BSBMKG608 Project: Strategic Marketing Plan for Adventure Caravans

This project outlines a strategic marketing plan for Adventure Caravans, a family-owned business in Melbourne. It includes a situational analysis covering the company's background, current direction, and targets. The report reviews marketing performance through market research, SWOT analysis, and...Read More

Marketing
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Marketing 1
Executive Summary
The purpose of the report is to prepare the strategic marketing plan for the company in case
study. In the present era, the company is dealing with the intense competition in the market due
to which it becomes essential for them to take the right steps. Considering the same, the analysis
of the strategic direction of the company will undertake in the report. In addition, the review of
the marketing performance from the future aspect will be conduct. Moreover, the finding reflects
the different opportunities and threats presented with the help of PEST analysis. The objectives
of the company are set for the next 3 years with the help of marketing mix. The timeframe for the
activities is presented with the analyses of the risk that will be faced by company.

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Contents
Introduction......................................................................................................................................4
Identify Strategic Direction.............................................................................................................5
Company background..................................................................................................................5
Identification of business current direction and targets...............................................................6
Situational Analysis.................................................................................................................6
Profit and loss..........................................................................................................................7
Market position matrix............................................................................................................8
Positioning map.......................................................................................................................9
Legal and ethical issues.........................................................................................................10
Review of Marketing Performance................................................................................................11
Market research.........................................................................................................................11
SWOT analysis..........................................................................................................................12
Strengths................................................................................................................................12
Weaknesses............................................................................................................................12
Opportunities.........................................................................................................................13
Threats...................................................................................................................................13
PEST Analysis...........................................................................................................................13
The scope of Marketing Opportunities..........................................................................................14
Cost-Benefit Analysis................................................................................................................14

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ROI – return on market investment...........................................................................................15
Industry Forecasts......................................................................................................................15
Formulate Marketing Objectives...................................................................................................16
Marketing Mix...........................................................................................................................16
Timeframes................................................................................................................................17
Risk Management Plan..............................................................................................................17
Conclusion.....................................................................................................................................19
References......................................................................................................................................20

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Introduction
The aim of the report is to perform the role of a marketing consultant and to prepare the strategic
marketing plan for the Adventure caravans. The owner of the company has contacted the several
marketing consultancy businesses with the motive to get assistance for preparing the strategic
marketing plan for setting pout the marketing objectives for the next 3 years. The case study
based on Adventure canvas is given which help in forming the strategic marketing plan. The
report includes a detailed analysis in a different section that is discussed below.

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Identify Strategic Direction
Company background
Adventure Caravans is a family owned business that is present in Melbourne with this company
is able to maintain its business operations for the next 30 years. The core business operation of
the company is to manufacture and sell Caravans.
Mission: - The mission of the company is to manufacture quality family caravans with the
obligation to fulfil the needs of the target market. In addition to this, the company believes in
everlasting adventures and memories that are a priority of the company. The mission of the
company is to be a responsible employer who can offer employees with a safe and secure
working environment.
Vision: - The vision of the company is to be recognised as a leading manufacturer and supplier
of the quality recreating as well as the commercial caravan and campers in Australia.
Organisational chart

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Considering the analysis of the company, it is recommended to the company to expand the reach
to the used caravans dealing as this helps them to increase the revenue stream of the company.
Identification of business current direction and targets
This section includes identification of business current direction as well as targets with the help
of the situation analysis.
Situational Analysis
The situational analysis includes the analysis of the external as well as the internal analysis
related to the factors that influence the operations of the company (CFI, 2018). The below given
is the description of the major factors that influence the working of the company.
Company Adventure Caravans is a family owned company who majorly offer the mid-
priced family caravans that range from the small pop tops to approx. 23ft semi
off-road units. The company will surely go to increase the range of products as
June and Barry
Smith (Partners)
Administration
and finance
Design Manager
(Son)
Production and
Qaulity manager
(Son)
Human
Resources
(Daughter)
General
Manager and
marketing

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well as the services (CFI, 2018). The company will expand its business
operations by including the used car dealing in their operations. The customers
of the company will increase as most of them are making use for the business
purpose.
Competitors The competitors of the company are increasing which affect the business
operations of Adventure Caravans. The major competitors of the company
include Aussie Wide Caravans, Compass and Majestic Caravans (Caravan
Links, 2019). In the near future, the competitors of the company will increase
because of the emerging market of Caravans.
Customers The customers of the company majorly include family, youth, and retirees. The
family and retirees demand is high as they are the one who is interested in
making the use of caravans. Further, youth present in the market will take
interest in making the purchase of caravans due to different reasons that
include business, hobbies, and many others. In the near future, the target
market of the company will increase with the rise in uses of Caravans.
Profit and loss
The profit and loss analysis helps in deciding the target market for the next 3 years. Over the past
many years, the company has operated the profit and offered a good return to its owners. This
has been found that the company is able to manage the high profit. This is evident with the fact
that Adventure Company is able to sell 200 caravans every year at the price range of $30,000 to
$70,000. This profit of the company will increase in the next three years with the rise in demand

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for the product. The company might be able to touch 400 caravans in a year with the support of
effective strategies.
Market position matrix
Blind Area
This section shows the mismatch between the
brand identity and the position of the
company in the external market.
Open Playground
This quadrant shows the match
between the brands identify and the
perception of it by the market.
Adventure Caravans falls under this
Quadrant.
Unknown Area
The unknown area shows that brand identity
is unclear and there is no distinctiveness is
communicated to the market.
Hidden Area
The brand identity is known but it is
not communicated to the market.
Brand
perception
(External)
Brand identity
(Internal)
Market
Position
Matrix

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Adventure Caravans Company is one of the leading manufacturer and seller of the caravan. The
operations of the company clearly show that the brand has an identity in the market. In addition,
the company is able to sell approx. 200 caravans every year that clarify that the market is aware
of the brand. This means that the company is able to maintain an effective position in the market.
Positioning map
Current Market position map
The positioning of the company shows the brand value and position in the mind of customers
who are present in the market. The current positioning of the company shows that the price kept
by the company is moderate with high quality. The products quality is very good due to which
only the brand is able to maintain an effective position in the market.
High
Quality
High
price
Low
price
Low
Quality
Aussie Wide
Caravans
Compass
Majestic
Caravans
Australian
Caravans

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Future Positioning strategies and map
In the near future, this has been found that the industries of Caravans are expected to grow in the
market. This has been found that the caravanning industry was worthy more than $19 billion to
the Australia economy (D'Mello, 2016). The industry is expected to rise and this will lead to the
rise in the positioning of Australian Caravans. The company will be able to register with a high
price and high quality as this will contribute effectively in enhancing the position. The valuable
brand who offer high quality generally asks for high prices.
Legal and ethical issues
 The legal requirement of the company includes the license for performing the business
operations that majorly include manufacturing and selling of Caravans.
High
price
Low
price
Low
Quality
Caravans
Compass
Majestic
Caravans
Australian
Caravans
High
Quality

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 Australia Caravans Company is obliged to follow the regulations related to the safety of
the product in the present as well as in the future (Hollensen, 2015). There is a possibility
of the numerous changes in the rules and regulations related to the safety of products that
might affect the working of the company.
 The employees of the company should be treated well under the Fair Work Act 2009
(FW Act).
 The company is legally and ethically obliged to respect the employee rights for the right
to privacy, fair compensation, and freedom from discrimination.
 In Australia, all the states and territories have a camper trailer, motorhome and caravan
need to follow the road rules (Caravan, 2014).
Review of Marketing Performance
Market research
The marketing and positioning strategies of the company show that the company offer the
product at affordable prices irrespective of the competitors who offer the product at high prices.
The advertisement is used by the company for promoting the products in the market. Moreover,
this has been found in the near future, the needs and desires of the company will increase due to
which the prices of products will increase (Alkhafaji & Nelson, 2013).
In the market of Australia, this has been found that more than 11 million overnight caravan and
camping trips were undertaken throughout Australia in the year 2015. This has been found that in
the year 2015 the trips increase by 7% from the year 2014 (D'Mello, 2016). The market research
reflects that accommodation continues to increase domestic tourism products with approx. 10%.
The caravan and campervan registrations continue to increase which will bring the major rise in

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demand. Thus, this factor will influence the company and the company will offer high quality as
well as a technology-equipped caravan. The rise in the demand of the company will offer a good
profit and with this, the position of the company will improve.
SWOT analysis
The analysis of SWOT will help in assessing the current key products or services and major
markets for strengths, weaknesses, opportunities, and threats (Bryson & Alston, 2011).
Strengths
 Stakeholder’s satisfaction: - Adventure Caravans operates the business effectively due
to which the company is able to attain the profit that helps them in offering good returns
to the owners of the company. Further, in the coming 3 years, the company will be able to
maintain a high profit with the rise in the industry (Grant, 2016). This will attract more
stakeholders and satisfy them that is one of the strengths of the company.
 Additional services: - Adventure caravan’s offer different additional services, which
majorly include in-house warranty, work with some major repairs and modifications in
the brand caravans. This is the strength of the company as it is considered as one of the
revenue streams for the company.
Weaknesses
 Lack of budget management: - In the present area, the company is growing which will
reduce the expertise in the budget. The company will surely face budget management, as
the company will grow in the Australian market (Baker, 2014).

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Opportunities
 Expanding the products in the market: - Adventure Caravans will have the opportunity
of expanding product ranges in near future, which can be done by enhancing the dealing
in, used Caravans.
 Expanding operations across the world: - Adventure Caravans will be able to expand
the business in the overseas market that will increase the revenue (Al-Turki, 2011).
Threats
 Oversupply of product: - This has been found that in the past 2 years that there are
several caravan manufacturers who closed due to an oversupply of production. This lead
to the rise in the flat pack vans which is a rise in a threat to the local industry in the near
future.
 Rise in competition: - In the near future, this has been found that caravans are expected
to grow for the next 10 years which leads to a rise in competition. The major competitors
who are present in the market include Aussie Wide Caravans, Compass, Majestic
Caravans, and many others. The number of competitors of the company will increase due
to which the company need to change the strategy that is a threat.
PEST Analysis
Political factors: - Political element majorly includes a change in rules and regulations within
the industry (Chernev, 2018). The regulations by the industry for the Aventura Company will be
increasing with the rise in demand that is an emerging threat. The regulations and rules related to
the weight within the caravans and change in road regulations for the vehicle will be one of the
factors. This might create effects on the future operations of the company.

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Economic factor: - The economic factor major includes GDP, purchasing power, inflation and
many others. In the year 2017, the GDP in Australia was worth of 1323.42 billion US dollars in
the year 2017 (Trading Economics, 2019). In the near future, it is expected to increase which will
increase the purchasing power of customers and will offer the opportunity to the company.
Social factors: - The social factors include the shift in the needs and desires of the customers
that are present in the market (Dawson, 2014). The changes in the needs of customers will arise
which can be related to technological up-gradation, modification, and customization that is one
of the emerging threat.
Technological factors: - The change in technology is one of the major threat as well as an
opportunity for the company (David, 2011). Adventure Caravans will make use of the updated
technology in forming the products that will offer the opportunity of an increase in sales. The
customer base gets affected, as they will be looking for the product. However, the emergence of
updated technology needs high capital that is a threat to the company.
The scope of Marketing Opportunities
Cost-Benefit Analysis
Cost-benefit analysis is a process that is used to analyse the decision taken by the company. This
analysis helps in determining the strengths and weakness of alternatives on the bases of benefits
attained by the company. In the next 3 years, it is essential for Adventure Caravans Company,
which helps them in evaluating the cost and the benefit that is attained by the company from the
opportunity (Boardman, Greenberg, Vining & Weimer, 2017). For instance; considering the
objective to extend the new distribution stores, the company expand the amount that is

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considered as a cost and in return, the company found the rise in 25% of revenue. In this case,
the amount of cost and revenue will be evaluated which will help in determining that the
company is able to get the benefit over cost or not. The company will make use of this method
which opportunity of the company and its analysis with the resources and capabilities that is
maintained by the company.
ROI – return on market investment
The ROI Stands for return on investment measures the gain or loss that is generated on an
investment, which is linked to the amount of money that is invested by the company. The
company will make use ROI with the help of the expected amount that will help them in making
effective financial decisions. This will help them to compare the profitability or efficiency
related to investment (Chen, 2019). The calculation of ROI includes the return of an investment
is divided by the cost of investment. The percentage reflects the benefit that is attained by the
company from the investment. The caravans market is increasing due to which the company will
invest in used car expansion and its product line which will offer the rise in revenue. Thus, this
will lead leads to a rise in revenue and offer the benefit of investment done by the company.
Industry Forecasts
The forecasting of the business industry that is Caravans is must be done by the company as it
provides insight for the market where they are performing business operations. The industry
forecast shows that the market of caravans is predicted to increase for the next 10 years.
However, the growth cannot be predicted as it depends on the advancement, which will occur
with time (Rothaermel, 2015).

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Formulate Marketing Objectives
Marketing Mix
Product strategy: - Product is one of the major elements of the marketing mix that shows what
the company offer in the market (Frynas & Mellahi, 2015). Currently, Aventure Company is
manufacturing and selling Caravans of different types. The company will follow the
diversification strategy in the near future, in which the company will bring the make the dealing
in used cars. In addition to this, the company will bring the technology aligned with the caravans.
The objective of the company for the next 3 years is to offer used car dealing facility with the
value-added products to the customers with the improved technology.
Price strategy: - The price that is presently kept by the company for the product is affordable
that is $30,000 to $70,000. The objective of the company is to increase the prices and to follow
the premium pricing strategy. However, in the near future, the price of the company will find a
large number of competitors due which they can keep the competitive pricing strategy. In this
strategy, the company will compare the prices from the competitors and they keep the prices.
Place strategy: - Place is the location where the company offer the products and services. The
company has its own manufacturing units that are present in Melbourne from where the
customers can make the purchase. In the near future, the distribution of products will increase
within the boundaries and in the overseas market. The objective of the company is to increase the
number of outlets that offer the opportunity for customers to find it easily accessible.
Promotion strategy: - Promotion strategy is used by the company with the motive to increase
the awareness about the brand in the market. Adventure Caravans promotions come from the
caravan and camping through adverts and advertorial in industrial publication. The company will

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promote the products with the help of social media and other tools related to marketing that will
help them in improving the brand awareness and position in the market that is one of the
objectives of the company.
Timeframes
Planning strategies Task allocation Duration (3 years)
Conducting market research Research and development 6 months
Analysing the needs of
customers
Analysis team 3 months
Evaluating the positioning Manager 3 months
Evaluating the factors that
affect a company
Manager 6 months
Forming marketing strategies
of product
Operation team 4 months
Forming marketing strategies
of price
Pricing team 6 months
Forming marketing strategies
of place
Distribution team 2 months
Forming marketing strategies
of promotion
Marketing team 6 months
Risk Management Plan
Risk identification Aventura caravans company might fact the risk of effective cost

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management in operations. In addition, the rise in technology updates is
also one of the risks that might be faced by a company that might affect
the customer base (Aven, 2012). Currently, most of the customer
demand for updated technology products.
Risk evaluation The evaluation of the risk can be done by evaluating by evaluating the
cost that is faced by the companies. In addition, the need of customers
for the more advanced products and lack of technology up-gradation
will affect the customer base with dissatisfaction.
Risk mitigation The effective appointment of the accountant will help the company to
mitigate the risk. Further, the instalments of the upgraded and advanced
system help the company in mitigating the risk of impact on the
customer base (Esteve-Pérez, Sanchis-Llopis & Sanchis-Llopis, 2010).

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Conclusion
In the end, this can be said that the report is based on identification of the strategic direction that
helps the marketing consultant in forming the marketing plan. Further, it include the review of
marketing performance of company that is supported with the tool like SWOT analysis and
PEST analysis, this will help in findings the factors that can influence the company. The scope
for the marketing opportunities of the company is evaluated with the help of ROI, cost benefit
analysis as well as industry forecasts. In the end, the marketing objectives of the company for the
coming years have been formulated with the help of marketing mix, planning matrix, which
shows the strategies, and risk management plan.

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References
Alkhafaji, A., & Nelson, R. A. (2013). Strategic management: formulation, implementation, and
control in a dynamic environment. New York: Routledge.
Al-Turki, U. (2011). A framework for strategic planning in maintenance. Journal of Quality in
Maintenance Engineering, 17(2), 150-162.
Aven, T. (2012). Foundations of risk analysis. New Jersey: John Wiley & Sons.
Baker, M. J. (2014). Marketing strategy and management. London: Palgrave Macmillan.
Boardman, A. E., Greenberg, D. H., Vining, A. R., & Weimer, D. L. (2017). Cost-benefit
analysis: concepts and practice. Cambridge University Press.
Bryson, J. M., & Alston, F. K. (2011). Creating your strategic plan: A workbook for public and
nonprofit organizations. New Jersey; John Wiley & Sons.
Caravan Links. (2019). Victoria Caravan Manufacturers. Retrieved from:
http://www.caravanlinks.com/caravan_manufacturers/australia/victoria.shtml
Caravan. (2014). Legal Requirements For Caravan Breakaway Systems In Australia. Retrieved
from: http://www.withoutahitch.com.au/caravan/legal-requirements-caravan-breakaway-
systems-australia/
CFI. (2018) 5C Analysis. Retrieved from:
https://corporatefinanceinstitute.com/resources/knowledge/strategy/5c-analysis-marketing/

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Chen, J. (2019). Return on Investment (ROI). Retrieved from:
https://www.investopedia.com/terms/r/returnoninvestment.asp
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19-billion-and-growing-20160722-gqbgp5.html
Esteve-Pérez, S., Sanchis-Llopis, A., & Sanchis-Llopis, J. A. (2010). A competing risks analysis
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Frynas, J.G. & Mellahi, K. (2015) Global strategic management. USA: Oxford University Press.
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Trading Economics. (2019). Australia GDP. Retrieved from:
https://tradingeconomics.com/australia/gdp