MRKT20052 Marketing Plan: Disrupt Sports Analysis and Strategy

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This report presents a comprehensive marketing plan developed for Disrupt Sports, a company specializing in customized sports equipment. The plan begins with an executive summary and introduction, providing an overview of the business and its objectives. A thorough situation analysis is conducted, utilizing the 5C's framework to evaluate customers, company, competitors, collaborators, and climate. SWOT and PESTEL analyses are employed to assess internal strengths and weaknesses, as well as external opportunities and threats, considering political, economic, social, technological, environmental, and legal factors. The report identifies the target market as young people, and it outlines a marketing mix strategy encompassing product, price, place, and promotion. Digital marketing communication strategies, including email marketing, social media management, and content marketing, are evaluated. Budget allocation and campaign evaluation are also included, concluding with recommendations for monitoring, controlling, and achieving competitive advantages. The report aims to enhance Disrupt Sports' market share and revenue through strategic marketing initiatives.
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MRKT20052: Marketing Management and Digital Communications
Term 2, 2019
Assessment 2: Marketing Plan
<<Disrupts sports>>
<<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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Executive summary
This report is conducted for developing the marketing plan for the disrupt sports business. in this
report the competitive assessment is done for identifying the competitive position of sports
equipment’s in market. SWOT evaluation is conducted for assessing the internal and external
conditions in context of disrupt sports. The target will be the young people for selling the
products to customers. the various approaches are adopted in the marketing plan which are
related to campaign regarding social media , placement, earned media and paid media. It is
effective for the business to achieve competitive advantages. The implementation of various
digital marketing communication were evaluated for disrupt sports like e-mail marketing, social
media management and content marketing. It is analyzed that the monitoring and controlling tool
is effective for the growth and increasing the revenue and satisfying the needs of customers.
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Contents
Introduction......................................................................................................................................3
Situation analysis.............................................................................................................................3
Customer analysis............................................................................................................................7
Problem statement...........................................................................................................................8
Objectives........................................................................................................................................8
Marketing mix strategy....................................................................................................................8
Campaign evaluation.......................................................................................................................9
Budget allocation...........................................................................................................................10
Conclusion.....................................................................................................................................10
Reference.......................................................................................................................................11
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Introduction
Disrupt sports is a business that deals with sports equipment. It is a sports industry that provides
goods with disruptive technologies and forward-thinking. It was founded by Gary Elphick in
2014. The main aim of founder is to provide customized sports equipment. He had grown his
business with his team by expanding the product line from surf to skate. Their belief is that in
sports equipment every individual has different needs and does not want to buy mass-produced
gears as they do not suit them. He had started with the innovative idea for living, creating and
innovating the equipment (Kotler, 2006). They design the sports gear in a unique and meaningful
design. They think of individuality power and with the help of sports they want to celebrate
creativity. The product categories which are available for customization are Disrupt surf, disrupt
skate, disrupt snow and disrupt yoga. Disrupt sports manufacture the equipment’s on-demand.
Situation analysis
In any business, it is necessary to analyze the situation and position of the business in the market.
Situation analysis includes the analysis of 5C’s which includes the customers, company,
competitors, collaborators, and climate.
SWOT analysis of disrupt sports
SWOT-analysis helps in analyzing the market situation of disrupt sports. Strengths and
weaknesses include the internal environment and opportunities and threats help in analyzing the
external environment.
Strengths
The strengths are customized equipment according to the customers’ requirements. They have an
excellent sales staff carry full information and knowledge about the products. They always try to
maintain good relationship customers and internal communication with the employees. Disrupt
adopts successful marketing strategies for promoting the brand in market. They provide a high
quality of products to customers (Wu, et al., 2010).
Weaknesses
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The weaknesses of the Disrupt sports business is the competitive disadvantages which the
company has in the Australia market. They have a small portfolio of sports concentrated in a few
categories for customizing sports products. Disrupt sports deal in limited and only local
distribution networks and require huge resources in stock to customize the products (Pope, et al.,
2009).
Opportunities
Disrupt sports company has similar products in the market. They have an opportunity to build
loyal customers. disrupt sports has an opportunity to satisfy the number of customers as per their
needs. they can analyze the market condition for analyzing the growth opportunities. It is a trend
in the market to purchase customized products (Wu, et al., 2010). Expansion is the option to
disrupt sports. They can start the partnership and alliances with the sports companies and brands
to produce the products on demand according to the needs of customers.
Threats
Disrupt sports business and products have a threat to competitors. It is necessary for the business
to build the confidence of consumers towards sports products. Updated and new technology is a
threat to the company and the economic conditions. Analyze the market conditions of different
markets. It is required to analyze the needs of global customers.
PESTEL Analysis of Disrupt sports
Strategic management is essential for every business as it refers to analyze the macro-
environmental factors it includes the political, economic, social, technological, legal and
environmental factors.
Political factors
Any business revenue and profitability are affected by government policies. Policies include the
rules and regulations which impact the economy, buying behavior of consumers and the laws for
international trading. Disrupt sports deliver the products globally and provide free shipping all
over the world. but they have to follow the rules and regulations to manage the business in
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Australia. Every country has its own political regulations which include the import and export od
the products.
Economic factors
Economic factors include the impact of economic forces on the success of the business. it
includes the macroeconomic factors like interest rate, exchange rate, inflation rate as these affect
the business and the economic cycle as it helps in analyzing the aggregate demand and
investment in the economy. Economic factor in disrupt sports includes the growth rate, inflation
and the economic rate (Williams, 2006). Exchange rates must be considered for delivering the
products from a host country to government intervention in the services related to customers and
the free market.
Social factors
Social factors include the behavior of consumers as consumers attracted to the product with
brand awareness. It is necessary for the business to create brand awareness in the market. The
reference of the customer changes with time and it is required to fulfill the needs of the
customers. Market research is important to analyze the preferences of the customers. it is
necessary for business to collect feedback from customers when delivering the products online to
customers globally.
Technological factors
Technological factors include the way of producing, distributing and creating awareness of the
products and services. It includes the adoption of the latest technology for producing the
products and communication infrastructure. The analysis of competitors' technology and
development helps the business is growing by adopting effective technology. It is analyzed that
the technology impacts offerings the products in market (Kaura, et al., 2015. In providing the
services to customers, it impacts on the value chain structure of the company.
Environmental factors
Environmental factors include maintaining environmental standards in the business. it is
necessary for a business to consider the weather conditions, laws for regulating pollution,
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attitudes towards and supporting renewable energy. It is necessary to consider the environmental
factors of recycling the products (Kotler, et al., 2015).
Legal factors
In Australia, the legal environment is easy for companies to expand their businesses and run the
business effectively. It is necessary to disrupt sports to provide and follow the rules and laws
which are related as it will help in avoiding the legal compliances within the country.
Competitor’s analysis
Threats of new entrants
In Australia, the threats related to new entrants are relatively very high. A new entrant comes
with innovative and implements new techniques for sports equipment.it creates the complexities
for the disrupt sports products. The adoption of low-cost strategy by new entrants can decrease
the sale of the business. it is necessary for the company to create strategies for reducing obstacles
and creating effective strategies for protecting the edge of rivalry (Kotler, et al., 2006).
Bargaining power of suppliers
In the sports equipment industry, there are various companies that supply the equipment. it is
analyzed that the suppliers reduce the margin for the leading positions. In the leading position,
the suppliers can reduce the margins. It is required to adopt the practice of an effective approach
in the business.
Bargaining power of Buyers
It is easy for buyers to Disrupt sports equipment to switch to different suppliers. It helps in
creating the weaker force regarding the bargaining power of the supplier. The bargaining power
of buyers is considered weak in sports retail industry (Wu, et al., 2010).
The Threat of Substitute products
Sports equipment is available in market and the substitutes of the sports equipment are not
available in market for customers.
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Rivalry among the competitors
In the sports customization industry, the competitors are coming with new and innovative
products for attracting and purchasing the products. It is necessary for the business to reduce the
various costs for reducing the prices of the products. Competitors are offering products at low
prices. In order to grow and become a market leader, it is required to achieve a competitive
position in the market (Goi, 2009).
Customer analysis
Disrupt sports deals in the sports equipment, the target segment of the business is the young
people. Young people are more attracted to water sports. Segmentation, targeting, and
positioning of the business in the market
Types of Segmentation Segmentation Criteria Disrupt Sports target
segment
Geographic Region Australia
Density Rural/Urban
Demographic Age 16-80
Gender Male and female
Income Middle and Low
Occupation Workers, students, and
employees
Behavioral Benefits sought Time-efficient and cost-
efficient people
Degree of loyalty Switchers and Hardcore loyal
User Status Involvement in sports
activities
Psychographic Lifestyle More adventures and
involvement in sports like
surfing.
Social Class Each type of society
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In order to attract the customer, the targeted time and money is a significant strategy for the
marketing of the Disrupt sports business. it is necessary for making and opening the outlets in
other locations by analyzing the market where the water sports equipment is required by the
customers. It is beneficial for the company to focus on a high amount of customers for attaining
competitive advantages in the market (Rafiq and Ahmed, 2000.
Problem statement
The product will face the problem in the Australian market to create positioning and attract the
customers as it is time-consuming for ordering and customizing the product as per the
requirement of the products. The prices are high or the customized products so the consumers
will choose the product from other retailers according to their requirements (Heslop and Nadeau,
2010). It is essential to analyze the market before entering into the market for introducing the
product and analyze the effective marketing strategy and promoting the product.
Objectives
In the marketing plan to disrupt sports, the main objectives of the business can be to adopt
effective strategies.
Specific: The main aim of the company is to enhance the market share of the business in
Australia by 10%.
Measurable: The revenue can be enhanced by the company by 20% until the end of 2020.
Attainable: the aim of reaching the goal of the business on the basis of technological medium.
Realistic: Disrupt sports can aim to expand the business by the sale of 5% till next year.
Time-bound: Disrupt sports are planning for improving their loyal customer base by 12%.
Marketing mix strategy
The marketing mix includes the set of actions that helps in promoting the brand and product in
the Australian market. 4 Ps, include the product, promotion, price, and place.
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Product – the products of the disrupt sports include surfboards, bikes, yoga mats and fitness
equipment, snowboards, and TT tables and many more other sports equipment. Customized
sports equipment is available or customers to use for sports activities. Sports equipment requires
the high gear products and business has a plan to have control over the environment of customers
so that they can display the products to customers effectively. wide range of products in the
portfolio.
Price- Sports equipment is highly sensitive in prices and it is necessary for the business to
consider the competitive pricing strategy to grow in the domestic and global market. In the
Australian market, the prices of the disrupt sports products are slightly high in pricing strategy
because of the customization of the products. It is required to change the current competitive
pricing strategy with the new low-cost pricing strategy for attracting the customers (Cravens and
Piercy, 2006).
Place: Disrupt sports business has outlets in the Australia market and provides the service for
delivering the products globally with the free shipping cost. they can plan to expand the business
by opening the outlets in foreign countries with the help of adopting the strategy of the strong
distribution network in the market. The use of effective supply chain will be beneficial for the
company for distributing the products in Australia.
Promotion: Disrupt sports business can use different promotional tools for promoting the product
with the help of sales promotion, advertising, personal selling, and the latest strategy is digital
marketing. It is required in business to focus on content marketing and also the contest based
marketing (Hair, et al., 2008).
With the implementation of 4 P’S marketing strategy effectively, the challenges which the
business can face in the market can be analyzed. It is necessary to implement effective strategies
in order to bring new ideas and products in market. A business must focus on the technology and
the operations of the firm to have better control of the business operations.
Campaign evaluation
For effective marketing, it is necessary to do campaign evaluation which includes the objectives
evaluation on the basis of the metrics like increase in sales, return of investments, decrease in the
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number of errors while customizing the products. Social media campaign strategy can be adopted
by the company as it is a technique which includes the paid media designing, owned media
designing, earned media and social listening plan. Monitoring and controlling of the campaign
is necessary as the feedback and return on investment is required to analyze the market position
(Australia, 2008). By gathering feedback from the customers, it can be used as a tool to gain an
understanding of the real condition about the business and help in analyzing the customer
response about the products. Return on investment is an effective approach as it helps in
evaluating the inflow and outflow of cash. It helps in analyzing the need for the money to spend
on particular areas for achieving the objectives in the market (Goi, 2009). Search engine
optimization is an effective tactic that helps in depicting the content on the websites. the website
must be creative and information must be available for the customers.
Budget allocation
For the expansion and development of the product in Australian market, it is necessary to
allocate the budget efficiently to make the proper use of money and planning the costs. It is
necessary to estimate the cost of the development of products and services. It is necessary to
allocate the budget for promotion of the product in market. The budget is required to be allocated
in online and digital marketing effectively by attracting potential customers for purchasing the
sports equipment. A contingency budget is required to purchase the products for customizing
sports equipment and personnel. The promotion of the product's direct marketing technique will
be beneficial for the business.
Conclusion
In order to conclude the report, disrupt sports can expand their business easily in Australia as
they provide customized products to customers for their satisfaction and comfortability as they
provide the customized equipment as per their size. The objective of the business is to enhance
sales in the global market. It is analyzed that the internal and external environment is efficient in
the business and the issue which they can face is the increase in global competition. The target
segment of the business is young people and sportspersons. They can adapt the strategy for
growth and development by motivating the people to adopt the sports activities in daily life. The
behavior of the customer towards the business is the high involvement behavior and customers
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prefer to have highly customized products as per their requirements. With the reduction in
pricing strategy they can attract more customers globally and can promote the products globally
by using various promotional strategies.
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Reference
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Wedel, M., & Kamakura, W. A. (2012). Market segmentation: Conceptual and methodological
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