Mktplan MF 21 05 - Marketing Plan for Major Project PDF

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Marketing Plan for Major Project...

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Marketing Group Plan: TheCoolBox

Overview: TheCoolBox is an innovative portable cooler that was birthed from the observation of the needs of everyday people, especially those who are heavily involved in outdoor activities. TheCoolBox is a cooler which provides exemplary temperature retention whilst offering a wide range of other convenient features. This marketing plan will outline how this product will assimilate into the domestic Australian market, identify threats and opportunities, as well as detail the necessary marketing strategies associated with price, product ,placement and effective distribution of the product. TheCoolBox will be launched under Bunnings Warehouse which is owned by Wesfarmers. Bunnings is considered the leading retailer of “home improvement and outdoor living products in Australia and New Zealand” (Bunnings 2018). Being a brand that is held in high regard within the Australian community, we partnered with this brand because it best fit our product as well as our company goals and focus on the community.

Situational Analysis Macro-environment Analysis for TheCoolBox Political: Stability of the Australian Government. Conflicting parties have different views towards the level of domestic and international competition, creating uncertainty for the company as we attempt to make appropriate marketing decisions. Furthermore, possible GST and income tax changes may impact the operations of the business overall. Economic: The Australian Cash Rate currently sits at 1.5% and has been since the 3/08/16, reflecting the RBA’s use of monetary policy to encourage spending within the economy. Australians are historically bad at placing income into savings, implying high levels of disposable income. If consumers have higher levels of disposable income it means that they have a higher probability of purchasing an item such as TheCoolbox. Inflation is currently within the 2-3% target band reflecting the Australian economy’s slow but gradual growth in economic activity. Sociocultural: These factors affect people’s attitudes, beliefs and behaviours towards certain attitudes. We will need to consider cultural, religious and population trends, especially if the trends have the possibility of negatively impacting TheCoolBox market. Marketers will need to forecast possible changes in consumer trends and adjust accordingly to minimise impact.

Technological:

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An ‘Esky’ or cooler has a primary purpose of storage, however at this very moment battery limitations means that storage is being compromised in order to provide other differentiating features. As battery technology continues to advance, competitors may implement this new technology and we may possibly be pushed out of the competing market if we are slow to react. With a shift towards wireless charging and the phasing out of physical ports, we may need to invest in R&D to eventually integrate this new technology into TheCoolBox. Environmental: As society becomes more aware about the environmental impacts of product usage, corporate social responsibility has come to the forefront of social conversations and become the cornerstone of the public perception of a company. Sustainable production methods would primarily come from sourcing recyclable resources to produce the durable outer shell as well as using battery and electrical components which will not leach out and poison the environment when eventually disposed. Legal: It is important for our company to operate within the appropriate legal parameters so that we do not breach any codes of conduct or laws. For TheCoolBox it is important that we carefully research what intellectual property rights are being held so that we do not come into conflict about stealing other people’s intellectual property. We must also follow industry regulation about the safety of batteries as well as proper disposal methods.

Competitor Analysis: Cooler boxes are “synonymous with summer in Australia” and have become such a staple in Australian households that they have become widely known as the brand name itself - Esky. (Oakes 2009). The Australian cooler box market is dominated by Esky, however there are several indirect major competitors in the market such as Coleman and Willow. Our most significant competitor is Esky, a well-known Australian brand which focuses on selling cooler boxes. Esky products are widely available in Australia, with Bunnings being a major supplier of their products. Esky is the main competitor for TheCoolbox, as they provide similar products available from the same retail outlet. They will also pose the greatest threat as they hold the most substantial market share in the domestic market. (Bunnings 2018). Coleman is another competitor in the international market which focuses on outdoor and camping products, including, but not limited to, cooler boxes. Coleman’s products can also be purchased from Bunnings, making them directly competitive with our Coolbox, however their focus is not the same as ours, as they sell a wider range of products (Newell Brands 2018). Another competitor is Willow, which sells a range of products, including cooler boxes, however these are not sold at Bunnings. Willow is also an Australian brand of housewares, however as

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their focus is not exclusively on cooler boxes, and their products are not available from the same retailer, they are not a (Anaconda Unit Trust 2018). Our main direct competitor is the Coolest Cooler, which is a cooler box available for sale online through coolest.com. This product has almost identical features to our TheCoolbox, and consequently will be a major rival for our product. An advantage we have against this competitor is that our product will be sourced more efficiently leading to a lower price than the Coolest Cooler. Our product will be available directly from retail outlets, providing the opportunity for a hands-on customer experience. (Coolest Cooler 2018).

SWOT analysis: Strengths: ● Our product is innovative and unique compared to competitors, especially those available from the same retailer ● Our product meets the needs of our target market with durability and functionality, while going beyond the basic needs of our consumers with the addition of extra features such as speakers and charging ports. ● Our product will be sold at a reputable Australian store known for selling similar products. TheCoolbox will be readily available, making it easy to locate for purchase. Weaknesses: ● Current battery size limits overall holding capacity and weight ● Valuation is based on subjective needs/wants ● The offerings provided may not necessarily be desired by all Opportunities: ● R&D into new battery technology which lasts longer and weighs less ● Differentiation through building customer loyalty & satisfaction Threats: ● Other directly competitive products are available from online stores such as Alibaba.com, for lower prices. ● There are a few major indirect competitors who dominate the domestic market whose products may seem more attractive as they are sold at a lower price, which customers may prefer, despite that they do not offer the same functions as TheCoolbox.

Objectives: Mission Statement Our mission is to bring a high-tech edge to outdoor activities through providing outdoor lovers with a new luxury. This product prides itself on quality, durability and reliability no matter where you are in the world.

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3 Objectives – - Expanding the Product Range - Maximising Customer Service - Increasing the market share by 15% over the next 3 years - Expanding the Product Range With TheCoolBox as the leading product that the company will offer, there is an opportunity to expand the product mix. It is important the company stays streamline and within its field but there are chances to expand into products that for example, vary in size, features and maybe appeal to other needs of adventurous outdoors individuals. TheCoolBox should aim to have at least 3 new products in the market within the next 4 years, with only 2 being released as a minimum. This objective will lead to a large amount of economic growth and extended recognition within the marketplace.

- Increasing the Market Share The goal to increase the market share by 15% within three years is reasonable and specific. This should lead to a greater establishment of the brand within the market as well as improving the product awareness. This increased market share is a goal that will support financial growth of the business as well. - Maximising Customer Service The business must aim to keep, positive and working relationships with its customers. This is achieved through customer service and addressing the respective inquiries they may have. The business should aim to retain over 60% of its customers while simultaneously gaining new ones as well. The object is highly actionable and critically important as high levels of customer service leads to greater customer satisfaction and a positive reputation being built. We are inspired by John Mackey and his respect for the customer, “our most important stakeholder is not our stockholders, it is our customers. We’re in business to serve the needs and desires of our core customer base” (Forbes 2014) All of the above objectives are highly specific, measurable, actionable, reasonable and timetabled, which lays the foundations for long term business success and profitability.

Target Market:

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The primary target market for TheCoolBox is young adults (18-30) and young families (25-40). We have chosen this particular target market as the product was built around the activities that this target market would undertake. We believe it will be of significant value to this segment and market as it provides and satisfies the essential needs of these individuals such as enjoying a cold drink whilst kicking back to some classic rock with impressive features in one convenient, ergonomic and aesthetically pleasing product.

Positioning: The desired target market for TheCoolBox lies within the young adult range (18-30) and the young families range (25-40). Within this range and because of the launching price of the product, we will aim to position our product as an extremely valuable and one with a multitude of uses. Compared to our competitors which consist of, Bluetooth speakers, esky’s and a combination of the two, we often surpass them in different categories, e.g. with the Bluetooth speaker market we also provide a TheCoolBox, bottle opener etc, and vice versa for the esky’s market. Our main competitor is the hybridisation of both Bluetooth speakers and an esky/coolbox. To separate ourselves from our competitors we will position TheCoolBox as a product that surpasses its competition in value, drawn from the fact that if you were to buy all the separate products it would cost you in excess of $100 than to buy our product. In conjunction with the sheer value our product offers we also intend to position TheCoolBox as a sturdy/reliable product that is also incredibly functional, this is achieved through the products external features, from the heavy duty wheels and handle and the water resistant compartment to present the sturdiness of the product, as well as the charging ports, phones stands, bottle opener, aux port and an LED clock display to provide the functional aspect of the product. Thus it is seen that TheCoolBox shall be positioned as a product of value, sturdiness and functionality, in comparison to its competitors.

Marketing Mix Strategy: Product and Price: A variety of product strategies have been implemented to ensure TheCoolBox becomes a part of a typical Australian family summer. TheCoolBox’s “hard” and compact design reflects its durability to withstand Australian summers. Its water resistant exterior speakers are well situated and designed to stand out amongst competitive goods that do not offer these extensions. TheCoolBox packaging will also ensure that its durable design is promoted through hard, block font. This choice of font for the packaging will reflect its tough design and ability to last outdoors. The aim is for outdoor-loving Australian families to place their trust in a quality product that is essential for all events throughout summer. TheCoolBox offers versatility as a product which is an esky, speaker and charger, appealing to the market as a “multiple use” investment. Timerestricted families would prefer to invest into a single product that caters to more of their leisurely needs rather than multiple products to do the same job.

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TheCoolbox will enter the market with a price points strategy, which represents its quality and value. An initial price of $299.95 will ensure families are investing into a valuable good, one that is not expected to break or become faulty within months. Australian families will buy into this, ensuring that their TheCoolbox is truly an investment for many summers. The high pricing means families will have no issue buying into a product that solves various needs rather than a singular standard esky. A mixture of product design, differentiation and price points strategies will ensure TheCoolbox is perceived to be an investment for the outdoor scene with Australian families. A compact and versatile design will ensure TheCoolbox appeals to the target market that seek a product that withstands Australian outdoor events.

Promotion and Place: Promotion It is recommended that the team promoting TheCoolbox, utilises promotion strategy directly through retail and via online communication to reach a wider audience base. The team will use fun and clever ideas to appeal to their audience’s (young adults/families) love for the summer outdoors. TheCoolbox is not a new product to the Australian market but a variation and improvement on what is seen as an essential ‘outdoor Aussie summer’ product. Thus, it is a great opportunity to highlight the unique features in developing a greater brand image for Bunnings. Some promotional activities that are likely to be used especially within the advertising campaign include: ● Catalogue and website advertising with Bunnings Warehouse ● Sales promotion across relevant stores and businesses ● Rental option for those who wish to try the product (fees for damages apply) ● Collaborative work with Bunnings Warehouse’s social media pages (Instagram, Facebook, Twitter etc.) Working with a brand like Bunnings Warehouse and collaborating product exposure on their social media will allow the team to explore and create potential new markets due to given the fact that 60% of the Australian population is an active user of Facebook and, further, 50% of this population log on at least once a day (Cowling 2018). To draw customers even closer to the product, it would be wise that we showcase a video or story of behind-the-scenes footage of how the product is brought to life and pulled together. This way, customers become more engaged with the product where we are able to “take them on a journey so they are more tied to what [we’re] creating” (Evan Carmichael, 1:46) rather than simply demanding them to buy our product and not developing any long-term customer relationships. Place Bunnings Warehouse will channel TheCoolbox online and directly through retail to allow more purchasing channels for customers. An intensive distribution network will ensure greater coverage of the product within the market to promote greater sales. With 167 Bunnings Warehouse stores in Australia opting to sell TheCoolbox, it is a logical choice considering it is a 6

brand that has saturated the retail hardware market, owning up to approximately 50% of the market share of the retail hardware industry over other retailers like Home Timber & Hardware and Mitre 10 (Darby 2016). The team will adopt a producer to retailer to consumer distribution channel seeing as a wholesaler would only be necessary if they were to sell across multiple retail outlets. This channel should be able to make transactions as efficient, simple and cheap as possible, making products available to consumers at the time and place they want to purchase them. In addition, warehousing should be used so that “unexpected demands can be met” where road transportation will be used to provide Bunnings’ warehouses with stock considering costs vary in range, it is more reliable than rail or sea and is fast and efficient (Elliot et al 2018).

Budget and Financing: As part of our financing strategy, we reached out to the Kickstarter community with a goal of raising $50000 to help cover our initial operating costs. By the end of the period we raised over $55000, showing an overwhelming response from the community. The funds will be distributed across several business functions but our main goal is to increase our presence in different marketing channels in terms of the stage that we currently see ourselves. This journey starts with our customers, and our top priority at the moment is reaching out to them. Down below is an estimated income statement in terms of: 1) Projected sales revenue based off market surveys conducted 2) The actual production costs identified.

PROJECTED INCOME STATEMENT FOR OUR FIRST YEAR IN BUSINESS Fixed Costs

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Influencer - and celebrity endorsements

505,000

Radio-commercial

151,110

TV-commercial

283,900

Search Engine Optimization

97,021

Social Media and Sports Events Banners

200,000

Sports Events Banners

255,000

Production Costs

867,000

Product Research and Development

250,000

Total Costs

2,609,031

Projected Sales Revenue Estimated Volume of Sold Devices

15000 devices

Estimated Unit Price

$299

Estimated Sales Revenue

4,485,000

Estimated Income Before Tax

1,875,969

Income Tax Expense (EBIT*0.3)

562,790.70

Net Income

1,313,178.3

Implementation & Evaluation The team at CoolboxCo. will have a strong presence online for the sale of the entertainment cooler as well as ongoing communication with the customers. There will be daily maintenance of the social media pages (both TheCoolbox’s and the collaborative online work with Bunnings Warehouse). Furthermore, we will conduct minor quarterly evaluations comparing our expected and actual KPI’s. These evaluation will contribute to an annual review of the business and future directions and decisions.

Conclusion & Recommendations Through recognising projected totals of revenue, TheCoolbox is set up for success within the Australian market featuring across Bunnings Warehouse retail outlets across the nation. This will allow the team more time and finances to consider better and more efficient ways in production and improving features of the given product. Moreover, this might include an expansion in the product line or a new product mix. The goals and objectives of the team are specific and most certainly achievable. In achieving these targeted objectives, the team can look to multiply their market and operations by expanding into international markets, targeting more relevant customers. However, with a forever changing external environment (including the 8

economic and political conditions of the nation), it is imperative that the team at CoolboxCo. ensure complete maintenance of this environment to ensure long-term sustainability and success for the business.

References: Anaconda Unit Trust 2018,Willow, Anaconda Unit Trust, viewed 21st September 2018,

Bunnings 2018, Esky, Bunnings Warehouse, viewed 21st September 2018,

Coolest Cooler 2018, Finally a Cooler That’s Actually Cool: Meet the Classic Coolest Cooler, Coolest Cooler, viewed 25th September 2018 Cowling, D. 2018, ‘Social Media Statistics Australia’, Social Media News, 1 February, viewed 26 September 2018,

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Darby, A. 2016, ‘Ret...