HunteHunter Boot Marketing Mix Strategies
Marketing strategy is a process that can allow Hunter Boot to concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable competitive advantage (Baker M 2008).
Marketing strategy includes all basic and long-term activities in the field of marketing that deal with the analysis of the strategic initial situation of Hunter Boot and the formulation, evaluation and selection of market-oriented strategies and therefore contributes to the goals of the Hunter Boot and its marketing objectives (Christian et al, 2008) Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketing objectives.
HunteHunter Boot Marketing Mix Strategies Essay Example
Plans and objectives are generally tested for measurable results. Marketing strategy involves careful scanning of the internal and external environments. Internal environmental factors include the marketing mix plus performance analysis and strategic constraints. External environmental factors include customer analysis, competitor analysis, target market analysis, as well as evaluation of any elements of the technological, economic, cultural or political/legal environment likely to impact Hunter Boot’s success (Aaker D 2008).
Marketing Plan Marketing plan is a comprehensive blueprint which outlines Hunter Boot’s overall marketing efforts. Marketing plan describes the marketing environment, outlines the Hunter Boot’s marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy. Hunter Boot’s marketing planning consists of following steps: (1) Perform a situation analysis Background data on the market, product, competition, distribution and macro environment (2) Set marketing objectives
Defines financial or marketing objectives, eg sales volume, cash flow; change in market share, average selling price (3) Marketing Strategies ( Module 5- 10) Develop marketing strategies to achieve marketing objectives Select target market(s) where the firm’s offerings are best suited Develop marketing mix strategies: Presents broad marketing approach that will be used to reach target segments and achieve the plan’s objectives (positioning). Details the elements in the mix – what will be done or changed with respect to each, to support the objectives.
Product strategies: Include product design, packaging, branding, support services, and product variations and features Pricing strategies: Include setting prices for final consumers, wholesalers, and retailers based on costs, demand, or competitors’ prices Promotion strategies: Advertising, sales promotion, public relations, direct marketing, personal selling Distribution (place) strategies: How, when, and where the product is available to targeted customers (4) Implement and Control (Module 11) Implementation is challenging and can be improved through
Internal marketing – implementation plans become the ‘product’, Value driven organizational design Organization design can be modified to effect better implementation and should be considered by management. Control means to measure how the achievement of objectives is progressing. Actions may be modified to facilitate achievement of objectives. Modifications to the marketing plan may be made if new information is forthcoming. Hunter Boot Situation Analysis When looking at Hunter Boots there are various threats, which fall into place.
The first and possibly most obvious is the threat of competition and new entrants into the market, which may disrupt Hunter Boots. One example of this would be the innovation of Wedge Wellies, which diversified the simple Wellington boot to become a new fashionable, wears as well as selling festival specific Wellington boots which will rival Hunter Boots (Wedge Wellies 2012). Also the other more obvious competitors such as Dubarry, Dunlop and Le Chameau. Hunter has done well in their strength on diversifying their products to help challenging rival companies such as the Wedge Wellie.
This is shown in the collaboration between Jimmy Choo and Hunter Boots to create a limited range of Wellington Boots (Dusil, M 2009) as well as the use of diversifying other products such as having phone pockets in the Wellington Boots. Hunter Boots also has such strengths as great celebrity endorsement ever since Kate moss wore them at Glastonbury 2005 they have been the much needed necessity for every festival goer as well as other such stars as Sarah Jessica Parker Wearing them in New York (White, B 2011).
Also Due to this great marketing and celebrity endorsement means that Hunter Boots are very strong particularly in their well-developed and existing brand name and reputation as well as a good customer base. Which works well as the threatening changes in trends and consumer preferences can cause problems but Hunter have done well to keep customers and keep up with trends and stay popular through the celebrity endorsement. Another threat towards Hunter Boots as a company would be the ever changing production costs.
Hunter moved production from Scotland to china, which has saved on certain operational costs, but the ever fluctuating prices of materials such as rubber can be costly to Hunter Boots and are unpredictable (Joseph, G 2006). Strengths – Diversification, Celebrity endorsement, Existing brand and customer base Threats – Competition, Production costs, Change in trends http://marketprocessrosser. wordpress. com/2013/02/21/hunter-boots-tows-matrix-strengths-and-threats/ Hunter Boot Target Market(s) and Positioning
Hunter has a large target market as it makes many different styles of wellington boots to fulfil the large range of consumer’s needs. Each individual group targeted appears to be very specific as the company has created boots for general consumers who would wear them for gardening or going for walks, consumers going to festivals, going out in the snow, playing field sports and they have also moved in to targeting consumers who will wear the boots as a fashion item.
Each target segment is being marketed in many different ways for example Hunter have images of celebrities wearing the wellies which makes them appear young and fashionable so this is how they target consumers wearing them for fashion as it creates the idea they are the next big thing, they do similar things to market to the other segments. All ranges are also available in children’s sizes so this is another targeted segment. (Hunter 2013) http://marketprocessrosser. wordpress.
com/2013/02/12/hunter-wellington-boots-target-market/ Hunter Boot Marketing objectives Hunter Boot Marketing Mix Strategies Hunter Boot’ marketing mix is comprised of product, price, place, and promotion strategies that company uses to pursue its marketing objectives in a chosen target market. Product Strategy The first market mix element is Product. A product can be defined as “a tangible good, service, idea or some combination of these that satisfy consumer or business customer needs through the exchange process” (Solomon et al. , 2012, p. 218).
Product decision normally base on brand name, functionality, styling, quality, safety, packaging, repairs and support, warranty, accessories and services. These product attributes can be manipulated depending on what the target market wants. Also, customers always look for new and improved things, which are why marketers should improve existing products, develop new ones, and discontinue old ones that are no longer needed or wanted by the customer. A product strategy is the ultimate vision of the product, as it states where the product will end up.
By setting a product strategy, Hunter Boot can determine the direction of its product efforts. The essential goal of a product strategy should be to ensure that a product is built that delivers some business value to a specific set of customers in order to meet certain financial goals based upon a defined corporate strategy. A product strategy describes the market opportunity, profiles the target customers, specifies pricing, identifies the financial goals, indicates the key priorities for development and enhancement, and provides a product roadmap and subsequent product releases.
Hunter Boot has a very strong core product – the welly. The brand became famous for its wellington boot, or welly for short, and has 100 years of history. The company takes particular pride in its Royal Warrants of Appointment as suppliers of waterproof footwear to HM The Queen and HRH The Duke of Edinburgh helping this brand become a fashion icon in its sector. Hunter Wellies has long won recognition for the quality of its product. However, it became quite old fashioned and dusty, associated with posh, older country folk.
Originally hunter wellies where produced in Scotland, but due to increases in costs such as wages they have moved production to china were wages and rent is lower so therefore their fixed costs will also we lower. This means that Hunter Wellies are able to make a higher profit margin on each unit sold which could explain the increase in turnover to ? 25. 7m and a 16pc increase in profit before tax to ? 4. 1m in 2009 (Telegraph). In the graph in the link below it shows a general increase in the price of rubber since 1990.
This may be a major reason to why Hunter has moved their production to China as they will be able to save costs elsewhere. However, in recent years the price of rubber has dropped which will save Hunter further costs in production and therefore giving them an even higher profit margin. http://www. indexmundi. com/commodities/? commodity=rubber&months=300¤cy=gbp References: Telegraph (2010) Hunter fills its boots with ? 4. 1m profit [online] Available from: http://www. telegraph. co. uk/finance/newsbysector/retailandconsumer/8004898/Hunter-fills-its-boots-with-4. 1m-profit. html Price Strategy
Pricing strategy is an important part of the marketing mix. Pricing is important to firms because it creates profits and influences customers to purchase or not. Prices may be monetary or nonmonetary, as when consumers or businesses exchange one product for another. Effective pricing objectives are designed to support corporate and marketing objectives and are flexible. Pricing objectives often focus on a desired level of profit growth or profit margin, on sales (to maximize sales or to increase market share), on competing effectively, on increasing customer satisfaction, or on communicating a certain image (Solomon et al.
, 2012, p. 298). The price planning process includes six steps: (1) develop the pricing objectives, (2) estimate demand, (3) determine costs, (4) evaluate the pricing environment, (5) choose a pricing strategy and (6) develop pricing tactics (Solomon et al. , 2012, p. 300 – 322). When setting a price marketer must consider a range of qualitative and quantitative factors, including demand, cost, and revenue and pricing environment (Solomon et al. , 2012, p. 302 – 315). Demand refers to customers’ desires for a product: How much of a product are they willing to buy as the price of the product goes up or down?
Price elasticity of demand is a measure of the sensitivity of customers to changes in price. The word elasticity indicates that changes in price usually cause demand to stretch or retract like a rubber band. Some customers are very sensitive to changes in price, and a change in price results in a substantial change in the quantity demanded. In such instances, we have a case of elastic demand. In other situations, we describe a change in price that has little or no effect on the quantity that consumers are willing to buy as inelastic demand (Solomon et al. , 2012, p. 304 – 307).
In modern business, there seldom is any one-and-only, now-and-forever, and best pricing strategy. There are a range of pricing strategies available to marketers including cost-based pricing strategies (such as, cost-plus pricing), demand-based pricing strategies (such as, yield management pricing), competition-based pricing strategies (such as, price leadership) as well as pricing strategies based on customers’ needs (Solomon et al. , 2012, p. 316 – 322). In addition to demands, costs and an understanding of the pricing environment marketers must understand other factors to plan an effective pricing strategy.
Some of these factors include psychological, legal and ethical issues. Promotion Strategy Promotion is often referred to as ‘communications’ that is used to inform consumers about new products, remind them of familiar products, persuade them to choose one alternative over another, and build strong customer relationships (Solomon et al. , 2012, p. 374) Place Strategy Developing products that satisfy customers is important, but it is not enough to guarantee successful marketing strategies.
Products must be available in adequate quantities in accessible locations at the times when customers desire them. Marketing channels fulfil this distribution function. Some marketers consider successful channel management as the key to competitive advantage. A large part of the marketer’s ability to deliver a value proposition rests on the ability to understand and develop effective distribution strategies. The supply chain includes all the activities necessary to turn raw materials into a good or service and put it into the hands of the consumer or business customer.
The supply chain encompasses components external to the firm, including all activities that are necessary to convert raw materials into a good or service and put it in the hands of the consumer or business customer. Supply chain management is the coordination of flows among the firms in a supply chain to maximize total profitability. These “flows” include not only the physical movement of goods but also the sharing of information about the goods—that is, supply chain partners must synchronize their activities with one another. Distribution channels are a subset of the supply chain.
A channel of distribution consists of, at a minimum, a producer—the individual or firm that manufactures or produces a good or service—and a customer. This is a direct channel. Channels often are indirect because they include one or more channel intermediaries — firms or individuals such as wholesalers, agents, brokers, and retailers who in some way help move the product to the consumer or business user. Distribution channels create efficiencies because they reduce the number of transactions necessary for goods to flow from many different manufacturers to large numbers of customers.
The major difference between a supply chain and a channel of distribution is the number of members and their functions. Logistics management is the process of actually moving goods through the supply chain. E-commerce creates radical changes in distribution strategies. In most cases, though, end users still do not obtain products directly from manufacturers. Rather, goods flow from manufacturers to intermediaries and then on to the final customers. In the future, channel intermediaries that physically handle the product may become obsolete.
Already companies are eliminating many traditional intermediaries because they find that they do not add enough value in the distribution channel—a process we call disintermediation. For marketers, disintermediation reduces costs. Some companies use the Internet to make coordination among members of a supply chain more effective in ways that end consumers never see. Retailers are the most visible channel members to customers. From bricks-and-mortar establishments to online transactions, retailing is changing to meet the needs of consumers. Implement and Control
In practice, marketers spend much of their time managing the various elements involved in implementing the marketing plan. During the implementation phase, marketers must have some means to determine to what degree they are actually meeting their stated marketing objectives. Often called control, this formal process of monitoring progress entails three steps: (1) measuring actual performance, (2) comparing this performance to the established marketing objectives or strategies, and (3) making adjustments to the objectives or strategies on the basis of this analysis.
Effective control requires appropriate marketing metrics, which are concrete measures of various aspects of marketing performance. Today’s CEOs are keen on quantifying just how an investment in marketing has an impact on the firm’s success, financially and otherwise. Think of this overall notion as return on marketing investment (ROMI). For an organization to use ROMI properly, it must: (a) identify the most appropriate and consistent measure to apply, (b) combine review of ROMI with other critical marketing metrics and (c) fully consider the potential long-term impact of the actions ROMI drives (that is, their sustainability).
One way implementation and control actually manifest itself within a marketing plan is through an action plan. Sometimes these are referred to as “marketing programs. ” The best way to use action plans is by including a separate action plan for each important element involved in implementing the marketing plan. Four elements of the action plan form the overall implementation and control portion of the marketing plan: Assign responsibility