MRKT20052 Marketing Management: Marketing Plan for Disrupt Sports

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This comprehensive marketing plan analyzes Disrupt Sports, a company specializing in custom surfboards. The report begins with an executive summary and table of contents, followed by a situation analysis, including a detailed SWOT analysis, assessing the company's strengths, weaknesses, opportunities, and threats. A competitive analysis examines key competitors, while a PESTEL analysis explores political, economic, social, technological, environmental, and legal factors impacting the business. The report also delves into customer analysis, including demographic, geographic, psychographic, and behavioral segmentation. The marketing mix is then discussed, alongside a problem statement, marketing objectives (such as increasing sales and customer satisfaction), and budget allocation. The plan concludes with a campaign evaluation and recommendations for future strategies, providing a thorough overview of Disrupt Sports' marketing approach.
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Running head: MAKETING MANAGEMENT
MRKT20052: Marketing Management and Digital
Communications
Term 2, 2019
Assessment 2: Marketing Plan
<<Insert Product/Business Name Here>>
<<Insert your name and student number>>
Submission date: <<Insert assessment submission date here>>
Word count: <<Insert your word count here>>
Campus (tick one): MEL SYD BNE DST Other (write): ____________
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1MAKETING MANAGEMENT
Executive Summary
This report states about the overview of the product provided by Disrupt Sports. The report also
speaks about the SWOT analysis, PESTEL analysis, competitive analysis and customer analysis
of Disruptive Sports. The company’s budget allocation is also provided in this report. The
marketing mix of the company is also explained. The suggestions of the company are also
provided in this report.
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Table of Contents
Introduction..........................................................................................................................3
Situation Analysis................................................................................................................4
SWOT Analysis...............................................................................................................4
Strength............................................................................................................................4
Weakness.........................................................................................................................4
Threats.............................................................................................................................4
Competitor Analysis........................................................................................................5
PESTEL Analysis............................................................................................................7
Political Factors...........................................................................................................7
Economic Factors........................................................................................................7
Social Factors...............................................................................................................8
Technological Factors..................................................................................................8
Environmental Factors.................................................................................................8
Legal Factors...............................................................................................................9
Customer Analysis...............................................................................................................9
Demographic Segmentation.............................................................................................9
Geographic Segmentation..................................................................................................10
Psychographic Segmentation.........................................................................................10
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3MAKETING MANAGEMENT
Behavioural Segmentation.................................................................................................10
Marketing Mix...................................................................................................................10
Problem Statement.............................................................................................................12
Marketing Objectives.........................................................................................................13
Increase the sales by 30%..............................................................................................13
Increasing the customer satisfaction..............................................................................14
Marketing Mix...................................................................................................................14
Campaign Evaluation.........................................................................................................14
Budget Allocation..............................................................................................................15
Conclusion.........................................................................................................................16
Reference...........................................................................................................................17
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Introduction
This report providing and insight Disrupt Sports and its unique strategy for customized
surfboards. This company brought change in the surfing industry. The report states about the
marketing mix, SWOT analysis, PESTEL analysis and the competitive analysis of Disrupt
Sports. The report also speaks about the budget allocation for the company
(boardcave.com.au ,2019). Disrupt Sports deals with skateboards and also other goods which are
related with the adventurer sports. The boards are manufactured with durable products. It is
manufactured mainly in Australia. The company provides the product within four weeks of the
order.
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5MAKETING MANAGEMENT
Situation Analysis
SWOT Analysis
Strength
1. Surfboards sold which have drawings that
directly aid from the artists.
2. Every surfboard is custom made.
3. The durability of the surfboards is very high.
4. The surfboards are made in a different size,
ranging from 2 ft. to 20 ft (Suh, 2014).
Weakness
1. There are many competitors in the market to
rival the company.
2. Unlike the design of the surfboards, the price
is not flexible, and it is expensive (Gürel &
Tat, 2017).
Opportunities
1. The competition is less because the company
does its business in a niche market.
2. The customizable product will help the
company to penetrate the market more (Menga
et al., 2015).
3. The use of the bohemian lifestyle in the
surfing industry will boost the production as a
whole.
1.
Threats
1. There are many competitors in the market,
especially outside Australia who may affect the
company’s sales growth outside the boundary.
2. For the safety purpose, many rules have been
implemented for stopping the sports (Leiber,
Stensaker & Harvey, 2018). These may become
a direct hit to the whole industry.
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Competitor Analysis
Brands Product Information Price of Surfboards Competitive
Advantage
Chili Surf The boards come with
different designs like
Faded boarder.
The price of the board
comes at a cost
between $750 to
$925.
The various models of
the surfboards are
very unique. These
surfboards will help
the surfers to adjust
the different kinds of
wave and the level of
waves (Jones,
Harrison & Felps,
2018).
Maywood This company bring
out the most
aesthetics design
surfboards and are all
handcrafted (Sohel,
Rahman & Uddin,
2014). Recyclable
Australian cedar is
used for creating the
surfboards.
The price of the
surfboards is ranging
from $350 to $700.
The surfboards are
handcrafted and made
from recyclable
Australian cedar. The
price of the surfboards
is very much
reasonable.
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Ocean and Earth The company is the
world’s largest
manufacturers of
surfboards. They
create the most
seasoned brand.
The price of the
surfboards range from
$500 to $900.
The company is one
of the oldest brand in
surfing industry.
Thus, they have more
market control. The
company also has
huge range of
products.
DMS Surfboards The company has
different types of
surfboards, which
provide different
types of surfboards.
The price of
surfboards ranges
from $819 to $899.
The company uses
superior quality of
products for creating
the surfboards
(Kauškale & Geipele,
2017). The design of
surfboards is one of
the most acceptable
surfboards around the
world.
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PESTEL Analysis
Political Factors
The political interference in the company’s governance in Australia is immense. The
government of Australia is the liberalized and capital democracy. The taxes and business
environment are looking after by the government of Australia itself. The surfboard industry is
considered as the niche market industry in Australia. Australian government mainly focuses on
the handcrafted items where the surfboard is not an exception. The computerized design for
surfboards is also promotes by the government of Australia (Londhe, 2014). As the surfboard
industry is the niche market, so the degree of focus and importance of Australian government is
much lesser in comparison to the other industry. Moreover, the government’s banned for surfing
in many beaches created a pressure in the surfing industry. Disrupt sports are creating the
customized surfboards, which in long run will help the company to grow in future.
Economic Factors
The Australian industry is one of the largest economy in the world, which is dominated
by the service and mining industry. Australia holds one of the top spot as the world economy is
concerned. Australia also holds many beaches and hence, the country also promotes surfing
around the world. The demand for the surfboards in Australia is also increasing due to the
increasing popularity of this adventurer sports. The surfboard industry faces some of the biggest
competition from the foreign companies (Smith & Font, 2014). The craftsman of the surfboards
is mainly involved in working in local beaches. Disrupt Sports also uses these kind of surfboards
craftsman for their own business and the company also trying to establish in this niche market.
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Social Factors
Australia has one of the highest numbers of sports lover in the world. These
characteristics of the Australian population help the country’s sport industry to flourish. The
surfing ancestry may be the part of the niche market but it also flourishing due to the sports
loving characteristics of the country. The surfing industry of Australia is mainly flourishing in
the west coast area of Australia. Bondi Beach in Australia in recent times attracting more surfers.
This attraction has provided a flourishing business for surfing company especially Disrupt Sports
(Banerjee, 2017).
Technological Factors
Australia is one of the technological advanced nations in the world. The company
performing their respective business in Australia tends to use the modern technology in the
business. The same technological development is also found in the surfing industry also. The
craftsmanship of the surfing board has changed from the handcrafted to technology used surfing
boats. To meet the increasing the demand of the surfing board in Australian surfing board
companies switching their operational line from handcraft to machine use technology. Disrupt
Sports also evolve their manufacturing process so that they can provide best quality product with
design enhancement (Banerjee, 2017). The technological advancement has led to create the
surfboards, which are scientifically authentic and has the ability to provide best buoyancy.
Environmental Factors
In Australia, environment plays one of the major factors for the industry development.
The new trend for the companies is to moving to the recyclable products. These same trend are
being implemented in the surfing industry of Australia. Disrupt Sports are also using the recycled
products to create the surf boats. These factors gave an extra edge to the company’s goodwill.
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10MAKETING MANAGEMENT
The company had gone for taking the environmental philosophy into account, which leads to the
rise in the goodwill of the company.
Legal Factors
The rules and regulation imposed by Australian government on the companies
irrespective of the industry. Every Australian company or the companies who are doing their
business need to follow the rules and regulations, which are provided by the Australian
government. The west coast of the country also faces some of the special attention from the
Australian government (boardcave.com.au ,2019). Some parts of the west coast also faces ban
regarding the surfing. The East coast of the country is more affected by the banned on surfing.
The ban on Boston beaches faces a complete ban. Some of the beaches in Australia have allowed
for surfing but only with the swimming certificate. These rules and regulations has affected
Disrupt Sports heavily.
Customer Analysis
Customer segregation is one of the important marketing strategies, which almost every
company absorbs in their marketing strategy. The customer segregation helps the company to
concentrate and prioritize every customer (Rozdolskaya et al., 2014). The company tends to
follow any one type of the customer segmentation strategy.
Demographic Segmentation
Demographic segmentation is type of segmentation where the segmentation mainly made
based on the age, marital status, gender, education and occupation. These helps the company to
promote the promote in accordance to the segmentation made by the company.
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Geographic Segmentation
Th geographic segmentation is made on the basis of the geographical boundary, which
includes city, region, country and the state.
Psychographic Segmentation
The company sometimes segment the customer based on the personality factors. These
personality factors include the risk aversion, following principles, lifestyle of the customers and
many more.
Behavioural Segmentation
This is the kind of the segmentation which many company actually follows because it
helps the company to produce the product in accordance with the customer needs. This
segmentation also includes brand loyalty and the customer behaviour towards the line of the
products.
Marketing Mix
Targeting is an advertising technique, which helps the company to segregate the
spectators from the normal visitors of the company’s product. Targeting has the ability ro
increase the campaign’s affectivity. Targeting is also one of the major strategy which is used
while customer segmentation. Targeting follows all the rules of the customer segmentation
strategy, so that the company can gain some loyal customers.
Companies usually use the targeting strategy for enhancing the sales structure. As per
many big companies, the targeting of the customers are usually done by targeting the customers
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based on the product which they have to provide. There are instances where company even push
the single product for all segments.
Positioning is the strategy where the company usually strives for creating a good image in
the mind of the customers. These help the customers to enjoy having a large number of loyal
customers. The positioning of the company also helps the company to increase the customer
base. The positioning involves many attributes like pricing strategy of the product, the packaging
of the product and even the placement of the product (boardcave.com.au ,2019). The promotion
of the product also comes into play which actually helps the company to have extra edge over its
competitors. The communication with the customer plays a vital role in the mind of the
customers. This helps the company to intervene in the market in the most efficient manner.
Disrupt Sport’s potential customers are mainly the young generation and the individuals
who have extreme love for the sports. The targeting customers of the company may be ranging
from the tonnage group to mid adult group. The customers of Disrupt Sport are mainly the
carefree and who holds the love for the adventure sports.
The pricing strategy of Disrupt Sports is very well versed as the company follows the
competitive pricing strategy. Disrupt Sports usually charge the same price for the product as their
competitors. This strategy helps the company to intervene the market more and at the same time
maintains their sustainability in the industry.
`Disrupt Sport introduced the bohemian style surfing board with extra customization
effect. These made the company’s product unique and more acceptable because the company
tends to satisfy the customer more (Usher & Gómez, 2018). The creativity which are
implemented by Disrupt Sport in their product gave an extra edge to the company’s sales
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structure and hence, the company enjoys one of the top position in the market in the surfing
board industry.
Problem Statement
The production and innovation with surfing board led to the advancement of the surfing
board industry in Australia. The Gold coast surfing board workshop led down the workshop of
the surfing board. The main reason to be blamed is the incoming of cheaper surfing board from
the Asiatic country. The demand for the Asian make surfing board has increased and hence the
surfing board workshop is closed down. Previously, Australian are more fond of handcrafted
surfing board. These surfing boards are tagged as the high price and only few were able to avail
them but these changes when the Asian surfing board has entered the market.
Australia’s coastal region is still trying to pick up the surfing market by promoting their
product. The companies are also trying to introduce the modern technology and scientific method
for creation of the surfing board. These products were able to rival the Asian surf boards. The
pricing strategy of the industry has developed. ‘
The increasing popularity of the surfing led to the increase in the surfing board. The trend
for improving the fitness level also adds up to the rise of the adventurer sports like surfing.
Marketing Objectives
Increase the sales by 30%
The strategy for increasing the sale can be analysed by adopting the SMART approach.
They are explained as follows:
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Specific: The Company needs to search for the customers who have fashion for the custom made
surfing boards. These will help the company’s sales structure to increase and hence the company
will gain some loyal customers.
Measurable: The Company can review the sales on monthly basis.
Achievable: The Company need to target the promotion of the product mainly in the coastal
region, which will help the company to target the desired customers
Realistic: The Company needs to set the objective logically, so that the company can fulfill the
objective.
Timed: The set target need to fulfilled within two years.
Increasing the customer satisfaction
This can analysed with the help of SNART objectives. They are as follows:
Specific: The Company needs to focus on fulfilling the customer needs starting from the size of
the board to the painting on the board.
Measurable: The Company can track this monthly.
Achievable: The Company needs to create the design in accordance of the customer needs.
Realistic: The Company needs to set and achieve the objectives.
Timed: The company need to review the whole performance after one year.
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Marketing Mix
Product: The product for the company are custom made. This means that the product will be
made after consulting with the customers. The product can be ordered ranging from 2 ft to 20 ft.
The boards are made using modern technology and good quality ingredients, which in turn
enhance the product quality.
Price: As the company is making the product in accordance with the customer needs, so the
company charges the little bit more than other company’s product.
Communication: The Company usually communicates with the launching events, promotional,
media and web for customization of the product (Proctor, 2014).
Distribution: The Company usually distributes the product thorough retail stores.
Campaign Evaluation
The effectiveness of the strategy includes:
1. The sustainability of the product needs to improve the manufacturing and delivering the
quality of the product.
2. The effectiveness of the pricing strategy should be reviewed, which will help the
company to intervene the market more (disruptsports.com 2019).
3. The effectiveness of the communication strategy needs to be ensured, which will increae
the creation.
The control measures of the marketing plan are as follows::
1. The Company needs to prioritize the customer ffedback
2. The target market need to be tracked
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3. The expenditure of the company need to be monitored
The contingency actions are as follows:
1. The team needs to implement so that the company can attract new customers.
2. The company needs to increase the online presence.
Budget Allocation
The company need to spend maximum amount $5 million for promotion activity and
communication activity. More 10% needs to be used for trade marketing, 20% for web and more
15% for media.
(Budget Allocation)
(Source by Author)
Conclusion
As per the analysis it can be observed that surfing industry is not in a good position in
Australia but Disrupt Sports have some hope as they satisfy the customers more. The revenue
and the profit margin of the company may increase in long run. The pricing strategy and the
promoting strategy can be increased, which will help the company to grow more.
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Reference
boardcave.com.au ,(2019). Retrieved from https://boardcave.com.au/shop/brands/gary-mcneill-
surfboards
boardcave.com.au ,(2019). Retrieved from https://www.boardcave.com.au/shop/brands/dhd-
surfboards
boardcave.com.au ,(2019). Retrieved from https://www.boardcave.com.au/shop/brands/dms-
surfboards
boardcave.com.au ,(2019). Retrieved from https://www.boardcave.com.au/shop/brands/chilli-
surfboards
Suh, J. (2014). Theory and reality of integrated rice–duck farming in Asian developing countries: A
systematic review and SWOT analysis. Agricultural Systems, 125, 74-81.
Gürel, E., & Tat, M. (2017). SWOT analysis: A theoretical review. Journal of International Social
Research, 10(51).
Menga, E., Dan, A., Lu, J., & Liu, X. (2015). Ranking alternative strategies by SWOT analysis in the
framework of the axiomatic fuzzy set theory and the ER approach. Journal of Intelligent & Fuzzy
Systems, 28(4), 1775-1784.
Leiber, T., Stensaker, B., & Harvey, L. C. (2018). Bridging theory and practice of impact evaluation of
quality management in higher education institutions: a SWOT analysis. European Journal of
Higher Education, 8(3), 351-365.
Sohel, S. M., Rahman, A. M. A., & Uddin, M. A. (2014). COMPETITIVE PROFILE MATRIX (CPM) AS A
COMPETITORS’ANALYSIS TOOL: A THEORETICAL PERSPECTIVE. International Journal of
Human Potential Development, 3(1), 40-47.
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Kauškale, L., & Geipele, I. (2017). Integrated approach of real estate market analysis in sustainable
development context for decision making. Procedia Engineering, 172, 505-512.
Pan, W., Chen, L., & Zhan, W. (2018). PESTEL analysis of construction productivity enhancement
strategies: A case study of three economies. Journal of Management in Engineering, 35(1),
05018013.
Londhe, B. R. (2014). Marketing mix for next generation marketing. Procedia Economics and Finance, 11,
335-340.
Smith, V. L., & Font, X. (2014). Volunteer tourism, greenwashing and understanding responsible
marketing using market signalling theory. Journal of Sustainable Tourism, 22(6), 942-963.
Banerjee, S. B. (2017). Corporate environmentalism and the greening of strategic marketing: Implications
for marketing theory and practice. In Greener Marketing (pp. 16-40). Routledge.
Rozdolskaya, I., Evtushenko, E., Somina, I., & Degaltseva, I. (2014). Problem-oriented way and multi-
aspect character of research of innovative management of competitive enterprises at the stage of
global transformations. Life Science Journal, 11(9), 963-970.
Jones, T. M., Harrison, J. S., & Felps, W. (2018). How applying instrumental stakeholder theory can
provide sustainable competitive advantage. Academy of Management Review, 43(3), 371-391.
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