MRKT20052 Assessment 2: Marketing Plan for Patch Bandages

This report details a marketing plan for Patch, a company that utilizes natural adhesives from bamboo in its bandages. It begins with an executive summary and then provides a thorough situational analysis using PESTLE and SWOT frameworks to assess the external and internal environments. The report identifies the company's strengths, such as its eco-friendly products, and weaknesses, including its newness in the market. Opportunities include replacing traditional bandages and targeting the Australian market, while threats include competition and environmental regulations. The report also analyzes the target customer segment, marketing mix, and challenges, such as consumer adoption and distribution issues. Objectives and campaign evaluation methods, like ROI and sales numbers, are also addressed. The plan aims to promote Patch's natural bandages and establish a competitive advantage in the Australian market.

Marketing Plan

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Executive Summary
Natural products are welcomed all across the globe irrespective of the industry they are in.
This report is going to showcase the internal and external analysis of the company patch
which is using natural adhesives from bamboo. It was found that external environment
supports the company while the internal environment analysis shows that strength of the
company being a natural product company while its weakness include being new in the
market. They have the opportunity to transform the traditional bandage market by replacing
the traditional bamboo market with the help of bamboo adhesive used bandages. This report
also illustrates the potential market segment of the company where it was found that company
will target people that are young and are lovers of natural products. Consumer adoption, Lack
of awareness, Distribution and Higher cost of operations are some of the challenges that
company will have to face when reaching to the customers in Australia. The marketing mix
for the company is also provided in the report which suggests that prices of the products
needs to be slightly on the lower side when compared with competitor’s products. For
evaluation return on investment and sales numbers can be effective measures.

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Content
s
INTRODUCTION......................................................................................................................2
Situational analysis.....................................................................................................................2
Customer analysis......................................................................................................................4
Problem Statement.....................................................................................................................4
Objectives...................................................................................................................................5
Marketing mix strategy..............................................................................................................5
Campaign evaluation..................................................................................................................6
Budget Allocation......................................................................................................................7
Conclusion..................................................................................................................................7
References..................................................................................................................................7

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INTRODUCTION
In the modern day business the role of marketing becomes very much essential. This makes it
necessary for the management to have a marketing plan that can help a company in achieving
the marketing objectives. For this, it is necessary that firm finds the ways in which an
organisation is dealing with the challenges in the marketing. On the basis of the external and
internal environment a company needs to design their marketing plan that can help them in
becoming the best in the industry. Strategies must also be designed within the organisation
based on this marketing mix. Natural bamboo adhesives are excellent replacements for
traditional bandages all across the world. Patch was established by James Dutton in the year
2016. Patchstrip Company needs to design a proper marketing plan for it so that it can be
promoted in front of larger numbers of people (Patchstrips, 2019). This report is going to
illustrate the marketing plan for the Natural bamboo adhesive which is a product of the patch
strip firm.
Situational analysis
It is critical for any company to analyse the environment that is surrounding their business.
Environmental analysis allows a firm to understand the strategies that they could apply so as
to ensure that strategies are according to the market dynamics and requirements of the
industry.
For external environment analysis PESTLE analysis can be used.
 Political: Government in Australia is promoting the products that are eco-friendly and
they are forcing companies to bring innovations that can promote sustainability at the
workplace. Subsidies are also given to the companies that are working on the natural
and sustainable products.
 Economic: The economic environment of the world is changing and this is promoting
products that are available at the lower cost. At the same time, they also ensure that
product that companies sale has to be eco-friendly so that firms will not have to invest
money on their disposal and waste management (Kotler, Burton, Deans, Brown &
Armstrong, 2015).
 Social: Society is demanding for various types of alternatives for any products
especially in terms of the medication facilities available. The natural products are

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welcomed in every part of the world especially when it comes to management of
operations. A product that is available at the lower cost and provided environmental
benefits are welcomed by the society. Innovative products are welcomed by most of
the customers.
 Technology: Technology is playing a major role in the success of the business hence
it is critical that it is utilised in different aspects of business especially the marketing
done by the company. Higher the use of technology higher is the chance that they
could reach to larger numbers of people (Chen & Chai, 2010). Technologies such as
social media technology can be used to build a campaign where there is social
initiatives taken to design a marketing that can promote more and more people to use
this product.
 Legal: Legalities in the areas such as bamboo production and bamboo utilisation is
legally scrutinised. This legal scrutiny has a deep down impact on operations of the
firm. Legalities have also become strict in terms of the ways in which companies are
reaching to its consumers.
 Environmental: This product has a direct impact on the environment as the raw
materials for this is obtained from bamboo. This makes it difficult for the
management to have an understanding of the environmental factors and the litigations
related to environment that will have impact on the operations of the firm (Wang &
Davidson, 2010).
In order to understand the internal environment of the Patch it will be effective to utilise tools
such as SWOT analysis.
Strengths
 They are using natural adhesives in their product hence making it eco-friendly product
which gives sustainable competitive advantage to the firm.
 The product of this company is innovative hence they will have not had to face any
special kind of competitive rivalry. Since the product is unique hence it has greater
capability to adopt first mover strategy in various parts of the world (Smith, 2010).
 Since this is an innovative product hence it will be easier for the company to reach in
the new markets. This will enhance the company’s revenue source which is very
much critical for the management in the modern day competitive environment.
Weaknesses

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 This company is new in the industry hence they will face to face challenges related to
competition which is not good for the company as the brand awareness for this
company is on the lower side.
 Since the product is also new in the market hence reaching with it to the people is a
difficult for the company as they will have to convince people about the product that
is sold by the company to its customers.
 This company does not have strong brand image which will have impact on the
marketing of the firm. This is because company will have to invest a large numbers of
the money on the brand building efforts and might take a lot of time in the consumer
adoption process.
Opportunities
 This firm has huge opportunities at the global levels. This is because the firm will
have chances to replace the traditional bandages which give this company a huge
opportunity at the global levels.
 The opportunity in terms of the fact that there are many rural areas in the Australia
where the bigger pharmaceutical companies have not been able to reach and hence
this firm can reach to these places so as to create a market for them.
 They also have opportunities in terms of sustainability as the product that is available
with the firm is environmentally sustainable. This also gives the company with
additional benefits. Opportunities are available in terms of becoming the market
leader in the bandage industry (Dibrell, Craig & Hansen, 2011).
 They also have opportunity in lowering the down the overall cost of the bandages all
across the glove as bamboo adhesives are not very much expensive and are easily
available.
Threats
 They are also facing threats in terms of fact that environment sustainability related
laws are getting strict in all parts of the world hence cutting down the bamboo for
gaining the required raw materials is not easier for the firm.
 Threats is also in terms of the fact that their idea can be copied by any of their rivals
who have big resources hence managing intellectual property right is not easier for the
company which will have direct impact on the way an organisation can achieve
maximum benefits from their innovative products (Mishra & Sharma, 2014).

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Customer analysis
In any marketing campaign it is critical that company identifies the customer segment they
want to target and the way they position themselves is equally important for gaining success.
Segmentation, targeting and positioning is an approach where companies segments their
overall market and on the basis of it they target the customers that they find is most suitable
for their product. The positioning is done by the company on the basis of this customer
segment as it increases the chances of sales.
The potential customer segment for this product will be people from all age group in the
Australian market. This is because this product can be used by any people. They are also
targeting medical practitioners that suggest the bandages for others. However the people that
this company is targeting are the people that are of young age or the people that are having
lesser expenditure power. This is also because the target segment that this company are more
excited and they are more likely to get hurt for which they need new kinds of bandages that
are available at lower cost and more natural (Yeon Kim & Chung, 2011). More specifically
they can target people that love natural products. It is also seen that in the rural areas
especially in the emerging countries people do not have enough money to purchase the
expensive bandages.
For targeting this customer segment the positioning strategy that this company can use is to
place them as a product that is available at lower cost and are of higher quality. They also aim
to position them as a company that is able to achieve the competitive advantage over the
rivals because of the type of product that is available with them. The positioning should be on
the basis of the basis of the fact that they have products that is natural and allows gaining
competitive advantage over the rivals. The positioning statement for the company could be
“A natural way of healing your wounds”.
Problem Statement
In any marketing plan it is critical to know the areas where the problem is bigger. The
problem statement suggests the problems that this firm in the Australian market. This can be
understood in terms of the fact that problem statement is increasing hence they need to design
the marketing plan accordingly.
 Consumer adoption: Australia is one of those societies where the consumer adoption
process is lengthy. This is because people do not trust new products so early. People

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generally trust the products which they have been trusting in the past. This is having
impact on the way an organisation is dealing with the customers when it comes with
new products.
 Lack of awareness: It is to be understood that there is lack of awareness in the
Australian market about the fact that bamboo adhesives can be one of the best
replacements for the traditional bandages used by the people (Armstrong, Adam,
Denize & Kotler, 2014). Generating awareness for all these people can be a difficult
job especially in the rural areas. This calls for awareness through all the possible
media channels.
 Distribution: It is also to be understood by the fact that the distribution network of this
company is not so big and the company lacks in terms of the larger numbers of local
partners who have the knowledge of such kinds of products hence this company will
face challenges is distributing the products at the global levels.
 Higher cost of operations: In Australia there is problem related to higher cost of
operations. Due to this, the overall cost of product goes on the higher side (Sarkar,
2012). This is going to have impact on the idea with which this company is bringing
their products. On the other hand Australian taxes are also increasing in the time when
the global market is facing many kinds of economic challenges.
Objectives
In the marketing plan it is critical to set objectives. It is this objective that company sets for
its marketing that helps a firm and its employees to move in a particular direction and on the
basis of it they can achieve the desired results within a firm. The objective for the firm
includes:
 To enhance the sales of the company by 40% by the end of 2021.
 To increase the brand awareness by 30% till the end of 2021.
 To enhance the profit margins by 20% by the end of 2021.
 To have more than 5000 distributors within the market that will actually increase the
reach of the company in the Australian market.
Marketing mix strategy
In the success of the marketing plan the role of marketing mix strategy is very much critical.
This is because it will help the companies to make sure that they are able to target right

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customers with right kind of offers. There are several factors that ensure the success of the
company in the Australian market. In the marketing mix all these have to be covered. The
marketing mix for the company is as follows:
 Product: The product of the company is innovative and is able to replace the
traditional bandages. Since it has herbal ingredients in it hence it allows them to have
different positioning when compared with other products in the market (Bansal &
Hoffman, 2012). The products will be of higher quality and it will be 100% safe to
use these products irrespective of the type of wounds it is applied.
 Price: It is seen that prices that company has set for their product needs to be lower
than the traditional bandages available in the market. This is because it is the pricing
and quality that can fasten the acceptance of the product which is one of the major
issues in the Australian market. Lower pricing will also ensure that company will be
able to make the product feasible for as many customers as possible. Company can
also take use of bundle pricing where they can lower the prices of the overall product
if it is ordered in a bundle or in large numbers.
 Place: This Company can sale its products with the help of distributors in the market
and also with the help of the digital mediums. The digital mediums will ensure that
products can be obtained from any place. However the help of the distributors the
company will be able to reach to reach to maximum numbers of people.
 Promotions: The promotional campaign that needs to be used by the company should
focus the company’s aspect of natural product. For this they can utilise the digital
mediums such as social media so as to ensure that promotions are done on the regular
basis. The promotional strategy that will be used by the company is more tilted
towards the more use of data technology. Company must ensure that they run
campaigns at the ground levels that can motivate people to adopt the natural
bandages.
Campaign evaluation
It is critical for the marketing management of the company to ensure that they have an
evaluation mechanism that ensures the marketing plan is going according to the pre-plans. In
case of any faults in the campaign, it can be evaluated and accordingly they can re-design
their overall campaign so as to make sure that effectiveness in the marketing campaign is

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maintained. There must be continuous evaluation of the campaign to ensure that company do
not fail to address the marketing objectives at any point of time.
Effectiveness and control measures
 Return on investment: This is a good measure to make sure that marketing plan is
going according to the plans of the company. Higher the return on investment the
better is the marketing campaign. This is because it is ultimately the results that
matters nothing else (Charter & Polonsky, 2017).
 Sales numbers: Sales numbers is another effective measure to measure the sales
growth. This can be understood in terms of the fact that higher the sales growth of the
company better is the marketing campaign. It also depends on the numbers of
customers that actually converted into the actual customers from potential customers
after watching the marketing campaign (Tiwari, Tripathi, Srivastava & Yadav, 2011).
Contingency actions
 Taking help of experienced employees who can actually help other employees as well
to achieve desired benefits.
 Making the plan B ready.
 Training all the employees so that implementation process becomes simpler.
Budget Allocation
The budget for the next three years for the company is provided below:
Activities 2019 (In Dollars) 2020 (In Dollars) 2021 (Dollars)
Direct marketing 17000 15000 16000
Sales marketing 11000 20000 16000
Traditional
advertisement
43000 25000 10000
Social media marketing 10000 11000 20000
Digital marketing 6000 26000 40000
Total 87000 97000 102,000

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Conclusion
From the above based report it can be concluded that Bamboo adhesive based bandages are a
unique and innovative. The situational analysis shows that the product fits the external
business environment especially in terms of the social and legal environment within the
country. Being a natural product is its biggest strength while weakness include lower brand
image. They have opportunity to replace the traditional bandages. However threat lies in
terms of copying the idea by the competitors. They are targeting people that are young and
are tilted towards using natural products. They need to set the pricing towards slightly lower
side when compared with their competitors.

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References
Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of marketing. Pearson
Australia.
Bansal, P., & Hoffman, A. J. (Eds.). (2012). The Oxford handbook of business and the
natural environment. Oxford University Press.
Charter, M., & Polonsky, M. J. (2017). Greener marketing: a global perspective on greening
marketing practice. Routledge.
Chen, T. B., & Chai, L. T. (2010). Attitude towards the environment and green products:
consumers' perspective. Management science and engineering, 4(2), 27.
Dibrell, C., Craig, J., & Hansen, E. (2011). Natural environment, market orientation, and firm
innovativeness: An organizational life cycle perspective. Journal of Small Business
Management, 49(3), 467-489.
Kotler, P., Burton, S., Deans, K., Brown, L., & Armstrong, G. (2015). Marketing. Pearson
Higher Education AU.
Mishra, P., & Sharma, P. (2014). Green marketing: Challenges and opportunities for
business. BVIMR Management Edge, 7(1).
Patchstrips, 2019. Our Story. Retrieved from: https://patchstrips.com/pages/about-us
Sarkar, A. N. (2012). Green branding and eco-innovations for evolving a sustainable green
marketing strategy. Asia-Pacific Journal of Management Research and
Innovation, 8(1), 39-58.
Smith, K. T. (2010). An examination of marketing techniques that influence Millennials'
perceptions of whether a product is environmentally friendly. Journal of Strategic
Marketing, 18(6), 437-450.
Tiwari, S., Tripathi, D. M., Srivastava, U., & Yadav, P. K. (2011). Green marketing-
emerging dimensions. Journal of Business Excellence, 2(1), 18.
Wang, Y., & Davidson, M. C. (2010). Pre-and post-trip perceptions: An insight into Chinese
package holiday market to Australia. Journal of Vacation Marketing, 16(2), 111-123.