MANAGEMT 7104 Marketing Management: Plan of Sydney University
Answer:
Overview
Symone & Co is a company based in Canberra, New South Wales. Mr. George Symone founded this company in May 2009. Symone & Co is one of the emerging manufacturers, retailers and sellers of bottled mineral water in southeast Australia, and its business expanses over states like Queensland, Victoria and South Australia.
At 4th July 2016, under the leadership of Stephen Phillips, Symone & Co employed over 1200 people in its organization and currently holds approximately more than 12 installations across the country. According to the company’s statistics, the annual turnover of the company is approximately 82.7 million A$ with an annual growth rate of 1.15 % as recorded in 2012-2017.Additionally, this company distributed almost 1.5 million bottles at sporting events per year. Its current CEO is Thomas Symone.
One of the major products of this company is Aqua Regis, which is a bottled drinking water manufactured in several sizes comprising from 200 ml, 350 ml, 500 ml, 1 litre, 2 litre and 5 litre packages respectively.
Need for Marketing Audit
Marketing audit refers to systematic, comprehensive, interpretative analysis and review of business marketing operations within the organization (da Gama 2012). Its basic objective is to underline the primary goals, strategies and targets of the company in both internal and external scenarios, and identify the strengths, weaknesses, opportunities along with a recommendable course of action that can enhance the performance of the firm in the mark
eting backgrounds (Webster Jr and Lusch 2013).
Creating a proper market auditing, the management should pre-consider these parameters:
- It must be comprehensive enough to cover all marketing activities
- It should allow systematic analysis and evaluations regarding the company’s goals, objectives, strategies and other operations that influence the market performance of the firm directly or indirectly.
- It should follow an autonomous or an independent procedure conducted by a person operating outside the firm for unbiased and honest report of the marketing activities of the firm.
- Its conduction should be on a periodic basis at a regular or fixed interval of time.
The main reasons to conduct this market audit are as stated below:
- To confirm the approach that will facilitate in determining the tools and tactics to make the best use of the marketing budget invested by the firm
- To make the optimal use of the marketing budget by the remove unnecessary spending identified in the budget details
- To identify and define the target audience and the plans to reach out the company’s product in a correct manner
- To collect and compare the data on the firm’s product and its design with respect to the rival companies in the market in order to measure the efficiency of the marketing plan previously approached by the firm itself
- To assess and eliminate the weaker approaches and replace them with better and cost effective solutions
- To act as a constant reminder to the firm’s short-term and long term goals
Microenvironments
Microenvironments refer to all the components that influences all the operations related to performance and decision making in the marketing process (Palmer2012).
It consists of company’s competitors, customers, channels of distribution and suppliers
Competitors
The term “competitor” refers to those companies in the market who are capable of sales and distribution of a product similar to the firm’s manufacture. The main aim of any competitor or rival company is to gain as much market share in order to maintain a successful business venture. This can be possible with techniques like reduced cost price, better packaging process and efficient advertising (Hollensen, S., 2015).
The industry of packaged drinking water in Australia exhibits high levels of concentrations in terms of market share. The top most competitors in the industry include giants like Coca-Cola Amatil and Asahi Holdings Australia, which represents approximately 50.4% and 36% of the market share respectively (Cosgrove and Rijsberman 2014).
Customers
Customers are those entities who have the ability to purchase any product based on their demand. Customers can be generalised into two categories: Current and potential. The retainment of the current customers is as an important function as the attracting of potential customer is. Determining the target audience for the sale of product is necessary for any kind of industry around the globe. A customer friendly approach is always a better solution for the marketing purpose (Kotler et al 2012).
Channels of distribution
The success of any marketing function of any industry depends on the mediums of distribution and retailing in the market. The channels of distribution are the path or routes chosen by the marketing department of a particular firm in which the goods or services manufactured by the company is transported from the area of production to its end users. it further includes four elements such as producer, wholesaler, retailer and consumers( Mallen 2013).
The channels of distribution divides into three segments depending on the length and parties involved during the whole transmission of the product-
- Producer → wholesalers→retailers → consumers-
- Producer → retailers → consumers
- Producer → consumers
Suppliers
The suppliers are those parties that provide the appropriate materials for input required in the manufacturing process. it is essential for the marketing managers to maintain a good relationship with the suppliers in order to avoid any sort of scarcity in resource and delays in the production that may affect in the cost of the sales as well as customer satisfaction. Collaborating with the supplier is often a reliable method as suggested by the marketing experts (Boone and Kurtz 2013), as it allows them to receive more value than just payment of goods they have supplied to the company.
Industrial data
|
Year |
2013-14 |
2014-15 |
2015-16 |
2016-17 |
2017-18 |
|
Revenue |
621.6 |
634.3 |
649.9 |
660.1 |
678.5 |
|
Industry value added ($m) |
225.8 |
233.7 |
241.9 |
249.4 |
256.2 |
|
Establishments |
51 |
50 |
48 |
46 |
45 |
|
Enterprise |
35 |
34 |
34 |
32 |
31 |
|
Employment |
1343 |
1343 |
1357 |
1361 |
1355 |
|
Export ($m) |
2.0 |
2.1 |
1.9 |
1.9 |
2.0 |
|
Imports ($m) |
15.6 |
15.6 |
16.1 |
15.3 |
15.4 |
|
Wages ($m) |
80.8 |
81.7 |
83.0 |
83.0 |
84.0 |
|
Domestic demands ($m) |
635.2 |
648.0 |
664.1 |
673.5 |
691.9 |
(Source: IBISWORLD)
Macro Environment
This section discusses about those external factors that influences the company. Unlike the elements briefed in the microenvironment, these factors are not controllable by the company to any kind of extent known. These factors consist of legal, political and social conditions of a country as well as technological changes, competitor’s strategies and natural disasters (Dawson 2014).
In order to understand the brief conditions of the macro environment of the company, the marketing managers devise the method of PESTLE analysis.
PESTLE Analysis
PESTLE analysis (also referred as PEST analysis) is concept of marketing principles used as a tool by the marketing managers to assess the external environment they are currently operating in for launching a new product or service in the market (Ho 2014). Its abbreviation stands as-
- P for political scenarios of the country
- E for economic scenarios
- S for social backgrounds in the country
- T for technological changes experienced in the country
- L for legal regulations
- E for environmental issues in the region
|
|
Current conditions |
|
Political |
According to a report by the Economic Intelligence Unit, Australia has one of the highest ranks in terms of political stability in the world. this directly supports low corruption, high government support and easier environment for conducting a business in the country(https://country.eiu.com) |
|
Economic |
The economic condition of the country has proven to be strong and resilient with opportunities for sustainable growth and low-risk environment for business ventures. Australia’s strong ties with the countries of Middle-east , Africa, north and south America along with the European Union further supports its well-established and healthy economy(https://country.eiu.com) |
|
Social |
The Australian population comprises a social diversity with about 10.7% of the total population belong from various countries and ethnicity, while rest 89.3% belongs to the natives including the Aboriginals. The society is classified into three groups namely- upper class, middle class and the working class. however the definite boundaries between these groups are yet to be confirmed |
|
Technological |
According to a report by small business technology Institute (SBTI), it is indicated that small business firms tend to approach IT support in a proactive basis as they tend to issue a very limited human and financial resources to facilitate their business functions (Storey 2016) |
|
Legal |
The Australian legislative authorities are responsible for maintaining a fair and transparent trading relationship between the business and its consumers via its national law framework enforced by the Australian Competition And Consumer Commission or ACCC. The role of ACCC is directly involved in the protection of consumer rights and product safety standard Additionally along with the Australian government legislation, the state and territorial laws also govern consumer protection as well as provide consultancy on business rights and duties (Competition 2012). |
|
Environmental |
The Australian weather frequently experiences extreme changes and weather conditions like flood, heatwave and cyclonic storms throughout the year. These conditions usually disrupt communication and delivery of goods to the consumer leading to decreased demand supply and higher costs of production resources. |
Market Analysis
According to the estimations conducted by Australasian Bottled Water Institute (ABWI), the bottled water industry is worth of approximately over $500 million a year, equating to the sale of almost 600 mega litres (600,000,000 litres) of water. About 60% of its total sold as in single-serving bottles. About one in five Australian households buys bottled water. In 2014, the percentage of households buying bottled waters exponentially increased from 35% to 21% (PARTNER et al. 2014).
SWOT analysis
Swot analysis in marketing principles, originally devised by Albert S. Humphrey, is an analysis of all the determinants in the company in order to identify all the contributing assets of the company, along with its weak spots, future opportunities for development and contemporarily temporarily threatening elements to the company (Sevkli et al 2012).
Its prime focus is on identifying these points:
- Collective strengths of the company and its product
- Weaknesses and vulnerability in the management function
- Opportunities that can be beneficial for the company and the product in the future
- Threats and obstacles that may arise during the marketing operations
In the segment below, the SWOT analysis of the Symone & co describes as
|
Strengths |
· The product is easy to use · The taxes are less in comparison with other beverages · The price of the product is significantly less than the rival companies · The product is available in different kinds of sizes according to the customer’s convenience
|
|
Weakness |
· The product faces risk of contamination due to use of plastic packaging · The cost structure can be addressed for improvements · The emphasis on the promotion of product’s brand image is not as per set standards · lack of insurance on any damages caused by natural events |
|
Opportunities |
· New markets in states like Northern Territory and Western Australia can be approached · The company can provide sponsorship during sporting events in order to promote the product. · Deploying new methods in sales function is advised · Deploying new technologies of purification and packaging can be considered in future establishments |
|
Threats |
· The presence of industry giants like Coca-Cola Amatil and Asahi Holdings Australia that presently dominates the market · The threat of new entrants in the market is relatively medium · Change in tax laws are a potential threat to the production function · The presence of substitute products like soda, energy drinks and flavoured soft drinks can influence the sales of the product. · fluctuating weather conditions that may disrupt channels of distribution and supply |
Conclusion and recommendations
Hence, the report concludes that Symone & Co faces fairly a tough competition in the market along with the weather conditions that threaten the company’s supply and distribution channel. The political, economic and legal analysis confirm as favourable for the company to continue its venture in the market with substantial growth and development. However, the promotion of the product brand needs critical attention with more creative and cost effective approaches by the marketing team and management. Moreover, the company has potential for gaining a national level of competitive advantage and considerable market share in the industry if the plans for expansion in other states and untouched regions of Australia gain approval by the top-level management.
Reference
Webster Jr, F.E. and Lusch, R.F., 2013. Elevating marketing: marketing is dead! Long live marketing!. Journal of the Academy of Marketing Science, 41(4), pp.389-399.
da Gama, A.P., 2012. Marketing audits: The forgotten side of management?. Journal of Targeting, Measurement and Analysis for Marketing, 20(3-4), pp.212-222.
Palmer, A., 2012. Introduction to marketing: theory and practice. Oxford University Press.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
Cosgrove, W.J. and Rijsberman, F.R., 2014. World water vision: making water everybody's business. Routledge.
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2012. Marketing: an introduction. Pearson Prentice-Hall, London.
Mallen, B., 2013. Selecting channels of distribution: a multi?stage process. International Journal of Physical Distribution & Logistics Management.
Boone, L.E. and Kurtz, D.L., 2013. Contemporary marketing. Cengage learning.
Dawson, J.A., 2014. The Marketing Environment (RLE Marketing) (Vol. 1). Routledge.
Ho, J.K.K., 2014. Formulation of a systemic PEST analysis for strategic analysis. European academic research, 2(5), pp.6478-6492.
https://country.eiu.com/Australia/ArticleList/Analysis/Economy
Competition, A., 2012. Consumer Commission (ACCC)(2012). Benchmarking Opex and Capex in Energy Networks.
Storey, D.J., 2016. Understanding the small business sector. Routledge.
PARTNER, S.C., PARTNER, A., PARTNER, W.B. and PARTNER, L., 2014. Australia Biotech Invest 2013. Australasian BioTechnology, 24(1).
Sevkli, M., Oztekin, A., Uysal, O., Torlak, G., Turkyilmaz, A. and Delen, D., 2012. Development of a fuzzy ANP based SWOT analysis for the airline industry in Turkey. Expert systems with Applications, 39(1), pp.14-24.
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