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Marketing Plan

AMB240 Marketing, Planning & Management Semester 1, 2016

Emily Williams N8864861


Kevin Chan N9216120
Mercy Bass N8885842
Mitchell Symonds N9168770
Nikita Trott N9447202

Tutor: Mia Morrison


Contents
1. Executive Summary…............................................................................................................2
2. Situational Analysis.........................................................................................3
2.1The Market….......................................................................................................................3
2.1.1.........................................................................................Market Need
3
2.1.2.....................................................Macro-environment – PEST analysis
............................................................................................................4
2.2The Company.............................................................................................7
2.2.1................................................................................Mission statement
............................................................................................................7
2.2.2....................................................................................Marketing Team
7
2.3Competition................................................................................................7
2.4SWOT Analysis............................................................................................9
2.4.1....................................................................................SWOT Summary
..........................................................................................................11
3. Segmentation and Target Market...................................................................11
3.1Segmentation...........................................................................................11
3.2 Target market.........................................................................................13
4. Marketing Objectives and Metrics..................................................................16
5. Marketing Mix.................................................................................................17
5.1Product strategies....................................................................................17
5.2Pricing Strategies....................................................................................20
5.3Placement Strategies...............................................................................22
5.4Promotion Strategies....................................................................................27
6. Budget............................................................................................................31
7. Implementation Plan......................................................................................32
8. Reference List................................................................................................36
9. APPENDICES...................................................................................................38
APPENDIX A: Product and Stall Checklist...........................................................38
APPENDIX B: Market Visit..................................................................................39
APPENDIX C: Map of Competitors......................................................................41
APPENDIX D: Roy Morgan Value Segments.......................................................42
APPENDIX E: Stall Display..................................................................................44
APPENDIX F: Market Day Pamphlet.....................................................................................45
APPENDIX G: Examples of Promotional materials..............................................46
APPENDIX H: Market Research.............................................................................................53
APPENDIX I: Record of Purchase Form...............................................................................54
APPENDIX J: Order Form...................................................................................56
AMB240 - MARKETING PLAN 1
1. Executive Summary
Tote-lly You canvas tote bags are a new product entering the Qutopian marketplace in
2016. The defining point of difference comes with the service provided in choosing what is
printed onto the bag – making the product Tote-lly You. Consumers choose their print
from a vast selection of 40 hand-drawn designs on the market day or pre-ordered, the
design is then printed onto the tote bag, supplying the consumer with an collaborative
experience while providing a unique and environmentally conscious product.

Tote-lly You will target the Hipster, Environmental Earthling and College Girl segments
within the Qutopia marketplace. The marketing will strongly emphasize The Hipster – this
niche segment has latched onto the artisan and co-creators trend. Tote-lly You will give
these young optimist the freedom to express their individualism and values through an
environmentally sustainable and personalised product.

Competitors within the Qutopia Marketplace are indirect yet remain to be potential
threats. In particular, Colour On, although a clothing brand they are customizable and
eco-friendly – potentially tapping into the same target market. Through analysing these
competitors and evaluating Tote-lly You’s strengths and weaknesses, this report outlines
strategies to overcome the potential threats posed by them - through the use of effective
promotions, strategic pricing and product consistency. The concept of a premium
product will enable Tote-lly You to set prices accordingly with the biggest consideration
being the scarcity of supply for the product.

Consistency within the stall, the product and the promotions will assist Tote-lly You in
reaching the objectives, as outlined in this report. Key to this is achieving profitability by
successfully marketing and selling the product, which will be a direct outcome of high
customer satisfaction. While Tote-lly You’s success is dependent on achieving financial
and marketing goals, another goal that aligns with Tote-lly You’s ethos is environmental
sustainability, which will be considered in all stages of the product’s production and sale.

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2. Situational Analysis

2.1 The Market

2.1.1 Market Need

Tote-lly You is providing a personal accessory with a service experience which is the
defining point of difference. Past Qutopia results, secondary data research, and
market research conducted have indicated there is a need within the market for this.
In past semesters, a significant proportion of the Qutopian marketplace was personal
accessories products, although there is minimal focus on the purchasing experience
itself and customisation. Furthermore, our own market research finds the market will
be highly receptive of the designs available to be on the product (see appendix H).
Secondary data research (see section 2.1.2) shows a consumer shift towards
environmentally sustainable products. Therefore a product which allows customers to
co-create while being environmentally conscious, fulfils a need in the market.

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2.1.2Macro-environment – PEST analysis

Environment Trends/issues Implications for our product


Star rating in terms of how much it
relates to Tote-lly You (out of 5 stars)

International trade: The shift This ultimately improves competitive


of production to low-cost position for Australian exports and
countries increases the need decreases expenses for Tote-lly
for expansion of the free You. Ultimately, this increasing
trade agreement, in order to potential sales prospects from
create ease of business overseas.
exchange globally (Haider, ***
2016).

In the past 15 years, a As tote bags can be used as an


Political/Legal number of local, state and alternative to the plastic bag - the
national governments have shift away from plastic bags will
passed legislation to ban or increasing potential sales and interest
severely restrict the use of in Tote-lly You.
plastic shopping bags. This *****
shows a significant shift in
the international norms
associated with disposable
plastic bags. (Clapp &
Swanston, 2009)

Real household disposable The forecast of increased household


income (Magner, 2015). disposable income presents the
opportunity for ‘Tote-lly You’ to
generate revenue due to increase
in consumer spending.
Economic ****

Unemployment Rate: This will have a positive impact on


Throughout February 2016, Tote-lly You’s success, due to
the unemployment rate stable economic status of
nationally decreased and
consumers.
remained steady (ABS, 2016)
***

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Advancement in GDP: An Due to this increase, there is
increase in disposable more money to spend on
income amongst households nonessential goods and services.
and shoppers. (ABS, 2015)
***

Consumer caring This is important for Tote-lly You in


economy: As new considering the branding strategies.
generations of consumers ****
enter the marketplace it is
important for brands to
embed an element of
caring into the purchasing
experience (Davis, 2015)

Consumer Co-creators: The These consumers are exactly the


shift to the ‘we’ collective target market Tote-lly You is aiming to
movement in response to reach through the use of sustainable
Social/cultural/ the rise of 3D printing and materials and co-creation.
demographic technological design. Co- *****
creators are reinvesting
into artisanal craft and
products with a human
element to preserve local
communities and
sustainable innovations
(Bell, 2015)
Consumer financial attitudes If Tote-lly You’s target market have
and confidence growth high confidence in their
2015/2016 (Magner, 2015). economic conditions, they are
more likely to purchase a tote
bag.
****
3D printing: Impacts the As such 3D printing has the potential
design world with the to change the design and
Technology potential to change the manufacturing process of Tote-lly
structure of the product life You.
cycle (WGSN, 2012) ****

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Demand for online shopping As such demand for online shopping
(Magner, 2015). Competition will increase over the 2015/2016
intensifies as online-only period and as a result Tote-lly You
stores become primary needs to incorporate this concept
competitors. into their selling strategy (Magner,
2015).
*****

E-commerce and mobile Creating online access to the brand


optimisation (WGSN, 2012). will aid in increasing demand for Tote-
As technology constantly lly You.
advances the industry needs ****
to continuously incorporate
innovative web sources. As
such, mobile and e-
commerce is beneficial as
consumers find connectivity
and easy access important
in a brand.

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2.2 The Company

2.2.1Mission statement
Tote-lly You aims to provide a service in personalising tote bags where you're the co-
creator in a sustainable solution to saving the environment.

2.2.2 Marketing Team

 Emily Williams Product Manager


 Kevin Chan Promotions Manager
 Mercy Bass Marketing Manager
 Mitchell Symonds Pricing Manager
 Nikita Trott Distribution Manager

2.3 Competition
The main competitors within Tote-lly You’s industry, “Other Personal Accessory
Retailing”, are seen in table 2.3.1. Although these competitors are seen to be indirect
to Tote-lly you, due to the co-creation element of service.

Table 2.3.1: Competitors

TSHAK CANVAS&ink Colour On

Who is their Young, creative Quirky, uni Uni students ages 18-
target university students 25
market(s) students interested in art.

What is their Hand crafted t- Hand-drawn Customized hand-


product? shirts with meme designs on made clothing
generated cotton canvases
banter

What is their $70 $60 $90


likely price?

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What are their Market stall 2 Market stall Market stall 57 (see
likely (see appendix 52(see appendix appendix c)– Not a
distribution c) c) – This is a high particularly high
strategies? – A very central, exposure stall, traffic area, and
visible location, a meaning high on the opposite
high amount of foot traffic. They side of the market.
foot traffic. Quite are on the
close in location opposite side of
to Tote-lly You. the market to
Tote-lly You

How are they Likely that some utilise free Facebook marketing on the
likely to QUTopia group page. However it is impossible to know if they
promote their are all likely to promote and through what channels until the
business? promotion is already through.

Potential Likely to have a Hand drawn Customised aspect


strengths and degree of creates some means more power
weaknesses of wastage and competition for in the consumer.
competitors lack of product Tote-lly You with Also seems to be
uniqueness a more environmentally
because all customised conscious product
shirts are pre- aspect. They also. Will very likely
made. boast a stronger face consistency
However due to product with a issues and product
that, the product more service efficiency issues.
will be of better based
quality without approach. They
concerns of on- are very likely to
the-day printing. face consistency
and product
efficiency issues.

Our likely Will depend on Functionality of Functionality and


response(s) their marketing products are customisability of
ATTACK or strategy success different enough products are

AMB240 - MARKETING PLAN 8


APPROACH on the day. If that our response extremely similar to
both are should be Tote-lly You. It is likely
aggressive, our approach. we will need an
likely response attack response
will have to be
attack.

2.4 SWOT Analysis

STRENGTHS WEAKNESSES

● Personalised service with ● Tote-lly You is a new business to the


the opportunity to co- market so there is no prior
create. experience (Limited business and
● Ethical & environmental through sales experience)
recyclable and reusable product ● Reliant upon a printer to produce the
● Broad range of design options iron-on prints which could be risky,
available to suit the target market eg, if power goes out.
● Passionate and creative team ● Limited time to create brand loyalty -
that are enthusiastic about the no prior sales.
product (marketing students). ● Consistency of product with on-the-
● High traffic flow through location day prints.
of stall on market day. ● Limited market - number of people
● Online purchasing access through who will visit the market stall &
Facebook page. Facebook only
● Innovative and differentiated ● The time that it takes to produce
product - providing both a the product may be a problem for
product and a service, tailored for customers
consumers. ● Limited level of stock on-hand due to
● Strong company branding cashflow.
and marketing strategies ● Level of regulatory requirements -
● Excellent sales staff with strong restrictions on costs per unit and stall
knowledge of existing products design
● Recent market research data ● Pricing strategy (sales price) - if
incorrect can reduce sales (high

AMB240 - MARKETING PLAN 9


price) or can create perception of
low quality (low price)

OPPORTUNITIES THREATS
● If the government decides to
regulate plastic bag usage, ● Indirect competitors, through
demand for Tote bags has the their creativity in product
potential for rapid growth. innovation.
● On-trend product (tote bags are in ● Change in trends for youth culture.
fashion & the youth are currently ● Incorrect estimation of
environmentally conscious) market response (sales levels).
● Suited to the needs of the target ● Power & equipment failure /
market (students at university need interruption on market
bags to carry books) days.
● Potential to expand as a business ● 50+ competing stalls
into more markets, retail and ● Outcome of market day is
wholesale businesses or opening unpredictable, consumer trends is
our own store constantly changing.
● The stall can test the demand for ● Price inflation and volatility of
the product. Qutopia market day, not aware
● There is a low cost to start-up and of how other businesses will price
our investment has been backed by their product or service.
a business investor/sponsor.
● There are several other online
platforms that can used to market
the business.
● Market to a broader target market
with increased product variety.
● Increased awareness of hazards
of plastic bags.

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2.4.1 SWOT Summary
Tote-lly You’s strengths lay within the product itself and the vast array of opportunities
within the current market and environment. Although the product aspects portray
strengths, it is also found to be a risk. A key weakness is the reliance on technology
(iron and printer) on the market day to produce the finished product. This is
unavoidable, although to decrease risk, promotions will focus on consumers pre-
ordering the printed bag meaning there will less bags physically made on the market
day.
3. Market Segmentation and Targeting

3.1 Segmentation

The following figures provided are extracted from Qutopian data, to create
breakdowns of market segmentation.
Table 3.1.1: Age and Gender of Qutopian Residents

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Table 3.1.2: Roy Morgan’s Value Segment

Tables 3.1.1 and 3.1.2 show that the market is made up of 109 males and 165
females, approximately 94.9% of these residents fit into the age bracket of 18-25 years.
Whilst the Roy Morgan Value segments show that their are a large group of young
optimism psychographics’. Which means a large part of the market are young
energetic adults (Levine, 1997). The type of crowd that is deemed as long term
thinkers (See appendix D). Therefore Tote-lly You is predominately going to be
focusing on this demographic.

The following table focuses on the key targeting segments:


Table 3.1.3: Key Segments
The College Girl Environmental The Hipster
Earthling

Geographic These girls tend to Tend to live at home These young teenagers
description live at home with with a family setting most commonly still live
family or in rental or moved out with at home or have just
house with friends. close friends. moved out.
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Demographic 17-25 year old 15 years onwards, 18-25 years old,
description female Student Predominantly Mostly females and some
females and some males.
males.

Psychographic Young Optimism Socially Aware Young Optimism


description

Behavioural The classic college This segment generally This younger generation
description girl likes to be paid lives a healthy lifestyle always wants to be on
attention to and is and is very top of the latest trends
always out and environmentally to be seen as “cool” and
about, especially aware and will often different. They express
on weekends. support sustainability in their creativity and
They could be their actions. personality through their
seen as an co-creative style (as
energetic crowd. mentioned previously in
the PEST analysis). Will
spend majority of their
time hanging out with
friends.

3.2 Target market


According to our segmentation analysis above, Tote-lly You has decided to target
young adults aged 18-25 years, particularly the Hipster segment who are
predominantly female. Hipsters as a niche market have been chosen as they are the
most reliable segment to purchase our product. Closely followed by the environmental
earthling segment, as they also represent the social awareness that aligns with our
ethos. Finally, the college girl segment was also considered as a primary market
however it was decided we did not want to limit our target market through focusing
on females only.

AMB240 - MARKETING PLAN 13


Therefore the Hipster consumer was chosen due to their attachment to the artisan and
co-creators trend which Tote-lly You is embracing. This trend is important to the Hipsters
as they prefer a human element in products that offer sustainable innovations (Bell,
2015). Hipsters are apart of the young optimism segment as they are conscious about
the image they project which is relevant to Totelly-You’s personalisation aspect.
Furthermore, research shows that these consumers have a higher disposable income
as the majority of this segment live with their parents and as such can afford to
purchase personal accessories (Magner, 2015).

3.3 Market size, demand and potential

The QUTopia market is made up of 274 people. Of this, 166 are female- this will be
Tote-lly You’s focus target market. Although Tote-lly Yop will still will reach a
proportion of the male audience - therefore target market size is 200 people.

Customer loyalty is an important aspect to the business, although due to the nature of
a premium product it is only expected a very small proportion of people will re-
purchase. Therefore, returning customers will make up 10%.

Given the data found from previous years (see table 3.3.1) and Qutopia’s current
‘Other Personal Accessory Retailing’ industry (see table 3.2.2,) Tote-lly You’s
estimated market share is 16.6%.

Therefore, product demand forecast is 36 units (200 x 1.1 x 0.166).

AMB240 - MARKETING PLAN 14


Table 3.3.1 - Qutopia business performance for semester 2, 2015 in G4259 Other
Personal Accessory Retailing industry
Company Total Profitability Average Number Market
Name Sales price per of units Share
unit sold

Vintage $3695 22.87% $43.47 85 43.52%


Revival

Coffee $1410 -21.28% $42.73 33 16.61%


Cozies

T-Bag $1565 -20.77% $49 32 18.43%

TechTacos $1820 -26.37% $32 57 21.44%

TOTAL $8490 - - 207 -

Table 3.3.2 The Current Qutopia market G4259 Other Personal Accessory Retailing
industry
Stall number Business Name Product description

61 Kawaii Kases DIY phone cases


customers can design with
a wide range of
accessories.

67 Magic Unicorns To make customers' life


more convenient.

52 CANVAS&ink 100% cotton canvas. Feel


is thick, and strong wear
resistance

2 TSHAK Handcrafted T shirts


featuring the latest viral
meme trends from around
the globe

4 All Tied Up Handmade Yarn Bracelets

AMB240 - MARKETING PLAN 15


4 Marketing Objectives and Metrics

Tote-lly You’s financial and market goals address key issues identified in the situation
analysis, and will be measured through metrics to accurately measure the objectives
seen in table 4.0.1.

Table 4.0.1: Objectives

Objectives Metric Strategy Metrics: How it will be


measured

10% of sales Marketing An online order form will be Total number of online
pre-ordered effectiveness - promoted on social media purchases ordered
through Social media (see appendix G), allowing prior to market days.
Facebook awareness customers to choose a Increase of followers
page design and pick up a their on social media
pre-made tote on the day pages.
of the market. As a motive
online orders will be 20%
cheaper than buying on the
day.

75% Customer Satisfaction surveys will be % of customers who


customer satisfaction sent to customers via email. rated their
satisfaction This will be recorded from satisfaction over 5 on
their on-the-day order form the scale of 1-10.
(See appendix F) or online Plus, % of customers
order form (See appendix I). who said yes, to their
The survey will ask customers totebag being unique.
their level of satisfaction on a
scale of 1-10 with the product
and if they agree their tote
bag is uniquely theirs (yes/no)
(see appendix X for survey).

<10 minutes Customer The productivity of producing Time each order takes
spent Service each tote bag (printing & to be processed and

AMB240 - MARKETING PLAN 16


making each ironing). delivered back to
Tote-Bag the consumer.
order

Achieve Profit and Effectively manage the Revenue minus


positive Revenue budget with consideration for expenses
profitability pricing and promotion
strategies

No excess Environmental Consider sustainability of all Count of remaining


product Sustainability materials used, along with products and
wastage, efficient pricing and materials that are
with over promotions strategies in thrown out.
75% of order to sell all available
materials product supply.
used in store
recycled
and re-used.

5 Marketing Mix

5.1 Product strategies


Tote-lly You’s product entails personalised unisex canvas tote bag that provides an
environmentally conscious alternative to plastic bags. This consumer good allows
the target market to choose their own print they wish to have on their tote bag,
tapping into the co-creators trend. The print is chosen from 40 pre-selected hand
drawn designs based on marketing research. This will then be printed onto the tote
offering the customer a collaborative experience. There will be options of a canvas
or black tote bag to appeal to both female and some male. Our logo will also be
featured on the back of the tote bags as a form of branding (see image below
of sample tote bag).

AMB240 - MARKETING PLAN 17


Sample tote bag with hand drawn print:

Refer to the following table for a list of resources and supplies required to produce the
product:

Table 5.1.1 Supplies and Sources of Tote-lly You


Ingredient/Supplies Sources/Suppliers

Canvas Tote Bags 100% cotton Sourced through QLD Alliance for Mental
Canvas and black options available Health, free of charge. Their company
Black: 8 ethos aligns with our values of creating a
Canvas: 32 sustainable environment.

Prints Sourced through the ‘noun project’


accessible to the public. 40 prints to
choose from.

Inkjet Printer Supplied by Mitchell

Iron-On Transfer paper Bought online from ebay by Mercy

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Tote-lly You offers social value through providing the ability for consumers to make
decisions about purchasing an environmentally friendly tote bag, which portrays their
eco- awareness. The personalisation of the tote bag will enhance consumers positive
feelings about their purchase, due to the co-creation nature of the product.

The key motivators of our target market to aid in brand positioning include co-
creation, eco-friendly and practicality. These values are embedded into our brand
and product. This sets us apart from our competitors by providing a unique
positioning of our product through the personalisation and on-the-day service and
delivery. Also providing pre-ordering options allows the consumer to take the time to
choose the correct print, at a convenient time for a discounted price.

Therefore we are positioning our product to, young adults 18-25 years, Tote-lly You is
the personal accessory that allows consumers to participate in the creation of their
personalised tote bag. The totes provide an eco-friendly alternative to plastic bags.

Multi-product branding is in use as one name Tote-lly You is used for all our products.
However, if future success allows it, line extensions can be used to target an
alternative consumer. The personality of the brand represents simplicity,
environmentally friendly, practical, bold and casual. This is evident in the logo, by
using black and white and curvaceous font to appeal to the hipster target market.
Tote-lly You’s logo will also be used for branding purposes, such as the Facebook page,
Instagram and also featured on the back of all tote bags. As such, these strategies
will ensure distinction from competitors on market day.

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5.2 Pricing Strategies
The below table illustrates the price elasticity of the last market day. Less
significant data sets, where profitability was negative, have been eliminated to
achieve a truer picture of market demand at different pricing points.

(QUTopia Bureau of Statistics, 2016)

The equation for the line of best fit shows the exact price elasticity of this
particular market. As price increases by 1, quantity decreases by 1.18, which
observes a mild price elasticity. However, these price averages account also for
promotions, and not starting prices. A rough average price using our constrained
product supply of 40 and the product elasticity graph shown above is $75.

However, other influencers must be considered when determining a pricing


strategy. As shown in the competitor analysis (section 2.3), Tote-lly You has minimal
direct competitors that are offering a similar experience. This means that this
product and service is not easily substitutable, making real demand more inelastic.
The biggest consideration that must be made is the scarcity of supply for the
product. Due to the highly specialised nature, Tote-lly You is limited to 40 tote
bags, making demand once again more inelastic (Grewal, 2016).

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There is past evidence to prove that selling at a lower price point at AMB240 market
days is a more successful strategy. However, it also needs to balance with a more
premium value proposition as a result of our unique positioning as a product and
service. The ideal strategy therefore would be a mix of both, and to base initial
pricing off the break-even analysis for 80% of total available product supply. This
allows us to use promotion strategies aggressively in order to reach profitability
objectives (section 4). While the whole marketplace has been proven to exhibit
price elasticity, it is important to capitalise on our unique value proposition our
product and service holds with minimal direct substitutes and scarcity.

Our starting initial price will be $80. This was determined using a break-even
calculator as shown here (DinkyTown, 2016):

AMB240 - MARKETING PLAN 21


5.3 Placement Strategies

Tote-lly You will be located at stall 36, on a powered site in the Qutopia marketplace.
This will be held at Queensland University of Technology, in the Z Block Building. The
below table outlines the key features of our stall.

Table 5.3.1- Stall Features


FEATURES COMMENTS

Location Tote-lly You’s stall location for the QUTopia Market Day is at
stall 36.

Lighting There will be fluorescent lighting which will not affect our
stall placement or design but we will be using fairy lights to
brighten our stall.

Potential Our neighbours are Retro Balm in stall 35, they will be
neighbours offering lip care products, they are not a direct or indirect
competitor.
Re Glasses are in stall 37 are selling recycled glass items to
create home decorations which once again is not a
competitor for Tot-elly You.

Traffic Flow There will be high traffic flow as the stall is close to the
centre of the market.

Floor The floor is covered with carpet. This will not affect our stall.
coverings

Access to a We will have a wall to support the structure of the stall.


wall

Posts There is one post to the left of our stall that may affect the
view of our stall from a distance.

Sound As we will be in a central area, there will be a lot of noise


coming from the surrounding stalls and people. Because of

AMB240 - MARKETING PLAN 22


this we will have our own music to make our stall stand out
from others and attract people.

Impediments The biggest impediments are:


- Crowding and high traffic flow
- Noise
- Post limiting access to our stall or visibility of our stall

The location of the stall will assist in achieving Tote-lly You’s marketing objectives.
Through the centrality of our stall to the markets and high traffic flow, equals high
exposure. Access to electricity is critical, as we will be using a printer to print unique
designs and ironing them onto canvas tote bags on the day.
To avoid queuing there will be one person at the front of the stall selling and talking to
customers and two at the back making the bags.

Research from the Carseldine Markets visit (see appendix B), observed how the market
operators set up their stall and what differentiated the successful stalls to others.

TASK DISTRIBUTION STRATEGY

How will ‘place’ The bags will be strategically placed high up at the
achieve marketing back of the stall, so that people view the bags clearly
objectives? and there will be bags at the front of the store for
people to feel and touch.

The Kretchmer (2008, p37-54) views placement as part


of entertainment and commercial persuasion and
placement can be part of a Mass Media Marketing
strategy.

What distribution As the product is a new innovation and our business is


coverage should be in the early stages of establishment in the marketplace,
used. we will be using direct marketing channel strategies.
As Grewal states (2015, p.38) it is best to use a direct
channel strategy as there are no intermediaries
between the buyer and the seller.

AMB240 - MARKETING PLAN 23


The primary distribution channel will at Tote-lly You stall
at the Qutopia market day, there is also a secondary
distribution channel through Facebook sales and pre-
orders for the product.

Marketing Logistics - Multiple outlets - Tote-lly You will be using multiple


Physical and multiple outlets to advertising and promote product awareness
outlets on the day. This will be through team members
walking through the markets handing out fliers to
customers roaming the markets, and directly from the
store. This creates a more personal way of selling and
uses multiple outlets.

Physical - Physical logistics ensures the marketing team


that there will be enough of the required product
transported to the location of the market stall in good
condition ready to sell to customers

The marketing manager and the product manager will


transport the goods to the market day venue, while the
pricing manager will be in charge of the equipment
(printer, iron) needed to make the final product. The
distribution manager will bring all items used for the stall
display.

Regulation supply We have analysed past business data of sales of bags


and demand at previous Qutopia market sales. Using this
information we have calculated the expected sales
at 35 bags (break-even is 32 bags). To ensure we
have an efficient supply of inventory for market day,
we have allowed for an additional 7 bags in case of
increased sales or errors in printing.

We have bulk purchased the iron-on sheets to


minimise costs (75 purchased). In case we have
underestimated expected sales, we can then
purchase more tote bags for the second market day
and have sufficient supply of iron-on sheets. and as a
plan B, in case our products sell well and can be
utilised for future sales.

Presence within the For our product to stand out from the other stalls we
will

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Qutopia marketplace need to have clear, visible and easy to understand
signage, an attractive logo and brand, which was a
positive and effective observation made at
Carseldine markets (Appendix C, market visit). Standing
out is critical as it will be a crowded and noisy area of
the markets and we will need customers to easily
understand what we are offering and represent.
(Appendix E - stall design).

Stalls with a theme (colour and style) that reflect the


product or service, attracted more customers as
observed at the Carseldine markets (see appendix C,
market visit). Our theme as earthy and natural
reflects our recyclable personalised tote bags, which
reminds people that we are not just selling tote bags
with your own personal choice of design they are
also a better option for the environment compared to
plastic bags.

Another positive observation made at Carseldine


Markets was free samples and flyers (see appendix C,
market visit). This worked well because it captured
people's attention and people didn't have to decide
immediately, they could take the flyer with them or
they could taste the product or look at what a stall is
offering in their own time, and then decide if they want
to purchase something or not. Offering flyers would
also work as there is a higher chance the product will
not be forgotten.

We will be using wooden crates, to give a natural


recycled look and use minimal colours of just black
and white decorations. The logo uses a fun and young
style of font, in black and white and the logo will be on
a circular white wooden board, clearly displayed at
the centre of the back wall. This will make our stall
stand-out, easy to find and create brand recognition.

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The atmosphere will be aligned to our earthy theme
and we will use soft music, fairy lights and scented
candles to make the stall inviting and create
ambience.

A simplistic design that is not over crowded, makes our


product stand out and is easy for the customers to see
the products and reflects the theme of being good
for the environment. The bags will be hung on white
painted hangers at the front of the store and on the
back wall, which is in line with the customers eye sight
level. The prices will be clearly displayed on front
counter.

Handling customers, We will have some lollies on the table to offer people
queueing and delay while they are waiting. As the tote bags are a product
issues. and a service and will take around 5 -10 minutes to
prepare the personalise product for the customer. To
avoid people waiting around and queueing, we have
prepared a flyer with all the designed you can choose
from, which you can complete (see appendix F).
While standing in the queue, the customers can look
through and spend time choosing their design. We will
talk to the customers about their choice, to keep them
engaged.

The customer can place an order and then continue


shopping at the markets and return a few minutes later
to receive their bag.

Tote-lly You will enable customers to pre-order


products online through our Facebook page. This will
enable us to get products out to people immediately
without any waiting time, if pre-ordered. Sirrka et. al.
(1996) reviewed how consumers react to online
shopping and found that consumers perceive that
there is a time saving and reduction of effort in on-line
purchasing.

Procedures for If our service goes to plan, then the process will
service failure not take long and customers will have a minimal
wait.

AMB240 - MARKETING PLAN 26


There are risks associated with our service and product
delivery, such as printer failure, incorrect ironing of logo
or customers having to wait due to larger numbers of
people than anticipated. If this were to happen we will
have all of our display tote bags we can sell until we fix
the problem.

The pre-ordered items should not have any issues as


they will be made prior to market day.

If there are complaints about the product, the staff will


have received training on how to respond in a polite
and respectful manner.

5.4 Promotion Strategies

Tote-lly You uses the push strategy to advertise with the aim to create awareness for
the brand whilst influencing the consumer's attitude. Social media will be our main
platform for this action. This platform allows consumers to easily obtain information
from businesses, whilst social platforms give retailers like us a wealth of options for
reaching out to potential customers and creating values to the consumer (Carlson,
Lee, 2015). A study of 265 Facebook users showed that Facebook's ability to "Like"
brands, products and services allows the ability to explore the relationship between
social ties and those brands. It also found that "liked" brands on Facebook display
positive influence on consumer acceptance and are more likely to explore the
brand on and offline (Carlson, Lee, 2015).Success through advertising online has been
proven to be common, which is why we chose to focus on constantly posting updates
on Facebook and Instagram(See appendix G).

Another addition to our promotional strategies is merchandising. Studies show that a


good retail environment design should consist of an appropriate degree of arousal in
order to induce affective pleasure (Law,2012). As mentioned earlier in Placement
Strategies, the use of clear cut themes, signage and flyers worked best when

AMB240 - MARKETING PLAN 27


observing other market stalls. We will take these visual merchandising techniques into
consideration by using basic colours and a minimalist design in our market stall,
reflecting an environmentally friendly product. In addition, flyers are going to be made
available through handouts and placed on the front of our stall to attract interested
consumers. Tote-lly You has also collaborated with Gen-U, another Qutopian business
who features local businesses in their own issued magazine. Through Gen-U we will be
able to gain more publicity.
See table 5.4.1 below for all strategies.

Table 5.4.1- Summarised Promotional Strategies

Key message Communications Promotional tactics


mix element

Ethical and Facebook, Promoting the same message


Sustainable Instagram, across all our social media platforms
Merchandising, and promotional tools will help
Gen-U magazine shape our brand and also benefit
our reach to customers, repetitive
use of hashtagging will be used, eg;
#sustainablefashion. The
merchandising of our displays will
also reflect the sustainability of our
product.

Personalized Facebook, Personalization is our major


Instagram, stall competitive advantage, this
signage, Market opportunity will be shared heavily
research, Surveys across all social media platforms.
Personalized options will
continuously be researched through
surveys. A brochure will also be
handed out on the day for ease of
understanding how our personalized

AMB240 - MARKETING PLAN 28


service will work (See appendix E).

On Trend Facebook, As an ethical resource based


Instagram, business, we still like to be exciting
personal selling, with the product, which is why the
snapchat service we offer will allow
consumers to co create a design of
their own, in the choice of a black
or cream white tote. This will be
communicated through social
media and personal selling on the
day. Our differentiation to other
businesses will be how active we are
on snapchat, showing behind the
scenes footage and featuring
photos of our happy customers.

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6 Budget
7 Implementation Plan

Pre-Market Day Product Preparation

Action Team member Deadline


responsible

Organise sponsorship Niki Friday 15 April


of tote bags & collect

Purchase Iron on Mercy Friday 15 April


transfer sheets

Collect & finalise All to collect - Emily Friday 15 April


selection of prints to finalize

Make up pre-ordered Niki & Mercy Thursday 12 May


bags and 3 display
bags

Re-fill printer cartridge Mitchell Thursday 12 May


and insure printer is
working

Source irons & insure Mercy & Niki Thursday 12 May


working

Pre-Market Day Advertising & Promotions

Facebook & Kevin Friday 15 April


Instagram page
setup
Ongoing social media Kevin, with the aid of Ongoing
updates and all members in creating Friday 15 April
promotion of pre- content. - Market day
orders

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Pre-Market Day Stall Preparation

Construction of frame Niki Friday 6 May


and table

Collection of All team members Friday 6 May


decoration

Market day 1 – 14 May 2016

Stall construction Niki 8am

Stall decoration All 8am

Printer & iron test (to Emily 8.15am


insure all is running
smoothly)

Qutopia money Mitchell 8.15am


organisation &
preparation

Production of All 8.30am - onwards


product (printing
and ironing)

Customer service & Mercy, Kevin, Nikita 8.30 am - 9.00am


recording of
Mercy, Mitchell,Emily 9.00am- 9.30am
purchases/
customers (see Sales Mitchell, Kevin, Emily 9.30am- 10am
Record Form,
appendix H)

Roaming Promotions Kevin 9.00 – 9.10am

10.00 – 10.15am

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Competition Mercy Throughout day
inspection and
analysis

Pre- Market Day 2

Reflect and evaluate All Tuesday 17 May


market day 1

Make implementation All – Mercy writes this Tuesday 17 May


plan to make changes up
to improve from
market day 1

Social media Kevin Throughout week


maintenance –
focus on online
orders for market
day 2
Purchase more totes Emily Thursday 19 May
bags if necessary

Print and iron-on Mercy/ Emily/ Niki Friday 19 May


online customer orders

Market Day 2 – 21 May 2016

Stall construction Niki 8am

Stall decoration All 8am

Printer & iron test (to Emily 8.15am


ensure all is running
smoothly)

Qutopia money Mitchell 8.15am


organisation &

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preparation

Production of All 8.30am - onwards


product (printing and
ironing)
Customer service & Mercy, Kevin, Nikita 8.30 am - 9.00am
recording of
Mercy, Mitchell,Emily 9.00am- 9.30am
purchases/ customers
(see record template, Nikita, Kevin, Emily 9.30am- 10am
appendix H)

Roaming Promotions Kevin 9.00 – 9.10am


10.00 – 10.15am

Post- Market Day 2

Facebook update Kevin Monday 23 May

Profits statistics Mitchell Friday 27 May


Collection

Product Preferences/ Emily Friday 27 May


sales statistics
Collection

Collect and analyse Niki & Mercy Friday 27 May


product feedback

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8. Reference List
Abs.gov.au. (2016). 6202.0 - Labour Force, Australia, Feb 2016. [online] Available at:
http://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/6202.0Main+Features1Feb%20201 6?
OpenDocument [Accessed 10 Apr. 2016].

Bell, A. (2015). A/W 16/17 Consumer Forecast: Artisan – Co-Creators. [online] WGSN.
Available at: https://www-wgsn-
com.ezp01.library.qut.edu.au/content/board_viewer/#/56931/page/4 [Accessed 8
Apr. 2016].

Carlson, A. & Lee, C.C. 2015, "FOLLOWERSHIP AND SOCIAL MEDIA MARKETING",
Academy of Marketing Studies Journal, vol. 19, no. 1, pp. 80-101.

Clapp, J. & Swanston, L. 2009, “Doing away with plastic shopping bags: International
patterns of norm emergence and policy implementation”.

Davies, C. (2015). The Caring Economy. [online] WGSN. Available at: https://www-
wgsn-com.ezp01.library.qut.edu.au/content/board_viewer/#/62168/page/3
[Accessed 10 Apr. 2016].

Grewal, D., Levy, M., Matthews, S., Harrigan, S. and Bucic, P. (2015). Marketing. North
Ryde, NSW: McGraw-Hill Education.

IBIS World, (2016). Industry Research. [online] Ibisworld.com. Available at:


http://clients1.ibisworld.com.au.ezp01.library.qut.edu.au/reports/gl/industry/home.asp
x [Accessed 17 Apr. 2016].

Kretchmer, S. (2008). The Practice of product placement, advertainment, The


evolution of Product Placement as a Mass Media Marketing Strategy. Journal of
Promotion Management, [online] 10(1-2), pp.37-54. Available at:
http://www.tandfonline.com/doi/abs/10.1300/J057v10n01_04 [Accessed 12 Apr.
2016].

Lauren, M. (2016). Consumer Goods Retail in Australia. [online] IBIS world. Available at:
http://clients1.ibisworld.com.au.ezp01.library.qut.edu.au/reports/au/industry/default.a
spx?entid=1720 [Accessed 11 Apr. 2016].

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Law, D., Wong, C. and Yip, J. (2012). How does visual merchandising affect consumer
affective response?: An intimate apparel experience. European Journal of Marketing,
46(1), pp.112-133.

Roy Morgan Research. (2016). Values Segments. [online] Available at:


http://www.roymorgan.com/products/values-segments/ [Accessed 15 Apr.
2016].

Sirrka, J. and Todd, P. (1996). Consumer reactions to electronic shopping on the world
wide web. International Journal of Electronic Commerce, [online] 1(2), pp.88-98.
Available at: http://dl.acm.org/citation.cfm?id=1189807 [Accessed 18 Apr. 2016].

WGSN. (2016). 3D printing: innovations. [online] Available at: https://www-wgsn-


com.ezp01.library.qut.edu.au/content/board_viewer/#/138119/page/1 [Accessed 12
Apr. 2016].

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9. APPENDICES

APPENDIX A: Product and Stall Checklist

Item Detail Your Response

Is a food license http://www.brisbane.qld.gov.au/l No


required? aws-permits/laws-permits-
businesses/food-business-
licences/starting-new-food-
business/market-food-stall

If you have a food, Not Applicable Not Applicable


beverage or skin
care product. Does
your product have all
ingredients listed on a
label attached to the
product?

What are the Must NOT exceed 1.5m x 1.5m in Height:


dimensions of your width and depth Width:
stall? Depth:

Will you be using If so please state the equipment Yes


electricity in your you will be using. Please note that - Iron
stall? you cannot overload the power - Laptop charger
switches with lots of power
boards.

Are there any stall Examples are: Precautions:


features that require  Power cords that require - Use of iron in small area
safety or mess taping down or hiding - Power cords that
precautions? behind stall. require taping and
hiding behind store

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APPENDIX B: Market Visit

Location of market: Carseldine Markets


Time, day and date visited: 7.00 am, Saturday, 19 March 2016
Team members present: Nikita Trott, Distribution Manager

Observations - Busy Stalls

What products were being sold?


● Food Stalls - burgers, pies, pancakes, crepes, fresh juice, international cuisine
● Farmer Markets - flowers, fresh fruit & vegetables, fresh baked produce, meat
& seafood
● Dog Wash & pet accessories
● Services - eyebrow shaping, massage, key cutting
● Handmade goods - wooden craft, jewellery, handbags/material bags
● Clothing - cartoon print skirts, 1950’s style dresses, beach dresses
● Dairy products - Maleny yogurts, milks, speciality almond & cashew milk
● Speciality foods - marinated olives, curry powders, flavoured popcorn, salami
meats
● Coffee venders - teas, coffees, milkshakes, chai latte, hot chocolate & muffins

Who were the customers?


The markets are broken into three areas, eating area, farmers markets and clothing
and goods. During the early morning, the majority of the people were around the
farmer market area. The age of the people at this time of the morning was middle
age to older. There were mainly women with the occasional couple, however the
customer mix changes during the day with younger people and males increasing as
people come for the breakfast.

How did they attract people’s attention


The following techniques were used to attract people:
● Clear signage at the front of the stalls,
● Stall that had a theme (colour, style) that suited the products/services
● Area was not cluttered and the produce was easy to see
● Some stalls had free samples
● People were friendly and some called out, being verbal with customers
● Similar stalls were grouped together, creating a hub

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● having fliers people would take to read about the stall and what it offers so if
they are interested they can come back

How do they handle queues?


The markets were not too busy but often there was another one or two people helping
and when the queue started to get long, the other person would stop restocking or
cleaning and start serving.

What consumer ‘need’ are they satisfying?


The consumers needed to eat breakfast, do the home food shopping and buy a
gift or luxury item while they are there. The Farmer Markets seem to bring everyone
to these markets.

Observations – Non-busy

Stalls What are their

products?
The clothing and jewelry areas were quiet.

How do staff respond when people walk past? (ignore them, make eye-contact)
People smile and make eye contact, some people call out and offer discounts,
others ask you questions like, are you needing a key cut, or ask about your dog.

Why do you think their stall is not busy?


Given the time of the day, the farmer markets and breakfast stalls were very busy
while the other stalls were quiet. However, later in the day, the lunch and shopping
customers would arrive and those areas would become more busy

What could they do to improve sales?


Better signage, better stall layout so their products were easy to see, a theme or
costume for the seller could be used to attract people into the stall. Move to markets
which have a different customer group - younger and people more suiting to
purchasing you goods, e.g. South Bank Markets.

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APPENDIX C: Map of Competitors

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APPENDIX D: Roy Morgan Value Segments

The table below provides the value segments sourced from (RoyMorganresearch.com,
2016) which offer a system of market segmentation that goes beyond demographics
and psychographics to explore values, mindsets and attitudes that motivate consumer
behaviour.

Roy Morgan Value Segment Description

Socially Aware Like to be well informed before they


make a decision.
Socially active,
Embraces leading edge technology

Visible Achievement Leaders in their field, but confident


enough not to show off about it.
Persuasive and
inspirational leaders.
Decisive, demands attention to
detail.

Young Optimism Highly independent and self-


reliant, they like to play hard as
they work
Adventurous, looks for new
challenges and excitement
Young, but think long term such
as advancing in their career.

Real Conservation Loyal to friends, loved ones and


brands they can trust.
Tends to go by “the
book” Very demanding
Works best with facts and figures

Look at Me Fun, loving, impulsive- all about


‘now’
Motivates other with enthusiasm

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Curiosity often leads to risky
situations.

Conventional Family Life Family values and responsible


attitude
Most of his/her income goes
towards their kids, mortgage and
home.
Focused on job and family security
Likes to juggle many things.

Traditional Family Life Older counterparts (retired)


Seek the facts to offer practical
solutions
Lifelong learning trumps
formal education

A Fairer Deal Generally low income earners


Wants to be rewarded for working
hard
Prefers to work alone
Skilled with tools of the trade

Something Better Competitive, ambitious and


possibly in debt
Always seeking something bigger
and better
Compares themselves with others

Basic Needs Focus on ‘getting by’ from Day to


Day
Remain independent
Often retired or living as
a
pensioner

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APPENDIX E: Stall Display

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APPENDIX F: Market Day
Pamphlet Front
Back

AMB240 - MARKETING
APPENDIX G: Examples of Promotional materials
This appendix provides Tote-lly You’s social media activity across Facebook and Instagram.

Facebook posts

AMB240 - MARKETING
Date Post

07/04 Hey people of Qutopia! Let us personalize your tote bags. Save the
environment and cut out plastic bag usage! J

07/04 Plastic bags are light and can blow in the wind. They fly into trees and
into wildlife habitat. Animals can consume these plastics, and perish.
Plastic bags are a deadly killer to wildlife.
Get ready as we have some work in progress to help prevent this cause.
Pre orders for personalized tote bags coming soon. #WorkInProgress

10/04 Tote-lly You tote bags are personalized to you and are tote-ally
reusable. Your chance to preorder is coming soon!
♻♻♻ #sustainableliving #sustainablefashion #minimalistic #environment
alsustainability #wastemanagement
(Picture attached to post):

10/04 Sample Prints – here’s some of our favourites!

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12/04 Hi fellow QUTopians!
We are now taking pre orders for the upcoming QUTopia market day.
Simply click on the link provided and choose a design that you favor
the most and leave the rest of the creation to us!
Pre-orders will have a discounted price on top of the usual retail price of
$80, each tote will come down to $70 if you order one prior to market
day.
Note* Payment is to be made when collecting.

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12/04 One of our favorite designs, the sea anchor!
Plastic bags produce fossil fuels and kill thousands of sea creatures and
birds every year. Tote bags can help reduce this.
Tote-lly you is all about being sustainable whilst also being stylish.

AMB240 - MARKETING
Instagram Posts
Date Post

10/04 Tote-lly You tote bags are personalized to


you and are totally reusable! Your
chance to pre-order is coming soon!
#sustainableliving #sustainable fashion
#Minimalstic
#environmentalsustainability #wastemana
gement

11/04 Residents of QUTopia, get ready for some


tote fun! We have just received
biodegradable and recyclable tote bags
in black and white! Our stock is only
limited

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so make sure you keep up to date with Pre
Orders!!
Otherwise we shall see you at Market Day.
#sustainablefashion #wastemanagement
# environmentalsustainability
#Reducereuserecycle #reduceplastics

AMB240 - MARKETING
17/04 PRE-ORDERS NOW AVAILABLE. Choose a
design that is tote-lly you so that we can
co-create it into a stylish yet sustainable
bag. A discounted price of $70 will be
applied if you order prior to market day.
Link available in BIO. #sustainablefashion
#recyclereusereduce #ethicallysourced

AMB240 - MARKETING
APPENDIX H: Market Research
Our own brief market research surveyed 16 respondents within our target market
segment on their tote bag ownership and design preferences. The results were that
the average person owns 2.46 tote bags. Design preferences were spread across all
categories without any clear winners or losers. We inferred from this that taste is
rather subjective, We inferred from this that giving people choice would be both more
effective and efficient in product design as tastes are full of variety.

Results can be found here: https://www.surveymonkey.com/results/SM-TLD8M3SS/

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Appendix I: Record of Purchases Form

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Appendix J: Order Form
This pre-order form is available through our Facebook and Instagram pages, links will
directly take the customer to the order form, after they submit their order the
promotions manager receives an email.

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