Analyzing Marketing Strategies: Aussie Toy Limited Case Study Report

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Case Study
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This case study analyzes the marketing strategies of Aussie Toy Limited, a toy manufacturing company aiming to expand its market share. It begins with an introduction to the importance of marketing and an overview of Aussie Toy Limited's business, market position, and objectives. The case study then delves into internal and external situation analyses, including market size, competitor analysis, and consumer behavior. It explores the application of SMART objectives, segmentation, targeting, and positioning strategies. The marketing mix (product, place, price, and promotion) is discussed, along with various pricing policies and promotional methods. The study concludes by highlighting key brands and promotional approaches used in the toy and game industry. This case study provides a detailed overview of marketing concepts applied to a real-world business scenario.
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CASE STUDY
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Table of Contents
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
TASK 2.................................................................................................................................................5
TASK 3.................................................................................................................................................7
TASK 4.................................................................................................................................................7
TASK 5 ................................................................................................................................................7
TASK 6.................................................................................................................................................8
TASK 8.................................................................................................................................................9
CONCLUSION....................................................................................................................................9
REFERENCES...................................................................................................................................10
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INTRODUCTION
Marketing is the most prime factor for the success of the business. In it various techniques
are clubbed, along with this the promotional tools are also having a vital role in attracting the
customers and this can create a benchmark for the entity in the market (Chen and Xie, 2008). The
report is based on Aussie Toy Limited Company, which is operating its business activities in
manufacturing of the toys and online and video games. The corporation has a plan to extend its
market share and for this it has made the marketing strategies so that it can enhance its sales and
revenues and people can be motivated to purchase the goods from the company. In the study the
marketing objectives, segmentation, positioning, targeting, marketing mix, and promotional
activities for the business are described. The purpose of the report is to identify the role of key
elements which are important for the developing of market share and increasing the sales.
TASK 1
The Aussie Toy Limited Company is a manufacturing entity which is having its business in
selling and distribution market. The situation analysis is made of two elements in it the external and
internal situation analysis is conducted. The internal analysis is consisted of the structure of the
company, its core strength and performance.
Structure: The annual industry growth rate of the industry is 4%. Toys and games market
segment in Australia is valued at US $538 million in 2010. Along with this the population of below
15 age is almost four million. Aussie Toy Limited has captures more than 27% market share in toys
industry.
Strength: The core strength of the entity is its unique production of the toys which is to be
distributed and sold in the market. It has an excellence in supply of the products as per the need and
requirement of the customers. Apart from this the entity is working since very long time in market
so it has a great bran image in the market. Its fast selling products and tentative prices are also
helpful in beating the rivalry in the market.
It is selling the toys in the categories of educational toys in timber or plastic, quality plush
toys with faces, dolls with porcelain heads and complex clothing and theme toys. Future growth in
context of the core competencies can be seen in current offering of toys with the upgraded
technology.
External Analysis: The company has to evaluate the factors related with its external market
such as the threat of competitors in toy industry. Along with this the governmental policies, client's
values, belief, choices, taste, preferences and the technological development is considered in it.
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Opportunities
Incresing number of the competitors and rivalry
are the prime awareness of the market.
New regulations and law will give ample
amount of ways to enhance the business
channel.
Threats
new rivals with amount of resorces reduce the
present market share perhaps with the good
resorces could raise the standard of products
Strength
The core strength is its brand image and its long
time services.
Weakness
The major weakness is less resources, technical
problems and diversification strategies.
Motives of the end consumer target group for the company: End users are the ultimate consumers
usually children are deemed to be covered in this group of consumers there are the following
motives given as below.
Desire: Purchasing when price falls.
Vanity: Acquiring costly items.
Fashion: Attraction towards the fresh stocks.
Love and affection: Particular product and services.
Brand love: showing mind set.
Categories of the toy market:
Construction Toys – Scale modelling
Creative Toys- Puzzles
Dolls: Toy Instruments
Educational Toys- Toy Robots
Toy figurines- Toy weapons
Mechanical Toys- Toy vehicles
Electronic Toys- Transforming Toys
Art and craft toys- Puppetry
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Toy categories:
Active play Art& Craft Baby Toys and Gifts
Games Gear & Apparel Gift Certificates
Kits, planes and Rockets Magnets& Magnetism Maker & DIY kits
Office & Desk Toys Organic & Green Toys Outdoor Toys
Plush Puzzles RC & Electronics
Famous specified brands who are selling toys at large in order to satisfy children's toys at
large in order to satisfy children's toys need in the given market segment.
Zapf Creation- Baby Born- white
Play skool- Teletubbies taking
play skool- assorted figure
Fisher Price- FP dream doll House
Parke Bros- Monoply in all the toys
Tyco- SS Tickle
Hills industry- 4 unit lawn gym
The customer target group can be captures by three motives. This can enhance the sales of
the organisation. The another is the good will of the company as if the entity is working for the
betterment of the corporation then providing goods and services in the best manner it can establish
the good will of the company. If all these motives are approached then the corporation can be able
to capture the market. Categories of the Australian toy markets can be varied as per the market
situation. The prime element is that the toy businesses have to take license for sales of traditional
toys and games. Internet retailing can modify the landscape of the games and toys on Australia. The
Toys and games are supposed to set the stronger value performance.
TASK 2
Aussie Toy Limited Company is operating in the field of the manufacturing and production
of the toys and games. The entity can use SMART approaches for fulfilling the objectives of the
organisation.
S Specific
M Measurable
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A Achievable
R Realistic
T Timed
S denotes the specific. It means that the entity has to determine its goals specifically, there
should be some specific target which can easily be approached (Jones and et.al. 2008).
M refers for measurable, the corporation can decide the targets in such manner that they can
be measured and it can be identified that at what level they have approached and what are
the remaining part which is still to be obtained.
A refers achievable it refers that the targets should be achievable, it means that the company
should determine those targets which can be approached and attained easily.
The another element is R, it describes that the targets and objectives which have been set by
the organisation should be relevant and can be related with present situation of the business.
T is the last element which describes that the, objectives which have been set by the
organisation must be time bounded so that they can be approached in a particular time
duration.
Thus, in above mentioned way SMART approach is described in the context of Aussie Toy
Limited Company. The entity can have three prime objectives which can be attained by using
SMART approaches these are:
1. To grab the market is the fist objective which can be attained by using SMART approach.
2. Customer Satisfaction is the another, goal of the company.
3. The another is to increase the sales and profits.
Thus, the company can achieve these objectives by using the SMART approach. And it has
to work for it and has to utilize the resources in optimum manner.
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TASK 3
Segmentation: It is a term which describes that the market is divided into sub parts as or the
needs, taste and preferences of the customers. It is the process in which the company can divide the
whole market and then can provide the products and services as per the gender, age and taste. It is
very important for the company to distribute the market so that it can provide the services
accordingly (Shank and Lyberger, 2014).
Demographic Plan
In it the market is sub divided in variables such
as age, gender, level of education and perceived
culture. Aussie Toy has to consider various
choice of action
Geographical Plan
In it the enity has to divide the market as per the
geographical area. Such as where the demand of
the toys is high the enity will try to establsih the
business there.
Targeting: It denotes a group of people who are likely to buy the products and services of the
organisation. A target market share a group of consumers who are having a same state of income,
age, sex and lifestyle are willing to purchase the goods of the company. The entity can focus on
them so that they can be approached and revenue can be exceeded.
Positioning: It refers a brand which can be set in the mind of the consumers. It is the effort
made by the organisation to influence the customers by establishing a brand or product related
perception in the minds of the customers.
TASK 4
Marketing mix are having vital role in selling the products and services. These are product,
place, price and promotion. In it the product defines that the entity has to sell the products which
are having a great quality. Price describes that the value which is determined for the products and
services must be proper and adequate (Day, 2011). Place describes that the products and services
must be provided at all those places where the distribution can be done as per the need and
requirement of the customers. Promotion is the last element of this marketing mix which describes
that the entity must use the sales promotion activities to enhance the sales of the entoty by this the
people can be motivated to purchase the things and services which are being sold by the
corporation. In it the company can use all the resources so that the optimum balance can be made
and ion its sales and revenues. So the role of marketing mix is very high in enhancing the sales of
the entity.
TASK 5
The company can use the pricing policies. There are three pricing policies are described as
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under:
Cost Based pricing: It includes the determination of all fixed and variable costs with a
product or services. And at last the profit margin decided by the management and is inserted in the
total cost. The goal of this approach is to cover all costs incurred in producing the goods and
services so that a target level of profit can be achieved (Shani and Chalasani, 2013).
Value Based Pricing: this term explains that the value of a product is determined by the need
and requirement of that product. It should not be valued as per the basis of the cost, rather the need
and demand of the product can be evaluated by determining its requirement in the market.
Demand Based Pricing: It clears as its name is, as it helps in determining the price of the
products as per their demand in the market. If the demand is high the entity can avail high price and
if the demand is low the company can avail low price of the products and services.
Thus, in above mentioned way some suitable techniques of the pricing policy are described.
If the management of Aussie Toy Limited Company, give its approval then the entity can have any
policy for determining the price. This can be decided as after confirming the need and demand of
the product in the market (Chang, Park and Chaiy, 2010).
TASK 6
The two key brands are The Wiggles and Bing. These are the most popular brands which are
providing the services in toys and games zone (Goi, 2009). The methods of promotion which can be
opt by these industries are online and offline mode. In online method the enities can use the internet
so that the promotion can be done. In the offline mode the corporation can use the advertisement,
free sample and individual promotion. By this the people can got to know about the policies and
terminologies of the entities. They can approach the organisation and this can increase the sales of
it.
One of the most popular brand is The Wiggles, it is operating the business activities in toys
segments. Marketing mix which can be used by it are product, price, place and promotion. As far as
products are considered the entity can use quality goods so that they can not harm the customers
and children (Keller, Parameswaran and Jacob, 2011). Price describes that the value of these goods
can be set reasonable so that any customer can avail the toys. Place explains that the entity has to
sell its products in the regions where the demand is much higher. In those places the promotional
activities can be used in the most effective manner. Promotion is the last strategy of marketing mix,
to make people ware is very important so that they can approach the company. By using the latest
promotional techniques such as templates, hoarding and free sample the entity can make attract
more customers. Thus, in above mentioned way The Wiggles can use marketing mixs.
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TASK 7
The company can determine its promotion strategy so that the sales of the corporation can be
increased. In it the entity can use some tools and techniques which are most suitable for it. Along
with this the company can opt the strategy of advertising of the products and services so that people
can be aware about the products and services of the entity (Kotler and Armstrong, 2010). It is very
important for the company to use an appropriate tool for promoting its products. The company is in
the field of toys and games for the children so it can promote these items by giving or providing
free samples for it. If the free samples can be provide then the people will attract towards the
services of the entity and they will be willing to buy the products and services. The entity can use
online and offline mode of promotion. In the offline mode it can appoint some sellers who will be
selling the products and in online the goods will be sold by online measures. By this the sales of the
entity can be increased. This can be helpful in developing the positioning and segmentation of the
market. Along with this targeting can be enhanced by using the promotional activities.
TASK 8
After approval of the pricing and promotional strategies, the company can collect the data
from the market so that it can get to know about the latest trends and techniques (Keh, Nguyen and
Ng, 2007). Along with this these tools can be helpful in assessing the evaluation of the performance
of the sales target and motives which have been determined by the organisations. The entity can use
online and offline mode to collect the data. It can organise a survey so that the feed back from the
customers can be obtained. On the basis of this, the evaluation can be done about the products and
services which are to be sold in the market. This can be beneficial for the entity to collect the data
and information so that it can avail a proper information about the market and its trends. It is very
important for the entity to know about the key elements which are having influence on the
marketing strategy of the corporation. By gathering the data form the market the company can
determine the appropriate pricing policy for it. Along with this it can use the promotion techniques
also as per the suitability of the consumers. Thus the corporation can gather the information and can
use this data in analysing its pricing and promotion strategy. This can lead the entity in getting the
ultimate objectives of it.
CONCLUSION
In the given report role of marketing strategies and their methods are described. Marketing
is very important for the succes of the business. Aussie Toy Limited Company is a manufacturing
unit and is providing its services in the kids toys and games segment. It can use the various
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marketing mix methodologies and policies so that the customers can attract towards it and it can
increase its sales. Thus the report concluded that to know the market and evaluate the promotional
strategies can be advantageous for the corporation in achieving the growth and success.
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REFERENCES
Books and Journals
Chang, W., Park, J. E. and Chaiy, S., 2010. How does CRM technology transform into
organizational performance? A mediating role of marketing capability. Journal of Business
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Chen, Y. and Xie, J., 2008. Online consumer review: Word-of-mouth as a new element of marketing
communication mix. Management science. 54(3). pp.477-491.
Day, G. S., 2011. Closing the marketing capabilities gap. Journal of marketing. 75(4). pp.183-195.
Goi, C. L., 2009. A review of marketing mix: 4Ps or more?. International journal of marketing
studies. 1(1). p.2.
Gummesson, E., 2007. Exit services marketing-enter service marketing. Journal of Customer
Behaviour. 6(2). pp.113-141.
Jones, P. and et.al., 2008. Marketing and sustainability. Marketing Intelligence & Planning. 26(2).
pp.123-130.
Keh, H. T., Nguyen, T. T. M. and Ng, H. P., 2007. The effects of entrepreneurial orientation and
marketing information on the performance of SMEs. Journal of business venturing. 22(4).
pp.592-611.
Keller, K. L., Parameswaran, M. G. and Jacob, I., 2011. Strategic brand management: Building,
measuring, and managing brand equity. Pearson Education India.
Kotler, P. and Armstrong, G., 2010. Principles of marketing. pearson education.
Shani, D. and Chalasani, S., 2013. Exploiting niches using relationship marketing. Journal of
Services Marketing.
Shank, M. D. and Lyberger, M. R., 2014. Sports marketing: A strategic perspective. Routledge.
Verhoef, P. C. and Leeflang, P. S., 2009. Understanding the marketing department's influence within
the firm. Journal of marketing. 73(2). pp.14-37.
Online
Importance of Marketing Mix. 2016. [Online]. Availabile through:
<http://www.streetdirectory.com/etoday/importance-of-marketing-mix-cffpoo.html>.
[Accessed on 25th October 2016].
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<http://businesscasestudies.co.uk/portakabin/how-the-role-of-marketing-drives-business-
forwards/the-marketing-mix-product-and-price.html#axzz4O61nIiPL>. [Accessed on 25th
October 2016].
Why is a marketing mix important in business?. 2016. [Online]. Availabile through:
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