing their services, they also need to adhere to regulations as
well as rules that are being given by government authorities while carrying out sales as well as
importation of beauty products.
The marketing plan must be formulated in such a way that all the issues that have been
mentioned above can be addressed effectively along with the threats so that they can have strong
positioning within the market.

Vision
Vision of KORA Organics is to offer different products according to peoples' skin and
giving a heraltheir alternative to other skincare to other skin care brand on the market.

Mission
Mission statement of KORA Organics is to provide goods quality products to its target
audiences so that they can fulfil their demands and make improvement in brand image.
Objectives
Products KORA Organics are for enriching skin as well as spirit through which busy
schedule can be nourished. For this they ensure that there products are of higher integrity as well
as quality. To have this, they make use of a fruit named Noni which is being utilised for healing
body both from inside as well as outside. Their each product is being infused with natural and
organic ingredients like Jojoba oil, aloe vera, herbal extracts, vitamins A,C & E, essential fatty
acids, replenishing & rejuvenating ingredients. Furthermore, they also makes use of Rose quartz
for soothing. They are the organic ingredients that are being utilised by KORA Organics to
address the growing needs of their customers. There products are as per the strict standards that
have been formulated by COSMOS to ensure that any kind of harmful elements such as synthetic
colours & fragrance, parabens, sulfates, etc. are not being utilised by them.
KORA Organics need to formulate their objectives before they launch their new product
within market. This will aid them to achieve their goals within stipulated time duration and also
as per their anticipations (Suki, 2014). The objectives of new product i.e. sun skincream have
been illustrated below:
 Specific: The major purpose of KORA Organics is to to launch this product within the
market for gaining attention of more number of customers through which there sales can
be intensified.
 Measurable: The target is have an increase of around 25% within their existent customers
along with having their around 5-10 stores within the market of Australia.
 Attainable: This aim can be achieved through rendering appropriate training as well as
development programme for their employees. Furthermore, carrying out the marketing or
promotional activities in an appropriate manner so that attention of people can be
grabbed.
 Relevancy: The launch of product will assist organisation to develop their position within
the market with respect to their competitors within there.
 Time period: The time bound for attaining this target is of 10 months after the launch of
products.

 Sale increment: To maximize the gross sales of the company in 2 years with the help of
its different products and services.
 Profitably maximization: By making innovation in its organic products and provide to
customer with the purpose of making increment by 5% within 1.5 year.
SWOT analysis

Strengths Weaknesses
 This company offer wide range of
organic skin care products and provide
discount and offers to customers.
 Good digital and social media present
to aware customers about its products
and services.
 This firm has limited presence in
premium market.
 Problem of differentiation in its
products generates confusion in the
mind of the customers.
Opportunities Threats
 By making innovation in its product
line, it can gain various business
development options.
 By expanding its business at new
geographical locations.
 There are number of competitors in the
market and they offer various organic
substitute products.
 Lack of market presence also affect the
business of the company unfavourably.
Marketing mix strategies
The set of tactics or actions that are utilised by firm for promotion of brand as well as
their products within the market is referred to as marketing mix. Basically, they denotes the
strategies which are being utilised by firm for formulation of their services for their customers
(Ostrom and et. al., 2015). Its objective is to develop a right product at the optimal price within
the specified place through the utilisation of appropriate promotional mechanism. This denotes
that it is process which will illustrate the market conditions or situations which exist within the
market before any new product is launched. Management of KORA Organics is making use of
marketing mix for for their new product sun skincream. The respective have been illustrated
below:
Marketing Mix Strategies
Product The product which KORA Organics is about to launch is skin suncrean
which will be containing ingredients such as sea, hot spring & glacial
water, pomegranate and bamboo extract along with turmeric & curd
which will protect their customers from the radiations as well as heat of
the sun. The testing has also been carried out to find out the product will

do as per the expectations and is beneficial for skin of their customers
(Dabholkar, 2015).
Price They have decided to bring in the market their new product at optimal
prices while it is being launched and once it becomes successful then
price can be increased as per the demand as well as competitors of
product present within the marketplace. They aims at providing quality
products to their customers rather than price at which it is being
delivered.
Place This product is available within different supermarkets as well as
pharmacy stores and also they are delivered through online mediums.
But they are also planning to launch their own store which will provide a
better option for the sales of their product. This will lead to fascinate
more number of customers. Furthermore, online media provides a
platform through which there customers will be able to have easy access
to the services and can be accessed from anywhere at anytime.
Promotion The firm makes use of different promotional activities such as
advertisements via different channels. Along with this, they can make the
promotional appearances within stores of David Jones as they do at
present on the occasions of special events (Barile and et. al., 2016). In
addition to this, they offer their clients with gift hampers and also gives
notifications within billboards & television. Through this, they can make
people aware about services that are being delivered by them.
Process For the manufacturing of their product, KORA Organics is making use
of latest technologies. Along with this, modern methods are being
utilised to reach out maximum number of customers for carrying out the
promotions of their new Sun skincream.
People The organisation possess talented as well as skilled employees who can
carry out their operations in an effective manner and this is the reason
that they are sustainable within the market with their their experienced

staff (Saarijärvi, Grönroos and Kuusela, 2014).
Physical Evidence KORA Organics is having an affirmative and friendly working
environment where there employees can utilise their skills as well as
deliver their services as per the anticipations of management.
Action plan
The STP for KORA Organics has been illustrated which reveals the details associated
with their market plan while bringing in their
Segmentation: The market segmentation is being carried out with respect to choices and
needs of their customers. There are different segments, within psychological people it involves
individuals who wanted to look good and relax. Other section is demographic segmentation in
which both males & females utilises fashionable cosmetic products and accessories through
which their personalities can come out in a better manner (Carù and Cova, 2015). This will lead
KORA Organics new product to sustain within the market for longer duration of time.
Targeting: This is defined as targeting a smaller group of individuals from the wide
population while launching their new product within the marketplace. KORA Organics has
targeted the adults as well as youth as they are more conscious about their skin so that their new
product can gain attention and they can have enhanced sales (Woodruff and Flint, 2014).
Positioning: This denotes the position of the business within the marketplace. The
KORA Organics can amplify their goodness within the competitive market for launching Sun
Skincream within the market. The product must be launched as well as well-promoted along with
this exact and accurate information should be given to their customers so that they can show their
interest towards the products that are being delivered by them.
Implementation plan for the promotional launch
For launch of the product within the market, it is necessary for the firm to formulate
budget which is anticipated by the organisation. This will include all the amount that has been
specified, like for promotional activities by which they can launch their product as per the
desired standards within the market (Gonzalez-Padron and Ferguson, 2015). The promotional
channels comprises of advertisement by famous personalities, online advertising, magazines and

various others. The budget for the launch of Sun skincream of KORA Organics has been
illustrated below:
Particulars Amount
Promotion on social media(20%) 40000
In Online Platforms (35%) 50000
On magazines(10%) 35000
Mouth publicity (10%) 25000
Controls
For maximising the return from marketing plan, there have to be controls within the place
for monitoring the progress of plan. As the plan is moving continuously, then the controls must
be analysed continuously for determination of performance of plan with respect to projections
that have been carried out. Any alterations that have to be carried out must be with respect to
investigation of marketing controls.
Monitor customer feedback: Marketing aims at persuasion of customers for purchasing
a product or making investment within the specified services. This is the one control which is
kept in the place in marketing plan for monitoring feedback of their customers through surveys
& polls. Customers can be reached out indirectly through online polls, interviews or surveys.
Target market sales: Sales can be calculated in terms of units that have been sold, the
profit amount or revenue that has been generated (Åge, Cederlund and Gummesson, 2014).
Again this is carried out through the surveys or by making use of point of sale with the assistance
of retail partners.
Conclusion
From the above report, it has been concluded that service marketing can be described as
marketing that is based on the criterion of values as well as relationship. It includes the new
product of given organisation that is sun skin cream for which current situation was analysed
including certain aspects like competitive condition, service data, target market and macro
environment. However, it involves marketing mix strategies in regard to product, price, place,

promotion, process, people and physical evidence. Moreover, it consist an effective action plan
of marketing including segmentation, targetting and position to launch new product in market.
Furthermore, it also consist controlling strategies like monitoring customer feedbacks, target
market sales, budgeting & monitoring spending and market share milestones.