You are required to develop a detailed marketing strategy for the introduction (or launch) of a new product or service into the Australian market,for one of the following industries; Australian Retail, Australian Fashion or Australian Online B2C marketing.
Your marketing plan must include detailed analyses of customers and competitors as well as the general marketing environment in addition to a comprehensive positioning strategy.
Based on an evaluation of the protein powder market and our strengths, our company will introduce the ProSup protein supplement in the Australian market.
Decades ago, the contemporary global market for protein supplements has witnessed a rise in demand. This phenomenon is attributed to increasing concerns and awareness of customers’ health concerns and the realization that food alone cannot provide complete dietary proteins required in their body normal functioning. Healthcare services provided by mushrooming fitness centers, health clubs, and gymnasiums across the world contribute significantly to the growth of this market (Paddon-Jones et al., 2008). Due to competition, the players need to introduce new and innovative products to the market which are appealing to the consumers and serve this health concerns.
According to Transparency Market Research – “the impact of the augmenting awareness level among them regarding the benefits of protein is substantially high on this market and is anticipated to continue driving the growth of this market over the next few years. The opportunity in the worldwide market for a protein supplement is anticipated to attain a value of 2.20 billion by the end of 2017. Researchers expect the market to further rise at a CAGR 5.30% between 2017 and 2022, reaching 2.84 billion by 2022
Most of the protein supplements produced today doesn’t focus more on children under the age 5 years, who require special nutritional values due to the fact that they are growing and developing neurologically at a very rapid rate (Venne et al., 2013). Also is at this age children are more active in playing and other outdoor activities which require more protein intake. ProSup has been produced to fill this market gap.
What makes ProSup one of the most appealing product to the customers is the active ingredient which is easily ingested into the body of the user. The ProSup packaging and labeling designs will be creative and captivating to attract the interest of consumption by children. In the recent times, the global market for protein supplements has witnessed a steady rise in its valuation. The increasing concerns of consumers over healthcare and the mushrooming of fitness centers, health clubs, and gymnasiums across the world are the main factors behind the significant growth of this market. Over the coming years, the market is likely to gain significantly from the increasing competition within the market that will impel player to introduce new and innovative products.
Having a superior brand with a unique niche in the marketplace, we are in a position to establish a three percent market share in the first years after ProSup launch. ProSup supplement will break-even by the year 2020.
The company will introduce ProSup as a new product in the market, using penetration pricing, competitive positioning, brand strategy, and distribution channels in order to increase our revenues and growth rate (Marketing Strategy, 2013).
Competitive Positioning
Generally, ProSup does not enjoy first entry advantage as there are already players in the market and the company is aware of that fact. The market is at the growth stage. All that is required is positioning in terms of product differentiation, targeting, and segmentation (Marketing Strategy, 2013). The already players in the market largely targeted customers with more than six years of age. ProSup target children of less than 5 years as its unique market niche, therefore it is not anticipating much competition in the market.
The major product competitors in the Australian market are:
Product Analysis
For ProSup to be competitive in the market, it has the following innovative features:
The above feature position ProSup as a superior product in that niche relative to other similar supplements. Provided that the contemporary Australian market is growing and changing, especially the need for protein supplements, the demand is becoming insatiable. ProSup is certified, safe and efficiently suited for consumption.
We are looking forward and focus on customer intimacy as it competitive market strategy. This is because the protein powder market is flooded with products at all points of the pricing spectrum, yet the prospective customers want more than a product off the shelf; they want customized solutions. So, ProSup’s entry strategy is to know their customers’ needs requirements and try to deliver the correct solutions over time.
The company will work to achieve market leadership by strategically providing the best quality supplement in the market. We have noted that our customers care most about the quality and safety of the products they consume especially the prescription products. As the forward-looking target, the company aims at investment in market innovations and product quality for the achievement of market leadership after three years of operation (Marketing Strategy, 2013).
What is the brand architecture?
ProSup powder will come in different colors and tastes. ProSup has a mix of taste, flavor, and color which will be consistent and look appealing to the users, in our case children under the age of five years. It will be packed in a reusable container with a well-sculpted drinker for children. This will not only touch the emotional part of the user but also serve in easier and convenient usability.
What is the brand experience?
ProSup seeks to give excellent customer experience after usage. They also have a variety of choices to make with regard to their taste and preferences ranging from vanilla, strawberry, chocolate, groundnuts etc. Our customers will be sure of value for their money because they will always get the desired health results. This is true because ProSup has concentrates that a child requires for proper growth and development.
For children under the age of 5 years and are running under low protein due to an imbalanced diet, who want protein powder supplement, the ProSup is the product that provides them with tastes, colors, and flavors uniquely blended to offer them a variety of choices depending on their preferences while retaining the same product quality and performance. Unlike Naked Whey, the ProSup offers high-quality protein concentrate, great taste, and flavor all in one at a good price
This is the study that will identify the company internal strengths and weaknesses, as well as its external opportunities and threats (SWOT & PESTLE.com, 2017).
Strengths – Though there are competitors in the market, ProSup will provide a unique branding, coloring, taste, and flavors for the children under the age of five years. Most of the protein powders generally target a wide range of customers, whereas ProSup target a specific segment. These innovations give a comparative advantage to ProSup in the market. We will also offer value and quality product coupled with fair pricing.
Weaknesses – A new product like ProSup need extensive marketing and promotion to position it in the selected market segment. The costs can cause cash flow problems which result in cash drains. Though ProSup may become a strong brand in the market, the capacity of the company may not be able to bridge the gap in the competition. Still, in the market segment there are reputable businesses well establish and known by the customers, and for ProSup to bridge the gap need invest a lot of resources in marketing and promotions prior to product rollout in the market.
Opportunities – the ProSup market is expected to grow over time owing to people’s appreciation of the need for supplements in modern day healthcare. Industry trends are studied to make forecasts in the market. The study includes trends related to consumer conduct, occupation, industrial developments, new inventions, government norms and other factors that impact the industry. Positive changes to these trends provide an opportunity for ProSup.
Threats – However, ProSup is not immune to threats in the market. Such threats like political and economic negative changes. Changes in government and government policies like the new tax system have an impact on ProSup. In addition, companies come together to enjoy economies of scale, production cost and response to completion.
ProSup Pricing
Being a new entrant in the market, in the short-run ProSup will face the challenge of marketing due to already established products in the markets. The major task here will be our capacity to communicate product value to the prospective customers (Keller, 2009). We will be required to explicitly make them appreciate the uniqueness and value accompanying ProSup. Though there are different pricing strategies, pricing ProSup will consider post-marketing evaluation report.
However, ProSup will use a mixture of three strategies, namely:
The above-mentioned strategies will be applied accordingly depending on the ProSup market cycle in both short-run and long-run. At the early stage, ProSup will be priced depending on the level of competition during product launch and the cost of production. The pricing approach will be penetration pricing to encourage high distribution of ProSup and customer exposed to the product in the midst of competing substitutes. In short-run, flexible pricing policy per the market segment needs and buying behaviors of the customers will be applicable, in the context of the prevailing product market cycle. In long-run other pricing methods and strategies will be used depending on the prevailing market needs and changes.
It is important to understand the prospective customers of ProSup and how they want it to reach them. To understand this we need to conduct marketing research prior to actual distribution. To choose the most appropriate channel we consider whether end users need personalized services or whether they want training on the use of the product. In this regard, ProSup doesn’t as it is easy to follow instructions for usage by the adult caretaker of the children in need of protein supplements.
In our case, the channel of distribution is how we intend to reach our target customers who are the end users of ProSup. Conventionally, there is traditional distribution as shown
(Source: Thom, H. (2012). How to Create a Distribution Strategy That Actually Makes Money. Management, Leadership, and Technology. https://www.thomholland.com/distribution-strategy.
Buying process of ProSup is straightforward and doesn’t require expert directives or special training. And also being a new entrant in the market, it is prudent enough to take the most cost-efficient channel. Therefore, the sale process of ProSup will be through the company retail outlets. Our outlets do marketing and promotions of products, have direct contact with the users, and are able to respond directly to customers’ reactions and also report back to the manufacturer. As a result, the company is able to add more profit margins to the product.
ProSup will build a natural relationship with all the stakeholders in the distribution channel. This relationship will not only last but also will create a way of information sharing for mutual co-existence.
ProSup will have a systematic way of trickling profit margins down the selling system. The system carefully maps out the prices for each step in the channel and includes a fair pricing for each type of partner. The pricing system will eliminate pricing conflicts, which are common, and can threaten the success of the entire strategy.
Marketing objectives
ProSup is at the conceptual stage as a viable innovative idea. Before the actual introduction to the market from the manufacturer, a research on the market will be conducted for a better understanding of the target segment and other market dynamics.
For the main marketing objectives of ProSup are:
4Ps of Marketing
The 4Ps of marketing is a model for studying components of ‘marketing mix’. Marketing mix studies the ways the new product is introduced into the market using a different kind of choices available to the organization. It helps in examining market options in the context of the product, price, promotion, and place so that the product addresses the customers’ expectations and needs (Jobber and Ellis-Chadwick, 2016).
Product – ProSup protein powder is made for children under the age of five years. It will be used to supplement their low protein intake. ProSup will have different packaging, tastes, colors, and flavors at the same time retain its quality ingredients and value.
Price – We will use penetration pricing at the entry into the market. In the short-run, the mix of different pricing strategies will be used, like segment pricing and competitive pricing. ProSup offers the value for money given the great features, and value combined.
Promotion – ProSup is a straightforward product, with clear usage instructions. Therefore, for convenience, cost factors and pricing, selling process used to distribute our website selling, through our retail outlets. Our franchise partners are regarded for their close contact with the actual users of ProSup.
To increase market coverage, brand awareness, and increase sales of ProSup the company will integrate the following promotional methods (Keller, 2009).
Place – ProSup will be available in all our major shop stores and other retail outlets through company franchise partners.
Political factors – ProSup being a nutritional supplement is highly regulated by the World Health Organization (WHO). This makes governments focus more on regulating ProSup to meet the required standards (SWOT & PESTLE.com, 2017).
Economic factors – Customers buying habits depend on their economic power. They tend to be more sensitive to price fluctuations, and due to prevailing market conditions becomes a tricky decision to make in ProSup product pricing (SWOT & PESTLE.com, 2017).
Social factors – ProSup will be faced with social-cultural changes in the market. The market may change demographically, culturally, religiously, employment and attitude which may impact positively or negatively on ProSup (SWOT & PESTLE.com, 2017).
Technological factors – Technology advancements are making something possible that never, like internet selling and online shopping. Infrastructural needs of the company can be met by technology improvements. Also the levels of technology our competitor are using affect decision making for ProSup (SWOT & PESTLE.com, 2017).
References
SWOT & PESTLE.com. (2017). Dell SWOT & PESTLE Analysis – SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/dell/ [Accessed 23 July 2018].
Marketing Strategy. (2013). 2nd ed. The University of Sutherland.
Jobber, D. and Ellis-Chadwick, F. (2016). Principles and practice of marketing. 8th ed. Maidenhead: McGraw-Hill Education, p.791.
Venne, C., CH, M., TM, L. and SM, P. (2013). Role of protein and amino acids in promoting lean mass accretion with resistance exercise and attenuating lean mass loss during energy deficit in h… – PubMed – NCBI. [online] Ncbi.nlm.nih.gov. Available at: https://www.ncbi.nlm.nih.gov/pubmed/23645387 [Accessed 23 July 2018].
Thom, H. (2012). How to Create a Distribution Strategy That Actually Makes Money. Management, Leadership, and Technology. https://www.thomholland.com/distribution-strategy
Keller, K. (2009). Building strong brands in a modern marketing communications environment. Journal of Marketing Communications, 15(2-3), pp.139-155.
Paddon-Jones, D., Westman, E., Mattes, R., Wolfe, R., Astrup, A. and Westerterp-Plantenga, M. (2008). Protein, weight management, and satiety. The American Journal of Clinical Nutrition, [online] 87(5), pp.1558S-1561S. Available at: https://ajcn.nutrition.org/content/87/5/1558S.full [Accessed 23 July 2018].
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