Marketing Plan For PROTECTA: Introducing The Quad

Background of PROTECTA and the Quad

Qustion:

Discuss about the Importance-Performance Analysis For The Leading.

Developing a marketing plan is essential document for bringing the products and services to the marketplace. It includes several processes and practices, which are required to introduce among people and make them aware about specifications of their products. Under this plan, an organization creates and implements effective strategies and tactics, so that it can approach its targeted customers. The major objective of this report is to develop a marketing plan document for the given organization, i.e. PROTECTA that is offering smartphone accessories in Australia. To deal with the competitive forces in the industry, this organization has introduced a new and unique product, i.e. Quad.

The report includes current market situation of the company along with its competitors, target market segment, market and customer needs and unique features of company’s new product. In addition to this, there is the discussion about the SWOT analysis of PROTECTA. It describes the objective of company by using SMART objective framework. Furthermore, the report comprises of different marketing strategies such as; product, pricing, positioning, promotion, distribution and marketing communication strategy. At the end, there is an action plan, which state different actions and time frame for these activities. The effectiveness and success of this marketing plan can be evaluated by using different tests. Moreover, the firm will also create a contingency plan to deal with different positive or adverse situation in future.

PROTECTA is an Australia organization that is engaged in selling smartphone accessories. This organization import their materials and good from China country and package them in Australia. PROTECTA was established in the year 2002 in Melbourne by its managing director, Allen Chen. The company has introduced various products under its range of smart phone accessories. In the 2013, the revenues and profits of company have been decreasing because of competitive pressures. In this duration, the organization has been planned to introduce new and unique products (Wilson, 2010). Under its new product range, it has introduced new and unique product, which does not exist in the market. Quad is it new brand of the products that includes the products with innovative and unique attributes, which are not available in consumer electronics market.

Conducting a market situation analysis is one of the most significant processes in recognizing any research issue. This analysis will include the most obvious and best description about the current situation of market space. Current market situation analysis for PROTECTA organization is stated below;

Before promoting a product into market, it is very important to consider different characteristics of customers and target a specific market segment according to their needs and demands. Target market is a specific group of customers in a serviceable market of business, which the company has determined to target for its market efforts. In Australia, PROTECTA organization is offering smartphone accessories to fulfill the needs and demands of smartphone users in Australia. Under its new brand, the company has offered headphones with unique features (Babin, & Zikmund, 2015). To offer these products in market, the company will target customers by considering their specific segmentation characteristics, i.e. demographic, psychographic, behavioral and geographic characteristics. Target market and segmentation for PROTECTA is stated below;

Market Situation Analysis

Demographic Segmentation is one of the most common types of segmentation among advertisers. In this segmentation, the marketers divide the customers on the basis of age, gender, income, occupation, family size etc. Under this segmentation, PROTECTA is focusing on both teenagers to early adults (14 to 25 years) and adults (26 to 50 years). The headphones are available for every family size and can be purchased by both upper and middle class people. The demographic segment of the company is very wide as most of the people are becoming technology savvy.

Geographic segmentation divides the market customers on the basis of geography and location. This type of segmentation is significant for the companies because customer from different locations may have different needs. For its new headphones, PROTECTA will target the customers in both urban and rural areas of Australia. In addition to this, it will plan for expanding its business to neighboring nations such as; New Zealand (Barney, 2014).

Under behavioral segmentation, the market is divided on the basis of behavior, preference, usage and choices of customers. The market is segmented by their usage and knowledge about the product. For Quad brand, PROTECTA is targeting different users such as regular users and first time users. The company is looking for the brand loyalty in the market. This is also a major variable to target the people for PROTECTA’s new brand headphones.

Psychographic Segmentation is the process of dividing the customers based on their lifestyle, personality and attitudes. It works on the basis that buying behavior of customers can be affected by his lifestyle and personality. PROTECTA is targeting the people on the basis of their lifestyle. The people with sporty and professional lifestyle are targeted for its new wireless headphones. In addition to this, it is aiming at sophisticated shoppers and girls, which are interested in buying the products in different colors. PROTECTA’s new brand Quad is offering the headphones in three colors, i.e. black, white and red (Davcik & Sharma, 2015).

In today’s business environment, smartphones have become most important device for all the needs and demands of people. It has become essential in every area of life like; work, study, fun and travelling. No smartphone is perfect without accessories. These accessories are designed to increase the capability or eliminate the limitations of smartphone. In the smart phone accessories market, it is estimated to generate $107 billion by the year 2022 (Sukhija, 2017). These accessories assist the users in enhancing their user experience with smart phones. Today, smartphones are prepared with the different functions like clicking images, listening to music, accessing the internet and saving data. So, customers enhance and improve the worth of their smartphones with the assistance of accessories such as headphones, protective cases, USB cable, portable speakers, power banks, selfie sticks and memory cards. The major factor that increases the customer needs and market growth is the increase in usage of smartphones in both urban and rural areas. Due to increased connectivity to digitized world, adoption of smartphone is increasing among Australian population. Furthermore, wireless headphones provide several benefits over wired headphones like convenience, efficiency, portability, flexibility and cost-effectiveness. This demand for accessories has enhanced due to increase in the disposable income and development of social media sites in Australia (Deloitte, 2015). Thus, the needs of consumers are increasing for this sector and they are availing various benefits by using these smart phone accessories.

Target Market Segmentation

To deal with competitive pressure and overcome the declining revenue situation, PROTECTA has launched its new products with unique attributes. Under its Quad brand, it includes new products, i.e. headphones with four earpieces that enable two persons to listen music together. The company is introducing 4 different types of products under this brand, i.e. wired in-ear headphones, wireless in-ear headphones, wired over-the-ear headphones and wireless over-the-ear headphones (Genakos, Valletti, & Verboven, 2018). Each and every product of this brand is available in 3 colors, i.e. black, red and white. PROTECTA has introduced the products, which do not exist in consumer electronic market.

In year 2013, the market position and revenue of PROTECTA Organization were affected due to its competitors and their effective strategies (Chen, & Ann, 2016). To overcome the issue of competitive forces, the organization has introduced a new brand with the name “Quad”. The competitors of PROTECTA along with their strategic position and strategies are listed below:

Key Competitors	Market Position	Strategy
Apple	Multinational technology company and premium brand products	Product Differentiation Strategy
Samsung	Creative technology products providers on affordable prices	Cost Leadership Strategy
Telstra	Strong position in mobile market share	Customer advocacy strategy

SWOT Analysis is a tool of strategic planning, which assists a company to identify its strengths and weaknesses and any opportunities and threats, which may exist in a particular business situation. PROTECTA is working in smart phone industry and facing intense competition from other players (Ryke, van Eeden, Koen, & Bain, 2015). For this company, it is essential to analyze its strengths, weaknesses, opportunities and threats. SWOT analysis of PROTECTA Organization is stated below;

Strengths are the major attributes of the company, which supports it in attaining its objectives and goals. Operating business in smartphone accessories industry, PROTECTA organization has various strengths, which assist it in achieving its business goals (Genchav, 2015). The major strengths of the company are stated below;

One of the major strengths of PROTECTA Organization is increase rate of internet penetration. In today’s modern scenario, it can be seen that social media has dominated the lifestyle, marketing and consumerism. In the year 2018, more that 80% of the Australian people are actively using internet and social media sites (The Statistics Portal, 2018). Increase in the internet penetration has grown the online retailing platform for PROTECTA organization. The products of company are also available on internet and online platforms, so people are actively purchasing its headphones and other smartphone accessories (Jain, Seshadri & Changulani, 2017).

In today’s business environment, there is an immense growth in the technology and PROTECTA has the capability and sufficient resources to utilize updated and latest technology. By using this, the company is offering new and unique features in its mobile accessories. For example; it has offered a new headphone under its Quad brand. These new headphones are available with four earpieces, which allow two persons to listen music together. With the introduction of this new product, the company is trying to become very innovative and exclusive in smartphone accessories market. In addition to this, noise canceling technology is offering various growth opportunities to PROTECTA.

Product Differentiation is the process of marketing the similar products and services with some variations, which are utilized by the customers while making a choice. It is the process that displays the differences between different products of competitors. It makes the products more attractive by using more unique features and qualities than its competitors (Kipley, & Jewe, 2015). PROTECTA is going through product differentiation and differentiating its headphones by providing two earpieces. The sportsman and business professionals prefer to use wireless headphones. Product differentiation will assist the organization in gaining more competitive advantage over its competitors.

Marketing Strategies

Weaknesses are the factors, which have an adverse effect on the growth and progress of a company. There are some weaknesses of PROTECTA, which affected its growth and declined its revenues and profits. These weaknesses of the company are given below;

In Australian smartphone industry, there are various local and international players such as Apple, Samsung and Telstra, which are offering the smartphone accessories, like; headphones, Bluetooth, cases, USB cable, portable speakers, power banks etc. This is the major reason behind the decrease in revenues and profits of company. PROTECTA is unable to reach to the level of these competitors and they have more brand image and reputation than PROTECTA (Klingebiel, & Joseph, 2016).

One of the major weaknesses of PROTECTA is that this company is not able to provide the services to the customers as it committed in the promotion process. So, customers are dissatisfied with PROTECTA’s products and services and they switched to its competitors. The company has offered a new product, but people are not aware about these new products. So, company needs to focus on increasing its brand recognition and presence.

This industry is very different from traditional sectors, like retail, food, so it is very difficult to estimate and control. The profits and sales of organization depend on the number of accessories sold. It depends on the interest of people and usage of headphones and other mobile accessories (Kotlar & Armstrong, 2012). Thus, the sales and revenues of PROTECTA are unstable in smartphone accessories industry.

These are the external conditions, which can assist the organization in attaining its business and marketing objective. In Australian market, PROTECTA has various opportunities in the future. These opportunities are stated below;

Business expansion is one of the foremost opportunities for PROTECTA organization. Smart phone and smartphone accessories market is very wide. Nowadays, each and every person uses mobile phones except children. Currently, this organization is operating its business in Australia, so it can expand its business in new countries, like; New Zealand, United States and United Kingdom. It will assist the organization in enhancing its brand presence and revenues. In this way, business expansion is one of the major opportunities for this organization (Kotler, Brown, Burton, Deans & Armstrong, 2013).

Due to development of technology and innovation, there is a significant growth in the smartphone industry. PROTECTA Organization is using modern and updated technologies and upgrading its smartphone accessories by including unique features. For example, it is providing the headphones with four earpieces. In future, the company is making efforts to make innovation and usage of new technologies, so that it can attract large customer base in Australia and increase its sales of smartphone accessories.

Along with the market expansion, the company may have the opportunities of diversifying its product range. In addition to smartphone accessories, it can expand its product in different smart devices such as smart watch and other related products. By doing this, the company will be able to capture a large market share in smartphone industry in Australia (Kotler, 2015). Thus, these opportunities will assist the organization in gaining competitive advantage and regaining its brand image in the country.

Action Plan

Threats are the external conditions and factors, which challenges the growth of company and affects its position in the industry. PROTECTA Organization is facing various threats, which had adverse impact on it sales and revenues in smart phone accessories market. These threats for PROTECTA are stated below;

Competition is one of the major threats for PROTECTA Organization that is affecting its revenues and profits in the country. Since 2013, the revenues of company have an adverse impact due to competitive forces. There are various local and international players, which have affected its business adversely.

Due to above threat of competition, there was a significant decline in the revenues and profits of PROTECTA. It has reduced its customer base and brand image in the smart phone accessories industry in Australia (Kurokawa, & Matsubayashi, 2018).

Sometimes, this organization is unable to deliver the products on time. These mobile accessories are very much relied on import from China. When there is a public holiday in China like; Chinese New Year, it may cause delay in customs. It will cause the shortage in material and leave the customers dissatisfied. 

To develop marketing plan for Quad, PROTECTA will establish some marketing objectives for its new headphones. The foremost objectives of the company are given below;

• To become a leading player in world smartphone accessories market
• To increase its revenues and profits with a significant percentage
• To capture a significant market share in the industry

Competition is the major issues that can affect outcome of the first objective of PROTECTA. Apple is one of the major players in mobile industry that is very popular for its quality product offerings. It can create competitive pressures on the growth of this company (Mongay, 2006). Changes in the market conditions can affect the revenues and profits of the company. Decrease in the customer base may have large impact on market reputation and ultimately it will affect the market share of organization.

The above objectives of PROTECTA are very specific because it will offer this new brand, i.e. Quad including the quality standards. It will manufacture these products by including new and unique features. It will focus on the interest and expectations of the customers towards smartphone accessories.

These marketing objectives are totally measurable. These can be measured by considering the sales and number of headphones sold in Australia and worldwide. In addition to this, it will look at the interest of targeted population for its Quad brand.

The company is developing its strategies, so it can achieve its each and every objective. PROTECTA will develop these products by using modern technologies and high quality materials. By dealing with the issues, the company can attain its objectives easily (Mullins, Walker & Boyd, 2012).

This organization will develop and implement some effective strategies, so that it can make its objectives realistic. The company believes that by establishing this new brand, company will be able to attain it objectives.

For achieving the above written objectives, PROTECTA will create a timeframe of three years. Under this timeframe, it will practice its all the activities to increase its customers and regain its revenues growth as earlier (Oh, & Oh, 2017).

To attain the objectives, the company will develop a time frame that will include all the activities and processes for attracting the customers towards its new products.

Contingency Plan

Marketing Strategy

The major positioning strategy of PROTECTA organization is to offer higher quality products, so that it can fulfil the needs and expectations of customers towards smartphone accessories (Roda, Michelini, Zangheri, Di Fusco, Calabria & Simoni, 2016). The company will position its headphones in an effective way, which will set a positive image in customers mind that company is continuously redesigning and launching new and unique products. In the future, company will make investment in business expansion and product diversification.

PROTECTA is offering new and innovation product, i.e. headphones with four earpieces that enable two persons to listen music together. The company is introducing 4 different types of products under this brand, i.e. wired in-ear headphones, wireless in-ear headphones, wired over-the-ear headphones and wireless over-the-ear headphones. These headphones are available in 3 colors, i.e. black, red and white. These products are not available in the consumer electronic market. Thus, the company is offering its products with advanced and unique features (Jain, & Haley, 2009).

As PROTECTA wants to become a leading player in smartphone accessories market, so it will implement an effective pricing strategy. It will use two types of prices such as; competitive and skimming prices. Under skimming prices, the company will launch its headphones on higher prices, but it will lower its prices with the emergence of its competitor with similar products (Ryan, 2016).  Under competitive pricing, it will change its prices by looking at the prices of competitors. Thus, the company will use a flexible pricing policy for Quad brand.

PROTECTA Organization is adopting effective distribution and marketing channels to approach the targeted population in the country. It is using indirect channels of distribution, because it uses retailers and wholesalers to deliver their products to customers. In the future, the company should use online platforms to get its products to customers (Carpenter, 2015).

Promotion and marketing communication strategy is one of the most significant strategies, which can be used by PROTECTA organization effectively. It is the foremost strategy that can be used to approach and attract the targeted audiences. To promote its products, the company will use both modern and traditional media sources. Under traditional media, it will promote its products through television ads and radio ads (Andrews & Shimp, 2017). In addition to this, online media can play an important role in the process of marketing communication. Under this, the company can use social media networking sites such as; Facebook, Instagram, Twitter etc. It can create a page on Facebook and Instagram and post the pictures of headphones along with its unique specifications. In this way, the company can communicate its brand message to potential customers. Apart from these ways, PROTECTA will give some discounted offers to its regular customers.

After the preparation of marketing plan for Quad, PROTECTA Organization will execute this plan by creating an action plan (Shankar, Kleijnen, Ramanathan, Rizley, Holland & Morrissey. 2016). This action plan includes four actions, which will be taken by the organization in timeframe for next 2 years. The action plan for this company is stated below;

Time	Action	Time Frame
Now	Conducting a market research and understand the needs and expectations of customers	1-4-2018 to 1-10-2018
In 6 months	Introduction of new headphones in Australia	1-10-2018 to 1-4-2019
In 1 year	Evaluation of effectiveness and performance of this marketing plan and new product	1-4-2019 to 1-4-2020
In 2nd year	Product innovation and business expansion	1-4-2020 to 1-4-2021

Thus, the company should go under the above-mentioned actions and develop the strategies accordingly. These actions are essential to attain significant growth in smartphone accessories market in Australia. After completing one year, the company should plan to expand its business in international market by using technology and product innovation. In this way, PROTECTA can implement its marketing plan in practice (Siguaw, & Simpson, 2015).

To monitor and control the success of product, profit margin, Profit and Loss and sustainability budget, PROTECTA Organization will adopt two different tests, i.e. profitability control test and feasibility analysis. These tests assist the organization in evaluating and establishing the success of its new products and other financial statements. These tests for the company are given below;

By the use of this test, PROTECTA Company will measure the profitability of its new headphones, targeted audiences, and market segments, distribution channels to assist in decision making process whether the company should continue with this plan or add and eliminate some specific features in the products. Under this process, marketing controller and other related personnel play an important role to test the success of new products (West, Ford, & Ibrahim, 2015). It will examine the market situation of company that whether it is making money or losing the market.

In addition to above test, the company will use financial feasibility analysis that will assist PROTECTA in assessing its financial aspects such as budget, profit and loss, profit margins and sustainability. In the case of PROTECTA’s new brand, the company will establish a budget for launching its new products and consider revenues, profit margins and income from investors. By the use of this test, company will establish its profit and loss account, which will be feasible for the success of this marketing plan. The profit & loss statement of the company is given below;

Profit & Loss Statement

PROTECTA Organization
Profit & Loss Statement
	Amount ($)
	1st Year	3rd Year	5th Year
Sales	$575,000	$625,000	$800,000
Miscellaneous income	$0	$62,500	$80,000
A. Total	$575,000	$687,500	$880,000
B. Cost of Sales	$230,000	$343,750	$440,000
C. Gross Profit (A-B)	$345,000	$343,750	$440,000
D. Operating Expenses
Salary	$10,000	$10,500	$11,025
Rent	$12,000	$12,600	$13,230
Utilities	$1,000	$1,050	$1,103
Insurance	$500	$525	$551
Depreciation	$70,000	$73,500	$77,175
Marketing	$10,000	$10,500	$11,025
Maintenance & Repairs	$5,000	$5,250	$5,513
Other	$2,500	$2,625	$2,756
Total	$111,000	$116,550	$122,378
Operating profit	$234,000	$227,200	$317,623
Less: Interest	$250	$225	$200
Profit before tax	$233,750	$226,975	$317,423
Less: Tax @ 30%	$70,125	$68,093	$95,227
Net Profit AT	$163,625	$158,883	$222,196

By launching this product, the company is aiming to increase its profit margin and decrease the expenses.

Product Launch Budget

Product Launch Budget
Media Tools	Amount
Web Marketing
1. Facebook	$8,000
2. Twitter	$3,500
Total	$11,500
E-mail Marketing	$1,200
Google Ads	$1,000
Other Online campaigns	$3,000
Total Budget for Online Media	$16,700
Traditional Media
1. TV Channels	$150,000
2. Hoardings	$80,000
Total	$230,000
Events and Sponsorships	$120,000
Public Relations	$ 50000
Total Required Budget	$663,400

By the use of effective strategies, the company will make efforts to make its budget and product sustainable in the market. Using these tests will enable the organization in competitive business environment and gain competitive advantage over its competitors.

Contingency planning is the process of developing plan for a result other than the expected plan. By the use of this plan, PROTECTA Organization will be able to manage any unexpected outcome of the marketing plan. The above marketing plan of the company will be successful because it is adopt various effective strategies and marketing tactics to attract customers towards its new brand headphones. In the beginning, the company will not think about its profit only. It will emphasize on meeting the needs and expectations of customers (Truong, Klink, Simmons, Grinstein, & Palmer, 2017). For identifying the effectiveness and performance of marketing plan, PROTECTA will look at the number of headphones sold and sales of its other smartphone accessories. To identify the expectations, the organization will consider the satisfaction level and repeat intention of the customers.

In addition to this, the organization can take the feedback of customers regarding its new products. It will use questionnaire and mail to take customer feedback. In this, PROTECTA can identify whether expectations are being met. If the company will be unable to meet the expectations, then it will use the contingency plan and create some emergency tactics. This plan will be flexible that can be changed according to the changing conditions in the market (Westwood, 2016). If the plans are not met, it will make changes in its pricing strategy and sell the headphones on lower prices than its competitors. If there will be any issue related to the human resources, then it will create a new team for different action of marketing plan. In this way, PROTECTA Organization will manage any risks and challenges in the future.

Conclusion

From the above analysis, it can be concluded that marketing plan is an important component for the growth and success of business. Each and every organization should develop marketing plan to carry its products and services to the marketplace. To deal with the competitive pressure, PROTECTA is introducing its new brand and launching headphones with unique features. The above marketing plan will assist the organization in approaching the potential customers. The company will be able to attract a large customer base and increase its revenues and profits by selling smartphone accessories in Australia. In this way, PROTECTA can operate and lead the smartphone accessories market in the country.

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Geographic Segmentation