Amb240 Marketing Plan Final 1

AMB240 Marketing Planning & Management

Semester 2 2016
Marketing Plan

Daniel Turner N9175946

Jessica Carwardine N9477322
M egan Hunter N9154507
Victoria Sergeant N9548611
Daniel Thom as N8840571

Tutor: Naseer Choudhry | Due Date: 9th September 2016 | Word Count: 1644

Table of Contents
1.0 Executive Summary ............................................................................................................................................... 2
2.0 The Company ........................................................................................................................................................ 3
2.1 Mission Statement ................................................................................................................................................... 3
2.2 Marketing Team ....................................................................................................................................................... 3
3.0 Situation Analysis .................................................................................................................................................. 3
3.1 The Market ............................................................................................................................................................... 3
3.1.1 Market Need ..................................................................................................................................................... 3
3.1.2 PEST Analysis .................................................................................................................................................... 4
3.2 Competition ............................................................................................................................................................. 5
3.3 SWOT Analysis .......................................................................................................................................................... 7
3.4 Situation Analysis Summary ..................................................................................................................................... 7
4.0 Market Segmentation and Target Marketing ....................................................................................................... 8
4.1 Market Segments ..................................................................................................................................................... 8
4.2 Target Market .......................................................................................................................................................... 9
4.3 Market Size, Demand, and Potential ....................................................................................................................... 9
5.0 Marketing Objectives and Metrics ..................................................................................................................... 10
5.1 Positioning and Competitive Advantage ............................................................................................................... 10
5.1.1 Positioning ...................................................................................................................................................... 10
5.1.2 Competitive Advantage .................................................................................................................................. 10
5.2 Objectives and Metrics .......................................................................................................................................... 11
6.0 Marketing Mix Strategies .................................................................................................................................... 12
6.1 Product ................................................................................................................................................................... 12
6.2 Price ........................................................................................................................................................................ 14
6.3 Place ....................................................................................................................................................................... 15
6.3.1 Distribution Strategy and Logistics ................................................................................................................ 15
6.3.2 Stall Location and Company Objectives ......................................................................................................... 17
6.3.3 Stall Features .................................................................................................................................................. 17
6.4 Promotion .............................................................................................................................................................. 19
7.0 Budget ................................................................................................................................................................. 20
8.0 Implementation Plan .......................................................................................................................................... 22
References ........................................................................................................................................................................ 24
Appendix A: Product Checklist ......................................................................................................................................... 25
Appendix B: Observations of a Market ............................................................................................................................ 26

Decaf Designs Page | 1

1.0 Executive Summary

Decaf Designs is a new business looking to find a home in the QUTopian market within Brisbane,
Australia. Decaf Designs mission is to provide contemporary and unique products that house
both individuality and recycled materials. QUTopia’s population will become rejuvenated by
Decaf Designs vibrant aura.
Decaf Designs offers distinctive, invigorating prints coming in a range of sizes, with the added
possibility of customisation. Whether an A4 print is needed to brighten a dull room, or an A6
portrait to bring excitement to the office desk, Decaf Designs has the solution. Prints will also
come in the form of a wallet to show off character and keep those QUTopian dollars safe.
Decaf Designs’ target market is comprised of three main market segments. These include the
Single Shot, Decaf Lovers, and Full Strength Brew. Single shot was chosen as the primary target
market as the group’s psychographic description fits the appeal of Decaf Designs. The
environmentally friendly nature of Decaf Designs will attract the chosen market segment, while
the visually pleasing product will encourage the Single Shots to share their purchases on social
media platforms. Single Shot also has the added benefit of having the largest population of the
three segments.
Decaf Designs has only one direct competitor, Cardboard Collective. Both businesses are selling
recycled materials in the form of home décor, with the only difference being the material choice
of paper or cardboard. Market analysis is conducted which outlines the strengths and
weaknesses of Decaf Designs, how this can be used to the business’s advantage and earn 12% of
the market share in the ‘Other Store-‐based Retailing’ category amongst 15 other competitors.
Market share, along with customer loyalty, and profitability are Decaf Designs main objectives.
These will be achieved by implementing the market mix in perfect harmony to maintain a
consistent brand image to consumers. Decaf Designs is environmentally friendly, invigorating,
and the future of QUTopia.

2.0 The Company

2.1 Mission Statement
Decaf Designs strive to provide contemporary and unique products that house both individuality
and recycled materials.
2.2 Marketing Team

Table 1: Marketing Team
Position Team Member

Marketing Manager Daniel Turner
Product Manager Daniel Thomas
Promotion Manager Jessica Carwardine
Price Manager Megan Hunter
Distributions Manager Victoria Sergeant
3.0 Situation Analysis

3.1 The Market
Decaf Designs will be entering a marketspace called QUTopia, located in Brisbane, Australia. The
2016 QUTopian census reveals a population of 296 AMB240 students. However, QUTopia is a
popular location for tourists, and therefore the total population fluctuates.
3.1.1 Market Need

Decaf Designs is looking to fill customers’ emotional needs. These needs will be fulfilled through
a variety of expressive, unique, and environmentally friendly paper printed designs. Products will
come in the form of home décor, gift cards, and even paper origami wallets. Most recent
QUTopian businesses such as ReGlassed and Something to Ink About from semester 1 of 2016
had similar products and a healthy profit upward of 24% (Qutopia Bureau of Statistics, 2016). For
these businesses, the main value proposition to customers who bought the product was
emotional (Qutopia Bureau of Statistics, 2016). Decaf Designs will use this information to help
ensure the product is targeting the appropriate market need.

3.1.2 PEST Analysis

Table 2: PEST Analysis
Environment Trends/Issues Implications for the product

Political/ •The Australian Federal Election of 2016 •The change in government and associated policy
Legal instated Malcolm Turnbull and the LNP adjustments means Decaf Designs need to be aware of
coalition and respond to new actions. The political uncertainty
•With the implementation of the Coalition, may lead consumers to be more conscious of their
new government promises to focus on spending.
‘jobs and growth’ particularly cutting •The decrease in company tax allows small businesses,
company tax proposing a drop to 27.5% such as Decaf Designs to retain greater portions of
for small businesses (Conifer, 2016). their profits
•The government plans to implement •Middle-‐income earners will keep a greater portion of
personal income tax cut for middle income their income. As such, they have the opportunity to
earners (Conifer, 2016). buy discretionary items that they perhaps did not have
the wages to afford previously.
Economic •According to the ABS, Australian •Despite the minor increase, Australian unemployment
unemployment rates raised from 5.7% in rates are relatively low, indicating a strong purchasing
May 2016 & to 5.8% in June 2016 (ABS, ability of consumers, allowing spending on gift wares
2016). created by Decaf Designs
•Brisbane inner city unemployment rate •Decaf Designs is situated within the Brisbane CBD,
stands at 4.0% whereas Brisbane outer which has a lower unemployment rate, indicating that
suburbs (North, East and West) stand at high levels of consumers will have access to
3.6%, 5.0% and 5.0% respectively discretionary income
(Australian Government, 2016). •Australian adults are situated in middle to high-‐income
•According to ABS, the average adult weekly bracket, as such, Decaf Designs need to price their
earnings are $1556.30 (ABS, 2015). The items to match income levels of target consumers.
average wage of each QUTopian is Also, pricing needs to sit within an acceptable range for
approximately $293. the average QUTopian’s wage.
Socio-‐cultural •With the rising concern for corporate •Decaf Designs is positioning themselves as an
social responsibility within organisations, environmentally friendly business by using recycled
there has become a specific focus on paper as the basis for prints
environmentally sustainable practices. •The higher proportion of females in the population
•According to the QUTopia census, the indicate that females possess greater buying power,
population stands at 296 individuals, with and will be considered when determining Decaf
females accounting for 65% (193) and Designs marketing strategies.
males 35% (103). •Decaf Designs should consider that the majority of the
•Census results reveal that 95.3% of market is single, and only has one income when
QUTopian’s are single. 95.27% of determining the pricing strategy.
QUTopian’s ranged between the ages of •When determining which marketing communication
18-‐24 methods would most actively reach the target
audience, the trends of major age groups will be
considered.
Technology •High level of QUTopians are within a •The implication for Decaf Designs is the need to
younger demographic and as such are integrate marketing communications on a myriad of
more active users of online platforms e.g. platforms. Younger consumers want high engagement
social media, online shopping sites, smart levels. As such, Decaf Designs needs to utilise social
phones etc. media and online platforms to market the product.


The PEST analysis (Table 2) revealed key environmental factors. Political and economic
conditions will have a minimal effect on the QUTopian market. Considering the
demographic characteristics of primary consumers, Decaf Designs can utilise online and Social
Media communications to reach the target audience. The increase of environmental concern
among young individuals will be advantageous for Decaf Designs with the organisation utilising
sustainable practices.
3.2 Competition
Table 3: Competitors
Business Product Outline/M ission

Adopt-‐a-‐monster Innovative yet affordable handcrafted Halloween decor.
Ants in your Plants? Eco-‐friendly succulents within vintage pots
Balance Being Alleviate stress in a fun and personal way and encourage the balance between health
and wellness.
Bent Bottles Recycled bottles into useful and decorative home wares
Cardboard Collective Recycled Eco Friendly Merchandise
Fresh from the Bringing a fresh and green environment to the consumer's home, with optimal
Bottle balance of current trends and sustainability.
Glass Gardens Bringing life to your homes with vibrant succulents.
kNew You Helping people realise their full potential.
Lumière Personalised scented candle, delivering a sensory experience.
Nature's Grasp To provide unique, stylish holders
Peace Out Spread happiness and helps people to escape from stress. We deliver creative and
customised products that help improve people's life.
Sparkle & Spook Providing colourful and enchanting treasures bringing a little magic to the world of
mindfulness, with soothing glitter jars to relieve anxiety and stress.
Świeca Rustic and unique soy candles are infused with scents
Aromatherapy
The Beer Garden Provide unique and trendy home-‐wares for trend conscious, eco-‐friendly and
environmentally concerned consumer.
The Four Ps Help people to destress, organise, energise and indulge in their busy daily lives

Table three contains a list of competitors within ‘Other Store Based Retailing’. Cardboard
Collectives is the only direct competitor for Decaf Designs as they too are producing décor items,
however their products are made from cardboard. Table four analyses key competitors within
the same product category and the impact their business could have on Decaf Designs.

Table 4: Competitor Analysis
CARDBOARD Bent Bottles Ants in your Plants?

COLLECTIVE
Mission Provide Customers Strives to transform used Endeavours to provide fresh, eco-‐
Statement with Recycled Eco beer, wine and spirit bottles friendly succulents within vintage
Friendly Merchandise. into useful and decorative pots to promote natural living with
homewares that add value the added benefit of being
to customers by providing a sustainable
means of creative
expression.
Target All of QUTopia. Potentially all of QUTopia, Potentially all of QUTopia
market(s) Specifically, or more specifically or more specifically
environmentally environmentally conscious environmentally conscious
conscious consumers consumers/homeowners consumers/homeowners
Product Cardboard Decor Recycled Homewares Succulents and Pottery
Assumed (depending on specific (depending on specific (depending on the size of plants and
Price items) items) $10-‐50 pots) $30-‐50
$15-‐40
Place Stall 5 Directly opposite Decaf Stall 14
Designs stall at stall 7
Promotion Online (Facebook), in Online (Facebook), in class Online (Facebook), in class or at their
class or at their stall or at their stall stall
Potential Unique and unusual Providing unique and one-‐of-‐ Providing a product which a
competitive edge to their products a-‐kind products may draw consumer can form an emotional
barriers – i.e. making décor consumer’s attentions. connection to.
from cardboard.
Potential Strengths: Using Strengths: Ability to vary the Strengths: Availability of product
strengths and recycled goods, and product and have each item variety (type of plant, type of pot,
weaknesses uniqueness of product. unique while using recycled size, etc.) and eco-‐friendly.
of products.
competitors Weaknesses: Weaknesses: Could become messy,
Dependent on quality Weaknesses: Potentially and has an “expiration” date (plants
of material, and what fragile, also dependent on wilting/dying)
items will be made quality of recycled materials.
from them.
Likely ATTACK ATTACK APPROACH
response(s) Promote the variety Promote the individuality Propose a trade in the advertisement
ATTACK, and uniqueness of and usefulness of Decaf of products by purchasing a succulent
APPROACH or Decaf Designs Designs products in for Decaf Designs stall’s aesthetic
AVOID products, and the comparison -‐ creating a purposes for a similar deal in return.
higher grade of quality. bright and eye-‐catching stall
to draw attention

3.3 SWOT Analysis
The SWOT analysis highlights the microenvironment of Decaf Designs. Strengths and
weaknesses are internal business factors, whereas opportunities and threats are uncontrolled
variables. Decaf Designs strengths outnumber the negative considerations, and therefore
indicate a promising position for the business to enter the market.
Table 5: SWOT Analysis
3.4 Situation Analysis Summary

The exact population of QUTopia, including tourists, is unknown. However, there is 296
permanent residents. Decaf Designs’ products will be looking to engage customers’ emotional
needs by using expressive, unique, and environmentally friendly paper printed designs. The PEST
analysis highlighted the importance of advertising through social media channels while the
SWOT analysis provided an insight to the businesses standpoint. It was also discovered that
Decaf Designs has a sole direct competitor.


4.0 Market Segmentation and Target Marketing
4.1 Market Segments
Table 6: Market Segmentation
Single Shot Decaf Lovers Full Strength Brew

Geographic The ‘Single Shot’ segment is The ‘Decaf Lovers’ segment The ‘Full Strength Brew’
Description located within QUTopia in is located within QUTopia in segment is located within
Brisbane, Australia. Brisbane, Australia. QUTopia in Brisbane,
Australia.
Demographic Single Shot comprises females Decaf Lovers involves single Full Strength Brew are both
Description between the ages of 18-‐22 who males aged 18-‐22. These males and females aged 23
are single. Based on their age consumers are usually living and above. As an older
and relationship status, they in their family home or a cohort, they are more
are generally still living at home shared location, generally in financially independent,
or in shared accommodation. the suburbs surrounding the mostly living in shared rental
Brisbane CBD. housing or their own home.
Psychographic 61.59% of consumers in the Within the Decaf Lovers Full Strength Brew is the
Description Single Shot segment are segment, 19.78% are smallest of the segments
members of the Roy Morgan categorised as ‘Socially with 13.88% being members
Segment-‐ ‘Young Optimism’ Aware’ (Qutopia Bureau of of the ‘Visible Achievement’
(Qutopia Bureau of Statistics, Statistics, 2016). This category (Qutopia Bureau of
2016). This segment strives to segment is referred to as Statistics, 2016). Those
improve their life and for ‘information vacuum within this segment are
success. They also place high cleaners’ as they are known known to have been
concern on their image and to always be searching for successful and have
projecting the right image to new and different things established confidence in
society (Roy Morgan, 2016). (Roy Morgan, 2016). their individual abilities (Roy
This group is hardworking with Furthermore, they are Morgan, 2016). In addition,
career driven goals, but also known to have an Full Strength Brewers within
tries attain a work-‐life balance. investment in social the visible achievement
Additionally, they are responsibility, and, they segment are said to look for
technologically savvy and have share their opinions quality and value for money,
innovative ideas. regarding social issues. rather than high expense.
Behavioral The young, single female The young, single male The Full Strength Brew
Description consumer group Single Shot Decaf Lovers segment are segment is slightly older
are likely to be students and likely to be students and with more mature
have a lower income. have less income and must consumers. They are still
Therefore, will be more be spending conscious. Most young, but appreciate good
spending conscious. As most are still living at home and quality and look for value.
are still live at home, they are have the ability to purchase Most have part or full time
able to purchase onary items. discretionary items. Decaf jobs, placing them higher on
Single Shot will be open to new Lovers are open to trying the income scale. This
businesses and trying new new things and experiencing financial situation means
products. Young consumers are new products. Young they have the disposable
found to be technologically consumers are found to be income to sample new
savvy, often documenting their technologically savvy, often products. Despite being
actions as consumers on documenting their actions as slightly older, these
different social platforms. consumers on different consumers are still tech
social platforms. savvy and avid users of
social media.


Findings in table six indicate that Decaf Designs will be able to appeal to each
consumer segment. Full Strength Brew will be attracted to the products value, while
both Single Shot and Decaf Lovers will find Decaf Designs environmentally friendly nature
appealing.
4.2 Target Market

Single Shot was determined as the primary market segment due to their psychographic and
behavioural description. Their high concern for image projection on society is consistent with
Decaf Designs. Therefore, Single Shot consumers are more inclined to purchase environmentally
friendly products and display the purchases on social media to project their image. This will act
as free advertising for Decaf Designs. Additionally, Single Shot also has the largest population,
and for this reason, there will be slightly more prints made aimed toward young adult females.
4.3 Market Size, Demand, and Potential

Table 7: Decaf Design’s Forecasting Demand
QUTopia: Forecasting demand

Total QUTopia The 2016 census reveals that the size of the QUTopian market is 296 people* 296
market:
Market Our product category is accessible to all of QUTopia consumers, giving Decaf 296
potential (a): Designs a market potential of 100% (296 people).
Target Market The target market, classified as the ‘Single Shot’ segment, accounts for females 168
(b): aged 18-‐22 years old. The Single Shot segment controls 57% of the market (168
consumers).
Product As outlined in the SWOT analysis, the business has limited capacity for repeat 3
frequency per purchases being a non-‐disposable good. Decaf Designs plans to promote the
person (c): product as ‘gift giving’ while incentivising repeat purchases with loyalty
discounts. It is estimated that 35% of customers who purchase on market day 1
will return on market day 2. This is consistent with the company’s marketing
objectives of retaining 35% customer loyalty. Based on this and primary
research, it is estimated that members of the target market would purchase
three units over the two market days.
Estimated Decaf Designs lies within the ‘Other Store Based Retailing’ industry of QUTopia 16%
market share (G4279). As this is a start-‐up enterprise, no current market share is controlled.
(d): Estimated market share was calculated based on average market share of
businesses within the same industry from previous semesters and equals 16%.
Sales projection Number of units to be sold 81
((b) x (c) x (d) Sales projections = target market (168) x product frequency (3) x estimated
market share (0.16)


* Please note these figures underestimate the actual market size, as they do not account for
non-‐QUTopian consumers.
5.0 Marketing Objectives and Metrics

5.1 Positioning and Competitive Advantage

5.1.1 Positioning

By analysing the micro and macro environment, Decaf Designs decided to utilise a concentrated
targeting strategy. The most beneficial market segment is ‘Single Shot’, comprising young,
female consumers. The marketing communication strategy will establish a relationship with
these individuals. By focusing on this specific segment, it will allow Decaf Designs to customise
the products to meet primary consumers needs and interests. To best communicate the value
proposition to the target market, the following positioning statement will be put forth:
‘To young, female consumers, Decaf Designs is the brand of customised printing that provides
consumers with a variety of unique, culturally relevant and environmentally sustainable
products.’
5.1.2 Competitive Advantage

The aforementioned analysis of competitors within the QUTopia marketplace revealed up to

fifteen indirect competitors within the ‘Other Store-‐based Retailing’ category. As a customised
product, Decaf Designs has no direct competition. The uniqueness of the product range presents
a key point of differentiation that could serve the business in achieving competitive advantage
over indirect competitors.
Decaf Designs have created five categories of customised prints and origami wallets, all of which
have been produced or altered to be completely unique. The designs have been selected to
match consumer needs and societal interests. The limited availability of these products will drive
purchases and distinguish Decaf Designs from potential competitors. Additionally, Decaf Designs

is utilising recycled materials to appeal to the environmental concerns of consumers.
These practices will serve as a focal point of differentiation.
5.2 Objectives and Metrics
Table 8: Decaf Designs’ Objectives
Objectives Metric How the data will be collected Metrics: How it will be
measured
Achieve 12% Market Accessing data through the QUTopia bureau of Market day results in terms of
market share share statistics after market days. sales and profitability in
comparison to key competitors
will determine what portion of
market Decaf Designs possess.
Retain 35% Customer The use of a loyalty card will document how Loyalty cards will be collected
Loyalty Loyalty many consumers are returning from market after redemption. The number
day 1 and market day 2. of loyalty cards redeemed in
relation to number of sales will
reveal customer loyalty.
Achieve 30% Profitability Progressively throughout the semester, all A statement can be collated to
profitability expenses deducted by the business (Inc., record all profit and expenses,
resources, production, marketing strategies thereby revealing profitability
and distribution) will be recorded. After of the business.
market days, number of items sold and
associated profit will be documented.

Table eight deconstructs Decaf Design’s main marketing objectives. With a market place driven
by consumer demand, Decaf Designs believes market share and customer loyalty holds greatest
importance. If these objectives are met, it will increase the likelihood of meeting the third
objective of profitability, which ultimately determines a business’s success.

6.0 Marketing Mix Strategies

6.1 Product Strategies

Decaf Designs offers unique, and environmentally friendly paper prints. Customers can match
their preferred product with their desired design. Table nine outlines the product variations and
design options available, while table ten documents the required materials.
Table 9: Product Options
Products Designs
Home décor Pokémon
Gift Cards Sport Teams
Origami Wallets Movie quotes
Inspirational quotes

Patterns

Table 10: Required Materials
Ingredient/Supplies Sources/Suppliers
Recyclable Paper Purchased from Office works
Photo Frames Sourced from Decaf Design employees
Plastic Sleeves (Packaging for A5 Prints) Purchased from Daiso
Paper Envelopes (Packaging for Wallets and A6 Purchased from Daiso
Prints)
Timber Pallets Donated by Marketing Manager
Battery Powered Fairy Lights Purchased at discounted price from Typo
Peg and Twine Set Purchased at discounted price from Typo

6.1.2 Product Value

Product offerings by Decaf Designs create emotional value. Consumption of the products evokes
the emotions of joy and happiness through the creation of environmentally friendly, popular
culture products. Emotional branding clearly differentiates companies from their competitors
and helps to create deep intrinsic relationships.

6.1.3 Branding Strategy

Decaf Designs employed a singular branding strategy based on the company’s business logo (see
Figure 1). The design resembles a swirl of coffee; aligning with the business name ‘Decaf
Designs.’ The brown and green colouring reinforces the environmental component of the
business. Decaf Designs offers three distinct products (home décor, gift cards and wallets) where
the logo will be displayed consistently on all packaging alternatives. Also, the logo will be used in
stall decoration and positioned prominently on the company website. The branding strategy has
been designed to create consistency, which reinforces brand recognition and fuels customer
loyalty.

Figure 1: Decaf Designs Logo

6.1.4 Product Packaging

Product packaging has been selected based on the various product offered by Decaf Designs.
Firstly, thin transparent sleeves will package the larger A5 prints, while smaller patterned paper
envelopes are used for the A6 prints and origami wallets. Price tags will accompany the products
at the firm’s stall.
The motivation for these selections was cost saving. The products will be displayed unpackaged
to allow customers to browse the designs. Packaging will only be used after products purchases.
Less focus has been placed on the appearance of the packaging to save capital for other business
processes.


6.2 Pricing Strategies

The QUTopia marketplace is a highly competitive environment, yet as a unique product concept,
Decaf Designs have low pricing sensitivity. With a single direct competitor in the QUTopia
market, Decaf Designs can utilise price skimming, market research surveying and forecasting to
develop product prices. Table eleven outlines strengths and weaknesses of each strategy.
Table 11: Pricing Strategies
Pricing Strategies Description

Skimming Skimming refers to the process of setting products at a high price initially, then gradually
lowering them over time to capture the majority of consumers (Business Dictionary, n.d). As
the business has one direct competitor, this method could prove to be a success, or a
disaster. Additionally, due to the circumstances of QUTopia (two separate days of business)
it would be difficult to deploy in such a short time frame.
Surveying Potential consumers were surveyed to determine how much they would be willing to pay for
the products. These prices were then used to calculate an average to determine how the
products should be priced. If customers have valued the product themselves, they may be
more willing to purchase in the future. However, those who said they would pay a lower
price than the average may not purchase the products. Furthermore, survey participants
may not be truthful.
Forecasting Using both business objectives and demand forecasts, price was determined in order to
reach objectives and to avoid a loss in profit. This will ensure the business can reach its goals
and become profitable, but does not take into account the consumer’s value perception.

Each strategy has a unique flaw. The skimming strategy had high risk, and a high price would not
suit the target market’s needs or the brand image. Therefore, surveying and forecasting will be
used cohesively to complement each strategy. This approach to pricing finds the middle ground
between a consumers’ perception of value, and the business’s profitability objective. Based on
the demand of products on market day one, the price may be re-‐evaluated prior to market day
two. The break-‐even analysis indicates that Decaf Designs must sell 66 units before profit will be
made.

Figure 2: Break-‐even Analysis
6.3 Placement Strategies

The observations of the contemporary market (Carseldine Farmers and Artisans market) were
educational by highlighting key factors that Decaf Designs should consider when creating their
own distribution strategy. The main findings are discussed, yet a comprehensive account of the
observations is located in Appendix B.
6.3.1 Distribution Strategy and Logistics

As an infant organisation, Decaf Designs distribution strategy has limitations. In the introductory
of the product life cycle, Decaf Designs use a direct marketing channel with exclusive
distribution. Market research and forecasting ensures sufficient inventory to meet consumer
demand. Finally, by operating through physical selling, Decaf Designs will use sensory
engagement to differentiate from competitors. A comprehensive analysis of Decaf Designs
distribution strategy is located in table twelve.

Table 12: Distribution Strategies
Distribution Decaf Designs Strategy

Consideration
Product Life Cycle Decaf Designs is currently in the ‘Introduction Stage’ of the product life cycle (Grewal,
Stage et al., 2015). During this stage, an organisation operates through one firm. The
organisation must also gain a sense of future viability and possibilities. Considering
this, the distribution coverage that will best suit the organisation is an exclusive
retailing coverage. Exclusive distribution coverage will help create brand awareness,
with the primary retailer representing the product (Grewal, et al., 2015).
Type of Decaf Designs will be operating through a direct marketing channel. In this system,
Distribution no intermediaries are present between the buyers and sellers (Grewal Et Al 2015,
Channel pg.386). Decaf Designs acts as both the seller and manufacturer. Products will sell
directly to consumers with the primary channel of physical selling, but also ordering
through online and social media platforms. The direct distribution channel is the
most appropriate as Decaf Designs is an infant organisation, where innovation and
awareness is key (Grewal, et al., 2015).
Distribution As Decaf Designs is operating through a single retailer, the exclusive distribution
coverage coverage will be implemented. Literature highlights the benefits of exclusive
coverage, with the main advantage being inventory levels and adequate selection of
stock. Exclusive distribution ensures that there is sufficient range and variety of
products to meet customer expectations and needs.
Marketing Logistics All products are created prior to the market days, and packaged when purchased. In
the weeks leading up to the market days, Decaf Designs employees will create
products in advance. Market research and sales forecasting has created estimations
for the expected number of units sold. Based on this data, Decaf Designs can help
accommodate sufficient inventory on both market days. In terms of delivery, Decaf
Designs will use a ‘B to C’ relationship where by the business delivers the product
directly to consumers (Grewal, et al., 2015). Alternatively, ‘B to B’ relationships are
available through selling to other businesses within QUTopia marketplace (Grewal, et
al., 2015).
Supply and Demand To ensure sufficient inventory is available, Decaf Designs will use promotional
activities and market research prior to market days to gauge demand for each
product type. Also, the use of online research and ordering forms will help indicate
how much inventory to produce for market days.
Business ambiance The visit to the Carseldine Farmers and Artisans Market (Appendix B) highlighted
and impact in strategies that Decaf Designs should be aware of when creating the business stall. To
marketplace help achieve the marketing objectives, a key strategy is engaging consumers in a
positive experience. Firstly, Decaf Designs will utilise all of its space by creating a
double-‐sided shop front for the corner stall. A portion of the company mission is to
operate through environmentally sustainable practices. This goal has been replicated
in the stall design. Wooden pallets have been refashioned to create a storefront and
a place for customers to browse products. They will have the opportunity to see and
physically touch the products before they make their purchases. This will provide an
opportunity to interact with the customers as they shop. Additionally, artificial vines
and twine will be displayed around the stall to create an earthy, textured ambiance.
The current lighting in Z-‐block is rather dull, so the use of battery powered fairy lights
around the stall will create a more inviting space. The materials, colours and textures
of storefront are all working together to create earthy, rustic atmosphere and leave a
memorable presence in the marketplace.


6.3.2 Stall Location and Company Objectives

Decaf Designs purchased Stall 11, situated near the main S-‐block entrance to Z block (level 4).
This site was chosen as part of the strategic planning to help Decaf Designs achieve marketing
objectives. As seen by market observations (Appendix B), stall location was extremely beneficial.
The impact of location and consequences for objectives is displayed in table thirteen.
Table 13: Objectives’ Implications
Marketing Objective Impact on Decaf Designs Store Location

Retain 30% By remaining in the same high traffic area for both market days, consumers will know
Customer Loyalty where they can find Decaf Designs. The high exposure stall will give Decaf Designs
the opportunity to engage consumers in a positive shopping experience which in
turn, will make them more inclined to return to the stall.
Achieve 30% The marketing objectives can be achieved with the assistance of the store location.
Profitability Decaf Designs’ high exposure stall, which is designed in an inviting and professional
Achieve 12% manner, will attract customers to approach the business. Research suggests that
Market Share leading conversations with customers can help increase sales for businesses (Tracy,
n.d). By having high levels of foot traffic, Decaf Designs can utilise this stall location to
engage in conversation with potential customers. These tactics can help Decaf
Designs achieve the objective of 30% profitability and consequently, account for 12%
market share.

6.3.3 Stall Features

In the highly competitive QUTopia marketplace, businesses, including Decaf Designs, need to
engage multiple techniques to distinguish themselves from competitors. During the visit to
Carseldine Markets (Appendix B), successful businesses utilised their stall design to ensure
maximum interaction and engagement with consumers. Table fourteen documents the essential
elements that Decaf Designs must evaluate.

Table 14: Stall Features
FEATURES COMMENTS
Location Decaf Designs is located in Stall 11, a non-‐powered site near the S-‐block entrance of Z block level
4. The site is noted as a high exposure area.
Lighting The major lighting source will be provided QUT, Z block. As a stall near the entrance, natural light
will be taken advantage of. In addition, battery powered fairy lights will be used as drapery
around the stall to add additional lightening and create an aesthetically atmosphere.
Potential According to the Business Profile document, stall 11 has 3 neighbours, located in store 12, 18 and
neighbours 19. To the right is store 12, occupied by Urban Wrap that sells culturally inspired cards and
wrapper paper. On the left, is stall 18 owned by Stickers life who are selling unique stickers to
customise individual’s belongings. Additionally, directly behind Decaf Designs, is Balance being
(Stall 19) who market themselves on selling products to alleviate stress for uni students.
Traffic Flow There are 3 main entrances that
consumers can enter the QUTopia
marketplace, which is where the
majority of traffic flow will enter
(outlined in orange). The additional
pathways (outlined in blue) indicate
the flow of foot traffic as consumers
move throughout the market.

Based on the ‘high exposure’ stall
location, it is likely to receive foot
traffic from all 3 major entrances.
Floor coverings The QUTopia market flooring will be used. Based on stall allocation stall 11 will have tiled flooring.
Decaf Designs stall design has not made any plans to cover the floor. A myriad of different
materials have been incorporated that direct consumer focus upwards, so the floor is not a key
feature.
Access to a Stall 11 does not have access to a wall. As a corner stall, there is an increased exposure with ‘two
wall walls’ open to consumers instead of the traditional stall front. To compensate for the lack of wall
access, Decaf Designs are creating a structure that allows product display without the use of
walls. Instead, recycled wooden pallets will be used to fashion an inviting and practical storefront.
Posts Structurally, Decaf Designs do not need to use posts. The pallets form the ideal shop front where
customers can interact with staff and easily see all products. However, creatively, posts would
help display the business name in a prominent place. Decaf Designs is planning to use structures
from the recycled pallets to post/display the business name on the front of stall.
Sound The QUTopia marketplace will accommodate over 60 different business stalls; as such the market
will be extremely noisy and congested. While music would create an inviting ambiance for the
business, the additional noise would be ineffective as a distribution technique. Therefore, Decaf
Designs will not be incorporating music or additional sounds into the stall design.
Impediments There are several weaknesses that Decaf Designs must take into consideration. Despite the stall
being a high exposure area, it is fairly far away from the C-‐block and V-‐block walkway entrances.
This distance gives QUTopia consumers the opportunity to interact with other competitors before
approaching them. Also, being near the main entrance, consumers may walk past stall 11 as they
move towards the center of the marketplace. In doing so, they could potentially ignore Decaf
Designs stall as they are engaged by the other various stall displays. To overcome this, Decaf
Designs staff must be friendly and interactive-‐ greeting all consumers as they enter the market.


6.4 Promotion

Decaf Designs will engage both conventional and modern advertising tactics in order to create a
strong relationship with consumers prior to market day. The table below explores the relevant
promotional mix strategies and how they will be implemented as well as how the 4E’s of social
media marketing are incorporated. In turn, this will promote; brand awareness, positive
customer engagement and will establish a positive relationship with consumers prior to market
day.

Table 15: Promotional Strategies
KEY MESSAGE COMMUNICATIONS PROMOTIONAL TACTICS

MIX ELEMENT
Establishing the Social Media Social media offers the interaction with a wide audience thus
business and corporate creating a platform for the business to engage with potential
social responsibility to customers. Utilising a website and Facebook page Decaf Designs
the environment can promote itself and what it stands for. Drawing from the 4Es of
Social Media Marketing, it will be possible to educate and engage
the target market. Corporate social responsibility holds great
importance to Decaf Designs, which is upheld through an
environmentally friendly manner.
Outlining the benefits Social Media, Interactive Decaf Designs Facebook page is the quickest means of interacting
of the product. Decaf with customers. Every second-‐third day, the Promotions Manager
Designs want to will be posting sneak peaks of designs and the process of making
connect to its main products. Consumers enjoy seeing behind the scenes of
demographic with processes, as they like to feel a part of the process.
relatable
quotes/sayings
Market Research Participation Incentives As market research and knowledge is essential, for those who
participation will be participate go in the draw to win a free product of their choice on
rewarded with a market day 1. Which already draws them to the store, which will
giveaway increase the chance for them to purchase another product (Refer
to Appendix C).
The product is unique Consumer interaction, Customers like to feel unique and important. By offering to make
and customisable. direct sales customisable prints unique for them they’ll have a positive
association with the brand.
To maintain a positive Interactive, social media, To keep up the positive atmosphere that Decaf Designs has, a
atmosphere from the giveaways, consumer weekly competition will be running to engage customers.
business there will be participation/promotion
weekly competitions in
the lead up to QUTopia
Market day.


7.0 Budget

Company Name: Decaf Designs

Other Store Based
Industry: Retailing
Number of team members: 5
($Q)
($AUD)
QUTopi
real
a
currenc
currenc Sub
y
Description y Total Total
01. Estimated Income
Marketing forecasting
revealed 81 units priced
$2,835
at $35 are expected to $2,83
Turnover be sold 5
02. Cost of Sales (Production)

Materials for manufacturing product - $- $-
Paper $5.19 $5.19
Plastic Sleeves and
$11
Packaging Paper envelopes $11
$16.3 $16.3
Total cost of sales 9 9
03. Distribution
High exposure stall -
$500
Stall cost $500 $500
Timber Pallets
(reconstructed to form $-
Cost of stall materials store front)
Battery Powered Fairy $15.0
$15
Cost of stall decoration Lights 0
Peg & Twine Set $7 $7.00
Storage containers - $- $-
Delivery Costs - $- $-
Total distribution costs $522 $522
04. Promotion
Lecture advertising - $- $-
Facebook advertising - $- $-
Sales promotion - $- $-
Team uniforms T-shirts $49 $49.0

0
Total promotion costs $49 $49
05. Other Expenses

Market Research
$250
Market research Survey in Lecture $250
Marketing Manager
Wages/ Salaries $350
$350 $350
Product Manager $300 $300 $300
Pricing Manager $300 $300 $300
Distribution Manager
$300
$300 $300
Promotions Manger
$300
$300 $300
Volunteers/temporary employees $- $-
Sponsor payments $- $-
$12.0
$12
Car parking at Marketdays One Large Car 0
Performance bonus if objectives of $-
MD1 are achieved
$1,80 $1,80
Total other expenses 0 0
$2,38 $2,38
$100 $2,300
06. Total Expenses [02+ 03 + 04+ 05] 8 8
Average Real $ cost per
team member *must not
exceed $80 per team
member - remember
$20.06
that you do not need to
purchase a textbook for
this unit as it the same
book as BSB126.
07. ESTIMATED PROFIT [turnover -

total expenses] $447
Estimated Profitability of the 15.76

organisation %
Calculated as profit/turnover [07/01]


8.0 Implementation Plan

Table 16: Pre-‐Market Day
Action Team member responsible Deadline

Developing M arket Day goals All members 13 September
th
Uniforms Dan & Victoria 20 September

th
Stall Designs Victoria 20 September

th
Product/Packaging making Jessica 20 September

th

Table 17: At Market Day 1

Transport of Stall Jessica and Victoria 7.45am
Stall construction Dan and Dan 8am
Stall interior design Victoria and Jessica 8.15am
Product Display Megan, Victoria and Jessica 8.30am
Financial Preparation (float etc.) Megan 8.45 am
Pre-‐order/com petition winner Jessica 8.45am
preparations
Out of store promotions Dan and Dan 9am
In store promotions Jessica 9am
Custom er service + till Victoria and Megan 9am
Recording purchases Victoria and Megan 9am
Rotate Jobs All members 10am
Record sales, count till and pack All members 12noon
up

Table 18: Post-‐Market day 1/Pre-‐Market Day 2

Restock products Jessica 4 October
th
Analyse trends from market day 1 Daniel Thomas, Victoria and 4 October
th
Daniel Turner
M odify M arket goals All members 4 October
th
Re-‐establish financial goals and Megan 4 October

th
count profit
Promote Pre-‐order Jessica 4 October
th


Table 19: Market Day 2

Transport of Stall Jessica and Victoria 7.45am
Stall construction Dan and Dan 8am
Stall interior design Victoria and Jessica 8.15am
Product Display Megan, Victoria and Jessica 8.30am
Financial Preparation (float etc.) Megan 8.45 am
Pre-‐order/com petition winner Jessica 8.45am
preparations
Out of store promotions Dan and Dan 9am
In store promotions Jessica 9am
Custom er service + till Victoria and Megan 9am
Recording purchases Victoria and Megan 9am
Rotate Jobs All members 10am
Record sales, count till and pack up All members 12noon

Table 20: Post-‐Market Day 2

Financial Calculations (break Megan 18 October
th
even/profit/loss)
Custom er loyalty Victoria 18 th
October
Product statistics Daniel Thomas 18 th
October
Facebook follow up survey Jessica 18 th
October
Celebration All members 18 th
October


References

ABS, 2015. Average Weekly Earnings, Australia, Nov 2015. [Online]

Available at: http://www.abs.gov.au/ausstats/abs@.nsf/mf/6302.0
[Accessed 17 August 2016].
ABS, 2016. Labour Force, Australia, Jun 2016. [Online]

Available at: http://www.abs.gov.au/ausstats/abs@.nsf/mf/6202.0
Australian Government, 2016. Queensland -‐ Unemployment Rate by Labour Force Region. [Online]
Available at:
http://lmip.gov.au/default.aspx?LMIP/LFR_SAFOUR/QLD_LFR_LM_byLFR_UnemploymentRate
Conifer, D., 2016. Election 2016: Where the parties stand on the big issues. [Online]
Available at: http://www.abc.net.au/news/2016-‐05-‐13/election-‐2016-‐policy-‐big-‐issues/7387588
Grewal, D. et al., 2015. Marketing. North Ryde: McGraw Hill Education.
Market skimming pricing. BusinessDictionary.com. Retrieved from BusinessDictionary.com website:

http://www.businessdictionary.com/definition/market-‐skimming-‐pricing.html
QUTopia Bureau of Statistics, 2016. QUTopia Bureau of Statistics reports. [Online]
Available at:
https://blackboard.qut.edu.au/webapps/blackboard/content/listContent.jsp?course_id=_124932
_1&content_id=_6377373_1&mode=view
Tracy, B., n.d. 10 Tips To Increase Profits In Your Business. [Online]
Available at: http://www.briantracy.com/blog/financial-‐success/10-‐tips-‐to-‐increase-‐profits-‐in-‐
your-‐business-‐make-‐more-‐money/
[Accessed 1 September 2016].

Appendix A: Product Checklist

Item Detail Your Response

Is a food license required? http://www.brisbane.qld.gov.au/laws-‐ No
permits/laws-‐permits-‐
businesses/food-‐business-‐ Yes – Appendix B to be
licences/starting-‐new-‐food-‐ completed
business/market-‐food-‐stall
If you have a food, Not Applicable
beverage, candle, or skin
care product. Does your
product have all ingredients
listed on a label attached to
the product?
What are the Please list every item, as we need to -‐ Paper
ingredients/components of check that there are no safety -‐ Printer Ink
your product? No implications with any of the -‐ Adhesive Tape
hazardous materials are to ingredients.
be used e.g. gel candles.
All products require a Please do a Google search using the Our product has a very low risk.
safety label. Some items terms ‘safety’ and your product type Being paper prints, the only
such as recycled clothes to identify potential safety hazards. foreseeable risk is paper cuts
already have this, if your from the paper. The prints will be
product does not have this packaged in plastic sleeves to
you must include this. prevent any danger.

What are the dimensions of Must NOT exceed 1.5m x 1.5m in Height: 2m
your stall? width and depth Width: 1.5m
Depth: 1.2m

Will you be using electricity If so please state the equipment you No, we will be using battery-‐
in your stall? will be using. Please note that you powered fairy lights for
cannot overload the power switches decorative purposes. They will be
with lots of power boards. no power cords and therefore, no
tripping hazard.
Are there any stall features • Examples are: No
that require safety or mess • Boiling water/kettles
precautions? • Esky’s (water condensation Yes – please list the precautions
on floor) you are taking:
• Spillages
• Power cords that require
taping down or hiding behind
stall


Appendix B: Observations of a Market

Location of market: Carseldine Markets

Time, day and date visited: Saturday 20th August 2016, 9:00am
Team members present: Victoria Sergeant (Distribution Manager)

Observations -‐ Busy Stalls
1. What products were being sold?

One of the most noticeably busy stalls was a breakfast
bagel shop called, ‘The Bagelry.’ Here, they sold an
array of different bagels with a variety of sweet and
savoury fillings. There was also the option for the
consumer to purchase the plain bagels ‘takeaway’ at a
lower price.
2. Who were the customers?

As one of the most popular food stalls in the market, ‘The Bagelry’ appealed to a myriad of
customers. The most prominent consumers were young adults and parents with children.
3. How did they attract people’s attention?

The placement of the stall was extremely beneficial to the popularity of the business. The
Bagelry was the first stall when entering the food section of the market. It was at a cross
roads and received high levels of food traffic. Staff members were really engaging, saying
hello to all customers who slowed down when passing the store and offered assistance to
anyone waiting. They also had professional signage displayed on each side of the stall
allowing people to see the business from a distance. Finally, they displayed the wide range of
bagels in a Perspex case at the front of the stall, allowing potential customers to see the
product as they walked past.
4. How do they handle queues?

As each of the bagels was made to order, customers did have to wait several
minutes for their food. The strategic placement of the stall meant that there was
no competitor opposite the Bagelry, instead, there was a small fence opposite the stall,
which allowed a perfect waiting area. The area opposite was too small for another stall, but
made an ideal queuing spot for those waiting.
5. What consumer ‘need’ are they satisfying?

The Bagelry products satisfied the basic utilitarian need of hunger. Yet, the high quality food
and range of options also appealed to consumer’s hedonic needs. With such a range of food
choices, customers engaged their hedonic needs by selecting a food that gave them the most
enjoyment and pleasure.
Observations – Non-‐busy Stalls
1. What are their products?

One of the noticeably quiet stalls was a gentleman
selling a series of homemade ‘wooden items.’ These
included wooden ships, animal shaped clocks and
small novelty shaped tables. The products were all
placed on the floor at the front of the stall.
2. How do staff respond when people walk past?

There was one older gentleman running the stall. He
was sitting in the centre of the gazebo completely a newspaper puzzle. After observing the
stall for a few seconds, I noticed that the gentleman running the business didn’t really look
up or make eye contact with the people passing by who were potential customers.
3. Why do you think their stall is not busy?

There were several clear reasons why the stall was not busy. Firstly, the stall had no business
name; there was no signage to indicate what business was occupying the space. The only
information that alluded to the products available was a paper printed sign ‘SHIP AND
WOODEN ITEMS. HOMEMADE, SELL CHEAP.’ Furthermore, the products were placed directly

on the ground, with no sheeting or protective cover. The man running the stall was
sitting directly in the middle of the space and the location of the stall meant there
was no place for patrons to stop and look at the products without blocking the footpath.
Finally, the lack of interest from the stall owner contributed to the low traffic the stall was
receiving.
4. What could they do to improve sales?

The sales of the business could be vastly improved by taking greater pride in the appearance
of the stall. Creating a business sign, that is clearly displayed and setting up tables around the
perimeter of the stall as a place to present the products would be extremely beneficial. By
placing the products around the inside it will create a space for potential customers to enter
and shop around without hindering the footpath. Finally, involvement from the storeowner is
integral and if he were to be more engaging, creating eye contact and greeting those who
walk past, he would likely experience more sales. All of the aforementioned suggestions
would greatly improve the business operating at the stall.


Appendix C: Social Media Promotion


Amb240 Marketing Plan Final 1

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Amb240 Marketing Plan Final 1

Uploaded by

Copyright:

Available Formats

AMB240 Marketing Planning & Management

Daniel Turner N9175946

Decaf Designs Page | 1

Decaf Designs Page | 2

2.0 The Company

2.2 Marketing Team

Position Team Member

3.0 Situation Analysis

3.1.1 Market Need

Decaf Designs Page | 3

3.1.2 PEST Analysis

Environment Trends/Issues Implications for the product

Decaf Designs Page | 4

Business Product Outline/M ission

Decaf Designs Page | 5

Table 4: Competitor Analysis

CARDBOARD Bent Bottles Ants in your Plants?

Decaf Designs Page | 6

Table 5: SWOT Analysis

3.4 Situation Analysis Summary

Single Shot Decaf Lovers Full Strength Brew

Decaf Designs Page | 8

4.2 Target Market

4.3 Market Size, Demand, and Potential

QUTopia: Forecasting demand

5.0 Marketing Objectives and Metrics

5.1 Positioning and Competitive Advantage

5.1.2 Competitive Advantage

The aforementioned analysis of competitors within the QUTopia marketplace revealed up to

Decaf Designs Page | 10

5.2 Objectives and Metrics

Table 8: Decaf Designs’ Objectives

Decaf Designs Page | 11

6.1 Product Strategies

Table 9: Product Options

6.1.2 Product Value

Decaf Designs Page | 12

6.1.4 Product Packaging

Table 11: Pricing Strategies

Pricing Strategies Description

Decaf Designs Page | 14

Figure 2: Break-­‐even Analysis

6.3 Placement Strategies

6.3.1 Distribution Strategy and Logistics

Decaf Designs Page | 15

Distribution Decaf Designs Strategy

Decaf Designs Page | 16

6.3.2 Stall Location and Company Objectives

Table 13: Objectives’ Implications

Marketing Objective Impact on Decaf Designs Store Location

6.3.3 Stall Features

Decaf Designs Page | 17

Decaf Designs Page | 18

KEY MESSAGE COMMUNICATIONS PROMOTIONAL TACTICS

Company Name: Decaf Designs

02. Cost of Sales (Production)

05. Other Expenses

07. ESTIMATED PROFIT [turnover -

Estimated Profitability of the 15.76

Decaf Designs Page | 21

Action Team member responsible Deadline

Uniforms Dan & Victoria 20 September

Stall Designs Victoria 20 September

Figure 2: Break-‐even Analysis

Re-‐establish financial goals and Megan 4 October

Observations -‐ Busy Stalls

Observations – Non-‐busy Stalls