Term 2, 2018

MKT60010 Marketing Management

Assignment 2: Task description, Template + Rubric

Topics covered: Market Analysis, Consumer Segmentation and Strategy
Recommendations

Marks: 30%

Word limit: 4,000 (+/- 10%). If you find that your draft is over the word limit then move extra material
into appendices. Then, in the body of the Assignment you can briefly summarize the key points of that
extra material and refer the reader to the appendix concerned for further details.

Remember: Charts, Pictures, Tables and Diagrams are not included Word Count.

Assessment Overview

Working in teams of four, decide on a specialty product (or service) to introduce to the marketplace.
Teams are to develop a marketing plan for this specialty product ( or service). The market analysis
should include specific details described in the section below.

Teams will present their marketing plan in two forms:

 A 30-minute presentation
 A 4000-word report

Specific Requirements

The marketing plan should be based on the marketing concepts covered in this unit. The marketing
plan should comprise of two main parts.

Part 1 Market analysis

Part 1 is an analysis of the viability of your proposed product or service concept. As such, a
market analysis should be conducted.

Your group assignment should not be based on the same company or product that you have done in
the first assignment (case study).

Part 2 Strategy recommendations

Based on the market analysis, Part 2 requires you to provide a series of strategy recommendations,
which addresses:

 The segment(s) of the market you will be targeting

 How the new consumer product (i.e., good or service) should be positioned;
 How the new consumer product (i.e., good or service) should be branded;
 Details about the specialty product (or service) that is being introduced to the market;
 The pricing strategy you intend to pursue, and the rationale behind it;
 The distribution strategy you intend to pursue, and the rationale behind it;
 How the specialty product (or service) should be promoted.

You may use photos/images to assist you in this task. You may also develop your own materials
to bring your ideas to life.

Each team is to nominate a leader who is responsible for creating and maintaining a
meeting/communication log via blackboard page. A meeting/communication log is a summary record
of all group meetings (e.g., date, time and duration) and communication (i.e., emails and other forms
of messages). It should include: a brief description of the key items discussed in each meeting; the
key tasks and responsibilities of each team member; and other outcomes (e.g., mini due dates, etc.).
This meeting/communication log is to be included in the Appendix of your written report,
submitted online (no hardcopy required). In addition, each team member is to individually fill out a
peer-review evaluation form online (no hardcopies required). The peer-review evaluation form will
be provided to students via the unit blackboard page and to be completed and submitted online,
a day before the final presentation. The peer-review evaluation form, along with the
meeting/communication log will serve to demonstrate the relative contribution of each team member
and as evidence in the case of disputes/complains arising from unequal contribution of (a) specific
team member(s).

1. Executive Summary (approx. 200 words)

a. the report’s major purpose,

b. the analytical processes used,
c. the findings, and
d. Your recommendations.

2. Introduction (approx. 200 words)

a. The authorization and purpose of the report tells the reader who the purpose of the report.
b. The scope of the report summarizes what the report covers, how information will be
presented, where the information comes from and how it was gathered.

Part 1: Market Analysis (approx. 1,500 words)

In this section you will be considering the broad market analysis in which you will analyses the factors
which might influence the company/Brand and Sub-Brand.

The Micro-environment (SIP-CCC; these players are often called “stakeholders.”)

3. What industry are we in? (approx. 500 words)

 Identify the industry within which the product competes.

 Include an illustration of how the product fits within the industry; for example, include a tree diagram.

Before any analysis, some sort of scope should be provided at the beginning of any business report. A
tree diagram is useful because: -
 A tree-diagram defines the scope and product-category structure of the “industry” of concern.
 Depicts aspects of an industry that are close together
 Showing which parts belong together
 Displaying both broad and narrow options
 Identifying the scope for the current report.
 The following could be used by a company such as Coca-Cola;
 Beverages

Alcoholic Non-Alcoholic

Hot Cold

Juice Milks Soft drink Energy Water

Other
Colas Lemonade
Flavours

This diagram shows that the “industry” could be defined as:

 Beverages (the broadest definition)
 Non-Alcoholic beverages
 Cold non-alcoholic beverages. At this stage Coca-Cola defines their industry here. However, over
time companies can change their industry definition: -
o In the past Coca-Cola has defined their industry as Soft drinks, and at an earlier time as simply
“Cola”.
o For the future Coca Cola has indicated that they intend widening their industry definition; in
Australia they own Grinder’s Coffee, have introduced “Barista Brothers” cold coffee-
flavoured milk drink and announced that they intend moving into the beer market.

4. Competitors Analysis (“C” for Competitors in SIP-CCC) (approx. 250 words)

Identify two key competitors from the Strategic Group and justify your selection by providing the
following information:
5. Analysis of other Micro-Environment players (approx. 250 words) (“S, I, P and C for
Company” in SIP-CCC).

Identify one other key player of importance to your product. This will be from amongst Suppliers,
Intermediaries, the Publics (such as government body or the media) or internal Company factors. You will;
 Describe them and outline the role they play in relation to your product.
 Describe how they work with your company.
 Identify the key risks if the relationship between your company and this player broke down.
 Identify a way this player could be leveraged to provide your company with an additional
opportunity.

 Suppliers are an important link in the organisation’s overall customer ‘value delivery system’.
Marketing managers must watch for supply availability, supply shortages or delays, labour strikes
and rising price trends of supplies. All of these events can damage your customers’ satisfaction
in the long run. Rising supply costs may force price increases that can harm the organisation’s sales
volume.
 Marketing Intermediaries help an organisation to promote, sell and distribute its goods to final
buyers. They include:
o Resellers who help the organisation find customers or make sales to them
o Physical Distribution Firms who help the organisation carry stock and move goods from
their points of origin to their destinations.
o Retailers: In Australia, ownership and control of retailing is highly concentrated: Coles-
Myer, Safeway-Woolworths, Bunning’s, Mitre-10, the Pharmacy groups, Harvey Norman
and Retravision control a very high proportion of total sales in most categories.
o Therefore, it is essential that your brand’s key customers, and your Key Account
Managers who deal with them are included in the Environment Audit. Examples where
failure to manage these relationships has led to problems include Wattyl Paints (with
Bunning’s).
 Marketing Services Agencies are the facilitating agencies — marketing research companies,
advertising agencies, media firms, export consulting agencies and marketing consulting firms that
help the organisation to target and promote its products to the right markets.
o Market Research agency staff can help your Audit: Careful analysis of trends yields
excellent information. In-Depth discussions can often yield useful insights, especially in
unmet needs or dissatisfactions (which may not have been emphasised in the formal
reporting to the client).
o Advertising Agency and Market Research staff can also work with you to analyse data, and
to analyse the reason for past failures and successes – your brand’s and the competitors’.
 Financial Intermediaries include banks, credit organisations, insurance organisations and other
businesses that help to finance transactions and/or insure against the risks associated with the
buying and selling of goods. Financial Intermediaries: may be able to provide extra services to
your customers: especially if they can provide finance and insurance packages to support your sales
of high-priced items.
 Publics; The organisation’s marketing environment also includes various publics. A public is any
group that has an actual or potential interest in (or impact upon) an organisation’s ability to
achieve its objectives. Every organisation is involved with:-
o Financial publics
o Media publics
o Government publics
o Citizen action publics
o Local publics
o General publics
o Internal publics
 The Company itself; In designing marketing plans, marketing management takes other groups
within the organisation into account such as; top management, finance, research and development
(R&D), purchasing, manufacturing and accounting.

6. The Macro-environment; Other environmental factors influencing the company (approx. 250
words*)

This section will include a table as presented in Lecture 3 Chapter 4 – example on next page. *Tables
are not included in word count so 250 words of additional text should be enough to cover what is needed
in this section.

DENT-PC; provide an analysis of the three* macro-environment factors which you consider to be
the most important ones impacting upon your Brand and Sub-Brand. You need to cover the
following:
 Describe any recent trends in these three areas which may impact your company/Brand and Sub-
Brand.
 Identify any risks if these factors were to change.
 Identify a way these factors could be leveraged to provide your company/ Brand
and Sub-Brand with an additional opportunity.
 Include a Table of the type presented in the example on the next page.
 *” three” means three out of D, E, N, T, P, and C. WITHIN each of these three
you might mention several trends; for example, within “E” for Economic there
might be several relevant factors; such as growing employment = more potential
customers and rising discretionary income = ability to spend more on your
product category and/or spend more on more expensive alternatives within your
category.

Macro environmental factors influencing the company:
- D Demographic environment
- E Economic environment
- N Natural environment
- T Technological environment
- P Political and legal environment
- C Cultural and social environment

- What do trends in external marketing environment mean for our brand/company and therefore for
our strategy?
- Explain that the following table is about to present an analysis of the environment for the relevant
INDUSTRY (just defined as above).
- SUMMARISE the KEY environmental factors that your product ought to consider or respond to as
a priority in the body of the report (i.e., after the table).
Example; the industry used in the example below is the fast-food take-away industry.

Trend Direction Explanation Strategic Implications

Demographic Arrow up Why is this trend happening? What does this mean for our
or down current strategy? How might
we change our strategies in
order to anticipate this
Trend?

- Aging population ↑  A greater proportion of people  Change target market to

in the population are over 60 aging population
 Shrinking traditional  Develop “product” for
target market older people
 Possible threat to sales  Broaden target market to
children and teens
- Time poor ↑  People spend longer hours at  Drive-thru option
work  Quick complete meals
 Generally, people have  Home delivery
less leisure time Brown
 They have less time to
spend in the kitchen
 People seek quick meal
solutions
 Possible opportunity to
increase sales
Cultural Is there a shift in culture? What does this mean for our
current strategy? Do we need
to change our strategies?
What changes do we need to
do?

- health cons. ↑  People are becoming more  Re-position the brand

concerned about their health.  Offer greater nutrition in
foods.
Part 2 Consumer segmentation (approx. 500 words)

7. Refer to Lecture 5 and 6: Chapter 6 regarding Segmentation, Targeting and Positioning

In this section, you will present your consumer segmentation analysis - how the consumer base could
be split into smaller segments for the purposes of marketing. This will NOT be what the company is
doing now – it will be YOUR consumer segmentation analysis.

In your report, you will provide the following information:

. You will select TWO segmentation base and at least three profile variables for each segmentation
base that you believe will be important things to know about the current and potential consumers in
this product category.

Explain why you’ve chosen these bases and profile variables. Why are they useful for this particular
product category?

You can include a Segmentation table containing at least three segments and with at least three profiling
elements. For example, at least;

Segments Profiling element 1 Profiling element 2 Profiling element 3

Segment 1
Segment 2
Segment 3

This is an example for iPhone 6 using the Roy Morgan Values Segments* system (adapted from
http://www.roymorgan.com/products/values-segments/values-segments.cfm as at 6/10/15)

Segments Profiling element 1 Profiling element 2 Profiling element

Social media usage Purchasing Power 3
Need to be seen as
on trend
Segment 1 Very high – like sharing Generally medium Very high
Socially their views and opinions
Aware
Segment 2 Very high – want people Medium – but possibly in debt. Very high
Something to see them as winners. Because they want to be seen as
Better winners their consumer decisions
are strongly influenced by this
desire. Hence always seeking
something bigger and better.
Segment 3 Medium – they are Generally high-income earners, Medium – do not
Visible leaders in their field but they don’t spend money for the need to show off.
Achievement confident enough not to sake of it and like to be sure they’re
need to show off. getting the best deal
8. Assess the attractiveness of each consumer segment (approx. 500 words)

You will assess the attractiveness of each consumer segment for your product “Attractiveness” refers to
the likelihood that a consumer segment will provide profitable sales for your product. Therefore, you
will measure each of the segments on your Segmentation Table;
- You will be measuring “How attractive is the segment as a market for the product?” – This is
where you apply the Three Criteria – see below.
- NOT “How attractive (as a product to buy) is the product from the point-of-view of the
consumers in this segment?”

Attractiveness is based upon the three factors;

1. Size and growth - a large, fast-growing, low-margin segment might be a good match to a strong
brand with abundant resources which can afford to target a low margin segment. A small brand
with limited resources and the need to make profits in the short term on the other hand would be
better-matched with a smaller high-margin segment.
2. Structural attractiveness - see the explanation on the slide below and discuss this with relevance
to your Brand and the segment.
3. The degree to which the segment matches the product’s resources and objectives. For
example, Apple is a very strong brand with lots of resources and it has very high objectives for
the sales volume and growth. Therefore, big segments containing consumers who are attracted to
strong brands would be a good match with the Apple brand. Additionally, all consumer
electronics brands match well with consumers who are heavy users of social media, because these
users will talk about and therefore provide word-of-mouth publicity about the brands they are
using.

You can include a Table like this;

“Market attractiveness” criteria
1. Size and growth 2. Structural 3. Company Objectives
Your Segments attractiveness and Resources = The
below here:- degree to which the segment
matches the Brand and Sub-
Brand’s resources &
objectives.
Segment 1 Show data (size & growth Gather and present data Gather and present data
from your trends) for each Segment which answers these which describes the Brand
Segmentation about the numbers of questions; (1) Can we and Sub-Brand’s resources
Table. consumers and either the $ communicate with the (refer for example to their
amount they spend on consumers in this segment Sales $, Profits, brand
products in the category and deliver the product to strengths and their stated
(and on your brand (if the consumers in this Mission, Vision and
avail). Also cite their segment? For example; Can Objectives.) Then you draw
income. Cite trends in we get shelf space in Coles conclusions about the
Cultural and Social areas and Woolworths? (2) Can degree to which each
(likely to have been we communicate with segment matches these
collected for the DENT people who want Russian resources and objectives.
PC) and suggest likely language movie DVDs? (3)
impact upon the Does this segment already
consumers in this segment. have strong, entrenched
competitors?
Then you draw conclusions.
Segment 2 Data as above for Segment Data as above for Segment 2 Data as above for Segment 2
2
Segment 3 Data as above for Segment Data as above for Segment 3 Data as above for Segment 3
3
9. Recommendations (1000 words)
#
You will include here a detail discussions of your recommended actions. In this part your
recommendations will be about your suggested strategies from your analysis of the product, pricing,
distribution and promotion strategies together with the rationale behind it.

Include a Product Comparison Table of the type shown below:-

P Our Brand and Sub- Strategic Group Strategic Group
Brand Competitor 1 Competitor 2
Product
Place
Price
Promotion
Data was current as of (insert date).
Sources; (insert sources).

(Hint; you should expect to see that the Marketing Mix 4Ps for the competitors are very similar to those
for your Brand and Sub-Brand. This will demonstrate that these competitors are indeed in your
Strategic Group, because they will have the same or similar strategies to our Brand and Sub-Brand.)

10. Conclusion (approx. 200 words)

a. What do the findings mean?

b. Was the purpose of the report fulfilled?
c. Have the specified sources of information been used?
d. Have the areas stated been adequately tackled?

Referencing – You will be penalized (marks reduced) if you do not provide references. You need to
provide both citations (in-text references) and List of References.
For your Group as a whole, you should aim to reference a MINIMUM* of at least 10 Academic
sources and at least 10 Business sources. These references will be about your industry, product
category, your brand and sub brand and the competitors, the marketing environment and marketing
research including recent trends and consumer behavior. *Cite more than 30 to get top marks for
Referencing – see Rubric.
Rubric for Written Report
CRITERIA WEAK (N) SATISFACTORY (P) GOOD (C-D) EXCELLENT (HD)
- Vision and direction for the - Demonstrates a vision and - Demonstrates clear vision - Demonstrates a very clear vision
Quality of business and its product(s) is direction for the business and direction for the and direction for the business
Analysis unclear. Little evidence that and its product(s) that business and its product(s) and its product(s) that
the market in which the considers the market in that considers the market in thoroughly considers the market
(20 marks) business competes in, its which the business which the business in which the business competes
target segment(s) and competes in, its target competes in, its target in, its target segment(s) and
competitors were segment(s) and competitors. segment(s) and competitors. competitors.
considered. - Demonstrates ability to - Demonstrates good ability to - Demonstrates very good ability
- The business’ positioning, describe the business’ clearly describe the business’ to thoroughly and clearly
suggestions for future positioning, suggestions for positioning, suggestions for describe the business’
innovations and related future innovations and future innovations and positioning, suggestions for
marketing management related marketing related marketing future innovations and related
strategies not described management strategies. management strategies. marketing management
- Limited application and - Satisfactory application and - Good application and strategies.
integration of theoretical integration of theoretical integration of theoretical - Excellent application and
concepts to develop concepts to develop concepts to develop integration of theoretical
marketing strategy marketing strategy marketing strategy concepts to develop marketing
- Unable to demonstrate - Demonstrates understanding - Demonstrates a good level of strategy
understanding of learning of learning material. understanding of learning - Demonstrates a high level of
material - Reasonable documentation material. understanding of learning
- Limited documentation of of evidence to support - Good documentation of material.
evidence to support analysis. analysis. evidence to support analysis. - Excellent documentation of
evidence to support
recommended strategy.

- Recommendations contain - Recommendations contain - Recommendations are - Recommendations are

Quality of many internal occasional lapses in logic generally free from internal completely free from internal
Recommenda- inconsistencies - Recommendations not inconsistencies inconsistencies
- Recommendations are always linked to analysis - Recommendations flow - Recommendations flow very
tions, unrelated to analysis - Some elements of the logically from analysis logically from analysis
Logic and - Recommended marketing recommended marketing - Most elements of the - All elements of recommended
Practicality strategy does not provide strategy are creative recommended marketing marketing strategy are creative
(15 marks) the client with new ideas - Implementation of strategy are creative and brings the business to life
- Unclear as to how recommendations not - Implementation of Implementation of
recommendations can be always realistic given recommendations is realistic recommendations is very
implemented in practice. managerial skills and given managerial skills and realistic given managerial skills
organizational resources. organizational resources. and organizational resources.

Use of - Injudicious and - Somewhat judicious and - Judicious and appropriate - Very judicious and appropriate
Literature inappropriate selection of appropriate selection of selection of high quality selection of high quality
academic and practitioner academic and practitioner academic and practitioner academic and practitioner
(10 marks)
resources to support resources to support resources to support resources to support background
background research and background research and background research and research and key points
key points key points key points - 15+ references
- 0-3 references - 3-10 references - 10-15 references - Information from a range of
- Information from a range of - Information from a range of - Information from a range of academic and practitioner
academic and practitioner academic and practitioner academic and practitioner resources very well consolidated
resources not consolidated resources consolidated and resources well consolidated and synthesized.
and synthesized. synthesized. and synthesized.

Presentation - Many key parts of the report - Most key parts of the report - All key parts of the report - All key parts of the report are
of written are missing. are present. are present. present.
report - The report is inappropriately - The structure of the report - The structure of the report - The structure of the report
structured and does not facilitates the seamless flow - facilitates the seamless flow highly facilitates the seamless
(5 marks) facilitate the seamless flow of ideas. of ideas flow of ideas
of ideas. - Careful editing, spelling, and - Careful editing, spelling, and - Flawless editing, spelling, and
- Careful editing, spelling, and proof reading for proof reading for proof reading for grammatical,
proof reading for grammatical, typographical grammatical, typographical typographical errors, references,
grammatical, typographical errors, references, etc. errors, references, etc. are etc.
errors, references, etc. not somewhat evident. evident. - Very high levels of consistency
evident. - Occasional lapses in - Relatively high levels of throughout the report
- Inconsistency throughout consistency throughout the consistency throughout the - Report strongly demonstrates
the report report report high levels of team work
- Indications of low levels of - Indications of moderate - Indications of relatively high between members.
team work between levels of team work between levels of team work between
members. members. members.