Marketing Fundamentals New Product in the Australian Market

Question: Discuss about theMarketing Fundamentals for New Product in the Australian Market. Answer: Introduction The report deals with the launch of a new product in the Australian market. The new product is the GRO Luggage. The new product is quite suitable to make an entry in the market of Australia. The senior management has decided the marketing strategy, marketing objectives and the actions that the company needs to take to launch the product successfully in the market of Australia. The report highlights all these aspects, which the senior management of the company will take care of. Marketing Objectives The senior management of the company launching the new product GRO Luggage is well aware of the fact that the launch and promotional procedure of the new product in the market would be an expensive affair. The revenue that the new product would generate in the first few months would not be at par with the launching expenses of the new product. Hence, the company adopts certain marketing objectives that will reflect what the company wants and expects after the launch of the new product (Flammer, 2015). The following are some of the marketing objectives, which the company has in their mind before launching the new product. The management should make the product GRO Luggage available to important people and company who affect the market. The company should also try to push their products to influential bloggers who can use and promote their product online. The company should encourage these people to use their products and write a review about the quality of the product. The company should make the new product available to the industry analysts also during the early phases of the product launch. The management of the company should hold meetings with these people before launching their product as this would boost the promotion of the new product. The company can involve other marketing and channel partners who can boost the success of the launch of the new product. As more people will get to use the new product they would talk more about the product. This would result in the financial gain of the company from the product (Ross, 2013). These marketing objectives, which the company has during the launch of the new product, are very much achievable as well as measurable and specific. If the company can follow these objectives, religiously they will have a successful launch of their product into the market of Australia. Market Segmentation, Target Customers and Positioning of the Product Some of the most important things, which the company should keep in their minds while launching the new product GRO Luggage into the markets of Australia, include the segmentation of the market. Then the company should identify their target customers in the market and should be able to position their new product in the minds of the target customers of the segmented market. If the company can successfully follow the above-mentioned steps after the launch of the new product, the product may generate huge revenue in the market (Cross, et al., 2015). In today's world, most of the companies have customer-oriented objectives. Hence, the companies tend to segment the market into manageable parts keeping the needs of the customers in mind. This process is termed as market segmentation (Pearce Doh, 2012). There are different types of customers in the market. The company intends to reach all the customers of different tastes and preferences. Hence, they break the market into small segments comprising of certain common characteristic. Marketing can be converted to a science with the help of segmentation of the market. Segmentation of the market is done keeping in mind the lifestyle of the customers, age of the customers are taken on the basis of some other factors such as their daily need of the product. Some of the benefits of the segmentation of the market, which the company will get, are the effective use of resources. The product will be able to create value in the target market of the company due to segmentation. The product will gain focus in the market due to segmentation (Qu, et al., 2015). The next step that the company should follow is to identify the target customers for the product. The senior management of the company needs to have a clear and concise idea of their target customers before introducing the new product into the markets of Australia. If the company have a clear idea of their target customer, then they will be able to choose the proper and correct marketing mix. The company can advertise and promote their product in the best possible way. The company can put the product in the most appropriate form to their target customer. The main target customers of the company include people of different age groups such as youths and kids and different professions such as homemakers, office goers, etc (Wedel Kamakura, 2012). The next step, which the company should follow for the successful launch of the new product, includes the positioning of the product in the minds of the target customers. The positioning of the product in the proper segments of the market is a crucial step that affects the purchase and sale of the product. By positioning the new product properly, the management of the company gets a chance to influence the perception that the customers have of the product. Proper positioning of the product includes differentiating the product from the products of rival firms, articulate and management of important product characteristics and address vital buying criteria of customers (Dolnicar, et al., 2013). Product and Pricing Strategy Introducing the new product GRO Luggage in the markets of Australia is a significant achievement of the company. Appropriate product and pricing strategies of the product launched would help to improve the revenue generated by the product. Proper product strategies can help and direct the product managers of the company to properly communicate the value of the products to the important stakeholders of the company. Knowing the value of the product the stakeholders of the company get the idea whether the product would meet the objectives of the business. The product strategy can be defined as the foundation and basis of the lifecycle of the product and the execution of further development plan of the product (Battistini, et al., 2013). The product strategy mainly consists of the three components: Vision, Goals, Initiatives The company should have a proper vision of who the target customers are, and what are their needs. The company should have proper planning for delivering unique products to its customers. The vision also includes a competitive analysis of the market and a plan for the go-to-market. The goals of the company can be short-term as well as long-term goals. Few of such goals of the company includes search new markets for their product in the domestic territory or outside the country or to increase the revenue by at least 10% to 20% in a short span of time say six months. The company needs to take the initiative to achieve the above mentioned goals. Some of the efforts that the company can make to realize their goals are to improve the quality of the product or to produce more units of the product in the market in the near future say within a span of 6 months (Stanford, 2014). Another important aspect, which the management of the company needs to keep in their minds while launching their product in the market of Australia, is the price of the product. The price of the product affects the profit, which the company would earn from the sale of that product to its target customers (Bulmu, et al., 2014). If the company sets a very low price for the product the revenue that the product will generate will be very low. If the company sets the price of the product at a very high level, then it will reduce the sale of the product in the market of Australia. Hence, the company should set the price of the product keeping in mind the demand and supply of the product. The company should also keep track of the segments of the market for which they are producing and the demands of their target customers. All these important factors would affect the pricing strategy of the company to launch the new product in the markets of Australia (Chernenko Sunderam, 2012). Placement and Promotional Strategy The company can earn huge profit from the new product, which it intends to launch in the market of Australia only if it pays serious attention to the proper distribution and promotional strategies of the product. Nowadays products are easily available to the hands of the customers both in stores as well as on the internet. The company should produce the units of the product and should distribute and channelize them to the stores selling the product throughout the country. From these stores, the target customers of the company can easily access the product in their desired quantity from these stores. Another outlet for the sale of the product is the online stores and websites. The target customers can easily avail the product sitting in their homes or their office. To meet the demands of the target customer, the company should provide a high level of customer service (Meyer Shankar, 2016). The quality of the product, which the company produces, should be very high and way ahead of th e products that the rival firms produce. There should not be a shortage of supply of the product on the part of the company, as this would have a negative impact on the customer satisfaction level. The company should provide the accessibility of the product to its customers in the most cost-effective manner. This would help increase the profit earned by the company if the cost of production is low. Another important placement strategy, which the company should adopt, includes the proper storage of the product so that they can reach the hands of the customers at the proper time and in good condition. The company should invest a part of its capital in the proper storage and transportation of the products (Wu, 2012). The next important aspect, which the management should take care after the launch of the product in the market, is a good and cost-efficient strategy for promoting the product. Promotion of new products is necessary to create loyalty of the brand, to increase the sale of the product and to position the product in the minds and hands of the customers. The company can adopt some promotional strategies that include online marketing and advertising the product, personal selling, and sponsorship. Following these promotional strategies the company can reach its products to the hands of the broader public and to its target customers. The company should also keep in mind the cost-effectiveness of these strategies. The cost of promotion of the product should not be very high compared to the production cost (Hollensen, 2015). Action Programs The company should plan the course of actions that it would follow the launch of the product GRO Luggage in the market of Australia. A list of action programs is very important for the smooth, time saving and cost effective production levels of the company. Action programs may have goals for the short, long or medium duration (Becerra, et al., 2013). In this case, the company should set goals for the next six months after the launch of the product. First, the company should allocate tasks to different people involved in the production process. Secondly, they should specify the time duration for the completion of the process. Thirdly the company should estimate the cost for completion of the specific activities involved in the production process such as pricing strategies, distribution, and promotion of the product, etc. Finally, the management department of the company should see to it that the action programs are strictly followed. Conclusion The report clearly describes all the important aspects that the company should take care of before and after the launch of the new product GRO Luggage in the market of Australia. The report highlights the marketing objectives and market segmentation adopted by the company. The report also describes the product and pricing strategies of the company, along with the distributions and promotions. The report also throws light on the short term action plans adopted by the company after the launch of the product. References: Battistini, N., Pagano, M., Simonelli, S. (2013).Systemic risk and home bias in the euro area(No. 494). Directorate General Economic and Financial Affairs (DG ECFIN), European Commission. Becerra, M., Santal, J., Silva, R. (2013). Being better vs. being different: Differentiation, competition, and pricing strategies in the Spanish hotel industry.Tourism Management,34, 71-79. Bulmu, S. C., Zhu, S. X., Teunter, R. H. (2014). Optimal core acquisition and pricing strategies for hybrid manufacturing and remanufacturing systems.International Journal of Production Research,52(22), 6627-6641. Chernenko, S., Sunderam, A. (2012). The real consequences of market segmentation.Review of Financial Studies,25(7), 2041-2069. Cross, J. C., Belich, T. J., Rudelius, W. (2015). How marketing managers use market segmentation: an exploratory study. InProceedings of the 1990 Academy of Marketing Science (AMS) Annual Conference(pp. 531-536). Springer International Publishing. Dolnicar, S., Grn, B., Leisch, F., Schmidt, K. (2013). Required sample sizes for data-driven market segmentation analyses in tourism.Journal of Travel Research, 0047287513496475. Flammer, C. (2015). Does product market competition foster corporate social responsibility? Evidence from trade liberalization.Strategic Management Journal,36(10), 1469-1485. Hollensen, S. (2015).Marketing management: A relationship approach. Pearson Education. Meyer, J., Shankar, V. (2016). Pricing Strategies for Hybrid Bundles: Analytical Model and Insights.Journal of Retailing. Pearce, J. A., Doh, J. P. (2012). The high impact of collaborative social initiatives.Sloan Management Review,46(2). Qu, W., Ee, M. S., Liu, L., Wise, V., Carey, P. (2015). Corporate governance and quality of forward-looking information: Evidence from the Chinese stock market.Asian Review of Accounting,23(1), 39-67. Ross, D. F. (2013).Competing through supply chain management: creating market-winning strategies through supply chain partnerships. Springer Science Business Media. Stanford, D. J. (2014). Reducing visitor car use in a protected area: a market segmentation approach to achieving behaviour change.Journal of Sustainable Tourism,22(4), 666-683. Wedel, M., Kamakura, W. A. (2012).Market segmentation: Conceptual and methodological foundations(Vol. 8). Springer Science Business Media. Wu, C. H. (2012). Product-design and pricing strategies with remanufacturing.European Journal of Operational Research,222(2), 204-215.