Marketing Plan for Patch Strips: Strategic Analysis & Objectives

This report presents a comprehensive marketing plan for Patch Strips, an Australian company specializing in sustainable bamboo wound coverings. It includes a situational analysis using PESTLE, SWOT, and Porter's Five Forces to assess the external and internal factors influencing the business. Customer analysis involves segmentation, targeting, and positioning strategies to maximize market reach. The core problem identified is limited market awareness and distribution, which the marketing mix strategy aims to address through product, price, promotion, and place tactics. The plan sets objectives for business expansion and sales growth, with evaluation measures to ensure alignment with these goals. A budget is also outlined for resource allocation across different marketing activities.

Running head: MARKETING AND MANAGEMENT
Marketing and management
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Executive summary
This report discussed about the external and internal business factors being faced by
Patch Strips in their operation. In doing so, PESTLE, SWOT and Porter five forces analysis are
used. In addition, segmentation, targeting and positioning is also being done for Patch Strips and
it will further help them to gain the maximum from the side of the market. This report identified
that Patch Strips is facing the major issues in terms of distribution and market awareness.
Marketing mix elements are discussed, which will help in overcoming these issues in the long
term. The core objective of this marketing plan is to ensure the business expansion for Patch
Strips and increase in the sales volume for Patch Strips. Evaluation measures are also discussed
that will be effective in preventing deviation of the marketing plan from the core objectives.

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Table of Contents
Introduction......................................................................................................................................4
Situational analysis..........................................................................................................................5
PESTLE analysis.........................................................................................................................5
Industry competitive analysis......................................................................................................6
SWOT analysis............................................................................................................................8
Customer analysis............................................................................................................................9
Segmentation strategy..................................................................................................................9
Targeting strategy......................................................................................................................10
Positioning strategy...................................................................................................................11
Problem statement.........................................................................................................................11
Determination of the marketing objectives....................................................................................12
Marketing mix strategy..................................................................................................................13
Product.......................................................................................................................................13
Price...........................................................................................................................................13
Promotion..................................................................................................................................13
Place...........................................................................................................................................14
Campaign evaluation.....................................................................................................................14
Budget............................................................................................................................................15
Conclusion.....................................................................................................................................15

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Reference.......................................................................................................................................16

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Introduction
Effective process of marketing analysis and strategic management is important for the
contemporary business corporations due to the involved complexities and competitive scenario
in the current time. However, there are number of factors that should be considered in having the
most effective marketing strategy in place. One of the major steps is the determination of the
internal and external factors relevant for the business. The change in the business factors should
be considered in designing the marketing strategy. In addition, the customer analysis should also
be done including the segmenting, targeting and positioning in the market (Edvardsson et al.,
2014). Proper integration of all these elements will help to ensure the desired state of return.
Importance of the marketing strategy and plan is more for the small and medium scale business
entities because they are yet to gain the market competiveness among the larger customer
segments.
Patch Strips are a leading innovative and sustainable business entity from Australia. They
are the marketers and manufacturer of wound cover strips made from bamboo. These are more
sustainable, natural and effective in treating wounds compared to the conventional coverings and
plasters. They have positioned their products as the sustainable alternative to the conventional
strips and as of now, they are available across Australia (patchstrips.com, 2019). However, it is
important for them to gain the long term business sustainability and based on that, marketing
activities should be designed accordingly.
This report will discuss about the internal and external business factors of Patch Strips
along with customer analysis of them. Key problems will be identified and based on that, a few
marketing objectives will be designed. Marketing mix elements will also be discussed on

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achieving the objectives and evaluation measures. Lastly, budget will be discussed for proper
allocation of the funds in different marketing elements.
Situational analysis
PESTLE analysis
Political factors  Australia is having stable political system with pro business
approach
 Favorable diplomatic relationships with major economies are
beneficial for business (Cross & Gauja, 2014)
 Tax incentives are offered for sustainable startups such as Patch
Strips
Economical factors  Competition is still low in the sector where Patch Strips are
operating
 However, supply of bamboo will determine the input cost for
Patch Strips
 Rapid inflow of foreign investment and technologies in the
country will pose new challenges for Patch Strips (Prajogo,
2016)
Social factors  Customer awareness regarding the sustainable products is
beneficial for business expansion and penetration
 However, Australian customers are price conscious, which
should be considered by Patch Strips
 Preferences of the Australian customers towards the national

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brands will also be beneficial for Patch Strips
Technological factors  Australia is a developed economy and thus access to developed
technological infrastructure is high
 More investment is important in enhancing the production
effectiveness (Darcy & Manzi, 2017)
 Periodical up gradation is required for managing the
technological effectiveness
Legal factors  Corporate laws and regulations in Australia are diverse and
stringent and should be followed
 Different standards should be followed such as Privacy and
consumer act
 Legal standards should be followed in terms of medical elements
Environmental factors  Environmental standards should be followed in relation to the
sourcing of bamboo
 It is also be seen that medical waste is not getting generated by
Patch Strips
Industry competitive analysis
Bargaining power of
buyers
 Bargaining power of the buyers is low due to low
availability of alternatives
 Competitive advantages of Patch Strips are ensuring the
unique value proposition for the customers

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 However, the price sensitivity of the buyers will
determining the pricing of Patch Strips
Bargaining power of
suppliers
 Bargaining power of the suppliers is high due to the
dependence on the sourcing of bamboo from the external
suppliers
 Pricing of the external suppliers will determine the pricing
of Patch Strips
 Flow of bamboo will determine the extent to which Patch
Strips will be able to meet the market demand
Threat of new entrants  Threat of new entrant is high as any conventional brands
can foray in to this sector
 However, the new entrants will gain the first mover
advantages as gained by Patch Strips
 New entrants will also face difficulties in meeting the
economies of scale similar to Patch Strips
Threat of substitutes  Threat of substitutes is high for Patch Strips
 No direct competitors are identified but indirect
competitors are more in terms of conventional medical
brand
 Risks of introduction of more sustainable competitors in
the market is high
Competitive rivalry  Competitive rivalry is low for Patch Strips due to the low
competition

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 Price is the major factor in gaining the competitive
advantages
SWOT analysis
Strengths  Sustainable branding and positioning of Patch Strips is helping in
attracting the larger customer segments
 Natural ingredients for Patch Strips are also helping in their branding
activities (Ghadimi & Heavey, 2014)
 Utility of their wound cover by means of easy to use and use anywhere
features is helping in attracting different customer segments
 Patch Strips are associated with NGO and are involved in philanthropic
activities. This is further helping in increasing the customer base and
business viability
Weaknesses  One of the major weaknesses for Patch Strips is the limited brand value
and equity
 Limited product portfolio of Patch Strips is also detrimental in attracting
extensive market share
 They do not have presence in the global market and thus global branding
is also limited
Opportunities  Entering in the foreign markets will increase the business potentialities
for Patch Strips along with increase in global branding
 Developing new products will increase the target customers both in the

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existing and new markets
 Customer preferences towards the use of sustainable and natural products
is increasing
Threats  Emergence of new competitors will increase the competition for Patch
Strips
 Reduction in the supply and availability of bamboo will also affect the
production process of Patch Strips
 Introduction of stricter norms in relation to the environmental
management will also pose challenge for Patch Strips
From the situational analysis above, it is identified that there are number of positive and
negative factors being faced by Patch Strips. One of the major weaknesses for them is the limited
market position and limited product variants. Thus, Patch Strips are having the need for
expanding both in terms of product and market. It is also identified that Patch Strips are majorly
dependent on the external suppliers for the supply of bamboo, which is also challenging because
external suppliers are having higher influence on the business. On the basis of these identified
factors, the following sections will discuss about the effective segmentation and targeting
strategies and marketing mix elements.
Customer analysis
Customer analysis will be done on the basis of major three elements including
segmentation, targeting and positioning.
Segmentation strategy

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The segmentation strategy of Patch Strips will be based on different variables. In terms of
the demographic variables, the primary target for Patch Strips will be the age groups between 15
and 50. The main reason behind the extensive target age group is the type of the product. This is
due to the reason that wound cover is required across different age groups. Hence, the
demographic target market for Patch Strips is large. Both the male and female customers will be
catered as there are no gender specific products being offered. In terms of the geographic
segmentation, customers from the tier I and II cities will be targeted because the products of
Patch Strips will be sold in premium compared to the conventional options available in the
market (Cross, Belich & Rudelius, 2015). Thus, the customers from the tier I and II cities are
having higher affordability for the premium. In terms of the psychographic segmentation,
customers with active lifestyles such as players will be more targeted because they are more
prone to wounds and require faster healing. In addition, customers preferring the sustainable
products will also be targeted (Toften & Hammervoll, 2013). In terms of the behavioral
segmentation, customers with the frequent buying trend will be targeted as it will help in
continuous process of revenue generation and origination of positive word of mouth.
Targeting strategy
It is recommended that Patch Strips should target their segmented customers by means of
product differentiation and market focus. This is due to the reason that input cost for Patch Strips
is more compared to their conventional competitors and thus cost leadership cannot be gained.
On the other hand, product differentiation can be gained due to the unique offerings of Patch
Strips. Initiation of the product differentiation strategy will help to persuade the customers in
paying more for distinctive value (Hariharan, Talukdar & Kwon, 2015). Furthermore, market
focus strategy should be implemented because a certain and specific target segment can only be

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catered by the value proposition of Patch Strips. This is due to the reason that the sustainable,
natural and premium value proposition of Patch Strips will have niche customer segments in the
market. In this case, it is recommended that the new products should be designed according to
the taste and preferences of the target customer segments (Camilleri 2018). It is also
recommended that Patch Strips should gain economies of scale in the future course of action and
with the increase in production, which can help them in gaining cost leadership in the market.
Positioning strategy
It is recommended that Patch Strips should be positioned on the basis of product
characteristics. This refers to the fact that the unique features being offered by the Patch Strips
should be leveraged in positioning them in the market. This will ensure the intensity of
competition will be less for Patch Strips as no other competitors poses the same features as them.
Patch Strips can also be positioned on the basis of the competitors (Urde & Koch, 2014). This is
due to the reason that there are no other competitors offering the same value as Patch Strips and
offering distinctive value on the basis of what the competitors are offering will be effective in
having competing market positioning.
The positioning statement of Patch Strips will be “let the nature cure the wound”. This
denotes the fact that natural factor, which is the competitive force for Patch Strips is given the
major focus. Moreover, the positioning statement is also denoting the fact that natural and
sustainable ingredients will be used in healing the wounds. Thus, it will create the desired
differentiation in the market.
Problem statement