Marketing Strategy for Kathmandu Ltd - NZ Diploma in Business (2930)

This report provides a comprehensive marketing strategy for Kathmandu Ltd, focusing on achieving international recognition and brand reputation. It includes an analysis of the target market, situational analysis of current market performance, and evaluation of the external macro-environment. The report identifies strategic options, aligns marketing objectives with strategic goals, and outlines marketing and positioning strategies, including the strategic marketing mix (4Ps). Furthermore, it presents sales forecasts, resource requirements, and performance evaluation mechanisms, concluding with recommendations for corrective actions to address identified gaps in the marketing plan. The primary goal is to maximize customer engagement and improve the company's market share through effective marketing activities and promotional strategies.

Course qualification NZ Diploma in Business and Enterprise Management (Level 7)
US/Prescription title: Marketing strategy
Course/Paper number: 2930
Student name: Jinho Song
Student ID: 174482A
Teacher: Tim, Neetu
Assessment type: 2nd assignment
Due date: 22/Aug/2018
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For Individual Assignment / Report ONLY
I certify that this is my own work and I have read and understood
the Plagiarism and Dishonest Policy (7.7) of Abacus Institute of
Studies.
I understand that the submission of this form electronically is the
equivalent of me signing my name, in pen, on a paper assignment
cover sheet.
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Student name(s) & IDs:
1.
2.
3.
Campuses
Auckland
Level 5 / 3 Wakefield Street
Auckland
New Zealand - 1010
0064-9213-9552
Christchurch
9A/166 Moorhouse Ave
Christchurch
New Zealand - 8011
0064-3365-6076

1
Executive Summary
The study provided in-depth understanding on how effective marketing strategy and tools
along with risk analysis factors would help this organization in gaining international image and
reputation. The primary strategy goal of the organization is to gain international reputation
through its brand image and identity. These specific objectives would help the business experts
in achieving strategic goal. While identifying the potential market opportunities for segregating
the target group, marketing department of Kathmandu has decided to make STP (segmentation,
targeting and positioning) analysis for segmenting target audience as per geographic,
demographic and psychographic areas. The primary abilities that are identified to maximize key
opportunity of business include financial abilities, sufficient work force strength, and
technological advancements. Three years forecast is prepared based on sales and profitability
which will signify whether the organization is going to raise their sales volume or it is decreasing
its profitability level. While evaluating the marketing plan some of the major gaps are identified.
Based on these gaps some of the recommendations are provided.

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Table of Contents
1. Introduction..................................................................................................................................4
2. Objectives....................................................................................................................................4
2.1 Organisation’s marketing objectives.....................................................................................4
2.2 strategic goals of the Organisation........................................................................................5
3. Target market...............................................................................................................................5
3.1 Market characteristics and identify potential market opportunities......................................5
3.2 Current and future demand in the market..............................................................................6
3.3 New marketing targets that could satisfy the future demand................................................6
4. Situational Analysis.....................................................................................................................7
4.1 Current market performance..................................................................................................7
4.1.1 How marketing strategies can affect profitability..........................................................7
4.1.2 Relationship between marketing activities, market share and market growth...............8
4.1.3 Organisation’s marketing strategies and marketing performance and evaluate the
contribution they make to the organisation.............................................................................9
4.2 Market position....................................................................................................................10
4.2.1 Market attractiveness and competitive position...........................................................10
4.2.2 How competition could impact the organization’s marketing strategy............................11
4.3 External macro-environment...............................................................................................12
4.4 Key issues............................................................................................................................14
4.4.1 Organisation’s strategic marketing resources...............................................................14
5. Strategic options........................................................................................................................15
5.1 Marketing objective align with the strategic goals..............................................................15
5.2 How distinctive competencies impact marketing objectives, competitive advantage and
strategic fulfilment.....................................................................................................................17

3
5.3 Ranking the marketing objectives in terms of strategic value from most important to least
important....................................................................................................................................19
6. Marketing and positioning strategies.........................................................................................19
6.1 Strategic marketing mix (4Ps) that will produce maximum business value........................19
6.2 Identify the risks and returns of marketing strategies..........................................................20
6.3 Identify the desired market position....................................................................................21
6.4 How the following factors help shape marketing strategy..................................................22
6.5 Analyse each of the following marketing approaches and select the best approach...........23
7. Forecasts....................................................................................................................................24
7.1 Value of accurate sales forecasts for the organisation.........................................................24
7.2 Resource requirements for the implementation of a successful marketing plan.................25
8. Performance evaluation and monitoring....................................................................................26
8.1 Optimal performance measures and review mechanisms....................................................26
8.2 Recommended corrective action for any gaps.....................................................................27
9. Conclusion.................................................................................................................................27
10. Reference.................................................................................................................................28

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1. Introduction
Kathmandu Ltd is one of the most recognizable online outdoor camping stores especially
famous for its travel and outdoor apparel and equipment. Headquarter in Christchurch, New
Zealand this clothing store has occupied prestigious places of New Zealand currently by
launching 47 stores in its market. Apart from New Zealand, Kathmandu stores are also available
in the market of Australia as well. This particular company is constituted with around 2000
employees having NZ$445.35 million revenue per year. In quest of expanding this business all
overall the World, the business experts have concentrated to change their market strategy and
policy. In this regard, the Kathmandu Ltd has set its mission by stating that “we design, we test,
we adapt” (Products, 2018). It means the Company is firmly put emphasis on its innovation and
ready to change the products with the growing shift in the global customers. In addition to this,
the vision statement of the Company is coupled with the idea of expanding business all over the
world with maximizing the customer satisfaction. In fact, Kathmandu Ltd is highly relying on its
innovation and creative products that facilitate sustainability in the business operation. By using
effective promotional tools the business experts of Kathmandu aims to introduce their travel
apparel in the mind of global customers. By highlighting the primary mission and vision of this
organisation, the study has provided in-depth understanding on how effective marketing strategy
and tools along with risk analysis factors would help this organisation in gaining international
image and reputation.
2. Objectives
2.1 Organisation’s marketing objectives
Specific To maximise 2% of customers both domestically and
internationally by one year
Measurable To render product diversity in order to increase the brand
value within one year (Piercy, 2014)
Achievable To gain global recognition by increasing promotional
method within one year
Realistic To improve the skills and competency of marketing

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executives for handling customers’ service more
efficiently within one year (Martin, 2014)
Time Bound To maintain effective customer rapport within one year .
2.2 Strategic goals of the Organisation
The primary goal of the Kathmandu Ltd is to gain international reputation through
providing best quality products and services. This particular strategic goal is aligned with the
objective of ensuring global recognition within a year. It can be argued that by introducing
effective marketing and through promotional strategies the Company will be able to get the
exposure to attract maximum number of customers not only in the domestic market but also in
the international market. As a matter of fact, increasing the product diversity is also considered
to be an effective strategic goal for the Kathmandu Ltd. In return it will generate more
appreciation to the brand of the Company and maximise the customer to a great extent (Annual
report, 2017). On the other hand, the ensuring product quality is considered to be a major
strategic goal that is coincided with fostering effective customer rapport. In this context, the
Kathmandu Ltd initiates some programs such as free delivery of the products in the New Zealand
market and in online order above $100. Therefore, to widen up its market capitalisation and
ensuring customer maximisation the Kathmandu Ltd requires a proper and effective marketing
strategy as well as promotional tools to enter into the intensely competitive international market
(Walking & Hiking, 2018).
3. Target market
3.1 Market characteristics and identify potential market opportunities
Based on the travelling and mountaineering characteristics in the New Zealand market it
can be argued that the Country is full of natural diversities with a number of hiking trends. In
fact, besides this trained mountaineers normal people are also fond of hiking and walking
through the mountains. As far as the statistics of the New Zealand is concerned, it can be argued
that the population of the country, New Zealand has witnessed a steady growth in its population
since the last quarter of the 1991. As a matter of fact, there is a high growth in the population up
to 10% from 1991 to 2018 (Walking & Hiking, 2018). Therefore, it is considered to be a

6
beneficial factor for the Kathmandu Ltd to attract more customers. Moreover, domestically the
Kathmandu Ltd capitalises the market prominently. As per the annual business report of the
Company, it can be seen that there are 3.6% sales growth in domestic market. Simultaneously,
the online sales growth also touches its peak with a high percentage of 7.5% (Annual Report,
2017). Therefore, it is a high possibility for the Kathmandu Ltd to expand its business more
dominantly in the New Zealand market where the primary customers will be people of the age of
30 to 45.
3.2 Current and future demand in the market
As far as the current market of Kathmandu Ltd is concerned, there are increasing
popularity of hiking and mountaineering both domestically and internationally. On the basis of
the government survey it can be argued that the Country is renowned for its hiking and walking
standards. Based on the government survey, 73% of the holiday visitors or 1.1 million tourists
are participated in the walking and hiking destinations in New Zealand (Population, 2018). This
trend is growing in a rapid pace in the last three years. In fact, the major international visitors are
the Germans and the UK tourists. Visitors with the age of 45 or above are ventilating their
interests in rock climbing and hiking which is identified as a major target market for the
Kathmandu Ltd. As per the future analysis, the organisation needs to render product variety and
innovative product design along with good promotional activities.
3.3 New marketing targets that could satisfy the future demand
However, in order to fulfil future demand of the customers, Kathmandu needs to improve
their promotional campaign based on which the organisation can go beyond the regional market
(Baumgartner, 2014). On the other hand, effective promotional activities would help the
customers in getting detailed overview about the brand. It helped the organisation to enhance its
brand identify and brand image. Customers as well tend to show their interests in purchasing
products after being attracted by the marketing and promotional activities.
Marketing objectives New Target
To maximise customers both domestically and internationally To expand the store in
multinational countries
To render product diversity in order to increase the brand value. To invest huge number of capital
for rendering product diversity

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To gain global recognition by increasing within one year To make international campaign
and promotion
To improve the skills and competency of marketing executives
for handling customers’ service more efficiently within one year
To arrange innovating training and
development session
To maintain effective customer rapport within one year. To use social media platform for
maintaining effective customer
rapport
4. Situational Analysis
4.1 Current market performance
As per the current market performance Kathmandu has earned NZ$445.35b million
revenue per year with 2000 employee. Along with outdoor apparel the company has engaged
gear and accessories as well for rendering product variety (Johanson &Mattsson, 2015).
4.1.1 How marketing strategies can affect profitability
Strategy Impact on profit
Product Strategy
 Introducing new apparels for the
customers
 Colour of the products are coupled with
the customer preferences
 Focus on variety and quality
 Easily manageable products
 Not able to generate more profit
 Most of the customers are of the age of
37
 Quality and variety increase the price
 Can capture more customer
Pricing strategy
 Discount while purchasing from the
store
 Intense competition based pricing
strategy
 Lack of understanding in international
 Increase purchasing products
 Reduction in the online purchase leads
to capture international customers.

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market pricing
Place Strategy
 Establishing store in the populated
locations
 Geographic expansion
 Attract the domestic customers easily
 Able to maximise more domestic
customers
 Lack of internationalisation
Promotion strategy
 Mainly television advertisements
 Verbal promotions
 Big banners
 Flyers
 Social media
 Cost effectiveness
 Generate more customers
4.1.2 Relationship between marketing activities, market share and market growth
Product portfolio analysis is constituted with three major marketing concepts including
marketing activities, market share and market growth. Market share plays the central role in
portfolio planning. Market share represents the percentage of total sales of a company on the
entire market (Annual Report, 2017). Market share of an organisation is highly dependent on
market growth and product demand. If the product demand and sales volume of Kathmandu is
high in the market of New Zealand the market share would also be high. It is observed that
Kathmandu has grabbed 15% of market share in New Zealand market. On the other hand,
marketing activities represents the initiatives that are taken for rendering market growth. As per
regional business the marketing activities of Kathmandu is effective. At the same time, in order
to expand market growth in the international market, the organisation would have to raise their
marketing activities.

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Figure 2: Product Port-folio analysis
Source: (Cross, Belich & Rudelius, 2015)
4.1.3 Organisation’s marketing strategies and marketing performance and evaluate the
contribution they make to the organisation
Marketing activities Market share Market growth
Collaboration with the
distributors and suppliers
 Established network in
the domestic market
 Increasing demand of
the products
 Introduction of new
products
Increase in the market share
capture more customer
 There is a steady
growth in the market
for the previous year.
It can be seen that
there is a growth of
1.7% in the hiking and
mountaineering market
which is beneficial for
Kathmandu Ltd.
Pricing strategy  Sales rose by 13% in

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 There are lots of sales
and vouchers that
provides up to 50%
sales in products
compare to the
previous decade.
 Able to engage more
customers with the
new products.
Word of Mouth
 Due to good domestic
brand position the
Kathmandu Ltd
possesses little effort
in promotion. Word of
mouth is an effective
tool for the promotion
in this regard.
 Increase rate of
customer.
 Inadequate to attract
the international
consumers.
4.2 Market position
4.2.1 Market attractiveness and competitive position
In course of understanding the effectiveness of the marketing strategy it is important to
mention product life cycle (PLC) curve in a prominent way. As far as the PLC curve is
concerned, it reflects the overall profitability scenario of the product and at the same time
influences the overall profit of an organisation (West, Ford & Ibrahim, 2015). In the inceptive
phase, the role of the product is to grow and attract customers robustly. As a result of that the
investors are keen to invest more on the product on the basis of the customer responses and
appreciation. Moreover, in this stage the profit remains low due to lack of proper reputation of
the products (Baker, 2014).At the stage of growth the customers’ awareness about the brand
increases gradually. At this very stage, production cost decreases due to high profitability level.
At the maturity stage product is hugely known and popular. In this situation, competition
is instance and profit level is high due to huge customer demand (Eshuis, Klijn &Braun, 2014).
At the stage of decline the market demand of this product again becomes saturated and the profit

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level is marginalized. In this very specific stage the business experts have to think in rendering
product innovation to change the taste of customers.
Figure: Flow of Product life-cycle
(Source: Sakas, Vlachos & Nasiopoulos, 2014)
4.2.2 How competition could impact the organization’s marketing strategy
Identify the competitors of business: The most significant competitors of Kathmandu existing
in the market include American Tourister and North Face.
Important aspect of competitors by comparing of own business:
Parameters Own organisation
(Kathmandu Ltd.)
Competitor1
(American Tourister)
Competitor2
(North Face)
Product diversification 14 9 25
Market capitalisation 163 stores 441 stores 190 Stores
Annual revenue NZ$445.35 million $15 million $3.6 billion
Staff turnover Limited Critical Moderate
Brand value Yet to be
internationalised
High market
capitalisation in
international market
Strong market holding
Customers’ behaviour Medium Outstanding Very good
4.3 External macro-environment
●Political

12
New Zealand is politically stable country where the organization would not have to face
challenges in making cooperation with government. As a matter of fact, the government also
encourages the tourists to participate in rock climbing and hiking because this industry generates
enough foreign exchange and profit for the New Zealand economy.
●Social
Social environment of New Zealand is liberal where most of the people belong to high
profile. Kathmandu needs to make those kinds of products so that it can attract the target
customers of high society. In fact, the products are manufactured on the basis of international
standards. Therefore, it is very beneficial to the objectives of the company to attract customers
both domestically and internationally as far as they can.
●Economic
New Zealand is economically developed country. Therefore, the organization needs to
maintain product quality. In addition to this, the hiking and mountaineering practices are one of
the major attractions in New Zealand. As a result of that it boosts the economy of the country
predominantly.
●Demographic
New Zealand is demographically liberal with both male and female customers. Therefore,
the organization should focus on available products for both genders. In this regard, the
Kathmandu Ltd manufactures apparels for both male and female customers. Besides this, the
accessories are also manufactured keeping in mind of gender differences.
●Cultural
This country is not culturally biased. Therefore, apparel should be designed in such a way
that it can attract the customers from different geographical backgrounds. As a result of that

13
visitors from UK, Germany, and Australia are very frequent and they love to spent time in hiking
and mountaineering.
● Ethnic
People of different ethnicity and belief belong to this country. As a result, products
should be designed being unbiased. Based on this understanding, Kathmandu also manufactures
its products on the basis of international attire trends. Those products are general in shape and
are free from any kind of ethnic biasness.
●Legal and Regulatory
In order to run business in the soil of New Zealand Kathmandu would have to follow
several legal regulations and acts (Bamberger, Meshoulam & Biron, 2014). The acts include data
protection act, anti-discrimination act, health and safety act for ensuring employees about their
safety. As a matter of fact, the Kathmandu accessories are famous for their utility and safety. In
fact, the Company is always looking for incorporating new technologies that are very beneficial
to keep pace with the growing change in the market both internationally and domestic.
●Technological
New Zealand is technologically developed country. Therefore, the organization can easily
use advanced technology for communicating with the customers. Cutting edge technology will
lead Kathmandu to establish its market outside the country profoundly and effectively.
Moreover, the company puts emphasis on the stitching techniques to develop more long lasting
quality products.
●Competitive
As per external environmental scenario, the rate of competition of retail industry in the
market of New Zealand is high. As a result, Kathmandu would have to make effective marketing
strategy for overcoming competitors’ threats. In addition to this, there are a number of
international brands like American Tourister, Wildcraft and North Face who can give a great
deal of competition in order to expand the market of Kathmandu both internally and
internationally.

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4.4 Key issues
4.4.1 Organisation’s strategic marketing resources
The key resources those primaries are needed in order to make a marketing plan successfully
include:
 Financial resources
 Technological resources
 Promotional resources
 Human resources
Value chain analysis:
 Inbound logistics:
Inbound logistic is the systematic process of maintaining stock of products in the
warehouses by efficient business executives. For maintaining product availability in the market
the business experts have to keep a constant control on the overall inbound logistic. In order to
maintain inbound logistics of the organization Kathmandu should have sufficient human
resources to maintain the entire warehouse.
 Operations:
While maintaining an effective balance between supply and demands the business experts
have to focus on operating the business systematically based on which products can be delivered
to proper destination. In order to maintain operation process of the organization Kathmandu
should have sufficient technological resources to maintain run the business systematically.
 Outbound logistics
Outbound logistic is the method of delivering the products to the doorstep of customers
within stipulated time. As a result, customers do not show their dissatisfaction level after
receiving the product within time. In order to maintain effective outbound logistics of the

15
organization Kathmandu should have sufficient financial resources to pay the transportation cost
effectively.
 Marketing and sales
Marketing and sales is one of the most significant departments who are responsible for
positioning the brand to proper channel. In quest of providing detailed product overview to the
customers marketing and sales executives have to play the most important role. In order to make
the marketing and sales procedure effectively the organization Kathmandu should have sufficient
promotional resources to create brand image and brand identity.
 Services
Along with maintaining the quality of products the business experts have to deliver the
products within proper time so that the communication between service providers and service
users become effective. Technological resources are highly important for making proper
communication between the service provider and service user.
5. Strategic options
5.1 Marketing objective align with the strategic goals
Marketing
Objective
align with
strategic goals
Ability to
maximise key
opportunities
Critical success
factors
Marketing
Capabilities
and resources
Market
characteristics
Competitive
factors
To maximise
2% of
customers both
domestically
and
internationally
by one year
Robust and
effective
promotional
strategies and
pricing
Quality
products and
services
Promotional
tools
Technological
advancement
The market is
stable
domestically
but in global
stages high
competitiveness
is prevalent
Pricing
Product
diversity
To render
product
Operation
management
Strong
Competitiveness

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diversity in
order to
increase the
brand value
within one
year
and R&D
team
Production
expenses
Supply of raw
materials
in the
international
market
Increase in the
market share
To gain global
recognition by
increasing
promotional
method within
one year
Partnership
with some
global
companies
Increase sales
Effective
market analysis
Efficiency in
the
management
Sufficient
financial
strength
Trained staff
Attract more
customers who
strive for
quality rather
than price
Competitive
advantage
through unique
products
To improve
the skills and
competency of
marketing
executives for
handling
customers’
service more
efficiently
within one
year
Implementing
training
facilities
Induction with
the staff
Increased the
quality of
service
Acknowledging
brand
reputation
Analysis and
evaluation of
the
professional
service system
To maintain
effective
customer
rapport within
one year
Initiate
campaigns and
community
development
programs
Using social
media
High brand
value
Environmental
stewardship
IT department
Marketing
Team

17
5.2 How distinctive competencies impact marketing objectives, competitive
advantage and strategic fulfilment
Marketing
Objectives
Distinctive
competencies
Competitive
advantage
Impact to meet
marketing
objective
Impact of strategic
fulfilment
To maximise 2%
of customers both
domestically and
internationally by
one year
Global
competition
Domination of the
big brands
Popular brand in
the domestic
market
Stable growth in
profit
Innovation and
creativity
Advantage to step
forward
aggressively
To render product
diversity in order
to increase the
brand value within
one year
Technological
advancement
Production
expenses
Strong R&D team
Flexible operation
management
High adaptation
ability
Technological
advancement
Unique Products
Boost enthusiasm
to manufacture
new products
To gain global
recognition by
increasing
promotional
method within one
year
Intense
competition
Threat of the big
brands
Well market
capitalisation in
the domestic
market
Steady annual
profit
Effective market
analysis
Evaluate the
current trends in
the global market
Efficient decision
making
Get a clear picture
of the current
international
market
Better
management
communication
framework
To improve the
skills and
competency of
marketing
executives for
handling
customers’ service
more efficiently
within one year
Inexperience in the
international
method of service
providing
Leadership quality
Proactive attitude
of the managers
Efficient training
facilities
Induction process
Reduction in
employee turnover
Figure out the
flaws in the
operation and staff
management
Transparent
communication

18
To maintain
effective customer
rapport within one
year
Lack of
internationalisation
Attractiveness of
the products
Strong
promotional
strategies
Incorporation of
the social media
advertisement
tools
More investment
in the promotion
Partnership with
the global brands
Establishing better
brand reputation
More concern
towards product
quality
Effective pricing
strategy
Social campaigns
5.3 Ranking the marketing objectives in terms of strategic value from most
important to least important
Marketing objectives Ranking
Ability to maximise the customers Rank 4
To render product diversity in order to increase the brand acceptance Rank 1
To gain global recognition by increasing within one year Rank 5
To improve the skills and competency of marketing executives for
handling customers’ service more efficiently within one year
Rank 2
To maintain effective customer rapport within one year. Rank 3
6. Marketing and positioning strategies
6.1 Strategic marketing mix (4Ps) that will produce maximum business value
The four most important marketing mixes include product, price, promotion and place
based on which customer awareness is highly dependent.
Product
Travel and outdoor apparel and equipment is the core product for Kathmandu based on
which their organizational reputation is entirely dependent (Baker, 2014).
Price

19
The business experts have decided to set an average cost on products so that both
premium cost customers and the low cost customers can afford the products.
Promotion
In order to promote the brands the business experts would have to focus on both traditional
media tools and new media tools. Both offline and online stores are available for customers from
where they can avail their products and services.
Place
Kathmandu has implemented both offline and online service methods for drawing the
attention of customers. If the customers are unable to visit the physical stores they can place the
order through online. Service providers are there to deliver the services within stipulated time.
6.2 Identify the risks and returns of marketing strategies
Strategies Risks Returns Feasibility of achieving
marketing objectives
Product Strategy
 Introducing new
apparels for the
customers
 Colour of the
products are coupled
with the customer
preferences (Ashley
& Tuten, 2015)
 Focus on variety
and quality
 Easily manageable
products
Fluctuation in the
market
High
competitiveness
Customers of different
ages from 30 to 45
onwards
Variety in products will
attract more customers
Pricing strategy
 Discount while Debacle in the Beneficial for relaxing Increase sales and

20
purchasing from the
store (Baker, 2014)
 Intense competition
based pricing
strategy
 Lack of
understanding in
international market
pricing
profit percentage the inventory customers
Place Strategy
 Establishing store in
the populated
locations
 Geographic
expansion
Retail stores and
online shopping
facilities will
reduce customers
in stores
Beneficial to attract
customers domestically
and internationally
Progress in sales
Promotion strategy
 Mainly television
advertisements
 Verbal promotions
 Big banners
 Flyers
 Social media
Continuous
promotion will
curb down the
value of the
product
Financial
restriction has
detrimental
impact on the
promotion (Fine,
2017)
Increase the brand
awareness
Generate more
customers (Martin,
2014)
Enhance brand loyalty
Maximise profit
6.3 Identify the desired market position
● Product attributes

21
As per marketing position the product attributes of Kathmandu is high (Öztamur &
Karakadılar, 2014). Both the services and the product materials maintain superior quality that
can easily gain customers’ attention. Especially, travel apparel launched by the organization in
the market of Australia is of high demand.
● Usage and users
As per usage people belonging to various cultural backgrounds and religion would be
able to use the product due to its variable designs (Martin, 2014). Customer services providers
are not very biased towards any specific cultural people.
● Product class
As already stated Kathmandu is primary known in the retail market due to its product
class (Martin, 2014). The quality maintains superiority based on which people belonging to high
class of society can easily use the services
● Consumer needs and benefits
Services providers are able to deliver the product in free of cost to customers’ destination
(Blakeman, 2018). This is one of the most effective benefits for which people like to access the
online portal of Kathmandu.
● Competition
It is undeniable that the competition rate in the market of New Zealand in retail industry
is high (Zeriti, 2014).In such effective competitive market Kathmandu needs to make more
effective promotional activities based on which customers tend to show their interest purchasing
products.
6.4 How the following factors help shape marketing strategy
● Status quo
As per current social and political perspective this particular organization has occupied a
stable situation in the market of New Zealand.

22
● Intense growth
In order to render more intense growth the organization needs to increase their product
variety based on which customers would get more options while purchasing the product.
● Market penetration
Market penetration is the strategy of promoting existing products to the existing
customers (Fine, 2017). As a result, the risk factor in this case is low. But Kathmandu would not
be able to render market growth by dealing with existing products and existing customers.
● Market development
Market development is the method of enhancing range of target customers within existing
products (DaSilva & Trkman, 2014). In this case, the marketing executives have to face
challenges in maintaining balance between supply and demands.
● Product development
Product development is the stage of increasing product diversity to meet needs and
demands of the target customers. Kathmandu can follow this stage for expanding their business.
● Diversification
Diversification is the method of emerging diversity in product as well as customers
(Piercy, 2014). Automatically, the number of target market would be increased and Kathmandu
would be able to gain competitive advantage due to entrance of product innovation.
● Integrated growth
Integrated growth is the overall business growth that is highly dependent on which the
stages Kathmandu is adopting for enhancing their business sphere.
6.5 Analyse each of the following marketing approaches and select the best
approach
●Mass marketing and distribution

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Mass marketing and distribution is the method of promoting products in multiple
countries and distributing their product concept in various geographic locations (Johanson
&Mattsson, 2015). Mass marketing and distribution is effective for going beyond the regional
market. Kathmandu in order to achieve international fame intends to promote their brands in
various geographic locations.
●Product variety marketing
By rendering more products and drawing customers’ attention Kathmandu intend to gain
competitive advantages. As a result, customers tend to show their satisfaction level after getting
product variety within the stores.
●Differentiated target marketing
Differentiated target marketing creates customer awareness by involving people of at
least two locations or more than two locations. The purpose of this marketing of Kathmandu is to
expand business in other geographic locations as well.
●Concentrated target marketing
Concentrated target marketing aims to target their customer in one particular location and
designs their products based on the demands of customers from this location only.
Amongst four different kinds of marketing approaches Mass marketing and distribution is
considered as the best approach (Ahearne, Lam & Kraus, 2014). This very specific approach
would enable Kathmandu in expanding their business process in different locations.
Automatically, the demands of products will be increased with the gradual process of enhancing
target customers. On the other hand, the organization would be able to gain international fame
and recognition.

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7. Forecasts
7.1 Value of accurate sales forecasts for the organisation
Three years forecast is prepared based on sales and profitability which will signify
whether the organization is going to raise their sales volume or it is decreasing its profitability
level.
Financial statement:
Profit and loss statement:
2015 2016 2017 2018 2019 2020
Sales 90,000 250,000 450,000 600,000 900,000 15,00000
Expenses
Payroll 90,000 100,000 200,000 300000 400000 600000
Equipment 2,000 25,000 45,700 50,000 70,000 90,000
Depreciation 0 0 0 0 0 0
Necessary Utilities 900 2,500 2,700 5,000 7,000 9,000
Insurance 1,000 3,500 3,500 6,000 6,000 8,000
Rent 1,000 12,000 22,000 25,000 25,000 20,000
Payroll Taxes 13,000 19,000 40,000 60,000 70,000 80,000
Internet Expense 5,000 10,000 15,000 25,000 35,000 50,000
Total expenses 132,900 192,000 328,900 471,000 613,000 857,000
Net Profit 42,900
(Loss)
58,000
(Profit)
121,100
(profit)
129,000 287,000 643,000
Table: Sales forecast as per profit and loss analysis
(Source: as created by the author)

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After evaluating the sales forecast, it is identified that the organization is going to lose its
profit in first year. From next year onwards, the marketing plan would help the organization in
rendering business profits day by day.
7.2 Resource requirements for the implementation of a successful marketing plan
After evaluating needs and desires for Kathmandu in making an effective marketing plan
it is identified that promotional resources of this organization is very much limited. The business
experts do not have any problem in investing large amount of money for promotional tools. Rest
of the resources like human resources, technological resources and financial resources are
sufficient. The resource that is required for effective marketing plans are as follows:
Resources Requirements
Financial resources Capital investment
Physical Resource
Land
Infrastructure
Building
Equipment
Human Resource
Technical Staff
Research & development team
Service centres
Distribution centres
Table: Promotional resources
(Source: As created by the author)

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8. Performance evaluation and monitoring
8.1 Optimal performance measures and review mechanisms
Optimal performance measurement is the process of analyzing the risk factors based on
which organizational crisis can be handled. While developing a marketing plan the organization
cannot avoid the risk factors. Effective performance measures enable the employees in
overcoming the risk factors. In case of Kathmandu, the risk factors are related to product, price,
place and promotion (Rajasekar, 2014). If the product fails to attract customers’ attention and the
promotional method does not attract their mind organization would have to face crisis. Like the
same way, if the price level does not impress the customers and delivery plan is not easily
reachable for the users the business experts would have to face immense challenges.
In order to review four major mechanisms for strategic marketing mix it can be
summarized that product and pricing strategy followed by Kathmandu is appreciable. At the
same time, it is observed that promotional method of this organization is not very effective due
to the use of limited number of media platforms. This particular area can be improved. On the
other hand, Kathmandu can work more their place by opening more stores in the market of New
Zealand in order to maintain a balance between supply and demand.
8.2 Recommended corrective action for any gaps
The gaps that are identified in this marketing plan are as follows:
 The organization is only concerned in making macro environmental analysis. Macro
environmental analysis alone is not effective enough in making proper marketing plan.
 The organization has primarily focused only on marketing mix strategy which is proper
for evaluating their promotional plan (Wilden & Gudergan, 2015).
 Lack of sufficient workforce strength in marketing department
 Limited promotional budget for maintaining promotional campaign
Based on the identified gaps the recommendations are as follows:

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 Along with macro environmental analysis the organization would have to make effective
micro analysis as well in order to get an effective idea about the organizations’ strengths and
weakness
 However, before making a marketing mix strategy the organization could have conducted a
stakeholder analysis as well. An effective stakeholder analysis is very much effective to
forecast the current needs and desires of the customers.
 In order to expand the business in different geographical boundaries the organization can
increase their human resources for maintaining a proper balance between demands and
supply.
 The organization can easily enhance their budget for promotional activities for grabbing the
attention of global customers
 The marketing executives would have to focus on optimal performance measure to handle
the risk and uncertainties that Kathmandu is going to face
9. Conclusion
The entire study has given detailed overview about the marketing plans and strategies
followed by Kathmandu. In quest of expanding their business all overall the World, the business
experts have concentrated to change their market strategy and policy. The primary strategy goal
of the organization is to gain international reputation through its brand image and identity. These
specific objectives would help the business experts in achieving strategic goal. The price range
of these products are very much average that can easily enable a medium cost customer to
purchase these brands. Thus, the business experts have targeted customers from average income
status having 20 to 50 groups of ages.
While evaluating effective marketing strategies the name of product life cycle is the most
prominent. This particular model aims to evaluate on how various stages of products can leaves a
major influence on overall organizational profitability. As per competitive position from the
perspective of New Zealand market, the organization is holds a standard position. The strongest
competitors of Kathmandu in current market scenario include Woolworths, PlaceMakers, and

28
The Iconic. With the rapid growth of globalization and competition the business organizations
have to improve their marketing strategy and promotional activities.
Three years forecast is prepared based on sales and profitability which will signify
whether the organization is going to raise their sales volume or it is decreasing its profitability
level. While evaluating the marketing plan some of the major gaps are identified. Based on these
gaps some of the recommendations are provided in this very specific study.
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