Marketing Management Report: Analysis of Family Caravan's Strategies

This report delves into the marketing strategies of Family Caravan, a travel technology company specializing in family caravans. It examines the company's service brand positioning, targeting the upper-middle-class segment with innovative, low-priced products. The report analyzes market leaders in the caravan industry, highlighting the dominance of Chinese imports and the increasing demand for recreational vehicles. It outlines the consumer adoption process, emphasizing the use of digital and traditional marketing to increase awareness and drive product adoption. Furthermore, the report details the company's competitive pricing strategy, aiming to offer affordable innovative technology. The conclusion reinforces Family Caravan's commitment to providing luxurious, flexible travel solutions and leveraging competitive pricing to gain market share in the booming family recreational vehicle market.

Running head: MARKETING MANAGEMENT
Marketing management
Name of the student
Name of the university
Author note

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Introduction
This study builds up on the previous part of the assignment and identifies the service
brand positioning, market leaders, consumer adoption and pricing strategy of the new
venture, Family Caravan. Family Caravan is a travel technology company which focuses on
providing best travel vehicles for the consumers in the market. The business offers services to
varieties of exotic locations all over the world and would help consumers visit locations with
ease. Family caravan provides the consumers a means of visiting places that they have never
been before and stay in a luxury caravan away from the population. These family caravans
have luxurious facilities and helps the family carry their home with them. It provides the
consumers with the flexibility of choosing the location of their stay without putting much
thought as they have the access to all the facilities they require while they are at home.
Service Brand Positioning
Service brand positioning helps the companies in differentiation their personal
products to that of the rival companies in the market. In order to position their product
effectively, it is essential to understand the target market and the segmentation of the
consumers. In this study, the target consumers consist of the consumers having a family and
willing to travel to unknown places and go on road trips for gathering a new experience.
These consumers have an annual income higher than the average income of the general
population in Australia but does not belong to the premium segment (Punjaisri and Wilson
2017). These consumers belong to upper middle-class segment and does not have the
financial support to purchase a luxury caravan available in the market. However, the
company wishes to capture these segment that are willing to purchase a family caravan but
does not have the financial support to purchase a premium caravan. Therefore, in order to
differentiate themselves in the market, Family Caravan will position their product as
innovative at low prices. The company wishes to offer similar product as that of a luxury
caravan so they company will accommodate both innovative technology and low prices as the
key factors for differentiating themselves from the consumers in the market. Therefore, the
company will use innovative brand positioning such as “technology and innovation at low
prices”.

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Market leaders
Caravan and trailer industry consist of companies that focuses on manufacturing of
campers, travel trailers and caravans. These vehicles are mainly used for recreational
purposes such as transporting, travelling, shifting and camping. The RV field has become
more competitive in the past decade where innovation has led to the development of vehicles
that are innovative and light weighted, it has been achieved by using spaces in an effective
way. However, the majority of the companies in the caravan industry are small and employs
less than 10 people. The overall camping trips and domestic caravan use exceeded 12.8
overnight trips and nights achieving 53.5 million. It shows an increase in the trips by 71%
and 3% respectively with manufacturing of 23,070 recreational vehicles in the year of 2018
(Caravanindustry.com.au 2020). However, disruptive conditions in the market has been
posing a threat for all the companies in Australia. The camping and caravan industry
experienced decline in performance due to the economic conditions in the country. On the
contrary, the increase in registrations of RVs have shown that demand for a lifestyle of living
in an RV has not changed and have become stronger over the years. It makes the industry
highly robust and dynamic which makes it necessity for the companies to adapt to the needs
of the consumers.
It can also be seen that more than 58% of the market has been captured by the
Chinese companies who are the top caravan importers due to the free trade agreement
between both the countries. In 2018, almost 10,000 caravans were imported and higher
volume imports are expected in the future (Caravanindustry.com.au 2020). The figure shows
that even though there has been decrease in registration of overall vehicles in Australia. The
registration of campers and caravans have increased significantly. The figure shows that the
overall registration of vehicles is 2.2% but the caravans are at 5% and campers are at 4.8%.

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Figure 1: Vehicle registration statistics
Source: (Caravanindustry.com.au 2020)
The major caravan companies in the country consists of companies such as Universal
caravans, Travellers caravans Australia, Supreme caravans, Roma caravans, Lotus Caravans,
JB caravans, Crusaders Caravans and Avida Caravans. These caravan companies focus on
individual aspects they wish to address, some of them focuses on providing luxury product
while other focused on developing a sturdy vehicle willing to go miles on tough Australian
roads. The market for recreation vehicles is relatively higher and Australia has the second
highest recreational vehicle registration after the United States of America. Therefore, Family
caravan will also cater to this niche market and they will act as an innovative follower of the
major companies with a diverse offering in comparison to the other companies in the market.
Consumer Adoption process
The consumer adoption process has been divided into five stages and they are
awareness, interest, evaluation, trial, and adoption. In case of a new product, the adoption
process describes the process through which consumers go through starting from being
introduced to the product and choosing the product at the final stage. In order to improve the
awareness of the consumers regarding the product and the brand, digital marketing and
traditional marketing will be used as a tool. In case of traditional marketing, initially,
advertising will be used to cater to family consumers. Billboards and hoardings will be

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displayed at central locations in tier 1 and tier 2 cities comprising of malls, airports and high
streets (de Bellis and Johar 2020). On the other hand, in case of digital marketing, the
company will use social media marketing and search engine optimisation as the tool for
addressing more consumers in the market. Social media marketing will be used where
Facebook, Twitter, Instagram, Snap Chat and YouTube are effective tools. Brands pages will
be developed and regular updates will be posted to communicate with them and understand
their needs. Once the consumers become aware of the product and the product the company
is willing to sell, the consumers will look for the information of the product. The company
will design their websites consisting of detailed explaining of the facilities provided within
the caravan.
However, the product evaluation phase is one of the crucial phases for the consumers
as the consumers tries the product where test drive and the caravans will be displayed for test
marketing on high end streets and shopping malls. The test drives would help the consumes
understand the type of experience they will get while travelling on road trips and other
travelling ventures (de Bellis and Johar 2020). Product trail phase comes with the product
evaluation phase where the consumers after using the product evaluates their expectation with
the reality. When the expectation of the consumers matches with the reality, then consumer
satisfaction is achieved. Adoption of the product starts with purchase and registration of the
product after the consumer becomes satisfied with the product quality.
Pricing strategy
The prices of the Caravans will be kept low and the company will use competitive
pricing strategy to gain consumers in the market. Competitive pricing uses the prices set by
the competitors as a reference to set their own prices. Competitive pricing is the best way of
entering a new market as to understand the right price of the product it is essential to perform
a detailed market analysis (Kienzler and Kowalkowski 2017). In this case, the prices will be
kept below the price set by other competitors in the market. The company will focus on
offering innovative technology at affordable prices to the consumers. Therefore, the company
will keep the pricing much lower and affordable for the customer but there will be diverse
product ranges going up to the premium products which will be at par with other competitors
in the industry.

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Conclusion
Thus, it can be concluded from the study that Family Caravan provides luxurious
facilities and helps the family carry their home with them. It provides the consumers with the
flexibility of choosing the location of their stay without putting much thought as they have
the access to all the facilities they require while they are at home. In order to differentiate
themselves in the market, Family Caravan will position their product as innovative at low
prices. The family recreational vehicle market is booming in nature so it is the right time for
the company to launch their products and attract the Australian consumers in purchasing such
vehicles. Competitive pricing uses the prices set by the competitors as a reference to set their
own prices. Competitive pricing is the best way of entering a new market as to understand the
right price of the product it is essential to perform a detailed market analysis. In this case, the
prices will be kept below the price set by other competitors in the market. The company will
focus on offering innovative technology at affordable prices to the consumers.

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References
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