KeepCup's Digital Marketing Analysis: Competitive Advantage Report

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Added on  2023/06/04

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This report provides a comprehensive analysis of how KeepCup, an Australian reusable coffee cup company, can enhance its digital marketing strategies to gain a competitive advantage in the market. It covers key areas such as data analysis, STP (Segmentation, Targeting, and Positioning) model implementation, marketing mix optimization (Product, Price, Place, Promotion), cost management, customer relationship management (CRM), and the use of A/B and multivariate testing for website optimization. The report emphasizes the importance of understanding consumer needs and preferences through effective communication and leveraging social media platforms to expand market reach and increase brand value. By focusing on these digital marketing strategies and maintaining reasonable pricing, KeepCup can potentially increase its online market share and overall profitability.
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Competitive Advantage
Analytics Report
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
DATA..........................................................................................................................................3
STP...............................................................................................................................................3
MARKETING MIX.....................................................................................................................4
MARKETING COSTS................................................................................................................5
CUSTOMER RELATIONSHIP..................................................................................................6
A/B TESTING AND MULTIVARIATE TESTING...................................................................6
CONCLUSION................................................................................................................................7
Statement of Intent.......................................................................................................................7
REFERENCES................................................................................................................................9
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INTRODUCTION
Digital marketing plays a crucial role in the business as it helps the organization to
identify the new market by identifying the competition in the market and by analysing the needs
of the consumer. KeepCup is known as one of the Australian companies who manufacture coffee
cups which can be reused. Due to the ongoing pandemic situation in the country, the company
wants to enhance there online marketing approaches to gain a competitive advantage. This report
is going to contain the ways through which Keepcup can implement strategies for digital
marketing.
MAIN BODY
DATA
Data through public searching
KeepCup uses stainless steel and 35 % recycled material and also uses the technology
with 75% oxygen furnace.
It uses carbon emissions in cup by using 11% of energy and 1% of water(Bala and
Verma, 2018).
It uses plastic around 41% in each cup and it can be changes depending upon the size of
the product.
Further data, will include the profits and revenues earned by the company, current market share,
employees turnover, cost incurred during production of each cup and cost incurred on
researching the market.
Additional Data needed to enhance the digital marketing will include the sales data, customer
information, inventory data. The data will help the business to enhance the online marketing
experience of consumers and by providing higher level of satisfaction.
STP
STP is a model that shows that how you market your products and to whom. It makes
your strategies more relevant, focussed and personalized. It includes segmentation of audience
and positioning of product to target audience. Financial datas, expenses incurred in creating a
websites.
SEGMENTATION
In any business, it is not possible to satisfy the needs of whole world. Every product or
service is not possible for everyone. The business need to identify the segments of market which
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helps them in planning and creating of strategies for product. KeepCup will segment the market
through geographic, demographic, psycho graphic or behavioural segmentation. The company
will do demographic segment through both male and females and manufacture its products and
services by analysing the behaviour and needs of the consumer. They also provide customized
cups and bottles to the consumers.
TARGETING
After deciding the segmentation of the market, the next step is to identify the target
market which will helps the business to increase the sales and earn maximum profit. To target
the market, business looks at the several factors such as size of segment, profitability and
reachability of product. KeepCup's targeted audience is people from the age group of 18-40 years
, as this group likes to invest in aesthetic cups which the company provides(Camilleri, 2018).
POSITIONING
This is the last step to position the product in the chosen market. This helps the company
in improving the efficiency of market. The positioning of the product can be done through
symbolic positioning by improving the satisfaction of consumers, by functional positioning
which helps in solving the problems faced by the consumer and by experimental positioning
where the business tries to connect with the consumer at the emotional level. Keepcups will
position its market by looking at all the factors mentioned above which will helps the company
to accomplish the goals of company.
MARKETING MIX
Marketing mix are the actions and strategies which are performed by the company to
promote its product or brand in the market. It helps the business in decision-making process and
also in achieving the growth. It can be analysed properly by understanding and doing market
research. It includes 4Ps which are known as the product, price, place and promotion strategy.
These Ps are briefly discussed below:
PRODUCT
KeepCup deals in the reusable plastic cups. They designed their product by identifying
the needs, planning the strategies and by testing the product. The company recently made some
changes in the designs and made some alterations such as widening the lid of the and by creating
a new lid. They also use reusable plastic in the cups which helps in preventing the environment
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and also in creating positive environment. They also expanded their product range by introducing
a glassware range in the cups.
PLACE
KeepCups started selling its products to the Melbourne market for increasing the sales
and to earn higher profitability for the company. Due to Covid19 situations, The company
launches there website to provide online services to its customers to attract more customers and
to increase the brand value of the company(Thabit and Raewf, 2018). The company also
developed there direct sales channels by communicating with the coffee retailers and shops.
PRICE
The company is using the competitive based pricing method which means to set the
prices of the product by analysing the prices that are prevailing in the market. The company
offers high quality products to the consumers at the prices which includes the cost of raw
material with the reasonable profit. They have different sizes in each product, so the prices od
product also varies accordingly. For example, the company sell smallest cups for $11 and the
largest one for $18.
PROMOTION
KeepCups use variety of tools to promote its products in the market. They collaborated
with cafes by providing cups to them which helps in increasing there market share. They also
focus on generating customer relations and also advertise there products through magazines.
After the pandemic situation, the company launched their own website so, the customers can also
get products through online platforms. This promotion strategy will help the company to gain
market share and will also increase there market share.
MARKETING COSTS
Fixed Cost: KeepCup's fixed cost includes the rent, salaries and wages of employees,
taxes and insurance.
Variable Cost: The companies variable cost includes the expenses such as cost incyurred
on raw material, packaging or any transportation expenses. KeepCup's variable cost
depends upon the production(Gupta, Ivanov and Choi, 2021). If production increases then
the cost also increases.
Marginal cost: KeepCup's marginal cost will include the cost incurred to make
additional unit of production.
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CUSTOMER RELATIONSHIP
Customer relationship are the techniques used by the business to get engage with its consumers
to get the ides of their needs and preference and to improve the consumer experience. Good
consumer relationship provides long term solutions to the problems faced by the consumer which
results in success of the business. KeepCup follows the customer relationship management tool
to communicate with customers and to identify the potential customers out of it. It helps the
company in managing the contacts, maintaining sales and productivity of the company. The
company can maintain the customer relationship management through following ways such as;
Effective Communication between teams: Effective communication is not only
important in maintaining the relationship with customers but also with the team(Soltani
and et.al, 2018). Communicating with the different teams in the organization helps in
identifying the lacking areas of the business which helps the customer to retain for long
time.
Encourage Rewards: The company can provide rewards to its existing customers by
providing them with more benefits and referrals. This will maintain the relations in along
run and will also help the company to get new customers. This will help the business to
get more customers which will help to nurture and foster the existing relationships and
also acquires new consumers.
Acquiring New Customers
Developing Partnerships: KeepCup can develop partnerships with other business to
acquire new customers. Fir example, KeepCup can make partnerships with the cafes, so it
can helps the business in promotion and increase the customers(Itani and et.al, 2020).
Social Media Platforms: Having a presence at social media helps the business to get
new customers. Business accounts at Facebook, Instagram and linked in is cost effective
also. People get to know about so many brands through social media platforms only and
also attracts customers. This can helps the business to get new customers.
A/B TESTING AND MULTIVARIATE TESTING
A/B Testing: A/c testing is the method to optimize the website by using the two version of
pages, that is version A and version B which are compared to one another. It is utilized to test the
two different designs against one another.
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Multivariate Testing; it is the method of identifying the important areas and sections which
helps in creating variations of whole page. By taking this test, the company understands the
different versions of the webpages which helps in getting the idea most significant page.
Keepcup will use the multivariate testing as it will give significant results by testing
websites properly. It also plays important role in redesigning the website from time-to-time to
attract the new customer. It changes multiple section of websites together which helps the
company by saving there time.
CONCLUSION
From the above report, it can be concluded that digital marketing is important in
promoting products and services through digital channels. It helps the business in earning higher
profits and also helps in getting competitive advantage in the firm. Keepcup can enhance its
digital marketing through social media platforms by analysing the needs and preference of the
consumer(Ros and Runeson, 2018). Keepcup is also focussing on STP and marketing mix
properly which will help the company to increase the brand value. The company should also
focus on the Economy pricing method by keeping the prices reasonable which will helps in
increasing the sales of the products. By following this strategy, KeepCup can earn higher online
market share.
Statement of Intent
Statement of Intent
Target audience is a group of persons which is identified by the company to whom they are
going to offer the product and services. KeepCup's identified its market through demographic,
geographic, behavioural and psycho graphic segmentation. Keep Cup's analyses the behaviours
and preferences of the consumers and will target the audience accordingly. As the product is the
reusable coffee mugs which are needed by all the people so, in general they are targetting
people of all groups(Ma, Wang and Zhou, 2021). They are also providing customized option to
people to gain maximum satisfaction.
Keepcup's uses various techniques to reach out to its customers. They use direct selling
methods to enhance customer experience. They also introduced their own websites for online
shopping and also provides after sale services. Further, they also ask for customer details on
there websites which helps them in maintaining the customer relationship by sending messages
and emails to them regarding the new products and offers. They also use social media platforms
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to get a higher market share.
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REFERENCES
Books and Journals
Bala, M. and Verma, D., 2018. A critical review of digital marketing. M. Bala, D. Verma (2018).
A Critical Review of Digital Marketing. International Journal of Management, IT &
Engineering. 8(10). pp.321-339.
Camilleri, M.A., 2018. Market segmentation, targeting and positioning. In Travel marketing,
tourism economics and the airline product (pp. 69-83). Springer, Cham.
Thabit, T. and Raewf, M., 2018. The evaluation of marketing mix elements: A case
study. International Journal of Social Sciences & Educational Studies. 4(4).
Gupta, V., Ivanov, D. and Choi, T. M., 2021. Competitive pricing of substitute products under
supply disruption. Omega. 101. p.102279.
Soltani, Z. and et.al, 2018. The impact of the customer relationship management on the
organization performance. The Journal of High Technology Management
Research. 29(2). pp.237-246.
Itani, O.S. and et.al, 2020. Social media and customer relationship management technologies:
Influencing buyer-seller information exchanges. Industrial Marketing Management. 90.
pp.264-275.
Ros, R. and Runeson, P., 2018, May. Continuous experimentation and A/B testing: a mapping
study. In 2018 IEEE/ACM 4th International Workshop on Rapid Continuous Software
Engineering (RCoSE) (pp. 35-41). IEEE.
Ma, X., Wang, S. and Zhou, W., 2021. Testing multivariate quantile by empirical
likelihood. Journal of Multivariate Analysis. 182. p.104705.
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