Detailed Marketing Analysis and Strategic Recommendations for OzCo

This report presents a marketing analysis of OzCo boat company, a boat manufacturer. It begins with a perceptual map illustrating OzCo's positioning relative to competitors, followed by a SWOT analysis identifying strengths, weaknesses, opportunities, and threats. The report then employs a BCG matrix to assess the company's product portfolio, categorizing medium vessels, small vessels, and repair services. Strategic alternative analysis utilizes the Ansoff matrix to explore market penetration, market development, new product development, and diversification strategies. The report recommends market development, particularly international expansion, to capitalize on globalization and mitigate economic downturns. References and an appendix are also included.

Running head: MARKETING PRINCIPLES
MARKETING PRINCIPLES
Name of the Student
Name of the University
Author Note

1MARKETING PRINCIPLES
Table of Contents
Perceptual Map for OzCo:.....................................................................................................2
SWOT analysis.......................................................................................................................3
Strengths:............................................................................................................................3
Weaknesses:.......................................................................................................................3
Opportunities:.....................................................................................................................3
Threats:...............................................................................................................................3
BCG Matrix............................................................................................................................4
Strategic Alternative Analysis................................................................................................5
Ansoff Matrix.........................................................................................................................5
Market development-.........................................................................................................5
Market penetration strategy-..............................................................................................5
New product development-................................................................................................6
Diversification-..................................................................................................................6
Recommendations:.................................................................................................................6
Appendix:...................................................................................................................................9

2MARKETING PRINCIPLES
Perceptual Map for OzCo:
High Price
Low quality High quality
Low Price
The use of premium material, high pricing for the medium vessels and continual
process of improving the in-built structure and style creates a strong and positive impression
on consumers. The focus of the boat manufacturing company, OzCo is directed towards
improving the quality of the materials that form the final product (OzCoasts 2020). The
placement of OzCo reflects its high quality and premium pricing boats, especially the product
category, ‘medium vessels’. Other two competitors of OzCo portrayed in the perceptual map
are Riviera and Stessco. Riviera offers luxury products with only premium pricing other than
OzCo, which also offers small vessels. Stessco, another competitor offers premium quality
boats in affordable prices.
OzCo
Riviera
Stessco

3MARKETING PRINCIPLES
SWOT analysis
Strengths:
The main strength of the company is that it focuses on the quality and design of the
materials. The boat manufacturing company offers both luxury and premium boats with
smaller sized and affordable boats. OzCo acquires support from the trusted and prestigious
local suppliers creating a win-win situation. The boat manufacturing, OzCo Company has
strong cash reserve. OzCo is a reputed company and is an established company. The
company invests in technological implications for better, more durable and innovative
products.
Weaknesses:
The company, OzCo is facing high competition in the boat manufacturing business in
Australia. The repairing division of the company results in high investment and only services
20 percent profit. The company has zero experience in operating business activities or is not
known in the international market.
Opportunities:
Boat manufacturing companies can invest in the International market by expanding
their business. Another opportunity for the company can be its potential for decreasing the
overall cost by outsourcing a few services. Internationalization opportunities in developing
countries such as India and China can be beneficial for the company.
Threats:
The decreasing market share of OzCo due to increasing competition in the market is
the most evident threat. The company is experiencing a financial downturn for maintaining
the strategic position in the market. The sifting economic condition of the country is another

4MARKETING PRINCIPLES
threat as it is resulting in shifting demand of the consumers and complex purchasing
decisions.
BCG Matrix
Market share
BCG matrix is also known as the growth-share matrix, which demonstrates the
position of the product offerings with respect to four categorical areas, star, cash cow, dogs
and question mark (Mohajan 2017). The star position of the boat manufacturing company can
be dedicated to medium vessels as it is the fastest-growing industry and the offering has high
market share with dominance in the market due to the continual improvement process.
Around 50 percent of the market share of the company is derived from the medium vessels.
The question mark position amongst the three division of the company can be dedicated to
the small vessels as the industry is growing with a high level of competition and the product
offering has lower market share. The position of dog is captured by Repair and Maintenance
services as this division is serving a lower growth sector (comparatively), contributes
minimum market share but arranges sufficient cash and customer satisfaction of the boat
High
High Low
Low
Medium Vessels Small vessels
Repair and
maintenance
services

5MARKETING PRINCIPLES
manufacturing company. Only 20 percent of the income of OzCo is stimulated from the
repair and maintenance division. However, the increasing economic downturn is shifting
consumers’ preferences and the decision to purchase from luxury products to affordable
offerings. This situation may shift the classification or positioning of the offerings in the
BCG matrix, where the medium vessels division can shift to cow and the small vessels
division can shift into a star.
Strategic Alternative Analysis
Ansoff Matrix
For the purpose of strategizing the significant focus on the direction for the company,
strategic alternatives are the most suited. The strategic alternative analysis of the company
can be allotted by assessing the suitability or viability with respect to the four categories of
strategies such as market penetration, market development, new product development and
diversification (Loredana 2016).
Market development-
According to the case study of OzCo boat, the company can expand its operations in
the international market, which will respond to the concern it may face from the economic
downturn or shifting consumer demand in Australia. The boat company can accomplish this
strategy by targeting consumers from different geographic locations, high-income groups
with an assured affinity towards luxury products and premium quality or price offerings.
OzCo can aim for this strategy for the business division, ‘medium vessel’.
Market penetration strategy-
The boat manufacturing company, OzCo can penetrate in the existing market with the
existing products for the purpose of increasing the market share. The company can introduce
more technological innovations and can also adopt outsourced products or services for

6MARKETING PRINCIPLES
responding to the heavy competition in the market, which in return will elevate the market
share. This strategy can aim at the division of ‘small vessels’ (Ackermann and Eden 2020).
New product development-
This strategy for OzCo can introduce better product engineering and design with cost-
efficient tactics and innovative measures, which can be durable and reflect premium design
with low material costs. The product reengineering can introduce newer innovative and
functional features on their product, especially in medium vessels, for increasing the value
proposition of the offerings.
Diversification-
The method of diversification enhances the profit by responding to the newer market
with newer products. The boat manufacturing company, OzCo can introduce boat renting
business, which can be listed in the Airbnb for attracting the tourists, which will generate
profit for the company.
Recommendations:
The boat manufacturing company, OzCo can apply the market development strategy,
which can reach to the international markets by exceeding the local boundaries of Australia.
The company should adopt better technological expertise and improved workforce for
establishing the brand in the potential development countries and developed countries with all
the three divisions depending on the varied demand in the market and competition rate. OzCo
Boats should apply the market development strategy for ensuring the benefits earned from
globalization, lower cost of production, increased trade practices, better brand awareness,
more sales and vast customer base (Papke-Shields and Boyer-Wright 2017). The market
development strategy for the boat company can arrange lower cost high quality from the
developing countries, affordable labour costs will stimulate newer customers, will increase

7MARKETING PRINCIPLES
the overall revenue with ultimate growth of OzCo Boats. This strategic action will respond to
the present competitions of the company by creating a competitive advantage through a vast
customer base and improved value offerings for the target customers based on each division
of the company. Therefore, this strategic alternative will be most suitable amongst all other
alternatives derived from strategic alternative analysis. Moreover, the economic downturn in
Australia is shifting the preferences and purchase capacity of the customers towards
affordable products rather than luxury offerings, leading to the urgency to expand the
business in the international markets.

8MARKETING PRINCIPLES
References:
Ackermann, F. and Eden, C., 2020. Strategic options development and analysis. In Systems
Approaches to Making Change: A Practical Guide (pp. 139-199). Springer, London.
Loredana, E.M., 2016. The Use Of Ansoff Matrix In The Field Of Business. In MATEC Web
of Conferences (Vol. 44, p. 01006).
Mohajan, H., 2017. An analysis on BCG Growth sharing matrix.
OzCoasts. (2020). Home - OzCoasts. [online] Available at: https://ozcoasts.org.au/ [Accessed
3 Mar. 2020].
Papke-Shields, K.E. and Boyer-Wright, K.M., 2017. Strategic planning characteristics
applied to project management. International Journal of Project Management, 35(2), pp.169-
179.

9MARKETING PRINCIPLES
Appendix:

10MARKETING PRINCIPLES

11MARKETING PRINCIPLES