Describe about the Marketing Strategy for Growth and Benefit.
In recent times, the appropriate use of the marketing mix is very important for the growth and benefit of an organisation. The company David Jones are trying to extend their line of production and in this particular assignment, the marketing mix of the David Jones company which is one of the leading fashion brands in Australia is described. In this assignment the position, segmentation and targeting of a specific section of the customers will also be discussed. The marketing mix for the extended line of product for the David Jones Company will include the Pricing strategy, Placement strategy, Promotion strategy and the Product Strategy. In this regards, it can be said that the company can extend their product line in order to attract more customers in the market. This is a fashion brand and it will make the brand more attractive if they can add a watch lines in their range of products. Now the Segmentation, Targeting and the Positioning of the product can be discussed.
These effective forms of strategies can help in analysing the position of a market and the prospects of a product in the market. These strategies will help in gaining the required objectives of market acquisition and increasing the brand value of the product effectively. Each and every company must segment the market in the effective manner in terms of the behaviour and the characteristics of the consumers(Park & Kim, 2015). This will provide a brief profiling of the consumers. Then the company need to target the given consumers on the basis of the segmentation or the profiling and finally they need to implement the required strategy to position their product in the market(Neil Kokemuller, 2016).
The segment size plays a significant part in analysing the attractiveness of any product or services. Thus, it is very important to identify the segment size as as it can define the success or the failure of the product or service that is offered. The attractiveness of the offer also defines the viability of the strategy.
Source: Source: (Marketing Journal, 2013)
Segmentation can be defined as the strategy that divides the broad range of markets into various subsections in terms of countries, business or consumers. This is done on the basis of desires, priorities, interests and needs of the consumers. After analysing and assessing these facts, various strategies are implemented to target the consumers(Kotler & Keller, 2012),.
In this case, the segmentation has been done on the basis of four areas which are Demographic, psychographic, Behavioural and the Geographic. As it is a fashion brand, thus it can identify the customers based on their age as younger people tend to be more trendy. The demographic qualities include the age, gender, education, ethnicity etc for a consumer.Psychographic aspects include the emotional aspects of an individual like the leadership traits, personality, risk aversion, hobbies, interests, hobbies and lifestyle(Puška, 2013). On the other hand,the behavioural aspect focuses on the brand loyalty of the consumers and certain other factors like reaction to the certain products or marketing mix, benefits sought etc(Kotler & Keller, 2012). The last factor is Geography, which explains the location of the product offered and how it will reach the consumers.
Now the three potential segments can be introduced here and those are,
13-35, Male, Mid-Income group, Does online shopping: In this segment mainly male customers will be interested in buying the product and as they will be from middle income group so, they will be more interested in trendy watches rather than expensive watches. The male consumers whose income will be AUD 10,000-20,000 PA.
13-35, Female, Mid-Income group, Does online shopping: This segment is for female customers from 13-35 will be more interested in trendy watches as well as formal watches but cannot afford much expensive watch. The income level can be AUD 10,000-20,000 PA.
13-35, Male/Female, High-income, Does online shopping: 13-35 Fame and female high income consumers have the income of AUD 40,000-60,000 PA. These people will be lower in numbers but will be more interested in expensive watches.
These are the main segments of the consumer groups who will be considered for the extension of the product line for the brand. These groups of will be targeted with the help of the advertisement and promotion for acquiring and increasing the revenue and establishing the brand value(Gopal and Gopal, 2015).
In this regards, it can be said that the three segments can provide the required growth opportunities to the company. The age group of 13-35 will be most beneficial for the company and the male and female both groups can be targeted. It will be more beneficial if online platform is obtained for selling the product as will be cost effective and it will reach a greater group of people who can easily access the products(Savelli, 2011).
Targeting is the second stage in the STP process or model. After identifying the main group of consumers with the help of the segmentation process, the main group of people are targeted. In case of several groups or segments, it is very important to customise the advertisement for the marketing for making the required appeal to every group(Kotler & Keller, 2012). For example, for a fashion brand, usually the younger generation are attracted and based on that the product lines are also included or extended. In order to target the consumers it is very important to look into the profitability aspect as it will specify the growth of the company in the market. Thus, the potential growth and the size of the consumer groups are first identified and then the analysis can be done whether this group is feasible for the company to be addressed(Mullin, 2006).
Now the target market that is chosen for this product can be analysed here on the basis of the 4 major segmentations strategies or bases. It has been established that the age group of 13-35 will be targeted. In this regards, it can be said that the selected age group is a broad group of individuals and these people are more attracted towards the trendy items like the watches. It is known that watches are one of the necessary accessories and thus it will be very demanded item for this age group(Abdullah Saif, 2015). Here both the male and female consumers are targeted as both will be equally interested in their product. These are the demographic characteristics that are taken into account. The psychographic characteristics will include people with trendy lifestyle. The behavioural characteristics may specify the people who are very loyal to the brand and they may also be interested in the new addition to their product line. The geographic location is not bound to a specific location as people may purchase the product online and thus it will reach a broad group of consumers(Zimmerman & Blythe, 2013)..
So, these are the main targeting strategies that will be implemented by the company to attract the consumers for their product and brand and increase their market share or improve the brand value.
In this regards, we can also mention the market coverage strategy. It is very important to take the proper coverage strategy in order to optomise the benefits of the decision. There are mainly three basic choices that can be taken by a company while implementing the coverage strategy. Firstly, undifferentiated strategy, where the segmentation is ignored and the whole market is considered as one. Second is Differentiated strategy, where separate segments are considered and separate strategy is taken for each segment. Thirdly, the Concentrated strategy, where the only a few segments are considered for the niche market and a concentrated strategy is taken.
In this case David Jones can take undifferentiated strategy as they can access a whole group of consumers 13-35, male and female and high and low income group as they alreadt have all the collection of watches for all these segments and as this is an online platform so the consumers can also access the product easily without any extra cost (Theproduct.com, 2016).
Positioning is the last stage of the STP model and the positioning strategy is used for the alignment of the products in the target market(Neil Kokemuller, 2016). The positioning is required in order to offer a better product or service to the customers than the competitors. Thus, this is a very important stage as the success or the failure of the products can depend on how the product is placed in the market (Chernev, 2012)
There are basically 5 steps for the positioning strategy and those are,
Step 1: Here the competitive advantage of the product needs to be established. It can be said that the product will have the brand value of the company and as it is an already established brand. So, people will prefer the product based on the brand.
Step 2: In the second step the differing characteristics can be highlighted as the products can be cost effective and it will also be of high quality. People may access various ranges of products from the brand.
Step 3: The value proposition can be included in terms of high quality and a high range of varieties from trendy to standard.
Step 4: Now the positioning statement can be “Varieties of watches in terms of price range but quality assured” (Casaló, Flavián, & Guinalíu, 2008)
In the following diagram, the positioning map can be included,
In the above diagram, it can be seen that all these products will be available in the online forum of the company. The circles represent the product placement bin the positioning map. Some products will be of high price and high quality. Some products can be reasonable but will be of good quality and some products can be very low price but will be of low quality as well.
Source: (Chanimal, 2016)
Product strategy is one of the major factors to be taken into consideration for highlighting a proper marketing mix(Marketing Journal, 2013). The 4P marketing model basically enhance he brand value and how people will react when a new strategy is incorporated in a market. This will affect the market share or the success of the product. Product is the first P of the marketing mix and it specifies the description of the product or the service that is offered to the consumers. The product can be either an intangible or tangible (Chernev, 2012). The products are always designed and offered by the companies in order to satisfy the needs and the wants of the consumers and thus it is also very important that the requirements of the customers are taken into consideration. It is known that each and every product has a specific life cycle and thus the market researchers must take the life-cycle of the products into consideration in order to incorporate their strategies(Casaló, Flavián, & Guinalíu, 2008).
The main products that will be extended in the product group are watches. The products will range from trendy to official watches for both men and women. The watches that will be offered by the company will include range of products from stylised to official watches. The designs will include the watches for men and women both. The straps of the watches will vary from leather and chains to rubber(Marketing Journal, 2013). The dial size of the watches will also differ in size and shape in order to provide a wide variety to choose from for the customers(Clow & Baack, 2012).
Core Product:
Now the core benefit of the product can be described here. The core benefits are the enhancement in the use of accessories for both men and women. It is known that the watches are necessities in a day to day life for the obvious purposes. It can also be stated that the watches can be used as a very trendy accessories, which is used for that purpose as well. The use of watches in terms of the present lifestyle has increased significantly and thus it is not only used for knowing the time but the designer watches can also enhance the style and beauty of a person (Chenimal, 2016).
Actual product:
The product can be described in terms of the five characteristics, which are Quality, styling, features, brand name. and packaging.
Quality: the watches that will be offered are of high quality to attract the consumers. The warranty cards will be provided with each product.
Styling: the company has emphasised of providing stylist watches that can enhance the style statement of an individual. This includes casual to formal watches.
Features: The watches will include waterproof watches as well and those watches that can used as charm bracelets
Brand Name:The company will include all the famous brand of watches in order to provide variety to the consumers to chose from.
Packaging and Labelling: The company will provide a standard packaging for the products, so that it reaches the consumers safely and they should be impressed with the service (Watchbranding.com, 2016).
Augmented Product:
The augmented products specifies the other benefits that can be attained from this product. Here the warranty that is provided can be mentioned as the company will provide minimum 1 year warranty for all the watches. The quality and the variety is another augmented benefit that will enhance the product demand in the market (Benefits and Solutions, 2016). Other augmented benefit can include using the watches as bracelets and it can improve the style of the consumer. Some of the watches can also be used as compasses which can increase the benefit for the consumers.
The pricing strategy is another strategy that should be used appropriately in a marketing mix. The price is basically the payment that is made by the customers and can also be perceived as the measure for the valuation of a product. The profit of the company can depend upon the pricing strategy, so the decision should be taken very carefully. There are various factors that should be taken into consideration while making the pricing decision and those factors are the price elasticity for the product, demand for the products in the market, the availability of the alternatives and the present sales of the brand or the brand value. There are basically three pricing strategies and they are penetration pricing, market skimming and the neutral pricing(Homburg, Krohmer, & Kuester, 2013). There are also four basic approaches for making the pricing decision and those are, value-based pricing, cost-based pricing, relationship pricing and the competition-based pricing.
There are certain internal as well as external factors that can be mentioned here as it can also affect the pricing decision for a product. The internal factors include all the factors that are internal to the company like the cost that will incur to the company in order to add this new line of product in their original line. Other internal factors can include the change in management and efficiency of the marketers that can again affect the pricing decision. On the other hand the external factors are the prices charged by the competitors in the market or the offers already given in the market.
The pricing strategy that can be used for the watch addition in the product line for the company can be value based. Initially the company can implement value based pricing as the price of the products should be aligned with the value that is offered by the products. It is known that the company will include variety and different brands of watched in their collection and thus the pricing of the watches should be based on the brands of which the products are offered(Hutt & Speh, 2013).
The use of the product is already established in the market and thus it not a new one but it will enhance the collection of accessories for the company in their website and thus new product pricing strategy will not be applicable here.
The price adjustment strategy can be implemented on the basis of the response of the consumers. If the response is not effective enough then the adjustment can be done with offering higher discounts to the consumers.
The price changes are not anticipated and the company will be competing on non-price factors like enhancement of varieties and brands.
So, these are the main pricing strategies that needs to be incorporated for the particular product(Juggessur & Cohen, 2009).
Place is another important element of marketing mix. Place or Distribution channel signifies the location or the place where the people can have the access of the product or the acquisition space for the product. The place of distribution can have significant impact on the success or failure of a product or service as it can affect the accessibility and thus the reach of the products to the required buyers on time(Kim, 2012). A product can fail at many levels if the consumers are not able to access the particular product. Thus proper place strategy is very important. There are several strategies like exclusive distribution, selective distribution, intensive distribution and franchising which can be used for placement. The company can chose to distribute the products to some specific channels and reduce cost but it will not reach a vast consumer groups. On the other hand the company can chose a wide distribution group and increase the cost but it will also reach a wide group of people and thus will eventually increase the revenue. The distribution channels also play a significant role in enhancing the demand for the products by creating the proximity and using proper promotion tools(Kim, 2012).
In this context, it can be said that the company will use their online website in order to include the line of watches with their products. The company already has a website where various clothes and accessories are purchased by millions of people in their location. Thus, the additional brand of watches will enhance the value of the company and the website. This strategy will help the company to reach the targeted group of people in the location and also it will be very cost effective as the company will not have to open any additional outlets for the item. The company can introduce the product in outlets later if they are successful at the online platform(Lamb, Hair, & McDaniel, 2013).
Diagram: Channel Map
Therefore, this is the placement strategy that can be used by the company in order to optimise the strategy and the value of the company.
Promotion is another effective tool and the fourth element of the marketing mix. It is very important to promote the product or the service that is offered by an organisation in order to acquire a larger market or the appropriate market for their products. In order to do that, relevant product information should be disseminated and should be distributed to the consumers. The promotion involves all the communication methods that are used by the marketers in order to promote the product. There are several elements of promotion that are used and those are advertising, video marketing, search engine marketing, email marketing, social media marketing and public relations(Lamb, Hair, & McDaniel, 2013),. All these platforms are very effective tool for marketing.
Source: (David Jones, 2016)
In this case, the addition of the watches in the accessories zone can be advertised using online channels. As the main distribution channel is the online website, thus the promotion of the addition can be done in the website as well. The company can create a flashing image in their main homepage regarding the new addition. The consumers visiting the page will be interested to check out this new addition. On the other hand, this can also be promoted with the help of the social networking sites like the facebook, twitter etc. The company has an official site where it can advertise about the new watch section that is added in the website. On the other hand, the advertisement can also be posted in the video streaming sites like youtube.com. The customers can also provide their feedback about the product quality and the packaging and overall experience with the service(Liapati, Assiouras, & Decaudin, 2015). It is known that the word of mouth is very effective in order to influence the consumers. This will help other customers to be attracted and make their decision on the product. The company can also offer bundling of the products and offering discounts to the products.
So these are the main strategies that must be incorporated by the company in order to promote the line of addition in their website.
Considering the developmental aspect of the company it can be measured that the company, David Jines is associated with the maintenance fo the transformation relationship that helps to maintain the strong values in the core business policies. The company is oriented towards the understanding of the benefits of the people and not merely concentrated towards the business development. It is the reason that results in the firing of some staffs of the company, that highlights the concentration of the business towards the maintenance fo the sustanaility in the core business operations (David Jones – Good Business Journey, 2016). In this regards it can be concluded that the marketing and promotion mix of the product is according to the sustainable ways of the company. The company has maintained the ethical resourcing in the core policies of the company that associated with supplier code of conduct, sustainable packaging and the principles for controlling the products. Proper placing of the watch trade in the target market is essential. With the emergence in this new area of trade. The company has the responsibility to maintain ethics towards the employees. Moreoevr, the maintenancde of the supplier conduct is essential to place the product in the right place. In this regard it has been observed that the company has sweeps the marketing department with Robinson and Doidge. Proepr maintenance of the ethics has helped the company to help the company to consider the marketing data and it need to develop the loyalty and turning around the retailer. Maintenance of the principles regarding the harmful chemicals has ensured the maintenance of the development of the sustainability in the core business process of the company. Consideration of the code of conduct for the suppliers is associated with the maintenance of the sustainable packaging of the product.
Conclusion
Thus, it can be concluded from the above diuscussion of David Jones that the company is considering the marketing mix and the marketing management to define the effective tool of marketing for the introcudtion of new line of watch trading in the fashion. The outcome has identified the market section in terms of demographics that is helping the company to place the product in the proper place for development of the sustainable business. It is necessary to add the proper description of the watches in the product description manual for better highlighting of the product. It is evident that the addition of the product description add atual and core value towards the product. Proper positioning of the property is essential in tha target market that can highlight the success in the core business operations. Distribution strategy of the company is associated with the deriving the place in online media whre the consumers can place the order.Based on these principles the strategic fit of the company has been developed to address the ethical sources and that is essential for maintaing the sustainability in the environmental aspects.
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