Strategic Marketing Assessment 3 Presentation

Introduction

Positioning decision for The Odyssey Hip Pack

• Original positioning: 36-45, Male, traveler, interested in minimal lifestyle
• New positioning: 26-35, male, traveler, interested in minimal lifestyle, perfect for secure travel (Lahtinen et al., 2020).
• Results have shown a lack of interest in purchase, relevance and uniqueness
• With customer rating 3.2 certain features did not resonate with customers – more pockets are expected
• Distribution channel seemed an obstacle in hitting the pricing

Speaker Note

There has been shift in the positioning of the product The Odyssey Hip Pack where the initial target customer segment of male between the ages of 36 to 45 has been replaced 26 to 35 with more focus towards ensuring a secure travel. However it has been reflected that the total revenue has been close to the target revenue. It just required the intervention of the right distribution channel to streamline the process effectively. There has been an increase in the profit percentage by 19 as compared to last year.

Target customer segment

• Calculating the CLV score it appears that messenger bags and luggage performs better
• The price selection has been $30.00
• Suggestive of the need to increase the pricing (Thabit & Raewf, 2018)
• The total profit percentage has been 42 as opposed to the target of 55.
• The target profit percentage would be 65.

Speaker Notes

It can be reflected by comparing the CLV and CAC score of the selected segments i.e the messenger bags, duffle bags and luggage, the luggage and messenger bags have seemed to fare better compared to duffle bags. The other segments which made negligible or no progress as such are backpacks, sport duffle bags and others.

It is thereby noted that considering the profit margin and competitive pricing in the market, it is required of the brand to increase their price so as to reach the target profit margin of 65%.

Marketing strategies

• Considering the fact that the backpacks have not been doing well Soft- Ts have been launched
• 50/50 blend organic recycled cotton and eco-friendly options for top
• Following the ABLE framework – it targets right customer demographic, communicates the benefits of the product, logo being launched and multiple platforms being used (Karim et al., 2021)
• A budget of $64k resulted in an effective reach of 34.83%
• The channels used include streaming radio, social media, streaming TV and digital

Speaker Note

Soft Ts comes as an alternative launch to the existing segment of travel bags. This product has been rightly positioned considering the brand image and the values of the product communicated clearly and directly to the clients. With a budget of 64k spent on advertising we have been able to execute 34% reach. $60.00 being the price we expect to achieve a target revenue of $55,000.00.

Asset evaluation and Selection

• The ad has been well-ranking for Soft Ts. The distributers have been dealt professionally and formally.
• Distributors are apologized to instead of the issue being deflected.
• Another line of product Aurora Backpack targeted 21-30 years students
• This group is interested in photography and studying (Idris, 2021)
• The profit percentage is 37% as compared to the target percentage of 57.
• Premium aurora line design gathered better review, the price has been high as $200 and targeted for a profit percentage of 70.
• Annual budget reflected that total revenue has been greater than the target which tells the premium line has been doing well.

Speaker note

The premium line of Aurora design with leather backpack gathered good review. The positioning of the product has been on the point which resulted in a profit percentage of 75. Distribution channel with Sundaze (margin $1272) performed better than Annie & Alma $752.

Budget assigned to hip pack is 45,000, Soft Ts 70,000 and Aurora Premium backpack 135,000.

Product

• Odyssey Hip Pack – requires a redesigning of the pockets and inner chamber as per the customer review
• Soft Ts- the product has been positioned well in terms of the brand image and product quality however requires variation and options for customers to choose from (Alqahtani, 2020)
• Premium Aurora Backpack – the product has been positioned well in terms of design but requires variation

Speaker notes

The products have been designed well and following the customer feedbacks it appears that they have resonated well with customers perspectives however it is expected that the Odyssey Hip pack is designed better to fulfill the customers’ needs as the customers have felt a lack a utility in the design of the product.

While the other two has resonated well with the customers perspective yet it can be suggested that a bit of variation would be good.

Price

• Odyssey hip Pack – initial price has been $30.00 – it has been suggested that an increase in the price is expected following the market competitive pricing and the profit margin that it yields
• Soft Ts- the initial price of $60.00 seems well enough as compared to the market price of similar eco-friendly tops (Ансере et al., 2020)
• Aurora premium leather backpack- the pricing of the product has been in sync with the quality and premium positioning of the product

Speaker notes

The products as they have been discussed here has been placed according to their quality and market position except the odyssey hip pack whose price requires a consideration so as to match the competitive pricing of the market as well. The pricing of other two segments of products seems in sync with the pricing of similar product in the market.

Place

• The two distribution channel that the brand has been operating with are “Sundaze” and ‘Annie & Alma”
• Following the data regarding profit margin it appears that Sundaze has been operating better as opposed to Annie & Alma (Marušić, 2019)
• It requires of the brand to consider alternative and other distribution channel to market their product better.

Speaker Notes

It has been reflected from following analysis that margin earned from Sundaze is higher than Annie & Alma. It thereby requires of the brand to consider alternate distribution channel to increase the sale and revenue. Perhaps the brand can also launch its own distribution channel than relying on a third party.

Promotion

• The brands have been conducting several modes of promotion
• A budget of $64k has been invested upon promotion
• An effective outcome of the promotion has been reflected in about 34%
• The channels used are social media, streaming radio, OTT and digital
• It is suggested that the brand can indulge in social media and digital marketing even more aggressively.
• There is also the requirement to increase the budget in Digital marketing

Speaker Notes

It is expected following the analysis that the brand contributes more towards digital marketing along social media market and OTT platforms. The budget allocated to digital marketing was $10,000 but following almost 30% effectiveness of the channel along with 40% of the other two it is expected that the digital marketing has potential to perform effectively.

References

Alqahtani, M. H. (2020).  From the traditional marketing mix (4Ps) in sport to new marketing mix (3Ps): Toward a paradigm shift from practitioner’s perspective  (Doctoral dissertation, Middle Tennessee State University). https://search.proquest.com/openview/034d9d8c6d1fa5dc3a8ded93b19da7f7/1?pq-origsite=gscholar&cbl=18750&diss=y

Idris, J. (2021). Marketing Mix 4Cs: Impact on Small and Medium Entrepreneurs (SMEs) Marketing Performance. In  Proceeding of the 8th International Conference on Management and Muamalah  (pp. 221-226). http://conference.kuis.edu.my/icomm/8th/images/021-113.pdf

Karim, R., Latip, N. A., Marzuki, A., Haider, S., Nelofar, M., & Muhammad, F. (2021). The impact of 4ps marketing mix in tourism development in the mountain areas: A case study.  International Journal of Economics & Business Administration (IJEBA) ,  9 (2), 231-245. https://www.researchgate.net/profile/Faqeer-Muhammad-2/publication/351746745_The_Impact_of_4Ps_Marketing_Mix_in_Tourism_Development_in_the_Mountain_Areas_A_Case_Study/links/60a7607245851522bc07151d/The-Impact-of-4Ps-Marketing-Mix-in-Tourism-Development-in-the-Mountain-Areas-A-Case-Study.pdf

Lahtinen, V., Dietrich, T., & Rundle-Thiele, S. (2020). Long live the marketing mix. Testing the effectiveness of the commercial marketing mix in a social marketing context.  Journal of Social Marketing ,  10 (3), 357-375. https://www.emerald.com/insight/content/doi/10.1108/JSOCM-10-2018-0122/full/html

Marušić, T. (2019). Importance of marketing mix in successful positioning of products and services on the market.  Ekonomska misao I praksa ,  28 (1), 431-446. https://hrcak.srce.hr/clanak/322685

Thabit, T., & Raewf, M. (2018). The evaluation of marketing mix elements: A case study.  International Journal of Social Sciences & Educational Studies ,  4 (4). https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3173274

Ансере, Д. К. О., & Ухова, А. И. (2020). Effect of Coronavirus (Covid-19) pandemic on marketing mix (4Ps).  Вестник Южно-Уральского государственного университета. Серия: Экономика и менеджмент ,  14 (3), 180-187. https://pdfs.semanticscholar.org/d3bb/ded0777d82ff2b6fa153e9650d8d0d7ea566.pdf