Strategic Planning for Adventure Caravan

Running head: STRATEGIC PLANNING
Adverture Caravans
Develop Organizational Marketing Plan
3/5/2019

STRATEGIC PLANNING 1
Executive Summary
The intent of this report is to present strategic planning for Adventure Caravan for next three
years. The report is representing the present performance and strategies adopted by the
company to cover the market like direct distribution channel, low product price strategy, and
the use of advertorials for the promotion of the business. However, in the future, the company
is planning to add different features into the caravans business such as airbags, and fiberglass
that allows the safety of the customer. Besides this, it has planned to convert its direct
distribution channel to indirect distribution channel and adopt mass promotional tools such as
advertisement and digital marketing. Moreover, according to the future positioning map, the
company will improve its quality but with the increasing prices of the raw material and
interest rates, it is expected that the prices of caravans can also increase.

STRATEGIC PLANNING 2
Table of Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Section 1 Identify Strategic Direction........................................................................................3
Mission of Adventure Caravans.............................................................................................3
Vision of Adventure Caravans...............................................................................................3
Values of Adventure Caravans...............................................................................................3
Adventure Caravans’ Strategic Organizational Documents..................................................4
Situation Analysis..................................................................................................................4
Company............................................................................................................................4
Competitors........................................................................................................................4
Customers...........................................................................................................................5
Profit and Loss.......................................................................................................................5
Market Position Matrix..........................................................................................................6
BCG Matrix........................................................................................................................6
................................................................................................................................................6
................................................................................................................................................6
Legal and Ethical Requirement for Adventure Caravans......................................................6
Current Market Positioning....................................................................................................7
Positioning Map.................................................................................................................8
Future Positioning..................................................................................................................9
Future Positioning Map......................................................................................................9
Section 2 Review of Marketing Performance..........................................................................10
Market Research...................................................................................................................10
Current Marketing and Positioning Strategy of Adventure Caravans.............................10
SWOT Analysis...................................................................................................................12
Strength............................................................................................................................12
Weaknesses......................................................................................................................12
Opportunities....................................................................................................................12
Threats..............................................................................................................................12
PEST Analysis.....................................................................................................................13
Political Force..................................................................................................................13

STRATEGIC PLANNING 3
Economic Force...............................................................................................................13
Social Force......................................................................................................................13
Technological Force.........................................................................................................14
Section 3 Scope Marketing Opportunities...............................................................................14
Cost-Benefit Analysis..........................................................................................................14
Cost-Benefit Analysis for Adventure Caravans...............................................................14
Return on Investment...........................................................................................................15
Industry Forecasts................................................................................................................15
Section 4 Formulate Marketing Objectives..............................................................................16
Marketing Mix.....................................................................................................................16
Product.............................................................................................................................16
Price..................................................................................................................................16
Place.................................................................................................................................16
Promotion.........................................................................................................................17
Planning matrix....................................................................................................................17
Risk Management Plan........................................................................................................18
Risk Identification............................................................................................................18
Risk Evaluation................................................................................................................18
Risk Mitigation.................................................................................................................19
Conclusion................................................................................................................................19
References................................................................................................................................20

STRATEGIC PLANNING 4
Introduction
Strategic planning is said to be very essential for a business as it offers a direction and
outlines measurable objectives. Strategic planning is one of the tools that are used for day-to-
day business guidelines, decision-making, measuring progress, and altering techniques
(Abraham, 2012). The paper is being presented to plan the strategic planning for Adventure
Caravan that comprises the mission of the business, scheduling goals, evaluating progress,
and strategic planning process. This strategic planning is being done to set the market
objectives for the company over the next three years.
Section 1 Identify Strategic Direction
Mission of Adventure Caravans
The mission of Adventure Caravans is to make quality family caravans in order to fulfil the
requirement of the target market. The key priority of the company is to provide everlasting
memories and adventures experience to its customers. Besides this, it tries to be a responsible
employer and offer its employees a secure and safe working environment.
Vision of Adventure Caravans
The vision of Adventure Caravans is to be known in the market as the only manufacturer and
supplier of quality commercial and recreation caravan and campers in Australia.
Values of Adventure Caravans
The company encourages teamwork by motivating employees to support each other in daily
business activities. However, it is recommended that the company must treat every employee
equally and offer the same type of opportunities to each employee according to their skill
sets.

STRATEGIC PLANNING 5
Adventure Caravans’ Strategic Organizational Documents
The strategic organizational documents of Adventure Caravans comprise a business website
and annual report. From the analysis, of the organizational documents it has been identified
that the company is successfully offering its services in the Australian market and earning
revenue based on the quality of the Caravans. The company sells mid-range products with
high quality. Besides this, 90% of the caravans of the company are sold directly from the
factory. The organizational chart of the company comprises
General Manager - Barry Smith
Finance and administrator - June Smith
Design Manager -Tony Smith
Quality and Production Manager - John Smith
Human Resource Manager – Helen Smith
Situation Analysis
Company
Adventure Caravans is established in Melbourne as the family-owned business. Since the last
30 years, the company is involved in the manufacturing of quality family caravans. The
company offers mid-price caravans from the range of $30,000 to $70,000. Yearly, the
company has set the target to vend 200 caravans.
Competitors
Australian caravan industry is considered one of the most developing industries. According to
the analysis, it has been identified that in 2014, the Caravan industry of Australia produced
the second highest number of motorhomes and caravans. The industry comprises around 90
manufacturers who employ around 25000 people (McDonald, 2015). The main player of the

STRATEGIC PLANNING 6
industry is Jayco Australia and AVIDA Caravans, who give strong competition to Australia
Caravans.
Jayco Australia is the manufacturer of recreational vehicles with head office in America. The
company has attained the top position in the Australian Caravan industry by manufacturing
around 11,000 caravans, motorhomes, and camper trailers in 2016 (Jayco, 2019). Jayco is
privileged to manufactured products in every area of RV with the price range from $18,000 to
$90,000, which offer benefits from different needs of the customer.
AVIDA Caravans endures nurturing the market of the caravan with its innovative and top
designs of caravans. The company has included different products range in order to provide
more options to the customers (Australian Motor Homes, 2019).
Customers
The Caravan industry of Australia majorly targets two customer groups that are families and
retirees. The retirees are the one who takes interest in purchasing the caravans. These
customers have been influenced by the low rates of interest on their savings and
superannuation, whereas the same lower rates of interest had made simpler for the families to
purchase a camper trailer (Caravan Industry Association of Australia, 2019).
Profit and Loss
In a year, Adventure Caravan sells 200 caravans with the price range from $30,000 to
$70,000. Over years, the company has operated the business at a profit and offered a good
return to the owners. From the analysis, it could be said that in the future the company will
try to maintain similar profit margins by enhancing the product quality. However, with the
increasing prices of the raw material the prices of the Caravans can increase in the coming
future.

STRATEGIC PLANNING 7
Market Position Matrix
BCG Matrix
The BCG Matrix is designed to support businesses in framing long-term strategic planning
such that it can assist in gaining growth opportunities. The BCG Matrix is categorized into
four Quadrants i.e. Star, Question Mark, Cash Cows, and Dogs (Pruschkowski, 2018).
Adventure Caravan is involved in the manufacturing of caravans with high quality at the mid-
price range. According to the BCG Matrix, Adventure Caravan is placed at the Star quadrant
that is a high growth market with low market share.
Legal and Ethical Requirement for Adventure Caravans
 The member must not involve in the practices that could have a negative effect on the
public, the association, and to result in any scandal to the Camper Trailer Industry.
M
A
R
K
E
T
G
R
O
W
T
H
R
A
T
E
Relative Market Share
Star
DogCash Cow
Question
Mark
Adventure
Caravan

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 The Member must not adopt any discriminating activities in the business, and evade
speaking unfavorably about product or work of other Members, except situations
demand affirmative action.
 The Member must follow State and Federal laws related to the product and workplace
compliance standards.
 The company must state the services to be done and settings of sale comprising,
guarantees, warranties, and product specification (Australian Manufactured Camper
Trailer Guild, 2019)
 The company will work to enhance the condition of the industry by sharing its
experiences for everyone’s benefit
 The company will offer employees a rewarding and enjoyable environment,
comprising personal skills and career development opportunities, in compliance with
the laws of Australian Workplace
Current Market Positioning
The carmakers are presently planning to leave Australia, which is increasing the attention of
the customers on another sector of the vehicle that is flourishing- camper trailers,
motorhomes, and caravans (Vicente, 2017).

STRATEGIC PLANNING 9
Source [(Vicente, 2017)]
Positioning Map
Presently, Australia Caravans is offering high quality of caravans at a reasonable cost in
comparison to its competitors like Jayco Australia AVIDA Caravans. Both the rivals have
strong positioning in the market with a good brand image that supports them in selling their
vehicles. Jayco Australia has occupied the top position of the market by making around
11,000 caravans, motor homes, and camper trailers in 2016 (Vicente, 2017). Similarly,
AVIDA Caravans has occupied the second top position. All the players have successfully
High
Quality
Low
Price
High
Price
Low
Quality
Jayco
Australia
AVIDA
Caravans
Australia
Caravans

STRATEGIC PLANNING 10
gained the increasing opportunity of the caravan industry and majorly contributed to the
country's economy.
Future Positioning
The products that are imported are threatening the Caravan industry of Australia however, it
has been said that the currency fluctuations and Australian compliance have made it tough for
the Chinese, and United States manufacturers to make an impression in the industry. The
businesses expectations for camping and caravan industry over the next some months will
continue to be positive. A huge part of the industry commentary debated regarding the
altering Australian demographics and its effect on the discretionary spending, holidays and
changing patterns of travel (Caravan Industry Association of Australia, 2017).
Future Positioning Map
High
Quality
High
Prices
Low
Prices
Jayco
Australia
AVIDA
Caravans
Australia
Caravans

STRATEGIC PLANNING 11
Section 2 Review of Marketing Performance
Market Research
The recreational vehicle sales in Australia are performing well, as it has increased to 15% in
the last 4 years on swelling domestic tourism and low-interest rates (Vicente, 2017). This is
just because the carmakers in Australia are planning to leave the industry, which is increasing
the sales of the Caravans and Camper in the market. The RV industry is contributing a high
amount in the economy as the catalyst and employer for the hospitality infrastructure and
national tourism trade.
Current Marketing and Positioning Strategy of Adventure Caravans
Customer
The target market of Adventure Caravans is families and retirees. Retirees are the one who
purchases caravans and families take interest in purchasing campers (Caravan Industry
Association of Australia, 2019). Presently, the major focus of the company is to satisfy the
demand of its customers by offering high-quality products at low rates. Company achieves
this by marketing its products with the help of promotional tools that are Sales Promotion.
However, adopting only a single promotional tool does not support business in reaching the
maximum number of customers.
Low
Quality

STRATEGIC PLANNING 12
Cost
The key priority of Adventure Caravans is to satisfy the needs of its customers at any cost.
Therefore, the company has planned a low price range in comparison to its competitors to be
positioned as a low-cost caravan manufacturer. As for now, maintaining the low prices of the
products can be beneficial for the business, but in the future, it can result in huge losses.
Convenience
Adventure Caravan’s 90% of the products are directly sold from the factory in order to avoid
any type of damage or theft of the goods. Besides this, selling products directly from the
manufacturing unit reduces the delivery cost of the business. In order to grow the business, it
is very important for the company to expand its operations in different countries for which it
requires an indirect distribution channel.
Communication
Adventure Caravan has adopted a two-way communication strategy under which both the
involved parties transmit information. Two-way communication is also called as
interpersonal communication. Common types of two-way communication adopted by the
company are Telephonic Conversation, Instant Messages and Chat rooms, and Radio
Contacts (Lord, 2011).
SWOT Analysis
Strength
High-Quality products – Adventure Caravans is involved in the manufacturing of high-
quality caravans for the customers in order to survive in the market for the long-term in front
of its competitors.

STRATEGIC PLANNING 13
Weaknesses
Ineffective Marketing – Adventure Caravans has adopted Sales Promotion, camping shows
and advertorial as its Promotional tool for targeting its customers. These tools only support
the company in reaching a limited number of customers in the market, which limits the sales
of the business.
Opportunities
Growing Caravan Market – As per the last four years performance the Australian Caravan
industry has increased by 15% and contributing high value into the country's economy
(Vicente, 2017). It is expected that the industry will grow in the coming two to three years
because the interest of the customers has been shifted from cars to caravans and campers.
Threats
Competitors – The Australian Caravan Industry is comprised of around 90 Caravan
manufacturers who are trying to cover the market and increase their market share (Vicente,
2017). The key players in the market that are raising threats towards Adventure Caravan are
Jayco Australia and AVIDA Caravans. Besides this, in the coming future, the neighboring
country players will increase the threat to the company.
PEST Analysis
Political Force
The government of the country set the policies that eventually control the camping and
caravan's destiny in Australia. Customers and Industry agree that the present camping and
caravan regulations are strict and restrict market freedom. It is expected that the licensed
caravan park to have high ratios for ablution and different facilities to inhabitants. Besides
this, increasing market pressure and costs because of the artificial ceiling on the tariffs and

STRATEGIC PLANNING 14
availability of alternative camping areas can have an adverse impact on the industry
(Caravan, 2012).
Economic Force
Market confidence is said to be the key influencer for the development of camping and
caravan tourism. While the market provides numerous product options that do not involve
any type of capital investment for the customers such as tents, a huge portion of the market
takes a capital decision regarding purchasing campervan and caravan.
The decision regarding purchasing RV is mostly a lifetime pledge to the segment of tourism.
Worldwide economic fears are increasing problems for numerous customers, specifically for
those who are attaining the age of retirement and self-funded retirees (Caravan, 2012). On the
other side, for the family, the threat of unemployment is raising the potential problem.
Social Force
The market is presently influenced by the increasing demand for the goods and accessibility
problem in the peak season. Illegal camping can influence the sustainability of the caravan
parks that are licensed if not managed properly (Caravan, 2012).. Considering the customer
point of view, they are regularly asking to enhance the service delivery in the camping and
caravan tourism sector.
Technological Force
Pre-trip planning requires different information sources that can satisfy the needs of the
customers. Those customers who have mobile tablets and smartphones are using Google,
mobile application, Twitter, and Facebook (Caravan, 2012).. Therefore, it is important for all
the businesses including Adventure Caravan to promote its business on above-mentioned
social media platforms.

STRATEGIC PLANNING 15
Section 3 Scope Marketing Opportunities
Cost-Benefit Analysis
Cost 2019($) 2020($) 2021($)
Technology 5000 5000 5000
Maintenance or Repair 300 330 363
Total Cost 5300 5330 5363
Benefit
Increasing Profit 6000 6600 7260
Total Benefit 6000 6600 7260
Cost-Benefit Analysis for Adventure Caravans
Tangible Cost
Purchase of Technology and Material
Regular update in the used technology and changes in the material
Employees Training cost
Increasing Cost in the future
Tangible Benefits
Increase in the profit by investment in product development
Intangible Cost
Time consumption in the training of the employees
Intangible Benefits
Increasing brand recognition
Improving brand image
Attaining Competitive advantage
Return on Investment
Cost of
Investment Current Value of Investment

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Investment Amt ($) 2019($) 2020($) 2021($)
Technology 5000 7000 7700 8470
Repair 200 300 330 363
Raw Material 7000 9000 9900 10890
Research 500 800 880 968
Marketing 1000 2000 2200 2420
Total 13700 19100 21010 23111
ROI=(Current Value
of Investment - Cost
of Investment)/Cost
of Investment 39% 53% 69%
Assumption: It has been assumed that the current value of investment is increasing by 10%
every year
Industry Forecasts
The revenue of the Caravan industry is anticipated to increase yearly at a rate of 3.9% over
five years to around $200.6 million. This comprises the expected growth of the revenue of
around 2.6% in 2018-2019 (IBIS World, 2018a). Increasing demand from the tourist from the
international market has added to the growth of the industry in the last five years. Decreasing
value of the Australian dollar, with inexpensive international fares of airlines, has resulted in
an increase in the tourist number to Australia over the period.
Section 4 Formulate Marketing Objectives
Marketing Mix
Product
Businesses operating in the manufacturing industry of RV Vehicle create a variety of
products that allow consumers to travel and holiday in isolated places securely and
economically (IBIS World, 2018b). Presently, the company is involved in the manufacturing

STRATEGIC PLANNING 17
of Caravans and Camping for customers like traveling and adventures. The company is
planning to manufacture caravans with advanced features like fiberglass that allows smooth
aerodynamic shape. Besides this, the company will add airbags in order to allow softer rides.
The objective of the company to include new features in its products is to increase the market
share and sales of the company
Price
Adventure Caravans is offering its high-quality Caravans at low prices to its target segment
that is families and retirees. The product range at which the company offers its products is
$30,000 to $70,000. However, considering the increased operational cost of the businesses
operating in the manufacturing industry of Caravan due to fluctuations in the tax rates and
currency, it is expected that the prices of the Adventure Caravan will increase in the coming
future. From the analysis, it could be said that the company will be able to control the product
range from $35,000 to $75,000.
Place
Adventure Caravan is yearly selling 200 caravans in the market with the support of direct
distribution channel. Under the direct distribution, the company sells 90% of its caravan
direct from its manufacturing or factory outlet in order to save the cost of transportation.
However, in the coming future company is planning to expand its market and add features in
the product in which selling products through direct distribution channel can be a
disadvantage for the company. Therefore, in order to have an effective distribution channel,
Adventure Caravan will adopt an indirect distribution channel.
Promotion
The key priority of Adventure Caravan is to provide everlasting memories and adventures
experience to its customers. In order to align the vision of the company with its strategic

STRATEGIC PLANNING 18
planning, it is very important for the company to adopt different promotional tools, which
will support in improving the brand awareness as well as increasing sales. In the strategic
planning for three years of Adventure Caravan, it will make use of different mass marketing
tools such as Advertisement and Digital Marketing. The objective of marketing products
through different promotional tools is to increase brand recognition and improve brand
image.
Advertisement - Television, radio, billboards, and hoardings
Digital Marketing – Different social media platform like Google, mobile application, Twitter,
and Facebook (Ryan & Jones, 2012)
Planning matrix
Strategies Task Allocation Time Frame (3
years)
Market Research Research and
Development Team
6 Months
Hiring employees Human Resource
Department
2 Months
Training of Employees Human Resource
Department
3 Months
Purchase of raw material Production
Department
2 Months
Marketing of Products Marketing Department 6 Months

STRATEGIC PLANNING 19
Contacting to different
intermediaries of
distribution channel
Administration
Department
5 Months
Risk Management Plan
Management of the risk in a project is the procedure that comprises risk valuation and
mitigation strategy for the identified risks (Carpenter, 2010). The steps involved in the risk
management procedure are:
Risk Identification
The possible risk for Adventure Caravans is increasing the cost of the operations, which will
eventually result in increasing the product prices for the customers. Besides this, another risk
that will be faced by Adventure Caravan is the increasing threat and competition from the US
and Chinese caravan manufacturers.
Risk Evaluation
The increasing cost of the products can result in reducing the number of customers, which
will eventually affect the profit margin of the company. Besides this, the entering of Chinese
and US Caravan manufacturer can reduce the market share of the company as well as its
profit margin.
Risk Mitigation
In order to mitigate the above-mentioned risk the risk management team of Adventure
Caravan will try to reduce the risk through the investment of funds. The company will hire an
expert that could analyze the fluctuations in the currency and the prices of the raw material in
order to prepare a contingency plan for the future that could reduce the effect of risk on the
company's profit margin.

STRATEGIC PLANNING 20
Conclusion
The above report is based on the presentation of strategic planning of Adventure Caravan for
next three years. As per the analysis conducted above, Adventure Caravan is established in
Melbourne as the family-owned business. Since the last 30 years, the company is involved in
the manufacturing of quality family caravans. The motive of the company is to provide
memories and everlasting experience to the families and retirees. In a year, Adventure
Caravan sells 200 caravans with the price range from $30,000 to $70,000. Over years, the
company has operated the business at a profit and offered a good return to the owners.
Therefore, it could be said that in the coming three years the company will try to maintain
similar profit margins by enhancing the product quality. According to the plan, in the coming
three years the company will add different features in the caravan in order to provide more
benefits to the customers. Besides this, the company will adopt mass promotional strategies
that are digital marketing and advertisement to attract a maximum number of customers.

STRATEGIC PLANNING 21
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U.K: Emerald Group Publishing.
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http://www.australianmanufacturedcampertrailers.org.au/code-of-ethics/
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October-2016.pdf
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https://www.caravanindustry.com.au/marketing-to-consumers
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Report. Retrieved from https://www.ibisworld.com.au/industry-trends/specialised-

STRATEGIC PLANNING 22
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manufacturing.html
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