Marketing Plan Assessment 2: Donald B's Market Entry Strategy

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Marketing Plan- Assessment 2
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Contents
Target Market..............................................................................................................................3
Business positioning strategy......................................................................................................3
Marketing Mix Variables.................................................................................................................4
Products and Services..................................................................................................................4
Levels of product.........................................................................................................................5
Pricing..........................................................................................................................................5
Distribution..................................................................................................................................6
Promotion....................................................................................................................................7
Extended marketing mix..............................................................................................................7
References........................................................................................................................................9
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Company Name: Donald B
Target Market
Target market is very important to be considered by any business as they are the people for
whom the products and services are produced. Target market is important to be chosen as the
products and services can be tailored according to the needs of the consumers which make it
easier for the company to sell and market the products. The target market of Donald B will be the
young generation and the children. The buyers between the ages of 10 to 40 will be the main
target market for the company to launch its new products. The target market is appropriate for
the business as these are the people who love to have to cocoa products, confectionary items, and
other such items with their friends and family.
It will be great for Donald B to introduce these products in the Australian market to increase its
market share. For deciding the target market, Donald B can make use of the market’s
segmentation technique. Markets segmentation can be defined as the strategy to divide the target
market on some basis. The whole market is divided I to smaller groups according to their
characteristics. Market segmentation is important for a business as it reduces the chances of
unsuccessfulness of a business (Abril & Rodriguez-Cánovas, 2016). There is an efficient use of
all the resources of business when the market is divided by the market segmentation. Donald B
can divide the whole market on the basis of the Demographics of the whole population. Age will
be the factor, and on the basis of age of the prospective consumers, the market will be decided.
Business positioning strategy
Market positioning is a strategy of the business to make people aware of the business and the
products and services offered by them. It is done to attract potential customers by telling them
about the unique selling proposition of the products. A market positioning strategy is very
effective in launching new products in the market. Donald B can adopt the market positioning
strategy to attract more and more customers and make the sales huge. The market positioning
strategy that Donald B can use is the market positioning by product class and market positioning
by competitors. Both these strategies will help in attracting and inducing the customers to buy
the products. Market positioning by product class is the strategy by which the products are
positioned and introduced as a substitute for other products (Baker, 2016). The candied nuts,
drinking chocolate, Marshmallow can be introduced in the market as the 9instant breakfast and
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substitute other breakfast meals. Another positioning strategy is the positioning by competitors,
in this strategy, the market positioning strategy of the competitors is first taken into
consideration, and then a suitable strategy is made to introduce the products in the market.
Marketing Mix Variables
Products and Services: Product is the first element of the Marketing Mix. Products can be
tangible or intangible. The intangible products are called the services. Products and services can
be defined as the bundle of utilities that are offered by the seller, and the buyer pays the price for
it. Products and services are very crucial to be considered by a business as they are offered to the
customers and decided the future of the business. Donald B wants to enter the new markets of
Australia by introducing cocoa products, confectionary items, glazed fruits and other such
products. The company has decent goodwill in the market; this will assist the company in
introducing the new products very easily. The company can offer some services as well. The
company can innovate the selling of the products by taking orders from the customers and
making the products as per their taste and choice. It will encourage customers to get the
products purchased. The personalisation of the products will help the company to induce the
customers to buy the products from Donald B.
After sale services can also be provided to the customers so that their loyalty with the company
increases. After sale services will also help the business to make improvements in the products,
customer feedback can also be collected. By getting the valuable feedback from the customers,
the products and services can be enhanced, and the products can be tailored according to the
needs of the customers (Išoraitė, 2016). Feedback collection is a good strategy to beat customers.
It is important that the products are offered to the customers in an effective way. When the
products are offered in an attractive way, the customers are motivated to purchase the products.
For offering the new products introduced by Donald B, the business can collaborate with Coles
and Woolworths. These two are the largest retail chain stores in the country. When Donald B
sells its products through these retail stores, it will create a good impression on the minds of the
customers. Donald B can also establish speciality stores to sell the products. Establishment of
speciality stores will require huge funds, so initially; selling through retail stores will be more
profitable for the business.
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Levels of product
A product has three levels. All the products are manufactured by considering these three levels.
The basic three levels of products add value and increase the utility for the customers. The first
level of the product is the core customer value. Core customer value is the level of the product
which defines the core utility of the products. The core customer value is the reason for the
production of the product. In the case of Donald B, the manufacture of chocolate drinks,
marshmallows and confectionary items will provide a substitute for breakfast items. This will
help the company to provide utility to the consumers (Morgan, et. al., 2016).
The second level of the product is the actual product. The actual product is the main product and
benefits provided to the customers. The actual product includes the manufacturing, packaging,
features and designing of the products. In the case of Donald B, the actual products are the
glazed fruits, candied nuts, candied popcorn and other such items. The packaging and taste of the
products are very important to attract the customers. The raw material used in the manufacturing
of the products must be of very good quality to ensure that quality and safety standards are
maintained.
The third level of the product is augmented products. The augmented product is the level of
product which is associated with the additional benefits that are provided to the customers. For
Donald B, the third level of products is the personalisation of the products. The company can
offer products which can be modified as per the wish of the customers. The after-sale services
lime feedback form can also be provided to the customers. Seasonal discounts are the additional
benefits that can be provided to the customers.
Pricing
Price is the value of money that the buyers are ready to pay for the utility provided by the
products and services. Customers are price sensitive; they switch to the products which are less
pricy. Thus, it is important for the business to take the pricing decision very effectively so that
the customers are benefitted as well the as the firm earns profits (Hu, et. al., 2015). There are
several techniques or strategies that can be used by Donald B to decide the prices of the new
products that will be launched. The most suitable pricing strategy for Donald B is market
penetration. As there are a lot of competitors in the market who produces the substitutes, it will
be advantageous for Donald B to keep the introductory prices low (Liu, et. al., 2019). When the
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prices will be lower, the buyers will try and purchase the products of Donald B. Once the buyers
are made aware of the quality of products, the prices can be kept higher. This will make it easier
to attract price-sensitive buyers. The pricing strategy will help the firm to make high profits in
the introductory stages as well as the sales will increase due to the low prices of the products.
The demand of the products is directly related to its prices. When the company keeps the price
low, the demand for the products increases. This helps in enhancing the sales of the products.
Donald B can increase the prices of the products once the customer loyalty is created. This will
help the firm to earn high profits and also beat the other competitors in the market (Wu & Li,
2018).
Distribution
Distribution is another very important decision that is taken by the business. By deciding the
distribution strategy, the firm can take the decision to make the products available to the ultimate
consumers. The distribution strategy must be effective so that the customers can get the products
at the right time and the right place (Datta, et. al., 2017). Distribution decision provides time and
place utility to the consumers. There are three different ways by which products can be
transferred to the buyers. The first channel is the zero or direct channel. Zero channel or the
direct channel is the one by which the products and services are directly transferred to the
buyers. The next channel is the one level channel in which there is an agent or retailer between
the manufacturer and the buyer. The third channel is called the multi-level channel of
distribution. This is the channel in which there are one or more agents between the
manufacturer, retailer and the buyers.
For Donald B, the use of either zero level or one-level distribution channels is advantageous. As
the products manufactured by Donald B are of perishable nature, the channel must be short so
that they are immediately consumed. For the zero-level distribution channel, Donald B can
establish speciality stores in some mall or the area that is preferably visited by the target
customers. The company can also use the one-level channel of distribution for that Coles and
Woolworths can be used as retailers. Both these stores have high goodwill in the market. The use
of retail stores is good for Donald as it will save the cost of Donald B to establish the speciality
stores. Once the products are accepted by the target market, speciality stores can be opened by
the company.
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Promotion
Promotion is the way by which the products and services are marketed by the company.
Promotion decision is crucial to be taken by the firm as when the promotion is good, more and
more customers are attracted towards the products and services. Promotion of the products can
be done in many ways. Products can be promoted by print media, social media or the visual
media. Advertisements induce customers to purchase their products. As the products offered by
Donald B are eatable, it is beneficial for the company to promote the products by the use of
visual media like television. Other types of print media like pamphlets and posters can also be
used to tell the customers about the location of the retail stores. Promotion of the newly
introduced products can be done by free samples. All like free samples. The customers can be
made aware of the taste and quality of the products of Donald B by giving them free samples to
taste (Key & Czaplewski, 2017). The promotional strategy will help the firm to introduce the
products in the market and encourage the target customers to buy the products. Social media is
preferred and used by almost all the people of the country. Big business houses make effective
use of social media to market and promote their products. Donald B can also use social media
platforms like Instagram and Facebook to make people aware of the new products launched by
the business (Stead & Hastings, 2018). Social media marketing is the best way to promote and
advertise products in this modern business scenario. It is also important for the business to check
and measure the effectiveness of the promotional strategies by effective tools. Return on
investment and social media matrix can be utilized to review the effectiveness of the strategy.
Extended marketing mix
The extended marketing mix includes the additional 3 Ps of the marketing mix. There are
generally 4Ps of the marketing mix, but there are 3 more Ps that are identified for the products.
In the case of Donald B, the additional elements of the marketing mix are enumerated beneath:
People: People are the elements of the marketing mix which includes the people who
make direct contact with the customers to deliver the products. The employees and the
sales people are very important to be taken care of by the company. Donald B’s sales
people and employees must be of good communication skills so that they can convey the
quality of the products and interact with the customers effectively. The employees must
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also have a neat and tidy appearance as customers purchasing eatables wants that hygiene
is maintained in a good manner as it is related to their health.
Process: Process is the next additional feature in the marketing mix of a product. Process
described the way or system through which the products are delivered to the ultimate
consumers for consumption. The process by the products that are manufactured also
included under this head. The production process of Donald B is very simple. All the
products are handmade with simple ingredients. The products are transferred to the
customers by using the simple method of direct transfer (Liu, et. al., 2017).
Physical: The physical appearance of the store in which the products are sold is also
essential to be taken in to account by the company. It is important that the store has an
appealing theme and is attractive to the customers. The retail store or the speciality outlet
by Donald B must have a good fragrance so that when a customer enters the store, the
fragrance can attract the customer. The store must have well-arranged racks and shelves
so that all the items can be easily displayed to the customers. It is important that the store
is well lit and ventilated.
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References
Abril, C., & Rodriguez-Cánovas, B. (2016). Marketing mix effects on private labels
brand equity. European journal of management and business economics, 25(3), 168-175.
Baker, M. J. (2016). What is marketing? In the Marketing Book. pp. 25-42. Routledge.
Datta, H., Ailawadi, K. L., & van Heerde, H. J. (2017). How well does consumer-based
brand equity align with sales-based brand equity and marketing-mix response? Journal of
Marketing, 81(3), 1-20.
Hu, M., Li, X., & Shi, M. (2015). Product and pricing decisions in
crowdfunding. Marketing Science, 34(3), 331-345.
Išoraitė, M. (2016). Marketing mix theoretical aspects. International journal of research
granthaalayah, 2394-3629.
Key, T. M., & Czaplewski, A. J. (2017). Upstream social marketing strategy: An
integrated marketing communications approach. Business Horizons, 60(3), 325-333.
Liu, J., Zhai, X., & Chen, L. (2019). Optimal pricing strategy under trade-in program in
the presence of strategic consumers. Omega, 84, 1-17.
Liu, Y., Li, K. J., Chen, H., & Balachander, S. (2017). The effects of products’ aesthetic
design on demand and marketing-mix effectiveness: The role of segment prototypicality
and brand consistency. Journal of Marketing, 81(1), 83-102.
Morgan, F. W., Becherer, R. C., & Richard, L. M. (2016). Product Trial and Product
Usage: Bases for a Strategic Segmentation Framework. In Proceedings of the 1979
Academy of Marketing Science (AMS) Annual Conference. pp. 306-308. Springer, Cham.
Stead, M., & Hastings, G. (2018). Advertising in the social marketing mix: getting the
balance right. In Social Marketing (pp. 29-43). Psychology Press.
Wu, Y. L., & Li, E. Y. (2018). Marketing mix, customer value, and customer loyalty in
social commerce: A stimulus-organism-response perspective. Internet Research, 28(1),
74-104.
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