Marketing mix essay

Establish and Adjust the Marketing Mix Summary ————————————————- The largest moto fashion retrailer in AUS is the slogan of Braaap. This paper would explained the market mix strategies used at Braaap to become a successful company in business of dirt bike, pit bike and mini bike. Pricing, Promotion, Products, Channels of distribution and Customer Serviced are the key ingredients at Braaap. The report would give the samples approaching to customer. Pit bike, Dirt Bike, Mini Bike and their parts and accessories are available to shop online and in store.

Braaap offers their own brand name bike or other major brands including: ProTaper, Renthal, Daytona, Elka and Castrol. Braaap refers their bike as the best dirt bike of its type in the world. It is assembled by Braaap’s mechanics base in Australia. There are 4 superstores branches around Australia. Not only bikes are the products at Braaap, other fashion accessories are the main products too. Action sports equipments, for example, helmets, riding gear, T-shirt, shoes, jeans and spare parts of bikes are available to shop. Pricing Policy and Customers Q3, Q5] At Braaap, the price of products is various.

For the price of accessories and spare parts is divided into 4 ranges * $0 – $24. 99 * $25 – $49. 99 * $50 – $249. 99 * and over $250 Additionally, Braaap also offers the payment plan for those who cannot afford a bike with $3 a day for a bike. The law of demands is often referred as Consumer wants to buy more of a product at a low price and less of a product at a high price. This inversion of demand and price shows that the higher price of products the less willing to buy. However, there are amount of people who purchase a higher price product because they believe a product is better in quality. At Braaap, they offer the products to attach customers at different level.

The main customer of Braaap is a young-adult who has a passion in this sport. As to answer their passion, they intend to buy a good quality product or branded name even though the price is more expensive. Therefore to have payment plan or loan program that would help to increase the demand to purchase high-end brand bike. For the beginner the lower price products raise the demand of this group of consumer.

The prices range from $0 – $49. 99 would answer the demand of beginner whereas the higher price for group over $250 as well as the loan campaign would target to the expert or sport lover group. Importance of Market Outcome [Q4] Promotional Methods Promotion is a tool to play in the marketing mix. It enables the shop to influence the purchase behavioral. Using promotion along with other tools such as Advertising and personal selling would enhance the chance to succeed in market share.

The big promotion at Braaap is to be able to decide the payment plan and leasing for bike. The customer would spend a lot of time to make decision before the purchase is done when they look to pay over $1, 000 for a bike. However, to create the promotion where only $3 a day can own a bike would create greater opportunity to bring new / existing customer to purchase. Additionally, at Braaap you can see the promotion to lower the price. This promotion mechanism is a good tool when the owner would like to sell any particular parts or accessories by reducing price to get more attention of customer and increase a chance to buy (even if a consumer may never want).

Channels of DistributionA channel of Distribution refers to the marketing middle man who joins together to transport or store products from producer to consumer. At Braaap to distribute the product, the strategy is to have multi-branches in different areas. According to the website, there are 4 superstores located in two states, VICTORIA and TASMANIA.

The more number of branches Braaap has the greater opportunity to access to the consumer. Additionally, Braaap also looks for new franchise to join. This would create the more opportunity and ease the process to deliver products to customer as it would be closer to them. Level of Customer Serviced Provided Without the customer, there would be no business. Therefore, it is very important to create the customer satisfaction and customer service either to maintain the good relationship with them or to bring them back to buy more. At Braaap, there is a section called “ Latest News” where news is often updated. Therefore, it is a mechanism to keep in touch with the customer.

Moreover, the lifetime warranty on Braaap bike. It can ensure the customer to be able to come back to them either for maintenance the bike or for accessories. Component of Marketing Mix [Q6]There are four components to create the marketing mix strategy: 1) Products A product is what the consumer purchases and makes use of it. The strength of products is direct correlation to willing to buy. Higher quality of products would cause the higher demand rather than poor quality. At Braaap, the bike is known as the best bike. Therefore, it is attracted the consumers to come and purchase especially the loyal customers who love in this sport.

2) Price Pricing is important in term of strategy. The lower price isn’t always guaranteeing the higher selling rate. Therefore at Braaap, the price range is various to answer all level of customers need. Including the loan payment helps increasing the chance of selling 3) Channels of distribution Channels of distribution are important in term of getting to customer, warehouse management and distribution to customer.

The more branches would ease the customer to access as well as to distribute stock all over countries. Therefore, it is not necessary to store everything at a branch but spread among branches. Online market is also additional tool at Braaap is used to enhance the market opportunity where the customer can purchase goods online. ) Campaign / Promotion offers Promotion is one of a market tool to succeed in business. Price reduction or special price would bring the new customer or existing customer to come back and purchase the products. Customer base at Braaap is young-adult who is passionate in dirt bike sport.

Since they are young, their finance situation may not allow them to pay a huge amount out of pocket at a time. Therefore, to have promotion such as loan or payment plan would increase the sales opportunity. External Environment Factor [Q7] The external environment factor is a factor that has an impact and happens outside the business. The most common external environment factor is refereed as the competitor, the legal system, the economics etc. Competitor is a top factor that has directly impact on the business at Braaap. The competitor at Braaap is other motorcycle shop who offers the same or similar products and goods. If the customer prefers to shop at other competitor stores, it means Braaap is losing the margin in business.

Another factor with also relatively direct to Braaap business is Australian’s economy. To purchase a new motorcycle or bike means the customer must have purchasing power and is willing to pay. Therefore, when Australia has a good economy means the higher purchase power and when economy is bad, it reduces the will to purchase. Last but not least, since Braaap bike is exported to sell in an international market. The exchange rate would become the significant external environment factor and impacts directly for the international clients. If Australian dollar is strong, it means the bike could be more expensive than the others and it would reduce demand as a result. Consumer Priorities and Preferences [Q8] Customer is motivated by a variety of needs.

The customer prioritizes and response to their needs accordingly. Therefore, it is necessary to know what is the most important and what is the next most important to the clients. The consumer priorities can be different between the customers. The different factors cause the various needs. For example the people at young age, they may prefer to go with the brand name stuffs and well known products since it would look good on them where as the adult would consider the other factors such as safety, comfortable, warranty, after sale service, and financial situation. Another factor is sex; man leans to fall in love with the extreme sports more than woman. The assumption on what customer’s need is not rigid.

The best approach is to ask them and get the feedback from the customers. Also, their needs would indicate the direction or trend of the market so as business owner can plan on promotion or set up proper price for the customers. Evaluate New Products against Market [Q9] The first step in product development is to generate a new business idea which is unique and difference from others in the same business. Additionally, the product also should answer the needs of customer. Safety and Comfortable for the bike is the key of product development in car industry.

A new model of bike that increases the safety during riding can be launch in the market and meets the demand of customer. As known Motorcycle is less safe compared to car, therefore to strengthen the weakness point of motorbike would help to get new face who is hesitating to try bike. The marketer should also aware of product life cycle such as how long the product would last in industry before the new product come to market. This would be a good tool to know when the new product should be launched into market. By positioned products strength, and target to answer the needs of customer it would cause the success in marketing objectives.

Assess Marketing Mix in relation of Organizational, Strategic and Operational Marketing Objectives [Q10] Marketing Mix may be included with: * Product Variable In term of products and services provided at Braaap, the product is strengthen in term of durability and wide ranges of bike size. Including multi kinds of product is available at the shop from fashionable to safety accessories. However, safety would still be an issue when it comes to riding bike. The product could be improved to close the gap. * Pricing Variable Leasing arrangement is available at the store as well as discount percentage which can be found on online website. This would help to enhance the sales performance. * Distribution Variable At the moment only four franchisees available in two states, the business has higher potential if grows to another state such as NSW where the highest population rate city is there. Also, Internet shopping is becoming a tool at Braaap use to get access to their customer who can purchase online anytime any place.

* Promotional VariableIn term of promotion, the web site doesn’t do much of advertising for the sales products. The customer must select on the category before can see what sales item would reside. It can be improved by putting more advertising and sales promotion on top of page as well as to increase the direct marketing to member or customer of shop with special promotion to come back and re-purchase. * Customer Service Variable It is important for after sales service to be good. As mentioned, Braaap has their mechanic teams whom are expert in assemble bike and fixing. Also the lifetime warranty is a key player to get the customer back for their good service.