Marketing Eco-Shack

Cover Page
Written Case Study

Marketing the Eco-Shack

Table of Contents
Cover Page 1
Table of Contents 2
1. Eco-Shack Concept/Executive Summary 3
i. Aims and Objectives 4
ii. Project Aim 4
iii. Objectives 4
iv. Background 5
v. Project Rationale 6
2. Issues Identification 6
i. Solution 7
3. Analysis 7
1. Market Segmentation 7
2. Business Segment 8
a. Income Segmentation 8
b. Brand Concentration 8

3. Pricing Strategies 9
4. Recommendations 9
i. Urban Eco-shack vs. Standard Eco-shack 10
ii. Other Pricing Approaches 10
5. Conclusion 11
6. References 12
1. Eco-Shack Concept/Executive Summary
Today, the world is not much distanced as it was several years ago due to
several innovative and technological advancements by the advance
countries and its counterpart around New Zealand. Now, it is comparatively
easier to reach and enter into any country through internet and extranet
without any particular issue and problem for the sake of achieving typical
business objectives. Due to inventions in the field of logistics, companies
are getting advanced and national at a very fast speed. The distance from
country to country has been decreased due to advance infrastructure
facilities such heavy shipments and cargo.
The concept of mass marketing or national marketing has been emerged
very rapidly within past few years. Companies are not restricted to local
market and turnover techniques but they are also focusing different
markets of the world these days for the sake of achieving several beneficial
targets and milestones.
The shift into other countries is due to the realization and investment in
research areas by Eco-friendly buildings. There are several options for
large Eco-friendly buildings companies to attract more and more customers
by offering diverse and wide range of products to potential customers.
There is also high probability for many companies to enter and attract as
many consumers as possible by allocating low amount of expertise and
capital.
The company under discussion is related to the field of Eco-friendly
buildings by Doug and Paul developments as per topic; its business is

revolving and emerging around New Zealand. The company and concept of
Eco-Shack has been given by these people one is draughtsman and other
one is in the field of welding. The target country of the company is New
Zealand with different suitable segments for these types of movable
building for residence. This company has entered in the Eco-friendly
buildings by having diverse and particular targets catering a certain niche
and unique stylish target market under multiple market segments.
This project entails success stories of this company. Particularly, the focus
of the discussion is to understand the tactics to attract national customers
and expansion of the company through national marketing strategies,
opportunities and emulation of the strategies for the future.
The major key areas of this report are issue identification, discussion,
analysis, conclusion and suggestions. In introduction, a clear background
related to fashion brands entry into other markets have been studied
critically. It is certainly accepted that companies should do business
nationally as per their potential and capacity. What are the suggestions and
recommendation of popular researchers and authors within the context of
expansion of business with proper local strategies have been provided. As
per the study, it has been found that growth strategy will be helpful for our
selected company to do business in New Zealand by utilizing niche
business strategy. First store should be launched in the major city of the
country which is Auckland. It should be selected and targeted as it can offer
large amount of customers.
i. Aims and Objectives
Every company enters into any market with the help of certain aim and
objectives. So Eco-Shack has also made some specific and important
objectives before entering in Auckland through specific and suitable
national strategies.
ii. Project Aim
The aim of this project is to practice and apply all the theories on Home
Building improvements so that i can clearly make a strong grip on the
marketing and expansion related strategies before entering into practical
life.

iii. Objectives
* The major part of the project is to practice the applications, theories and
techniques that have been learned in all the courses and units by me.
* By applying the theories, one can learn that how companies enter into
new markets practically.
* To get acquainted with real working environments by international
students.
* To promote the company all over Auckland as a most improved and
advanced form of residence and living area.
iv. Background
This case study has been awarded to the students so that they can apply
all the skills on the real based organizations. More than this they can also
understand the importance of studying and practicing marketing theories
for the purpose of entering and expanding fashion based companies in any
emerging market these days. As per my limited understanding, this topic
has been given to me so that I can understand the practices of the EcoShack Marketing and pricing strategies. The allotment of Eco-Shack may
be due the reason that this type of companies use multiple tactics,
strategies and tools to exists and sustain in the market so beautifully. The
style and range of products and the speed of customization and designing
requires a lot of planning and vigilant skills.
There are several cities within New Zealand that can be targeted and
exploited to expand the operations of Eco-Shack; these markets are
Auckland, Hamilton, Dunedin and Tauranga. Due to the existence of low
retail chain concept, there is a possibility for Eco-Shack to make room for
its expansion. On the other hand, there is high sale per capita due to
handsome earnings of New Zealanders which would make it easier for me
as a strategist to enter in this market (Hansen, 2012).
There is much scope for Eco-Shack in New Zealand as well by remodeling
its structure and develop new structure for this market. This could be a
potential step if the market was understood. It will be a bit difficult for EcoShack to handle operations over here because of no brand image in this

market. It will have to spend a lot of amount to develop a brand image in

this market. Moreover, there is more competition due to the availability of
low cost fashion products such as clothes and apparel (Hansen, 2012).
There is another market option for Eco-Shack in terms of North America but
this market also has risks and problems involved such as no living sense
within consumers, demand of larger sizes, high operating costs, and
retailers look for discounts and market share. In the long run, this company
can attract new customers largely because of having strong financial
position, strong marketing strategies, information systems, market study
and up to date operational staff (Hansen, 2012).
The next section will be to understand the pricing strategies of the company
and on the basis of management skills and suitable strategies, the
company will decide which market most profitable ad suitable to the set is
up and structure. In the next step, a proper plan will be developed for the
purpose of successful entry into the market. The development of this
marketing plan is crucial and once this plan is developed company will
enter into suitable by using different marking techniques such as research
and analysis.
v. Project Rationale
This project is all about the application of marketing and management skills
along with pricing strategies that can be helpful for any company to enter
into the market. The purpose of entry is to introduce Eco-Shack on national
level and fill the gap or target as many customers as possible. Eco-Shack
has been selected as a real estate product, in this report it will be reviewed
that what strategies are helping this company to run as a successful
company in Auckland market. There are few questions like how this
company is managing a large size of business so efficiently by utilizing the
pricing strategies and what kind of successful strategies this company has
used to run its business successfully. Eco-Shack has used marketing,
production, logistics and overall best operational strategies to run its
business all over the world so successfully. The strategies of Eco-Shack
are clearly reflected from its mission and vision statements. The basic
purpose of this report is to understand the techniques company is using

and applies those techniques learned in the whole unit to expand its
operations in the other markets of the world (Khanna & Palepu, 1997).
There are several potential markets in which Eco-Shack can expand its
operations very easily. Some major markets are European markets, Asian
markets, and North American market.
2. Issues Identification
Currently, i have been given a task as a strategic marketing consultant to
evaluate and develop different segments and pricing strategies as per the
demand of consumers for Eco-Shack in New Zealand due to less ecofriendly and old form of buildings in the country as a test.. My role is to
apply my skills and expand the company to other suitable areas of the
world through proper planning as well as marketing strategies. Basically,
the company wants to expand its business and sales to cover the national
market as much as possible to compete nationally and sustain strongly
(Khanna & Palepu, 1997).
There are several reasons due to which these new forms of building have
to be introduced and these issues have been presented in the following
Points:
* To fulfil the basic needs of the children such as their separate living rooms
and study rooms.
* Benefit of rental property due to favourable tax system in New Zealand
* Outdoor tours at beach, parks and other areas so that these movable
house and buildings are favourable.
* Old buildings which have comparatively less green, ecological, sanitary,
gas, electricity, sleeping, repair and maintenance and health
disadvantages.
i. Solution
It is supposed that Eco-friendly buildings owners and inventors have
recruited managers and experts to handle its marketing operations as a
strategic marketing consultant and expand its business in Auckland more

properly and rapidly. In this way, company can introduce this product
nationally and earn as much profits as possible to increase its overall net
worth and size. The country of choice for national business is New Zealand
(Kotler 1994).
3. Analysis
1. Market Segmentation
Eco-Shack segments it products based on demographic factor. It targets
Small profile as well as Medium profile families who are up to 40 years but
still want to own movable houses for residence and rent purpose. Despite
demographic, Doug and Paul also target its customers based on
psychographic aspect. Its customers are aspiration and desire to display
fancy developments, have hallucinations in life and want to look great
(Thomas, 1980).
2. Business Segment
The modern lifestyle exhibited by Auckland residents is defined by unique
personality and buying behaviours that can be explored by the company.
The company designed its marketing strategy to employ online marketing
tools and techniques. This was because over 90 percent of residents use
internet regularly. Therefore, the marketing strategy seeks to explore new
media tools to reach the various segments of the market. The considerable
income, educational and literacy levels and cultural factors have
contributed to the unique lifestyle and personality exhibited by Auckland
residents. For example, Eco-Shack used psychographic profiling to market
its product to various customers through placing an ad in a magazine that
appeals to an upscale market or using online marketing companies to
reach its target audience based on psychographic profiling (Harold H.
Kassarjian 1971).
a. Income Segmentation
Another important segment of this product is related to divide the
customers into their capacity of buying these products. When we look at
the income level of the people and citizens of Auckland then it is clear that
per person and individual average income is NZ$44,304 per year in 2005.

This city is comprised of 32% of the whole population of country and 90%
of the city population is living on urban areas.
These are the most significant figures of the city through which we can
easily target all the urban class families of the city having income ranging
from NZ$30,000 to NZ$40,000 per year. In this way, it can easily be
understood that the target market of the city is high and medium class of
the city who will be very interested to buy a home like this for them and
their children as well in the near future (ENZ, 2013).
b. Brand Concentration
Eco-Shack must pay attention on new product development as well as
worldwide expenditures. On a National online sales strategy, the
investment could be take place on an inferior-financial plan; on the other
hand, the company should be certain that it logistics as well as customer/
supplier supply chains must be put together into the e business policy. The
execution of social media websites as well as blogs like Twitter, Facebook,
and YouTube etc. can assist Zara to reach its customers on the
international pattern (Lasserre, 2008).
3. Pricing Strategies
As Eco-Shack brand is offering Houses to all type of people thus they are
very conscious about its pricing strategy and try to maintain the quality
standard with competitive pricing strategy (Marketing 2002).
There are several other useful pricing strategies that this company may use
to attract its customers but some of the major strategies as per the product
are;
* Value based pricing.
* Cost-based Pricing.
These are the proposed pricing strategies for Eco-Shack because this is a
new product and at the start it is important for the investors and producers
of this product to provide the product on very low margin. Once the
customers are used to with the market and popularity and high sales, the
price may also be increased but it always depend on the situation and other

costs related to this product such as material, labor and factory overheads
(Kotler 1994).
Once the product is introduced, there will also be high budget spent on the
marketing of this product because of new product. If the customers are
targeted and reached properly through proper marketing and promotion
campaigns then it will be better for the company from the sales point of
view.
There are several advantages and some disadvantages of these pricing
strategies such loss, low profits, and loose customer attention. The
attention of the customer can be lost in way that because customer may
reject the product due to low price for high profile product like this.
Customers may behave differently for these types of products sometimes.
They get a doubt that due to its low price this product is of low quality. They
sometimes believe that how the price of these types of most innovative
product can be very low or less (Leo Lingham 2009).
4. Recommendations
i. Urban Eco-shack vs. Standard Eco-shack
Eco-Shack place in the reasonably priced property business evidently
states its not a lavishness product. The target patrons are enthusiastic to
acquire fancy style while still aware to the prices. The mainly significant
thing is that Eco-Shack creates more numbers of models and styles of
houses. It should also think about new product and expand description like
colourful houses etc.
As this Product is offering movable luxury houses to all type of people thus
they are very conscious about its pricing strategy and try to maintain the
quality standard with value based and cost based pricing
The steady run of rationalized data alleviates the bullwhip effect. This
product should make sure that its all distribution channels must actively get
retail orders and fulfil them on time.
In the aggressive housing business, this product may productively build an
international well-known brand by an exceptional organization scheme of
invention, manufacture and supplier chains. The rapid fashion thought

and process permit Eco-Shack to constantly offer the mainly stylish formats
to their consumers and the forever renovate compilations absolutely assist
construct a brand faithfulness.
ii. Other Pricing Approaches
The major pricing strategies for the types of products is the same but at the
spot prices can be altered depending upon the needs such as high
competition, low sales and attracting more customers.
The major pricing strategies can be offered with discounts and sales
packages to the loyal customers with a certain limit, for example, at the
time of low sales one building can be offered with one time free repairing
facility in future. These are the types of offers which can be used only
depending upon the situation.
This product should focus on all New Zealand net to grasp marketing
opportunities (e-commerce policy and social media) to endorse traffic on
companys website. The company national marketing channels should
focus on the central European market.
5. Conclusion
After this project it is possible to understand what has been gained
throughout the study. The project was started by giving a topic related to
entry of Innovative product in market. The major aim of the project was
aimed at providing unique product and entry into any country for the
improved services and residential buildings. The other objectives of the
project were to analyze and apply all the information and study learned in
the said discipline.
The project was comprised of different stages but the major stage of the
project is Issue identification and discussion. This area is the main body of
the report. All the report is based on the arguments, opinions and
suggestions. On the other hand, there are modern researchers who
approach companies to do this type of unique business for the purpose of
providing highly profitable and useful products in the market, growth and
higher profits at the end. They have not only suggested national business
initially but also provided all the techniques and method to be successful as

well. They focus that companies should think and plan for the long term
sustainability and profits as compare to huge temporary benefits.
This case study and examples of entry into new country are provided in the
report. Both studies suggest entering into new market depending upon the
specific economical, technical, political, foreign and legal situations. Both
case studies motivate companies to do national business if they have the
capacity to do.
It is proposed that Urban Eco-shack will be useful for urban markets on the
basis of value based pricing and standard Eco-shack will be produced for
normal and medium class people. Those people can be targeted on the
basis of cost based pricing most preferably.
6. References
ENZ 2013, New Zealand City Comparisons, viewed on 10 May, 2013,
available at: http://www.enz.org/nz-cities-compared.html.
Hansen, S., 2012. How Zara Grew Into the Worlds Largest Fashion
Retailer, p.2, New York: New York Times.
Harold H. Kassarjian 1971, Personality and consumer behavior, journal of
marketing research, vol.3, pp.419-18.
Khanna, T. & Palepu, K., 1997. Why focussed Strategies may be wrong for
emerging markets. Harvard Business Review, Volume 75 , pp. 41-49.
Lasserre, P., 2008. Global Strategic Management. 2nd ed. Singapore:
Palgrave Macmillan.
Leo Lingham 2009, marketing/marketing, viewed on April 30, 2012,
<http://en.allexperts.com/q/Marketing-1090/2009/1/Marketing-53.htm>.
Marketing 2002, Marketing association of Australia and New Zealand,
viewed on April 30, 2012, < http://www.marketing.org.au/esomar.aspx>.
Philip Kotler 1994, Marketing Management Analysis, Planning,
Implementation, and Control, Eight Edition, prentice hall, pp. 173.

Thomas, M. 1980, "Market segmentation". Quarterly Review of Marketing,

vol.6, No.(1), pp. 5, 6, 27, 28