HI5004 Group Assignment- Long Marketing Plan Project
In this study, detailed research is to be conducted on the new product, launch operations, and marketing in the Australian market in the current year. The research will identify the factors and aspects that the firm operating in the market often faces over their new product launches. Also, the research will identify the factors and aspects that are associated with the effective launch of the product. All the associated information and knowledge regarding the product launch is to be identified and elaborated in the research in order to have adequate knowledge in the product launch scenarios of the market. The new product launch is going to take place in the Australian market hence they will identify and elaborate the adequate competition and environmental analysis regarding the product market and market demands in order to have successive product launches during the year. For the convenience of the research, the launch of a new sports shoe named Sports Balance has been taken. The shoe will feature outdoor sports activities.
In the Australian market there are multiple sports brands that are providing sports shoes in the Australian, the customers in the modern market are quite fond of the products and services that they are getting from these brands and hence new product launches in the market will be very competitive. In this context it is to be added that the sports shoes brands are developing at a rapid pace in the market. This is mainly because the sports industry is an industry that trades 12 months a year and the demand for new and modified shoes is always there. Hence the market is full of competition. The Australian market is mainly dominated by the Asics (5%) and New Balance (6%), hence the launch of new products will be very tough to advertise and intersect in the market. Asics and New Balance are dominating in the sports market over the years and have been registering million dollar sales. Not only that the inclusion of the featured and modified shoes for the particular needs of the athletes. Hence the Sports Balance needs to be spot on regarding their product features and quality in this competitive market. Not only that the firm must also need to concentrate in its marketing and advertising operation which should feature the qualities and benefits of the product along with the feedback and satisfaction that the athletes will have in their sports activities. The normal peoples and customers also uses the sports shoes in their daily lives. Hence the firm must also keep these factors in mind that the normal customer and general people can feel the difference in qualities and features in the product compared to the existing brands during the year. This will help their product views and popularity among the customers which will benefit the increase in sales of the product during the year. Hence the Sports Balance needs to have certain information and knowledge before implementing their launch program; these information and factors are listed and evaluated as follows:
Identify key competitors
At the initial point, the firm needs to identify the key competitors that they would face in the market during the year. The competition in the domestic market is the one that they need to be worried about. The Australian market is mainly dominated by the Asics and New Balance, hence the launch of new products will be very tough to advertise and intersect in the market. Asics and New Balance are dominating in the sports market over the years and have been registering million-dollar sales. There are also Adidas, Nike, and Puma which have sustained market goodwill. Hence the Sports Balance must have knowledge of these imitators and their products. The products and margin of the competition need to be analyzed and evaluated by the Sports Balance before conducting any launch event of the product (Chernev, 2019).
Identify key product features of the competitors
The above-mentioned companies are all globally registered as one of the best brands in their respective product segment; hence the Sports Balance must identify the product qualities and features provided by these firms in order to know the level of the competition. This is mainly important so that the Sports Balance can also provide quality and features that the customers will find attractive.
Have information regarding the pricing of the similar shoes
The pricing in the domestic market of these products are to be identified by the Sports Balance in order to the price range in which they will launch their product. Aggressive pricing is the key that the Sports Balance must follow in order to success and attention in the market (Kotler, 2018).
Know about the requirement of the customers
The Sports Balance must conduct research and campaign order to know the customer requirements and needs and also the trends and preferences of the market in the domestic sector. The product launch can feature the advertising of the features and qualities of the shoes that the customers are looking for in the market. It is effective to increase the overall market response for newly launched products (Deepak, 2019).
Political factors: The Company Sports Balance, must be aware of the basic merger between Adidas and Reebok, that has increased the market competition and resulted in Asics and New balance to gear up with more competitive options. Market lobbying is another concern to be dealt with.
Economical factors: the Australian per capita income is stated as the 10th strong one in the world. The 1.375 trillion US dollar of trend in the 2020 GDP growth is certainly supportive in the new business development. The Sports Balance, can utilise this opportunity to set up its new option for better option (austrade.gov.au, 2020).
Social factors: The three parts of Australian community are Upper class, Middle class and working class. The income stability is well supportive for people to enjoy basic needs and support days end requirement. The trend in the sports enthusiasm cannot be undermined as the Sports Balance will be providing more of sports shoes.
Technological factors: The opportunity in the development factor for technological part in sports shoe department as provided by world market can be utilised by Sports Balance. Advancement in smart shoes can be incorporated within the new trend (superwh.com, 2020)
The Sports Balance needs to have adequate knowledge of the market demand and requirement before starting their production operations. The measured production plans help in the cost saving and saves the firm from producing excessive products compared to the demand. Hence the firm must conduct market survey and campaigns in order to collect data and information regarding the market demand and a valuation of supply of products. The firm needs to conduct their mathematical forecasting in order to have adequate numbers or the quantity in which the products are to be sold in the market. The domestic market is very competitive thus the firm first needs to issue limited numbers of products. This is beneficial for the firm's cost saving operations and restricting the chances of creating the situation of old stock dispatch action (Keegan, 2017). Expected growth rate of athletics shoe in demand for 2020 is US$404million. This is the vale for annual growth in increased demand of 5.0% (statista.com, 2020). this very factor justifies why there is a high chance for the new development in market demand.
Specific market segmentation, targeting, and positioning statements
In the modern international the use of the specific market segmentation, targeting, and positioning model is often observed. This is the second most popular method after the SWOT or TOWs matrix. In the specific market segmentation, targeting, and positioning model the firm observes and evaluates their target market in which they are planning their product launch. Not only that, the inclusion of the model is beneficial in having proper plans and strategies for the market through which they can plan the positioning in the competitive market. The specific market segmentation, targeting, and positioning model, helps the firm in identifying their target customers, their requirements, market standards and qualities.
The new product line will be segmenting market in sports enthusiast, daily joggers, players and playing for fitness personnel. The segmentation will not cover specification on gender or age.
The target customer will be personnel within the age of 9 to 60 years.
The positioning of the new product line will be in market places and corners of attraction point in Australia to make people aware of it.
According to the conducted research it is concluded that the inclusion of the researched factors are essential for the Sports Balance in terms of having suitable knowledge and information regarding the market factors and aspects that will be deciding the result of their product launch and business development during the year. The research also indicated the various strategies and plans that the firm needs to prepare by gathering customer requirements and demand information that can help them maintain their business operations during the year.
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Deepak, R.K.A. and Jeyakumar, S., 2019. Marketing management. Educreation Publishing.
Keegan, W.J., 2017. Global marketing management. Pearson India.
Kotler, P., Keller, K.L., Ang, S.H., Tan, C.T. and Leong, S.M., 2018. Marketing management: an Asian perspective. Pearson.
statista.com, (2020) STATISTA Available from https://www.statista.com/outlook/11020000/107/athletic-footwear/australia Accessed on 6th may 2020
superwh.com, (2020) SUPERWH Available from https://www.superwh.com.au/page/guide-buying-asics-running-shoes.aspx Accessed on 7th may 2020