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Recommendations to Moose Enterprise Pty Ltd - Case Study Example

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The paper "Recommendations to Moose Enterprise Pty Ltd " is a great example of a marketing case study. Humanity has an aggravated desire for music. This emanates from the notion that music is good for the soul and heals the brain. With these in mind, it is apparent that there is a market niche as there is insufficient music equipment developed for children…
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Extract of sample "Recommendations to Moose Enterprise Pty Ltd"

Project Management Executive summary This report intends to delineate a new music device specifically meant for children. In this report, feasible marketing antics such as SWOT, Porters five force model, P.E.S.T.L and 4 ”P” analysis will be discussed seeking to illumine how to propagate market acceptance in Australia. This report will contain introduction, environment scan, product concept, marketing mix, product differentiation, marketing goal, and segmentation. The paper seeks to avail timely and workable recommendations to Moose Enterprise Pty Ltd entailing the best way forward. Table of content Table of content 2 1.0 Introduction 4 1.1 Environmental scan 4 1.2 The organisation 5 2.0 Competitors/industry 6 2.2.1Industry 6 2.2.2Competitor Analysis 6 2.3P.E.S.T.L 7 2.3.1Political 7 2.3.2Economic Environment 7 2.3.3Socio-Cultural 7 2.3.4Technology 8 2.3.5Legal-Regulatory 8 2.4Primary Research 8 3New product concept 8 4Target marketing 9 4.2Segmentation 9 4.2.1Identify segmentation variables 9 4.2.2Profile market segments 10 4.3Targeting 10 4.3.1Evaluate potential segments 10 4.3.2Target market for first year 11 4.3.3Potential market 11 4.4Positioning 11 5Marketing goal 12 6Marketing mix 12 6.1Product 12 6.2Place 13 6.3Promotion 14 6.4Price 15 1.0 Introduction Humanity has an aggravated desire for music. This emanates from the notion that music is good for the soul and heals the brain. With these in mind, it is apparent that there is a market niche as there is insufficient music equipments developed for children. The global music industry estimates annual revenue of US$127.6 million by 2015, while 97% customers are online music buyers. While seeking to acquire more competencies, it is imperative to produce music equipment that will segment the market to satisfy the prevalent children’s demand. Children require a device that will censor the immoral junk aired by other media vehicles. This move is intended to preserve the societal fabric that underpins humanity. In this report, marketing strategies, like SWOT, PESTL, and segmentation choice, are highlighted seeking to attract and maintain children who have salient music related needs. Competitor analysis and market mix strategies are central in aiding market penetration while dealing with new music equipment. This implies that the purpose of this report is to depict the unique features of the children musical equipment, analyze the current market, the internal organization, and allocate the target market to get the marketing goal. In conclusion, this report will avail valuable recommendations that will harness Moose Enterprise Pty Ltd activities in the Australian market. It is worth noting that the report covers a period of one year. 1.1 Environmental scan Information is consequential in any scenario. This is because it harnesses decision-making antics fostering better livelihoods in the foreseeable future. While seeking to identify the most competitive decision, an environmental scan is indispensable. An environmental scan involves the consideration of both present and future factors that will affect the direction and goals of the organization. An environmental scan encompasses both internal and external factors that affect marketing capabilities in an organization. With this information, it is prudent to indicate that, the SWOT analysis will be used to undertake a micro environmental scan (internal organization analysis) while the PESTL theory is usable while undertaking the macro environmental scan (external environment analysis) (Hauser & Shugan, 2008). 1.2 The organisation Moose Enterprise Pty Ltd is a toy manufacturing plant in Australia. The company analysis indicates that there is a lucrative market niche emanating from children’s musical equipments (Rooney, 2009). According to the SWOT analysis (refer to Appendix A), music has innumerable advantages in the life of humanity. Apart from being a source of entertainment, music also teaches children to be disciplined. In the instance that children discover music is a part of their being, they tend to impose strict compliance to instructions hence, enhancing their talents. For example, through music, children are aware of the importance of following their mentors. In such situations, children will more often than not apply this training to be obeying their elders in the societal setting. Music is one of the best hobbies that teenagers engage. Compared to indulging into different computers games, it is much better for teenagers to spend time practicing by singing their song or by playing their favorite instrument. Additionally, if children have the opportunity to perform, they will feel a sense of achievement through the appreciation from others. There is a possibility that children can be inspired to follow the footsteps of their idols; as they can watch popular artists in today’s generation. However, there are some salient limitations or weaknesses including price fluctuations, advertisements, and the most serious threat being the IPod owning about 63% market share. Consequently, when seeking to minimize the organization’s weakness, the threats from external environment require adequate consideration. For this reason, an organization’s strengths are harnessed by considering the opportunities of luring businessperson. 2.0 Competitors/industry 2.2.1 Industry The music industry in Australia generated revenues of $1.21 billion during 2010 financial year in terms of industry output. The revenue is subdivided into venue-based sales, tickets from live performances and food and beverages (Harris, 2009). Of the venue based live music industry is driven by patron spend at live music performances, of which 16.7% was generated from ticket sales to live music performances, with the remaining 83.3% from patron spend on food and beverage. These revenues were generated from an estimated 41.97 million patrons attending approximately 328,000 venues based live music performances at 3,904 live music venues across Australia. In terms of its economic importance, the venue based live music industry in Australia the price-segmented market into different parts to meet customers’ power of consumer (Rooney, 2009). 2.2.2 Competitor Analysis It is notable that music is an ancient form of entertainment. This implies that the music industry has been operated for many years, and the demand music related products is rapidly growing. The main market-share owner is Apple, which has a long history to global business focus producing gadgets like the IPod, ITunes and other music equipments. At the same time, the mobile telephony producers, who indoctrinate musical related facilities in phones, could also be regarded as competitors. The core competence of Moose Enterprise Pty Ltd essence contained in the new Australian Musical equipment is the uniqueness, affordability, and convenience compared to Apple and mobile phone producers. 2.3 P.E.S.T.L 2.3.1 Political It is worth noting that the musical fraternity encompasses the political arena in captivating scenery. Since time immemorial, music, and politics synchronize given the fact that musician perform certain political songs urging nations to embrace peace and cohesiveness. In Australia, there is no significant difference implying that music has a salient political influence (Harris, (2009). 2.3.2 Economic Environment A survey showed that in the last five years, music is maintaining a stable consumption rate where 80% of the populace acquires an album on release while 30% purchase the same after two to three months. For this reason, the economic environment is suitable for organizations to produce musical equipments to share the market with the global conglomerates. 2.3.3 Socio-Cultural Music is a significant socio-cultural development. This is because as the world develops amid numerous dynamics, music offers a radiant resting feeling. Due to the advanced technologies and new demands, the musical fraternity is changing rapidly. Consumer preferences, behavior, product evaluation, and the loyalty to Apple influence consumers’ decisions (Capling, 2009). 2.3.4 Technology Internet plays a momentous role in individual’s lives on a global perspective. The main intention is to make daily life convenient. An Australia statistic indicated that in there are 10.9 million internet subscribers as of June 2011. By December 2012, the number had increased by 14.8%. Given this very influential development, people nowadays prefer shopping online opposed to contemporary methods (Lim, Lee & Tan, 2011). The internet has become a vital marketing strategy for musician and other companies dealing in the vast entertainment arena. 2.3.5 Legal-Regulatory In Australia, as well as other nations, children equipments should contain minimal Zinc elements. This stipulation emanated from harm that begot children using Asian manufactured toys. Geographically, Australia is an Asian country hence, deeply entrenched in these regulations. It is prudent for Moose Enterprise Pty Ltd to ensure that the new product conforms to this regulation ensuring user safety (Harris, 2009). 2.4 Primary Research In order to unearth the consumer behavior of the potential customers, it is necessary to perform a questionnaire. The Children musical equipment Questionnaire (refer to Appendix C) was designed to identify the main competitors and the requirements of potential customers. The questionnaire enclosed ten closed-ended questions, which covered promotion, price, place, product, and competitors. 3 New product concept The new musical equipment has a unique and sleek design encompassing a number of features. The device can sieve unwanted terms uttered by musician safeguarding the morality level of children. Additionally, a single device can be shared between three children. It is worth noting that the musical equipment, though classified under toys is usable by parents when jogging or desiring to keep fit. There is an inadequate level of music information dissemination to children (Laesser, Crouch & Beritelli, 2006). This is because of the fact that there is an inadequate supply of music related instruments. Unlike the yesteryears where parent sang to their children, time for these events is nowadays inadequate. Consequently, the music field is now a mainstream career where children desire certain artists opposed to others. 4 Target marketing The purpose of target marketing is to segment the consumer group and select the potential target market, which includes segmentation, targeting, and positioning in this part. 4.2 Segmentation Market segmentation is a vital antic that steers the growth and development of a new product. This technique involves an analysis of population demographics. Market segmentation variables define how a demographic is segmented and categorized. When seeking to gain successful market penetration of the new product, it is indispensable to analyze the segmentation criterion. This part seeks to profile market segments and market segmentation variables will be analyzed. 4.2.1 Identify segmentation variables Segmentation variables have salient characteristics that determine whether the specific individuals, groups, or organizations are feasible or potential consumers. In a broad-spectrum segmentation, variables can be divided into demographic, psychographic geographic and behavioral variables (Hayward & Orrock, 2009). The correct market segmentation incorporates prioritization while selecting the necessary variables. First, income is a significant segmentation method as this new device focuses on the middle and low income groups. Secondly, age is another variable, because there is a dire need to safeguard the morality of children in their formative age. This implies that the device will have censoring abilities seeking to negate any bad influence imposed on children. Life customs will be another criterion that will aid the market segmentation (Rooney, 2009). This is implies that the individuals holding on to religious believes will be interested in the new device. 4.2.2 Profile market segments In terms of the new music device, potential segment groups (refer to Appendix D) include children, religious people, and executive. First, businesspersons have high incomes enhancing their ability to focus on life quality; hence can afford superior equipment that retails exorbitantly. Moreover, the high pressure of their work requires a suppressing agent that will entertain them as well as divert their attention to other modalities of life. This element will attract business magnates and the religious folks into acquiring the new device. Finally, children who desire the presence of music related toys will yearn to acquire the new device (Prakash, 2002). 4.3 Targeting 4.3.1 Evaluate potential segments According to the segmentation part (refer to Appendix E), the organization selected three segments seeking to rank each of them. As evidenced in the table, the first group entails children, aged between 7-20 years. It is worth noting that this age group represents the dependent citizens who do not have a stable income. Moose Enterprise Pty Ltd targets this consumer category entirely. However, the new music device will not conform to this limitation, as it will be usable by the business fraternity and religious individuals. For this reason, the second group is the religious folks aged between 25 – 45 years. The third group encompasses business personalities aged between 30 – 55 years of age. Tentative research indicates that in the wake of immoral music production, children bear a significant blunt as their lives are corrupted at tender ages. This warrants urgent redress and Moose Enterprise Pty Ltd hopes to rectify this anomaly (Bass, Krishnamoorthy, Prasad & Sethi, 2005). 4.3.2 Target market for first year According to the ranking in the potential segment group, Moose Enterprise Pty Ltd chooses the first segment to target in the first year. This is because children aged 7 – 20 years diligently listen to music and have sufficient reasons at their disposal to convince their parents or guardians to acquire the device on their behalf. The elderly in society have the ability to distinguish between a reliable device and a device that does not amount to significant worth. The new music device is self-explanatory and its advantages require insignificant explanation. In addition, the higher income earners will derive the urge to acquire the device from evidenced change in children in the Australian society (Lim, Acito & Rusetski, 2006). 4.3.3 Potential market The potential market for the new device targets children. Australia is a developed economy that has reduced mortality rates. This implies that the country has a sizable number of children aged between 7 – 20 years. Additionally, Moose Enterprise Pty Ltd is a key player in the Australian toy market. For this reason, the Moose Enterprise Pty Ltd will engage in minimal advertisement endeavors, as consumer loyalty is evident. 4.4 Positioning The positioning relates to how the target market considers the services and the production compared to the other company’s offer. Consumers have their own desires of what they want. For this reason, with the positioning of each target segment, it plays a significant role to make the suitable strategy to sell the specific productions. The new device is a necessity targeting children who require musical nourishment (Chaston & Mangles, 2006). Additionally, the business executives and religious individuals require the device on a daily basis seeking to reduce work or life related pressures through music. 5 Marketing goal To make a reasonable marketing goal could develop of the marketing mix. First, the goal is to own 10%-30% of the Australian market shares in the first year. It is imperative to advertise the new music device, through free samples to the children in strategic locations. Additionally, lucrative commissions to sales people would aid advanced market share in shorter periods. For Moose Enterprise Pty Ltd to penetrate the market easily, corporate social responsibility is vital through children related programs (Prakash, 2002). Consequently, the second goal is to increase 50% sales in the second half of the first year through these kinds of advertisements. 6 Marketing mix 6.1 Product In essence, a product good idea, or service, that includes salient tangible and intangible attributes, to satisfy potential customers and to exchange for money or other value. The new music related device in this report is a tangible product. In-depth product analysis harnesses decision making by relaying critical information to consumers (Meyer & Thutran, 2006). This section seeks to illumine the products layers, product elements, product classification, branding and service support features that will aid appropriate marketing strategies. Product layers identify the prevalent core product, the augmented product, the expected product, and the potential product. Product layer aids in determining the viable marketing strategies to own more market shares. According to Appendix F, the core product of the new music device is the fact that it can censor ill or immoral words. In terms of the expected product, the pictures of device indicate a cartoon like feature dancing to music. The augmented product should be designed to extend music dissemination to the Australian children who direly require the product. While seeking to attract consumers, the branding of the new music device should reveal a more trustful and valuable product (refer to Appendix F). Furthermore, the value adding services, like free user advices through retailed shops, websites and emails, could give consumers more confident about the new device. Additionally, free after sales services will also lure clients enhancing extended attractiveness. As a result, in the retailed shops, staff or sellers should be trained with the professional knowledge. 6.2 Place Place and distribution are vital elements in marketing as they ensure that products are availed in the appropriate time and place (Czencz & Hayward, 2007). With the prevalent high-pressure levels emanating from competitors, the suitable distribution channel is “producer – retailer - consumer” because 62% of children related toys are distributed by the organization. Given to the product’s classification that the music device falls under, intensive distribution is a more effective model. In this distribution channel, general-merchandise retail stores are the most important aspects (Unknown Author, 2005). After that, specialty retailers, dealing in children products are viable places to sell the product with the advantage of professional and persuading advice. Moreover, shopping online increases significantly which include 82% internet users in Australia purchasing good or services online six months to April 2011 and in all the internet orders, clothing, shoes and personal items contributes74% sales six months to April (London, & Hart, 2004). This reliance on internet services is evidenced by the sheer fact that music is downloadable via the internet requiring a device that can accommodate all these features. For this reason, selling the device online has a colossal market and it is useful to extend the market shares for the new product. In terms of the time utility, the websites and the free calls for consultation on usability and availability could be available for 24 hours and 7days, and this value adding services could attract consumers. 6.3 Promotion The promotion is a communication to persuade or influence the consumers’ decisions. To meet the major goal of sending consistent messages to customers, the integrated marketing communications (IMC) is an effective way, which also can manage customer relationships to enhance the communication effect (Meyer, & Thutran, 2006). There are four main elements in this promotion mix, which are advertising, public relations, sales promotion, and personal sales. Given the nature of the device, the pull policy will be practical. This policy is defined as an approach that promotes products to the consumers incorporating aggressive advertising, personal selling, and public relations. In Australia, the advertising market increased 13.7% last year reaching $12.4 billion. In the advertising market, the online advertising industry plays a significant economic role due to the government’s purpose of making Australia to be one of the leading digital economies by 2020. In the 2010/2011 financial year, the online advertising expense of in Australia was $2.456 billion. For this reason, Moose Enterprise Pty Ltd should focus on the online advertising with a playful child listening music (refer to Appendix I). While seeking to maintain upbeat competitive advantage, Moose Enterprise Pty Ltd should advertisements via child-play magazines, and parent like magazines seeking to maintain a professional impression (Oppermann, 2007). When relying on personal selling, the websites and free calls mentioned in the previous section can be used to collect vital feedback relating to the new product. Additionally, information relating to customer needs can also be availed. Furthermore, with the email that could both benefit the personal selling and public relations, Moose Enterprise Pty Ltd can send the regular questionnaires or surveys to keep contacting with consumers and justify the integrated marketing communication strategies to meet the clientele requirements. 6.4 Price Price is the utmost factor that contributes to a product’s viability. It is a definite quantity or measurement to purchase a product or service. It is worth highlighting that all available pricing approaches consider competitors, customers, and costs when settling on a decision. To determine the price of a new product, there are three major dimension to base prices, which are demand-based pricing, cost-based pricing and competitive-based pricing. For the new music device to attract consumers, price has to be competitive. For this reason, the competitive-based pricing, which compares the competitors’ price, in availing a suitable price is recommendable. Conversely, in the long run, the price should be justified by the actual producing costs and consumers’ feedbacks (Oppermann, 2007). Apple is the main competitor that avails IPod devices in the global market. The only difference between apple and the Moose Enterprise Pty Ltd new device is the fact that it has censoring abilities ensuring children’s moral perspectives is spared. In the wake of media immorality and other ill behaviors, the new device has a salient competitive advantage over the international company. Additionally, since Apple exports their products from the America, freight expenses and insurance costs are diverted to the end user. This makes the product exorbitantly expensive. In the contrary, Moose Enterprise Pty Ltd will produce the device locally, incurring cheaper production, marketing, and distribution expenses. Eventually, the price diverted to the end user by Moose Enterprise Pty Ltd will be competitive and affordable to parents and businessperson (Slater & Olson, 2001). 7.0 Recommendation It is evident that there is insignificant competition in Australia for the new music device. In the event that everything falls into place as in the forecast, market share will ultimately grow in the second year of operation. In light of these sentiments, price justification will not be a problem as Moose Enterprise Pty Ltd has established consumer loyalty. Additionally, Moose Enterprise Pty Ltd will seek to ensure that the music device synchronizes appropriately with the needs off everyone in society. This move will expand the consumer base encompassing the Australian multitude. Finally, Moose Enterprise Pty Ltd should maintain aggressive advertising and public relations. References Bass, F. M., Krishnamoorthy, A., Prasad, A., & Sethi, S. P. (2005). Generic And Brand Advertising Strategies In A Dynamic Duopoly. Marketing Science, 24(4), 556-568. Capling, A. (2009). The Conundrum Of Intellectual Property Rights: Domestic Interests, International Commitments And The Australian Music Industry. Australian Journal of Political Science, 31(3), 301-320. Chaston, I., & Mangles, T. (2006). Small business marketing management. Houndmills, Basingstoke, Hampshire: Palgrave. Czencz, I., & Hayward, P. (2007). Calling The Tune: CD-ROMs And The Australian Music Industry 1995-96. Convergence: The International Journal of Research into New Media Technologies, 3(1), 90-99. Harris, M. (2009). The Australian Music Industry, Copyright Protection, And The Prices Surveillance Authority. Economic Papers: A journal of applied economics and policy, 11(1), 57-69. Hauser, J. R., & Shugan, S. M. (2008). Defensive Marketing Strategies. Marketing Science, 2(4), 319-360. Hayward, P., & Orrock, G. (2009). Window Of Opportunity CD-ROMs, The International Music Industry And Early Australian Initiatives. Convergence: The International Journal of Research into New Media Technologies, 1(1), 61-79. Laesser, C., Crouch, G. I., & Beritelli, P. (2006). Market Segmentation By Reasons And Influences To Visit A Destination: The Case Of International Visitors To Australia. Tourism Analysis, 11(4), 241-249. Lim, G. H., Lee, K. S., & Tan, S. J. (2011). Gray Marketing As An Alternative Market Penetration Strategy For Entrepreneurs. Journal of Business Venturing, 16(4), 405-427. Lim, L. K., Acito, F., & Rusetski, A. (2006). Development Of Archetypes Of International Marketing Strategy. Journal of International Business Studies, 37(4), 499-524. London, T., & Hart, S. L. (2004). Reinventing Strategies For Emerging Markets: Beyond The Transnational Model. Journal of International Business Studies, 35(5), 350-370. Unknown Author. (2005). Market Watch. Nature, 435(7041), 411-411. Meyer, K., & Thutran, Y. (2006). Market Penetration And Acquisition Strategies For Emerging Economies☆. Long Range Planning, 39(2), 177-197. Oppermann, D. M. (2007). Regional Market Segmentation Analysis In Australia. Journal of Travel & Tourism Marketing, 2(4), 59-74. Prakash, A. (2002). Green Marketing, Public Policy And Managerial Strategies. Business Strategy and the Environment, 11(5), 285-297. Rooney, D. (2009). The Knowledge Gap: A Perspective On Trade, Industry, Technology And Policy From Pre-war Australian Music Technology Manufacturing (1903-30). Australian Journal of Political Science, 34(2), 223-238. Slater, S. F., & Olson, E. M. (2001). Marketing's Contribution To The Implementation Of Business Strategy: An Empirical Analysis. Strategic Management Journal, 22(11), 1055-1067. 8.0 Appendices Appendices A: Favorable Unfavorable Internal Strength Avails moral information by censoring unwarranted terms Affordable in price as readily available materials are used Suitable for children Weaknesses more advertising required awareness campaigns are essential to notify the masses on the unique feature External Opportunities the product is usable by other societal members exporting the product is a lucrative venture Threats customer loyalty advertising is costly competitor can easily advance technologically Appendix B: Questionnaire SECTION A PERSONAL DETAILS (These details are required for communication purposes only and will not be disclosed) NAME: POSITION: TELEPHONE: QUESTIONNAIRE INSTRUCTION To simplify on data analysis, this questionnaire has been prepared in such a way that it can be dully completed as it adopts an electronic format. Question 1.1 – The response should be filled in the spaces provided Questions 1.2 to 1.4 – The TAB keys will be used to add any new lines Questions 1.5 and 1.6 - Rate the services by ticking the appropriate box. _________________________________________________________________________ CURRENT INFORMATION ACQUISITION, USE, AND GENERATION Your responses to these questions will provide data relating to the types of information that you use to perform your tasks. It will also provide data that will enable the mapping of information flows within the organization and between the organization and external environment. _____________________________________________________________________ Age: Under 12 13-20 21-40 41-65 Gender: M / F SECTION B 1. Are you fond of listening to Music on a daily basis? Yes No If yes, how many times a day? Over 3 2 times 1 time If not, how often? 2days other: _______ 2. What kind of music instrument are you using? IPod Moose Enterprise Pty’ device TV CD-ROM Other: ________________________ 7. How often would you buy the toys? (Please choose one) 1-3 weeks 1 month 2-3 months 4-5 months over 6 months 8. How much did you spend on a musical product for your child? Less than $3 $4-5$ 6-7 More than $8 9. Where do you usually purchase children toys? Moose Enterprise Pty Apple Other: _______________ 10. How did you know about the product? Magazine Newspaper Internet TV Friends/Family Other: _________________ KIND REGARDS FOR YOUR PARTICIPATION, Moose Enterprise Pty Appendix C: Potential Segment Name Segment Profile Children Moral musical content, 7-20 years old Business Executives Musical refreshment, 25-50 years old Religious individuals Moral music , 30-55 years old Appendix D: Ranking Potential Segment Name Justification 1 Children Require musical nourishment that is not morally corrupt, 7-20 years 2 Business executives Desire refreshment, 25-45 years old 3 Religious individuals Want sieved information, 30-55 years old Appendix E: Appendix F: Read More
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