The primary purpose of the report is to specify the marketing plan of an IT company in Australia for the launch of the new product that is a wrist watch that comes with an innovation. The marketing plan is formed using different marketing tools and marketing strategies such as Swot analysis, objectives of the firms, its competitors, market segmentation and marketing mix. The report also analyzes the external and internal factors that affect the business using pestel or situation analysis (Pollack and Adler 2014). Market planning helps the managers know as to whom they should target the new product and the factors that are likely to affect the launch of the product. The manager also identifies the costs and the expected revenue that it is going to earn from the launch of the product provided the product targets the customers that it intends to. The main aim of formulating the marketing plan is to predict the challenges that it is going to face and formulate the strategies to solve the problems. The company plans to launch a wrist watch that is a wearable accessory that incorporates computer and advanced electronic technologies for fitness and exercises (Hollensen 2015).
Figure: Wrist Watch
(Source: Pollack and Adler 2014).
Various macro environmental factors affect the business and the products. The external factors that affect the business can be explained using PESTEL analysis. These are:
Figure: Pestel analysis
(Source: Yüksel 2012).
Political factors- government plays a great role in influencing the growth of the business. Australia being a mixed economy government has a great role to play. So it is essential for the company to analyze the tax structure and the government that influences the market before launching the product (Yüksel 2012).
Economic factors- the factors such as interest rate, price level, inflation rate, economic growth and employment greatly affect the businesses. Economic growth in Australia depends on the service sector so it will beneficial for the IT Company to reap the maximum benefit that it can.
Social factors- social factors that affect businesses are beliefs, values, customs, attitude, lifestyle, sex, demography and behavior. It is essential for the company to analyze the factors that influence the buyer behavior before launching the product. Analyzing the behavior of people as to whether the product will be accepted or not is essential.
Technological factors- Since it is an IT company it is essential for the organization to analyze the technological aspect whether some better technologies are available in the market or not that it can use for innovation (Yüksel 2012).
Environmental factors- the product that the company launches should be eco friendly in nature. The company has an added benefit because Australia is rich in its natural resources.
Legal factors- legal factors such as environmental protection laws and rule also affect the business. Managers should analyze that the company is fulfilling all the legal factors or not.
Swot analysis is another form of marketing strategy that analyzes the strengths, weakness, opportunities and threats of the company.
Figure: SWOT analysis
(Source: Hartley and Claycomb 2013).
Strengths- the market for the technologies and accessories is developed and is still growing in Australia. This adds to an advantage for the company. The large international IT Company already has support from the international market. So it can target the international customers as well globally (Hartley and Claycomb 2013).
Weaknesses- the main weakness of the product is that the market under which it operates is not well developed. The price that the company expects is low. The main weakness is for its competitors.
Opportunities- Australian businesses get great support from the government. The opportunity that the company gets is from government and international market.
Threats- the main threat for any business is its competitors. The other threats that the company is likely to face is from the change and innovation that it is trying to introduce. The threat is that whether customers will accept the new technology and innovation that the company wants to launch (Hartley and Claycomb 2013).
The primary objective of the IT firm in Australia is to maximize its profit and make the consumers aware of the product that it is planning to launch. The aim and the objective of the firm are to promote its commodity not only in local market but in global market as well to grab as many clients it can. The objective of the corporation is to satisfy its customers along with employees of the organization. The marketing objective of the organization is to commence the commodities in a well established marketplace so that the firm does not face any loss. It includes a selling strategy that is set by the director of the company to achieve the overall managerial aims and objectives. The objective of the firm is to marketing strategy that will help the organizations achieve the set goals and targets (Sashittal and Tankersley 2015).
Marketing strategies includes marketing segmentation where the market is divided into subsections for launching the product and capturing it. Marketing strategies are formed so that the firms can achieve the goals that it has set. It is essential for the firms to form a market segment or the customer segment to which it would like to sell the product. Market segmentation depends on the various factors such as geographical, demographical and environmental. The company that is planning to launch an accessory in form of wrist watch that incorporates technology in it will target the customers aged 20-45. Mainly the male members of the society will be targeted because women go for stylish products instead of technologies. Since the product includes technology that can be used to improve health those people will be targeted who are health conscious (Wedel and Kamakura 2012).
Figure: marketing strategy
(Source: Wedel and Kamakura 2012).
Positioning strategies is creating a unique position in the market. It includes competitor analysis. The main competitor of the IT Company that is planning to launch wearable accessories is Apple Company that has launched a similar type of product in the market. It can face competition from accessory firms as well such as Fastrack and others. Competitor can be mitigated by formulating a proper marketing strategy. A good marketing plan also helps the company achieve a Competitive advantage and target the clients who are not aware of the technology that is not launched (Solomon 2014).
Marketing mix is another marketing tool used in marketing planning that includes the four Ps such as price, product, place and promotion.
Figure: Marketing mix
(Source: Sheth and Sisodia 2015).
Price- the demand for goods depends on the price and hence it plays an essential role in forecasting the demand for the product. The price of the product that the company will set at the level where it is able to cover up the cost and that is reasonable by clients. The customer choice will also be kept in mind (Sheth and Sisodia 2015).
Promotion- since the firm is launching a product that is new in the market it is essential for customers to be aware of the product. Internet, common media, sales encouragement and direct sales are some of the promotion techniques that can be used to market its products.
Place- the place where the allocation of the merchandise is Australia as well as the global marketplace. It is an Australian based worldwide corporation.
Product- the product that the firm is planning to launch is a wrist watch that comes with a technology to measure fitness and exercise (Jobber and Ellis-Chadwick 2012).
Since the company incurs the cost of $15 per watch while producing and marketing it. It will charge approximately $30 per watch to earn a profit of $15.
Marketing plan is an essential tool before setting or launching any product as it helps the managers determine the factors that are likely to affect the business. Promotion of the new product is necessary in order to make the customers aware of the product.
Hartley, R.F. and Claycomb, C., 2013. Marketing mistakes and successes. Wiley.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
Huang, R. and Sarigöllü, E., 2012. How brand awareness relates to market outcome, brand equity, and the marketing mix. Journal of Business Research, 65(1), pp.92-99.
Jobber, D. and Ellis-Chadwick, F., 2012. Principles and practice of marketing(No. 7th). McGraw-Hill Higher Education.
Pollack, J. and Adler, D., 2014. Does Project Management Affect Business Productivity? Evidence From Australian Small to Medium Enterprises.Project Management Journal, 45(6), pp.17-24.
Sashittal, H.C. and Tankersley, C., 2015. The Marketing Planning and Implementation Interface: Some Empirical Evidence. In Proceedings of the 1994 Academy of Marketing Science (AMS) Annual Conference (pp. 103-108). Springer International Publishing.
Sheth, J.N. and Sisodia, R.S., 2015. Does marketing need reform?: Fresh perspectives on the future. Routledge.
Solomon, M.R., 2014. Consumer behavior: buying, having, and being. Engelwood Cliffs, NJ: Prentice Hall.
Wedel, M. and Kamakura, W.A., 2012. Market segmentation: Conceptual and methodological foundations (Vol. 8). Springer Science & Business Media.
Yüksel, I., 2012. Developing a multi-criteria decision making model for PESTEL analysis. International Journal of Business and Management, 7(24), p.52.
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