RACT Strategic Marketing Management Report: Customer Experience Focus

This report provides a comprehensive strategic analysis of RACT, a Royal Automobile Club of Tasmania, focusing on its customer experience (CX) marketing efforts. It begins with an introduction, background, and outlines RACT's mission and vision. The core of the report involves a detailed strategic analysis, including situational analysis, examination of the external and internal environments, and a SWOT analysis to identify strengths, weaknesses, opportunities, and threats. The report also covers RACT's marketing capabilities, including marketing management and strategies. It offers problem and opportunity statements, followed by recommendations for future CX marketing initiatives. The report concludes with a summary of the key findings and a bibliography of cited sources. The report aims to provide insights into RACT's marketing performance and suggest improvements for enhancing customer experience.

Running Head: RACT 0
CX Marketing: ‘Revitalizing Roadside’, RACT
Strategic Marketing Management
Student Name:
Student University:

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Contents
Introduction................................................................................................................................2
Background............................................................................................................................2
Mission and Vision................................................................................................................2
Strategic Analysis.......................................................................................................................2
Situational Analysis...............................................................................................................2
External Environment........................................................................................................2
Internal Capabilities...........................................................................................................5
SWOT Analysis.........................................................................................................................6
Problems and Opportunities Statements................................................................................6
Recommendations......................................................................................................................7
Conclusion..................................................................................................................................7
Bibliography...............................................................................................................................8

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Introduction
Customer Experience means customers involving totally with any company and brand
derived as CX. In the context of marketing, CX is the impact of efforts in creating awareness,
changes, driving attention, and keeping customers happy with the brand. CX marketing of
RACT wins the award of giving the best customer experience with their brand (Ice, 2018).
Background
RACT is a Royal Automobile Club of Tasmania in Australia founded in 1923 providing
services as car on loans, insurance for vehicles, assisting roadside, education to drivers, home
security products, and tourism services include customer services with 191,000 plus members
(RACT, 2019).
Mission and Vision
The mission of the company is to promote change in positive aspects for communities and
customers' safety and future (RACT, 2019). The vision is to focus on transforming mobility
landscape which provides, safer, well-organized and sustainable approaches to move around
named as 30 year Greater Hobart Mobility Vision (RACT, 2019). In this report, the
company’s strategic analysis has been discussed by knowing its capabilities and challenges
with recommending CX marketing for the future of RACT.
Strategic Analysis
The analysis of the company focuses on the strategy formulation with its operating
environment by identifying and evaluating data.
Situational Analysis
It helps in analysing the internal and external factors by knowing business’s abilities,
potential customers and the environment with its impact on the company.
External Environment
It includes the factors that impact the operations of business from outside. The types of
external environment are the remote and near environment.
Remote Environment
It consists of economic, socio-cultural, political-legal, technological, and natural environment
forces.

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Economic forces: It includes the company’s conditions, policies, and systems which can
affect the business linked to consumer confidence dependent on the growth in case of RACT
for economic growth and stability and investments.
Socio-cultural: It consists of behaviour, beliefs, practices, and customs involving members
of RACT to enter the target market and maintaining the performance. This force has a huge
impact on company’s business environment including the country’s culture and laws.
Political-legal: It concerns about the consistency of the company in the environment
considering the involvement of government playing an important role and had an impact on
RACT policies, protections and competition regulations, and flexibility (Ansoff, et al., 2018).
Technological: It includes activities related to innovation and change in the company for
customer experience in the market decision-making knowing the limitations (Warren &
Burns, 2016). The company RACT works on programs and development for gaining
customer satisfaction with the help of promotions by providing services both online and
offline, transporting vehicles and more.
Natural Environment: It covers the working within the company considering external
environmental activities where the RACT’s performance is affected by the customer
experience. The company needs to take care of the polluting vehicles, fuel prices, insuring the
vehicles securely and providing car loans within legal aspects.
Near Environment
Market Review: RACT look for a long-term view in the market for being reliable, secured
and providing the best prices to the customers with technology innovation and changes.
Market and Product Analysis: In Australia, development of the company is done on the
basis of analysing the market and competitors of RACT providing same products and
services to reach the customers looking for a compatible process by working effortlessly.
Product Life Cycle: RACT thinks of product development, introducing it, calculating its
growth, evaluation and its downfall in future for identifying and positioning the products in
the market and providing services to the customers at affordable prices.
Market Attractiveness: RACT measures the value or possibilities in a market to attract
customers for short-term profit of the company. Porter’s Five Forces Model includes
competitors buying and supplying power, barriers for entering the market, and threats. RACT

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formulate its strategy of marketing by considering these forces before entering into new
emerging market with new and innovative growth for achieving customer satisfaction and
maintaining the growth, productivity, and profitability of the company through collecting
information, analysing the outcomes for strategy formulation considering the impact of
government and other environmental forces (D’Souza, et al., 2019).
Competitive Review: RACT analyse the competitive review through market positioning of
the company and its competitors for implementing the best strategy by looking at the sales
process both online and offline and evaluating and comparing the current competitors
attracting customers the most. RACT go for promotion to seek the attention of the customers
by putting their efforts and enhance the loyalty through programs, making improvements.
Distribution Channels: RACT is aware of its channels of distribution which is mainly done
online through the access of internet, is an E-commerce platform but implies distribution
offline as well for maintaining trust of customers providing the best services of their products
including reliability between distributors.
Consumer Analysis: It is important for the company to identify the customers, know the
behaviour of the customers and their needs, and defining company’s products to meet their
needs. The basic structure of questions to know customers behaviour in marketing is:
1. What do they buy?
2. Why do they buy?
3. What is the power of the company in the market?
4. Who is involved in the buying?
5. When do they buy?
6. How do they buy?
Supply: After analysing consumer behaviour, the company evaluates the number of goods
and services they are able to provide setting the prices and future availability for making the
customer experience better.
Critical Success Factors
The company defines these factors by identifying, determining, positioning and measuring
for ensuring the success of the company. RACT considers being a competitive industry by
innovating for new product development, promotional efforts and good distributor, and

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making a strategy by analysis and attaining goals for better growth and competitive
advantage (West, et al., 2015).
Internal Capabilities
The company’s internal analysis helps a firm to know its strengths and weaknesses to achieve
a competitive advantage by determining capabilities and resources and formulating strategies
(Kaleka & Morgan, 2019).
Organization-Wide Capabilities (Non-Marketing Capabilities)
Financial Position: It is the duty of corporate governance to monitor the financial
performance and operations of RACT.
Source: (RACT, 2017-18).
Organizational Effectiveness: After collecting all the information and data regarding
consumers, position in the market, financial position including external environment. It is
important to know the effectiveness of the company to achieve the desired outcomes
according to the needs of the customers. RACT follows the McKinsey 7-S Framework which
consists of strategy, structure, systems, shared values, skills, style, and staff in the business. It
shows the identifying and management process to impact directly, and on company’s culture
for its success in future and maintaining the competitive advantage, changes, capabilities, and
activities in the company (Lancaster & Massingham, 2017).

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Marketing Capabilities
The marketing capability of RACT is to make the company customer-centric for delivering
values and earn profits where the demand of the customers will help in leading growth
(Green, 2014).
Marketing Management: It is important for the company to plan and execute the formation,
pricing, distribution and promotion process for ideas, creation of goods and services,
customer satisfaction and exchange of company’s objectives (Jones, 2014).
Marketing Strategies and Performance: The major strategies company forms to implement
include pricing, promotion, changes, product development, and distribution for better
performance, sales, and customer satisfaction which impact the company and the same id
done by RACT (Köksal & Özgül, 2007).
SWOT Analysis
Strengths: RACT is doing a fine business
and is financially strong to achieve profits
and providing customer experience with a
safe and secure future efficiently.
Weaknesses: It is important for the company
to lower the costs for high demand and
fulfilling the needs of the customer, and
development process, providing job
opportunities.
Opportunities: RACT with 191,000 plus
members is growing by doing successful
operations in business, scope of higher
investments and expansion by focusing on
achieving growth through promotion and
loyalty programs, and innovation with the
involvement of government.
Threats: The competitors providing the
same or better quality products and services
at nominal prices to attract customers. It is
important for RACT to interact with
customers in the market and give them
attention to achieve the position in the market
place in future with an increasingly
competitive advantage.
Problems and Opportunities Statements
RACT faces mechanical problems assisting customers for vehicles and gives customers the
facility of transport or agent to help and taking care of repairs and make sure to take care of
the customer experience. The company provides job opportunities and chance to work with
them, and keep on promoting expansion.

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Recommendations
The company has achieved the objectives but still needs to work on some changes requiring
innovation in the services of transportation, communicating on much larger platforms with
the customers and maintaining the marketing experience. RACT made changes by
introducing the monthly payment option and deleting the joining fee for improving the online
experience, sales increment and CX marketing for long-term trends, attaining the brand value
through programs (Nolan & Blowfield, 2018).
Conclusion
RACT is a company of automobile in Australia and won the award of CX marketing growth
but still need to work on changes and measures they need to make for further inspiring
options for the product concerning in the business. It is important to evaluate strategy
analysis by internal and external capabilities of the company.
Bibliography

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Ansoff, H. I. et al., 2018. Implanting Strategic Management. New York: Springer.
D’Souza, C. et al., 2019. Environmental management systems: an alternative marketing
strategy for sustainability. Journal of Strategic Marketing, 27(5), pp. 417-434.
Green, R., 2014. RACT LETS TASMANIANS KNOW THEY DESERVE ROYAL TREATMENT
IN NEW CAMPAIGN VIA BWM MELBOURNE. [Online]
Available at: https://campaignbrief.com/ract-lets-tasmanians-know-they/
[Accessed 7 September 2019].
Ice, B., 2018. 2018 AMI Awards winners announced. [Online]
Available at: https://www.marketingmag.com.au/news-c/news-ami-awards-18/
[Accessed 10 September 2019].
Jones, S., 2014. BWM Melbourne produces first work for RACT after winning four-way pitch.
[Online]
Available at: https://mumbrella.com.au/ract-253729
[Accessed 7 September 2019].
Kaleka, A. & Morgan, N. A., 2019. How marketing capabilities and current performance
drive strategic intentions in international markets. Industrial Marketing Management,
Volume 78, pp. 108-121.
Köksal, M. H. & Özgül, E., 2007. The relationship between marketing strategies and
performance in an economic crisis. Marketing Intelligence & Planning, 25(4), pp. 326-342.
Lancaster, G. & Massingham, L., 2017. Essentials of Marketing Management. 2nd ed.
London: Routledge.
Nolan, R. & Blowfield, J., 2018. Tasmanian news. Planning News, 44(10), p. 30.
RACT, 2017-18. Annual Report. [Online]
Available at:
file:///C:/Users/SystemJP/Downloads/RACTAnnualReport_20172018%20(1).pdf
[Accessed 2019].
RACT, 2019. About us. [Online]
Available at: https://www.ract.com.au/en/about-us
[Accessed 6 September 2019].

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RACT, 2019. Advocating Change. [Online]
Available at: https://www.ract.com.au/community/advocating-change
[Accessed September 2019].
RACT, 2019. Our Vision. [Online]
Available at: https://hobartvision.ract.com.au/our-vision/
[Accessed September 2019].
Warren, H. B. & Burns, D. J., 2016. "A Mental Model for Teaching Strategic Marketing
Management." Global Perspectives on Contemporary Marketing Education. IGI Global, pp.
65-76.
West, D. C., Ford, J. & Ibrahim, E., 2015. Strategic Marketing: Creating Competitive
Advantage. England: Oxford University Press.