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Marketing Portfolio MKTG101

Table of Contents Part 1) Market Research and its use in a marketing plan. Part 2) Who are the competition for your favourite product? Part 3) PESTEL and how this affects the introduction of a new product or service. Part 4) SWOT analysis and its use in the marketing plan. Part 5) Segmentation, targeting and positioning in marketing (STP): Part 6) New product/services launches or brand management: A success and failure. References

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Part 1) Market Research and its use in a marketing plan Market research is a business activity that aims to investigate information that’s used in making marketing decisions. It allows organisations to develop a greater understanding of the overall market. White Castle, An American fast food hamburger chain that was founded back in 1921 utilises market research to recognize the shift in consumer behaviour towards a healthier range of products, this shifted its marketing strategies towards targeting millennials and teens.

However following White Castle’s struggle to appeal to younger demographics over the years. The old-fashioned burger chain outsourced its quantitative research, which found that plant based meat alternatives were growing at a rate of 11% per year (Meyer, 2018). In 2018 White Castle utilized this data through its partnership with Impossible foods, a plant based meat company that launched a new range of healthy burgers at White Castle. Hoping this will drive the more health conscious consumers such as millennials and teens into White Castle (Garfield & Jacobs, 2018). This shift in consumer behavior has led White Castle to expedite a new objective that aims to target generations Y & Z (those born between mid 1990’s and 2000’s) which is a $5 billion market for plant based meat and seafood. As product specialization is the strategy that’s being employed, where a concentration on offering a single product range to a number of market segments. In this circumstance, consumers shift towards a healthier range of products is seen through the partnership of Impossible Foods and White Castle, launched on April 2018 it aims to target both generation Y & Z as they “drive food trends”, Kim Bartley CMO of White Castle.

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Though market research has assisted White Castle in identifying a new consumer trend towards plant based meats. However, an essential proposal would be to re-brand it’s current physical marketing such as it’s logo, product designs, and buildings to attract a younger demographic. As the current modeling is outdated which is a poor representation of a heath conscious ‘White Castle’.

Part 2) Who are the competition for your favourite product? Competition is the challenge organisations, individuals and companies face when marketing a similar product or service. Its conception is based on a number of internal and external factors such similar behavior, perceptions, target market and products. Spotify, a music streaming service that recently filed for an IPO (initial public offering) in February faces tough monopolistic competition from Apple Music. This has pressed Spotify to reposition itself in the market space to integrate with social media aspects by allowing individuals to share and track each others playlists while discovering new songs. Which has allowed Spotify to refocus itself on the social aspects of music streaming by combining technology, data analytics and social aspects such as media transfer, live playlists, concert times and proclaiming early individual artists to provide a more competitive customer experience.

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Through Spotify’s ‘free tier’ integration, it’s managed to place the company with 170 million subscribers. However the organisation ‘only’ has 75 million paying subscribers, which is still double Apple Music (Clover, 2018). The expansion into the upgraded free-tier program has allowed Spotify to convert more paying customers and maintain its essence as a market leader (Broussard, 2018). Spotify’s upgraded free tier program allow users to listen to any track that’s within it’s curated playlists, this is a huge competitive advantage in attaining new customers into Spotify, as Apple Music only offers a free 3 months option and a subscription is a must to continue.

Spotify’s differentiation into a free tier program has allowed them to sustain it’s growth over it’s 8 year tenure. However Apple is an extremely large company with vast amounts of resources. Its presence in music sharing is only a small portion of their technologies available. Creating a huge external threat towards Spotify in the future. To counter this, Spotify should expand into music hardware integrating AI (artificial intelligence) such as consumer speakers and earphones. This will allow Spotify to utilize its data from large amounts of its customers and further expand its social aspects becoming a technology company rather than an application on ‘Apples’ services.

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Part 3) PESTEL and how this affects the introduction of a new product or service PESTEL is a framework that’s used to analyze the impact the external environment has on an organisation. It consists of evaluating political, economical, sociocultural, technological, environmental and legal factors. Amazon an American e-commerce website, posting profits for 11 quarters straight recording a profit of $1.9 billion during the last 3 months of 2017 (Ray, 2018).

Political Australia is known to have one of the worlds highest company tax rates at a 30% corporate tax rate. Which caused a lot of concerns in the past that have delayed Amazon’s presence. Nevertheless Amazon’s entry into Australia’s market has been to a slow start, due to having prices that aren’t competitive (Chalmers, 2018). This is due to having increased tax rates such as GST and company tax that’s accounted for in Amazon’s pricing. Economic Even though Australia’s income tends to be one of the highest in the world. The cost of living in Australia tends to become higher as well. This has consistently reduced the disposable income of average Australians YoY (Austin, 2017). Which has slowed Amazon’s entry into Australia as they start to setup their infrastructure in Australia (Chalmers, 2018).

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Social In the end of 2030, millennials will account for 54% of the Australian population. Millennials as technologist, encounter a new approach to purchasing decisions (Robin, 2017). As Amazon targets this sector by providing the most competitive prices, they stand strong in gaining a huge market share in Australia’s demographic. Technological With Amazon greatly relying on technological advancements in its services. Australia’s consumer trend focuses itself at the presence of customer experience. Amazon’s entire business model relies of automation, data analytics and innovation, which allow them to stay ahead of its competitors (Henderson, 2018). Environmental With more and more consumers adopting sustainable practices, Amazon has adopted sustainable practices such as the 100% recycled packaging used in its warehouses and launching ‘Sustainability Question Bank’, these initiatives allow consumers to perceive Amazon as a CSR company (Murray 2018). Legal When having a global presence it makes doing business very different in each country as each have distinct laws and features. Australia’s ‘Consumer Law’ was changed back in 2016 to better protect Australians; this has caused Amazon to change its contract laws to meet Australian standards (Munro, 2017). Analysis Although Australia’s barrier to entry has slowed Amazons growth, it’s recommended that Amazon should focus on its long-term presence of building and expanding its infrastructure through technology and better-located warehouses to further reduce prices. This could ultimately result in short term losses but can maintain a viable future in the Australian market place.

Part 4) SWOT analysis and its use in the marketing plan SWOT is a simple analysis tool used to assess the internal strengths and weaknesses as well as external opportunities and threats within organisations. It breaks down where an organisation is today and where it wants to be. Tesla, founded in 2003 is an American electric carmaker and home energy solutions company.

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The company is under Elon Musk’s leadership, and through his guidance, Tesla is one step closer to achieving its mission ‘transition the world into electric vehicles’. Even though Tesla spends $0 on paid advertising, they’ve created a grand social presence by becoming the market leader in electric vehicles and forming a strong belief through Musks vision (Sunley, 2017).

(Percentage of social discussion held by each brand on the subject of ‘electric’ vehicles)

Furthermore Tesla is the only car company that distributes its vehicles within its own network. This means it has two sales channels within the entire company, their flagship stores and Tesla’s own website. This allows Tesla to generate a more exclusive aura towards its products. However it does present an issue though, it limits Tesla’s ability to expand into other markets without large sums of capital. They would need to create and maintain service centers, charging stations, manufacturing plants and supply chain managements in order to meet demand. As consumer trends focus towards the idea of sustainability it has allowed Tesla to generate funding easily through both private and public investors (Pratap, 2017). This provides Tesla capital to further reduce the cost of electric vehicles down to a more competitive price. However it should be in Tesla’s concern that over the coming decades more and more car manufactures will be transitioning into electric vehicles, ultimately increasing competition. To ensure Tesla’s future, it’s recommended that Tesla focus its efforts onto manufacturing technology and a sustainable manufacturing plant that’s able to meet supply and demand.

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Part 5) Segmentation, targeting and positioning in marketing (STP) Segmentation, targeting and positioning (STP) involves identifying certain segments of the market and evaluating the segment to determine the exact type of consumer that exists for the market. The global fashion industry suffered a major setback in the past few years, witnessing the actions of ‘fast fashion’ and it’s damages to the environment. Now begins the start of sustainability and its emphasis on fashion (Grille, 2017). As Adidas welcomes sustainability in it’s new collaboration with ‘Parley’, the brand has shifted from the use of polyester into recycled plastics to create fashionable ‘Ultra Boosts’.

Adidas is seen as a traditional sports brand, however through new efforts and collaborations Adidas is targeting the bigger problem. The endless cycle of plastics ending up in oceans and into our environment which caused significant instability to our planet. Adidas has started to find ways to not only remove rubbish from oceans but also recycle these plastics into shoes (Leighton, 2018). Ultra Boosts x (collaboration) Parley sells for $200 USD. This has created a feasible target segmentation for Adidas, developing high quality fashionable products while ensuring sustainability. As consumers are more conscious about where organisations spend their money and where their products come from. Furthermore the price set by Adidas ensure the brand is protected and maintains that quality effect. Thereby customers aren’t price conscious because the product is unique to the brand. In practice it’s difficult for Adidas a company that produces millions of products a year deem sustainable. Thus the brands concept is to partner up with sustainability causes like Parley to promote the effects of recycled high quality shoes. However to capitalize on this trend it’s recommended, Adidas should start investing at the composition of their ingredients, to insure that the transition into other plastics or polyester degrade properly into the environment. This in turn will allow Adidas to generate more environmental segments and remove the notion of environmental degradation from big corporations.

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Part 6) New product/services launches or brand management Airtasker is an Australian startup, which enables users to outsource everyday tasks. Airtasker is part of the gig economy trend, it’s essentially a marketplace for individuals to earn and outsource tasks while Airtasker takes a percentage for connecting the service. As of 2018, Airtasker has more than 1.7 million users, which was a 240% gain from last year (Rees, 2018). Assisting its growth was key partnerships formed with IKEA and Coles. These external partnerships have allowed Airtasker to boost its growth by providing more tasks while mutually benefiting both parties (Cartwright, 2018). Furthermore an improvement in infrastructure has allowed the company to handle large amounts of traffic without interruptions. However with strong competitors in the gig economy I recommend it should focus on its core asset – its users, by developing greater skill sets. Such as initiating a training program on certain difficult tasks, users gain a mutually beneficial gain from both Airtasker and up skilling its core customers.

Despite Tesla’s ambition to transition the world into electric vehicles, the automaker is currently over 6 months behind in Model 3 production. This is due to Musk’s over reliance on automation and technology. Creating massive bottlenecks within the production. As Tesla aims to reduce automation now, an internal factor was the lack of human capital used within its factories, which has caused a massive drop in production time (Heisler, 2018). It’s recommended that Tesla should provide extra after sales services to those customers in the long wait. This could mean providing a free upgrade to their system to reconcile with customers.

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References Austin, A. (2018). It's official. Regular Australians are getting poorer | The New Daily. Retrieved from https://thenewdaily.com.au/money/financenews/2017/07/09/household-income-falling/ Broussard, M. (2018). Spotify Expands Free Tier With On-Demand Playlists and Data Saver Mode. Retrieved from https://www.macrumors.com/2018/04/24/spotify-expands-free-tier/ Cartwright, J. (2018). Airtasker moves Ikea and Coles trials to Australia-wide services. Retrieved from https://techau.com.au/airtasker-moves-ikea-and-colestrials-to-australia-wide-services/ Chalmers, S. (2018). Amazon unveils next phase of Australian push. Retrieved from http://www.abc.net.au/news/2018-02-27/amazon-rolls-out-next-phase-ofaustralian-launch/9489078 Garfield, L., & Jacobs, S. (2018). White Castle is going all out to lure millennials and teens — and McDonald's, Burger King, and KFC should be scared. Retrieved from http://www.businessinsider.com/white-castle-millennials-teen-impossible-foods2018-4////?r=AU&IR=T/#they-also-came-around-with-trays-of-unlimitedimpossible-sliders-onion-rings-and-fries-6 Grille, S. (2018). Sustainable fashion: trend or future of the industry? - Magazine Horse. Retrieved from http://www.magazinehorse.com/en/sustainable-fashiontrend-or-future-of-the-industry/ Henderson, J. (2018). Aussie retailers may turn to tech to compete with Amazon. Retrieved from https://www.arnnet.com.au/article/633634/aussie-retailers-mayturn-tech-compete-amazon/ Heisler, Y. (2018). Report details how Tesla’s reliance on robots led to Model 3 production delays. Retrieved from http://bgr.com/2018/05/01/model-3production-delays-robots-too-many-robots/ Leighton, M. (2018). These Adidas are made from recycled ocean plastic, and they're the most comfortable running sneakers I've tried. Retrieved from http://www.businessinsider.com/adidas-parely-ultra-boost-womens-review/? r=AU&IR=T Meyer, Z. (2018). White Castle goes highbrow? Now famous slider can come with fake beef. Retrieved from https://www.cnbc.com/2018/04/12/white-castle-goeshighbrow-now-famous-slider-can-come-with-fake-beef.html

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Munro, A. (2018). Will Amazon pay its fair share of tax in Australia? | finder.com.au. Retrieved from https://www.finder.com.au/will-amazon-be-payingits-fair-share-of-tax-in-australia Munro, A. (2018). Australia Post hits back at Amazon over GST collection | finder.com.au. Retrieved from https://www.finder.com.au/australia-post-hits-backat-amazon-over-gst-collection Murray, T. (2018). Amazon's Big Opportunity: Transparency In Sustainability. Retrieved from https://www.forbes.com/sites/edfenergyexchange/2018/04/02/amazons-bigopportunity-transparency-in-sustainability/#2f8fe52e7c50 Pratap, A. (2018). Tesla Marketing Mix and marketing strategy. Retrieved from https://www.cheshnotes.com/2017/09/tesla-marketing-mix-and-marketingstrategy/ Ray, J. (2018). Amazon has posted a profit for 11 straight quarters — including a record $1.9 billion during the holidays. Retrieved from https://www.recode.net/2018/2/1/16961598/amazon-jeff-bezos-record-profit11-quarter-q4-2017-earnings Rees, G. (2018). 2018 CRN Impact Awards: Rackspace and Airtasker. Retrieved from https://www.crn.com.au/feature/2018-crn-impact-awards-rackspace-andairtasker-488265 Robin, M. (2018). How Millennials will shift Australia's spending habits: Macquarie. Retrieved from https://www.smh.com.au/business/investments/how-millennialswill-shift-australias-spending-habits-macquarie-20170619-gwtskf.html Sunley, R. (2018). Tesla's Successful Marketing Strategy Shows That it's Time for CEOs to Get Social. Retrieved from https://www.socialmediatoday.com/technologydata/teslas-successful-marketing-strategy-shows-its-time-ceos-get-social

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