BSBMKG608 Develop Organizational Marketing Plan: Adventure Caravans

This project presents a strategic marketing plan for Adventure Caravans, covering the next three years. It analyzes the company's current performance, including its direct distribution channel, low product price strategy, and use of advertorials. The plan includes future strategies such as incorporating airbags and fiberglass for safety, transitioning to an indirect distribution channel, and adopting mass promotion tools like advertising and digital marketing. The report also includes a situation analysis, SWOT, PEST analysis, cost-benefit analysis, and risk management plan. The future positioning map indicates an improvement in quality with potential price increases due to rising raw material costs and interest rates. The project aims to set market objectives and improve the company's competitive advantage in the Australian caravan industry.

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

STRATEGIC PLANNING 8
 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