Strategic Marketing Plan for Disrupt Sports in the Australian Market

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This report provides a comprehensive marketing plan for Disrupt Sports, an Australian wholesaler of sports materials and equipment. It begins with an introduction highlighting the significance of strategic marketing in the modern business landscape. The report then conducts a thorough situational analysis, examining the political, economic, social, technological, environmental, and legal factors (PESTEL) impacting Disrupt Sports within the Australian market. Porter’s Five Forces analysis assesses the competitive landscape. A SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats. The report then moves on to market segmentation and positioning, defining the target market and developing a positioning statement. It outlines the company’s problem statement and sets three specific, measurable, achievable, realistic, and time-bound (SMART) marketing objectives. A detailed marketing mix strategy (product, place, promotion, and price) is presented. Finally, the report includes a campaign evaluation and budget allocation, including the timing of events, concluding with recommendations for improving the effectiveness of marketing strategies. The plan is designed to help Disrupt Sports enhance its market presence and achieve its business goals in the competitive Australian market. The report is a student submission available on Desklib, a platform providing AI-based study tools.
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Running head: MARKETING MANAGEMENT
Marketing Management
Name of the Student
Name of the University
Author Note
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1MARKETING MANAGEMENT
Table of Contents
Introduction:...............................................................................................................................4
Situational Analysis:..................................................................................................................5
Political:.................................................................................................................................5
Economic:..............................................................................................................................5
Social:.....................................................................................................................................5
Technological:........................................................................................................................6
Environmental:.......................................................................................................................6
Legal:......................................................................................................................................6
Porter’s Five Forces:..................................................................................................................6
Competitive Rivalry:..............................................................................................................6
Bargaining power of the Suppliers:........................................................................................7
Bargaining power of the Buyers:...........................................................................................7
Threat of New Entrants:.........................................................................................................7
Threat of Substitution:............................................................................................................8
SWOT Analysis:........................................................................................................................8
Strengths:................................................................................................................................8
Weakness:..............................................................................................................................8
Opportunities:.........................................................................................................................8
Threats:...................................................................................................................................8
Market Segmentation and Positioning:......................................................................................9
Positioning Statement:...........................................................................................................9
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2MARKETING MANAGEMENT
Problem Statement:....................................................................................................................9
Objectives:................................................................................................................................10
Marketing Mix Strategy:..........................................................................................................12
Product:................................................................................................................................12
Place:....................................................................................................................................12
Promotions:..........................................................................................................................12
Price:....................................................................................................................................13
Campaign Evaluation:..............................................................................................................13
Budget Allocation:...................................................................................................................14
Timing of the events:...........................................................................................................14
Conclusion:..............................................................................................................................15
References:...............................................................................................................................16
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3MARKETING MANAGEMENT
Introduction:
The significance of the scientific management of the industry operations is seen to
increase in a substantial manner in the modern world of business. The impact of the
globalization in the modern world of business is playing a significant role in minimizing the
market monopoly and under such situation, the threat faced by the established companies
from the part of the new entries, is posing some serious concerns for the business managers
of the established companies (Savrul, Incekara & Sener, 2014). Hence, the presentation of the
strategies such as the product development, development of the quality of the products along
with the application of the low pricing, is notably prominent amongst the companies. The
paper discusses regarding the business operations of one of the most reputed wholesaler of
sports materials and equipment in the Australian market named as Disrupt Sports.
The paper highlights the macro and micro environmental factors associated with the
business of the company and at the same time, the paper provides a critical examination of
the internal capability of the company. Other than this, the paper evaluates the target market
of the company and along with that, it also identifies the problems that the company is
expected to face in the Australian market in the year 2019. With a thoughtful understanding
of the weakness and strengths of the company, the paper includes the formulation of 3
marking objectives which are significant for the achievement of the company in conducting
an efficient business in the global market. Along with this, the paper provides significant
information regarding the strategy that the company employs in the effective management of
their marketing mix and for the effective implementation of the formulated objectives and the
marketing mix strategy, the paper provides important information regarding the allocation of
the budget. Along with the budget, the paper also includes the effectiveness measures and the
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4MARKETING MANAGEMENT
probable changes that have the potential to increase the effectiveness of the marketing
strategies and the plan.
Situational Analysis:
Political:
With a precise focus on Australia, it is visible that the nation is able to develop a
stable political environment and that is evident with the establishment of the rule of law from
the part of the government of the nation. Along with that, the mentioned nation is an integral
part of several business associations such as the World Trade Organization, G20, OECD and
Commonwealth of Nations (Wto.org, 2019). Apart from this, the success of the national
government in developing a strong bond with the neighbouring nations is also significant in
improving the stability of the political environment inside the organization. The stable
political environment of the nation has the capability to contribute in sustainable business
operations of the company.
Economic:
Considering the economy of the nation, the estimated total GDP (PPP) of Australia is
observed to be approximately 1.313 trillion US dollars and the per capita value of the GDP
(PPP) is 52,191 US dollars in the year 2018 (Tradingeconomics.com, 2019). On the other
hand, the estimated total GDP (Nominal) of Australia is approximately 1.500 trillion US
dollars and the per capita value of the GDP (Nominal) is 59,655 US dollars (Ceicdata.com,
2019). Hence, it is obvious that the Australian citizens have the financial capability to
conduct repetitive purchases of the products and services that the company offers.
Social:
With a detailed emphasis on the Australian society, it is obvious that majority of the
citizens are sports lovers and the participation of the individuals in the sporting activities are
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5MARKETING MANAGEMENT
significantly prominent. Australia participates in various sporting events such as the
Commonwealth Games and Olympic Games (Gc2018.com, 2019). Along with this, the
nation is observed with the prestigious world cup of cricket for most number of times. In
addition to this, the country is in a good position in the football ranking as well. Hence the
preferences of the citizens in participating in the sporting activities is pretty prominent.
Technological:
The score of 0.939 in the aspect of Human Development Index states considerably
high life expectancy, literacy rates and per capita income indicators (Hdr.undp.org, 2019).
The statistics describe the high acceptance level or the ability of the customers in
experiencing the technological advancement and the incorporation of the technology in the
products and services of the company.
Environmental:
Considering the environmental aspect, the company has the necessity to make sure
that their business operations and the activities are perfectly in alignment with the
governmental guidelines regarding the management of the environmental balance and at the
same time, the company requires to source raw materials in an ethical and eco -friendly
manner.
Legal:
The company is in need to make sure that they follow the labour and employment
legislations of the national government. The effective implementation of the Fair Work
Legislation, Common Law Regulation and the Privacy Act 1988 is significant for the success
of the company in managing their human resources in an efficient manner (Fairwork.gov.au,
2019).
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6MARKETING MANAGEMENT
Porter’s Five Forces:
Competitive Rivalry:
Though the product and services offerings of the company is unique, however, it faces
a serious level of competition from the part of the competitor groups such as the Hart Sports
Australia, World of Sport and Gabba Sporting Products (Gabba.com.au, 2019). The main
factors that influence the competition are observed to be the pricing of the products, the
excellence of the products and the capability of the companies towards scheming the products
in agreement to the requirements of the customers.
Bargaining power of the Suppliers:
The Australian sporting goods manufacturing market is observed to have substantial
number of suppliers that have the capability to supply the accurate quantity of raw materials,
at reasonable prices and the most important fact is that the suppliers have the capability to
supply the materials on time. Hence, the company experiences low bargaining power of the
suppliers.
Bargaining power of the Buyers:
The Australian sporting goods manufacturing market is observed to have substantial
number of companies capable of producing optimum quality of the products. At the same
time, majority of the companies have the skill of applying low prices for their goods and the
combination of which, increases number of options available for the customers to conduct
their purchase. Hence the company is expected to face high bargaining power from the part of
the customers.
Threat of New Entrants:
Though the growth of the industry is significantly high and that is pretty visible with a
revenue of 1,320 million US dollars in the year 2019 with a year on year increment of 5.7%
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7MARKETING MANAGEMENT
(Statista.com, 2019). At the same time, the number of users increased to 3.3 million in the
year 2019 which has a year on year increment of 15.4% (Statista.com, 2019). Having said
that, the considerable amount of investment for the infrastructural set up and the intense
competition in the mentioned market are observed to be main concerns for the business
managers of the new organizations in entering the market.
Threat of Substitution:
As mentioned earlier, the competitor organizations such as the Hart Sports Australia,
World of Sport and Gabba Sporting Products are seen to have the expertise in applying the
low pricing for their products and services (Wos.com.au, 2019). At the same time, the senior
administration of majority of the mentioned companies are observed to be inclined towards
continuously improving their quality. Hence, the company is expected to face a high threat of
substitution in the industry.
SWOT Analysis:
Strengths:
Unique design of the products and services (Disruptsports.com, 2019).
The ability to acknowledge the preferences of the customers.
Weakness:
The pricing of the services and products of the company is a major weakness for the
company going forward.
Opportunities:
The company has the capability to increase the sales of their products with
occurrences of repetitive training activities for their employees.
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8MARKETING MANAGEMENT
The company has the capability to apply low pricing for their products and services
with the achievement of required restructuring in the supply chain of the company.
Threats:
The increasing labour and employment charges is a significant threat for the
sustainability of the business operations of the company (Wilkins, 2015).
At the same time, the environmental concerns with some of the adventure sporting
activities of the company is also a major menace for the company.
Market Segmentation and Positioning:
Considering the market segmentation, it is evident that the individuals of the youth
generation are more focused towards the participation in the sporting events. Having said
that, the interest of mid age and senior citizens of Australia is also prominent with their
participation as viewers in various sporting events. Under such situation, the company must
target the customers belonging the age group of 18 to 45 years. The participation of both
male and female individuals in the sporting activities of the nation is significantly visible and
under such situation, it is important for the company to make sure that they target the
customers of both the genders. Considering the segmentation on the basis of the income, the
company is expected to target the customers with an annual salary of 85 thousand Australian
dollars.
Positioning Statement:
The Company wants to become a pioneer organization in celebrating the interest of
the Australians towards the sporting activities with the products and offers that are solely
designed for the purpose. The company also has the objective of delivering optimum quality
of the products too their customers.
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9MARKETING MANAGEMENT
Problem Statement:
Considering the findings of the situational analysis and customer examination of the
Australian market in the year 2019, it is visible that the company has the possibility of facing
intense rivalry from the part of competitor administrations in the aspect of the pricing of the
products. At the same time, the company needs to improve the marketing and promotional
activities of the products and services that they are offering to their customers. Considering
the importance of the efficient marketing and promotional activities in attracting a larger
number of customers, majority of the companies operating in the Australian sporting goods
manufacturing industry are observed to be inclined towards the effective management of the
marketing and the promotional activities. Hence, the company has the necessity to improve
the awareness amongst the customers regarding their product and service offerings.
Objectives:
Specific Measurable Achievable Realistic Time-based
The company
needs to
improve their
ability in
applying the
low pricing.
The success of
the company in
achieving the
mentioned
objective can be
assessed
through the
evaluation of
the pricing of
the products in
comparison
The company
has the
possibility of
achieving the
mentioned
objective
through
restructuring
their supply
chain in an
efficient
The success of
the company in
restructuring
their supply
chain for
sourcing the
products at
reasonable
prices, makes
the achievement
of the objective
The objective is
expected to be
completed
within 15
weeks.
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10MARKETING MANAGEMENT
with the
competitor
organizations.
manner. pretty realistic
for the
company.
The company
needs to
improve their
efficiency in
online and
offline
marketing and
promotions of
their products.
The success is
expected to be
measured with
the evaluation
of the increment
in the number
of the
customers,
interacting with
the company
regarding the
products and
services of the
company.
The increased
presence of the
company in
various social
media and
online platforms
along with the
newspaper and
magazines
makes the
objective
achievable for
the company.
The success of
the company in
interacting and
communicating
with the
customers
through the
social media
and offline
channels makes
the objective
realistic for the
company.
The objective is
expected to be
completed
within 12
weeks.
The company
must increase
the number of
the store outlets
as that will be
significant for
the company in
increasing their
The company
has the
capability to
measure the
success with the
number of
customers
visiting their
With the strong
financial
support from
the part of the
shareholders of
the company,
the objective is
certainly
The success of
the company in
increasing the
number of store
outlets has the
potential to
improve the
ability of the
The objective is
expected to be
completed
within 24
weeks.
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11MARKETING MANAGEMENT
sales nad
number of
customers as
well.
store outlets. achievable. company in
increasing their
number of
customers and
sales of their
products.
Marketing Mix Strategy:
Product:
The company is observed to have the expertise of selling a range of products of
various sporting categories such as Water Sports, Skateboards, Snowsports, Bikes, Electric
scooters, Electric skateboards, Yoga, Golf, Cricket, Hockey, Fitness, Tennis and Leisure
sports (Disruptsports.com, 2019). The diversified product and service offerings from the part
of the company is significant for the success of the company.
Place:
The company is observed have their operations in the different nations which are
Australia, USA and UK (Disruptsports.com, 2019). The company follows both online and
offline operations in the mentioned nations and that contributes to the success of the company
in achieving a larger number of customers and in increasing their sales. The availability of the
store outlets is crucial for the company in increasing their ability to provide the hands on
experience to their customers for their products.
Promotions:
The company has the expertise of conducting their marketing and promotions through
various social media platforms such as the Facebook, Instagram, YouTube, Pinterest and
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12MARKETING MANAGEMENT
Twitter (Disruptsports.com, 2019). At the same time, the company communicates with their
customers through the e- mail subscriptions. Apart from this, the creative advertisements in
various national, regional newspapers and business magazines are seen to be crucial for the
success of the company in marketing their products and services.
Price:
The company is observed to apply the price skimming strategy for their products and
services. The products and services of the company suits the mentioned pricing strategy in a
notable manner.
Campaign Evaluation:
Considering the objectives and marketing strategies of the company, the specific
effectiveness measures are expected to be the ability of the company setting up prices that are
2% low in comparison to the other competitor organizations. The company is expected to
face difficulty in applying low prices and under such situation, the contingency action will be
the achievement of larger number of suppliers.
For the increment of the store outlet objective, the effectiveness measure will be the
ability to develop 5 store in each of the metropolitan cities of the three nations in which they
operate. In response of the difficulty with the infrastructure, the contingency action is
expected to be the bulk investment from the part of the shareholders for the infrastructural
development.
Considering the objective of improving the marketing and promotions, the
effectiveness measure for the company is expected to be the daily posts from the part of the
marketing team of the company in various forms of social media platforms where the
company is currently present. The contingency action for the same will be the much required
improvement in the efficiency of the marketing team when it comes to interact and
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communicate with the customers and if needed, the company must introduce relevant training
and developmental sessions for their employees responsible for the marketing and
promotions of their products and services.
Budget Allocation:
Campaign Quantity Per Unit
Cost
Total Cost
Banner ads 40.00 A$250.00 A$ 10,000.00
Newspaper ad 100.00 $60.00 A$ 6,000.00
Social media marketing A$ 80,000.00
Online marketing A$ 50,000.00
Total A$ 146, 000
(Source: created by the author)
Timing of the events:
Actions Ja
n
Fe
b
Marc
h
Apri
l
May Jun
e
Jul
y
Au
g
Sep
t
Oc
t
No
v
De
c
Social media
marketing

Online marketing
Banner ads
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14MARKETING MANAGEMENT
Newspaper ads
(Source: created by the author)
Conclusion:
On a closing note, it is noticeable that the Australians have considerable amount of
preferences towards participating in the sporting events and under such situation, the
company is expected to achieve a rapid growth in a comparatively easy fashion. However the
incapability of the company in managing the impact of the cost leadership created by the
competitor organizations, lack of marketing and promotional activities and the insufficient
number of store outlets are considered to be the major obstacles for the company in refining
the sustainability of their business. The success of the company in improving the
sustainability and growth of their trade is observed to be largely dependent on their ability in
applying the hybrid focus strategy, in improving the efficiency of their marketing team and in
developing larger number store outlets across the nation.
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15MARKETING MANAGEMENT
References:
Ceicdata.com. (2019). Australia Nominal GDP [1959 - 2019] [Data & Charts]. [online]
Available at: https://www.ceicdata.com/en/indicator/australia/nominal-gdp
Disruptsports.com (2019). Disrupt Sports - Design Your Own Sports Gear | Surfboard,
Snowboard, Skateboards. Retrieved 18 September 2019, from
https://www.disruptsports.com/
Fairwork.gov.au (2019). Welcome to the Fair Work Ombudsman website. Retrieved 18
September 2019, from https://www.fairwork.gov.au/about-us/legislation
Gabba.com.au (2019). Gabba Sports Netting and Surfaces. Retrieved 18 September 2019,
from https://www.gabba.com.au/
Gc2018.com (2019). Gold Coast 2018 | Gold Coast 2018 Commonwealth Games. [online]
Available at: https://gc2018.com/
Hdr.undp.org (2019). Retrieved 18 September 2019, from
http://hdr.undp.org/sites/all/themes/hdr_theme/country-notes/AUS.pdf
Savrul, M., Incekara, A., & Sener, S. (2014). The potential of e-commerce for SMEs in a
globalizing business environment. Procedia-Social and Behavioral Sciences, 150, 35-
45.
Statista.com (2019). Sports & Outdoor - Australia | Statista Market Forecast. Retrieved 18
September 2019, from
https://www.statista.com/outlook/259/107/sports-outdoor/australia#market-
globalRevenue
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Tradingeconomics.com. (2019). Australia GDP per capita PPP | 2019 | Data | Chart |
Calendar | Forecast. [online] Available at:
https://tradingeconomics.com/australia/gdp-per-capita-ppp
Wilkins, R. (2015). The household, income and labour dynamics in Australia survey:
Selected findings from waves 1 to 12. Melbourne: Melbourne Institute of Applied
Economic and Social Research, The University of Melbourne.
Wos.com.au (2019). World of Sport. Retrieved 18 September 2019, from
http://www.wos.com.au/
Wto.org. (2019). World Trade Organization - Global trade. [online] Available at:
https://www.wto.org/
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