Target Market
The number of students is high across Australia and ever-increasing. The stationery market is competitive and we will deal with all brands to attract different buyers who are loyal to their tastes. Macquarie (2005) explains that the selected market will specialize on students from learning institutions like universities and colleges. He says that the bus stop, tuition blocks, hostels and student centers are strategic and lucrative to locate the machines (Macquarie, 2005, p.36).
The aim is to reach the students where they are and induce buying to get maximum returns. We will specialize in stationery that is used regularly thereby improving the clients esteem, operations and pleasure during learning. We will provide competitive sales services through modern technology in the sales points. Customers will buy the different brands of stationery from one-stop-shop providing immediate solutions of stationery requirements.
Market Size and Trends
We anticipate a large market size from the pool of students. This will be enhanced by unbeatable competitive pricing to contain rivalry from other players. We will specialize with brands that are common to maximize on their familiarity. Duboff and Spaeth (2000) argue that the main goal is to increase sales volume gradually with an average annual rate of 10%. They explain that the amount of goods sold will be indicated in the machine as a bench mark data for analysis.
The buying trend is expected to increase drastically due to good location and better prices. We will develop a frame work of predictable pricing in all outlets to caution any resistance from competitors by employing long-term and short-term measures that will help create good returns on the venture. We will use accurate projections of stock every time to avoid dead stocks and the changing consumer interest.
Competitive Analysis
The business is unique, being the first to offer a stationery vending machine in Australia. The market size is ripe with the strategic location of the vending machines at the university, college and meeting points as opposed to our competitors like bookstores and supermarkets located at town center away from customers. Having specialized, we will be able to buy stock directly from the manufacturers or appointed distributors giving us lower prices and other discounts which will be passed on to our customers according to Oster(1999). Most of our competitors rely on suppliers who sell a variety of goods and they do not benefit from special discounts. The capital outlay needed is minimal and we will be able to finance the business fully in comparison to our competitors who have a variety of items that need huge capital.
Multinational competitors may use their financial base to lead to aggressive price wars and advertising. We intend to fix our prices to the lowest possible as we endeavor to offer superior value to our customers. We will collaborate with the manufacturers to sponsor some vending machines and adverts. To attract customers from our rivals, we will carry out promotional campaigns across institutions, use interactive sites like Twitter and Facebook, journals and academic magazines, as explained by Oster (2005).
Evaluation
To avoid uncertainty while maintaining cost-effectiveness and profitability, we will collect enough information about the products we are selling. We will utilize innovative methods of collecting first-hand data from our clients by visiting the actual location of the machine to get the client’s complaints and study their reactions. This will help develop tailor-made solutions to their concerns. To extend our care, we will use the contacts available to reach our customers and listen to their grievances, followed by immediate solutions. Equally, we will employ salesmen to visit our clients at the buying point and residence to collect feedback that will help us know the areas that need change or shift so that we adapt to the new market trends. We will keep an eye on our competitors and gauge our success and failure against their performance.
Pricing
In this stage, we endeavor at having competitive prices as possible. During pricing, we will cover costs ranging from purchases, running costs and profit to have an assured cash flow. This will include costs of damaged goods, shortages, employees’ allowances and incurred losses if any. However, we will keep our prices at the minimum by lowering costs at every level. Phillips (2005) explains that the prices will be adjusted whenever producer prices change when competitors change their prices, economy shake-ups or when we change our sales strategy. The business will avoid copying the competitors but capitalize and improve on their weak areas.
The product’s life cycle will be important so that we know when to clear stock or order more. Towards the examinations, we will review our prices to reflect the demand shift. However, the main goal is to have competitive prices across the brands as a tool for attracting customers.
Advertising and Promotions
Belch (2007), explains that the main aim is to promote the new business while creating awareness that will lead to direct market response. We will use print media like flairs, posters, buying space in student magazines, promotional banners, direct mails to students’ emails, newspaper inserts and adverts, editorials, television and radio among others. Each vending machine will contain an electronic advert describing the products available and their prices. We will utilize sales staff to ensure personalized advertising that will lead to direct contact with our clients. We will provide tailored print materials coupled with free samples obtained from the manufacturers.
At all public joints where our customers meet, we will have a demonstration on how to use the machine and a simple game where the winner takes home a prize. We will keep an eye on our competitors and use competition strategies to counter their influence against us. All the machines will be decorated with images and writings on the products describing our uniqueness according to Hackley (2009).
References
Belch, G. (2007). Advertising and promotion: Integrated marketing communications perspective (7th ed.). Illinois: Richard D. Irwin, Inc.
Duboff, R. & Spaeth, J. (2000). Market research matters: tools and techniques for aligning your business. Toronto: John Wiley &sons.
Hackley, C. (2009). Advertising and promotion: An integrated marketing communication. London: Sage Publications Ltd.
Macquarie, E. (2005). The market research toolbox (2nd ed.). London: Sage publications Ltd.
Oster, S. (1999). Modern competitive analysis. London: Oxford university press.
Phillips, R. (2005). Pricing and revenue optimization. Stanford: Stanford university press.