Wednesday, December 4, 2019
Marketing Strategy Recommendations for Bindle Online/Offline
Question: Describe about the Marketing Strategy Recommendations for Bindle Online/Offline. Answer: Background Summary Summary of Findings Industry Overview The gift industry both online and offline in the Australian region reflects a growing trend in terms of revenue generation and also through the generation of innovative gift solutions that attract the youth consumers in the market. Macro and Micro Analysis Macro Analysis The macro analysis for Bindle reflect that the macro environmental variables like political, economic, social, technological, cultural paradigms all have positive impacts on the conducting of operations for the gift store in the Australian market. Micro Analysis The micro analysis for Bindle in the Australian market reflects that the gift store company tends to gain competitive advantage over its competitors in the regional and national market. Description of Target Market and Customer Profiles Target Market The target market for Bindles in Australia consists of young consumers pertaining to the high income category thereby reflecting lavish lifestyles. Customer Profiles Consumer groups for Bindle belong to the age groups ranging from 20 to 39 years. Further, the consumers belonging to the middle and high income groups reflect lavish lifestyles and are connoisseurs of boutique gift products. Differentiation and Positioning Strategies Bindle focuses on differentiating and positioning itself in the gift market in Australia through the rendering of boutique gift products and wrapping solutions. Outline of Structure The report focuses on reflecting the product portfolio of Bindle while also focuses on understanding its pricing, distribution and promotional decisions for developing an effective presence in the Australian market. Products and Services Three Levels of Product Core Product Bindle provides innovative and creative gift wrappers and boxes that contribute in meeting the emotional needs of its customer groups. Further, the gifts generated by Bindle for different consumer categories like men, women, kids, infants, mothers and also corporate gifts rightly serve the needs for different themes and events(Bindle , 2016). Actual Product Bindle generates different types of products for different consumer categories like men, women, kids and also product solutions for corporate firms. Further, the gifts are packed in artistic and boutique gift boxes that help in meeting the gifting needs and expectations of its customers in an enhanced fashion(Bindle , 2016). Augmented Product Value additions are generated by Bindle in the form of using quality wrapping papers that contribute in enhancing the gifting experiences of its domestic and corporate clients. Enhancements in Bindles wrapping activities are generated based on the incorporation of Japanese origami and also through tying and folding the gifts in the wrappers. The above feature contributes in generating an enhanced unwrapping experience for the consumers(Bindle , 2016). Product Life Cycle (PLC) The product life cycle analysis for Bindle reflects that the gift company lies in the growth stage of the PLC curve. Being in the growth stage the gift company continually focuses on generating new gift offerings for continually serving the anticipated needs of its customers. Further, Bindle also focuses on generating effective promotional programs for attracting the mindset of potential consumer groups(Kaser, 2012). Branding and Brand Development Branding Strategies Bindle needs to effectively focus on the incorporation of umbrella branding strategies such that the company can use the family or company name for offering different types of gifting and packaging solutions to its clients. The use of umbrella or family branding strategy contributes in generating considerable awareness about the company brand to the customers. Use of umbrella branding strategies ideally requires the gift company, Bindle to continually focus on enhancing the standard and quality of the gifting and packaging standards for enhancing customer loyalty and satisfaction(Perrey Spillecke, 2013). Brand Development Bindle needs to focus on the incorporation of different types of brand development initiatives underlined as follows. Bindles management needs to focus on the continual development of wrapping and packaging quality and styles such that same helps in enhancing the level of customer experiences. Similarly, Bindle also needs to focus on the using of different communication mediums and interfaces like online, mobile and also broadcasting mediums for generation of potential information about the company brand, new and aesthetic gifting and wrapping solutions to its target customers(Lopez, 2013). Packaging and Labelling Packaging Differentiated packaging strategies can be incorporated by Bindle for helping in the generation of right kind of packaging solutions for different kinds of gift merchandises marketed by the company. Bindle can also focus on the generation of customised packaging solutions such that the same reflects regional or ethnic designs, styles and arts suiting customer needs of various regions(Kolb, 2016). Labelling In terms of labelling, Bindle needs to potentially focus on the generation of effective information for helping in providing needed knowhow about the products packed and delivered. Further, Bindle also requires the generation of labels in different languages that contributes in enhancing the customer responsive image of the company in the target market(Langton, 2012). Product Mix/Product Line Decisions An effective assortment of product line associated with the generation of different types of boutique parcels, gift baskets, fruit boutiques, chocolate and cake boxes and other baby item packs are rendered by Bindle for meeting the gifting needs of customers. Further, different types of gifting solutions are developed for corporate customers, bathroom luxuries and also for his and her categories(Bindle , 2016). Pricing Major Pricing Strategies Cost Based Cost based pricing strategies essentially focuses on adding a percentage of the total cost required for the development of gifting and packaging solutions in the prices of the gifts and product packs. The use of cost based pricing strategy helps in easy calculation of the optimal pricing level for generating needed revenues for Bindle(AECOM, 2014). Customer Value Based Value-based pricing techniques are considered as an effective pricing technique such that the same would encourage the customers to pay an effective price for the products and services rendered by the company. Moreover the use of value based pricing technique also would help Bindle gain increased exposure to customers both along a regional and national level. Value based pricing technique in helping the customers gain value from the purchases made ideally contribute in attracting larger numbers of customers to procure and avail the gifting products and packaging services of Bindle(Tsiakis, 2015). Competition Based Regarding the use of competition based pricing, Bindle is required to set prices for its gifting and packaging solutions based on comparing with the prices generated by its closest competitors in the Australian market. The generation of lower prices for the gifts and packaging solutions compared to its competitor firms would help Bindle in attracting potential customers from the larger target market(Pride, 2013). Internal and External Consideration The internal and external factor considerations affecting and influencing the pricing decisions of a firm are effectively illustrated in the following illustration. New Product Pricing Strategies Different types of pricing techniques can be used by Bindle regarding the introduction of new gifting ideas, solutions and other packaging techniques for its domestic and corporate client groups. The company can focus on using Penetrating Pricing technique through the generation of lower prices for the gifting and packaging solutions. The same would help in gaining increased market penetration for Bindle. The use of Segmented Pricing technique can also be used based on generating differentiated prices for different gifting products and wrapping solutions catering to the need for customers pertaining to different income categories(Pride, 2013). Product Mix Pricing Strategies Different types of product mix pricing techniques like the product line pricing, captive product pricing and also the product-bundle pricing can be incorporated by Bindle. Product-line pricing requires different prices to be set for gifting products and wrapping solutions depending on the costs incurred for producing such. Captive product pricing requires Bindle for setting of prices of complimentary products like boutique wrapping and packaging solutions along with the setting of prices for the different gift products. Finally, product-bundle pricing technique can also be used by Bindle based on generation of different prices for gift bundles or packs generated by the company(Whittington, 2013). Place/Distribution Supply Chain Structure Bindle focuses on supplying and distributing its gifting solutions and packages through the incorporation of both wholesale and retail firms. The supply of gift products to multi-brand retailers dealing with different gift and showcase items contribute in gaining needed exposure in the target market. Further, Bindle can also focus on the generation of exclusive stores or outlets for generating an effective presence in the gift market. Further, Bindle can also focus on the incorporation of multi-channel platforms like mobile and electronic commerce, website marketing and also the social media platforms for reaching a larger section of consumers(Agrawal Smith, 2015). Members in the Supply Channel The different members in the supply chain channel for Bindle can be effectively reflected in the following illustration. Organisation of the Supply Channel The supply channel of Bindle operates based on effective collaboration with its different channel partners. The formation of collaborative relationships ideally contributes in the sharing of needed information between the different stakeholders involved in the supply chain network. The same reduces the risk associated with the supply chain functions. Further, partnership and tiers can be generated by the organisation with the members involved in the supply chain network that contributes in conducting and continuing the supply chain operations in an effective fashion. Finally, the different firms involved in manufacturing, retailing, distributing and also the logistic firms can operate in an integrated fashion as a total unit. The integration function between the different firms though would help to reduce costs but would reduce the flexibility of the company in gaining new suppliers in future(Sabri, 2015). Rationale for Suggested Modifications in Supply Chain Diagram Bindle can focus on the development of potential partnerships and tie ups with different supply chain partners like the producing companies of the different gift products, suppliers of high quality wrapping papers, logistic companies and also financing firms such that it contributes in the ease of flow of information and decision making activities in an effective fashion. Promotional Mix The promotional mix or Integrated Communication Marketing mix for Bindle can be effectively developed based on the integration of different types of promotional and communication mediums like broadcasting, print, online and also the use of outdoor marketing and promotional activities. The broadcasting medium like the use of television and radio can be potentially incorporated by Bindle for the development of multimedia advertisements that would help in effectively promoting the gift store to target masses in the Australian markets. Similarly, print mediums like use of newspapers and magazines can also be incorporated by Bindle for advertising its gift products and wrapping solutions to its clients in the regional and national market. Online mediums in the form of website and other social media marketing platforms like Facebook, Twitter and YouTube can be potentially incorporated by Bindle for generating increased awareness about its gifting and wrapping solutions. Finally, the use of personal and direct selling approach can also be effectively undertaken by Bindle for directly selling the gifting and wrapping solutions to corporate clientele(Pride, 2013). Conclusions Summary of Assessment 1 and 2 Assessment 1 reflects the positive impacts of the macro and micro environmental variables on Bindle while Assessment 2 reflects on the product, pricing, distribution and promotional decisions of Bindle helping in developing an effective presence in the Australian gift market. Implications and Practical Steps for Bindle Bindle is required to use the value based pricing such that the same influences the customers for generating needed prices out of the value gained from the procurement of different gifts and packaging solutions. Bindle also needs to focus on the development of an effective promotional mix for potentially and optimally promoting the gifts and wrapping solutions to the target market. It also needs to develop an integrated network with potential members in the supply chain network for helping in the reduction of supply chain costs and also in the transmission of needed information for decision making activities. References AECOM, 2014. Spon's Mechanical and Electrical Services Price, Book 2015. United Kingdom : CRC Press. Agrawal, N. Smith, S.A., 2015. Retail Supply Chain Management: Quantitative Models and Empirical Studies. United Kingdom : Springer. Bindle , 2016. About Bindle Gifts. [Online] Available at: https://bindle.com.au/ [Accessed 18 September 2016]. Kaser, K., 2012. Advertising and Sales Promotion. United States : Cengage Learning. Kolb, B.M., 2016. Marketing Strategy for Creative and Cultural Industries. New York : Routledge. Langton, P.D., 2012. Essential Guide to Reading Biomedical Papers: Recognising and Interpreting Best Practice. United Kingdom : John Wiley and Sons. Lopez, D., 2013. Brand Development of Coca-Cola Company (UK). 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