Marketing Strategies Report for New and Existing Businesses

This report analyzes various marketing strategies, beginning with an exploration of alliance marketing and providing business examples. It then defines market penetration, development, product development, and diversification. The report continues by examining relationship marketing in new businesses, franchises, and take-overs, including practical tools. It further explores how small businesses can combine concentrated, undifferentiated, and differentiated strategies, followed by a detailed explanation of differentiation marketing with organizational examples. The report also identifies and describes six common business-to-consumer marketing strategies, highlighting successful brands. Task 2 presents a case study of 'Nature Care Products,' including its vision, mission, target markets, services, SWOT analysis, and a report for the CEO, proposing market plan development to mitigate risks and improve market segmentation.

Task 1
QUESTION 1
Discuss the concept of alliance marketing and give two examples of businesses
that may form marketing alliances.
The term “alliance marketing” refers to an agreement between two or more
organizations or company in order to enter into a shared marketing strategy. It also
helps the organizations to promote concepts, services and the products on a shared
basis. This concept of alliance marketing can be applied to any kind of business,
whether big or small as long as the organizations find that they have a mutual goal. It
is similar to “joint venture marketing”, except that in case of alliance marketing the
organization does not require to create new brands in order to sell their products and
services. Alliance marketing is also used when the new companies in the
technologically advanced areas sell the concept of technologically on a joint basis.
The stakeholder can avail the most benefits as there is a common theme in the
practice of this type of marketing. There are different types companies who are
practicing or following this concept of marketing. Mostly the advertising companies,
the organizations who are involved in supporting the environmental and social causes
with joint initiatives practice alliance marketing. Some examples of alliance
marketing are Ford and Eddie Bauer, Spotify and Uber, Hewlett-Packard and Disney.
QUESTION 2
Describe each of the following terms in relation to marketing opportunities: market
penetration, market development, product development and diversification.
Market Penetration: The term “market penetration” refers to the selling of a product
or service in a specific market successfully. It is usually measured by the amount of
sales of the specific and existing goods and services in relation to the target market for
the same product and services.
Market Development: Market development is a strategy that helps in the identification
of the growth of a company or firm. This helps in the development of the new markets
for the products and services of the company. This strategy mostly targets on the
people or the group who are not the target for a specific product.

Product Development: Product development refers to the creating the same products
with some alterations such as addition of new and improved features and
characteristics to the product. It involves modification of the product or development
of a completely new product.
Diversification: It is a technique of risk management, which can be mixed with wide
varieties of investments within a group of financial assets such as stocks,
commodities, cash equivalents and the like. It helps in managing the risks elements
that are unsystematic.
QUESTION 3
Discuss a marketing strategy commonly used in new businesses, franchises and take-
overs. Give three examples of the tools a business might use with this strategy?
The relationship marketing strategy is commonly used in all types of businesses. It is
a form of marketing that is developed from direct responses of the marketing
campaigns that helps in the emphasis of retention of more customers as well as
providing satisfaction to them, rather than focusing on the sales and transactions.
The tools and strategies of the relationship marketing involves networking, satisfying
the customers and listening to the customers actively.
QUESTION 4
Give an example of how a small business could combine a concentrated
marketing strategy, an undifferentiated marketing strategy and a
differentiated marketing strategy all at the same time.
A small business can easily adapt these marketing strategies as these involves mass
marketing. A company who is making a specific product for the people belonging to
the lower, upper and middle class group, would be able to adopt differentiated market
strategy as they are addressing people from both the classes. The same company
follows concentrated strategy when they are campaigning for the products for a
particular class; the undifferentiated marketing strategy while they are campaigning
for the products that can be purchased by all the segments of society.
QUESTION 5

Outline the concept of differentiation marketing strategy and provide four examples
of how an organisation can make use of this type of strategy to stand out.
The differentiated marketing strategy is used when a company in operation are
eligible for creating or creates campaigns that have the capacity to appeal people in at
least two segments of the market or target groups.
QUESTION 6
Other than the strategies already mentioned, identify and describe a minimum of six
common business to consumer marketing strategies. Give an example of a stand out
brand/product or service that use each of the strategies well.
1. Brand Consistency: The same brand name and logo are to be used and the
company will be known for it. For instance the Coca-Cola Company uses that
same logo after so many years of foundations.
2. Creating Trust: A company needs to create trust among its customers. For
instance, Colgate is still operating in the market as it had created trust among its
trust.
3. Social Strategy: Most of the companies that have gained success are active on
the social media such as Starbucks.
4. Creating a movement: This involves the development of the products and
services of a company. For instance the most famous company Apple did not
succeed in a year. It had to develop its products and services.
5. Focusing on a single product: Most of the companies do focus on a single
product. It helps the company to stay focused in the market and help in the
improvement of the product if required. For instance, Whole Food Market in
America.
6. Products based on Story: The famous company, Nike offers the customers the
information that re beneficial for them and with a different kind of a twist. They
frame up stories and link them with the information they want to provide to their
customers.
Task 2
Vision of the firm

The vision of the firm is to be the leader of the market in which it is operating.
Mission of the firm
The mission Statement of Nature Care Products is to provide eco-friendly skin
care products for the people. They will provide a high quality and sustainable
products that are dermatological tested.
Target Markets
The target markets of the firm are the people belonging to age group of 25 to 55
years and the people who are involved in some kind of profession. These people need
to get out of their home regularly. The people of Australia are the main targets for the
products produced by the firm.
Services provided by the firm
The firm in discussion, Nature Care Products, helps the people of Australia by
providing skin care products that are made purely from plant extracts.
Nature Care Products is a cosmetic company, started by Mr. and Mrs. Smith, in the
capital city of Queensland, Brisbane in Australia. The company first commenced its
business in the year 1996 and has built a retail market for the beauty products,
especially the skin care products. They do produce eco-friendly and high quality
products that will be used for taking care of the skin and prevent it from further
damage. They have a wide range of products ranging from cleansing creams to
regenerating face washes. The target markets for the company are the working women
belonging to the age group of 25-55 years old. The main ingredients of the products
manufactured by the firm includes Shea butter which helps in the nourishment of the

skin. The products also include extracts from different plants and certain essential oils
that have regenerating as well as anti-inflammatory properties. Certain products of the
company also have extracts derived from green algae which help to heal the damaged
skin and hydrate them as well. Most of their products have been produced in such a
way so that they suit all the types of skin- ranging from normal to oily and mixed skin
types. The cleansing creams produced by the company have dual purpose of use- it
can be used for the mature skin of the adults that will clean the skin from dirt and
pollution and can also be used as a baby cream as well. The company has successfully
established its financial position in the market that has sales of 1.65 million of
Australian dollars and with a profit of 1.2 million Australian dollars. The company
has a budget of around 150,000 Australian dollars in the last financial year and is
planning to become successful even in the future. The chief competitors of the
company are Botani and Jurilique.
The cosmetic market in Australia faces several ups and downs in the market. While
the sales were really affected while the whole country faced economic downturn, the
cosmetic market kept up with their sales. This is due to the fact that there is
continuation and growth in the usage of the cosmetic products both by the men and
women in the whole country. High income of the people, desire to look and feel the

best in terms of beauty, availability of new markets and access of the consumers at
the bottom line of the pyramid are some of the merging factors that has driven in the
successful growth of the cosmetics market in Australia. The main challenges of the
market include the slowdown in the economy of the country, the high saturation of the
markets and lack of ability for market segmentation insufficient nature of research
that is being conducted in the market.
There are various other companies that can enter the market. There are various
branded companies and luxurious products that are mostly capturing the market,
creating more competitors for the firm, Nature Care Products. Presently, there are
various other companies who are also involved in producing their cosmetic products
deriving the most useful extracts from the nature such as Botani, Jurilique and Aesop.
SWOT Analysis
Strengths
The main strength of the company is that they use the extracts from the plants in
order to manufacture their finished products. Besides, being eco-friendly in nature, the
products are skin friendly as well. These products do suit all the types of skins and
some can even be used as baby creams. The company sells its products mostly
through their own website, which involves less cost compared to outdoor sales.
Weaknesses
The prices of the products manufactured by Nature Care Products are slightly
higher compared to the products of its competitors. The products produced by the firm
are one-size fits for all skin types and have not customized their products according to
the particular skin types of the customers. The company operates mostly in its home
country and within Australia and has not explored the other markets of the world. The
firm is involved only in the manufacturing and selling of the skin care products and
does not involve in the production of cosmetics.

Opportunities
The company has the opportunity to explore the other markets of the world. They
can also develop their business in other countries of the world. The skin care product
arte used by all the people over the globe. They can also produce cosmetic products
which are also preferred by the people all over the globe. The firm needs to produce
skin care and cosmetic products which are classified according to specific skin types.
Threats
The firm operates in the most competitive environment. There are other
companies as well, who produces their products in the similar ways as Nature Care
Products.
Report for the CEO
Dear Sir,
A recent study has shown that the most of the employees are of the view that the
current business is on a risk. The company wants to adopt new strategies and plans for
marketing and to eliminate the risk. For the same, we are cordially inviting you to join
our meeting and help us solve the problems that the company is currently facing along
with some tactics to eliminate the risk.
The report focuses on the development of the market plan for the products
manufactured by Nature Care Products. The company wants to develop their products
and make specific products for the specific skin types. There is only one kind of all
products that are available to the customers which is a one-size fit for all. The
customers want to choose the products according to their skin types and one product
cannot solve all the problems of all skin types. Moreover, the company also wants to
produce cosmetic products and have a good business in the market. The prices of the
products are also a bit higher compared to other competitors of the firm and most of
the customers are on a verge to save more money and do favour the products of others
due to low pricing strategy. With regards to the promotion of the products produced
by the firm, there is successful promotion in the websites and magazines. The firm
wants to increase their means of promoting their products through various

advertisements on the radio and television. The firm also wants to spread its operation
in the other countries of the world.
Yours Sincerely,
Nature Care Products.

Marketing Strategies
Product
The products of the firm include different types of skin care products. Among
these there are cleansing cream, face washes, moisturizer, skin serums and toners. The
products are made from different extracts of the plants so that they are gentle on the
skin of the customers.
Price
The firm has adopted the pricing strategy keeping in mind the economy of the
country. The prices of the products are slightly higher as compared to the products
manufactured by its competitors.
Promotion
The firm carries on the process of promotion through the means of the website of
their own and through the pamphlets that are available in the nearby shops.
Place
The products are available on their websites and the customers need to order
them through the means of internet on their website. The products are then delivered
to the addresses of the customers by the delivery persons appointed and hired by the
firm.
People
The firm consists of the CEO, taking care of the business as a whole, the
operations manager who manages the production and sales of the products. Besides,
there are sales manager who is responsible for managing the sales of the firm,
marketing manager who looks after all the needs and the strategies of marketing, five
customer sales officers who helps the customers with their purchases and deliveries,
and three administration staffs looking after the overall administrative functions of the
firm.
Process

The products of the firm are produced in such a way so that there is minimum
wastage. The effective management of the firm has also led to decline in the cost of
production.
Identification of the competitors
The firm has a lot of competitors and survives in the most competitive markets.
There are various companies producing the same products and in the similar ways. It
has often been noticed that the price of the goods produced by other companies are
less than the company in discussion, Nature Care Products.
Report on marketing tactics for each of the identified strategies including:
 An explanation of marketing tactics and rationale for such:
The marketing tactics are the strategic actions which help in directing the promotion
of the deliverables of the business organizations with the aim of influencing the
marketing goals of the company. NatureCare could have opted advertising. The
advertisements could be given in print media, television, magazines and social media
(Small Business, 2015). Advertising could help the mass communication of the
marketing contents of the brand to the target segment of customers. The promotional
activities could include social media promotion as it is highly popular these days.
NatureCare could also implement advocacy where it would make its customers or
fans to share positive emotion to the brand or its deliverables with the others so as to
influence the target audience (mindwhirl, 2018).
 Timing of the marketing strategies, staff roles and responsibilities and
costs involved.
The timing of the marketing strategies and the staff roles and responsibilities are
discussed below:
The advertisements would be commenced in the television, radio channels,
newspapers and magazines within the coming 6 months. The marketing executives
would be contacting the advertisement media to circulate the advertisements in the
proposed media channels. Here a cost of about AUD 500,000.

The social media advertisements would be started within one month starting from
introduction of a Facebook page, Twitter and Instagram account where the
deliverables of the brand would be discussed and explained intricately and the main
features of the products. Advertising videos would be made viral on the social media
platform. It is comparatively less expensive tactics. The cost involved is expected to
be AUD 120,000. Some of the marketing personnel along with the Information
Technology team members would be constantly tacking the progress of the social
media marketing strategies and they could interact with the target audiences through
the Facebook, Twitter and Instagram pages.
 Recommended coordination and monitoring mechanisms that will be
used to ensure that the marketing tactics are implemented as required
and according to timelines.
 Marketing managers have to provide proper training to the marketing teams so
that they carry on with their tasks effectively.
 The progress of each of the marketing strategies has to be tracked on regular
basis.
 The marketing strategies need to be evaluated and compared against the
timeline.
 The managers and team leaders have to discuss with the members of the teams
about the issues they are facing or the progress they are witnessing and try to
identify the gaps on regular basis may be weekly meetings are needed to be
held.
 The cost has to be monitored.

 The sales generated after the implementation of the marketing strategies have
to be monitored.
 Returns of sales have to be identified and monitored regularly.
 Cost benefit analysis can be conducted.
 The feedback of the customers has to be tracked and analysed (Kauffman
Entrepreneurs, 2007).
 How the proposed marketing tactics are achievable within the available
budget and staff.
The proposed marketing tactics are achievable within available budgets and staffs if
proper planning is done. The plan is needed to be executed effectively. The plan is to
be prepared after analysing the core resources of the organization. Regular monitoring
and evaluating the progress could also help the proposed marketing tactics to be get
achieved within available budget and staff (Adams, 2018).
 Legal and ethical issues that need to be considered in using the marketing
tactics proposed and how you have ensured these issues are addressed.
The marketing tactics have to be planned within the legal and ethical codes of
business. The legal framework is to be maintained and complied by the marketing
managers and the executives. The management has to check the legal and ethical
compliance and if any loophole is identified then that has to be addressed on
immediate basis.