ASSIGNMENT COVER SHEET

Unit Code Unit Name Due Date

TMKT 601 Marketing Management 5/06/2022

Assignment Number: Marketing Plan Final Report
Lecturer Name: Dr Hamin Hamin Tutor Name:
Students
Student Number Given Name Family Name

2022003712 Thi Tuyet Minh Tran

2022004622 Ying-Tzu TSAI
2021011782 Dieu Linh Le
2020008372 Dieu Lien Nguyen
2022004971 Manuel Bedoya Guido
2022001021 Francisco Igarzabal
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Student Signature(s)

Signature Date Signature Date

1 Thi Tuyet Minh 5 Manuel Bedoya

05/06/2022 05/06/2022
Tran Guido
2 Ying-Tzu TSAI 05/06/2022 6 Francisco 05/06/2022
Igarzabal
3 Dieu Linh Le 05/06/2022 7 Mariana Vernet 05/06/2022
4 Dieu Lien
05/06/2022 8
Nguyen
MARKETING PLAN REPORT
GROUP 6

LECTURER: DR HAMIN HAMIN

2
1.1. ............................................................................................... 2

1. Current Situation Analysis...................................................... 4

1.1. Market Summary ................................................................... 4

1.1.1. Market Demographics and Size ...................................... 4

1.1.1.1. Geographics & Demographics ..................................................................................................................................... 4

1.1.1.2. Behaviour Factors........................................................................................................................................................ 6
1.1.1.3. Market Trends ............................................................................................................................................................. 6
1.1.1.4. Market Needs .............................................................................................................................................................. 7
1.1.1.5. Market Growth ............................................................................................................................................................ 7
1.2. Competition .......................................................................... 8

1.3. SWOT Analysis ....................................................................... 9

1.4. Product Offering .................................................................. 10

1.5. Keys To Success.................................................................... 10

1.6 Critical Issues .............................................................................. 11

2. Marketing Strategy ....................................................................... 11

2.1 Mission ....................................................................................... 11

2.2 Marketing Objectives ................................................................. 12

2.3 Segmentation ............................................................................. 12

2.4 Target Markets ........................................................................... 14

2.5 Positioning.................................................................................. 15

3. Marketing Program ...................................................................... 16

3.1 Product Strategy......................................................................... 16

3.2 Pricing Strategy .......................................................................... 17

3.3 Communications and Influence Strategy ................................... 18

3.4 Channel Strategy ........................................................................ 19

3.5 Customer Service ....................................................................... 20

4. Financials and Forecasts ...................................................... 21

4.1 Financial Objectives.................................................................... 21

4.2 Break-Even Analysis ................................................................... 21

4.3 Sales Forecast ............................................................................. 22

4.4 Expense Forecast........................................................................ 23

5. Implementation and Marketing Controls ............................ 24

5.1 Implementation ......................................................................... 24

5.2. Marketing organization ............................................................. 25

5.3 Contingency Planning ................................................................. 26

3
 The limits of our environment are more evident today than they have ever been. People are
becoming increasingly aware of the finite source of energy, water, and other resources that
has led more people to think of sustainability as a plus. After the pandemic, human
lifestyle has been impacted dramatically. Living a simpler life became the macro-trend
since 2020, Many Australians are decreasing their living spaces. Downsizers aren't keen
on these sterile conditions and instead they prefer homes that are simple, functional and
sustainable. Considering the current economic situation and the desire for environmental
sustainability, many homeowners are looking for alternative housing options (Friedman,
2012). Therefore, Kabina is bringing a concept of portable house which close to the nature
and affordable. It forecasts a creative and dynamic solution to the complex problems in
our contemporary mobile society, while at the same time balancing the demands of
economy, practicality, and sustainability. (Kronenburg, 2013)

The modular or off-site construction - which accounts for 80% of homes in Sweden and
15% in Japan - has long been an important component of the residential market in many
regions overseas (Williams, 2017). However, the concept of portable dwellings is still a
hidden gem in Australian properties market.

In the past decade, there is a significantly increased awareness of the changing

environment. People are increasingly interested in sustainable and net-zero energy houses,
focusing on environmental issues, as sustainable building design includes the use of
natural and renewable resources. However, it usually costs more money to build green
houses in comparison with the normal ones. The high cost of green building features and
practices seems like a big obstacle to the market's growth. Green features and techniques
raise building prices by 5 to 10%, as well as renovation expenditures by more than 10%.
Furthermore, following high energy efficiency guidelines would raise expenses by $600 to
$1,000 per standard home. (Su and Urban, 2021). Additionally, nowadays the heightened oil
prices have increased leading to the inflation which impacts the house’s prices. Therefore,
it is currently a big challenge for today's first home buyers. In the result, to resolve the
issues of sustainable houses but affordable prices, the concept of portable architecture
using renewable materials will be a good solution.
The worldwide tiny houses market is estimated to increase at a CAGR of 6.5 percent from
2018 to 2025, up from $44,768.6 million in 2017 reaching $73,070.5 million in 2025.

1.1.1.1. Geographics & Demographics

Housing is essential to Australians' well-being. Home ownership is a widespread dream in
Australia because it provides owners with a stable life as well as long–term economic
advantages (AIHW 2018). Moreover, related to the impact of macro trends since 2020,
many customers today express their environmental concerns directly by selecting items
that guarantee a minimum quality of social and/or environmental stewardship. Consumers,
local communities, and other stakeholders are increasingly demanding guarantees that

4
products are produced in accordance with minimal social and environmental norms. Along
with the awareness of sustainable issues, the other contributing factors for the growth of
Kabina are the cities, household income and the age of consumers. The major market
Kabina is looking forward to the consumers in the big cities, where living cost is expensive,
daily life is busy and crowded. As per the Australian Bureau of Statistics in 2021, three
cities including Melbourne, Brisbane and Adelaide have the smallest number of high-
income families, except Sydney where the low-income family accounted for the smallest
percentage – roughly 20%. However, in most cities median household income who are
earning between $700 to $3000 weekly occupied a major amount. They are also the main
income group Kabina is targeting.

Household income in 4 big cities in Australian 2021

70

60

50

40

30

20

10

0
Melbourne Sydney Brisbane Adelaide

Low Income Family Medium Income Family High Income Family

Home Ownership by age According to the Australian Bureau of

Statistic 2021 report, the number of young
in Australia people who own a home is declining in
comparison to earlier generations, which is
15 to 24 showing clearly in the two youngest age
4% group of 15-24 (4%) and 25-34 (16%).
25 to 34 Nearly two-thirds of Australians think
55 to 64 16% homeownership won't be an option for
30% young people as property prices rise
(Chalmers, 2021). Hence, the portable
dwellings will be an ideal option. This type
35 to 44
of housing concept will be potentially
22% boomed in Australia due to its flexibility
and diversification for youth and the aging
population.
45 to 54
28%

15 to 24 25 to 34 35 to 44 45 to 54 55 to 64

SOURCE: AUSTRALIAN BUREAU OF STATISTIC, 2021

5
 1.1.1.2. Behaviour Factors
According to the 2018 statistics are
AUSTRALIANS CONCERN ABOUT listed in pie chart, nowadays most of
ENVIRONMENT AND SUSTAINABILITY AS OF the generations have the captures of
JUNE 2018, BY GENERATION environmental issues, however it is
Younger performed higher in the younger
Older Gen X Gen Y (22- generations than the older one. People
(46-53) 30) are changing their lifestyles. Simple and
23% 25% sustainable lifestyles are becoming
popular for whom place an emphasis on
environmental health and sustainable
living. Formal living rooms and dining
rooms are disappearing, replaced by
room, dens, and open space layouts,
while smaller, minimal resources and
cost, and low impact on the
environment are the key determinations
in current house building.
Younger
Gen X (38- On the other hand, human life is always
Older Gen Y
45) (31-37)
surrounded with a lot of negative
25% 27% factors such as crowd, busyness, and
pollution. Especially, during the period
SOURCE: AUSTRALIAN BUREAU OF STATISTIC, 2021 of pandemic when people cannot go out,
human’s mental is one of priority
concerns. Nature is a valuable medicine which helps heal people’s mental and improve
emotional regulation. A research on the cognitive advantages of nature discovered that
people who went on a nature walk performed better on a memory test than subjects who
walked through city streets (Berman, Jonides, & Kaplan, 2008). Therefore, the concept of
Kabina – houses in the nature that deliver an exceptional solution for current life which
are simple, affordable, and sustainable.

1.1.1.3. Market Trends

a. The pandemic effect of COVID-19
According to a new survey of nearly 1,500 people from 46 countries, human well-
being is impacted significantly during COVID-19. Desire of living close to the nature
has accelerated as people believe that environment helps to improve human
wellbeing. Moreover, since the pandemic started, the working environment has
changed that encourage to flexibility and mobility of the workplace.

b. Environmental sustainability
Sustainability is a trending phrase in recent years, due to the obvious benefits of
greener living. Sustainable houses are designed not just to protect the planet and its
ecosystems from a dark and lifeless future, but also for the people who want to
take control of their spending and create long-term financial savings. (Dimoudi &
Tompa, 2008)

c. Simplicity & Minimalism design trend

6
 The minimalist lifestyle is gaining worldwide popularity. The "less is more" is
become the modern life slogan. Over-consumption has had a significant impact on
current life. And younger generations consider this as the principal reason of the
financial crisis. Now, new generations must distinguish between necessary and non-
essential purchases.

During the last 2021, Australians see portable dwellings as a solution for ever-
relevant housing affordability. According to Google Trends, the ratio of people’s
interest in tiny houses has increased significantly with zero signs of declining in
Australia, since the sales of dwellings in Australia reach the highest rank. (Australia,
2022)

1.1.1.4. Market Needs

The market needs are mainly to keep improving quality, comfort, and sustainability.
Consumers should and would not resign comfort to achieving a minimalist and earth-friendly
way of staying in nature. It is also a need to find intelligent, fast, easy and reusable solutions.
(Pierce, Gabbe and Gonzalez, 2018)

Energy demand is increasing in the building and construction industry, which account for
36% of worldwide energy consumption and 40% of CO2 emission. Furthermore, about 75%
of buildings are energy usage inefficiency, which explains why minimising glasshouse gas
emissions is one of current market needs. Green buildings provide beneficial influence on
the environment (at the building or city sizes) by producing their own energy or promoting
biodiversity, in addition to reducing or eliminating negative impacts on the environment by
consuming less water, energy, or natural resources.

Large houses are not only more expensive and resource-intensive to build, but also more
costly to heat and cool. Smaller, more environmentally friendly dwellings may help minimise
housing's environmental impact: energy consumption can be reduced by at least 19.6% for
the budget houses.

1.1.1.5. Market Growth

Australian government is highly focused on enhancing the energy efficiency of our
buildings. Approximately thirteen percent of Australia's glasshouse gas emissions are
produced by sustainable houses. Household emissions will continue to climb as Australian
population is expected to raise up to 31
million people by 2030. (HIA, 2022)
New research by CSIRO under the CRC for
Low Carbon Living's auspices indicates that
Consumers in Australia want sustainable
houses, but they don't use the term
"sustainability" to describe their wants.
Australians discuss about desiring a house
that is comfortable, healthy for their family,
and affordable - all of which may be found
in a sustainable home. Meeting these goals
might result in significant gains in property
value. Two-thirds of home buyers prefer
GLOBAL GREEN BUILDING MATERIALS MARKET BY APPLICATION
energy-efficient homes when given a choice. (ASBEC, 2020)

7
According to the global green building report, we are expecting that this market will
experience fastened growth.

Competitors

Location Aventura, Florida Noosa hinterland NSW, Victoria

Established 2019 2016 2017

Year

Competitor’s -Green Magic Homes Products -TENT HOUSE Small houses with ultra-high
Product or -Hotel Boho Essen Services by Sparks Architects (4- ceilings and large loft beds.
Service -Vacation Rental bedroom family dwelling)
-Typical country houses.

-Large residential areas

Target Market -Done projects in 18 countries
including Australia
-Wide range of market. Offer to
family, business, hospitality and
AirBNB market.
-An enclosed and sheltered
mode.
-A open and expansive mode.
-Building seemingly small but
vibrant.
- Done projects in NSW, VIC,
QLD, SA (Australian states)
-The rural countryside life
experience with a partner or
the whole family.

Competitive -Delivering efficient, renewable, -The pavilion allows all rooms -Most houses have solar
Advantage waste reduction and locally to enjoy the rainforest view. panels, composting toilets
materials. and rainwater tanks.
-Well developed in social media -The surrounding forest
communication creates its own micro-climate -Each house has its own
personality.

Competitor’s -Focusing on big projects Due to the limited space size, Targeting to national
Weaknesses especially hospitality and tourism the house can be difficult to customers -> smaller market
market -> consume time and build. than the other competitors.
higher budget.

8
 The Kabina differentiations

Long-lasting
materials from
renewable
resources
Enhancing
minimalist life

Competitive
Pricing

9
Kabina was the first prefabricated building. A frame model that incorporates modern
techniques, has a low environmental impact, and reduces carbon emissions. Kabina’s
products are intelligent design and manufacturing precision that minimises unused space,
materials, and expense. It is constructed entirely of renewable plantation timber and is
stronger and more durable than previous methods due to the use of traditional
interlocking joinery.
VALUE to USER

- Lower

Economic benefits
construction costs.
- Lower annual - Less than 4

Exceptional Service
costs for energy, hours completion
water. - Kabina - Quite,

Natural living
- The position of showroom peaceful living
windows and - Guarantees - - Close to the
skylights to insurance nature
maximise natural provided
light and reducing -Comfortability
- Support service
the needs of
available
artificial lighting.
- Potential for
improved resale
value.

Sustainability is currently one of the world's major trends. It is based on the idea of saving
our world and its resources. It has become a component of a global commitment to
protect the natural environment while ensuring a prosperous life for future generations.
(Cohen, 2006)
Kabina is one of the businesses that are committed to long-term sustainability. Kabina is
always aiming to provide consumers with environmentally friendly products. Unlike other
competitors, KABINA solely uses plantation wood from sustainable sources. Every KABINA
products are designed and built have a low environmental impact and reduces our carbon
footprint. Our revolutionary production process produces 30% less waste than traditional
methods.
Based on this trend, Kabina can take advantage to promote products widely to consumers
by emphasizing the necessity of utilizing eco-friendly products in day life.

10
 • Digital Communication
Kabina was founded in 2021, in the middle of a global pandemic. They didn’t invest heavily
in marketing communication, internet marketing, or promotion advertising. As a result, the
company is unaware of their true target demographic. The company's marketing strategy
can use virtual reality technology which provides a real-world environment to improve the
customer observations and experiences. Digital marketing plays a vital role in developing a
business and attracting more new clients. (Nomura and Sawada, 1999)
• Keeping up with compliance regulations
There is numerous construction rules and regulations Kabina must follow when
implementing a project on site. The business needs to deal with global compliance
guidelines, country-specific laws, or even something very specific to a single state or city.
Attempting to reroute regulatory-related notifications to a specific location where you can
discover them easily is a good practise. Kabina is required to invest more time to keep up
with regulatory updates and rule changes. (Kostyuchenko, 1998).

2.1 Mission

“Pure air, pure water, and sustainability, will bring heaven on

earth - KABINA CREATES YOUR HEAVE IN THE REAL
LIFE”
Tagline: “Designed for an affordable and natural life”

Kabina invites you to live in harmony with nature, where tradition meets innovation.

Kabina believes that there is always a better way to dissolve the line between indoor and
outdoor, breaking down the barriers with seamless flow into your environment. Kabina’s
mission is to take care of human well-being, especially for the young and low-to-median
income groups, so they can also live in their own house. Kabina aims to bring the natural
system into people’s lifestyles, offering economical dwellings that are sustainable and
respectful of the limits of natural resources. Kabina promotes designs that adapt to your
environment and modify your preferences. The mission of Kabina is to connect nature with
your design, embracing the circularity of repurposing, reselling, relocating, and reducing
waste and resources.

11
2.2 Marketing Objectives

GROW BRAND
As Kabina is still a relatively new brand in the Australian
AWARENESS
market, brand awareness is an important marketing
objective to pursue. This year, our projects include
developing social media platforms such as Facebook,
Twitter, Facebook, and Tiktok, as well as attracting the
interest of customers by sharing Kabina’s product
information and useful content related to sustainability.
Participating in trade shows and exhibitions in Australia to
introduce Kabina’s products to customers.

GROW DIGITAL PRESENCE

The more ways you can place your business in front of
your target customers and provide them with valuable
experiences, the more opportunities you will have to build
brand awareness and improve your reputation. Investing in
SEO to get on the first page of Google results to increase
Kabina’s presence on social media, search engines and
other platforms by 20%.

LAUNCH E-COMMERCE
Creating a store in online marketplaces by joining Amazon,
MARKETPLACES
eBay, catch.com.au, Kogan, Bunnings, my deal…

GROW SALES REVENUE

Increasing online and in-store sales by 15% within the next
fiscal year.

12
2.3 Segmentation
Regarding retail and current target market we analyze the consumer as follows

Customer Geographic Demographic Behavioural factors

Segmentation

People are busy All the big Millennials and People seek a life balance, want to
and love the cities in middle-aged get away from the crowded city
environment. Australia people life. They want to spend the
weekend time in the rural area
where close to the nature, quite
place.

People with All areas in Between 25-40 Young people who have tight
limited budgets Australia aged and low to savings and can’t afford an
for house middle income expensive house.
ownership class

Couple or small Big cities Family with 1 kid New marriage family, small family
family or young couple, or couple, whose parents have a
medium income big land, then they can subdivide
the land and build a small house
inside the land, living
independently.

People is All areas in Median to high Home prices are still rising, it is
interested in long Australia income the good chance for people want
term investment customers to earn extra income with holiday
rental houses such as Air BNb or
resell for the future profits.

13
As a long-term goal, the plan is to build an alliance or partnership with a hotel or resort to
make the jump in sales. (B2B and B2C consumers)

Customer Geographic Demographic Behavioural factors

Segmentation

Hotel or Resorts Sydney No specific Hotels and resorts that have a balance
chains Suburbs demographic with nature and seek to save high
preference construction costs

2.4 Target Markets

In reference to the table of segmentation

analyzed before, the major target market of
Kabina is precisely those people who like to
be close to nature. The major potential
consumers include middle-aged consumers
that live in the city because of work and
daily routine, but at the same time, they
love to connect with nature. This group
includes busy people during the week who
can take a break during weekends (or
whenever the daily routine gives a chance)
to have a rest in their own Kabina located in
a special place where they can relax and
enjoy harmony with nature.

Another target market of Kabina is people

with limited budgets to buy a house. This
group includes middle-aged people (25 to 40 years old) with middle-class incomes who
want to invest in having their own property but do not have enough budget for a house.
Kabina would be the best option for them as it is cheaper than a house with quick and
reliable quality construction. Buying a house is a very expensive investment, almost
unreachable for many people of middle-class income. Kabina gives this group of people
the chance to have a property with a lower investment.

14
2.5 Positioning
Kabina must establish brand recognition among potential clients because it is fresh to the
market. Customers will be drawn to it because of its unique design, eco-friendly features,
and mobility.

Brand Kabina – Environmental House

Target Audience Young and busy people, love environment

Small family with tight budget looking for an independent house.
Partnership with Hotel or Resorts chains

Competitive Each Kabina house takes less than 4 hours to install and uninstall.
Advantages
Evolution and Permanent Sustainability
Kabina's revolutionary manufacturing technique produces 30% less
waste than the traditional way, saving space, resources, and
money.
Using plantation timber from renewable sources.
The Japanese traditional interlocking joinery structure ensures a
design that will last a lifetime.

Value Proposition Kabina's adaptability and mobility enable circularity: Repurpose,

resell, or relocate your items.
(Benefit)
Customers can personalise according to their preferences and the
needs of the site: additional features or rooms

Setting up a brand positioning statement is the crucial part in marketing (Calder,

2015). There are two major things that Kabina offers for brand positioning:

Competitive Pricing
Prices vary depending on size and design, however by using
renewable plantation timber sources which is cheap to produce
and doesn’t destroy the environment (Parker, 1971). Kabina
focuses on producing small mobile houses so they can approach
a wider range of customers.

Sustainable Brand
Kabina focuses on developing a green marketing strategy and
promoting a natural lifestyle. We use long-lasting materials that
require less frequent replacement. This decreases waste and
consumption. The construction's total carbon footprint was decreased
by utilising timber framing rather of steel, which has a lower embodied
energy. (Teng and Li and Pan and T Ng, 2018)

15
3.1 Product Strategy
The product strategy comprises two sub sectors: new product development and current
portfolio development. Our new product strategy will be primarily concentrated on new
technique, variable options and exceptional service. Hence, the company can
implement new product development in the present market and new product features
based on existing customer demands.

Features

Renewable resources materials, Kabina only use plantation wood from sustainable
plantations.

Interlocking joinery structure makes the houses more durable and strengthen with time

The mobility and flexibility of each KABINA allows it to be repurposed, resold

Saving spaces and Affordable

Guarantees We offer 2 years of the defect’s insurance and 5 years of structural insurance.

➢ Defects insurance period: If there are any problems with the builder's work within
your first two years in the house, such as the windows letting in rain because
they're not properly sealed, Kabina is responsible for maintenance and repair.
➢ Structural insurance period: Within first 5 years, the builder will be obligated for
major structural issues which are related to foundations, outside render, roofs,
ceilings, chimneys, and load-bearing floor components.

Support services Kabina contacts with valuable customers via email, website as well as
social media. All enquiries will be responded in 24 to 48 hours.

Beside the high quality but cheap and quick installation Kabina provided. We are planning a
new strategy for customer’s benefits which is creating a concept of trial home experience
for the potential customers. As the sustainable tiny house concept is still new to the
market, Kabina is offering two nights living in the demonstration house and free consultant
before any purchases

16
3.2 Pricing Strategy

Kabina Basic: $45,000 Including labour and installation cost

➢ Additional

Custom Build
Mobile Bathroom Folding
Kitchenette Pod Bed and Depending on the
Desk size and
requirements of
customers. The
$3,500 $10,000 $1,500 cost $2,500 for
Design &
Engineering and
Project
Management will
be applied

17
Deposit When customers buy a Kabina, they need to deposit 10% of the full value in
advance.
Discount policy
Kabina offers a 5% discount if customers pay the full amount before installation.
Kabina products are adopting the penetration pricing strategy. Kabina is a brand-new
product and is led by a young firm. As a result, in the beginning Kabina will start with a low
price to attract customers' interest and establish brand awareness. When customers have
a better understanding of the brand and product, we will increase the price.

3.3 Communications and Influence Strategy

Advertisement
Community Radio or place ads in magazines or newspapers.
Participate in exhibitions for relevant public events.
Video ads in television or cinemas.
Paid keyword search ads on Google search.
Build a super informative blog on Kabina website
Sales Promotion
Design Kabina showroom or house sample to attract the attention of customers. Potential
customers can have a free experience living in Kabina houses for maximum 3 days by
booking in advance.
Free design consultant and 5% discount for customers pay full upfront.
Social media Platforms
Use high traffic social media to create brand awareness.

FACEBOOK INSTAGRAM YOUTUBE

Use social media platform to promote events, offer exclusive discounts through social
media and expose the brand through limited time offers.

18
Direct Marketing
Organise an event at showroom. Promote it as a one-of-a-kind occasion. The content can
be about workshops or house demonstration. Treat your potential and previous clients to a
light meal such as cake, tea or coffee. Value customer’s presence by sending memorable
souvenirs at the end.
Volunteer. Become an essential component of your community. Make volunteering a part
of your company mission involve the entire team. Volunteering initiatives might become
regular traditions and activities. There are some volunteering opportunities: Adopt-a-
highway, Habitat for Humanity, RAMP No Limits, Red Cross blood drives, and Christmas
giving/meal service. Respect your community and you will earn even more than you provide
in return. (Ben, 2020)

3.4 Channel Strategy

Marketing channels are the means that are used to bring the message of your product to
the end customer, that is, they are the mechanisms that allow you to exhibit what you want
to sell to the target audience. The channel strategy used by Kabina is mainly online
(Palmatier, Sivadas, Stern and El-Ansary, 2019)

Marketplaces throughout Social networks: The Social media Platforms we use for Kabina
are Instagram, Facebook, Youtube Channel, Twitter, and Pinterest. These platforms can
maintain timely contact with your community, schedule content, analyse the performance
of your organic and promoted campaigns, supply information to the target audience and
customers, and purchase product.

Website Kabina has its website, from where we provide product-related information,
characteristics of products, how we work, materials used, contact information, and purchase
and payment information.

Affiliate marketing: Kabina also uses this as a channel to promote the product. This is very
positive to increase promotions and sales, and when a customer buys through the affiliate
link, the affiliate gets a commission. An affiliate is a salesperson of the company as the
company rewards them when they help make a sale. Kabina uses Instagrammers, Bloggers,
and Social Media influencers that can influence people’s decision of buying Kabina.

19
3.5 Customer Service

In line with the channel strategy, Kabina has developed a practical customer
service experience using the full potential of each channel. To get every message
and inquiry addressed, the Customer Experience Strategy (CX) has been designed
to redirect each message to the correct track. Depending on the consultation
category, it will vary who is taking action on it.
The CX strategy counts with possible touchpoints through email, CX bots with pre-
analysed Q&A with the most asked,
live chat on our website, Facebook
messages and Instagram chat on
social media.
All these channels and platforms are
24 hours monitored, seven days a
week, to provide our customers with
a personalized and fast answer to
whatever could happen.
In addition to this, our specialized CX team counts on the resources to show on-
site help if needed since we understand the importance of the product and what a
fast answer could mean. (Schanz and De Lille, 2017)

20
4.1 Financial Objectives
Kabina’s main financial objectives are to ensure the
business's financial viability and generate a profit.
The survival of a business is a common objective for
a small company. The initial objective of Kabina is
to survive its first year. On the other hand, profit is
the amount of money remaining after all expenses
have been deducted from a business's revenue.
Typically, Kabina seeks to achieve profitability
within two years.

4.2 Break-Even Analysis

Kabina uses break-even analysis to compare the costs of a business, service, or product to
the unit selling price to determine the point at which Kabina will achieve profitability. In
other words, it indicates when Kabina will have sold sufficient units to cover all of the
company's expenses.

Kabina was just established in 2020, during the COVID-10 pandemic. Kabina has set
a financial profit goal of a 10% return on the expenses as a beginning step to a 20%
return in 2023. Taking into consideration that each basic Kabina is sold as follows:

21
 CATEGORY Variable costs Unit Total Cost

Labor & Installation $7,000 1 $7,000

Lumpsum Raw Materials $30,000 1 $30,000

Delivery/Shipping $3,000 1 $3,000

Sales commissions (10%) $450 1 $450

Advertising $500 1 $500

Variable costs $40,950

Sell Price $45,000

Profit $4,050

The contribution margin between the selling price and the total variable cost of Kabina is
$4,050. According to SWOT analysis, Kabina knows its weakness in the high price of materials
in which variable costs should be lower to achieve a lower break-even point.

4.3 Sales Forecast

Continuing with what we analyzed previously, we believe that after the economic recovery
after the COVID-19 pandemic, it is an excellent time to grow and increase sales.
We believe that with the effective marketing plan we have generated, we can also expand
our sales throughout Australia.
SALES FORECAST
PER REGION
2020 2021 2022 2023 2024 2025
62

44
40

31
16

13
9

7
5

5
4
3

3
2

2
1

1
0
0
0
0

0
0
0
0
0

0
0
0

0
0
0

0
0
0
0
0
0

0
0
0
0

UNITS NSW SA NT WA QLD TAS ACT

ACT
TAS
3%
0%
QLD
8%
WA
11%

2020 2025
NT
2%
NSW
NSW SA 71%
100% 5%

22
The plan is to move away from centralizing sales in NSW (but not to one side) to become a
company that can distribute its products throughout Australia.
WA is a potential region where due to our present customers we will be able to generate
an interesting number of sales.

Forecast Sale 2022 2023 2024 2025

Totals of Unit 9 16 40 62
Min $45,000 $405,000 $720,000 $1,800,000 $2,790,000
each

4.4 Expense Forecast

In line with the sales forecast, the financial break-even analysis and the channel strategy,
the marketing expenses forecasts overlook how the marketing and advertising will be
allocated during the following five years, considering an increment of 15% year on year.

This plan will be a detailed review based on results and performance month after month by
the marketing manager to take full advantage of the investments and pay special attention
to conversion rates, website traffic and click-through rates to optimize the marketing mix.

Marketing Expense 2022 2023 2024 2025 2026

Social Media Advertising $ 750.00 $ 862.50 $ 991.88 $ 1,140.66 $ 1,311.75

Influencer Marketing $ 250.00 $ 287.50 $ 330.63 $ 380.22 $ 437.25

Public Relationships $ 600.00 $ 690.00 $ 793.50 $ 912.53 $ 1,049.40

Content Creation $ 400.00 $ 460.00 $ 529.00 $ 608.35 $ 699.60

Total $ 2,000.00 $ 2,300.00 $ 2,645.00 $ 3,041.75 $ 3,498.01

Increase - 15% 15% 15% 15%

23
5.1 Implementation

Marketing Campaign Launch Planning

￭ Conceive & Analyze Week 1-4

Project overall objective, affirm marketing goal

Estimate my budget, Set my target audience

Analyze my competition & current situation

￭ Project develop & Media planning Week 5-8

Decide my marketing channels
Choose my marketing strategies
Make my marketing schedule
Identify my selling goals

￭ Advertising Campaign Week 9-10

Launch multi-media campaign
Partnership with Hotel or Resorts chains

￭ Track Progress Week 10-12

Campaign monitoring
Performance measurement
Adjust my marketing strategy

24
5.2. Marketing organization
Kabina's organization structure is divided based on marketing functions, which includes
digital marketing, product marketing, and customer service, and will be led by the
Marketing Manager. Each division will have a leader and team members with
responsibilities. As a modern and dynamic marketing team, E-Commerce marketing is our
primary marketing strategy. It is the reason why we are focusing more on digital marketing.
Kabina's marketing team is flexible and works cooperatively with relevant departments in
the company such as sales, finance, projects department, and HR. We believe that
marketing is a major driver of growth.

The marketing organization structure for Kabina

25
5.3 Contingency Planning

Kabina has a contingency plan in case of any unpredictable crisis or emergencies presented before,
in and during execution of the work. We offer strategies to organize and execute effective actions of
emergency control. With this plan we minimize the social, economic and environmental losses
associated with an emergency situation, protect localized areas of social, economic and
environmental interest. A list of contingency plans is listed below:

Supply-Chain-Material Shortage

As Kabina uses renewable plantations and fires is a possibility due to natural disasters, we need to
have a generous stock of timber. To avoid timber shortage, we have different suppliers from were to
assure our amount of material for construction. The warehouse manager is in charge of having stock
control to avoid any material shortage and contact different suppliers in case we need.

Supply-Chain and Delivery

Due to Covid-19 cases, flooding and any other issue or other complication our delivery service can
suffer, and this delays the time accorded with the customer. What we do is re-establish a delivery day
and time with the customer or change the transporter to make the time accepted with the customer.

Labour Accidents

Our objective is to avoid injuries or labour accidents that may cause workers and third parties. To
reduce this, we train all workers in risk prevention and in response actions to situations of possible
emergencies. We provide our constructors with equipment and implementation of security tools to
react during an emergency, first aid kit, alarm, siren, whistles, and emergency lights.

26
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