Organizational Market Planning By Management Educated

Business overview

Dsicuss about the Organizational Market Planning By Management Educated.

Motive of LeatherChi is to fulfil Australian market’s needs in terms of leather. It will import raw leather from India because India is one of the largest producers of raw leather, goods and accessories. Idea of this business is originated from reviewing the demand of leather goods and accessories in Australian market. Indian market has been chosen for importing leather because Indian leather industry accounts for approximately 12.93% of global leather production of skins. India stands on the second position in terms of producing leather footwear and leather garments production in the world and accounts for 9.57 per cent of the world’s footwear production.

In order to import leather from India, organization will require being member of The Council of Leather Exports (CLE). Almost 3500 leather manufacturing and exporting companies across the globe are member of this council. Venture will start with seeking funding of $100,000 to add to the existing funds of $100,000. In relevance to this, venture will be started at small level which will be further expanded to the large scale in the domestic as well as in international market after attaining success in the target market. The company will be private for initial period of time which will be later on converted into a public limited company with the objective to expand its operations in the international market (Abidi, et. al., 2015).

Mission statement for this start-up will be “Creating an Aura in Australia by delivering high quality leather goods and accessories which will be imported all the way from India”. Organizational mission is to establish its effective position in the target market and this could be possible by delivering high quality goods through target audience’s needs could be satisfied. LeatherChi’s ultimate desire is to spread extensive expertise and experience, inspiring new creative applications of leather in a vast array of industries, environments and visual contexts in the target market (Baker, 2014).

Vision of the organization is to attain leading or competing position in the target market in the leather industry in Australia. Apart from this, LeatherChi’s vision is to acquire big portion of overall market of leather goods in Australia in coming five years. In relation to this, major focus will be imposed over fulfilment of target audience’s needs and wants by delivering them high quality leather goods and accessories (Chaffey, 2015).

Mission and vision of LeatherChi

Short term goals:

• Development of effective image in the target market
• Developing effective relations with the exporters of leather
• Increasing demand of organizational products
• Spreading awareness amongst the target audience (Chang, 2016).

Long term goals:

• Acquiring large part of the target market
• Enhancing product offerings
• Gaining competitive advantage
• Maintaining quality of goods so that the customer base could be enhanced along with uplifting organizational image in the target market.

Apart from this, new business venture also has responsibility towards society and environment. Major source of leather is animal skin and in this manner, leather manufacturing and exporting companies are required to contribute certain part of their earnings in order to enhance security to reduce and mitigate animal skin smuggling. In relation with this, organization will outsource the expert agencies to fulfil corporate social responsibilities and business ethics requirements (Drummond, Ensor & Ashford, 2012). These will be outsourced with the objective of reducing cost of production so that the target audience could get leather products and accessories at reasonable prices.

Segmentation is implemented with the objective of segregating a big and wide market into small segments so that it could be easily targeted along with increasing the demand. Primary target market for LeatherChi will be all types of segments because in the initial period, it will deal in shoes, jackets and gloves which are used by all type of people (Farahmand, 2011). Apart from this, their major target segment will be people who love to use leather goods. In relation with this, organization will execute a market research to analyse the demand of leather goods and accessories in the target market to determine the most appropriate target market for the organization. Leather products are bit expensive, thus people will high preaching power will be able to afford LeatherChi’s goods. But in Australia, major segments of people have sufficient purchasing power, thus, organization have a enough market area to target and approach with the objective of enhancing demand of their products. Following are crucial segments which will be targeted by LeatherChi:

• Demographic: LeatherChi will target audience in this segment on the basis of age, income, etc.
• Geographic: All states of Australia will be targeted
• Psychographic: People are segregated on the basis of preferences, lifestyle, etc. in this type of segmentation. This would be the perfect target market for LeatherChi because, leather goods and accessories are included in luxurious goods, thus, people who loves to maintain lifestyle would be approached by the organization in order to set up market share (Glowik & Smyczek, 2011).

Consumption of leather in Australia has been increased in past years. The major reason behind increase in the consumption of leather is utilisation of leather in various sectors such as fashion, automotive, furniture, etc. Emerging leather industry in Australia has generated sundry opportunities for the new entrants to fulfil Aussies’ requirements in terms of leather. Revenue from leather industry for Australian market expected to reach over $1000 million. These figures show that the demand of leather goods and accessories will be increased in future years which shows that there is a vast scope for the organization to attain its goals and objectives. Along with this, LeatherChi will be able to set up its effective position in the target market with the help of trending digital marketing strategies for promoting the business in the target market (Gruca & Rego, 2009).

Goals and Objectives

Australian government is concerned about the rights of employees, thus, in consideration to this, Aussie government has developed certain rules, regulations and laws in relation with ensuring safety, unfair treatment with employees, etc. which need to be followed and considered by every organization operating in Australia. Political factors have a great impact over every business and as LeatherChi will deal in leather goods, all the regulations related to the production, import and export of leather needs to be followed in order to avoid any type of glitch in the operations of organization.

Australian economic is stable and in relation to this, purchasing power and financial condition of Aussies is also good. As economic conditions also have a major impact over organizational performance and as LeatherChi will deal in leather goods and accessories which are included in luxurious goods category which is not affordable for all income group people.  Thus, it is necessary for the organization to consider economic policies of the country before setting up the business (Scarborough, 2015).

With the increasing demand of leather goods in the Australian market and other parts of the globe, new venture in the name of LeatherChi has been planned which deliver high quality leather goods in Australian will market with the objective to fulfil the needs of target audience. Emerging trend and demand of leather goods are in various fields such as fashion, furniture as well as automotive.

Technology also plays vital role in producing effective and attractive leather goods and accessories from raw leather. Apart from the manufacturing field, technological impact is also high over marketing and promotional activities, thus, organization should adopt flexible strategies which could be able to welcome change in order to enhance productivity (Yoon, Lee & Chang, 2017).

Leather goods are always been associated with high-end luxury and comfort but environmental, animal as well as human impacts have never been noticed in the leather production. Leather production is linked with negative environmental consequences and also affects human welfare and leads to animal suffering. Organization should take care so that environment, human as well as animal life does not get affected, otherwise organizational performance might get affected.

Leather production affects environment because mainly leather is extracted from animal skin which leads to various negative consequences to environment. Regulations imposed by Australian government in relation with procuring environment must be considered to avoid glitches in the performance of the organization.

Segmentation and Targeting

This is the most crucial segment for a business plan. With the help of competitive analysis, LeatherChi would be able to determine strengths and weaknesses of existing players in leather industry. This analysis will help LeatherChi to develop and adopt effective and advanced strategies in comparison with the existing players. Australian Leather Company and Oran Leather Pty Ltd. will be the major competitors for LeatherChi and in order to compete well with these existing companies in the target market, advanced measures, innovative techniques and talented employees will be required. Both these companies are known as the large players of leather industry in Australia and both has covered approximately 50% market share. In relation to acquire market share in the competitive business environment, organization is required to adopt adequate and advanced promotional and marketing strategies (Hill, Jones & Schilling, 2014).

With regards to promotion and advertisement of new business venture in the target market, most appropriate techniques will be trending digital marketing strategies and certain effective traditional mediums of advertisement and promotions.

Amongst the available options, major focus will be imposed over digital marketing strategies such as social media platforms, email marketing, etc. These are essential elements for a new business venture to spread awareness amongst the target audience along with increasing the opportunities to gain positive outcomes.

Social media platform such as Facebook, Twitter, Instagram, etc. will be the major options for organization to promote its business in the target market and it will help the organization to gain positive outcomes along with the development of an effective position in the competitive business environment. Social media requires less investment in comparison with other mediums of promotion and marketing along with huge market covering capacity (Czepiel & Kerin, 2012).  

Apart from digital marketing strategies, television and radio marketing could also be included in the marketing and promotional plan of the LeatherChi. In addition to this, event marketing could also be used but it will be bit costly for a start-up, hence, it will be included in the marketing plan after attaining success and growth in the target market.

References

Abidi, H., Shafiq, F., Arshad, R., Pirwani, M. and Hassan, A., 2015. Case Study: Stories of Entrepreneurship. Market Forces, 10(2).

Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction. Pearson Education.

Baker, M.J., 2014. Marketing strategy and management. Palgrave Macmillan.

Chaffey, D., 2015. Digital business and E-commerce management. Pearson Education Limited.

Chang, J.F., 2016. Business process management systems: strategy and implementation. CRC Press.

Czepiel, J. A., & Kerin, R. A., 2012, Competitor Analysis. Venkatesh Shankar And Gregory S. Carpenter, Handbook Of Marketing Strategy, Edward Elgar, Pp. 41-57.

Drummond, G., Ensor, J. & Ashford, R., 2012. Strategic Marketing: Planning and Control, (4^th) London: Palgrave Macmillan

Farahmand, N. F., 2011. Organizational marketing planning by management educated managers, African Journal of Marketing Management,  3(8), pp. 178-187

Glowik, M. & Smyczek, S., 2011. International Marketing Management: Strategies, Concepts and Cases in Europe, Page 301, (4^th), New York: Physica-Verlag

Gruca, T. S. & Rego, L. L., 2009. “Customer Satisfaction, Cash Flow and Shareholder Value,” Journal of Marketing, 69, 115–30

Hill, C. W., Jones, G. R., & Schilling, M. A, 2014, Strategic management: theory: an integrated approach. Cengage Learning.

Lam, W. and Harker, M.J., 2015. Marketing and entrepreneurship: An integrated view from the entrepreneur’s perspective. International Small Business Journal, 33(3), pp.321-348.

Renton, M., Daellenbach, U., Davenport, S. and Richard, J., 2015. Small but sophisticated: entrepreneurial marketing and SME approaches to brand management. Journal of Research in Marketing and Entrepreneurship, 17(2), pp.149-164.

Scarborough, N.M., 2015. Entrepreneurship and effective small business management. Pearson Higher Ed.

Yoon, J., Lee, Y. and Chang, D.R., 2017. An investigation into the vision and mission statements of multipurpose cultural institutions for place brand communication of Dongdaemun Design Plaza. Place Branding and Public Diplomacy, 13(1), pp.34-50.

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