MKT600 Marketing Plan Of Progressive Assessment 2 Answer

pages Pages: 4word Words: 890

Question :

ASSESSMENT 2 BRIEF
Subject Code and Title
MKTG6002/MKT600 Marketing
Assessment
Assessment 2: Marketing Plan
Individual/Group
Individual
Length
3000 words (+/- 10% excluding cover page, reference etc).
Learning Outcomes
This assessment addresses the following subject learning outcomes:

a) Critically evaluate underpinning marketing theories and principles and appropriate research process to collect,
store and use of data to generate customer insights;
b) Critically evaluate customer needs to create value for customers by deploying the resources of the organisation in best possible ways
c) Critically evaluate the impact of an organisation’s marketing
mix strategies on its stakeholders.

Objectives:

  • To enhance a clear understanding of the importance of marketing in modern business practices;
  • To develop a succinct understanding about marketing theories and their application in devising marketing strategies;
  • To critically analyse all relevant factors affecting the exchange process;
  • To enable developing insightful marketing strategies for a business.

How the assessment fits into the subject/course:

Marketing in the 21st century has evolved profoundly where developing winning marketing strategies has been integral to businesses of all types in order to achieve its strategic objectives. This assessment provides students with the opportunity to apply the knowledge and insights developed in the marketing subject to develop effective marketing strategies for a business, a product or a brand. Students are required to develop a complete marketing plan for their chosen organisation's product or the brand which they worked in the Assessment 1. The emphasis within this assessment should be placed on expanding various steps as recommended in the marketing plan template while the current marketing situation and threats and opportunities analysis to be briefly discussed by summarising the discussion from the assessment 1.

Linkages between Assessments 1 and 2:

This assessment is the continuation of the assessment 1. In assessment 1 students addressed two (i.e. current marketing situation and threats and opportunity analysis) out of the eight steps of a marketing plan. In this assessment students are required to develop a complete marketing plan for an organisation's product or a brand of their choice. Since the assessment 1 and 2 are interrelated so students in any situation are not advised to change their organisation that they chose in the assessment one.

Instructions:

This assessment task builds on the Situation Analysis that you undertook in Assessment 1. This assessment task requires you to expand the remaining steps of the marketing plan to:

  • Articulate your learning about marketing theories, concepts and principles covered so far to demonstrate your level of understanding of them to develop a marketing plan;
  • Articulate the link between marketing theories and practices;
  • Demonstrate an acceptable level of research skills to reveal the insights;
  • Apply appropriate business report writing skills;
  • Demonstrate a logical flow and cohesiveness in the analysis and discussion.
  • Use the appropriate in text citation nd a reference list in your written work. You should provide at least 15 high quality marketing references to show quality of research. STRICTLY adhere to the APA style in referencing.

Scenario:

This assessment requires you to act like a consultant to help an organisation develop a winning marketing strategy that wants to introduce a new product or expand its business/markets.

Tasks:

This part of the assessment is a follow-up to the Situation Analysis that you provided in assessment one. Therefore, you need to revisit assessment 1 and the feedback from your facilitator. Then, develop a complete marketing plan for this assessment to:

  1. Develop a marketing plan – The aspects that you should include are:
  2. Identify objectives and issues as well as marketing logic to create customer value;
  3. Segmentation, targeting and positioning as well as marketing strategies (i.e., 4ps/7ps);
  4. Action programmes - how marketing strategies will be turned into specific actions that answer What will be done? When will be done? Who will do it? and How much will it cost (budget )? and controls.

To start this task.

  1. Outline the followings:
    1. Define clearly the value proposition of your chosen business, product or the brand;
    2. Critically evaluate the business's situation (provide a summary of SWOT/TOWS analysis from the assessment 1 and suggest appropriate marketing mix strategies:
    3. Product - define the product attributes/features to reflect your value propositions

You are advised to review the threes levels that are accompained with a product and discuss product line and mix strategies;

  1. Pricing – describe the pricing strategy (cost-based, value-based and competition) that you recommend to the senior management of the organisation and justify your choice;
  2. Distribution – outline the distribution strategies, you should discuss a specific distribution strategy (s) - intesive, selective and exclusive. You also need to discuss channel strategies (i.e., direct and/or indirect, channel levels - single vs. multiple);
  3. Promotion – outline the promotion strategies you would recommend (i.e., pull vs. push) . You also need to discuss promotional mix strategies (i.e., advertising, salesmanship, sale promotion, publicity and public relations) as well as media strategies. Please beware that your marketing strategies should  be aligned with the value  proposition as well as  the

organisation's mission, vision and objectives.

Show More

Answer :

Marketing Plan

1.0 Introduction

In order to make sales easier and sufficient, it is crucial for every business organization to develop certain basic market plans and strategies which would help them to earn profits. Therefore, it is the prime responsibility of leaders to establish a proper market plan to increase its company’s sale and thereby increase the strength of the company. In this way, a company can grow and flourish. Moreover, in the contemporary world, there is constant competition among different companies dealing with similar products (Hughes, 2008). Under such a situation it is important for every company to develop effective and feasible market strategies. The procedure of market planning includes the formation of certain guidelines which are to be followed in order to launch, sell and market the particular product dealt with by the company within a specific period of time (Iram& Mittal, 2018).The present report discusses the marketing plan of Progressive which is a renowned furniture company in Australia.  The plan is developed to market its newly designed office furniture in the market so that it can attract the customers and enhance the sales.  

2.0 Marketing Objectives

Marketing objectives represent the goals set by an organization while launching and promoting its product in the market. Progressive’s is currently focused on launching new and improved product office quality furniture in the market.  Thus, the marketing objectives for Progressive for its new office furniture are discussed as follows:

  • To increase the sales of the organization by 5% so as to attain a high-profit margin necessary for the business to succeed in the long-run.
  • To strengthen its customer relationships by marketing its product and promoting it properly would amplify customer relationships
  • To enhance the market share by 2% through marketing and attracting more customers  
  • To increase brand reputation and brand value by gaining costumer’s trust and faith

These are the various marketing objectives which Progressive office furniture considers while promoting its product in the market. The accomplishments of these objectives are essential for the sustainability of the business in the current market.   As a result of which the reputation of Progressive office furniture and its brand value would diversify.  This is absolutely necessary for the organization to expand its brand name.  Marketing through different media provides the organization to gain exposure and therefore grow its business. Marketing is that gaining large-scale customer feedback would help the organization to proceed with its manufacturing process i.e, to focus on the production of new products or focus on improvements required in the earlier one.

3.0 Value Proposition of Progressive Office furniture business:

The value proposition of Progressive Office furniture focuses on the following in order to attract customers:

  1. Setting reasonable price: For the implementation of value proposition it is important for the organization to keep the cost of production low so that they can sell it at a reasonable price.  This enables Progressive office furniture to influence customers towards the product manufactured (Progressive Office, 2020).  
  2. The product must be unique: The furniture in an office has a great impact on creating brand value and motivating the work environment (Oblaket al. 2017). Therefore, Progressive Office furniture manufactures and designs furniture which is distinctive in nature, so that they can compete and supersede other office furniture making companies in the market. There has to be some unique design which will attract customers. For example- the furniture of the organization offers a better plan for the design of office furniture to their clients along with a 3D plan for the project (Progressive Office, 2020).
  3. Quality of the product- Although the furniture needs to be budget-friendly, the quality of the product should not be compromised with (Progressive Office, 2020). It should be cheap looking or of poor quality. The amount invested by customers should not be a waste.  Progressive Office furniture also takes this into consideration seriously. 
  4. Durability: Since the furniture is to be used for office purposes, it is purchased for group consumption (ZwierzyƄski, 2017). Therefore, the durability of the furniture is a vital criterion which the organization focuses on (Progressive Office, 2020).
  5. Cooperation with the partners: The organization takes upon the responsibility of cooperating with its partner to complete the entire task of designing, manufacturing, delivering, storing and finally installing the furniture (Progressive Office, 2020).

Issues

There are certain issues which can arise during the execution of these value propositions in gaining absolute customer preference and satisfaction. It is often found that in order to supply the product at a low price, manufacturers face difficulty to reduce their cost of production. This may result in the use of low-quality constituents. Therefore, the furniture will lack durability and an attractive and presentable look. This can be a major drawback in achieving a maximum sale in the market. Moreover, it is not always possible for the organization to supervise every sector of the work from designing the furniture to installation. It is easier to say than to do.

4.0 Evaluation of SWOT analysis

From the SWOT analysis done earlier (Kapoor and Kaur, 2017), it is clear that Progressive Office furniture has an efficient network for designing, manufacturing and installing the furniture with an experience of about 25 years. Progressive office furniture has a chain of efficient members working in teams with full cooperation. Moreover, services provided by the organization are also done responsibly and on time. Moreover, the organization sells products which are reasonable and worthy. However, the areas where Progressive office furniture lacks is that it does not intend to expand the business in a global market. It operates solely in Australia and encounters stiff competition. Another factor in which the organization is still lying behind is promoting its brand through digital media. In this era of technology, this is one of the primary media which every developing organization adopts (Gruel and Tat, 2017).  

5.0 Marketing Strategies  

5.1 Segmentation, Targeting and Positioning (STP)

In order to bring growth in business, it is not necessary to have worldwide customer support. It is enough if a particular segment of customers is involved in the purchase of products made by the Progressive office furniture.  In this respect, marketing strategies should be based on that specific group of customers. This is termed as niche marketing. This simplifies the process of focusing and utilizing resources efficiently in a definite direction. The model that can be used for selecting groups of customers to be focused on and target them for marketing is the  Segmentation, Targeting and Positioning model (STP) (Andaleeb, 2016).

 Significance of STP


Figure 1: Significance of STP

(Source: Schlegelmilch, 2016).

5.1.1 Market Segmentation of Progressive

Demographic segmentationThe demographic segment considers factors like age, income, gender, the situation of the family and educational qualification The demographic segment for Progressive office furniture includes the males and females. The age of the targeted customers would range from 20 years to 70 years. The income of the targeted customers would be minimum AU$1025. Since, this is office furniture, thus targeted need to have their own office or is aspiring to open up their new office (Camilleri, 2018).   
Geographic Segmentation  Progressive is an Australian based company and it has its presence in Australia and this has increased over-dependency and thus it can diversify to and New Zealand. Consequently, its target market would include all the cities of Australia and New Zealand, especially the areas which are considered to be corporate. 
Behavioral Segmentation  Progressive would mainly target the customers who are looking for cost-effectiveness. People who are easy going but love to add some designs and a corporate yet cozy look in their office forms the main target market of the company. The existing customers as well as the first time users also form the target market of the company.     


5.1.2 Targeting Strategy of Progressive 

Progressive has mainly targeted the low-end customers who are willing to dedicate their office with less priced yet good looking cozy furniture (Sawhney et al, 2017).  In this case, the organization decides to sell the same product to all the groups or segments without selecting a specific one. This can lessen the cost of production, cost of advertisements and cost of promotion. This is because a similar product is launched and sold, advertised and promoted to the mass (Ford, 2019). It is important for Progressive office furniture to have complete knowledge regarding the preference of the customers. They have to be specific on ascertaining the features customers look into their products. Furthermore, Progressive has to provide attractive discounts to their newly designed office furniture that would attract the customers. Considering the products of IKEA, Progressive would offer 30% more discounts to their office furniture and this would help in better attracting the customers and address the issue of stiff competition. The company has focused targeting local markets and this would satisfy all the requirements of a particular segment. However, this can have a negative impacton the organization’s growth and profit-earning since the products are various but the target is one(Ford, 2019). 

5.1.3 Positioning 

Progressive can use an attractive tagline for marketing its office furniture in Australia as well as in NZ.  A selected tagline is:

‘Affordable and attractive solution for your dream office’

Progressive would position its products in terms of price and quality.  Progressive would launch its products as low priced yet attractive and quality. This would help to attract its targeted   customers who prefer value for money. The longevity of the product manufactured by the organization shall be linked with the brand name of the organization (Zia and Kumar, 2016). The positioning strategy has been linked to the brand name of an organization with a particular usage of its product. The quality of the product manufactured by Progressive office furniture shall be linked with its brand name. Like every other organization Progressive office furniture also has certain specialties which they need to protect so that nobody can copy, degrade or counterpoise them (Progressive Office, 2020). These specialties are as follows:

  • Specially designed wooden staircase storage for offices in order to store all important work related files in a sorted way. This will be helpful employees to search for necessary documents easily.
  • 3D designed conference tables 
  • Unique designed computer desks
  • L-shaped desks
  • comfortable and relaxing chair  for workers
  • Attractively designed bookshelves for storing all kinds of books in the waiting room as well as in various other corners of the office.
  • Stylish designed cozy sofa sets. 

5.2 Market Mix Strategies: The 4P’s

The Market mix is the various tools which can be used by the company to influence and control the perspective of targeted customers to provide a positive reaction and show an appealing attitude towards the products they manufacture (Majid et al. 2017). These tools help the organization to develop market plans and thereafter implement those. 

5.2.1 Product

Core Product: Progressive office furniture deals with modern designed and 3D effected furniture for offices. The desks are available in various sizes based on the size and need of the offices. The chairs are comfortable and designed efficiently to provide comfort to the office workers. The conference tables are designed to give the offices a classy look (Progressive Office, 2020). Moreover, furniture, bookshelves and sofa sets to be incorporated in client waiting rooms are designed so as to provide the clients an amicable waiting environment. The staircase storage facility provides storage space for keeping important documents. The overall work environment can be motivated through the furniture manufactured by Progressive office furniture. 

Actual product: The Progressive office furniture provides all sorts of furniture needed to develop an office. These are designed distinctively to give the office a presentable appearance. Therefore, the furniture shall be durable and reliable in order to get consumer preference. Moreover the quality shall be worth the money invested by the customers. The furniture is budget-friendly, manufactured of solid wood and is accurately polished. This gives it a shiny and sophisticated look. 

Augmented product: Considering its value and mission of offering quality products (Assessment 1) office furniture by Progressive shall be sold with a minimum of warranty period of full replaceable facility for 6 years and for servicing facility of 10 years. It also provides a user manual with every furniture to direct the individuals as to its operation. Moreover, Progressive should build networks and cooperate with workers to arrange for free installation of the furniture.

5.2.2 Price 

Price strategy for Progressive office furniture shall be based on value based pricing rather than cost of production based or competition based pricing (Andaleeb, 2016).  Focusing on competitive pricing can be of no help to the progressive office furniture. Competition can lead to more deterioration with no positive yield. Cost-effective pricing is not helpful to regain its status in the market. They have to sell their furniture at low prices to influence customers. Since the organization is suffering as per the situational analysis done before, it is important for them to prefer value-based pricing to raise the purchase rate of the customers (Hinterhuber & Liozu, 2012). If customers find that the prices of Progressive office furniture are reasonable and worthy, they will be attracted and drawn towards it. This will provide customer satisfaction.  This will influence the profit margin of the company thereby helping them to cope up and grow their business. Hence, Progressive office furniture will be in a position to produce improved and high quality office furniture in future and provide the best consumer experience. This is a slow process but is effective in the long-run.

5.2.3 Place 

This is the main criterion to be concentrated on. Distribution of the product is the main profit-earning factor.  The company should focus on specific locations for distributing furniture. They should develop contacts and networks with the managers of various offices so that they get the tender for furniture whenever required (Yang et al, 2017). Thereafter, it is important for Progressive office furniture to create channels in the different offices. Progressive would sale its products directly as well as indirectly. This implies that the company would sale its products directly through its stores. Furthermore, there would be other retailers who would be selling their products. This would help to enhance the reach towards the customers. In case of the indirect distribution channel, there would be distributors who would be distributing the products to the other retails and from there the products would be sold to the customers (Takata, 2019). However, in case of the indirect distribution channel, the products would be sold directly from the showrooms. 

As commented by Niu & Liu (2017), development of website has helped to improve the distribution strategy of the organization. For creating its presence in NZ as well as enhance its presence in Australia, Progressive can sell its products via internet. The organization needs to create a good online presence and develop its website on which the customers can place their orders and would get delivery of the products.   Online selling of the furniture would help in extending the customer base by better reaching out to the customers and this would help to increase the sales of the organization.  Online platform would help in creating an effective competitive advance and address its current issues as identified in Assessment 1. 

5.2.4 Promotion

In this sector, the organization shall concentrate on media of giving advertisements and promoting the product, promoting sales and discounts, selling personally etc (Majid et al. 2017). As commented by Banerjee (2017), advertising is a significant strategy for reaching out to the customers and also crate brand awareness. As per the core brand value as identified in Assessment 1, Progressive focus on offering durable and quality office furniture to the customers. Consequently, the advertising strategy would help to create awareness about this brand value and mission. Both online and offline advertisement can be carried out by the company.  Nowadays digital marketing is a big platform. Therefore, progressive office furniture can promote their office furniture through digital media so as to increase their sales. Advertisement on social media would create mass awareness and help Progressive to better position its products. Offline advertisement would include print media.  They shall put hoardings; advertise in different channels so as to reach more and more people. 

Competition within the market is a major issue and cheap alternatives of plastics are easily viable. Thus, Progressive has focused on its pricing aspects. Thus, it can make use of sales promotion for the new launch of its office furniture in which the products would be initially sold at attractive discounts (Jiang & Ma, 2018). This would help to attract large number of customers. However, the company needs to assure quality to make sure that its mission and core values are maintained. 

Promotion of the office furniture by Progressive can also be carried out with the help of public relation. Public relation is the process of maintaining relationship with the external stakeholder, epically customers, community and government to generate goodwill in the market (Babatunde & Ajibola, 2017). For instance, Progressive can organize some community events or press conference or invest in social activities that would aid in creating a presence in the market. Furthermore, Like IKEA, Progressive can open a public platform on social media for crowd creation in which the customers can put forwards their ideas regarding the designs of furniture. This can help them to better connect with them as well as develop designs that would be attractive and preferable to them.          

Conclusion

 From the above discussion, the knowledge relating to market planning to be implemented by Progressive office furniture is clear. For growth and development of having a definite marketing strategy is important. Therefore, on sufficient implementation of these strategies, the outcomes and results achieved by the organization can be ascertained. This will help the organization to build its foundation and strengthen its position in the market (Banerjee, 2017). It is the responsibility of the marketing team to constantly improvise, change and improve the market planning activities so as to keep pace with the changing technologies, changing market situation as well as changing needs of the customers. However, such planning should be done keeping in mind the company’s need, mission and vision i.e., the goals and objectives of the organization.