MRKT11029 Marketing Fundamentals Term 1 2016 Assessment 3 - Barkwood 2 June 2016   BARKWOOD PRODUCT LAUNCH The Barkwood product will be launched on 11 June 2016, this has been selected based on it being the dry season (Bureau of Meteorology) allowing good presentation. It is also the low season for weddings within Australia (Australian Bureau of Statistics) which would allow time to build a client base, develop key business contacts and establish processes for the business operation. THREE MARKETING OBJECTIVES Within the first six months from product launch, Barkwood's three key marketing objectives are: • Objective 1: Develop relationships with key supplier and industry specialists – Barkwood will build relationships to gain industry knowledge and receive referrals. All key suppliers and industry specialists will be invited to Barkwood's product launch allowing the product to be showcased. Barkwood's Sales Manager will proactively market the business with sales calls, venue visits and attendance at key industry events. By 30 November 2016 the following will be established: - A suppliers and industry contact database. - A calendar of marketing events including expos, tourism trade shows and key business events. • Objective 2: Implementation of digital marketing – Barkwood will establish a website and a high social media presence on Facebook, Instagram and Twitter utilising Search Engine Optimization (SEO), Facebook Advertisement Campaigns, Online Partnerships and Email Marketing. By 30 November 2016 Barkwood will have 500 Facebook likes, 300 Instagram followers, and 2,000 views per month on their website. • Objective 3: Secure wedding bookings –Through digital marketing, referrals, expos and familiarisation visits direct contact will be established with customers. By the 30 November 2016 a minimum of 10 wedding bookings will be secured with an average value of each of $25,000 (Jagger, 2014).   MARKET SEGMENTATION, TARGETED CUSTOMERS & INTENDED MARKET POSITION Barkwood's customer-driven marketing strategy will use a market segmentation approach. This will enable Barkwood to segment their potential customers by defining specific 'homogeneous groups' (Legohérel & Wong, 2006, p.15). Using market segmentation, Barkwood will undertake a differentiated marketing strategy approach. This strategy allows the business to target a number of segments by designing and using specialised offers aimed to suit the needs and wants of each market segment (Armstrong, Adam, Denize & Kotler, 2015). The two segments which will be Barkwood's focus are: • Geographic – the local market and Asia Pacific. • Demographic – based on age, religion and budget. The targeted groups within these segments have been identified as: Profile 1 – • Engaged couples seeking a wedding venue. Gender Female and Male Age 27-30 – Research by the Australian Bureau of Statistics shows that the median age to be married within Australia was between the ages of 28 to 32 (2014). Location Asia Pacific – Research shows that 55% of couples married within Australia were both born in Australia, the remaining 45% shows couples where one or both were born in another country (Madden, 2015). The number of destination weddings has grown greatly in popularity over the years, it would be beneficial for Barkwood to target a wide market location. Details Engaged, seeking a wedding venue – a survey of over 21,000 couples show that only 19% of brides hire wedding planners to organise their weddings (Simcha, 2010), therefore it would be beneficial for Barkwood to target couples directly. Profile 2 – Client seeking a function venue Gender Female and Male Age 20 – 60 – Research by the Australian Bureau of Statistics shows the labour force participation rate is at its highest between the ages of 20 to 60 (2012). Therefore, Barkwood would target clients with regular income. Location Asia Pacific (refer to Appendix 1) – Cairns is a tourist destination, therefore it would be beneficial for Barkwood to target local clients, domestic clients and international clients. Details Seeking venue for birthday, conference or other special event. Barkwood will intend a "more-for-less" product positioning. This offers more value for a much lesser price. Barkwood has the ability to do this as the venue is owned by the business, therefore there will be a greater allowance to offer more value to clients. Undertaking this positioning will allow Barkwood to have a competitive advantage against competitors.   PRODUCT & PRICING STRATEGY Barkwood's product strategy can be separated into three aspects: • The Core Product – Barkwood offers an economical and convenient wedding conference or special event venue. The unique rustic atmosphere of the venue is not offered anywhere else within the region. • The Actual Product - Barkwood is a self-contained venue surrounded by rainforest in the village of Kuranda. The traditional barn has the capacity to accommodate up to 150 guests with facilities that include a licensed bar, full commercial kitchen, bridal/groom dressing rooms and outdoor rainforest backdrops suitable for photography or wedding ceremonies. • The Augmented Product - Barkwood customises the product to suit the client's wants and needs. Packages can include but are not limited to full catering with quality food and beverages, guest transport, venue theming, entertainment and celebrant services. Barkwood also offers the option to self-cater food, making it an economical alternative. The Barkwood brand will have a well-designed visual identity which will set itself apart from its competitors. Natural colours, a simple logo will provide a warm and inviting elegant feel. The unique rainforest backdrop and rustic atmosphere will be reflected in the interior design and marketing collateral which will provide visual and emotional cues to potential clients. Part of Barkwood's ongoing product development plan is to introduce special events such as Valentine's Day and Christmas Day lunches and dinners. This will allow clients the opportunity to dine and experience Barkwood without booking the entire venue. The growth of the Barkwood business is predicted to be slow within the first six months as it will take time for the market to grow product awareness (Armstrong, Adam, Denize & Kotler, 2015). During this period Barkwood will undertake a price penetration approach to their pricing strategy. This approach allows the business to have a competitive advantage by setting a low initial price. As the business gains product awareness and value Barkwood will be able to raise the price to a more profitable level (Maguire, 2016). Barkwood's initial profit is predicted to be low as they will incur high promotion expenses within the first few months of operating. When determining Barkwood's initial pricing structure the impacts of factors such as operating and advertising costs and competitors pricing have been taken into consideration. Barkwood's initial prices in Australian dollars are: Venue Hire Friday, Saturday, Sunday & Public Holidays Half Day 8am – 12pm $800 Half Day 2pm - midnight $1,500 Full Day 8am - midnight $2,000 Monday, Tuesday, Wednesday & Thursday Half Day 8am – 12pm $400 Half Day 2pm - midnight $750 Full Day 8am - midnight $1000 Included in this is table seating for 150 guests, 20 tables. Crockery, cutlery and theming is not included in the self-catering option. Barkwood's philosophy is to tailor make an event to suit the client's needs. The only restriction is that alcohol is not to be brought onto the premises with it having to be supplied if required by Barkwood. Optional extras (minimum numbers apply): Catering Canapes $2 - $4 per piece BBQ Feast $40 per person Rainforest Banquet $65 per person Tropical Seafood Buffet $99 per person Beverage Package Includes selection of wine and beer $30-$70 per person (can also be purchased on consumption). Wedding / Events Planner Designated person allocated to manage event. To be quoted on per event. Extras Barkwood can also organise the following through their preferred suppliers dependent on the client's requirements: Theming, Flowers, Equipment, Entertainment, Transport, and Celebrant Services. PLACEMENT & PROMOTION STRATEGY Barkwood is located in Kuranda in Far North Queensland. In order for clients to utilise the product, they need to travel to the venue. It is approximately 31 minutes from Cairns Airport by car via the national route (Google Maps, 2016). Guests can be transported via car, taxi or private bus. There is accommodation located within an easy walking distance. Barkwood's target customers are located in the Asia Pacific region, however it is envisaged that during the first months of operation the majority of customers will come from the local market. Far North Queensland has a population of 252,533 (Office of Economic and Statistical Research, 2011) of this approximately 30 percent are aged within the target market (Office of Economic and Statistical Research, 2011). The product is tailor made to client requirements depending on what these are will determine the level of customer service required. Service will be provided by utilising local suppliers i.e. caterers, theming companies, transport operators. This will require Barkwood to negotiate prices and contracts with these key suppliers Stock levels will be kept to a minimum, with ordering to be completed when required. By doing this will reduce the levels of wastage and unnecessary costs which will allow more funding for promotion. In the introduction stage of Barkwood promotion costs will be high (Armstrong, Adam, Denize & Kotler, 2015). Barkwood's promotion mix will include the following promotion tools: • Advertising – Barkwood will advertise on the local radio, in wedding magazines and in the local newspaper. • Sales promotion – Barkwood will hold special functions that will allow suppliers, industry specialists and potential clients to familiarise themselves with the Barkwood product. • Personal selling – Barkwood will have a Sales Manager who will actively seek to acquire new business. • Public relations – Barkwood will attend industry functions to develop important industry contacts. • Digital marketing – Barkwood's key marketing tool will be digital marketing. They will utilise platforms such as Facebook, Instagram and Twitter. Digital marketing is a very cost effective approach and provides access to attract their target clients directly. ACTION PROGRAM • Barkwood will be launched in June 2016, in the initial six months an action program will be place in order for Barkwood to achieve its marketing strategy and its three marketing objectives. The Sales Manager will be predominately responsible for the majority of these activities under this program. ACTION RESPONSIBLE June Photoshoot of venue for marketing collateral. General Manager & Sales Manager Negotiate contracts with key suppliers. General Manager Website created. Office Manager & Sales Manager Invitations to industry specialists, suppliers and key stakeholders will be sent out, inviting them to the product launch. Office Manager & Sales Manager Barkwood will be launched on the 11th of June 2016. All Staff Sales calls. Visit launch attendees and provide marketing collateral, further pricing information Sales Manager July Begin a social media campaign targeted towards the identified target market that will showcase Barkwood. Sales Manager & Office Manager Develop an online social media presence, connecting with potential clients. Sales Manager & Office Manager Meet with accommodation providers to build relationships and obtain referrals. They will proactively invite potential clients for familiarisation tours. General Manager & Sales Manager August Attend the Far North Queensland wedding expo. Sales Manager Develop relationships by calling and meeting with clients. Invite potential clients to open day (September). Sales Manager Provide incentives for bookings made this financial year. General Manager September Hold open day at Barkwood, with advertising on radio and in newspapers. All Staff Work with local radio to promote venue for potential Christmas functions. Also promoting via a mail out campaign to local businesses and on social media. Sales Manager October Attend the Queensland Tourism expo. Sales Manager Partner with accommodation suppliers and introduce a package deal. General Manager & Sales Manger November Re-look at pricing strategy. Potential price increase for 2017. General Manager Invitations sent out to industry specialists, suppliers and key stakeholders inviting them to Barkwood's Christmas party. Office Manager / Sales Manager   REFERENCES Armstrong, G.M., Adam, S., Denize, S.M., & Kotler, P. (2015). Principles of marketing (6th ed.). Melbourne, VIC: Pearson Australia. Australian Bureau of Statistics. (2012). Labour Force. Retrieved from: http://www.abs.gov.au/ausstats/[email protected]/Lookup/by+Subject/4125.0~Jan+2012~Main+Features~Labour+force~1110 Google Maps. (2016). From Kuranda QLD to Cairns Airport, Airport Avenue, Cairns City QLD 4870. Retrieved from: https://www.google.com.au/?gfepopp_rd=cr&ei=GmJNV8XEK9HN8gfospLwCA#q=from+kuranda+to+cairns+airport Jagger, C. (2015). The Average Australian Wedding. Retrieved from: http://www.lifehacker.com.au/2014/02/the-average-australian-wedding-costs-36200-infographic/ Legohérel, P., & Wong, K. F. (2006). Market Segmentation in the Tourism Industry and Consumers' Spending: What About Direct Expenditures?. Journal of Travel & Tourism Marketing, 20(2), 15-30. doi:10.1300/J073v20n02-02 Madden, C. (2015). Fast Facts on Marriages within Australia. Retrieved from: http://mccrindle.com.au/the-mccrindle-blog/marriages-in-australia Maguire, A. (2016). How to Price Your Products and Services for Maximum Market Penetration. Retrieved from: http://quickbooks.intuit.com/r/pricing-strategy/how-to-price-your-products-and-services-for-maximum-market-penetration/ Office of Economics and Statistical Research. (2011). Population and Dwelling Profile. Retrieved from: http://www.qgso.qld.gov.au/products/reports/pop-housing-profiles-reg-planning/pop-housing-profiles-fnq.pdf Simcha, C. (2010). 12 Wedding Statistics that'll Surprise You. Retrieved from: http://www.thefrisky.com/2010-06-11/12-wedding-statistics-thatll-surprise-you/