Introduction and Situation Analysis
Four N Twenty Pie is a managing manufacturer which is specialized in meat pie products. The remarkable element presented in the industry is considered to be the companies internationalization being observed at an ever growing pace. Over the previous 20 years, enterprises have considerably distorted their orientation reaching the international level; they have moved from domestic markets to international ones.
The emergence of the international market has been followed by the rapid mixing and growth of countries; the local trading blocs configuration; the market economies formation; and benefits in communications technologies. Nowadays, international marketing is considered to disclose a great significance to different countries of all stages. All around the world, enterprises are trading using equipment from other nations. (Fill, 1999). National economy growth and health have appeared to be considerably dependent on sales rate as an engine of development. (Drejer 2002).
Four N Twenty Pie is regarded to be a marketing organization having four main functions:
- product and market management,
- marketing planning
- market and marketing research,
- advertising and promotion.
The members of marketing channel have a great influence on how Four N Twenty Pie is to fulfill these functions. It is considered to be essential that channel members selection and channel programs development should be compatible with marketing organization objectives managing the channel. Market and product management organizations such as for example Four N Twenty Pie are provided with special examination. Society strives for the protection of small business considering benefits from efficient mass distributors and producers. It provides limitations for competition but at the same time seeks the small prices. It demands the lowest prices but high salaries for labor (Marketing Plans and Business Plans 2008).
Internal Environment Analysis
SWOT is a widely used thinking framework aimed at identifying Strengths, Weaknesses, Opportunities, and Threats. SWOT analysis is used to illustrate that Four N Twenty Pie has a strong position on the market due to its individual vision and quality of services proposed to consumers. SWOT depicts that Four N Twenty Pie successfully identifies the major advantages and threats of appropriate market position and operations of the company. The modern market share of Four N Twenty Pie is about 25 %. (Meat Pies, 2000).
Strengths
The strengths are considered to be strong expert system and brand image, perfect website and consumer support. Resource-based research and innovations make new opportunities for the development of the market and brand recognition. Consumers’ loyalty can be reached through the employed by Four N Twenty Pie people.
Opportunities
The opportunities contain great potential for development and profitability, and corporate culture and professional management team, free shipping. There is a perfect opportunity for the enterprise in this field, because specialized shops throughout the whole world have great interest in products made in the environmentally friendly manner.
Weaknesses
The key weaknesses are small market potential and uniqueness of the product. Competition is considered to be the most dangerous threat to Four N Twenty Pie. Despite weaknesses and threats, Four N Twenty Pie takes an attractive position focused on a combination of customer services and cost management (Develop a Marketing Plan 2008).
Threats
Limitations of geographical market and great competition are the major threats for Four N Twenty Pie.
Competition
New entrants’ threat is insignificant due to the fact that entry barriers are high enough and companies’ competitiveness is strong. The problem lies in the fact that volume size does not influence the cost base. Competitors present commodities’ with no differentiation and client loyalty is low. Besides, high inventory competence and costs barriers prevent many companies from entering this market.
To bargain power of suppliers is rather high as Four N Twenty Pie counts heavily on products of high quality and time delivery. Four N Twenty Pie suppliers obtain a unique availability product; they can exert a strong impact on prices and supply conditions, potentially providing pressures on some businesses purchasing their products. The most important fact is that there is a limited number of suppliers in this industry. Competitors strive to follow similar strategies as Four N Twenty Pie counting on cost leadership and product differentiation.
External Analysis – PESTEL
Today, the political situation is rather stable and is marked by various liberalization reforms and democratic processes. Strong political traditions provide a great influence on the Australian market. Corruption and political interference are the main risks for a foreign organization.
Legal Factors
Legal Environment: Australia presents laws and regulations to provide support for foreign subsidies and grab the attention of FDI (foreign direct investments). To support the national economy, the government tries to prevent price growth, or even to roll them back in such basic industries as steel. The involvement of the government seems to relate the price growth to the impact on increased productivity and inflation. Government has the impact on roll back price increases.
Economic Situation
Economic situation is characterized by low inflation level and high profit per capita. So, liberalization and high investments level can be regarded as chances for a company to enter a particular country. Australia can provide high living standard. There are some necessities for meat pie company to make long-run capital commitments, in order to meet the requirements of all the Joint ventures with nationals, and the imposition of special beneficial taxes and import duties on necessities, as well as differences in location considerations, social legislation, home products protection, laws affecting standards and labels, transportation and communications problems. All these can create many additional uncertainties to those having relation to national marketing.
Social-Demographic Factors
The purpose of social-demographic factors lies in fast population increase and mortality rates decrease. It is the northern half of Australia having the larger population, and, despite provisions for moving refugees to the south, this distinction is not likely to disappear.
Technological Factors
Technological factors cover the development of telecommunication infrastructure, new methods of doing business and information availability.
Such factors as continued economic growth, increased disposable income, vigorous domestic and foreign competition, accelerating technology, automation, population decentralization, expansion, and innovation will spur the appearance of this new marketing form. The application of computer technology and the use of new analytical techniques have added greatly to the efficacy of planning activities.
Segmentation, Target Market, Positioning
Segmenting decisions can be complicated by the fact that national income figures, such as those cited for Australia are averages. Age segmentation will involve young people between the ages of 18 – 28, and young families who value good products and low cost. These people shared interest in fashion, music, and a youthful lifestyle, exhibit consumption behavior that is remarkably consistent across borders. Young consumers may not yet have conformed to cultural norms. Gender segmentation will have a great influence on marketing campaign, but it is predicted that the majority of consumers will be males.
Psychographic segmentation will help to group people in terms of their attitudes, values, and lifestyles. The majority of the target audience is stylish young people who admire fashionable cars and lifestyle. They will feel the new model is tailored according to their needs and wants. Income segmentation: the car market consists of those who are willing and able to buy. The buyers belong to upper, middle and low class families. Taking into account standards of living in Australia, they will offer 0% interest for five years or the option (Fill, 1999).
Potential buyers are diverse in character. They represent $175 billion in annual buying power and about $1000 per week in disposable income. These customers expect to find unique products, regardless of what the price and proposition. This target group can be characterized as the skeptical consumers who are health conscious (Four’ N Twenty Pie. 2008).
Objectives
The objectives of Four N Twenty Pie are to increase its sales and attract a wide target audience including middle-age citizens. The main goals of the company are to get and keep a new customer. Also, it is aimed to achieve competitive advantage and sustainable competitive creating value for their customers, select markets where they can excel and present a moving target to their competitors by continually improving their position. Three of the most important factors are innovation, quality and inventory reduction.
Marketing Strategies
When a product is standardized, it becomes established for minimum quality and features, competition shifts to a greater emphasis on cost and service. Consumer electronics marketing strategies are the broad approaches intend to adopt in the longer term to achieve its marketing objectives in accordance with its marketing policies. New strategy will take into account increased competition. The blend of controllable marketing variables required producing the response wanted in the target market. The mix includes new products, prices, promotion, packaging, advertising, field sales and distribution. Internet services and Internet providers are another potential area for Four N Twenty Pie. The management goals will be to penetrate all regions in three years and double sales volumes in 4 years.
The market skimming pricing strategy will be part of a deliberate attempt to reach a market segment that is willing to pay a premium price for a particular product. Companies that seek competitive advantage by positioning their products in the premium segment frequently use market skimming. The skimming pricing strategy is appropriate in the introductory phase of the product life cycle when both production capacity and competition are limited. By setting a deliberately high price, demand is limited to innovators and early adopters who are willing and able to pay the price (Household Expenditure Survey. 2008).
The core strategy of Four N twenty Pie will be based on value propositions and product differentiation is well developed. The main strengths of this strategy is clear identification of the product advantages and potential target audience. This strategy will result in a plan that can assist the company in selecting and positioning of the product. Product differentiation strategy will help to create entry barrier for other companies and creates a unique market proposition. This strategy makes sense because of a product’s perceived uniqueness. Differentiation should be achieved as a result of unique product attributes and effective marketing communications.
In the case of Four N twenty Pie, product differentiation and brand loyalty increase for would-be industry entrants who would be required to make substantial investments in R&D or advertising. As with the selling philosophy and relationship strategy, Four N Twenty Pie must include comprehension of the target market’s characteristics and the fact that prevailing needs and wants may mandate products that are different than those offered in the home country.
As the first marketing tactic element, differentiation should create a truly different and unique product for customers. Four N Twenty Pie not only has to be perceived differently by customers (positioning), it has to be really different in content, context, and infrastructure (differentiation). In addition to differentiation strategy, product positioning will help to establish trustworthiness, confidence, and competence for customers (Jacob et al 1998). If the Four N twenty Pie has those elements, customers will then have the “being” of the company within their minds. It is about earning customers’ trust to make them willingly follow Four N Twenty Pie.
Because customers cannot be managed, they have to be led. In order to successfully lead customers, Four N Twenty Pie has to have credibility. So positioning is not just about persuading and creating an image in the consumers’ minds, it is about earning consumers’ trust and loyalty. Positioning strategy should support differentiation strategy in order to widen product potential market. It will help to occupy the consumers’ minds with unique offerings and will lead the customers’ credibly (Kyler, 2006).
Implementation Action Plan
Product Peculiarity of Four N twenty Pie is that they propose a wide range of products available for diverse customer audience.
Advertisements; in local and national press, radio and TV, off-the-page advertising, direct mail, a catalogue selling, posters, billboards, signs, and free gifts. Internet advertising: web banners and web site. It will help to control product perceptions and feelings toward the brand in real-time (Hollensen, 2007).
Promotion: TV programs and press clubs, newsletters, press releases. Press conferences will help to inform potential clients about recent developments and innovations, about future directions and strategy of the company. Newsletters will inform all clients about recent changes and innovations applied by the company. This information will help to create an image as a unique brand. Online promotion: on-line community. Since business is not as usual, the promotional plans of the firm should be somewhat similar to a contingency plan. This contingency plan is designed to maintain the proactive orientation of the firm.
Channels of distribution: marketing organizations and direct agents. Agents will be representatives who act on behalf of the national marketing. The agents will be paid on the basis of commission. It is expected that in two years the company will create its own distribution system.
Special programs will be involved:
- customer feedback input,
- customer satisfaction surveys, and
- total quality control.
So-called worldwide relationship surveys are run about every 12 months. These surveys include some product questions but ask how satisfied the customer is with the company as a whole and how Hewlett-Packard rates against its competition. Also, the company will monitor the revenues versus the costs of manufacturing and selling of the pies (Marketing Plan Outline 2008).
Implementation and Control
- August 1st – Start creating advertising campaigns and the internet website for consumers.
- September 1st- the beginning of the production of the new types of pies.
- September 15th – national and local advertising and promotion campaigns.
- October 1st – the first pie will be distributed to the different leadership.
- October 8th- Internet promotions will begin for some individuals who are looking for purchasing their vehicle online.
- October 15th- Special promotions will start for the new vehicle at dealerships.
A special attention will be devoted to the milestones (each month) which determine whether or not sales are being met.
Review Monthly reviews will be used as an indication of the future growth. Sales reviews in each geographical region: will help to review sales patterns and buyers’ behaviors. National reviews of over all sales and the budget will indicate whether or not the company is on track (Marketing Plan. 2008).
Conclusion and Reccomendations
In the market place covering so many different firms, it is difficult for an enterprise automatically to establish its identity. The deliberate action to accomplish this identity cannot be so sporadic. Companies, typically, got used to promote and advertize when the economy is in the peak, and they usually cut down advertising and promotion during the economic slow-down. Though, they must go on with their promotional program making only a few adjustments at the periphery while the economic conditions change. Accelerating promotional activity may not be quite adequate to counteract the turbulence.
Reference List
Drejer, A. 2002, Strategic Management and Core Competencies: Theory and Application.
Australian Scholarly Publishing. Develop a Marketing Plan. 2008. Web.
Fill, C. 1999, Marketing Communication: Contexts, Contents, and Strategies 2 edn. Upper Saddle River, Australian Scholarly Publishing.
Four’N Twenty Pie. 2008. Web.
Household Expenditure Survey. 2008. Web.
Kyler, B. (2006) The Definition of Marketing. Has It? Web.
Marketing Plan Outline (2008). Web.
Marketing Plan. 2008. Web.
Marketing Plans and Business Plans 2008. Web.
Meat Pies. 2008. Web.