MKT10009 Marketing and the Consumer Experience -Business Report

Part 1. Target Market Analysis

In Assignment 1, you conducted a small market research project that resulted in three simple personas: representations of consumers with certain characteristics. Now, in Assignment 4 you must treat these personas as exemplars of typical segments instead of individuals.

Cut your Personas from you Assignment 1 and paste them into an Appendix (Appendices are not counted in the Word Count). Then complete the Table below and refer the reader to the Persona details in the Appendix.

You should add more details of their characteristics and behaviour using your own research (e.g., using Australian Bureau of Statistics census data, industry analysis, and/or segmentation reports).

You must show how you have compared and assessed their attractiveness as markets for the new product by using each of the following criteria:

1. The fit of the segment with the brands identity/positioning
   Your brand offers certain products using a certain identity/positioning. In some ways strong brand identities are good, but it can be limiting (e.g., imagine if Apple launched a vacuum cleaner it would not fit with the Apple brand. And yet Samsung can launch a vacuum cleaner with no damage to their brand). Which of the segments are most likely to respond to your brands identity, or do you want to risk it and use a new/multi-brand strategy?
2. Size and growth
   How large and lucrative are these segments? What are current market factors influencing these segments? A large, fast-growing segment may be good, but would they have the willingness to pay? It may be better to target a small, niche segment if it means the potential to yield a higher margin.
3. Structural attractiveness
   Can we communicate with this segment effectively? Can we deliver to these segments effectively? Are stronger competitors already serving them?

Your attractiveness analysis will utilize all relevant theories and frameworksyouve learned throughout the semester. In addition, for a Higher Grade,provide credible datasuch as census reports, industry reports, databases, and academic references where appropriate. Conclude by clearly statingwhich persona you have chosen to be your target market segment.

IMPORTANT:If one of your three created persona (in Assignment 1) is very similar to your brands existing persona (from Assignment 2), then that persona is automatically disqualified from consideration for extension. We are looking to serve new consumers, not duplicate what is already being served by the brand.

Part 2. Brand Extension and Product Strategy

You will be extending the product you developed in Assignment 2. Show how you are using one of the four brand extension strategies(see below) to create a new product thatwill satisfy the needs of your target.

Fig 2. What strategy will you choose, and why?

Example: Milo decides to target the segment of users over 60 years of age. They could use one of these strategies:

• Line Extension
  If they think the brand name Milo can cross generational boundaries, then they can just launch smaller cans (more suitable for single and couple households with no children present in the home).
  This would be an additional Milo branded product within the same category.
• Brand Extension or Category Extension
  The Milo Brand Manager thinks that the Milo brand is strong and elastic enough to be stretched into a new category and product using the Milo brand so they entered into the breakfast cereal category launched Milo Breakfast Cereal.
  This is a Milo branded product in a new category.
• Multi-brands
  If Milo is seen as too synonymous with young kids or teenagers (e.g., their tagline is Gives Your Kids More!), then the company (Nestle) might instead launch another chocolate and malt powder product but brand it as Nestle Sustain.
• New Brands
  If Nestle decides to not contaminate the Milo target market andgive new benefits, they might launch Nestle Sustain chocolate-flavoured chewable tablets with added calcium and other nutrients for older people.

Finish this section by describing the product you are going to offer to your target segment. Show your new product in the three levels framework - core, actual, and augmented (Week 6).Include brand elements and brand personality (Week 10).

Part 3. Competitor and Positioning Analysis

Your task is to:

• Research the marketing mix of these competitors. Then present them in a brand positioning map (Week 5). Make sure you show where your new productis positioned on the map.
• Then, using this brand positioning map and thinking about the characteristics of the target market, formulate a positioning strategy, develop a brand positioning statement(Week 5)and value proposition (see diagram below). Show how your Positioning links to the needs and characteristics of your target persona.What will be your strategy to build that positioning in the consumers mind? Use the concepts of brand equity and brand relationshipsto show how you will develop your brand.

Fig 3. What value proposition will you choose, and why?

Part 4. Marketing Mix

Now that you have chosen your target segment and decided upon your Positioning you need to create a Marketing Mix to implement and communicate your new product to them. Demonstrate application of theoryfrom the Unit materials when you explain Mix details.

• Place. Will you use distributors (Intermediaries)? Will you use retailers (online and/or bricks-and-mortar)? If yes then how do you want them to display and promote your new product? (Week 7).
• Promotion. What key messages/themes will you use? (Week 8).They should be a creative way of communicating your Positioning.
  Where (which media), during what times (media vehicle matching?
• Recommend and justify a price using one of the pricing strategies (Week 9).
  What can your target segment afford?
  What do you think they would be willing to pay?
  Are you proposing any payment strategies and/or financial partnersinvolved?
• Refer the reader to Part 2,where you described your new Product. Then, if you have additional ideas, put them here.

Your marketing mix plan should bestrongly grounded by your understanding of the target market and why it would be effective.