Marketing Strategy and Plan: Market Research and Consumer Behavior

This report delves into the crucial aspects of marketing strategy and planning, emphasizing the role of market research in making informed decisions. It explores the significance of market research in understanding market competition, consumer demand, and the overall business environment. The report examines various marketing research methods and their impact on formulating effective marketing plans, using examples like McDonald's Australia's strategic initiatives. It further analyzes the PESTEL framework, highlighting its use in assessing political, economic, social, technological, environmental, and legal factors before launching new products, exemplified by Starbucks' market entry in Australia. The SWOT analysis is also discussed, showcasing how businesses like Apple leverage their strengths and opportunities while addressing weaknesses and threats. The report also covers segmentation, targeting, and positioning (STP) strategies, illustrating their application with examples like Coca-Cola's 'New Coke' launch. Finally, it concludes with the examination of successful and unsuccessful new product launches and brand management strategies, exemplified by Apple's iPhone launches, providing a comprehensive overview of marketing principles and practices.

Running head: MARKETING STRATEGY AND PLAN
MARKETING STRATEGY AND PLAN
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MARKETING STRATEGY AND PLAN
1. Marketing research and marketing plan
According to Greg (2017, pp-79), the marketers generally conduct a market research to
analyze the level of competition in the market, the demand level of that particular product to
be launched in the market and analyze the business and market environment. Marketing
research must be considered for systematic collection of data and information about a
particular market before launching a product in that particular market. This analysis and
research helps to determine the success level of the product that is to be launched in the
particular market. The market information and data gained from the marketing research helps
to determine and formulate a market plan as per the needs and the requirements of the
customers (Greg 2017, pp-80). There are various marketing organization which performs
market research to study about the market trends, consumer preferences, gather information
about the new product ideas and the product performance along with its positing in the
market. Therefore the significance of market research is to collect concrete feedback about
the products or the services. The feedback received from the market research helps the
business organizations to formulate a business plans. An effective marketing plan leads and
directs the overall marketing activities of the business organization (Greg 2017). The results
determined in the market research helps to determine the type of media, type of
advertisements and product innovation to improve its sales or launch a new product in the
market.
For example, McDonalds Australia, the fast food company strategically planned to launch
a new format of eatables offered to the consumers. The main objectives of the company were
to increase their budget in order to maintain a competitive position in the fast food industry in
Australia. This investment enabled the company gain competitive advantage in the market. It
implemented a plan to introduce a 24/7 breakfast menu and ‘create your taste’ burgers

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(Mcdonalds.com.au. 2019). According to Dibb and Simkin (2013), McDonalds Australia
strategically planned to use the digital media platform for its market research. This helped the
company to gain information about consumer preferences and expand their menu,
implementing their plan in an innovative manner. The company gathered information from
the public outcry and social media sites Instagram and Twitter which helped the marketing
department to gather information about the relevant changes in the consumer tastes and
preferences as well as the changes in the industry (Team 2013). The company used a twitter
hash tag which gained significant publicity and grabbed the attention of the customers and
created nationwide awareness. This social media campaign helped the business organization
to allow the customers to create a lunchbox and taste them free of cost. They gathered
information from this marketing research tactics and enabled the company to gain marginal
benefit and secure a competitive position in the market. Implementing this strategy helped the
company to mass produce the most favourite food item.
2. PESTEL and how this affects the introduction of a new product
According to Perera (2017), The PESTEL analysis helps the business organization to
determine the threats and take action to counter the prevailing threats in the market
environment which could otherwise affect the profitability of the new product to be launch in
the business environment. PESTEL analysis is a framework which is used by various
business organizations to track the environment in which they are operating in or are planning
to launch a new product or service in the particular market (Bismark et al. 2018). The
PESTEL analysis implies the political, economic, social, technological, and legal and
environment factors which might directly or indirectly affect the smooth functioning of the
business organization. Before launching a new product or service in the market, it is highly

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essential to consider the political economic, social, technological, legal and the environmental
factors Greg. (2017, p-45),. As per Perera (2017), this helps the business organization to
understand the situation prevailing in the market which in turn helps the organization to
estimate the profitability of the product in the particular market. Therefore this framework
directs the activities of the organization by accounting to its goals and strategies. Further, as
mentioned by Greg. (2017, p-44), it also helps to determine the opportunities prevailing in
the market, the opportunities prevailing in the market can help the organization to increase
their brand image and position the new product in the market in an effective manner thereby
ensuring success. Therefore, it is highly essential to conduct PESTEL analysis before
launching a new product in the market.
For example the international company Starbucks has been seeing slow growth and
progress in the Australian market. Therefore, the company had planned to introduce a new
flavours and seasonal drinks to meet the preferences of the Australian market. The company
considered conducting a PESTLE analysis before launching the new flavoured product in the
market (Starbucks Coffee Australia. 2019).
Political: The Company analyzed political difficulties in Australia, the government of
Australia and the local people preferred local brands rather than international brands. There it
faced huge competition from the local marketers such as GJ (Gloria Jean). Therefore, the
company planned to bring in flavours and additional items to suit the needs and preference of
the Australian locals (Starbucks Coffee Australia. 2019).
Economical: Starbucks analyzed that there is high level of uncertainty in the Australian
markets. The target customers of Starbucks were teenagers and youths who were not
economically stable (Bismark et al. 2018). Therefore, the company strategically planned to
reduce the price of the product items offering which pleasurable taste.

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Social cultural Influences: The Company analyzed that the Australian locals preferred
strong taste of coffee which was directly contrasting the American flavour of sweet coffee.
Therefore the company offered coffee as per the taste and preference of the Australian
culture. This helped the company to gain success in the Australian market.
Technological: The company significant advantage by using advanced technology to offer
bright and colourful drinks. It used celebrity endorsements as advertisements and enhanced
its online presence thereby allowing its customers to order online (Starbucks Coffee
Australia. 2019). This opportunity helped the company to gain competitive advantage.
Environment: Strategically the company used reusable products and packaging systems
which helped the company to gain a positive image in the Australian market.
Legal: The legal differences are a challenge to the company, it needed to comply with the
Australian laws and legislations (Perera 2017).

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Figure 1: PESTEL Analysis of Starbucks
Source: (Bismark et al. 2018)
3. SWOT analysis and its use in the market plan
According to Gürel and Tat (2017), the SWOT analysis is used by various business
organizations to determine the internal strengths and weakness of the business

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organization and the external factors, opportunities and threats prevailing in the market.
By identifying the strengths, weakness, opportunities and threats the business
organization can undertake the marketing plan and formulate strategies to overcome the
threats and weakness of the organization and take advantage of the opportunities and
strengths of the organization (Greg. 2017 p-66).. As mentioned by Gürel and Tat (2017),
the swot analysis helps to gain powerful insights about the market conditions and the
critical issues that might affect the smooth functioning and operation in the market. The
business organization takes into considered the favourable and unfavourable conditions
concerning the products and services of the company in the market and formulates a
marketing strategy accordingly. According to Greg (2017), the SWOT analysis, takes in
account the internal issues and external issues which helps the business organization to
determine the marketing mix and other elements of marketing plan. Therefore SWOT
analysis helps the organization to formulate strategies and planning for marketing the
existing product or launch a new product in the market.
For example, Apple Inc, sold around 78.29 million I-phone 7 in the year considering its
strengths and weaknesses. The success of the product enabled the organization to tactfully
make up for the loss in the PC market for Apple Inc. Although the company has been facing
stiff competition in the market, it has continued to excel in the market by emphasising on the
strengths and opportunities of the company (Apple.com 2019).
Strengths: Apple has huge brand name and publicity all across the world. This strength of the
company has given a distinct advantage to the particular product launched by the company.
Apart from the brand name and the global recognition, the powerful features of the products
and specifications of the product, helped it to hit the Smartphone market(Apple.com 2019).

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Weakness: The product is premium priced, which is not affordable for the middle and lower
class consumers(Bismark et al. 2018). There are certain limitations in the specifications of the
product as compared to the competitor’s products.
Opportunity: There has been a growing popularity of Smartphone devices all across the
world; this was an opportunity for the company to excel in the market. Additionally, the
product designing is highly innovative and unique with excellent features (Bismark et al.
2018). This was an added opportunity for the company to make huge profits.
Threats: The product faced stiff competition in the market; there is an availability of
substitute products in the market with an affordable price range. It faced stiff competition
from Android OS(Apple.com 2019).
Figure 2: SWOT Analysis
Source: (Bismark et al. 2018)

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4. Segmentation, targeting and positioning in marketing (STP): Current trends in
the industry
According to Howells and Lowe (2018), Segmentation involves targeting a part of the
population that is most beneficial for the business organization. Segmenting, targeting and
positioning involve segmenting and dividing the population into different groups as per
shared characteristics. It implies targeting specific group of customers in which the product or
the service offered by the company is more likely to be sold and ensure profitability to the
customers (Greg. 2017 p-195). The segmentation and positioning strategy of the Umber
Company is known to be an essence of the company core marketing strategy.
As mentioned by Dolnicar, Grün and Leisch (2018), a good example of segmentation
positioning and targeting is by Coca Cola product “new coke” in the market, upon facing
aggressive competition of PepsiCo challenge “Choice of new generation”. The organization
segmented the market using the attitude of the consumers and the loyal segmentation
approach. It aimed for the consumers having a positive attitude and mindset towards the
Coke brand and the consumers who are loyal to the brand. It targeted the youth generation
mainly, the product is advertised based on the needs and the preferences of the youth
generation. The company organizes various games to engage with the consumers and
promote their sales performance. It attracts the youth generation’s interest. The company
advertises and promotes its products for the target consumers to make a commitment towards
the brand and attract more customers through its innovative taste and smell. The company
uses story telling in order to establish contact with consumers.
The company offers sweet carbonated drinks to the consumers and target the consumer
with age groups -12-30 years. The business organization engages with the consumers and the

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target people which make the brand bring innovations to its beverage items and necessary
improvements. By analyzing the needs and the preferences of the consumers targeted by the
company, it brings necessary changes to meet the changing needs and demands of the
consumers. This helps the company to position the brand and the product in the company and
gain competitive advantage.
New product/services launches or brand management: A success and failure
New product launch success
Apple has launched its new i-phone 11 and i-phone 11 pro features latest technology,
improved screen and better specifications. The company released its prelaunch videos, which
builds excitement among the consumers and create a buzz in the market. This is one of the
most successful product launch tactics used by Apple (Apple.com 2019). The organization
has provided entertaining videos about the product launch and the idea focusing on the
product specifications for the target customers. It educates the consumers about the
functionality of the product items emplacing on the unique product features, in order to add
value to the products offered by the consumers.
One of the major core strategies of the company is to focus on the consumers rather
than on the product. They analyze the needs and requirements of the consumers and
accordingly bring changes in the product features and promote its brand. The advertisements

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of the company focus on the benefits of the consumers on utilizing the product offered by the
company(Apple.com 2019).. Apple tactfully uses this technique to address the needs of the
consumers. It emphasises on easy to carry, simplicity of the products, the style of the product
and its productivity. This is some of the product areas where the consumers are highly
interested in. The company care about the problems and requirements of the products and the
ways in which the product might fit in the lives of the consumers (Moreira et al. 2018). This
has helped the organization to gain huge success in the product launch.
Furthermore, the company has turned the product launch into an event with press
release. The huge press events for the product launch and its announcements make an impact
on the consumers and make its appealing for the consumers as well as the media. This tactics
helps the business organization to reflect on the product sales(Moreira et al. 2018).
New product launch failure
One of the biggest product launch failure was Google glass due to various reasons.
The new product launch failed to live up to the expectations of the consumers. During its first
launch the product had internal failures such as no clear functioning. The product has less
practical use to the consumers (Forbes.com. 2019). It has been identified that the company
failed to analyze the needs and requirements of the consumers before the product launch,
which is an essential element before determining the target audience and promotional
strategies. This marketing principle was overlooked by the company and the product
developers. The product developers lack confidence about the benefits and the significance of
the product. There have been arguments that the product can only be used during specific
times. Therefore the utility of the product to the consumers are very limited (Forbes.com.
2019). The failure of the product also resulted due to bad marketing. The version of the
product was not sold in the retail markets, but only to the glass explorers who failed to benefit

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from the glass features. Some were also of the opinion that the glass looked unattractive and
unappealing. These reasons led to failure of the product launch.