Marketing Strategy and Implementation Plan for NatureCare Products

Desklib provides past papers and solved assignments. This marketing plan details NatureCare's strategies for global expansion.

Developing a Market Plan
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Contents
TASK 1.........................................................................................................................................3
TASK 2.......................................................................................................................................11
References...................................................................................................................................30
References...................................................................................................................................30
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1. Outline how strategic alliances can provide options for marketing opportunities and
include two examples of alliances (also known as cooperative business models) that can be
formed between businesses.
Strategic alliance is a business agreement in which two or more organizations cooperate with
each other for the benefit and work towards common objective (Armstrong, et. al., 2015). It
could be as simple as two companies sharing their technological or marketing resources. With
the help of strategic alliance, any organization can get competitive advantage through access of
partners technological or market resource.
Some examples of strategic alliance are following:-
 Joint venture: This alliance is formed when two parent companies (Company A and Company
B) establish a new child company (Company C). If company A and company B each own 50%
of the company C then its known as 50-50 joint venture,
 Equity strategic alliance: This alliance is formed when any company purchase certain
percentage of another company.
 Non-equity strategic alliance: A non-equity alliance is formed when two or more than two
companies come together and sign a contractual agreement to pool their resources and
capabilities together.
Forming strategic alliance can give economic advantage (Kotler and Armstrong, 2015). You
can reduce the cost and risk by distributing among all members of the alliance. It may also be
used to get access in new research and technologies.
2. Outline how the development of existing products or services can provide marketing
opportunity options for a business, both in existing and new markets. Relate your answer
to relevant diversification strategies from the Ansoff matrix.
Existing product development is a process in which product or services are redesigned,
improved and modified (Leonidou, et. al., 2013). We can get marketing opportunities with the
help of Ansoff matrix.
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This matrix was developed by Igor Ansoff and it’s a business strategy tool and can be used to
get marketing opportunities. There are four growth strategies in this tool including: product
development, market penetration, market development and diversification.
With the help of market penetration strategy we can increase the sale of existing product. We
need to improve order process, marketing it easier to the customer and extend business hours.
Best way to sell your existing product is to attract new customers (Fahy and Jobber, 2015). For
example, footwear brands like Nike, Adidas and Reebok are developing their products and
getting opportunities in new markets worldwide.
Product development is necessary when company has a good number of customers and has the
knowledge that existing market lost the value of this product.
3. Outline how a takeover can create options for marketing opportunities for a business.
The term “Takeover” refers to the control on small firm by a larger firm. Takeover is one of the
important decisions that a company can make in business (Mullins, et. al., 2013). It enhances
business abilities.
There are many reasons why a company chooses to take over another firm:-
 Secure better distribution
 Increase market share
 It eliminates competition
 Provide new marketing strategies
 Overcome barriers to entry in new target markets
 Spread risk by diversification
 Access to new economies
 Defend against a takeover threat
 Increase the Speed of growth
In today’s market, takeover is often seen as increase of the revenue and growth of the company
(Kotler, et. al., 2015). Takeover offer a new window to increase marketing ability for the
company and it also increase the brand portfolio.
4. Outline key information that a franchiser should consider providing when marketing
their franchise opportunity.
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Ans. Franchise is simply a method for expanding the business and selling goods and services
through a licensing relationship (Foxall, 2014). While promoting your franchise it is important
to make a plan so that you can save the cost and time. Following points can be considered by a
franchiser before marketing franchise:-
 Budget: Before marketing franchise, the first important step is setting a budget. The best way
to increase the growth is to set a long term goal (Baker and Saren, 2016). After creating growth
goal, your marketing budget can be developed after measuring the average of the market.
 Narrowing your market: The best way to improve your franchise marketing is to narrow your
prospect profile. Competing with other franchisors is a part of business but for start-ups it will
be very difficult.
 Local: Always prefer local advertisement before marketing in new markets. If you do not do
any local advertisement then you will not be able to get everyone on the place of your business
 Charities: Take your franchise to charities in your area and they will help you to display your
advertisement as long as you agree to give money as a sponsor (Mullins and Larreche, 2013).
This can also be done at local schools and hospitals as well.
 Internet: While marketing your franchise you want to make sure that you use the internet to
your full advantage. You can post you advertisements on different sites even on social media.
With the help of social media you can also promote your business.
5. Outline how a company can use the establishment of a new business as an opportunity
for marketing. Provide an example to illustrate your answer.
Ans. You can get opportunities with the help of new establishment of a business. You need to
focus on your core product. Keep your pitch simple and by knowing who you are will help you
to reach your goals. You can use marketing tool that is best for you and exercise the plan, for
example develop a list of decision making plan and rank yourself in terms of where you would
be in every category.
6. Outline two other marketing opportunity options that a business could choose to
pursue other than options explored in the questions above.
A good business analyse the expectations of the customer and if you find the main cause that
your company and customer both cares about then it can be a magical transformation for your
business (Dibb and Simkin, 2013). You may pursue following marketing strategies to get new
opportunities:-
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A) Online marketing: With the help of internet you may emerge new form of marketing. From
online banners to online pop-ups on websites, you can attract new customers increase the
growth of your business
B) Article marketing: In marketing industry, article can be used as a powerful tool for marketing.
This is very sophisticated form of marketing
7. Explain the importance of the product life cycle concept in marketing. Name and
explain each of its stages.
Just like the human being, a product also has a life cycle. The revenue and profit of the product
can be plotted as a life cycle of the product.
There are five stages in a product life cycle as following:
 Research and development: Company research and develop a new product in the market
 Introduction: Launching the product in the market
 Growth: In this stage sales will be increased
 Maturity: sales will be on the peak and after some time sales will be decreased.
 Decline: Final stage of a product when customers reject the product and company refuses to
invest more money on advertisement.
8. Explain the importance of considering the marketing mix when bringing products or
services to the market.
Marketing mix is a significant tool for creating new marketing strategy. Marketing mix helps in
the development of a new product and it’s a guide to improve your business (Tiago and
Veríssimo, 2014). Marketing mix helps in differentiation. While analysing marketing mix you
can differentiate yourself from the competitors. Finally it will help you in being dynamic.
The best thing is analysing the marketing mix is not a long procedure. If a company needs to be
dynamic then it is necessary to understand product, price, people and promotion as well.
9. Key factors that a company should consider in determining the product component of
the marketing mix.
While determining the price of the products and services most of the times it creates confusion
in the market about what price should be set (Key and Czaplewski, 2017). If the price set was
less than the worth of the product then it results into loss and if the price set was much higher
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than the worth then it makes the company out of the market. So, how can you know about the
price that was set is reasonable?
When determining the price of the product it is must to keep these factors in mind and these are
discussed below:
Cost: Firstly, the company must aware about the financial position and on the basis of this a
company can run its business properly. Before setting the price of the product, work out the
costs which involved in running the business of the company. It includes fixed cost (expenses
that will come every month without thinking of sales) and direct costs (expenses that incur by
delivering and producing the products and services).
Customers: It is the first and foremost duty of the seller to know the wants of the customers. If
the seller does not know about what the customer wants then how can he survive in this
competitive market? It is also kept in mind while selling, that customer satisfies with the
cheapest price or by the value they receive and what role price plays in their decision of
purchase?
Positioning: After understanding the customer, a seller must look at the positioning like where
he/she wants to be in the market place. It all depends on the seller that he/she wants to be most
expensive one, luxurious one or the cheapest one or be in the middle. Once it is decided, seller
gets the idea of the ideal pricing.
Competitors: Before entering in the market, it is the key factor to have the knowledge about
their competitors. Knowledge like what they are offering, what price they are charging, and
what level of service they are providing to the customers and what customers attract towards
the pricing policy. These types of knowledge will provide industry benchmark to the price.
Profit: The main objective of any organization is to earn the adequate amount of profit and
company must need to focus on the profit so that company will survive and can create the
goodwill in the market. Chances of growing are dependent on profit.
10. Importance of the pricing strategy for a business and two types of pricing strategy
that a company could use.
It is very much important to have the good pricing strategy for a business to survive in the
market. Good pricing strategy provides the company to create an impact on the market. For
most of the companies, increase in 1% of the price would generate 8% increase in the
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operational profit. The main thing to remember is that the company has to make the right move
at right time.It requires how impact on sales occurs due to change in the price of the product.
For example, if the price decreases then it results into increase in sales and decreasing the price
of the product turns into the worthwhile move. By considering this, a proper pricing strategy
becomes useful.
Two types of pricing strategy:
Economy pricing: Economy pricing mainly aim to attract the customers who are price-
conscious. By this strategy, businesses reduce the cost associated with the production and
marketing for the purpose to keep the prices down. It results into the purchase of the product by
the customers they required.
Price skimming: It is designed to help the businesses in maximizing the sales on the new
products and services. It involves setting up the rates higher during introductory period. After
this, company lower the prices of the product slowly as competitors products appear on the
market.
11. Two types of promotional strategies that a business could use.
A customer needs to aware about the products and services which are offering in the market
and according to this he/she will buy any product. That is why company creates Promotional
strategies to grow their business and if the strategy is great then it will create huge impact on
the organization. Some companies use only one method and some use different types of
methods for the different purpose of marketing. A good promotional strategy can help in
positioning the company in a good position and can also provide future benefits. Following are
the two promotional strategies:
Social Media Promotion: Some social media websites like Facebook, Instagram can help in
promoting the products of the company in a very easy and good way. Social network connects
the people throughout the world of potential customers who can see the company from the
different point of view.
Customer Referral Incentive Program: This strategy help in encouraging the current
customers with a view to refer the new customers to the store. Selling of the products free,
providing huge discounts and rewarding the cash are the incentives that can be used.
12. Three common distribution strategies that can be used as part of the marketing mix.
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Distribution by a company can be considered as a huge competitive advantage to any company.
Most of the companies target their customers very far and widely. As costs are rising very fast,
companies trying to expand their business in various markets as a result they will have a high
turnover and high margin on the products. Right distribution strategies are required for the
purpose of reaching to customers very far and wide, three common distribution strategies are
discussed below:
Selective Distribution: The companies like Zara, Armani or some other branded company
follow selective distribution. These types of companies hold only limited outlets of the
products. For an instance, if we talk about the urban city, Armani might have hold maximum 4-
5 outlets whereas Zara hold maximum 3-4 outlets.
Intensive Distribution: When the company has huge amount of marketing products, then the
company uses intensive distribution. Intensive distribution always tries to cover the market
which is the most possible; Consumer durable products are the best example of this distribution
strategy.
13. Why a business may choose to use an undifferentiated marketing strategy.
Undifferentiated marketing is most commonly said to be mass marketing. It has less targeted
approach of the other strategies of marketing and operates on a large scale. The main aim of
undifferentiated marketing is to reach the most consumers anyhow and without regard for the
specific targets. Undifferentiated marketing is much cheaper in nature as compare to other
types of marketing. It does not require so many hours, expensive research of marketing data
and constantly changing of the contents as other forms of marketing.
14. Why a business may choose to use a concentrated marketing strategy.
Concentrated marketing is a strategy where the development of product is done marketed for a
very well defined and specific portion of the consumer population. Concentrated marketing is
effectively particular for small companies with the limited resources as it helps the company to
achieve the strong position in the market.
15. Process that a marketer can use to ensure that marketing strategies, approaches and
the marketing mix align with an organization’s strategic objectives.
Marketing strategies have to start from top and move down towards the objectives. Company
should make smart strategies in achieving the objectives in a proper manner. Key Performance
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Indicators (KPI) is a term that helps in understanding in achieving the objectives in a good
manner. It is must to adapt the right KPI’s for the business running for the success of any
company.
16. Process that a marketer can use to ensure that marketing strategies, approaches and
the marketing mix meet legal and ethical requirements.
Marketing works as a bridge between the consumer and the product. A marketer must use the 4
P’s: product, promotion, price and place for communicating with the consumers. Promotion is
a combination of all types of communications with the customers, including relation with
public and advertising.
17. Process that a marketer can use to ensure that marketing strategies, approaches and
the marketing mix are achievable for an organization.
A good marketing strategy helps to define vision and goals of business and lines the steps
which a company must require to achieve the objectives. Marketing strategy directly affects the
manner in which the company runs its business, so it should be well-planned and well-
developed in consulting with the whole team. A company must identify the business goals as it
increases the awareness of the products and services, selling more products from the certain
supplier and reach the new customer.
Research, Research is an important part of marketing strategy as a company need to collect the
information about the whole market like growth, population statistics (like age, family and
gender). It is very important to keep an eye on the market so that company will be aware about
any changes taking place in the market.
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Marketing Plan Briefing Report
Introduction
The nature care products have been involved in the skin care products based in Australia. It is a
marketing plan for the proper and effective marketing of the products not only in Australia but
also globally with understanding the current strengths, weaknesses and the future opportunities
and threats.
Market overview
The current trends in the cosmetic market are been made and these current trends should be
followed for a good marketing plan. Trends such as:
1) Circular Economy: This approach is explained by converting the natural by products and
making use of the wastes, to make an efficient product.
2) Use of macrobiotics in cosmetics: With recent research for the advantages of microbiome on
human skins.
Current customer profile
Any product launch should have some target customers. With recent interest of males in the
skin care, and also with the market overview made by the Nature care, they are targeting
Young and middle age males for the marketing.
SWOT analysis
Outline the Strengths, weakness, opportunities and threats in future for nature care.
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Strengths Weaknesses
The experience Nature care has is very good
it is the strength as it is established in 1996
with some products and now having a wide
range of products and it is their strength as
line extension and brand extensions will not
be difficult for them.
Consistency is a big weakness for Nature
care, because established late in 1996, it has
never maintained consistency in the market.
Marketing: Company has never indulged in
good quality marketing or advertising.
Opportunities Threats
With research in Skin care, using
microbiomes in cosmetics, there is a very
good opportunity to target male customers.
The inconsistency in remaining in the market
which is their sole weakness, can be a threat
for the company.
The competition in the Cosmetic segment too
is a threat in global level.
PESTLE Analysis
The following components affecting the Cosmetic industry and also Nature Care Products-
 Political Factors: Reason being the nature care is in the skin care industry, the products made
by nature care are totally on skin so certain regulations made by the government for the use of
the chemicals.
 Economic factors: It does not bother much as cosmetic field is like eating industry and it
maintains the consistency and it resist recession periods quite easily.
 Social Factors: Developing a brand loyalty is very important as the loyal customers in
cosmetic segments are those which develop the consistency in the market.
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